Catalan clothing brand Desigual ends 2011 with a €560 million turnover

Barcelona (ACN).- Desigual, the Barcelona-based clothing multinational, closed 2011 with a sales turnover of €560 million, 27% more than in 2010. This year, the Catalan brand will invest €100 million by opening 60 new shops, among them, the first in China. 2012 is also the year in which the Catalan clothing multinational will launch the first household linen collection and a special line that is based on the famous Canadian circus, Cirque du Soleil. Desigual is also planning to begin the construction of a new logistics centre in Viladecans in Greater Barcelona at the end of this year. The new logistics centre will allow the Catalan company to multiply its current distribution capacity by five, said the brand’s CEO, Manel Adell.

Desigual had a turnover of €560 million in 2011 that came as a result of the sale of its fashion products for adults, children and accessories. The brand also owns a handbag collection, which has grown the most, and a line of women’s shoes since 2011.

The Spanish market represents 31% of Desigual’s turnover

The company obtained in 2011 €120 million more than in 2010, when it achieved €440 million. In 2006, Desigual registered a turnover of €50 million. Despite it being a “tough year”, the company is pleased with “the fantastic growth” in profits. According to Adell, the Spanish market represents 31% of turnover -€173 million- and, together with Italy, France, Germany and the markets from central Europe, represents 70% of Desigual’s sales.

Throughout 2012, the company will seek to grow even further and increase sales by 20%. This growth that might come from foreign markets and the opening of new stores, said Adell. The low consumption rate in Spain will not helping the business. Desigual is planning to invest €100 million in 2012.

60 new shop openings in 2012

Desigual has 252 shops around the world and more than 1,700 units in shopping centres. Among the company’s expansion plans for 2012 the brand includes the opening of 60 new shops, which means “the opening of a new shop almost every week”. The Chinese store in Shanghai will be one of the most important openings. Adell explained that the 120 square metre establishment is part of the company’s strategy of “learning by walking” and of “taking small steps in order to avoid a fall”.

Desigual currently has two units in Japan and four shops in Singapore, the city where the brand opened first in the Asian continent five years ago. In order to consolidate the growth in Asia, the Catalan company also plans to open a regional office in Hong Kong next summer.

Desigual’s new logistic centre in Catalonia

Desigual currently has a logistics centre in Gavà –south of Barcelona- from which the company concentrates the brand’s distribution around the European continent. The company, however, plans on starting the construction of a new platform at the end of this year in Viladecans –a town next to Gavà-.

The new distribution centre will be located on a 90,000 square metre plot of land and will be constructed in three phases that will allow the company to multiply by five its current distribution capacity, which represents 100,000 daily products or pieces of clothing and 3 more million in stock. in 2011, Desigual distributed 22 million products around the world.

The company expects the new logistics centre to become operational at the end of 2014. By this year, Gavà’s centre will be too small but, according to Adell, it will not close as the company plans to allocate a specific area of business there.

At the same time, Desigual wants to finish the construction work of its new headquarters by 2012. It will be a 20,000 square metre building located along the Barcelona coast, next to the W Hotel in the Barceloneta neighbourhood. These will be “the coolest” facilities in Europe, explained Adell, and they will adapt the inside design to new ways of working, with a clear space of 4,000 square metres where the company’s design centre will be located. This project means the creation of between 800 and 1,000 workplaces. In 2011, Desigual had 3,500 workers around the world, 1,000 more when compared to 2010.

Household linen collection as this year’s novelty

One of the surprises of 2012 is the launch of a new collection of Desigual products. If last year, it was shoes and boots for women, this year it will be a ‘home’ collection. The brand decided to join the segment of household products with Desigual’s characteristic line “of colours and energy”. For the time being, the company focuses on “bed, bath & table” products. Adell added that the company is looking at creating its own fragrance in 2013.

Cirque du Soleil inside your wardrobe

On January 20^th , the multinational clothing brand based in Barcelona and Cirque du Soleil presented the first joint fashion and accessories collection for men, women and children. In order to create the 60 models of this new line, designers worked together with the circus’ costumes creators for 18 months. The colours, the textures and the fantasy of Cirque du Soleil are the common theme for all the designs.

The agreement includes the launch of two annual collections for five extendable years. Over this period, the Catalonia-based company foresees €50 million benefits in this product line, whereas the circus, with its headquarters in Montreal, wants to establish new distribution channels for its brand.