You are on page 1of 30

Collection

CCMP
M1982(GB)
Gentle
Factory&Happychic
Group: What growth
drivers for men's
ready-to-Wear Eco-
Design Market?*

Auteurs :
Sabine RUAUD, Ronald KAMIN, Véronique
BOULOCHER-PASSET, Peter DALY

Etablissements créateurs :
EDHEC BUSINESS SCHOOL, Brighton
Business School

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE

- L'établissement acquéreur est autorisé à diffuser le produit pédagogique à l'ensemble de son corps professoral dans le cadre de ses enseignements.
L'établissement acquéreur s'engage à :

- ne pas communiquer ou céder tout ou partie du produit à un tiers n'enseignant pas dans l'établissement acquéreur
- conserver le(s) logo(s) ou marque(s) cité(e)(s) dans le produit

L'ensemble des droits liés à la licence d'exploitation sont détaillés dans les Conditions Générales de Ventes.
E
IA
G-
EA
IS
E
NN
CASE STUDY
Gentle Factory & Happychic Group:
What growth drivers for men’s ready-to-Wear Eco-Design Market?

IE
T ET
IN
SA
ET
NN

Submitted to the North American Case Research Association annual meeting, Las Vegas, Nevada, October 2016.

Submitted for the 2017 EFMD Case Writing Competition in the category “Corporate Social Responsibility”.
MO
AN

© CCMP 2017 – M1982(GB)


JE

Auteur(s) : Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER PASSET, Peter DALY

Etablissement(s) créateur(s) : EDHEC Business School, Brighton Business School


E
S IT
ER
IV
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
G-
Gentle Factory & Happychic Group:

EA
What growth drivers for men’s ready-to-Wear Eco-Design Market?

IS
This case study was written in close collaboration with the company, La Gentle Factory. The
authors would particularly like to thank, Christèle Merter, Director of La Gentle Factory, for

E
her availability as well as all the information and documents provided that enabled the
writing of this case study.

NN
IE
“To consume better products is a major societal challenge as well as an important differentiator. Also,

ET
I wanted to create a new concept that would inspire our customers and lead them to more sustainable
and responsible practices. So I designed fashion for men who like to seduce as well as be
responsible”. Christèle Merter remembered how she persuaded fashion maker Happychic to launch
eco-friendly fashion with a new brand, La Gentle Factory in April 2014. Her eulogistic argument

T
convinced the company to entrust her with the responsibility for brand development.
IN
At the beginning of 2016, Merter had been informed by the Executive Board of the Happychic Group
of the annual target they had set for her: to increase sales by 65% compared to 2015 to reach €5
SA
million at the end of the year; at the same time, the objective was set at €30 million by 2020. For that
reason, she had a lot of questions: “Our concept is innovative but we must improve our results. What is
the fastest way to get there? Do we need to strengthen our penetration strategy, expand our range, or
can we grow through new distribution channels that will create value for both La Gentle Factory and
ET

Happychic?”

A preliminary study, conducted at the time of the launch of the brand, had showed that, whatever the
NN

distribution channel, La Gentle Factory had to create a strong specific identity proposition.
MO
AN
JE
E
IT

2
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
La Gentle Factory, Made with Heart… for the Earth

G-
The Concept: To Seduce Naturally

EA
An engineer and graduate of the l’Ecole Nationale Supérieure des Arts et Industries Textiles (ENSAIT
- Engineering School in Arts and Textile) in Roubaix (France), Merter ran for ten years (2004-2014)

IS
the quality service of Happychic, an international multi-channel French fashion company unifying
three other brands, Jules, Brice and Bizzbee 1, and the leader in men’s ready-to-wear in France.

E
When at the end of 2009, Happychic placed corporate and social and responsibility (CSR) at the heart
of its priorities, and decided to reduce its ecological footprint by half, Merter began measuring the

NN
Group's carbon footprint on as wide a scale as possible: On the one hand, she considered
manufacturing, transport, electricity, heating and waste; on the other hand, she conducted an analysis
of life cycles on the main types of clothing marketed. The result was that 60% of greenhouse gas

IE
emissions were the result of products placed on the market, the balance resulting from the use and end-
of-life of these products. With this in mind, she organised a recycling channel, Newlife, which
collected and upgraded used textiles. The first full-scale test, conducted by Happychic, enabled the

ET
recycling of nearly 4 tons of products brought by customers (see Exhibit 1: Behind the Scenes of the
Recycling Process).

T
In February 2012, 500 pullovers made from recycled materials were sold in Jules shops. The
experiment was a technical success (mastery of the recycled cloth), but not a sustainable success, in
IN
that only two of the three pillars were satisfied. From an economic point of view, only 10 out of 500
pullovers were sold, 50% of which were bought by staff. What was the reason for this? Even if the
SA
pullovers met all the quality criteria, they were not aesthetic enough. Inside the firm, the pullover was
nicknamed the ‘mop’. However, if a customer were to buy a fashion item, it ought to be dear to their
heart. “The seduction of the product is an unavoidable element: it must not be forgotten that the
customer buys, first and foremost, because the product pleases them and makes them look good”
ET

recalled Merter.
In October of the same year, Brice, one of the three brands of the Happychic groups, also launched a
jacket made of 43% cotton and recycled bottle caps. The sales were successful. However, the recycled
NN

origin of the garment was masked. Given this success, Happychic gave Merter a chance to reflect on
how to reconcile economic development, ecological balance and ethical attitudes with eco-
manufacturing, eco-design and eco-distribution.
MO

In 2013, Merter presented the first Happychic collection produced according to an eco-friendly
charter. In April 2014, a fashion offer under a new brand name, La Gentle Factory, was launched. The
objective was threefold:
1. Offer modern and desirable clothing in a capsule 2 collection format;
AN

2. Develop the products according to a civic approach and focus on


“seduction/responsible/sustainable” clothes (i.e., collections from recycling, biological materials, local
production and/or solidarity work);
JE

1
Author’s note: Jules, Brice and Bizzbee represent today more than 700 shops and 3,200 employees in France and abroad.
The Haphychic group is owned by the Mulliez Family Association (Association Familiale Mulliez - AFM).
2
Author’s note: The concept of “capsule collection” refers to a line of clothing or products in the world of clothing and
E

fashion usually composed of a limited number of pieces offered for a short period of time from a few days to a few weeks
and placed in a range outside the permanent or seasonal collection. It may also involve the collaboration with a stylist or a
IT

large retailer and, by extension, occasional collaboration with a “big name” to design a collection with a few pieces.

3
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
3. Innovate with a free collaborative platform of services, Le Gentle Dressing, which would offer a

G-
second life to old clothes by providing online services such as bartering, reselling or lending clothes.

EA
Merter recounted how she presented the brand’s mission: “Our slogan: “to be beautiful is good, and
to do good, is beautiful!” Our unique approach is to enable the active man to act responsibly via his
wardrobe, either by purchasing eco-friendly products or by offering a second life to his old clothes”.

IS
Because the garment that polluted the most was the one that slept at the bottom of the closet and ended
up in a landfill”... (Table A).

E
Table A - The results for 2014/15 excl. taxes and forecast for 2016 E*

NN
Key figures 2014 2015 2016 E*
Pieces sold 50 000 150 000 250 000
Turnover (in Euros) 1 000 000 3 000 000 5 000 000

IE
Clothes collected 17 tonnes 15 tonnes
* Estimate

T ET
IN
SA
ET
NN
MO
AN
JE
E
IT

4
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
The Sales Mix

G-
The Collections

EA
La Gentle Factory made jackets, pullovers, shirts, T-shirts, trousers, Bermuda shorts and accessories
(tote bags, etc.). Thanks to ‘innovative sourcing’, from the creation of thread to the finished product,

IS
La Gentle Factory demanded a civic and responsible approach at each stage of its life cycle (see
Exhibit 2: Behind the Scenes of La Gentle Factory Manufacturing). “To ensure that our products are
accountable, we created The Manifesto, a communication tool that demonstrates our commitment to

E
each article” said Merter (see Exhibit 3: Manifesto for the Creation of the Collection). In fact, each
article had one or more labels in-store, namely:

NN
IE
ET
In 2015, according to an ad-hoc study, the most used commitment and one that responded to a strong

T
consumer expectation was ‘Made in France’ : “This desire to go for French products, if partly
explained by patriotism, is also guided by the desire to make a quality purchase”.
IN
La Gentle Factory renewed its collections four times a season with timeless cuts (round neck T-shirts,
SA
Chino sweatshirts, and work jackets), a mix of timeless colours (navy blue, gray, off-white) and trendy
colours (yellow, burgundy).

The consumer targeted by La Gentle Factory was upper middle class adult male, aged 25 to 45, for
ET

whom fashion was a means of expression. Respectful of nature without being an ecological militant or
a cool surfer or outdoor type, the target customer assumed product consumption that lead to his overall
well-being. A responsible (I feel beautiful and useful) advocate (we are all part of the solution),
NN

optimistic (I believe in the future), modern (I am living in my time), simple (I act without
complicating my existence) and discreet (I act without making noise) - those were his values (see
Exhibit 4: The Brand Platform).
MO

The Distribution Mix

La Gentle Factory had an economic model that was different from the other brands of the Happychic
group. The articles were distributed either internally via the internal Happychic network, or externally
AN

via co-branding:

- The Internal Happychic Network


JE

La Gentle Factory articles were available in Jules, Brice and Bizzbee stores (in total 700 stores) and
online on the websites of each of the brands. La Gentle Factory did not own stores nor a website. In
other words, the main clients of La Gentle Factory were the brands of the Happychic group, which
E

‘invited’ the brand to occupy space in their store depending on a particular time of the year.
IT

5
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
This was why La Gentle Factory created its eco-friendly capsule collections in close collaboration

G-
with the different ready-to-wear brands of the group, each collection being unique to each brand based
on different themes each season, with the goal of telling a unique story in the stores (see Exhibit 5:

EA
Examples of La Gentle Factory Capsule Collections).

In 2015, La Gentle Factory referenced the following articles in the different stores of the group:
- A permanent collection3 in the 60 odd shops of the brand Jules in France and in Belgium i.e., two

IS
permanent spaces with 120cm of shelf space;
- Three temporary micro-collections 4 in the Jules stores in France;

E
- Two temporary collections in the Bizzbee stores (with the exception of the small stores, who did not
have sufficient space to accommodate the references) 5,

NN
- Two temporary collections in the large stores of the new Brice concept.

With the exception of Jules, which was the ‘biggest customer’ of La Gentle Factory, representing 64%
of its sales in 2015, the brand’s visibility in the other stores was limited: 10% of sales were made with

IE
Bizzbee; and 6% with Brice. La Gentle Factory sales were mainly for special occasions and they made
25% of their sales at Christmas time and 20% for Father’s Day. Furthermore, it did not always have a

ET
specific space or an environment that really showed off the offer.

In 2015, the Happychic group opened its first multi-store in Bailleul, France, bringing the three brands

T
of the group (Jules, Brice and Bizzbee) under one roof. The presence of La Gentle Factory within
these brands was evolving in terms of both the number of stores and the number of referenced
IN
products. In 2016, La Gentle Factory was planning a permanent collection in 80 Jules stores, articles
in all Jules stores in France at certain key moments throughout the year (Christmas, Valentine’s Day,
SA
and Father’s Day), two temporary collections in all Bizzbee stores and two temporary collections at
Brice in the 115 ‘smart’ shops 6.

Christèle Merter outlined the expected objectives: “By 2016, Brice should be in second position
ET

behind Jules. La Gentle Factory is expected to represent 3% of market share in value of each
Happychic brand by 2025; with that in mind, we can see that today, La Gentle Factory has 2% market
share at Jules, 1.5% at Brice and 1% at BizzBee when its collection is present in-store”.
NN

- The External Collaborations

In 2015, La Gentle Factory started collaboration with Leax, an eco-friendly ready-to-wear start-up
MO

based in Lyon (France). Three criteria dictated this choice: The brand was not a competitor of the
Happychic brands; it had the same DNA i.e., the same fashion and responsible mission as La Gentle
Factory, and it had its own distribution network.

Leax, since its creation, designed its products with respect for the environment and manufactured them
AN

entirely in France. La Gentle Factory and Leax had therefore combined their experience, know-how
and ‘love of nature’ to create a new sweatshirt. ‘The Mountain is Beautiful’ was made from recycled
fibers and printed without toxic substances. This type of collaboration was an important objective for
JE

3
Author’s note: A permanent collection contains 15 to 20 references.
4
Author’s note: A temporary collection contains approx. 8 references.
E

5
Author’s note: The Bizzbee target is younger that that sought by La Gentle Factory. By offering some references at
Bizzbee, La Gentle Factory is addressing fathers with teenagers.
IT

6
Author’s note: This is a new in-store concept with a sleek and chic architecture in materials such as wood and in white
colours.
6
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
La Gentle Factory: “It enables us to test another type of clientele and slightly increase our reputation.

G-
It also allows us to enter the closed world of start-ups, and open ourselves up to other opportunities
for destruction and collaboration” explained Merter.

EA
The Price Mix

The pricing policy of La Gentle Factory reflected the presence of the brand in different distribution

IS
networks.

In the Happychic shops (Jules, Brice and Bizzbee), the main objective was to make the sustainable

E
collection accessible to as many people as possible. Also La Gentle Factory adjusted its price with
those of the supermarkets, and reduced its margins given its high cost price. Its margin exit rate 7 was

NN
weak: 41% compared to 58% on average in the supermarkets.

For example:
- T-shirts at €20 including VAT (the most popular item);

IE
- Pullovers at €40 including VAT;
- Trousers and Jeans at €45 including VAT.

ET
Nevertheless, this ‘entry level’ pricing policy was challenged by other retailers that refused to
distribute La Gentle Factory products. “They believe that the Happychic group is competing with them

T
unfairly by offering affordable prices compared to start-ups that cannot count on the volume effect”
explained Merter. IN
As regards co-branding partnerships, such as with their start-up partner Leax, La Gentle Factory
aligned its prices but on the higher end of the scale. With this in mind, La Gentle Factory wanted to
SA
change its pricing policy in the years to come. “In order to develop our profitability, we plan to create
a clean collection with higher prices (approx. 25% - 50% more expensive). This increase in price will
be justified by enhancing the value of studied products, especially by labelling, diversifying the
distribution, choosing higher quality materials and developing accessories in the collections” said
ET

Merter.

The Customer Service


NN

La Gentle Factory provided also a ‘service’, thanks to the setting up of their collaborative platform for
men’s fashion in March-April 2015. “I love fashion and change. Suddenly my closets overflow with
clothes, which I promise to use one day. Have you ever heard that somewhere? What if it was time to
MO

become a Gentle Man and to exchange a pullover so that it finds a new life, to rent out what you
rarely wear, to sell what does not suit you any more - A Gentle Man? It is a man who thinks about
how he looks and who also thinks about the planet!” That was the sense of Gentle Dressing from La
Gentle Factory, which granted clients the possibility to renew their look by exchanging, selling or
AN

renting their clothes, thus preserving resources and limiting their impact on the environment.

This initiative was in line with the company’s sales mix and the brand philosophy (see Exhibit 6:
Men’s Fashion Collaborative Platform).
JE
E
IT

7
Author’s note: The margin exit rate is a term that corresponds to the mark-up on price.
7
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
The Role of Communication

G-
Via the Jules brand, the Happychic Group organised clothes collecting operations for La Gentle

EA
Factory. The clothes were deposited in bags available in the store. In return, the customer received a
reduction coupon to be applied to a product from La Gentle Factory collection in one of the Jules
stores. ‘Le Relais’ 8 was responsible for sorting and recycling the garments collected. Thus, out of 10

IS
garments recovered by ‘Le Relais’, 6 were reused in their current state, 3 were recycled and the rest
produced energy when incinerated.

E
In 2015, La Gentle Factory had 14 spin-offs in the press and on blogs (Table B).

NN
Table B - La Gentle Factory Community

Key Figures 2014 2015 2016 E*

IE
Instagram 0 5 200 12 000
Facebook 450 1 600 6 000

ET
Le Gentle Dressing 0 350 700
* Estimate

This same year for the first time La Gentle Factory also participated in the Made in France (MIF) fair.

T
The MIF fair proposed a showcase that allowed French industry, innovation and creativity to meet
consumers. “La Gentle Factory also wants to increase its reputation on social networks, develop a
IN
community dimension for its brand, and create traffic to its points of contact, stores and website”
commented Merter.
SA
ET
NN
MO
AN
JE
E

8
Author’s note: Le ‘Relais’ is a consortium of socio-economic companies that offers a door-to door or container collection
IT

service, sorting and recycling of clothing, shoes and textiles. Since 1984, it has been working to integrate people in situations
of exclusion by creating sustainable employment.
8
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
The Men’s Ready-to-Wear Market

G-
Encouraged by the results obtained by the launch of its first two collections, Merter intended to

EA
consolidate the company within its strategic and competitive parameter that focused on the men’s
ready-to-wear market. La Gentle Factory mainly sold its products in Jules stores (representing 84% of
sales value), Brice and Bizzbee stores. The brand took up 20% of the space at Jules on a permanent
basis 9.

IS
The Clothing Market

E
In 2015, the retail sales of clothing (children’s, women’s and men’s clothing) amounted to €33 billion,

NN
with overall demand on the whole being stable over the past five years. However, sector experts
expected the average annual growth rate of the market to fall by between 1% - 1.5% over the next five
years (Table C) 10.

IE
Table C - Clothing Sales in France
(in billions of Euros)

ET
Market 2010 (%) 2015 (%) 2016E 2018E 2020E
Clothing 33.90 32.98 32.64 32.13 31.57

T
Men 10.19 30.0 10.07 31.0 9.96 9.75 9.57
Women 17.11 50.0 16.31 49.0
IN 16.08 15.68 15.30
Author’s note: Sales of children’s category (< 15 years) are stable since 2010. They reached €6.6 billion in 2015 (Weighing:
20%). Forecasts are €6.6 billion in 2016 and €6.7 billion up to 2020.
SA

The Men’s Ready-to-Wear Category

The men’s clothing category or men’s ready-to-wear referred to all clothing manufactured in series
ET

and subjected to seasonal presentations. Men’s clothing retailing consisted of four major sub-
categories: Nightwear, outerwear, swimwear and underwear.
NN

Each sub-category in the market perimeter for the retail sale of men’s clothing articles constituted a
specific market and responded to the demands of a certain type of customer (customer/product) or
positioning (market/offer). For example, the sub-category Outerwear included jeans, jackets and coats,
pullovers, shirts, pants, suits, tops and T-shirts and the like.
MO

The Sales of Men’s Ready-to-Wear

From a quantitative point of view, the sales volume of men’s ready-to-wear remained steady for the
AN

2013-2015 period, while at the same time, value sales declined slightly (see Exhibit 7: Men’s
Clothing Sales Volume and Value 2013-2015).

Compared to 2014, the average unit price in the category was on a downward trend. Volume Sales
JE

nevertheless showed a relative improvement by 0.6% (see Exhibit 8: Annual Average Growth
Rate (%): Volume & Value 2014/15 & 2010-2015).
E
IT

9
Merter, March 2016.
10
Men’s wear in France & Womenswear in France, Euromonitor International Passport, February 2016.
9
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
As regards 2016, forecasts suggested a general decline in demand in value of around 1% (Table D) 11.

G-
Table D - Forecast in Sales Value in Sub-categories 2015-2020

EA
Demand Forecasts (in %) 2015/16 2015-20 AAGR*
Nightwear - 1.2 - 0.9

IS
Outerwear - 1.1 - 1.0
Swimwear - 0.8 - 0.9
Underwear - 0.4 - 0.8

E
* Annual Average Growth Rate (AAGR)

NN
For the next five years (2015-2020) the annual average growth rate forecast was also – 1% with all of
the sub-categories experiencing similar trends (see Exhibit 9: Forecast in Sales Value for the Men’s
Ready-to-Wear Market 2015-2016 & 2015-2020).

IE
The Consumption Habits

ET
Studies carried out in the field show that consumption patterns in men’s clothing had changed a little
over the past five years. The jeans sub-category, for example, still represented 9% of volume
purchases of outerwear. The weight of sales volume of T-shirts stagnated at 22% over the same period.

T
The rising value of ‘casual wear’, pullovers and cardigans, was at the expense of more formal wear,
especially suits and shirts. On the other hand, suits in a man’s clothing budget only weighted 8%
IN
compared to 12% five years ago.
SA
On a qualitative basis, the economic and weather conditions in 2015 did not have a positive impact on
Spring/Summer sales or Autumn/Winter collections. Sales of men’s clothing continued to be adversely
affected by the success of low-priced brands as well as by promotions such as private sales. In
February 2016, clothing expenses fell by 4.4% after two months of growth, notably in January
ET

(+5.7%) due to winter sales.

The Promotions
NN

The average annual textile budget for men was around €300 compared to €350 for women, a gap of
14%. Ten years ago, this gap was 20%. And for younger people (15-24 years), it was even weaker: a
little less than 6%. “Men spend less money on clothing than women” confirmed Merter.
MO

The weight of purchases under promotion was around 47% for the clothing market, up 3 points in
2012, and in within the European average (49%) 12. In a nutshell, men and women took full advantage
of promotions and bought fewer clothes outside the sales periods. On the other hand, online purchases
AN

were more interesting for consumers of both genders who were always looking for bargains.
JE
E
IT

11
id.
12
GfK, Kantar & Sita Ricerca Consumer Panels, February 4, 2016.
10
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
The Brands

G-
In 2015, six brands held more than 20% of market share in value in an obviously very difficult

EA
context. These included Celio, from the Marc Laurent Group with 5.2%; H&M (Hennes & Mauritz a
Swedish Group) with 3.9%; Jules (Mulliez Family Association) from the Happychic Group averaging
3.4%; Kiabi also from Mulliez Family Association with 3.2%; Carrefour Hypermarket’s own-brand

IS
with 3%; and Zara from the Inditex Industria de Diseno Textil Group, which was also close to 3%.

The trends of the market shares of brands by sub-category were presented in Exhibits 10–13 (see

E
Exhibit 10: Value Market Share (%) of the brands: Nightwear; Exhibit 11: Outerwear; Exhibit 12:
Swimwear; Exhibit 13: Underwear).

NN
The implementation of communication operations by market players, relayed on social media, was
frequent and with the intention of increasing the attractiveness and the brand awareness 13. The
‘capsule collection’ concept was an example of this 14. La Gentle Factory, explained Merter, “creates
a story in-store around a theme. The 2016 collection at the Jules store is based on the theme of a

IE
freshwater sailor (in 2015, it was the High Seas), with emblematic products such as the Breton Shirt
(‘la marinière’ in French). This year, fish are very present with ‘carp or not carp’”.

ET
The Level of Competitive Intensity

T
Among the determinants of sales and competitive intensity were the number of brands; the
development of a strong visual identity that put the collections into focus and improved the purchasing
IN
experience (sales volume); the changing price of clothing that had a direct impact on sales value; and
finally, the presence of new brands that weighted on the market in value given the competition and the
SA
price pressures they induced.
ET
NN
MO
AN
JE
E

13
Author’s note: During the launch of a new capsule collection, ‘UrbanHunt’, Chevignon launched an ‘urban duck hunt’
operation in Paris, Lyon, Lille and Toulouse (France) in April 2015. Participants were asked to find ‘Jean the Duck’ (the
IT

emblem of the new collection) thanks to clues communicated on social networks.


14
Author’s note: Definition given on p.4.
11
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
The Distribution

G-
- The Retailers

EA
Different channels shared the distribution of men’s ready-to-wear (€10 billion in 2014 & 2015):
Speciality chains, department stores, independent multi-brands, public chains and supermarkets, etc.
(Table E) 15.

IS
Table E - Main Distribution Channels: Men’s Ready-to-wear and Clothing in 2014

E
Distribution Channels (in %) Men 16 Clothing Clothing 17

NN
Evolution
(in % n-1)
Speciality Chains 37.5 51.8 - 0.4 à – 0.9
Department Stores 21.3 17.2 0.0

IE
Independent multi-brands 21.0 15.8 - 3.3
Supermarkets 19.1 14.6 - 0.6

ET
Others (popular stores) 1.1 0.6 - 1.2
Internet N/A N/A N/A
Total 100.0 100.0 - 0.7

T
IN
Three channels accounted for 80% of value sales in the male market: speciality chains (37.5%), which
were defined by at least four outlets under the one brand and offering a common concept; department
stores (21.3%), positioned on the medium and high end; finally, independent multi-brands that were
SA
not linked to any retailer (21%).

Large-scale food supply chain (19%) often sold cheap, multi-specialist offers i.e., for men, women and
children and were located on the outskirts of cities. Evolutions varied differently from one channel to
ET

another.
In order to gain market share, speciality retailers and mass-market channels were continuing to expand
their networks and at the same time modernized their fleet, and enhanced the customer experience
NN

(redesigning sales concepts and digitalizing stores). Simultaneously, retailers were developing new
store formats, fostering the creation of large format sales areas, characterized by the depth and variety
of the product line.
MO

The majority of retail and specialty brands also had a retail website, which met customer expectations
in terms of online sales. The goal was to develop omnichannel 18 strategies in order to ensure an
uninterrupted consumer shopping experience between the site and the physical store (fluid shopping
experience between the merchant site and their physical store). In addition, “click and collect”
AN

services, which allowed the withdrawal and free return of orders from the Internet, were becoming
JE

15
MarketLine Industry Profile, Menswear in France, July 2014 & Apparel Retail in France, August 2014.
16
Author’s note: Distance selling off-line and online is progressing but remains relatively modest with regard to the men’s
clothing category, which explains why its weight does not appear in the table.
17
LSA, Jean-Noel Caussil, 2 February 2015.
E

18
Author’s note: The term omnichannel refers to the fact that all possible contact and sales channels between the company
and its customers are used and mobilized. The notion of omnichannel can refer equally to contact initiated by customers or
IT

prospects as well as those emanating from the company. (Source: Marketing Definitions, https://www.definitions-
marketing.com/definition/omnicanal/).
12
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
more widespread and the vast majority of retailers now delivered this. The introduction of this type of

G-
service was a means to boost in-store sales.
New distributors had also appeared in the men’s clothing market, especially foreign chains such as the

EA
Japanese Uniqlo, which had been present in France since 2007 and opened its first stores outside the
Paris area in 2014. Primark, a contraction of ‘price’ and ‘mark’, was an Irish company specialized in
the distribution of low-priced clothing, which set up outside the Paris area at the end of 2013.

IS
- The Online Sales

Online consumption was booming: According to a survey carried out by Fevad-CSA 19, 49% of

E
Internet users surveyed in 2014 reported having purchased clothing items (for men, women and

NN
children) over the past 6 months (45% in 2010 and 2011). The weight of the Internet grew by 36%
over the 2012- 2015 period reaching €4.3 billion or 13% of the total value of the clothing market
(European Average = 15.5%) 20.

IE
Also according to the Fevad survey, 9 out of 10 e-buyers considered buying as much or more on the
Internet in 2016 as in 2015. Among the e-buyer, 64% of the 25-34 year olds, 61% of the 35-49 year,

ET
and 65% of the AB (socio-professional category of higher and intermediate managerial,
administrative, professional occupations) showed an average purchasing frequency of more than once
a month. 54% men bought clothing items on-line (which reaches 68% amongst 25-34 years old), vs.
64% women. E-buyers were increasingly equipped for mobility for buying online: in fact 81% of them

T
had a Smartphone, especially the younger ones (95% of 18-24 year olds, 89% of 25-34 year olds), and
IN
57% had tablets. 20% of the e-buyers consumed “collaboratively” in 2013. They were 39% in 2015
and according to forecasts, would be 62% in 2016.
SA

The Decision
ET

Merter clarified the managerial challenges encountered by La Gentle Factory in the context of the
company social responsibility: It is ‘casual wear’ which sells best as confirmed by our sales growth
last year. The most important opportunity in men’s ready-to-wear today is alternative consumption:
NN

barter, second-hand products, group purchases, rental, purchasing from producers. For recycled
materials, said Merter in her measured tone of voice, we have a partnership with ‘Le Relais’. At Jules
and Bizzbee, there are two collection operators who bring the clothes back to ‘Le Relais’. ‘Le Relais’
has the freedom to do what it wants with these clothes. If the garment is of good quality, it resells it in
MO

the shop either in France or in Africa. Otherwise, it turns it into rags, or burns it. From time to time
La Gentle Factory tells ‘Le Relais: I need so many pounds of black jeans, and so on. And we
recuperate the products”.
AN

Up until now La Gentle Factory had worked on a start-up Test & Learn approach. After two years of
existence, the brand was at a strategic turning point in its development. Merter was under pressure to
meet the objectives of Happychic management: to increase sales by 65% compared to 2015 and reach
€5 million at the end of the year then meet the target of €30 million by 2020.
JE
E

19
FEVAD/CSA survey on Internet shopping prospects in 2016 - Online consumption, sharing economy, connected objects:
upward trends for 2016 (https://viuz.com/annonce/2016/01/28/en-2015-les-francais-ont-depense-65-milliards-deuros-sur-
IT

internet/).
20
GfK, Kantar & Sita Ricerca Consumer Panels, February 4, 2016.
13
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
How could Merter create value for the group and its brands? How could she achieve growth on such a

G-
short time horizon? What were the growth drivers? Should La Gentle Factory diversify its distribution
network and opt for a multi-channel distribution approach or should the company opt for a mix-

EA
product approach and extend its product line? Merter reviewed all her options. She knew how far La
Gentle Factory had come and wondered what the best road ahead was to further her company
development.

IS
E
NN
IE
T ET
IN
SA
ET
NN
MO
AN
JE
E
IT

14
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
Exhibit 1: Behind the Scenes of the Recycling Process 21

G-
EA
In partnership with ‘Le Relais’,
Happychic was involved in the
collection of used clothing in order to

IS
increase their supply. Once collected,
the garments were sorted
methodically. Garments which were in

E
good condition were reused without
any transformation. The other

NN
garments were recycled in order to
recuperate a maximum amount of
exploitable raw materials. For every

IE
10 garments collected by ‘Le Relais’,
6 were used in their current state, 3
were recycled and the rest were

ET
incinerated to produce energy.

The Recycling of Polyester: Something Wonderful made from Bottles!

T
IN
SA

The bottles were first sorted by colour: transparent bottles were separated from blue, green or yellow
ET

bottles. Then the bottles were sorted to ensure that plastics with the same composition were together.
The bottles were then transformed into small flakes, which once melted and spun, became recycled
textile.
NN

The Recycling of Cotton


MO
AN

How to make something new with something old? It started with sorting by colours and materials. To
JE

avoid dyes and other chemical treatments, the red fibres remained red and this was the same for the
other colours. The textiles were then frayed: they were placed in large drums equipped with blades and
the machine stopped turning only when there was wire-like material left in the bottom of the machine.
E
IT

21
Source: http://www.lagentlefactory.com/module/stblog/10_les-coulisses-de-recyclage.html.
15
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
After this step you almost felt like you had natural cotton in your hands. With one small difference,

G-
however, the fibres were very short. To simplify spinning, the polyester of the bottles were therefore
mixed with these fibres. At the end of the process the fabric provided clothes that were like new with a

EA
much lower energy footprint.

IS
E
NN
IE
T ET
IN
SA
ET
NN
MO
AN
JE
E
IT

16
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
G-
Exhibit 2: Behind the Scenes of La Gentle Factory Manufacturing 22

EA
Step by step, here was how beautiful and responsible fashion was born:

IS
E
NN
At the origin of all clothes, the choice of materials played a major role. How to limit the impact of

IE
pesticides before elaborating the fibres? Was it possible to reduce the use of dyes before
manufacturing? How to offer clothes that was energy efficient when you washed and recycled them?
La Gentle Factory boasted a responsible supply of raw materials and claims to have an impact on

ET
ecological issues at every stage of the life of the product.

Recycled cotton: French linen:

T
IN
SA

In partnership with ‘Le Relais’, La Gentle Factory The cultivation of flax did not require fertiliser. This was
recuperated cotton that had been reduced to threads to give why its production was recognised as being particularly
ET

life to their new collections. Therefore, the production of environmentally friendly. The flax used by La Gentle
virgin fibres and the use of dyes were limited. Factory originated mainly in the North of France and from
Normandy, where artificial irrigation was not necessary.
NN

Recycled polyester: Organic cotton:


MO

Polyester was a material derived from the petroleum Industrial cotton grew on 2.5% of cultivated land and
AN

industry. To improve recycling without depleting resources absorbed 25% of pesticides on a world scale. That was why
La Gentle Factory chose to use recycled polyester from La Gentle Factory preferred to use organic cotton, which
plastic bottles. In addition to reducing the volume of was grown without pesticides that would otherwise reach the
untreated waste, this approach limited greenhouse gas groundwater.
JE

emissions and the depletion of natural resources.

La Gentle Factory designers selected the spinners which guarantee a less ecological footprint while
E

guaranteeing perfect quality to produce a garment that lasted longer. These threads included recycled
cotton and wool. The threads were transformed into fabric to make T-shirts, polo shirts, shirts, jeans,
IT

22
Source: http://www.lagentlefactory.com/module/stblog/9_les-coulisses-de-fabrication.html.
17
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
etc. The weavers and knitters of La Gentle Factory were chosen in France to limit transport and to

G-
maintain a maximum amount of local jobs. Established in the Somme, in the Vosges and in the Lyon
region (France) since the beginning of the 20th century for some at least, these craftsmen lived the

EA
tradition of weaving and knitting in accordance with the values of La Gentle Factory. It was
sometimes necessary to dye threads coming from recycling or from organic processes. In this case La
Gentle Factory used certified dyers, which guaranteed an environmentally friendly treatment by using

IS
selected chemical products.

E
NN
IE
T ET
IN
SA
ET
NN
MO
AN
JE
E
IT

18
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
Exhibit 3: Manifesto for the Creation of the Collections

G-
EA
LOCAL

We privileged local production to preserve industrial

IS
local know-how and support short supply chains.

In the beginning Happychic produced in Asia, etc. Then the question arose: “What is made with the frayed

E
material of our old jeans? Is it being sent back to Asia using the existing supply chain or do we work with

NN
French companies and promote short supply chains?”

PRODUCTION

IE
Each product was conceptualised according to social and
environmental criteria. We chose the use of natural,

ET
organic or recycled materials.

In order to facilitate teamwork and to coordinate all the environmental actions related to product design, an
employee of the group was now in charge of eco-design. Happychic had also acquired eco-design software to

T
calculate the environmental gains of the actions implemented. IN
PARTNERSHIP
SA

We worked in partnership with our suppliers to elaborate


our fabrics.
ET

Happychic had 43 suppliers. The group tried to develop genuine partnerships with their suppliers by inviting
them to spend a day at the headquarters to take stock of achievements (Awards Ceremonies) and co-construct
by identifying the existing strengths and the improvements to meet the challenges of the future.
NN

SECOND LIFE

We reduced waste thanks to our collection operations,


MO

our collaborative platform and our recycling.

The company wished to offer our clients the possibility to co-act in a responsible manner via their clothing
habits and a range of services.
AN

VALUES
JE

We collaborated with Bizzbee, Brice and Jules because


we shared the same values of simplicity, responsibility
and quality.
E

Simplicity: Happychic was rather simple in how it communicated. They provided modern and fashionable
products that did not go out of fashion from one season to another. In addition, collection operations in shops
IT

was simple. The same was true for in-store communication actions.
19
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
Responsible: Happychic did this to make things happen.

G-
Quality: Every 6 months, customers were asked about perceived quality. The Gentle Factory was well rated.
As a result, customers recognized La Gentle Factory in terms of its superior quality. But if they were

EA
disappointed, they are much more disappointed than in other retailers of the groups.

Appendix 4: The Brand Platform

IS
Vision Visibly display the responsible acts that the planet required.
Mission Offer humanity the possibility to act simply and responsibly in how they dressed.

E
Ambition Was the reference in responsible clothing for me and create value for Happychic and its

NN
brands.
Values Responsible Modernity
Actor Simplicity
Optimism Discretion

IE
Value Why this was important in our platform Sense

ET
Discretion I acted without making too Quality
much noise about it. Softness

Simplicity A simple and clear action in my Natural

T
daily life without complicating IN Weak
things. Affordable
Minimalist/ attention to detail
SA
Modernity I was in the spirit of the Contemporary
time/fashionable. Trend
Fashion was a means of Health
expression. Hedonistic
ET

More pleasure and happiness for Comfort


me and my loved ones.
Optimism I believed in the future. Optimism
NN

Confidence
Lightness
Humour
Actor I acted on my needs of the Active
MO

moment. Voluntary
We were all an integral part of
the solution.
Responsible I felt beautiful and useful. Sharing
AN

Generosity
Committed

The Target: Adult males of middle and upper class, being part of the consumer typologies called the
JE

green builders, the organic beau and the scouts. The heart of the target was aged 25 - 45 years old.

Expectations: A consumer who assumed a pleasurable and healthy consumption of products and who
E

participated in his overall well-being, was respectful of nature, without being too cool, a militant eco-
friendly nor having a surfer/outdoor look. He had a modern look without being a fashion victim. For
IT

him fashion was a way of expressing himself and to send a message. He was concerned by the future
20
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
of the planet, the environment, health, for the development of his own well-being and that of his loved

G-
ones. He wanted to consume differently by keeping a modern and trendy look without taking the lead.

EA
Objective promise: La Gentle Factory offered him the possibility to exchange, sell or recycle the
clothes he did not wear any more.

IS
Emotional promise: He improved his own well-being and that of his loved ones. He felt beautiful and
useful. He felt good in his clothes and in his head, in his body and in his heart.

E
NN
IE
T ET
IN
SA
ET
NN
MO
AN
JE
E
IT

21
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
Exhibit 5: Examples of Capsule Collections

G-
Summer 2015 Capsules collections

EA
- The ‘Globe Trotter’ collection at Jules

IS
- The ‘Lavandou’ collection at Brice

E
NN
- The ‘Marins Marrants’ (Funny Sailors) collection
at Bizzbee

IE
ET
For the autumn 2015 collection, La Gentle Factory delivered ‘Parisian Bistro’ at Jules with
fashionable and responsible clothing, which honoured the work of small French manufacturers and the

T
Parisian art de vivre.
IN
Summer 2016 capsule collection
SA
‘French Capitain’ collection at Jules with the soft water sailor theme (sea, fishing, beach).
ET
NN

Emblematic clothing: ‘la marinière’ (Breton Shirt) - Summer and modern colours (off-white, blue,
MO

rust-colour).

‘Be Green’ at Bizzbee


AN
JE
E

The materials were recycled, organic and Made in France; produced in Portugal and Tunisia in navy
IT

blue, off-white, red and kaki tones.

22
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
‘West Coast’ at Brice

G-
EA
IS
E
NN
Collection of 16 referenced in navy blue, heather grey, off-white, and burgundy; 100% French.

IE
From Camaïeu Homme to Jules, BizzBee and Brice

ET
Jules was created in 1991 by the Camaïeu company under the name of Camaïeu Homme. The Franco-
French single-channel company, Camaïeu Homme was bought back by AFM (Association Familiale
Mulliez - The Mulliez Family Association) in 1996 with an obligation to change its name. The name

T
‘Jules’ was chosen because it is memorable and concrete, knowing that women buy clothes for their
companions and also because at that time, ‘jules’ was a slang term for ‘boyfriend’. The brand was
IN
aimed at young, urban, active 23–30 year olds, and provided them an accessible, playful and colourful
fashion collection.
SA

In 2005, Jules launched the brand BizzBee, a new mixed concept dedicated to clothing for teenagers
(15-25 year olds) with an offbeat and trendy universe. BizzBee continued to expand internationally,
first of all in Spain.
ET

Brice was created in 1985 but 2003 marked a new turning point: The channel was taken over by the
Mulliez Family Association; in 2009, Brice joined Happychic. This brand accompanied all men who
NN

wanted to feel classy and seductive without doing too much.


MO
AN
JE
E
IT

23
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
Exhibit 6: Men’s Fashion Collaborative Platform

G-
EA
IS
E
NN
IE
T ET
The objective was to have more than 50 000 registered users in the first year and to pay for the
IN
maintenance of the website by a commission on customer transactions the following years with a 10%
increase in enrolments per year.
SA

Nevertheless, this collaborative platform did not meet the desired success, and had only 500 registered
users and an unknown number of transactions at the beginning of 2016
ET
NN
MO
AN
JE
E
IT

24
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
Appendix 7: Menswear Sales: Volume and Value 2013-2015 23

G-
Volume Value

EA
Sales (in millions of units and Euros) 2013 2014 2015 2013 2014 2015
Nightwear (Pyjamas, etc.) 7.9 7.9 7.9 203.0 200.2 199.1
Outerwear 261.8 261.3 262.6 8 961.9 8 910.5 8 873.4

IS
Jeans 23.6 23.5 23.6 1 004.5 996.7 992.6
Economy 13.1 13.0 13.1 289.7 288.8 288.4

E
Standard 7.1 7.1 7,1 387.0 384.3 382.2
Premium 3.2 3.2 3.1 295.1 291.2 289.7

NN
Super Premium 0.2 0.2 0.2 32.7 32,5 32.3
Jackets & Coats 14.4 14.3 14.4 1 231.6 1 218.0 1 210.6
Pullovers 51.7 51.9 52.2 1 796.2 1 793.6 1 789.9

IE
Shirts 50.8 50.5 50.7 3 304.2 1 293.8 1 290.1
Long Trousers & Shorts 54.0 54.0 54.2 1 726.1 1 719.4 1 709.7

ET
Suits 5.6 5.6 5.6 750.2 745.7 740.5
Tops (T-shirts, etc.) 57.2 57.1 57.5 1 091.2 1 085.9 1 082.9
Other Outerwear 4.5 4.4 4.5 58.0 57.4 57.1

T
Swimwear 7.2 7.2 7.2 162.0 161.6 161.4
Underwear 87.3 86.6 IN 87.3 842.8 834.4 837.0
Menswear Category - Total 364.2 362.9 365.1 10 169.7 10 106.6 10 070.8
SA
ET
NN
MO
AN
JE
E
IT

23
op. cit. Passport Euromonitor International, February 2016, p. 1.
25
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
Appendix 8: Average Annual Growth Rate (%): volume & value 2014/15 & 2010-2015 24

G-
Volume Value

EA
Average Annual Growth Rate (%) 2014/15 2010-2015 2014/15 2010-2015
Nightwear (Pyjamas, etc.) 0.3 - 0.7 - 0.6 - 0.7
Outerwear (Jackets, macs, etc.) 0.5 - 0.2 - 0.4 - 0.3

IS
Jeans 0.4 - 0.2 - 0.4 - 0.2
Economy 0.4 0.1 - 0.1 0.1

E
Standard 0.5 - 0.1 - 0.5 - 0.5
Premium - 0.1 - 1.5 - 0.5 - 0.2

NN
Super Premium 0.4 - 0.2 - 0.6 - 0.1
Jackets & Coats 0.3 - 0.4 - 0.6 - 0.2
Pullovers 0.7 0.6 - 0.2 0.1

IE
Shirts 0.5 - 0.3 - 0.3 - 0.5
Long trousers & Shorts 0.3 - 0.1 - 0.6 - 0.3

ET
Suits 0.4 - 0.2 - 0.7 - 0.1
Tops (T-shirts, etc.) 0.7 - 0.7 - 0.3 - 0.6
Other Outerwear 0.5 - 0.9 - 0.5 - 0.5

T
Swimwear 0.7 - 0.3 - 0.1 - 0.3
Underwear IN 0.8 - 0.2 0.3 0.0
Menswear Category (%) 0.6 - 0.2 - 0.4 - 0.2
SA

Appendix 9: Forecast of Sales Value – Men’s Ready-to-wear 2015/16 & 2015-2020 25


ET

Average Annual Growth Rate (en %) 2015/16 2015-20 AAGR


Nightwear - 1.2 - 0.9
NN

Outerwear - 1.1 - 1.0


Jeans - 1.2 - 1.2
Economy - 1.4 - 1.5
Standard
MO

- 1.2 - 1.1
Premium - 1.1 - 0,9
Super Premium - 1.4 - 1.1
Jackets & Coats - 1.2 - 0.8
AN

Pullovers - 0.9 - 1.1


Shirts - 0.9 - 0.8
Trousers - 1.3 - 1.3
Suits - 1.3 - 1.1
JE

Tops (T-shirts, etc.) - 0.9 - 0.9


Swimwear - 0.8 - 0.9
Underwear - 0.4 - 0.8
E
IT

24
op. cit. Passport Euromonitor International, February 2016, p. 1.
25
op. cit. Passport Euromonitor International, February 2016, p. 1.
26
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
Appendix 10: Value Market Share (%) of the brands: Nightwear 26

G-
Retailer Level (RRP incl. VAT) 2013 2014 2015

EA
Dim 8.8 8.8 8.8
Armand Thiery 7.1 7.0 6.9
Carrefour 6.2 6.2 6.2

IS
Auchan 5.1 5.1 5.1
C&A 5.0 5.0 4.9

E
Leclerc 4.5 4.5 4.4
H&M 3.2 3.7 4.3

NN
Monoprix 4.1 4.2 4.2
Hom (Triumph) 3.4 3.5 3.5
Gemo/Eram (Vêtir) 2.5 2.6 2.6

IE
Calvin Klein – Kiabi >2<1 >2<1 >2<1
Primark 0.0 0.5 1.2

ET
Hugo Boss - Gap - Uniqlo < 0.6 < 0.7 < 0.7
Other Own-brands 7.2 7.1 7.0
Others 38.5 37.2 36.0

T
Total (%) 100.0 100.0 100.0
IN
SA
Appendix 11: Value Market Share (%) of the brands: Outerwear 27

Retailer level (RRP incl. VAT) 2013 2014 2015


ET

Celio (Marc Laurent) 5.7 5.7 5.6


H&M (Hennes & Mauritz) 3.4 3.6 4.0
Jules (Happychic) 3.7 3.7 3.7
NN

Kiabi 2.9 3.2 3.4


Zara 3.2 3.2 3.3
Armand Thiery 2.8 2.8 2.7
MO

Carrefour 2.6 2.6 2.5


Auchan 2.1 2.1 2.1
Leclerc - Monoprix - La Halle (Vivarte) - C&A - Décathlon >2<1 >2<1 >2<1
Hugo Boss >2<1 >2<1 >2<1
AN

Brice (Happychic) 1.3 1.2 1.2


H&M Sportswear - Tommy Hilfiger - Levi’s (Accessoires) – Nike <1 <1 <1
Primark - Promod - Quicksilver (Na Pali) - adidas - Gucci – Aigle <1 <1 <1
JE

Ralph Lauren - Gemo/Eram (Vêtir) - Lafuma - Burberry <1 <1 <1


Other own-brands 3.0 3.0 2.9
Others 51.6 51.1 50.4
E

Total (%) 100.0 100.0 100.0


IT

26
op. cit. Passport Euromonitor International, February 2016, p. 1.
27
op. cit. Passport Euromonitor International, February 2016, p. 1.
27
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
Appendix 12: Value Market Share (%) of the brands: Swimwear 28

G-
Retailer Level (RRP incl. VAT) 2013 2014 2015

EA
Carrefour 7.3 7.2 7.1
Dim (Hanesbrand) 6.0 6.0 5.9
Auchan 5.9 5.9 5.7

IS
Leclerc 5.3 5.2 5.0
Monoprix 4.8 4.8 4.8

E
Hom (Triumph) 3.4 3.6 3.7
H&M 3.1 3.4 3.7

NN
Celio 3.0 3.0 3.0
Sloggi (Triumph) 2.8 2.8 2.9
Athena (Eminence) 2.9 2.8 2.7

IE
Adidas 1.9 2.0 2,0
Jules (Happychic) 2.0 2.0 1.9

ET
Calvin Klein - Kiabi - C&A - Eminence >2<1 >2<1 >2<1
Gemo/Eram (Vêtir) - Nike - Armand Thiery - Hugo Boss - Gap <1 <1 <1
Primark - G-Star Raw - Promod - Uniqlo - Calvin Klein <1 <1 <1

T
Other own-brands 8.4 8.3 8.0
Others IN 33.3 32.8 33.0
Total (%) 100.0 100.0 100.0
SA

Appendix 13: Value Market Share (%) of the brands: Underwear 29


ET

Retailer Level (RRP incl. VAT) 2013 2014 2015


Décathlon 27.9 28.4 28.9
NN

Dim 15.9 15.5 15.2


Arena 8.5 8.8 9.1
Speedo 7.8 8.1 8.5
MO

Calzedonia 2.3 4.7 5.9


C&A 5.8 5.7 5.7
adidas 3.6 3.7 3.9
Carrefour 2.6 2.5 2.4
AN

Gemo/Eram (Vêtir) - Leclerc - H&M - Monoprix >2<1 >2<1 >2<1


Hom (Triumph) - Nike - Auchan >2<1 >2<1 >2<1
Calvin Klein - Hugo Boss - Gap - Primark >1 >1 >1
JE

Kiabi 0.7 - -
Other own-brands 3.0 2.8 2.7
Others 8.8 6.2 4.3
E

Total (%) 100.0 100.0 100.0


IT

28
op. cit. Passport Euromonitor International, February 2016, p. 1.
29
op. cit. Passport Euromonitor International, February 2016, p. 1.
28
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE


E
IA
G-
EA
IS
E
NN
IE
T ET
IN
SA
ET
NN
MO
AN
JE
E
IT

29
S

Anglo-Saxon Standards
ER

© CCMP 2017 – M1982(GB) - Gentle Factory & Happychic Group : What growth drivers for men’s ready-to-Wear Eco-
Design Market?–
IV

Sabine RUAUD, Ronald KAMIN, Véronique BOULOCHER-PASSET, Peter DALY


EDHEC Business School, Brighton Business School
UN

Licence d'utilisation accordée à : UNIVERSITE JEAN MONNET SAINT ETIENNE ISEAG-IAE

You might also like