Chiemsee intends to open several new stores as part of its steady expansion, which saw its sales rise by about 7 percent for the financial year ended in November 2006 to just over €34 million. In Europe, the German surfing and snowboarding brand will double this year the number of its concept stores by setting up two more of them at opposite ends of Germany, displaying full ranges of Chiemsee products. At the same time, at least four Chiemsee stores are to be opened in Malaysia by Green Point, which has obtained an apparel license for several countries in Southeast Asia. Another deal is in the pipeline for China and South Korea.
Last year’s turnover of €34 million excluded revenues of about €8.5 million under license. These were up by more than 10 percent, mainly due to a new fragrance. Chiemsee further built up its license business in March with a new deal for watches and jewelry, which it sold in the past through Lifestyle GmbH. The new products will be launched in the Germanic countries in October by Proconcept, a German company that already makes licensed products for S. Oliver.
Furthermore, Chiemsee has invested in its international business by turning its Swiss distribution agreement into a subsidiary, headed by Fritz Minder, former sales manager at Catrade. Its country manager in the UK was replaced with the appointment of James Harrow, formerly at Oakley. Arrangements have changed in Spain as well, where Chiemsee switched from an agent to Viper, distributor of Leki and Wintersteiger.
Due to its recent investments, the company’s profitability somewhat decreased in the last financial year. Synergies with the Schmidt apparel group, which acquired Chiemsee three years ago, have proved minimal. Except for back-office synergies, the main advantage for Chiemsee so far has been the fact that it shares a Polish office with other brands run by its owner in the country.
Headed up by Florian Steinberger and Dietmar Damith, the management of Chiemsee remains stable. The only recent departure is that of Erich Sauter, chief financial officer, who left last summer to run several sandwich bars. He was succeeded in the post by Martin Bogdan.
