Suleyman Orakcıoglu, the board chairman of Orka Holding, explained the effects of the pandemic on fashion & retail, he also mentioned their aims and investments regarding global and Turkish market via Damat, Tween and D’S Damat brands in the video press conference. He said that the holding is active in export, domestic and external retail markets and production. He continued:
‘’ Orka Holding will open 8 new stores in 6 different countries located in Europe and Middle East. 2 new stores in Moscow, a new D’S Damat store in Dubai Hills, which is Dubai’s biggest shopping mall that will be opened soon. We will also open new stores in Tajikistan, Poland, Germany and Switzerland soon. Our improvement in domestic market will also continue online and offline. We will have a total of 12 shop openings in Turkey both in the past 15 days and in the near future.
We will continue to cooperate with shopping malls that see us as a business partner; yet, we will be separated from those shopping mall investors who do not empathise with us in the pandemic period. We learned to be united in this pandemic period; and we, a business that orderly pays rents, is responsible and cooperative, needs to be separated from inconsiderate shopping malls. We see that they also need to protect the brands in order to maintain the asset value.
Orka Holding has 431 stores globally; 210 domestic and 221 abroad. They are all active. however we are considering shutting down some stores located in some shopping malls based on demand & supply from consumers.
We will open new stores in the 5 best selling points of El Corte Ingles, the biggest stores chain in Spain. We have a close cooperation with Spanish Football Federation and we had our booking note with Spanish National Team; yet this was delayed due to pandemic. We sell our products to Spanish Football Federation referees and observers; the first shipping will be on September.’’
Smart shopping system by Orka Holding
Orakcioglu stated that 400 and more stores remained closed for 75 days and said:
‘’ We see this as an opportunity of digital transition; we already had our substructure and the pandemic just accelerated this transition. We passed to single channel management system both in domestic and abroad. We add value to our employees’ performance by digitalizing the manual work via artificial intelligence and new softwares. Our management operated smoothly in order to maintain the health of the society and our employees.
We will have our store concept changed into service and experience centres due to the effects of digitalization and change in demand of consumers. ‘’
Orakcıoglu stated the new shopping system is a pioneer in the sector and said:
‘’Our smart shopping system provides the customers with distant shopping; shopping will be possible not only in tangible stores but also from any customer location. Customers will shop online via video chatting and be able to benefit from the styling service and learn from the suggestion of sales assistants. The purchased products will be delivered in hygienic conditions.‘’
Orakcıoglu emphasized that they produce environment-friendly products and support the importance of sustainable production due to their responsibility of being a global brand.
200 new employees in Giresun city factory
Orakcıolu stated that they have the Europe’s best high technology ready-wear production facility in Giresun and said:
‘’We opened the third facility in Giresun with 10 million liras investment right before the pandemic. We had 40 percent increase in capacity and employed 200 persons. 4 thousand shirts, 1100 suits and 1000 trousers are being produced daily. Facility provides source savings, less usage of chemicals and carbon emissions thanks to it’s new technology investments.’’
We will try to come to terms with the shopping malls
Orakcıoglu stated that they will continue to be business partners with reasonable shopping malls and try to come to terms with the inconsiderate ones, he said:
‘’We will be separated from the malls that do not accept the new conditions and try to operate the old contracts; maybe 10 or 15 of them. We will open 20 or 25 stores besides closing some.
80 percent of the malls are cooperating; there are acceptable turnover rents. It is not possible for you to operate if you pay half of the turnover as a rent. Let’s evaluate the post-pandemic period as rehabilitation according to monthly turnover performance; turnover ratio share was perhaps 8 or 10 percent of the total sale, we can pay up to 15 percent of the turnover not 50 percent. ‘’
Upon a question about sustainable production, Orakcıoglu said that the production will be made from 20 or 25 percent sustainable fabrics gradually in the upcoming seasons and they expect this percentage to be 80 percent in the 2025.
He reminded that they attained all their goals in 2019 and closed the season having the highest EBITDA value. He said:
‘’Our last year turnover was valued at 750 million liras. We were expecting a 18 percent growth and to increase our store number to 480; yet, we only aim to maintain the last year’s number now because of the pandemic. ‘’
Orakcıoglu also mentioned about the online application for D’S Damat brand that will be active on August. He said:
‘’We will start a personal shopping experience via our new mobile application. Male fashion will be in your pockets. Our customers will be presented with personal options and discounts along with trend outfits. ‘’
Orakcıoglu stated that turnover rates are better in Anatolia compared to Istanbul and other big cities.
We evaluate the sponsorship requests
Orka Holding continues to support sports and sportsman; they evaluate the sponsorship requests both in domestic and from abroad. They maintain the clothing sponsorship with domestic National Football Teams and Superlig Teams; Fenerbahce and Trabzonspor. Azerbaijan, Macedonia, South Africa National Teams, Deportive Alaves in Spain, Fortitudo in Italy and a lot of teams are the under the sponsorship of the orka holding.
Orka Holding also made a 2 year clothing sponsorship deal with Real Valladolid team which is in Spain La Liga owned by former Brazilian footballer Ronaldo Nazario.
source: AA / translated by Bazaar Team