La Redoute CEO on Pivoting the Focus to Home
Why would a firm that has been dressing French families since the 1800s shift its focus to the home sector?
Leading French e-tailer La Redoute’s chief executive officer Philippe Berlan told WWD that it boils down to two reasons: the strength of the home business and the company’s own potential.
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“The home decoration market is more resilient overall, even if there are fluctuations. It’s more resilient than fashion, which has been a very challenged market for many years. And then the second reason we chose this strategy is that we feel this is where we have the best assets to succeed, with the development of strong brands such as La Redoute Intérieur and AM.PM,” he said, following a company announcement regarding the strategy shift last month.
“The period 2024 to 2027 will be a new turning point in the history of La Redoute,” Berlan continued, as the company works on becoming more planet-friendly and ultimately a leader in the home sector, expanding its business in Europe, especially in the Swiss and Italian markets, where it also plans to open physical stores.
Berlan commented on its performance throughout the COVID-19 pandemic era, after which its number of unique visitors per month fell to 6.2 million, from 7.3 million it reported in 2019.
“The post-COVID years have been exceptional, with a return to cocooning during this complicated period. And if we look at 2019, we’re reporting a double-digit growth. In the current complicated environment, we are outperforming the market overall, backed by a solid base and a constantly renewed strategy,” he said, listing inflation, rising interest rates and pressure on purchasing power among current concerns.
The internet accounts for more than 90 percent of sales in France for the brand, which is also present on smartphone applications and social networks. It is present in more than 20 countries, with more than 8.8 million active customers worldwide. La Redoute also has nine directly operated stores and 50 corners in Galeries Lafayette locations.
Galeries Lafayette bought a controlling stake in the firm in 2017, as part of the group’s plans to accelerate its digital offering.
In 2022, Berlan took over from exiting co-CEOs Nathalie Balla and Eric Courteille, who had been at the helm since they purchased the catalogue business from its then-owner Kering in 2014. La Redoute was started in 1837 when Joseph Pollet, son of a rural family, moved to the wool capital of Roubaix and opened his first worsted spinning operation.
La Redoute said it recorded sales of around 1 billion euros last year. The company said that it is already the largest e-commerce site for home decoration in France. Today, 60 percent of its sales by volume are represented by home decor and 40 percent by ready-to-wear.
“The challenge for us is to highlight the fact that La Redoute Intérieurs is not just a brand, but a reference point that offers attractive products with the best quality/price ratio on the market, supported by our team of designers based in Roubaix,” Berlan noted.
He forecast that 2024 will also be marked by home sector partnerships that share its values, including its sustainable ones.
“La Redoute has a long tradition of successful collaborations, both in ready-to-wear and home,” he pointed out, recalling the Yves Saint Laurent, Issey Miyake, Azzedine Alaïa, Marithé et François Girbaud and Isabelle Marant collabs of the ’90s, and more recently Jacquemus.
In addition, the firm has had partnerships with eco-friendly brand Balzac Paris, interiors brand Maison Sarah Lavoine, French TV personality and knitwear designer Alexandra Golovanoff, and women and kids’ brand Louise Misha for its home section.
“These future collaborations, integrating creators and designers, are essential in maintaining our modernity and spirit of innovation. By combining our French design heritage with international influences, we plan to deliver innovative, quality product offerings,” he added.
La Redoute can be an affordable option for the home, offering a wide range of prices and products. For example, sofas from the La Redoute Intérieurs line run from 300 euros to 3700 euros, while sofas from the AM.PM line run from 599 euros to 6900 euros.
Reflecting on how far the company has come and the near future, Berlan explained that La Redoute is not abandoning fashion, but it will start to rethink its collections with a more curatorial approach, fine tune them in terms of volume and to respond to consumers’ sustainable expectations.
“We are not giving up on fashion, which is recognized by 95 percent of our customers, while only 70 percent associate us with the home. However, we recognize that this is a constantly evolving market, with the emergence of low-cost fast fashion and second-hand goods. It is therefore essential for us to adapt to meet our customers’ needs effectively. Fashion is no longer our only strategic focus.”
