VP of MEXX Asia Pacific Peter Hammond (left) & VP of International Brands Richie Santos
Fashion is a fast-paced and unabashedly fickle business. Yesterday’s hottest brand that was all the rage on the catwalks and the streets can oh-so-quickly become today’s faux pas. And like the shoulder pads, never to be seen again.
Mexx, which was founded in the Netherlands, has gone through its own peaks and valleys throughout its 27 years in the industry. It has seen changes in ownership and the exodus of loyal customers that almost brought it to its knees.
But another change in the corporate structure and the invigoration of the entire team have placed Mexx on the upswing yet again, and it is counting on an increased foreign presence to help hasten its comeback to the forefront of the casual chic niche of the billion-dollar global fashion industry.
The Philippines is expected to contribute in a big way to that growth and the return of Mexx to high profitability in the next few years, given its huge and young population and increasing purchasing power following years of stellar economic growth.
According to Peter Hammond, senior vice president for Asia Pacific of Mexx, it is a good time to invest in the brand in the Philippines as the country is getting to the proverbial tipping point beyond which the Philippines will attract even more attention from the global investment community.
When that happens, more Filipinos will likely have more funds available to indulge in their taste for fashion, and try new brands with a European heritage such as Mexx, which is known for its bold prints, unique details, silk shirts and sleek European cuts suitable for both men and women.
Hammond says in a recent briefing here that he believes that Filipinos will respond well to the Mexx look because of its Asian-inspired details combined with the European flair for understated elegance as well as microscopic attention to details. For far too long, the Philippines has only been fed a steady diet of brands and looks coming out of the United States.
HAMMOND
Mexx was first brought into the Philippines in 2008 by the Rustan’s group, but the response did not meet expectations thus the brand faded from consciousness.
Hammond explains the company believes that in this latest attempt to penetrate the Philippine retail market, it has found an ideal partner in 29-year-old Cinderella group, which also distributes other foreign brands such as Esprit, Clarks, OshKosh, Pierre Cardin and British India.
Hammond has known the Cinderella group for years, having worked closely with the Filipino fashion retailer when he was still working with Esprit.
“An exclusive distribution agreement is like a marriage so you want to make sure you get the right partner. A divorce can be painful and expensive,” explains Hammond.
For the Philippines, Hammond says that Mexx, which has 600 stores in about 50 countries, will take a slow but sure approach, and be careful not to open branches just for the sake of opening them.
Mexx wants to cherry pick and establish a presence in malls where its target buyers—young, urban professionals looking for fashion and not trends and can afford an average of P2,700 per piece—are concentrated.
Mexx opened its doors again in December 2012 and in May opened its second branch at the new wing of Shangri-La Plaza. The next two will be at SM Aura and Glorietta, and Cinderella is studying plans to expand to key urban centers in the provinces such as Cebu and Davao.
Hammond says that the response to the Alabang store has been encouraging, with 30 of 100 visitors leaving the store with a purchase. Some have also come back for a second and third purchase, helping build a loyal customer base for the upscale brand.
“We are not going for the mass and young market, but rather those around 27 years old who are more sophisticated in their dressing. They do not follow trends and instead know what they want. They are more individual in their tastes and not so peer oriented,” says Hammond.
And as Mexx grows here and abroad, Hammond says he expects the group to remain true to its core competence and its identity of being sexy but stylish at the same time.
He explains that all big brands go through that period where they lose their way and veer away from their true self. Mexx is committed to not making the same mistake again, to benefit its old customers as well as new ones from emerging large markets such as the Philippines.