For 2014, the company has estimated a similar revenue growth and shareholders plan to open stores both in Romania and Great Britain (London) and Germany (Munich or Berlin).
“We suffered a little in 2009, but in a year we realized what was happening and adapted,” says Alin Batlan, a shareholder in Musette producer of shoes, bags and accessories, which owns two plants in Romania, in Bucharest and Husi.
He adds consumers’ behavior has changed during this period, with the purchasing decision being no longer influenced only by the brand. “Musette, which focuses on design and comfort, stood to gain”.
The company’s revenue declined by around 5% in 2009, the only decrease registered by the company during the crisis. Revenue doubled during the 2008-2013 period on brand development in Romania and abroad.
The company now holds 28 stores, of which 19 domestically and the rest abroad. “Our three best stores are in Romania, but the stores we own abroad also fare well”.
The store located in the Austrian capital is the latest to be opened abroad. The unit is owned directly by Batlan family, while other units are held in a franchise. “We want European units to be directly opened by us in the future”.
Alin Batlan says he receives applications both from Romanians settled abroad and from foreigners, but shareholders have decided to be highly selective. “On far external markets we choose the franchise system as one cannot understand those markets fully and cannot realize how good a store space is”.
Musette’s plans do not stop here, with at least three openings being scheduled for this year in Romania and two abroad. “We want to be an international brand in 2020, with around 200 stores, most of them abroad. We will also open in Romania, in medium-sized cities such as Sibiu, Braila, possibly Arad, but the domestic market’s potential is limited”.
Musette addresses above-average income fashion lovers as a pair of shoes costs over EUR100.
In this context, the company this year targets a revenue increase of at least 20%, supported by a series of stores opened or revamped last year. Last year, Musette opened the first Musette Man store in Promenada mall of Bucharest and Alin Batlan sees the segment as having high potential.
Recently, the company has developed an outlet and a showroom at its central headquarters and an online store. The showroom is the place where the company’s employees interact more with consumers, test out new concepts. The online store is currently available only in Romania, but is due to be expanded at European level.
Alin Batlan specifies that both he and his brother and the latter’s wife, Cristina Batlan, the three stakeholders in the company, have always known what the direction of the business should be. Thus, in the boom years, they decided to move a plant from Bucharest to Husi. “Workforce is stable there and also well trained. The leather goods plant remained in Bucharest”.
Musette imports raw material, with 90% of it coming from Italy. “We’re permanently seeking new materials, new textures, the best suppliers”.
Musette product prices have remained relatively constant in recent years, according to Alin Batlan, while raw material prices have surged by 50%-60% in the past two-three years. This has happened as luxury goods consumption has soared. “This is putting high pressure on raw material prices, but we managed to offset this by economies of scale”.
The company’s profit was not hurt, with EBITDA standing at RON9.4 million in 2013.
The entrepreneur says he’s not considering opening a new plant, but he has constantly boosted the production capacity of the Husi unit lately.
Musette has a total number of 395 employees. Alin Batlan says the company has difficulty in finding employees for the central headquarters and retail, a reason why it prefers to take inexperienced people and train them inside the company.
Batlan also says the three shareholders have created a middle management team for a better coordination of the business.
(English version by Catalina Apostoiu)