Not having debt has allowed us to completely rebuild the business and find a way to reinvent ourselves’, said Adriana Domínguez, CEO of Adolfo Domínguez, at the most recent session of Matins ESADE, sponsored by Bluecap. The Matins ESADE sessions are a forum for reflecting on business organised by ESADE Alumni and held at ESADE, where executives from renowned companies lay out their vision of the sector and the company they lead.
In her talk, Domínguez discussed the transformation the company has undergone in recent years and its current growth, including online sales. ‘Our online sales have grown 70%’, she explained, attributing the success to the pick-up and purchasing facilities, good logistics, and the brand’s meticulous tailoring and pattern work.
Foreign markets and sustainability
According to Domínguez, in recent years, the company has opened markets in Australia and Russia, ‘markets that had resisted’ previous efforts, and the firm’s operating income increased 153% in the 2018/19 fiscal year. She also noted that ‘most of our stores are already outside Spain’ and that ‘in the last two years, our stock values have trebled’.
Today, Adolfo Domínguez has operations in 23 countries and the brand has 391 sales outlets, figures that have varied in recent years. ‘Retail is constantly changing, so strategies cannot last forever, because the relationship with the brands and intangibles is changing’, the CEO continued.
The brand, which has also focused on sustainability, does not use leather, suede or fur in its collections. Moreover, today, 80% of its accessories are vegan, Domínguez explained. ‘We are trying to boost our line of accessories, which is where brands can become stronger. We are seeing 28.8% annual growth in this sector’, she stressed. She also emphasised the desire to promote linen, ‘making it iconic’.
Attracting new customers
Domínguez said that ‘the campaigns have worked’. Referring to the company’s future, she explained that ‘it lies in attracting new customers’, whether through social media or other channels. ‘We have begun to reach out to consumers aged 25 and over, with the differential that we offer more formal, quality clothing.’
The CEO reviewed the company’s history, which began in the 1950s, with a tailor shop run by her grandparents called El Faro. In 1976, it became Adolfo Domínguez, as it is known today, although originally it only sold men’s clothing and did not branch out into women’s clothing until 1986. ‘Adolfo Domínguez and my father dressed the Spanish transition’, she said.
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