The Seitans have been involved in the fashion business for around 18 years and they own four stores in Romania, three mono-brand ones, Brunello Cucinelli, Canali and Moschino, and a multi-brand one, Distinto.
“At the beginning, we were skeptical about the results of Brunello Cucinelli store since it is a discreet brand, addressing connoisseurs. After the first months, though, we realized it has a loyal public in Romania, with clients who do not seek other brands,” states Carmen Seitan, who is involved in this business together with Sorin Seitan, her husband.
Brunello Cucinelli’s clients are businesspeople who prefer the relaxed clothes of the brand at evening or during holidays. The Italian brand mainly has casual outfits, which may cost as high as EUR3,000.
“A loyal client comes to spend even as much as EUR10,000 per season, EUR20,000 per annum. There are clients who come and ask for a complete look or even more. This is a business where we have as many as 100 clients”. The average cash receipt stands at EUR10,000 per annum.
Brunello Cucinelli store fills a 140-sqm space, namely the two floors of a historic building. Investments in building renovation and space refitting amounted to around half a million euros.
As a matter of fact, Brunello Cucinelli clients are the ones spending the most in Bucharest, compared with Moschino clients, spending EUR3,000 per year, Canali clients, with EUR4,000-5,000, or Distinto ones with EUR2,000.
“Distinto has a different business model, the store sells footwear and accessories, so that prices are lower. It’s a business with as many as 1,000 clients per annum. The other brands have hundreds of clients per annum”.
Prices in each of the stores are in line with those of Paris and Milan, according to the entrepreneur, but loyal clients enjoy discounts, so that they get better prices in Romania than abroad.
Seitan family’s businesses are built with Romanian entrepreneurs, and they account for 90% of clients.
Despite the crisis, Seitan family in the autumn of 2012 opened Brunello Cucinelli store, the latest project of the family. As a matter of fact, this year has no new project in store, but only a revamping within Distinto, which is to host a Le Silla shop in shop.
The family’s first contact with domestic fashion was not linked to the luxury market, but to the mass-market one. The shift to the luxury market was made as competition had tightened on the arrival of a rising number of new brands in Romania.
From the very moment they decided to tap the luxury segment, the Seitans chose Calea Dorobanti, inhabited by persons with above-average incomes. All the mono-brands are opened in owned buildings and Carmen Seitan says the business is thus sheltered from any possible problems with owners.
“In 2014 we do not want to open any new store, we want to keep the businesses in the pattern of last year, when all the stores were profitable. We did not have to close down any unit, we are constant and prefer to have the same brands as it takes several seasons to gain clients’ loyalty,” says Seitan.
In 2013, Seitan family generated revenue of above EUR5 million as Moschino sales added 2-3% and Distinto sales dropped at a similar pace. The advance came from Brunello Cucinelli. “We budgeted a 10% increase for Brunello this year as well, but no more than that as the store will reach maturity”.
Carmen Seitan says sales operated during the discount period dwindled in 2013 year-on-year, a sign consumption is picking up. “As a rule, electoral years were good for the business, particularly for men’s wear, but it is hard to predict what will happen this year”.
(English version by Catalina Apostoiu)