01 October 2024
San Sebastian Campus
Imanol Muñoz, Marketing Director of the Ternua group, has presented the distribution strategy in the classroom of the course “Strategic Distribution Decisions” course of 4th year of DBS. 40 Erasmus and local students have been challenged to define the expansion strategy in various territories.
Loreak Mendian, integrated in Ternua Group since 2019, defines its positioning in the Market as a Urband Brand, Honest brand not too conditioned by fashion trends.
Ternua group has divided its brand strategy into three clearly differentiated segments. Outdoor and winter sports, Fashion and sports and the new Work and Rescue Equipment unit. Through its brands Ternua, Astore, Lorpen and Loreak Mendian.
Loreak Mendian is actually in a process of “Back to the roots… to Streetwear”.Back to the iconic daisy flower logo. With apparels very adapted to the functionality that customers are demanding. Customers that move in a bike or that walk in rainy streets.
The company is doing interesting collaborations with other brands. An example of it is the collaboration done with iconic OFR library in París, or with Juan Luis Goenaga artist last spring. With travels specialized Monocle magazine, The Social Hub Hostel, Udada Festival in Saint Jean de Luz or Thyssen-Bornemisza museum in Madrid.
Workwear segment is an interesting B2B segment that many brands are entering. In addition to the traditional channels, Loreak Mendian is using the so-called “Market Places”, such as Zalando or El Corte Inglés. Some platforms work with the concept of Extended Warehouse, in which the platform stores and resells the product. Others work on the concept of “Drop shipping”, in which Loreak Mendian charges directly from the end customer and sends the order directly from its warehouse in Arrasate.
Imanol Muñoz showed to the students a very clear photo of the world distribution map, adapted to the reality of each market, through the figures of Own agents, Independent agents, Agencies or Distributors. "Each market is different, and you have to adapt to it."
Imanol has shown as that in the short future sustainability will not be a differentiator for fashion brands, because it will be a must by law.
Loreak Mendian is using 4 distribution channels: DTC, Direct to consumer though E-commerce, Retail model, Wholesale Model in Spain and Selective International Model. On Line sales have increased multiplying sales 4 times in the last years.
Retailers multiple wholesaling price 2,5 times as average.Loreak Mendian is using E-commerce though the models of Extended Warehouse or Drop Shipping. In the Drop Shipping system LM is billing directly to the final consumer, LM delivers the products from their warehouse to the final shopper and pays a commission to the Market Place.
Loreak Mendian also sales through Shop in Shop concept in Department stores. Through Pop Up concept or permanent shop. For example, in El Corte Ingles. In this case Loreak Mendian doesn’t pay rent to ECI, but they pay a commission of around 35% to them.
