Starting this semester, Cia Hering begins a large expansion project with the objective of doubling the number of “Hering Stores” in the country's main cities, intent on reaching 325 points-of-sale by 2010.
The company was founded in 1880 in Blumenau, SC, and it is the largest clothing store franchise in Brazil, always focused on fashion trends and retail market demands. It is among the 10 leaders in this sector in the country producing on average 3 million pieces per month.
After conducting a series of market surveys, the company identified great growth potential, since the brand is recognized by about 90% of the consumers from every social class.
Hering should grow 25% per year over the coming years. PUC (children) and dzarm. (teens), other brands in the group, should grow 6%.
This growth is founded on two pillars: price repositioning, making the brand more accessible for classes B2 and C, and the introduction of credit operations at the Hering Stores through November's launch of a credit card in partnership with HSBC bank and the Losango finance company. The goal is to issue 175 thousand cards by the end of the year and 970 thousand by 2010.
After strengthening the Hering brand through the expansion of distribution channels and innovations in product design, the company has invested in its own stores and franchises.
Sales participation reached 47% in the second quarter of 2007, compared to 37% in the same period of 2006. The company expects m2 earnings at the stores to increase 35%.
Today, there are 160 Hering Stores, and this number should reach 181 points-of-sale by the end of this year and 325 in 2010, with a focus on capitals and cities with more than 200 thousand inhabitants.
The company has also just concluded an initial public offering that brought in R$ 311.7 million in Bovespa's Novo Mercado. Foreign investors grabbed 63.11% of the shares, domestic investment funds 25.44% and individual investors 8.27%.
Brazilian Textile and Apparel Industry Association
marketing@alchempro.com
