Global Achievements: A collection of best Success Stories of Retail SMEs in International Markets – Spain
Lurbel Precision Garment
Category – Key words
Sport textile, Spain, family business, quality
Who?
Lurbel Precision Garment: Sport textile (cycling and mountain). 40 employees. Ontinyent. 1992.
Website
Abstract
The origins of Lurbel date back to the early 1990s, the original business was focused on manufacturing high-turnover functional hosiery, positioning itself as a benchmark in the sector. The economic situation at the end of the 2000s with aggressive competition from imported textiles together with the entrepreneurial spirit of the family promoted the specialization of the family business as a guarantee of success and differentiation. The new course was set in the sports sector. The diversification of the catalogue and the consolidation of the project from then on would go hand in hand with R&D and differentiation in the original idea, executing the process in an integral way to guarantee an optimal product. Sport textile is a “very brand-oriented” market in which it is difficult to open a gap in new countries due to the investment that this requires. According to Lurbe: “We are a family business of three brothers who are fighting against multinationals. It is very difficult to enter suddenly, that is why we focus first on the national market and now we are leaving, but we are going country by country”. The high specialization of the company makes it difficult, according to Lurbe, to stand up to other brands only through price, which is why they are committed to quality and R&D in their fabrics. For this reason, he highlighted that they have detected markets such as the Swiss or the German that, thanks to their greater purchasing power, “look less at the price and give more importance to quality. That makes it easier for us to compete.”
Results achieved
Lurbel is currently operating in 10 countries: Spain, UK, France, Germany, Sweeden, Switzerland, Italy, the US, Poland, and Israel.
Tips to replicate
First focus on the national market and then country by country. High specialization of the company.
Fontestad
Category – Key words
Fruits, Oranges Spain, family business, exportation, distribution
Who?
Fontestad: handling and distribution of citrus. 983 employees. Valencia. From the 50´s. Officially registered in 1984.
Website
Abstract
Fontestad is a family business of recognized prestige in the citrus handling and distribution sector. Currently, the company follows in the footsteps of Don Vicente Fontestad Planells, who founded it as a legal entity on October 1, 1984. The company has not stopped growing since its inception. Going from being a small fruit stand in a market in the 1950s, to becoming a company that currently has 50,000 m2 of facilities and offices in Valencia, Madrid and Perpignan.
Fontestad has a solid export policy offering high-quality products, broad knowledge of the trade, and guaranteed commercial potential to operate in any country in the world.
In addition to the retail activity, Fontestad now has own production of fuits, and it currently links its ability to grow in the field with the increase of its own or controlled management crops in the coming years.
Results achieved
The company, with a turnover of 160 million euros, exports 60% of its fruit to the rest of Europe. Among its list of clients are the large distribution chains.
Tips to replicate
Have a control over the production to guarantee availability of product. Seek for a dominating position in the market.
PORCELANOSA
Category – Key words
Ceramic, floor tiles, Spain
Who?
Porcelanosa is specialised in the manufacture and sale of ceramic and natural floor and wall tiles: handling and distribution of citrus. Over 5000 employees. Villareal. Founded in 1973.
Website
Abstract
The diversification of production and the creation of a unique distribution system, based on the establishment of a network of own stores at an international level, with more than 850 points of sale throughout the world, have been, and continue to be, the pillars of growth of this business holding company with 100% Spanish capital.
Recently, PORCELANOSA Group has increased its presence in places such as Asia, Russia and America. The opening of the showroom in Miami, the introduction of products in strategic areas in Russia and its expansion in Asia with its latest space in the Philippines, are some of the brand’s biggest achievements. These locations that will showcase PORCELANOSA Group’s most outstanding materials in potential markets that will strengthen the company’s international growth.
Results achieved
PORCELANOSA Group is today a major reference in both the Spanish and the International market. Its consolidated position has been built up on values such as innovation and quality, but specially the trust placed in its large human capital, made up of almost 5000 skilled professionals in more than 150 countries and 850 shops, and its concern for its stakeholders and the environment.
Tips to replicate
Count with external experts (Initiative is nowadays the company in charge of the international communication strategy of Porcelanosa). Network of own physical stores.
Uno de 50
Category – Key words
Uno de 50 : Jewellery. 630 employees. Madrid. Founded in 1998.
Website
Abstract
UNOde50 was born at the end of the 90s by a group of designers who decided to create an original jewellery brand. The brand began its activity with the exclusive philosophy of making 50 units of each design, giving rise to the name of the brand. UNO de 50 is authentic for its creativity, unique style, daring spirit and for its 100% handmade production process made in Spain.
One of the main characteristics of the brand is thus the protection of their designs that are unique. Industrial. In Europe, the Property of industrial designs is offered to companies through a single procedure, throughout Europe. But the opportunity to register outside the Old Continent should not be missed either. According to Azulay, CEO of the firm, “In countries like the US or China, where we have a very important part of the market, it is mandatory if you want to succeed.” Currently the firm has 21 registered trademarks in various countries and has registered 83 industrial designs.5
The launch of the new e-Shop at the end of 2014, with a 100% responsive website, allows the customer to connect to UNOde50 from any device. An online, multi-country and multi-language store, uniting fans of the brand with a single click.
Results achieved
Uno do 50 is physically present in 48 countries and, through the online channel, we reach more than 80 markets. Together with a network of 130 own stores in the main cities of the world, the jewelery is also available in some 2,500 points of sale, preserving the philosophy and brand DNA.
Tips to replicate
Take care of the industrial property and protect the designs, even in foreign markets. Online shop.
Tous
Category – Key words
Jewellery, Spain
Who?
Tous : Sale and marketing of all kinds of jewelry and watchmaking objects. Over 1000 employees. Barcelona. Founded in 1920.
Website
Abstract
Tous is present in foreign markets since 2002, when it began to transform its structure to stop being a purely family business. For Salvador Tous, International growth implies not going international as a way of rescuing a complicated situation. In a colloquium organized by ESADE and Deloitte in 2012, he said “you have to go abroad when things are going well”.
The Tous family speaks clearly of the most frequent mistakes when jumping abroad: “We made a book mistake: bet on the three main world markets: the United States, Germany and Japan. We went to these three countries thinking that one would do well for us. It caused us great economic damage, but above all, moral and confidence. We closed the store in the United States and kept the one in Germany and Japan.” Currently, the brand has returned to North America, where it seeks to consolidate its local markets, although it is firmly committed to expansion through the internet.
On the contrary, Tous has been able to stop going abroad in time when it has not been profitable. For example, it has withdrawn from the United Arab Emirates on several occasions, in 2012 it closed its two establishments in the United Kingdom, and it is looking for a suitable local partner to enter China again, a market in which it has made several incursions but from which it has withdrawn, just as it happened in Argentina. The Tous family affirms that, despite not wanting to be wrong again, “you should not be afraid to enter and leave a market.”
Experience tells them that the key to success lies in choosing the local partner. According to Rosa Tous “we are always looking for, and sometimes we simply find a partner, someone who knows the country well so that it is easier to settle, overcome bureaucratic obstacles and learn first-hand about its idiosyncrasies”.
Two other important elements in its internationalization are, on the one hand, the correct choice of the point of sale: Tous is committed to being present in department stores, which ensures association with other brands of recognized prestige and being able to take the pulse of the local buyer casual. On the other hand, the different segmentation in the local market: while its products belong to a higher range in Latin America than in Spain, in Japan they are aimed at a lower segment.
Results achieved
The jewellery firm Tous has an international presence in many parts of the world. The company has opted to grow in markets in which it can consolidate itself, and to abandon those that are not mature enough, to return to them only when circumstances change. Tous sell about 50% of its production outside of Spain, and with forecasts of growing 10% more.
Tips to replicate
The firm’s internationalization strategy is unusual: they back down if things are not going well. Find a local partner.
ALE-HOP
Category – Key words
Bazaar, cow, variety store, souvenir, tourists, franchise, Spain
Who?
Ale-Hop, from Clave Dénia SA: Handling and distribution of citrus. Over 1500 employees. Ondania. Founded in 2001.
Website
Abstract
For many years, Ale-Hop focused on the domestic market, with the permission of its franchisee in Portugal (which manages about 40 shops). However, many things have changed after covid, and among them, the spirit with which the Grimalt family company faces its internationalization.
Historically, Ale-Hop has dedicated itself to “selling fun things to tourists”. However, the pandemic left the company without stores during the closure, and without tourists once they reopened, with mobility restrictions. Ale-Hop had to change the business model and began to bet on neighbourhoods and less touristy cities, with the local buyer in mind. And for this, the product mix has changed, introducing, for example, small appliances. They also launched an online store, even if they admit to being still behind in this market.
Ale Hop is owned by the Grimalt family. For them, a golden vote was agreed upon for managing the company in the event of disagreements. “The family protocol has to be done, but in order not to use it, common sense is more important than what is in writing,” Grimalt says. “The councillors told us to make a 200-page book and in the end, we did the opposite, just three or four pages.” It contains the golden vote. “When we brothers want to modify or include something in the protocol, it is necessary that all the brothers agree. If not, that golden vote is used, which is two people, the first worker of the company and the company’s lawyer who have to agree to vote as one”. According to Grimalt, that formula has never been necessary to apply.
Results achieved
The company, which already has stores throughout Spain and in eight other countries, sold garments worth 7.5 million euros in 2021.
Tips to replicate
The golden vote to take decisions in critical situations in a family business. Adaptability to environment. Model of the mix of franchises and own shops.
Koker
Category – Key words
Clothes and accessories, Low-cost fashion, local production, franchise, Spain
Who?
Koker, from Espigol Eurogroup : Clothing and accessories franchise for men and women. Toledo. Founded in 2014.
Website
Abstract
The groundbreaking concept of this brand lies in what they have dubbed the ‘total look’, an alternative to buying a complete outfit without having to think about how to combine the garments. Koker is committed to fashion at an affordable price with Designs from Spain, France and Italy, which have nothing to envy to the high fashion firms. Koker has created a business model that allows its owners to offer the possibility of franchising the brand in an affordable and accessible way.
This concept of low-cost quality clothing allows franchisees to reach different segments of the population by age and style with investment advantages, simplicity of operation and management aimed at success.
In 2018, its owners went a step further to break down all the borders that may exist throughout the continent and the entire world and launched a virtual store. In parallel, they still work on their expansion with physical shops in new countries.
Since the COVID crisis began, the firm has opened 24 stores located both in Spain and abroad. “The current economic crisis has made better premises, conditions and locations available to Koker. All this, together with a solid business base, has allowed us to continue growing and betting on the expansion of our brand in the world”, says Priscilla Ramírez, founder and CEO of Koker.
Results achieved
So far, Koker is present in eight countries with 34 stores. Among the countries are France, Portugal, Mexico, Panama, Costa Rica, Belgium, Switzerland and Romania. They are now targeting Chile and Egypt.
Tips to replicate
Positioning on the market with a USP. Model of the mix of franchises and own shops.
Net Padel & Tenis
Category – Key words
Clothes and accessories, Low-cost fashion, local production, franchise, Spain
Who?
Net Padel y Tenis: Padel and tenis sport items, raquests, clothes and accessories. Jaen. Founded in 2013.
Website
Abstract
Net Padel y Tenis was born as a different store, a comfortable place for shopping, offering the best brands on the market with everything you need to practice paddle tennis, tennis and table tennis, with design, quality, and Best Price Guaranteed. The shop also host a permanent exhibition of sports photography and a padel and tennis museum, where you can learn even more about the history of these sports.
Padel is experiencing a new boom. However, Joaquín Bautista, retailer of Net Padel & Tenis thinks that this will be less than what some retailers think. There is a current “euphoria” thanks to the good sales registered in the last two years, especially in the first year of the pandemic, in which “we returned to sales records comparable to the best moments of 2007 and 2008”, recalls Bautista. This effect would be leading, in his opinion, to the fact that “currently a customer who wants a shovel, asks for it in several stores, the market interprets that more shovels are demanded and 50% more than what was sold in 2021 is being programmed.” This practice, he points out, is leading to “many stores programming more than they can afford.” And he regrets that they continue betting on the trump card of lowering prices “when demand grows”, stating that “it doesn’t make any sense”.
That is why Net Padel & Tennis has redoubled its efforts to grow internationally, especially in Latin America, where “price wars are not so established”. Last year, 21% of the company’s turnover corresponded to sales made at the branch it has in Argentina, from where it sells to Paraguay, Chile and Brazil thanks to its online shop.
Now it is looking for an investment partner that allows the company to promote its internationalization, as well as its online commerce. “We want to grow, but in an orderly way. We need to expand staff, invest in the web, in positioning, in advertising, and for this we need a partner to accompany us in the project”, concludes Bautista.
Results achieved
The Jaen business Net Padel & Tennis has set out to promote its internationalization after it accounted for 21% of its turnover in 2021. To do this, it is currently looking for an investment partner to accompany it on its adventure, especially in South America.
Tips to replicate
Cared and objective analyse of the current market situation. Seeking for international partners.
M2Malletier – luxury fashion
Category – Key words
Clothes and accessories, Low-cost fashion, local production, franchise, Spain.
Who?
M2Malletier: Luxury handbad brand. Barcelona. 4 employees. Founded in 2012.
Website
Abstract
M2Malletier comes from the design duo Melissa Losada and Marcela Velez, who met one another at Parsons School of Design in New York City. They envisioned a handbag that preserved the two designer’s colombian roots while transforming traditional leather goods into an intelligent, extraordinary piece for collectors of the remarkable and unexpected. The bags of the young designers became internationally in 2016 when, in the middle of the concatenation of fashion weeks, some fashion editors were surprised with the proposals worn by several guests at the parades -Kate Bosworth or Poppy Delevingne-, signed by M2Malletier.
“Since what we want to transmit is an emotion through the visual, we decided to use much more Instagram. It is the way we best contact our customers. It is important that the images and messages that you want to communicate are consistent with the level of the brand and its target market”, Vélez indicates. Regarding how they have managed to position themselves in an exclusive segment in such a short time (they started in 2012), she comments that the most important thing has been to create a different product that did not exist in the market, associated with a top image and a sales strategy based on the model of not selling to sell, but “less quantity, but more quality”.
Results achieved
After only 2 years, M2Malletier had over 60 points of sale, among which the most sybaritic shopping references stand out, such as Bergdorf Goodman in New York, Harvey Nichols in Riyadh, Santa Eulalia in Barcelona or Tsum in Moscow, as well as the online luxury fashion sales platform Net- a-Porter. In 2017, they launched their online sale website. M2Malletier now has a presence in more than 15 countries, 65 retailers that include the most important luxury stores. According to the latest figures revealed, the flagship sells more than 2,000 bags a year.
Tips to replicate
Luxury segment, quality. Presence in fashion fairs.
Bodegas Torre Oria
Category – Key words
Wine, cava, appellation of origin, Spain
Who?
Bodegas Torre Oria: Cellar and wine retailer. Requena. 40 employees. Founded in 1897.
Website
Abstract
Torre Oria was Founded in 1897 by the Oria de Rueda family. At the end of the 19th century, the Oria de Rueda family successfully dedicated themselves to the silk business in Valencia. Years later, the family decided to move their business to the city of Requena, 60 km away. towards inland Valencia. With the decline of the silk industry, they decided to convert their business into the world of wine. Nowadays, it is one of the most prestigious wine and cava wineries in the Valencian Community. It stands out for being the first, located outside Penedés, to produce under the Cava Denomination of Origin. Its wines are attached to the denominations of origin Valencia and Utiel-Requena.
For Pablo Aranda, financial director of Bodegas Torre Oria, “Determining the company’s mission is vital to carry out a correct internationalization given that it is a strategic point for any company. Knowing the markets with the highest consumption in your sector is essential in order to establish a schedule for a correct internationalization, focusing efforts on countries with consumption potential”.
In his opinion, the paths to successful internationalization are centered on a good commercial effort, which is obtained mainly with good prospecting by the entire sales team. “Knowing the needs of consumers, in our case, is essential to understand our customers.”
Results achieved
Torre Oria focuses part of its strategy on consolidating its presence in the international market, where it is already present in more than thirty countries that represent more than 75 percent of its sales, as well as expanding into new markets.
Tips to replicate
Prospection and understanding of the foreign customer. Value of the denomination of origin.
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