Company Profile: Desigual
Overview
Desigual is a renowned fashion retail company known for its distinctive designs and vibrant collections, emphasizing creativity as a core brand element. Founded in 1984 by Thomas Meyer in Barcelona, Spain, Desigual maintains its headquarters there and operates globally, with offices in New York, Tokyo, and Hong Kong.
Business Operations
Desigual functions as a multi-category, multi-channel entity. It offers six product categories: women's, men's, and children's clothing, accessories, footwear, and sportswear. The brand connects with customers through ten distribution channels, including retail stores, outlets, franchises, department stores, e-tailers, flash sales, and travel retail. With over 215 stores in more than 107 countries, Desigual commands a significant presence in the global fashion market.
The company boasts an advanced logistical framework comprising three logistics centers in Gavà and Viladecans (Spain) and one each in New Jersey and Hong Kong, facilitating the handling of 55 million garments annually. This network underscores Desigual's commitment to operational efficiency worldwide.
Financial Performance
In 2022, Desigual reported a turnover exceeding €379 million. Despite a 10% sales drop, the company doubled its net profits, illustrating robust management and operational efficiency. There was a notable 15% growth in performance metrics from 2021, showcasing resilience in financial management.
Leadership and Management
Thomas Meyer, Desigual's founder, plays a pivotal role in the company's strategic direction. Supported by a comprehensive executive team, including Chief People Officer and Chief Merchandising Officer, the leadership focuses on product development, global expansion, and innovation.
Sustainability Initiatives
Desigual has launched a Strategic Sustainability and CSR Plan from 2020 to 2023. The company achieved producing 55% of its garments sustainably by 2022, aiming to source all cotton sustainably by 2025.
Market and Expansion
Desigual engages in creative collaborations and has integrated five startups into its Awesome Lab innovation program, promoting technological advancements and new fashion trends. This initiative aligns with its commitment to environmental and social governance. Desigual's Mediterranean roots guide its fashion perspective, ensuring leadership through authenticity, creativity, and sustainable growth.
Competitor Profile
Key Competitors
Inditex
As the world's largest fast fashion group, Inditex encompasses brands like Zara, Pull&Bear, Bershka, and Massimo Dutti. It operates over 7,200 stores in 93 markets globally, with a reported revenue of €35.95 billion in 2023. Headquartered in Arteixo, Spain, Inditex is notable for its rapid response market strategy, transforming designs swiftly from concept to store shelves.
American Eagle Outfitters (AEO)
This company has a notable presence in the US, Canada, Mexico, and Hong Kong, with over 1,000 stores globally. AEO stands out for high-quality, on-trend apparel and its emphasis on broad market accessibility and sustainability.
PVH Corp.
PVH Corp. owns brands like Tommy Hilfiger and Calvin Klein, reporting a $9 billion revenue in 2022. Based in Manhattan, New York City, PVH markets globally, focusing on sustainability and ethical practices.
Levi Strauss & Co.
An iconic denim brand, Levi Strauss & Co. generated $5.764 billion in 2021, with 2,800 company-operated stores worldwide. Its global presence and rich heritage make it synonymous with denim.
GUESS, Inc.
Known for fashionable apparel and accessories, GUESS reported revenues of $2.69 billion in 2023, with approximately 1,608 retail locations globally. The brand has a diverse product offering but faces scrutiny over labor practices.
Additional Competitors
Desigual competes with Forever 21, Mint Showroom, Gitman Bros., Vince Holding Corp, Mango, RenuevaTuCloset, Trucco, and Tendam. These diverse players cater to various fashion styles and preferences, forming a competitive landscape.
