Bungalow in Stuttgart stands for luxurious modernity: independent and exquisite – and yet lively and approachable. The stationary and online business complement each other in an ideal way: while the Stuttgart clientele, looked after by a total of 24 employees, shops in the 350 square meter men’s store and the 220 square meter women’s store, the online shop, for which three employees are responsible, increases , reach and awareness. In the interview, owner Uwe Maier talks about the situation in his market and the current challenges, but also about the advantages of his profession.
How are you doing right now, Mr. Maier?
Personally, I’m doing very well. However, the industry is a bit stressful at the moment…
What do you find particularly challenging?
It’s not that easy to put into words because there are many aspects that led to a very challenging situation overall. Of course, it is the wars in Ukraine and Israel in particular that have a negative impact on sentiment and therefore also have an impact on business. The weather was also a challenge. But we are also currently experiencing collaboration with certain brands as a stress test.
In what way?
We very much welcome it when a brand has clear distribution and pays attention to price discipline. Since we have a full-price concept, this is essential for us. However, there are competitors who also compete in the presentation with regular prices, but in fact always sell with some kind of discount. Of course, something like this puts us in a difficult situation. I don’t understand how such behavior is continually tolerated.
How do the suppliers in question react when you raise the problem?
They point out that in Germany we only have a recommended price and no fixed price. That is true, but we have all agreed on this price, even if it is not mandatory; So all market participants should respect this agreement. Ultimately, it’s about partnership. Basically, it’s not much different than in private life: Is a partnership sustainable if one of the partners continually disregards agreements? Barely. In such a situation I would break up.
The problem mentioned probably affects online business in particular. When you launched your own shop online years ago, you said you saw the whole thing as an adventure. Is it still like that?
Nowadays, retail as a whole is one big adventure! It has become highly complex on all levels. The summer was far too long, the fall/winter business only started in October. Added to this are our irrational seasonal rhythms: When winter actually begins, the season is basically already over. There is still far too much product on the market and inventory pressure is high. Of course you don’t have to play this game; You can limit the number of suppliers in the individual product groups, and we do that too. But we are also dependent on many factors that we cannot influence, from war, to climate change and the economic conditions, to the manufacturers who do not always act in partnership. While there are certain safeguards in many other industries, we retailers bear the full risk, and we alone. So we absolutely need functioning partnerships with manufacturers, not just in terms of distribution and price discipline.
What else needs to be improved?
A very crucial point is delivery dates in line with the market. So far the delivery issue has been a black box for us. We order rubber appointments of up to six months. You can accept it or not, according to the motto eat or die. This affects brands that can probably afford it. To a certain extent I’m willing to invest – but at some point I also expect a bit of loyalty.
What effect do the bungalow price increases have?
The price development is frightening, no question about it, but it is everywhere. I believe that we can cope with the price increases a little better than others due to our concept, our location and our customer structure; Nevertheless, the question is: up to what point can this development be continued? If I can no longer explain a price, it becomes difficult.
How does your clientele react?
Quite sensitive, even if our customers are generally well equipped financially…
How do you deal with that?
I also shop sensitively. It’s like this: If I’m sitting in the showroom and I’m excited about something, then I can convey that to my customers and employees. However, if something is interchangeable, if in doubt, I leave it out. You just have to keep reminding yourself: It’s about Bungalow, it’s about my range! Going into the showroom and saying: Show me your bestsellers – that doesn’t work. I have to judge each piece according to my criteria.
What criteria are these?
What is very important to me is the degree of modernity, the charisma and of course the price range. A collection has to convince me overall; it has to be exactly the right product for my market. Of course, these criteria evolve from season to season, so I tweak this and that.
How relevant are limited editions or co-ops?
In my opinion, coops have been a bit overused. But you have to judge this individually: What does a brand stand for? Is she strong enough to cooperate? Sometimes you see brands whose profile is not very clear, but which still enter into coops; you have to be careful.
What criteria do your customers use to judge you?
Of course the range is a very important topic, because without great products I can’t sell anything. Nevertheless, service for our customers is clearly our top priority. Our clients expect first-class service, otherwise they don’t need to come to us specifically. They really appreciate being inspired to have combinations suggested to them that are tailored to their individual personalities. Basically, our customers confirm to us every day how relevant and how lively Multibrand still is. Of course, there are also customers who just want Miley Cyrus’ sweater; They will probably buy it online.
What is the proportion of stationary and online now?
We are growing healthily in both areas. We have deep roots in Stuttgart; I really appreciate what we have at our location. We have our small fan base online, we have earned our place in our small, fine niche and feel very comfortable there. The share of total sales is now around 25 percent. The interaction between both areas works very well overall.
Who is this online fan base?
On the one hand, there are customers who know us stationary but do not live in Stuttgart. On the other hand, there is a clientele that comes to us because of a brand. We also try to build a relationship with them.
How do you go about it?
In principle, it’s the same as when you get advice in the store: For example, we recommend matching trousers with the sweater. So we try to have a dialogue; This also works quite well via email.
If you observe Bungalow over a long period of time, you get the impression that the range has evolved, but has not aged…
Actually? That makes me happy, because that has always been my goal: to stay fresh and young in the product range and as a company. I always wanted to avoid my company aging with me.
What are you doing to achieve this goal?
I try to keep my openness and – even when things don’t go well – not to argue, but rather to roll up my sleeves and take action. My daily exercise routine probably helps me: the first thing on my agenda in the morning is running and fitness training.
Is travel also important for this?
I couldn’t do without that. For me there is no alternative to seeing the collections on the screen. I just have to go to the showrooms, I have to feel the materials, absorb the spirit. But that’s not all: I also look forward to Milan and Paris and all these wonderful places and backyards that I get to know there in every order round. I really enjoy the fact that my job allows me to see so many special things. While others sit in the same office every day, I’m out and about on Place Vendôme. I am very grateful for such privileges.
