3 questions for ... Régis Pennel - President and Founder of L'Exception
Three questions for Régis Pennel
Reorganisation, a change in communication style, and, above all, the long-term dominance of digital technology – the President and Founder of L’Exception talks about Covid-19’s impact on his designers concept store.
How did you rethink your organisation to contend with the Covid-19 crisis?
L’Exception’s website and boutique are very interconnected. This omnichannel system – and then the closing of our Forum des Halles store – forced us, from the beginning of the crisis, to rethink our internal processes so that the site could perform autonomously, only linked to our stock in the Dijon region. In short, we had to unplug everything connected to the retail store. It was a bit like cutting off a leg! At the same time we were adapting operations, we had to reassure our clients who at first were afraid of being contaminated when they received packages. We had to remind them of the measures we had set up for receiving packages: no signature required, the package left in front of the door, etc. To eliminate risks, we regrouped deliveries with Colissimo and Chronopost, whereas we normally use six or seven intermediaries for shipping. And in our 1,000 m2 warehouse, which is managed by a contractor, every safety measure was put in place for the five people that work there. And finally, we extended the return timeline from 14 days to “when our clients want”; we quickly understood that, when considering online purchases, consumers hesitated at the idea of maybe having to go to the post office to return products.
These initiatives didn’t prevent sales falling in March. We saw the situation pick up again in April as soon as the lockdown end date was announced. It was as if people, seeing the end of the situation, thought “Well, beginning 11 May I’ll be going out again, so I’m going to buy shoes and clothes.” Even so, e-commerce didn’t compensate for the lack of sales in the boutique, especially since March and April are usually strong with people shopping just for pleasure, not because of sales and reduced prices. Remember that internet consumers are looking primarily for good deals.
Did you also have to adapt your digital communication for the situation?
Of course, we had to adapt our message. We chose to refocus our newsletters on our designers; we interviewed them about how they were handling the crisis, how they were working and being creative during this unusual period. We shifted slightly away from the product and sales angle for more meaningful content, while, of course, remaining true to our DNA. It’s this coherence that motivated us, unlike many other brands, to not share advice about wellbeing or books and TV series. We didn’t feel qualified for that, and it seemed like that arena was full and nobody would pay attention to us. And finally, still trying to give meaning to our work, we commissioned masks for the Fondation Hôpitaux de Paris – Hôpitaux de France. Through these sales we’ve contributed €3,000 to the Foundation. We wanted to continue fueling this energy, so since Monday 4 May, when customers shop they can make a donation to, for the moment, the Fondation Hôpitaux de France.
Have you learned anything from this crisis?
The crisis forced us to simplify our logistics. Why, in fact, have seven shipping options when we can work efficiently with two? Trying to provide service, we add layers and layers to management and make it complicated. We also saw that we could work remotely with smaller teams and less stress without compromising efficiency. It’s a new way to approach our organisation. We’re also going to permanently revise our 14-day deadline for returns and extend it to 60 days. We were strict about that timeframe but we’ve realised that the longer period is a sales tool and absolutely manageable.
Of course, and here is the essential point, the crisis makes us think about the future of retail. Boutiques are about pleasurable experiences and contact. But, when you think about the measures to implement in the fashion sector – the staff must wear masks, social distancing, closing every other fitting room, putting clothes in quarantine after they’ve been tried on – that pleasure is going to be reduced, even nonexistent. Why should you go out, risk crossing paths with other people, and take public transport? It’s much simpler to buy online. This change in behaviour necessitates some in-house thinking, even if the boutique now only generates between 20 and 30% of our sales. A point of sales represents significant costs … small stores, especially the multi-brands, that don’t yet have an online store need to get moving. And, given the urgency, they may have no choice but to go to marketplaces like Amazon. So yes, in the end this situation may benefit the big names. The smaller ones need to reinvent themselves to continue to grow.