2023-09-08 17:00:07
Why would someone who has already crossed a continent to travel to Barcelona take a bus for half an hour to buy a bag in La Roca Village? For Desirée Bollier, chief merchant officer For Value Retail, the key is not to even consider that you are going to do it. “We do not promote the brands, but the destination: When the consumer is relaxed, they start walking, window shopping, and when they walk, perhaps they fall in love with a bag.”explains the executive.
Bollier, visiting Barcelona to coincide with the anniversary of La Roca Village and on the occasion of the presentation of the first report on shopping tourism by the World Travel and Tourism Council, believes that online does not fit into this model. “It is not our space, there are already others who do it well; our business is contact,” he points out. Neither does the word outlet: “If we make decisions with that perspective, they are devalued, we are a category in itself,” he defends.
Value Retail, led by the Spanish José Luis Durán, operates with eleven villages in Europe and China, as well as hotels and commercial spaces in the United States. In Spain, where it operates with La Roca Village and Las Rozas Village, Bollier does not rule out more projects “if the opportunity arises.”
Question: Is Value Retail more of a tourism or retail business?
Answer: They are completely intertwined. We serve companies: that is in our DNA, we would not exist without them. But we would not be driving its growth without the work we do in the field of tourism, with the aim of attracting our client, who is a globetrotter. They are two activities that generate a great economic impact for the Village and the community.
Q: To what extent is the Villages business influenced by the image of a city or a country?
R.: Each of our Villages, and we have eleven, has a large capital nearby, be it Barcelona, Madrid, London, Paris or Milan. That is the premise of our business model. From there, we adapt to each country we are in, we embrace the community in which each Village is located. He mix of brands have to be relevant for the international visitor, but also for the local one. We have to have a global vision, but with local application, that is what makes it authentic. The brands, the design, the architecture… They have to reflect the cultural essence of that country in which we operate.
Q: Years ago, tourists, especially Asians, shopped in Europe mainly because of the price. Now that luxury is equating you, what is your main motivation for shopping abroad?
R.: The experience, the authenticity. Sure you can buy a Spanish brand in China, but how much more fun is it to buy it in Spain? Increasingly, with globalization, having access to everything makes you look for truly memorable experiences. So when someone tells you “I love your shoes”, there is a story behind it. That storytelling it becomes part of your shopping experience.
“I want you to walk through a garden without realizing that time passes; “That’s when you relax and fall in love with a bag.”
Q: But there are not only Spanish brands here. Why would someone come from the United States to buy a Prada bag from The Rock?
R.: Because it doesn’t come with the intention of just buying. The idea is to spend a day outside, without knowing what you are going to find. We do not promote the brands, but the destination: there is a big difference. We promote the bucolic space, the food… I don’t want to go to a food court, I want an authentic tapas restaurant. And you know what? Once the consumer is relaxed, he begins to walk around, window shopping. And when you walk, perhaps you fall in love with a bag, which could be from Prada, Bottega Veneta or Bimba y Lola. Our guests spend an average of four to five hours in the Villages, that’s a long time, a full day. Also, the Village is very long: it is literally as long as the Champs-Elysées. I want you to have empty hands while you walk, so that you don’t know how much you have bought. And we provide this type of service: it’s important that you don’t feel pressured, that you just walk through a garden without realizing that time is passing.
Q.: That can also be done on Paseo de Gracia.
R.: But here there are no cars, there are no beeps, there is no stress. It’s a garden. I love Paseo de Gracia, I am one of its biggest fans, but one thing does not take away the other. We complement each other extremely well.
Q.: What role does the price play when deciding to come to La Roca and not to Paseo de Gracia?
R.: The price changes in consumer psychology depending on the macroeconomic situation. When the situation is good we are a nice to have. When it is bad, we are a must have. So the price motivation changes a lot if you’re feeling a little fair or if you’re feeling rich. We are targeting a customer with high purchasing power, but they also want to know that they are buying at a good price. Does that mean they are motivated only by price? Absolutely not.
“We have made a conscious decision not to define ourselves as an outlet; “If we make decisions from that perspective, they are devalued”
Q: So, now the context favors you?
R.: We have been growing at double digits for the last 27 years, except with Covid-19. When the financial situation is difficult, you still want to treat yourself, but in a smart way.
Q.: They tried selling online during the pandemic, but today everyone is talking about omnichannel. Can the Villages be omnichannel?
R.: It wasn’t online, it was virtual. There is a big difference: we do not sell online, we do not want to. Today we continue to make virtual sales, in China they represent 12% of total sales. It is a program that, when you get used to it, you use it continuously. Recently, a client spent three hours at Loewe looking at a dress. Three hours. And then she decided that she didn’t buy it. Literally three hours later she changed her mind. We put him in touch with a Loewe assistant, they talked and the sale was made, remotely. With this methodology, we have zero returns.
Q.: But with the business that exists online, don’t they sell online because they can’t or because they can’t because of the agreements with the brands?
R.: Of course we can, we can do it all! But I don’t think that space is ours. Amazon, Yoox, Farfetch, they already do it well. Our business is contact.
Q: Which countries are performing better today?
R.: China is going great, we have established ourselves there and the quality of our Villages is enormous. We have European, Korean, Japanese, Chinese, American brands… In Europe, France is also flying. It has the perfect balance, half tourism, half domestic visitor. La Roca and Las Rozas are also doing very well, for different reasons. Madrid has established itself as a very cool destination for South American clients. And La Roca is a tourist destination in its own right. The United Kingdom, for its part, is growing at double digits, but the end of VAT refunds makes it less desirable as a tourist destination. It’s not so much because of the cost, but because psychologically, in some ways you see it as a barrier.
“When the economic situation is difficult, even so, you want to treat yourself, but in an intelligent way”
Q: They have eleven centers. Is there room for many more?
R.: We are not interested in being the biggest, we prefer to be small and the best. What we have done is start to cover other activities with the same level of expertise and attention to detail, such as the hotels in San Diego or the Belmont Park project in New York.
Q: And in Spain?
R.: Maybe. If the right opportunity arises in the right place and according to the economic criteria we are looking for.
P.: During the pandemic…
R.: That’s ancient history! It has traumatized us all, but it is over.
Q.: So it seemed that retail and tourism were going to change forever. What has really changed?
R.: The strength and weakness of the human being is the same: that we forget. We forget quickly to turn the page, but we also forget and do not learn from our lessons. What it has left behind are some macro trends such as sustainability. And when we renovated La Roca, we did so to comply with all sustainable certifications, because we know that customers and brands will choose responsible businesses. They will choose businesses that grow, but with growth they can be proud of. Another factor is cultural relevance, authenticity, which is very important for new generations.
Q: Why don’t you call yourself an outlet?
R.: We have made a conscious decision not to do so. Because if we define ourselves as an outlet and you have never been to a Village, what comes to mind? We are a category in itself. Of course, by contract, brands have to have a minimum discount, but I don’t want it to be the driving force of our communication, human resources, marketing… Because if you start to see it from that perspective, then all decisions become devalued.
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