Vakko to grow with “full spectrum” luxury
Vakko, which has been in the Turkish retail market since 1938, is a luxury brand that held its first fashion show in Turkey in 1955 and opened its first store in Beyoglu in 1962. “Luxury is growing in spite of everything,” Vakko CEO, Jaklin Guner, among the 50 most successful female CEOs in the retail industry, said. In an exclusive interview with Daily DUNYA, Guner talked about Vakko’s vision in light of upcoming partnerships in a luxury apparel sector that has grown 8.2 percent annually. Guner said that Vakko is the only brand that covers the full spectrum of luxury lifestyles in Turkey, epitomized by its motto, “Fashion is Vakko”.
$3.2 b ll on luxury cloth ng market
The global clothing market reached $1.3 trillion in 2016, ac- cording to research conducted by AT Kearney Management Consulting Inc. for Vakko. According to the report, the global luxury apparel market represented $161 billion while the Turkish market was $29.3 billion, $3.2 billion coming from luxury apparel. The global apparel market is expected to grow by 4.5 percent and the global luxury apparel market by 4.4 percent in the 2016-2021 period, the report says. In Turkey, the clothing market is expected to grow by 5.1 percent while the growth of luxury apparel is expected to be 8.2 percent, according to report.
In another study, conducted by Deloitte for Vakko, Guner noted that that 88 percent of consumers expect high-quality while 75 percent prefer handmade as their criteria in luxury products. According to the research, physical stores continue to be popular for luxury consumption, accounting for 58 percent of customers, though the millennial generation appears to be shifting to online shopping.
Work ng women love accessor es
Guner believes that the growth in luxury in Turkey depends on location, tourist arrivals and women actively engaging in the workforce. Istanbul has already become a center for luxury. “If global luxury consumption grows by one unit, it grows by 2 units in Turkey and 4 units in Vakko,” she said, adding that the rise of women in the business world has had a positive effect on the sales of bags and accessories, which grew by 70 percent in 2017. Overall, Vakko’s business grew by 26 percent last year and their operating profits increased 2.6 times, Guner added.
Turnover target for 2018 s TRY 1 b ll on
Going forward, Vakko plans to open 27 more stores in 2018, gowing their number to 187 stores and 58,000 square meters from 51,000. Guner said that they have a total of 950 employees and that they acheived TRY 703 million in sales in 2017. The goal for 2018 is TRY 1 billion, she added.
“By investing approximately TRY 100 million in 2016 and 2017, we were able to bring dynamism and real luxury experiences to our 18 Vakko, 41 Boutique Vakko, 23 Vakkorama, 34 W Collection, 13 Outlet Vakko, 24 Vakko Concept Format and Mono Brand Boutiques by the end of 2017, “Guner said. “In 2018 we are planning to open more than 25 Vakko group shops in new locations with more than TRY 60 million in investments.”