3 questions for . . . Dominique Chatelin, CEO of Webhelp Payment Services

Dominique Chatelin has extensive international professional experience and held management positions in fast growing European and American companies, particularly those working in new technologies. Since 2006 he has been president for FDI (which became Webhelp Payment Services in April), a company helping fashion brands develop internationally by providing them with client management solutions. FDI is under contract with approximately 35,000 retailers and department stores in around 30 countries to keep business transactions secure for 400 clients. And Webhelp Payment Services recently became a partner with the Fédération Française du Prêt à Porter Féminin.

What are the best growth markets today for French women’s ready-to-wear? And what are their specific characteristics?

Today there are very few real growth markets, a fact tied to the changes in consumption that began in 2008. Before, growth markets existed, but not any longer. The truth is that when we look at markets, we shouldn’t think in terms of countries, but rather cities, since the markets are concentrated in certain reference cities. So London isn’t England, Paris isn’t France, and New York isn’t the United States. When we talk about market segmentation, we have to increasingly think in terms of capitals or major metropolises. They attract international tourists and, by themselves, can represent up to 35 percent of a country’s sales. And if we want to look at healthy markets, we can see say that in the past two or three years the American market has recovered. The USA is, however, a market that’s complicated to understand. It’s dominated by department stores and it’s important to remember that you can deal in volume with good turnover, yet still not make a profit. It’s very important to know about the chargebacks practice – penalties to brands when they don’t respect specific requirements in the bill of specifications. But these requirements are often hard to notice in very long, dense contracts.

The English market, especially the London market, is still very energetic. London is a “fashion city” that’s focused on business and boosted by good economic growth rates and a very developed tourist industry, though it’s difficult to predict the impact Brexit will have. As for the German market, we can say that it maintains a correct average without being dynamic. And sometimes we forget that Benelux is an interesting, attractive market. And finally, the Southern European markets have suffered and continue to suffer.

What are the growth vectors and markets for the future? And again, what are their specific characteristics?

First of all, we can’t get away from e-commerce development. Fashion items are the top products sold on internet today. The world has become inherently multichannel. Consumers can easily keep going to the multi-brand shop in their neighbourhood, continue to visit the single brand store on the rue du Faubourg Saint-Honoré or Regent street, and still buy on internet. From now on, you need to be multi and crosschannel by investing in capabilities to make customer services easier. Multichannel operations have the advantage of better spreading out the risks between different distribution channels.

And it’s worth noting that the distance selling concept set up by La Redoute is also a good opportunity for brands. As far as tomorrow’s markets, I can’t answer, since there are no hard and fast laws. Each brand should be considered according to its identity and financial capacities. We can’t use a grid to determine which brand should enter which market. In each circumstance, each brand must be analyzed separately.

How do contacts with intermediaries in the sector (agents, showrooms, retailers, etc.) function and develop?

The role of retailers has been shaken up in recent years. Before, the profession within the industry was relatively traditional. Now retailers are in competition with numerous players, to the extent that the profession has almost disappeared in certain countries. Agents, however, remain indispensable intermediaries. They’re very important partners for brands and for us. It’s essential for brands to attract and convince good agents since, in the case of the best agents, they are the ones who choose the brands they represent. An agent’s quality and reliability are fundamental. Agents possess a thorough understanding of the market. That’s key since selling remains a local act. You have to realise, for example, that an agent who has good results with well known American brands can’t be a good match for small French brands. Certain styles are successful in certain countries while others are not, but it’s hard for me to explain which ones and why. Success is explained by a combination of factors, so choosing the right agent really plays an important role. Speaking of this, we are very happy to be a partner for the Agents & Brands Platform started by the Fédération, which has the goal of helping fashion brands find the best international partners (such as agents).

To conclude, I want to insist on the importance of social media today. Brands must be in absolute control of what is said about them on these networks. I’m not talking about the brand’s website and Facebook page. We’ve seen that just one negative opinion about a brand on social media can harm that brand’s reputation and image. You have to control these opinions or quickly correct them. This situation should not be taken lightly.