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What are the points to be kept in mind while a company is present in various countries with so much variety in the population and its demand?
It is a cliche, but, to make a long story short, “think globally and act locally!” Because of the strong local character of our business and in line with our company philosophy, social responsibility is an integral part of our duties. As mentioned above we are socially active on many fronts. Beyond that with its strategy “think globally and act locally!”, our company combines its efforts to satisfy customer needs in a particular region and local market.
What is the present situation of the denim market?
We have a clear feeling that in the fashion sense the demand for denim is revitalized. Economically speaking it is very positive to note that the panic period is over, and that is very important because it allows for better planning. However, times will remain difficult, unemployment and general recession in Europe will continue to provide an environment where the vertical chains gain market share by selling much product for not much money...
What are the main markets VICUNHA is working best with right now?
We work best with the large-volume vertical operators all across Europe. Why? Because of our very large scale we have excellent unit costs, and at the same time we have invested heavily into finishing. So we are selling about 17 Million meters per month in a great variety of articles and finishes. We have a great advantage of programming our production autonomously. So we do not have to wait for orders to produce.
What trade shows are you presently exhibiting? What are most useful ones for your business?
We have a global policy of using self-owned show-rooms to produce the best direct link to our customers. One of them is in our European Head office in Swiss Gland near Geneva. We are also based all over the world with show-rooms. Over and above that we step up our customer visits.
Distribution, constant travelling and permanent contact with customers have become much more important and we focus on it. We will not participate in European trade shows in 2013. Instead of this Business is now increasingly shifting to Asia. However, we have been preparing for this already for a long time, the very best structures are in place and this is also where we operate our most important strategy: 3 days service! From our hub in Colombo we can serve direct many European markets producing locally. Because the company is working onsite with European brands’ manufacturing facilities. So the expansion to the Asian market flows automatically back to European business. This international mobility is clearly one of the South American denim figurehead’s biggest strengths.
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