as evolving from industry to specialized retail an opportunity or a strategy?
I would say both simultaneously. The opportunity to keep the Lion of Porches brand arose – back then they were our clients. We had a feeling that we needed to diversify, to add another business branch to the company. That was the answer to our strategic plans.

In 2007, the year you got Lion of Porches, the Textile and Clothing Industry (TCI) was going through a very difficult period. Was that part of the reason?
Our industry was going through a rough patch, with margins dropping frighteningly, so we had to explore other business alternatives, such as developing our own brand and betting on specialized retail.

For a while you maintained both activities. Do you regret having discontinued your industry?
We were facing competitiveness issues. We had to focus our energy and resources on one single branch of business. A commercial enterprise can never be dependent on a single factory. It must have the liberty to look for the best product at the best price.

Was it a hard decision?
There was a sentimental aspect, but we can’t let it affect a decision process that must be 100% rational. The industry was a beautiful thing, but most of all there was the question of space – in Guimarães we didn’t have the facilities that allowed the growth of both activities.

Was specialized retail a goal?
The margins are greater, but the challenges, the risks and the investment you need to make are also great. That’s not why we changed. We knew we couldn’t hold on to the machines we had.

Portugal is good at manufacturing, but bad in distribution and in brand development, unlike Spain. Weren’t you afraid to take that step?
We were aware of the great responsibility we were undertaking. We knew that building a brand was very different from managing a common traditional business. There’s a huge restraint to begin with: our internal market is too small.

Is building your own brand expensive?
Developing your brand is much more demanding than working in the industry. It requires huge investments in notoriety and visibility. To have a soul and a personality of its own is crucial and to be a cohesive project with an adequate strategy is too.

Did Lion of Porches have a soul?
Yes, it already had a defined style that we tried to improve and sophisticate. We gave it an even greater ‘British’ character. It became all about the ‘look’. We expanded to the children’s segment, ventured in internationalization and created store chain.

Is it impossible to build a brand without owning stores?
Before, Lion of Porches only existed in the multi-brand channels. Opening own stores is the key to gaining visibility, size and to understand the client in a deeper way. We have to be able to understand the client’s – to know if he’s happy in the clothes we make.

Is internationalization vital?
There’s no alternative, not with a narrow internal market such as ours. It’s an enormous challenge that bears many risks, but it had to be taken. We can’t grow further in our country, so we have to grow abroad, full steam ahead.

Has your presence in the internal market matured or is there something more to do?
We can make some adjustments to our chain and open a physical location here and there. In Portugal, we manage 40 stores, five outlets, two corner shops at El Corte Inglés and we are present in 94 multi-brand commercial spaces.

How is your international geography?
The expansion naturally began in Spain, where we own twelve corner shops at El Corte Inglés and two additional brand stores. Our internationalization strategy consists in partnering with local franchisors, in markets where we can reach some level of notoriety.

Is that strategy that explains your presence in markets like Iran, Georgia or Lebanon?
Abroad, in addition to our El Corte Inglés corner shops in Spain, we manage a chain of 19 stores in nine different countries, a geography that also includes some mature markets: Spain, Luxembourg or Sweden, where we opened a store at the end of August, in Stockholm.

Isn’t that contradictory?
No. We have to be flexible. We never venture alone to a new country; we always associate with a local partner. Whenever we come across an interesting partner in a given country, we seize that opportunity. That’s what happened in Sweden, where we will also develop the multi-brand and digital channel strategy.

Are you pleased with what you have achieved at Lion of Porches?
There is still plenty of work ahead, but I believe we have reached a good credibility level and that Lion of Porches is now an established lifestyle associated brand with a ‘British’ and sporty look.

Why did you purchase a second brand, Decenio, four years ago?
The retail began displaying interesting growth rates, so we decided to increase our presence not only by expanding Lion of Porches, but also by acquiring another brand, Decenio.

Did you also have to come up with a soul for Decenio?
Yes, to find it a style, a personality. The challenge is to show the consumers that the brand is different from all the others and not just another brand.

Tricky challenge?
Tricky, but essential. Decenio was a brand that compelled us to make big investments in remodelling the physical stores and evolving the brand’s concept. We had to find it a new path, a different style, to give it something other brands don’t have.

What is the Decenio style?
The brand’s collection attempts to reflect a Mediterranean style, inspired by southern European experiences, a casual chic and a laid back lifestyle. Our main concern has been the correct interpretation of the Mediterranean concept, to be able to transmit it in our clothes.

Has that goal been reached yet?
We had to fix a few things along the way, which are natural growing pains. Our goals haven’t been 100% accomplished yet, but we know what we have and what we want.

What do you want?
The most important is for the brand to have a personality and its own style. We own 30 stores, all in Portugal, with an 18 million euros turnover. We predict that, within two years, the project will be consolidated in Portugal, and we will be able to kick-off Decenio’s internationalization.

How does Decenio’s image relate to Lion of Porches?
Lion of Porches is a more sporty clothes brand, very connected to the ‘British’ and nautical styles. Decenio’s style is more contemporary classical, laid back, therefore a broader concept.

Are you done yet or do you need more brands?
We don’t shut the door on the possibility of owning more brands. We are alert and we will always evaluate any opportunity that arises in the market.

The segment of the new brand has been identified. Will it be acquired or created from scratch?
Maybe a more economical brand, but I still don’t know. We are closely following the market’s opportunities, and we’re ready to grow with the group’s move from Guimarães to Vila do Conde. For now, however, the number one priority is consolidating what we have.

Is the online sales’ exponential growth a threat to brick-and-mortar businesses?
For a while there were those who feared that, but these days everyone has realized that the two will coexist. The notoriety of a digital store depends on a physical presence in the market, so it can be known and looked up online.

Is that the way?
The two channels of business complement each other. One requires a presence in the market to gain visibility and to stand out among the millions of online-only brands. We have been witnessing big digital groups buying and setting up physical locations because they need to have an actual presence in the market.

How are your online sales?
Very good. We’re growing double-digits and we’ve reached very interesting volumes. Through this channel we’ve been able to sell in markets that would have never crossed our minds.

How are you collecting and processing data in order to understand what the consumer wants?
We have a specialized team that permanently monitors all gathered data, to understand in real time the impact of our proposals.

Does having your own stores make it easier?
It does, we ultimately feel the business and the evolution of sales better, but remarkably the most valuable sources of information are the multi-brand channels, which allow us to compare the performance of our collections against other brands. The multi-brand retailer knows, straight away, why an item doesn’t sell: because of the price, the wear or any other reason.

What is the critical factor in a store’s success?
Presenting good collections, being a desirable brand and having great employees. Human resources are increasingly important in a store, they have to be our clients’ fashion advisors.

Is the interaction with the customer a key issue?
The human component is crucial. We have been working closely with shop coordinators to improve customer service, so that it’s done with attitude and pleasure to sell.

What percentage of your purchases are made in Portugal?
Around 70%. Above all, we buy that amount because of the quality. If it were only for the price, we would get everything abroad. Still, we insist on not letting our client down. This is precisely why we have just created a quality control department – a team of four people that exhaustively test all our products before they are put on the market.

How do you evaluate our TCI?
Very positively. It’s now more modern, more available to follow the latest trends and it’s flexible, being able to produce small quantities with a very high quality, setting themselves apart from the Asian competition.