Bexley - French Shoemaking Institution

Bexley: A French Shoemaking Institution

Founded three decades ago by Eric Botton, Bexley has established itself as a prominent name in the French shoemaking industry. Despite having no prior experience in the footwear sector, Botton created a brand that has become synonymous with quality and affordability. As the president of the company, he has overseen its growth, which included the acquisition of Bexley by LBO France in December 2017. This acquisition brought in Bruno Luppens, the former CEO of Lacoste, as the new chief executive, signaling a new chapter for the brand.

Current Operations

Bexley operates 15 retail outlets, with 14 located in France and one in Belgium. The distribution of these stores includes three in Lyon, where the brand originated, seven in Paris, and one each in Annecy, Marseille, Aix-en-Provence, and Nice. The store in Belgium is situated in Brussels. All these outlets are company-owned, which is a reflection of Botton's commitment to maintaining control over the brand's identity and quality.

In terms of financial performance, Bexley boasts an impressive annual turnover of €35 million, with over 250,000 pairs of shoes sold each year. The brand's product range includes casual and dress shoes, shirts, pullovers, belts, and various accessories, catering to a diverse clientele.

Unique Selling Proposition

Bexley's unique selling proposition lies in its exceptional value for money. The brand offers year-round discounts on all products, allowing customers to purchase items individually or in packs, with the latter option providing even greater savings. By developing all products in-house, Bexley can respond to customer needs while keeping prices low. The company prioritizes sourcing premium raw materials, ensuring that each product reflects high quality. This positioning allows Bexley to appeal to men seeking luxury footwear at competitive prices.

Global Expansion and Target Markets

Bexley currently has over 60 selling points worldwide, including locations in France, Belgium, Morocco, Tunisia, and Switzerland. However, for this marketing strategy, the focus will be on expanding the dress shoe segment. After analyzing data from Comtrade, four potential target markets have been identified: Japan, Germany, Sweden, and Morocco.

Japan stands out due to its strong interest in dress shoes, evidenced by the presence of established brands like JM Weston. While the competition is fierce, the Japanese market is characterized by a strong purchasing power and a culture that values quality. However, logistical challenges arise from the geographical distance.

Germany, being geographically close to France, presents an attractive market for Bexley. The country has a solid purchasing power and a culture that aligns closely with France, making it relatively easy to penetrate. However, the dress shoe segment only constitutes 20% of the overall footwear market in Germany.

Sweden, with its high purchasing power and English proficiency, also emerges as a potential market. However, cultural differences, particularly regarding footwear usage during winter, may pose challenges.

Morocco is an appealing choice due to its strategic location, lower labor costs, and a growing consumer base willing to spend on dress shoes. The local market, with its 32 million inhabitants, presents significant demand for affordable yet stylish footwear.

Market Analysis of Morocco

To evaluate Morocco as a potential market for Bexley, several factors must be considered:

• Political: Fitch Rating of BBB, Coface Country Risk rating of A4, and a Transparency International ranking of 90 out of 176.
• Economic: The leather shoe industry is a crucial component of Morocco's consumer goods sector, with a significant increase in investments.
• Social: Rising income levels are enabling consumers across various demographics to spend more on clothing.
• Technological: The company may face challenges related to counterfeiting.
• Legal: The leather footwear sector has minimal regulations aside from import duties, though issues such as corruption and inefficient administration persist.
• Environmental: Initiatives like the Environment Upgrading Strategy are in place to promote sustainability.

The average wage in Morocco is low, providing an opportunity for Bexley to maintain a cost-effective labor force. In contrast, Japan, Germany, and Sweden have higher wage levels, which could impact operational costs.

Competitor Landscape

Morocco's footwear market is competitive, with many local manufacturers producing inexpensive leather shoes. Distribution occurs through various networks, including specialized superstores, branch stores, and independent retailers. The average Moroccan consumer often bases purchasing decisions on price, making Bexley's low-cost offerings particularly appealing.

Market Positioning and Strategy

Bexley's positioning in Morocco will mirror its strategy in France, focusing on affordable yet high-quality dress shoes. The target audience will include local consumers and tourists, particularly men seeking luxurious footwear at reasonable prices.

Entry Strategy

Given the market dynamics, franchising emerges as the most suitable entry strategy for Bexley in Morocco. This approach allows for overseas expansion with minimal investment while leveraging local franchisees' market knowledge. However, challenges such as finding the right franchise partners and navigating cultural differences remain.

To ensure the success of the franchise, Bexley must offer ongoing support, including training and resources, while communicating the brand's core values. The franchise location will be strategically chosen in Casablanca, known for its high population density and purchasing power.

Marketing Mix Adaptations

In adapting to the Moroccan market, Bexley will implement the following changes based on the 4Ps of marketing:

Bexley can leverage online marketing strategies, including social media campaigns tailored to the Moroccan audience, to generate buzz and drive foot traffic to the new store. Direct mail to existing customers in Morocco can also help foster community engagement and brand loyalty.

Conclusion

In conclusion, Bexley represents a compelling case study of a French shoemaking institution poised for international expansion. With a strong foundation in quality and affordability, the brand is well-positioned to penetrate the Moroccan market through a strategic franchising model. By adapting its marketing mix to cater to local consumer preferences and ensuring robust support for franchisees, Bexley can successfully establish its presence in Morocco and continue its legacy of excellence in shoemaking.

References:

• Comtrade. (2023). International Trade Statistics.
• World Bank. (2023). Global Economic Prospects.
• Transparency International. (2023). Corruption Perceptions Index.
• Coface. (2023). Country Risk Assessment.