3 questions for . . . Michael Schulz, Managing Director for the German company ACO Modeagentur, a commercial agent for fashion

‘What is our role as an agent? To act as branch offices for brands.’

Michael Schulz, who has 25 years experience in the fashion industry, founded his own agency 13 years ago. ACO Modeagentur, a German agent for brands such as Just Cavalli, Versace Collection, Trussardi, and French label Yves Salomon, works with over 550 points of sale. Mr. Schulz talked to us about his profession before participating in the Fédération’s first Agent/Brand Business Meeting event.

Would you share your ideas about the commercial agent profession?

I believe several factors are involved. Fashion, people, and trends are all part of the most intensely emotional business I’ve ever known. Everything about the job inspires feeling, and that includes enthusiasm! Success is not possible in this field without the ability to face every day, every negotiation, and the discovery of every new collection with enthusiasm. Next, you have to strive constantly for harmony and good timing. This is the big difference between now and fashion’s golden years in the 80s and 90s. Today’s market involves both the collections’ general directions and the brands, from entry level to top quality, from low cost to luxury.

What are our daily challenges? To position the right brand at the right time and to convince brand directors to invest in a nearby market like Germany. The fact is that helping launch a project is like organizing a successful dinner party, when you pay a lot of attention to every detail of the preparations. Sometimes you achieve perfection, and sometimes it’s a disaster.

How do I see our part in all of this? I think our role as agents is to act as brands’ branch offices in our country; to give brands the best possible service for after-sales, customer relations, communications, and re-orders; and to help them when things are tough. An agent’s role is to maintain a client relationship on both sides, with the brand and the retailer. We’re the bridge between them.

What are the opportunities in the German market?
Germany remains a stable, healthy market. In the fashion sector, it’s led by key independent multi-brands like Jades and Apropos who are opinion leaders. Daniels, a national chain, is a good representative of our fashion business, and there are some very good retailers like Veronika Pohle in Berlin or Wirschke in Dusseldorf. As far as department stores, we have international giants like the Kadewe Group, Breuninger, Lodenfrey, and Engelhorn; and then there’s Peek & Cloppenburg, which must be Germany’s biggest department store. I’ll also list Wormland, a new specialist with a slightly more cutting edge product offer. And ‘last but not least’, it’s important to mention e-commerce, which is slowly taking more and more market shares away from brick and mortar stores.

In this environment, French fashion labels have some great assets. We can see the big influence the first French brands had in the ‘youth’ segment, which is being redefined. There’s a lot of potential there and in every market segment. However, just one thing counts, and that’s strategy. Because no matter how efficient the agent may be, he’s not a magician. Communications, product analyses, and price positioning are the first essential foundations to set up before going further.

What are the key qualities for a brand that wants to succeed in the German market?
That depends on the strategy. High value-added labels positioned in the top contemporary brands do well around the world. In this category, the best-known French brands already have good visibility. For example, in the mid-range market, the strategies of Zadig & Voltaire, Sandro, Maje, Claudie Pierlot, and the Kooples revolutionized the concession system, and their quality/price ratio is unique and appealing. French brands – which are quite different from Italian brands – have a specific image, and thanks to these brands’ success, other mid-range labels have a better chance of doing well.

But in the market segment with more competitive pricing, you have to supply more than a well-positioned collection. You have to invest in a targeted communications plan that includes media presence, special events, celebrities, and more.

At ACO Modeagentur, we choose our clients primarily by their products, then price positioning, and then their ability to invest and stay motivated. We also pay attention to the conditions they offer us and their readiness to function in a partnership. You have to keep in mind that the German market is as competitive as the others. Standing out from the crowd comes from a willingness to cooperate, invest, and understand the particular needs of our market. Once all those elements have been taken into account, the German market is relatively easy to navigate.