Direct Entry Of Fashion Brands Generates Profit Quickly

Ziarul Financiar:

The presence in Romania of representatives of H&M, one of the world’s leading clothing retailers, to gather information on a potential direct entry onto the Romanian market reveals the significant long-term potential of the Romanian clothing market. Direct entry onto the Romanian fashion retail market is a profitable venture from the first or second year, unlike the consumer goods sector, where investments, which are much more significant, take more than three-four years to recoup.

Over the last two years, the big companies made their way into the Romanian market using “their own weapons”, without resorting to local operators, as used to happen before.

Advantages such as making a high profit “as quickly as possible”, better control over local development and a better visibility of the brand overshadow the risks, especially since they don’t come into play unless the company decides to exit the market – in such a case losses are higher than if the company relinquished a franchise agreement.

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