Saturday , October 1 2022

There are many bankruptcies


[Nettavisen:] "There is a series of bankruptcies in the fashion industry and in other industries in the future," said Ola Mela, owner and owner of fashion chain Follestad.

Mælle has been in the Norwegian fashion industry for almost 40 years. First as one of the founders behind Bick Bock, Foucault Loko. Then with the voice of the company of Europe and the concepts match chain, Vic and the sons of Europe.

After a decade of rest, he returns to industry as owner of the Follestad network.

– These will die

He is waiting for a sharp spike of clothing stores and other stores in the coming years. Some networks have been bankrupt, such as PM, Simpler Life and Spent, while others have placed a large number of stores.

– Someone managed to find a niche and adjust the changes, but many very disappear. Those who do not have a clear profile or no online gambling will die, says Mlele.

However, he does not believe it is mainly due to competition from online stores.

"E-commerce is a challenge, while the biggest problem of the industry in recent years was not e-commerce, but the perfection of the stores.It was huge, says Mlele, who thinks there are just too many clothing stores in Norway now.

"It's not just fashion, it's about appliances, sports, shoes, interior, it's all about it.In Norway, we have twice as much trade space per resident as in other European countries," he says.

It is not clear

In addition to bankruptcies, the fashion funder believes large chains will cut down on the number of stores.

"I expect major players, national to reduce the number of stores sharply in the future.But in the long run, it's only good for us to stay, says Mlele, who is waiting for this ejaculation to go fast.

– It's like residential construction. If the market goes down, everyone pulls the brake at once. In two to three years, we have probably a lot of adaptation in the industry, he says.

He believes that the most vulnerable are those who have an unclear profile.

"In many cases, you can also go to Zara and get the right items at half price.The ones that do not change, they die, he says.

Jeans and a dress

He draws specialty stores on Yme, which specializes in sneakers as an example of stores that have managed to find a niche. The same is true of established fashion stores such as Retro or Bogart Trondheim. There are stores with a profile that can remind you of Follestad.

"Polstead's niche is quality products for adults and young people, we sell at low prices, but at a fair price," says Mlele.

Follestad is an attractive niche, ie men's fashion, which has been a segment with the strongest growth in recent years.

– Men's fashion is growing, but it's because it comes from zero. Says measurements and laughs.

"Men in my father's generation have gone in a hat, a coat, a dress and that's all.Now men have messed up more in clothes.Now we sell a lot of outer jackets from brands such as Uber, Parajumpers and Canada Goose.

He does not think growth will slow down with the first.

"There are still new products and new sections, the fashion industry must always have news, I have been with so long to see the same thing happen again, that's how it is in the fashion business," the same shit, new cover, "says Mill, smiling again.

From 250 stores without

When Mlele in the late 1970s began in the fashion industry, the street scene dominated by clothing stores, and their fashion for young people not found.

This changed when Mlele and four other partners started the Bik Bok Group with brands like Bick Bok, Poco Loco, Poco Lino and Poco Classico.

At the same time, came new competitors, mainly Swedish and Danish at low-priced networks such as Hans Maurits and Vera admits. These chains are now in most markets, while old dealers, as previously controlled, have disappeared.

"When I started in the clothing industry, we had Samtex, Qualitex, Harkon, Contex, Texpartner and the Teksil chain, which was bored with 100-200 stores in each, now almost all of them are gone, except for Takson, Mala says.

She even lost Meisel to the Beek Book Group in the late 1980s. Then he began the voice of Europe and the concepts of the chain, Vic and sons from Europe with clothing brands like Anne Paul and Henry C. Weiss.

Come in with the coolest

He sold the chains to Jules Niles Sundy, the entrepreneur, "Color Lane," in 2003, but returned to a comeback in the fashion industry in 2014, when he took over 50% of Polstead.

This happened after Bengholstad and his son William had taken care of the investor in connection with the change of generations.

When I was going to show the collection to Bennett, he knew exactly what he needed, and was not interested in buying anything else, I realized that there was full control, and then I went in, Mala says, and laughs again.

Follestad now has 11 shops in Greater Oslo. They have no plans to expand to other parts of Norway, but look at the possibility of entering Sweden.

"In Stockholm there is the store Ströms, which is Follestad in Stockholm, they translate 100 million kronor to one store, so obviously it's tempting, but it's a big step for us to get into Sweden.We have to find the right reason," says Mlele.

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