Portuguese fashion brand Giovanni Galli seeking partners for development of franchise in former Yugoslavian countries

Source: Franchising.rs Friday, 19.01.2018. 09:33
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The Portuguese-company Giovanni Galli is looking for partners in all countries of the former Yugoslavia, except Slovenia, said Tiago Caruso, representative of this fashion brand.

– We are primarily interested in a recipient of the master franchise which would be given the right to develop the brand and the network in the entire region, but if there are parties interested in only one country, that option will be taken into consideration as well. We do not exclude the possibility of giving out single-unit franchises, for the opening of one or more stores, or corner franchises, whereby Giovanni Galli would get a place within an existing multibrand store – Caruso says.

The company’s main products are suits, shirts and ties, and, as most brands of this type, they also offer casual and sports clothes. Over 60 stores in nine countries on three continents operate under the Giovanni Galli brand today.

The first stores in Europe, after Portugal, opened in 2011 in Slovenia, where the brand operates through a recipient of the master franchise.


What makes this fashion franchise especially attractive is the fact that the partner would not be paying any fees – neither for access to the system nor for regular franchise fees. As Caruso explains, the company has opted for the kind of cooperation that would not burden the partner this way, as their priority at the moment is to expand their network and raise awareness of their brand.

– When studying this region, we noticed that the fashion sector is not as developed as in, say, Spain or Portugal. There’s a “gap” there, both in the number of brands and the number of stores, and we see this as a good business opportunity. This “gap” means space for growth and development – Caruso says.

– On the other hand, we believe that Giovanni Galli would be well accepted in the region. These are quality products, which are more affordable than some other brands in the same category. This brand can also stand shoulder to shoulder with other players, as it comes from a very competitive market. For example, it is quite natural for brands from Spain, which is a fashion juggernaut at the moment, to be tested in Portugal first, which means that Spanish and many other world brands compete in this market – Caruso explains.

Giovanni Galli was formed in 1992 in Portugal and is owned by one of the biggest Portuguese textile groups – Unifato Group, which is also the recipient of franchises of several international brands for the territory of Portugal, as well as the owner of two textile factories.

In order to open a Giovanni Galli store, the franchisee needs to find a suitable location. Outlets within shopping centers or in busy streets, with 100 m2 of area (plus 30% for storage space), with store windows of 6 to 8 m2, are recommended. The partner then invests in the adaptation of retail space in line with the systems standards and visuals. At the moment, it’s hard to estimate how much needs to be set aside for the development and the equipping of the store, as this depends on the conditions in the local market. The franchisee also needs to set aside funds for the purchase of collections in each season.

While the cooperation lasts, the provider of the franchise monitors and assists in each phase of the operations. This entails help in choosing the location, developing the store, exhibiting collections, marketing, current operations… The ideal franchisees are companies with experience in the fashion industry, companies which have already cooperated with foreign franchises, but also private investors and funds.

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