E-Commerce Leading The Fashion Industry

Q: What business model does André Badi follow and how has this provided a competitive advantage?

A: Our model is focused on catalog sales, which represent the bulk of our overall sales. We also have physical shops in states such as Durango, Zacatecas, Aguascalientes, San Luis Potosi, Guanajuato, Jalisco and Mexico City but despite being points of sale, these outlets act mainly as customer service centers. This allows us to guarantee the ease of online purchasing, while also providing personalized and face-to-face customer interaction when necessary.

Q: How does André Badi ensure the timely and quality delivery of products?

A: We meet all the regulations required by INDESOL to guarantee the success of our business, from our own manufacturing, the purchase of raw materials and local production, to the purchase of finished products both internationally and nationally. We also have strategic alliances in each of our product categories and we have sought strategic partners that add value to our brand. In some cases, we have purchased companies to complement our brand. Annually, we can offer up to 3,500 items.

Q: How does your offering of high-quality fashion at affordable prices allow for a broader consumption of your brand and products?

A: The company's years of experience have resulted in an equilibrium between cost and quality. Our products range in price from MX$149 to MX$1,900. Some products, such as coats, are on the same level as Zara and comparable brands, and the strategy for each category is different. With blouses, for example, we employ a bulk approach. We used to sell them in a range of MX$400 to MX$600 and we had annual sales of 6,000 units. When we lowered the price to MX$149, sales grew to 90,000 units per year. Our strategies are drafted according to what our market research shows.

Q: How does a traditional sales catalog model transition successfully toward a digital and online business model?

A: André Badi is aware of the importance of digitalizing sales through e-commerce and in that sense, the company is strengthening its software platform and will migrate to an application in the near future. We want the application to become the transaction tool for our catalog vendors, with the intention of facilitating and making the process more efficient. We see digitalization as a sales empowerment tool and not as a replacement for our vendors. We created powerful partnerships for this strategy with businesses like Amazon, which made our internet sales a leader in sales for national fashion brands.

Q: André Badi has already implemented QR technology in its catalogues. Have has this been received by your clientele?

A: Most of our salespeople are adults who, unlike young individuals or so-called millennials, have not been exposed to technology. However, we are making a major effort not only to integrate these individuals, but to assist them in embracing today's trendy technologies, such as QR. We want to continue working with Amazon to reinforce our position as the domestic clothing brand with the greatest volume of online sales. Similarly, we want to change to an ERP model to be able to sell and transact much more transparently. In terms of our website, it will not change in appearance but it will be linked to our inventory, giving another tool to our sales force.

Q: How do you expect your operations to evolve?

A: Our biggest sales presence is in the center of Mexico. In the next two years, we’d like to expand and diversify across Mexico. Moreover, André Badi is going to open 35 stores to explore areas where it does not yet have a presence. Mexico will remain the core of our business but in the future we expect to grow to other countries.

André Badi is a Mexican brand that primarily commercializes its products through catalog and e-commerce platforms like Amazon. It is present across the country in Durango, Zacatecas, Aguascalientes, San Luis Potosi, Guanajuato, Jalisco, Mexico City and more