Another detail of retail

The consummate art of smart shopping has undergone a redefinition with the relatively new trend of outlet shopping. In the 21st century, the concept of luxury is not necessarily linked to the ‘ivory tower' goods unattainable for most. On the contrary, luxury is now redefined by the prospect of a good bargain within reach.

This is best exemplified by oneof the most successful ventures in modern retailing - the Chic Outlet Shopping Villages. One of Europe's best-kept retail secrets, it has come a long way over the last 15 years to become a highly coveted form of shopping for women.

The premise is simple. Create a retail environment to sell designer clothes at very affordable prices. And so were born the Chic Outlet Shopping Villages. These ‘villages' are shopping hubs set up around some of the most vibrant shopping destinations in Europe, such as London, Paris, Madrid, Milan and Frankfurt. Between them they host over 875 iconic luxury brands and boutiques, complementing some of the most famous shopping boulevards in the world.

Elegantly positioned, each village has been designed to reflect the charm and sophisticated ambience of the region in which it lies, with restaurants and cafés offering local flavours and gourmet cuisine, thus making itthe ultimate shopping experience.

Imagine buying a pair of Jimmy Choos, an immaculate Prada outfit and an elegant Louis Vuitton bag to go withit, all at unimaginably reasonable prices, in what is a day's outing at a destination that offers you comfort, entertainment, food and transport (yes, in many cases special transport takes you to these ‘villages').

Democratisation of luxury

Desiree Bollier, CEO of Value Retail, the group behind the Chic Outlet Shopping Villages, was recently in Dubai to meet her most valued customers - the women from UAE and GCC countries who are her premium clients, often on vacation in Europe during the summer.

She elaborated on the clear paradigm shift that has taken place in our perception of luxury shopping.

"The concept of luxury has evolved quite dramatically over the years. Globalisation, fast-paced living and sophisticated technology have redefined luxury, making it more accessible, compressed and practical. All that is solid, good and sustainable has now became luxury. There has been a democratisation of luxury and today it is something that is easier to have. In tandem, there has been a renaissance of luxury. Brands are going back to their roots, their heritage. They are redefining luxury one more time by segmenting it even further. They are reintroducing individualism by limited edition production and customisation, even whilst offering mass products. Chic Outlets meet both these needs by providing a unique shopping experience with a chain of retail stores under one roof offering heavy discounts."

Traditionally, surfeit goods or outlet shops have been in existence fora long time and women have always possessed a keen eye for knock-down prices on value brands. However, what makes Chic Outlet Shopping Villages different, says Bollier, is that they represented a pioneering concept in Europe when they were conceived15 years ago.

"In Europe the word ‘outlet' was not in existence when we thought of it. Surplus stocks were disposed of with warehouse sales. But we decided to be innovative in our approach. We challenged the prevailing concept and created a paradigm. Why hold a sale in your backyard or why accept a tertiary shopping experience? Everyone, regardless of status, loves a bargain, but no one wants to feel cheap while looking for one. So we created an innovative shopping experience. We know that brands spend millions in marketing, positioning and protecting their brand equity. So we offered them ... an environment, where they could have everything and also sell their last season's products."

However, it was not just a price reduction or clear discounts that attracted customers to the Chic Outlet Villages to begin with, says Bollier. It was the profound satisfaction of getting good value for money in a competitive and relaxed environment that made this experience stand out for customers. She says: "We are not only the landlord retailers, we work to ensure that each one of our boutiques is properly stocked and provides the right environment and the right price to our shoppers. We work hands-on with our retailers in running our villages. We have a total of about 400 employees at different levels in our nine villages, with each village having about 35 employees. A brand that rents space from us has its own staff andwe work very closely with them to ensure our customers have a superb shopping experience."

The business model of these villages succeeded owing to some outstanding qualities it possessed, one of the important ones being that these villages helped bridge the gulf between retailers and consumers in a very defined manner, blending the clear advantages with some of the disadvantages in a way that evolved into a ‘win-win'.

One of the unique selling points (USP), explains Bollier, "is that we have over 875 outlets of extremely iconic brands where you can shop all the year round in the nine villages spread across Europe. The other USP is that under one roof you will find the world-renowned designers as well as niche boutiques for regional and lesser-known designers. We also make sure we are selling absolutely the best and the most exclusive lines. If it is Burberry for instance, we make sure that every one of our stores carries not just the basic collections, but the special lines as well."

She elaborates on how the arrangements work as an advantage for both ends of the retail spectrum. "The brands run their own shops at the villages. However, since we have a percentage profit in their sales, it is very important to us that they do well. We closely monitor their success. Let's say Brand X has a full-price boutique elsewhere. If it has to hold an end-of-season sale, it can probably do so only for a week as it has to make way for fresh stock. But an outlet in our Village allows these brands to move everything very quickly here and the customer gets the last season's fashions at 33-60 per cent markdown. It helps brands to rotate their inventory faster.

"When we think of our business model, we do not think of it as an outlet proposition. I am thinking of how to be the best department store for our customer and match a shopping experience as offered by Harrods, Saks Fifth Avenue or Bloomingdales. Our judicious brand mix makes it a fun shopping destination and we have realised that our customer doesn't shy away from discovering a new brand."

Bollier defines the profile of a Chic Outlet shopper by saying, "We know our typical shopper. She is someone with global awareness of international trends, reasonably fashion literate, can be from any country around the world, from any culture, she is a smart shopper who loves quality and ultimately price is not the only issue for her. She wants to ensure that she gets good value for her money."

Another unique advantage Chic Outlet concept has is the ‘surprise in the package' factor. In every Village you will find a local designer exhibiting fashions, a plus-factor that helps women enjoy a certain degree of exclusivity in their labels. All the outlets encourage prominent local labels and designers. For instance, in Italy they are working closely to promote the works of a talented Italian designer who was chosen by Vogue as one of the best talents. "We have in each Village about 40 per cent common international brands, apart from the niche regional or local brands. For instance, some brands are very French or English and preferred by a specific customer profile. We make sure to stock those in that region. This adds a cultural dimension to the retail experience," says Bollier.

Effective sales strategies

Besides the usual retailers offering popular brands of items all round the year, the Outlet Villages also offer ‘pop-up' brands. For instance, when a popular shoe brand had stock only for a few months and not for a whole year, an Outlet Village allowed it to have a ‘pop-up sale' which is a sort of limited edition sale. Says Bollier: "It was extremely successful. Customers look out for pop-up brands. We are extremely flexible with our clients and the way we work out with them. There are some who have a small inventory but a large following."

For the convenience of shoppers, Outlet Villages have added new features such as hands-free shopping where someone takes care of your purchases and reaches them to your hotel room or vehicle.

Free valet parking is another feature that has been added to facilitatethe pleasurable buying experience.

Understanding customer needs

Bollier wants to woo her Middle East customers who patronise most of the Villages and wants to invite them this summer to a satisfying ‘shopacation'. "While the highest numbers of visitors come from China, Russian customers are a close second. Now statistics indicate that there has been a surge of shoppers from the Middle East, women who are looking to combine a family holiday with a great shopping experience. We have added other dimensions such as art exhibitions and entertainment. Our entire calendaris planned around the holiday season. In Spain for instance, our village is open during the summer vacations until 10pm. Jade Jagger will be presenting an evening at the La Roca Village. In La Vallée in Paris, France, we are celebrating the 10th anniversary of its opening and have planned many events around it."

Ultimately though, while big brands at lower prices is what brings the footfall, what makes women enjoy the experience to the hilt are the other factors that define the niche pull of this concept. The all-under-one-roof convenience, the ambience, the relaxed environment, entertainment, fine cuisine and exclusivity of local fashion labels. "Price is not the only pull. It is the cherry on the cake. The cake is made of the other factors unique to our concept," Bollier says. As for plans for expansion of the concept, she explains, "We are not working to be the biggest; our aim is to be the best."

List of Chic Outlet Shopping Villages

1.  La Vallée, Paris, France
2. Bicester Village, London, UK
3. Kildare Village, Dublin, Ireland
4. Las Rozas Village, Madrid, Spain
5. La Roca Village, Barcelona
6. Fidenza Village, Milan, Italy
7. Maasmechelen Village Brussels, Antwerpand Cologne
8. Wertheim Village Frankfurt, Germany
9. Ingolstadt Village, Munich, Germany