Zadig & Voltaire targets €550 million revenue by 2025
Zadig & Voltaire has drawn up its road map for 2025. On October 6, Rémy Baume, managing director of the French label since the beginning of 2020, outlined Zadig & Voltaire's plans speaking at the Parisian headquarters of the company, founded by its current majority shareholder Thierry Gillier. Zadig & Voltaire, in which the Peninsula investment fund acquired a minority stake last year, has been rather close-mouthed about its results and plans in the past, but this time it disclosed many of its strategic linchpins.
Baume revealed that the label’s sales for the 2020-21 financial year, closed at the end of July, amounted to €359 million. A result that was slightly higher than the previous year, when sales were steady at approximately €350 million. The company's financial statement showed a consolidated revenue of €292 million. And Zadig & Voltaire is planning to reach a revenue of €550 million by the 2024-25 financial year, equivalent to an increase of over 88% in four years.
Baume highlighted the strategic mainstays that will enable the label to reach its goals. He believes that its positioning and brand identity, which hinges on the freedom of spirit and relaxed luxury so dear to Gillier, will allow Zadig & Voltaire to continue to appeal to its primary clientèle, aged between 35 and 55, but also to attract a number of 15 to 25-year-olds.
“We don't define ourselves as a label or a fashion project. We are specialists in style products. From one single item, women and men have the freedom to build their own style. Half of our range consists of style products, like our distressed leather items, lace dresses, cashmere sweaters etc. And the other half of those attractive items that complete a look. Whether Gen Z or Millennials, all [consumers] are looking for more fluidity. Relaxed luxury is an overarching trend. We are in line with many of the current vogues,” said Baume.
Boosting digital and services
Baume intends to exploit this feature in several ways. First of all, Zadig & Voltaire wants to further boost its digital capabilities. While its site is currently undergoing a gradual redesign, the label said online sales accounted for 21% of the total (with 64% of sales coming from physical retail and 15% from the wholesale channel), thanks notably to a rise in digitally-assisted in-store sales, currently 3% of the total.
From the 2019 to the 2021 financial year, online sales rose from €31 million to €61 million. Most importantly, Zadig & Voltaire estimates that 41% of its customers make digital contact with the label at some point in their shopping journey. By 2025, the forecast is that online sales will account for 30% of the business, in other words be worth over €160 million.
But Zadig & Voltaire is by no means going to abandon physical retail. The label currently operates some 400 monobrand stores worldwide, and said it wants physical stores to retain a 60% share of sales. Currently, the label said 30% of its sales are generated in France, 30% in the rest of Europe, 25% in the Americas and 15% in Asia. And while France and Spain seem to be mature markets, Baume pointed out that the label still has ground to cover in many European and American cities. “Our challenge is to have a retail network that goes a step further, with addresses that are more ‘premium’ and more representative of the label's creative style,” said Baume.
Growing from 16 to 60 stores in China
In each of its stores, the label is keen to add a special touch, echoing Gillier’s passion for modern art. Zadig & Voltaire is aiming to grow its retail network by 36%, arriving at 522 stores in total. Asia is bound to play a driving role in this. Zadig & Voltaire already has a strong South Korean presence, and is keen to accelerate on the Chinese market, which currently accounts for less than 5% of its revenue. In September, the label bought from its former local partner IT Group the latter’s stake in the joint-venture company that distributed Zadig & Voltaire in China. An operation whose value was not disclosed. The new organisation, led by Jean Lahirle, formerly in charge of Delvaux in China, aims to establish the label more strongly in the country, notably growing the number of stores it operates from 16 to 60 in four years, as well as expanding its presence on local e-tail sites. To underpin this plan, the label’s name in China has been revised to 'Zà di jeh’, and Zadig & Voltaire is even planning to stage a show in China soon.
Finally, on the product side, Zadig & Voltaire is working on two fronts. First, it wants to strengthen its accessories range, introducing new shapes for handbags and clutch bags, bolstering a category which currently accounts for 35% of revenue. The goal is for the category to reach a 50% share in 2025.
The label’s other project is to strengthen its sustainability strategy. Zadig & Voltaire has “fewer than 100” suppliers, whose practices Baume is keen to improve, for example ensuring that 100% of the label's key raw materials are certified as sustainably sourced. A commitment that is part of the VoltAIRe strategy presented this year, designed to meet customer expectations but also to become an engine of progress and education for the label’s staff.
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