ACROSS: MADAME COCO WAS FOUNDED ONLY IN 2011, AND YOU ARE ALREADY ACTIVE IN OVER 20 COUNTRIES. WHAT IS YOUR GENERAL EXPANSION STRATEGY?
CEM C. IŞIK: Madame Coco’s aggressive growth strategy for 2024-25 involves expanding through investments in franchises and company-owned stores. The initial focus is on high-footfall shopping malls, ensuring a deep understanding of market dynamics and compliance. The plan includes sustainable expansion with marketing support, anticipating the opening of numerous stores worldwide, especially in Europe, over the next two years.
ACROSS: WHICH MARKETS ARE YOU PARTICULARLY INTERESTED IN, AND WHY?
IŞIK: Having achieved success through corporate investments in Belgium, Greece, Serbia, Bosnia, Georgia, and Kazakhstan, Madame Coco is now setting its sights on major markets. Notably; France, Spain, England, Poland, Germany, Netherlands, Italy, Portugal and the Czech Republic are the primary targets for the company’s continued expansion. Madame Coco will be expanding through franchise in the Middle East and Africa, which will be a strategic move, tapping into diverse markets. Considering local prefer-ences, cultural nuances, and economic factors for successful growth.
ACROSS: IN WHICH MARKETS IS MADAME COCO PARTICULARLY SUCCESSFUL?
IŞIK: Following its prosperous ventures in Belgium, Greece, Serbia, Bosnia, Georgia, and Kazakhstan through corporate investments, Madame Coco has decided to extend its growth in these regions. The product range, well-received across various cultures, swiftly earns customer appreciation by dynamically meeting market needs through a continuous introduction of new and exiting products.
ACROSS: WHEN LOOKING AT THE MARKETS YOU ARE ACTIVE IN, WHERE DO YOU SEE THE MOST SIGNIFICANT DIFFERENCE REGARDING CONSUMPTION AND CONSUMERS, AND WHAT DOES THAT MEAN FOR YOUR SUPPLY CHAIN?
IŞIK: Consumer behavior varies across countries, influenced by factors such as per capita income, spending habits, climate, and cultural practices. In Belgium, a frugal approach is observed, with savings accumulating throughout the month and spending at month-end. Serbia exhibits high sensitivity to campaigns, while Kazakhstan’s preference for thick cotton duvet covers contrasts with Greece, where consumers may choose sets without quilt covers. Bosnia, despite being in the same country, shows differences in Christmas decorations and local motif carpets between cities with distinct religions. To manage this diversity, product planning is tailored for each city, maintaining a cohesive yet adaptable strategy. The centralized planning undergoes a final evaluation by country managers in each respective location.
ACROSS: WHAT IS YOUR EXPERIENCE IN THE EUROPEAN MARKET?
IŞIK: After successful launches in Greece, Belgium, and the Balkans, our next phase involves expanding into Germany, France, and the Netherlands. This expansion plan includes not only the establishment of physical retail stores but also the integration of e-commerce operations. To facilitate this, product distribution will be managed from our warehouse based in Germany.
ACROSS: WHAT DO YOU LOOK FOR WHEN CHOOSING A STORE LOCATION? WHAT CITY SIZE AND CATCHMENT AREA ARE YOU LOOKING AT, AND WHY?
IŞIK: When venturing into new countries, our primary goal is to establish a presence in renowned shopping malls and high-traffic areas to amplify brand recognition. Whether advancing our country expansion plan or evaluating existing markets, we thoroughly explore all potentially profitable shopping mall and street options. The location selection process prioritizes not only the appropriate brand mix but also proximity to globally recognized women’s clothing brands in areas with significant female foot traffic. Our focus extends to securing storefronts with suitable facade widths ranging from 300 to 500 sq m, strategically positioning our brand for success.
ACROSS: REGARDING YOUR SUPPLY CHAIN, YOU RECENTLY PARTNERED WITH RELEX SOLUTIONS TO MANAGE YOUR SUPPLY CHAIN MORE EFFICIENTLY. WHAT ARE THE ADVANTAGES OF THIS COOPERATION, AND HOW DOES IT AFFECT YOUR BUSINESS?
IŞIK: RELEX helps us to deliver highly accurate demand forecasts by automatically capturing the impact of hundreds of demand drivers. With RELEX, we have visibility into future demand, allowing for improved planning processes across merchandising, supply chain, and operations. It is easier to forecast the demand by analyzing factors like external events, holidays, seasons, trends and even weather forecasts, as well as planned changes in assortment, pricing, store-space allocation, stock policy and promotional activities. Thus, we can increase our forecast accuracy to plan better in all our core functions.
ACROSS: WHAT OTHER TECHNOLOGIES DO YOU HAVE AN EYE ON TO MAKE YOUR BUSINESSES MORE EFFICIENT?
IŞIK: We’re currently investing in new software to take our seat in the front row of digitalization and data-based decision making. One of them will definitely power up our omnichannel home like and home comfort strategy. AI will be and actually is in our agenda. All of our processes will be computer supported and streamlined by the end of 2024.
Cem C. Işık
Cem C. Işık is Vice Chairman of Madame Coco.
