CEO Aurora fashions talks growth
By FashionUnited
loading...
Fashion
When
I joined Aurora (then called Mosaic) in September 2007.
The main change since then is that we now have a settled shareholder structure and have solid financing in place, which has allowed us to focus on running the business rather than worrying about the implications of the challenges faced by Iceland's financial institutions.
More recently, appointing MDs into each of our businesses was a significant shift in our approach to managing the business. We have given accountability for the brands' performance to the MDs with less being controlled centrally by the group.
The outsourcing of shared services, announced in January, was part of this as the brands now manage their own contracts whilst keeping the benefits of scale through the brands sharing providers and resource.
From a customer perspective, the biggest change is the amount of control that the customer now has, as she is able to shop brands across all channels and is able to research and compare exactly what everyone has to offer. We can no longer think of 'bricks' and 'clicks'; it is about satisfying the customer's needs, however she wants to shop.
You've recently announced that Karen Millen will become an independent entity from Aurora - why did this decision come about?
Karen Millen reached the size and scale where it requires its own funding and dedicated expertise to fulfil its ambitious growth plans. The time was right and independence allows Aurora management team to focus on the other brands which have more similar strategies.
Aurora owns, develops and manages the performance of its brands so if, as and when other brands reach the point where independence is the right thing for them, we’d certainly consider it.
What are the key changes you've seen on the high street - i.e. why it's seen this remarkable boom?
The main thing that has changed on the high street is the incredible growth in retail space over the past few years. It's not only the amount of space that has grown but the size and type of space available.
The last few years have also seen huge growth in the value sector, across general retail and fashion. Whilst this has shifted the dynamics of the market, we are now seeing a return to an environment where it is not all about price but where the customer is willing to pay a little more for something really special, that offers exclusivity and quality.
What do you think the UK high street retail market offers that others don't?
The choice of products available to the fashion customer on UK high streets is huge compared to most other markets.
And what percentage of the whole is made up through ecommerce, and how much is accounted for by overseas market?
Aurora can confirm that E-commerce represents over 10% UK sales and that over 35% of the group's sales are from outside the UK.
How do you see the future of high street retail?
I believe that high street retail will continue to be incredibly competitive and the barriers between stores and online business’ will completely disappear. Keeping focused on satisfying your customer will be key!
How are you looking to develop Aurora in 2011?
Our main growth strategies are focused around continuing to develop our cross-channel business and on growing internationally.
The Aurora brands will offer a 90 minute delivery service for web orders from next month and as well as continuing to deliver orders internationally (currently to 26 markets), we will be launching our first local language websites in Europe this year.
We will continue to expand our international business with 81 openings planned (excluding Karen Millen) for this year, including new markets in South America.
Image 1: Oasis S/S11
Image 2: Warehouse S/S11