These two subsidiaries of Pentland Group are trying to capture the advantages of working through multi-brand distributors in certain countries, considering that they can sometimes offer higher operating efficiencies in data exchange and other back-office functions by levering them across multiple brands, while strengthening their relationships with multi-brand accounts. This runs counter to the common theory that a brand can draw higher benefits by distributing its products directly through sales employees and agents in the environment of the European Union.
Berghaus has just announced the signature of two sales and distribution agreements. For Germany and Austria, a big market where it had set up its own subsidiary many years ago, Brand Connection has been appoint as the brand’s sales agent, effective on Nov. 1. Run by Carsten Robens, this company also sells the technical Kjus apparel line as well as young fashion brands such as Boxfresh, Herrlicher Jeans and Dunlop Sport shoes. Berghaus says the deal will in effect double its sales network in Germany, giving it access to much broader distribution.
Selected Brands, a big Norwegian importer with an annual turnover of 260 million Norwegian kroner (€31.0m-$42.1m), will act as Berghaus’ distributor in the three Scandinavian countries. The company’s brand portfolio includes Lacoste footwear, which is licensed by Pentland. It also comprises Caterpillar, Pepe Jeans, Teva and Paul Smith.
For its part, Speedo has announced that Seger United of Sweden, which distributed the brand before, has again become its exclusive importer for all its products in Denmark, Sweden and Norway, starting Nov. 1. Seger, which now belongs to the New Wave group, also markets sports brands such as Excel, Nordica and Umbro.
At the same time, NV All Sport, a Belgian firm that has been distributing Speedo in Belgium and Luxembourg for more than 25 years, is taking responsibility for the French market as well. It had already taken on the contract for the Netherlands nearly ten years ago. Reportedly, Speedo was running behind Arena in France with stable sales of €16 million a year.
In both cases, Speedo had been marketing its products through its own employees in Scandinavia and France, delivering any of its products from its big distribution center in the UK. They are being offered to move to the new distributors. While the choice of products may be restricted through the new move, clients will benefit from an extra day not lost in transit, company officials say.
Speedo’s major competitor, Arena, has also been following a more regional distribution approach lately, allowing some of its better distributors to take care of certain secondary markets. Arena’s distributor in Greece, Athletiki, recently extended its territory to Cyprus, Bulgaria, Albania and Macedonia as well. Its distributor in Spain, Arcerex, is now also taking care of Portugal.
