Azali Trading, the company that holds the franchise for Zara, Pull and Bear and the Sunglass Hut brands, plans to develop at least 15 locations by the end of 2007.
Azali Trading registered turnover worth 11 million euros last year, ten times bigger than the figure reported for 2004.
"The growth in turnover posted in 2005 compared with 2004 was triggered by the fact that our stores were opened in October 2004, which makes 2004 an incomplete year for comparison, unlike 2005," says Marian Radu, the company''s general manager.
Azali Trading posted income worth 1.1 million euros during the same period.
"Romanians are keen on fashion, willing and even eager to follow the latest trends on the market. This makes the brands launched on the market highly successful," explains Radu.
For the time being, the firm owns a store for each brand of its franchise portfolio. Radu says that the company will not expand its store network by the end of this year.
On the domestic market, Zara competes with brands such as Mango, Promod, Marks&Spancer and Castro. All these stores are located in mall-type locations or in commercial centres.
BS Productie, responsible for bringing Mango, Promod and Castro on the market, derived turnover put at around 8 million euros last year.
Zara and Pull Bear sell clothes and accessories, focusing on a customer base that has an average or above-the-average income. Pull and Bear is rivalled on the market by the Kenvelo firm
Domestic competitors of Sunglass Hut are companies such as Sover and Optinova. Sunglass Hut sells luxury brand sunglasses, including Dolce&Gabbana, Ray-Ban, Donna Karan, Versace and Prada.
Several international fashion retail chains, including Morgan de Toi and Kenvelo, have entered the Romanian market over recent years. At the same time, there are stores importing luxury brands, such as Max Mara, Escada, Ermenegildo Zegna and Hugo Boss. Amid multinationals'' presence on the domestic market, Romanian customers are becoming increasingly aware of exclusivist details, say players in this field.
"We have an expansion policy related to the Romanian market. By late 2007, we are going to open new stores in Cluj and we are considering real estate market opportunities, particularly malls," says Marian Radu.
He estimates that by the end of 2007, the company will have a minimum of around 15-20 stores on the domestic market, 15 of which will only be in Cluj-Napoca. "We are certainly interested in the markets of Bucharest, Timisoara and Constanta, but our stores can be opened only in mall-type spaces. We are waiting to see what other locations will be opened on the market," Radu also said.
andreea.groenendijk@zf.ro
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