Global Fashion Brand DeFacto Will Grow in the European Market with a New-Generation Franchise Model
Global fashion brand DeFacto delivers its products to fashion lovers across 5 continents with a total of 500 stores in 93 countries and its e-commerce channels. Serdar Ersoy, DeFacto General Manager of Alternative Sales Channels & Business Development, who attended the MAPIC Trade Fair, said: “By growing rapidly in Europe, we have successfully established a presence in 12 European countries in 2 years. With the new-generation franchise model we have developed, we move forward together with our partners end to end, from the project phase to sales, and we are strengthening this presence with our stores and business partners. In this way, we are targeting 300 percent growth within 3 years.”
Türkiye-based DeFacto, which takes strategic steps toward its globalization goals with its “Accessible Fashion” vision, continues its operations without interruption today with more than 500 stores and e-commerce channels in 93 countries. Focusing on expanding its network of 34 franchise stores in 13 countries to increase its investment growth rate, the brand has made significant investments in this area in recent years. With more than 500 stores across 5 continents, DeFacto aims to operate in 180 countries by 2025.
A New-Generation Franchise Model Managed End to End, from the Project Phase to Sales
Serdar Ersoy, DeFacto General Manager of Alternative Sales Channels & Business Development, attended the MAPIC fair held in Cannes on 29 November – 1 December 2022, which brought the retail sector together under the Istanbul Apparel Exporters' Association (İHKİB). Noting that they aim to grow in the European market through the franchising system, he described the new-generation franchise model they have developed as follows:
“At DeFacto, we are doubling our growth rate globally, both through our own investments and with our franchise partners. At DeFacto, expansion and franchising work like a stand-alone company managed with its own dynamism. Because we have adopted a corporate-base business model, instead of the wholesale model adopted around the world, we designed a new-generation franchise model for ourselves. The most fundamental feature of this model, which sets DeFacto apart from the sector, is that this channel, like our other channels, is seamless and integrated. To avoid any shortcomings in franchise selection in each country, we manage all processes within a framework of 360-degree operational excellence. We do not keep our franchise stores separate from our own stores; we are involved end to end, from finding a location for the store to construction, from product selection to planning, pricing and operational efficiency processes, and we move forward together with our business partners. We work to ensure that all of our franchisees operate in line with our brand's DNA. Our top priority is for our business partners to grow quickly, profitably and reliably.”
“We aim to grow our franchise channel by 300% within 3 years”
Noting that in selecting franchisees they value sharing the same vision as DeFacto, as well as experience and competence, Serdar Ersoy said:
“We offer our franchisees a turnkey retail experience. Our aim is to collaborate with a partner who is visionary, with a strong financial and commercial background. We play an active role in all stages of preparing the store, from determining the store's location to the project and construction process. At the product level, we provide operational support from the products to be shipped to the prices at which they will be sold. With this vision, we aim to grow our franchise channel by 300% within 3 years.
DeFacto is as much a technology company as it is a fashion brand
With DeFacto Technology within its own structure and a developer team of more than 300 people, DeFacto is strengthening its omni-channel infrastructure and developing software that leads the transformation of the retail sector. Emphasizing that DeFacto is a brand that produces not only fashion but also technology, Serdar Ersoy said: “Our technology investments continue in order to make our customers' shopping journey faster and easier. We share the technology we develop both within our own organization and with our franchisees, who are our business partners. The most important of these efforts is our DFPOS application, which prevents queues at the checkout by offering the ability to pay anywhere in the store. DFPOS, an “Android POS” project and one of the firsts implemented in the retail sector, makes omni-channel-supported payment and return transactions possible anywhere in the store through its mobility, thereby making our customers' shopping experience easier.”
