Interview with Albert Boada, director of Muy Mucho expansion
Albert Boada, Muy Mucho‘s expansions director tell us about his plan in order to enlarge the brand and about the factors which influence the decision about the location of the new stores. Boada also reveals which type of technologies are used in order to accomplish his mission and how these technologies allow to have every store under control once they are running.
Tell us, what is your role within the retail organization Muy Mucho?
I am encharged of al the expansion process of the brand, which can be segmented in three different steps. The first one consists in the research for investors together with the presentation of the project. The following phase aims to find and evaluate the locations’ capavity meanwhile carry on the contracts’ negotiations. In conclusion, my work is about lead the brand‘s strategic expansion.
What is the brand’s strategy?
Our brand’s strategy is about opening a certain amount of point of sales each year. It is a goal pre-determined by the business structure. Part of the strategy is also opening new markets without neglecting the national expansion.
The international openings allow us to achieve an exponential growth, it is a way of doing business which bring us to an almost automatic growth. We operate mainly throughout master franchising. On the other hand, at a national level we choose to open in franchising because it brings a natural increment in the business actvities. In order to achieve out objectives at a national livel, we focus our efforts in entering new markets where we do not have a strong presence as brand. Some examples are the south and the north of Spain of the Mediterranean part.
How do you selct you destinations?
We choose countries in which the socio-economic conditions permit the realization of the project. I am referring to the commercial relationships with the countries. In fact, they do not have to charge rates and they do not have to distort or damage our business mode, among other factors we take into account countries where the merchandising transport from Barcelona to suppliers’ location is easy and direct. Currently, Muy Mucho is situated in Japan, Bulgary and Portugal. Moreover, we are closing trades in Panama, Mexico, Cyprus and Morocco. In all these countries we have met master franchising; nevertheless once we have signed the contracts we are going to overseeing the the processes behind the opening of the store and the ones the shop is already running, it is the same control we undertake in Spain.
What is you opinion about the top5 ranking realized by the consulting company JLL regarding the most attractive cities for international retaile? (London, Paris, Dubai, New York)
I do not know this study in particular. Nevertheless, the majority of the consulting researches usually citate at least four of the five cities. But I would like to make a difference, in fact, place the flagship store in one of tehese cities, windows of the world, not wlays coincide with profitable results. In fact, it is not mandatory that the two aspects are developed together and an organization should now this before face a such big change.
How do you chose where to open the point of sales?
The principal aspect er take into account to select a location is its position, then the postion and again its position. (laugh) We evaluate also the purchasing power of the ares, the competitors and the visibility conditions that offers the commercial establishment we are looking at.
The index of the pedestrain traffic is essential. The nature of our stores is linked to the impulsive purchase. For this reason, we have the necesity of being in the front line in terms of pedestrain traffic affluence, and this is an assurace on the fact that we are in the first line to reach the consumers.
Is the position that important?
For a store based on impulsive purchase, yes. A swimmer can be very near to the land but if he cannot touch it, he can also drown. This example is to explain that for us, not being at on-step distance it is the sabe of being at 10 meters or kilometers of distance.
With a good position you alreardy assure a successful redditivity of the store?
A good position means the pedestrian traffic proportional to the place rent. A pedestrian traffic which amounts to 500/600 people a day in the commercial hours is correct. However it is always important to maintain the proportion with the rent costs.
For the external pedestrain traffic measurement, do you use the counting technological instruments created by TC Group Solutions, in what other aspects of retail managment, do these technologies help?
We use the data generated by the TC Group‘s solutions for a lot of aspect in the point of sale management and the general stores net. The basic indexes that we use are the penetration rate (attraction) e the conversion one. This indicators allow us to have an allarm signal on the running stores. The variation of the measurements permits a fast reaction to solve the upcoming problem before it damages the redditivity of the shop.
Moreover, they allow an indicator of the stores’ visibility and capability and evaluate if the door is correctly open, the window are active and the postion of the merchandising appealing, etc.
In conclusion, these measures allow to have a really competitive level at the moment of the opening. In fact, we are using a model which is merging the traffic, the penetration, conversion and the invoicing. It is applicable to every location that we want to analyze and evaluate for a possible opening, this model permit to have a lower error’s margin.
TC Group guides you in every new international opening?
Of course. Becuase they are “far markets” that we manage via partners, the objective elements offer us a more solide prospectiove of the evolution of the project in the new country.