The leading Italian brand of golf and leisurewear completed late last year a reorganization of its European sales operations that has allowed it to become more reactive and competitive in the market. It closed down its sales subsidiaries in Germany, Austria and France and stopped working with a distributor in the U.K. Like the Italian market, all these countries are now covered by a network of sales representatives who report directly to Chervò's head office near Lake Garda in Northern Italy.
The move has allowed Chervò to lower the prices of its products in highly competitive markets like the U.K. The company has reinvested some of the savings to boost its sales staff. With invoicing and logistics centralized in Italy, the processes have been simplified. The retail clients are getting easier access to a wider range of products and services. Reorders have become easier and faster.
Chervò's products are sold in about 800 stores all over Europe. The company continues to work through distributors in Switzerland, Spain, the Benelux countries and other smaller European markets. It has found a new licensee in the U.S.
Because of the reorganization in Europe, Chervò saw its consolidated sales decline slightly last year to €16 million, in spite of a strong performance in South Korea, Japan and China. The company's chief executive, Manfred Erlacher, is predicting that it will resume its growth in 2016, based on orders in hand, reaching a level of around €17.5 million.
