The story of a business started out of necessity: Anne Bebe, now with five stores
Anne Bebe started out of necessity. Founder Maria Diaconu was the mother of an eight-year-old girl and, in the early 2000s, there was a massive shortage of quality children's clothing. Therefore, after analyzing what was available on the market, what parents wanted and what sales volumes children's clothing could generate, she decided to launch a business in the field. How the business developed, what challenges it had to overcome and how the competition is evolving, find out in the material below.
Anne Bebe is a family business, started in 2001, and the business is run by Maria Diaconu and her son, Alexandru Prunoiu. The chain of stores, five in number, is located in Unirea, Cocor and Baneasa, in Cocor there is an outlet, in Baneasa there is the Anne Bebe luxury boutique. For the near future, Anne Bebe aims to expand internationally.
WALL-STREET.ro : What were the main challenges at the beginning of the journey, in 2001?
Maria Diaconu : "I couldn't get the inspiration for the collections from Romania, that's why I traveled a lot, after the first things I did. I analyzed the big children's brands, the big stores, which offered things that I liked to dress my little one in. I acquired my taste for beauty in Italy, France, Switzerland, Germany and England, countries that I visited many times, before I started working seriously and what I saw there I tried to produce in Romania", says Maria.
The big problem was the lack of raw materials and quality accessories, so he knocked on the doors of many factories in Europe and many fashion houses to get them.
"Most of the time, I was rejected, I didn't get an answer, no one wanted to help me, when I said I came from Romania. But I didn't get discouraged, I got ambitious, I continued and now I succeeded," she says.
Finally, through another relative in Italy, she managed to import a series of materials and accessories, which were not specifically made for children, but were much better than what we could find in Romania at the time. And thus, AnneBebe began.
"I made the first collections using standard patterns, modified and adjusted to be worn and look as good as possible on children. I wanted to offer practical products and materials that the customer would remember."
"Being at the beginning, I did almost everything, from designing the models to selling them. Mornings would start with running to distributors and stores where to sell the products, and evenings would end with purchasing, importing, design, printing, and accounting."
The first collections were casual dresses, then she noticed that there were no cotton school uniforms and started a new project, which, she believes, helped a lot in terms of image: classic uniforms, made of 100% cotton.
"After I made the design and ordered the materials, the orders started to "flow". Although I had four seamstresses, I couldn't cope, but I was afraid to develop, because uniform production is seasonal and, therefore, I had to find another concept to come to the market with. Thus, I created the first dresses for events and celebrations, "snowflake" dresses, princess dresses, elegant dresses. Parents loved them, because all the accessories and materials I used were designed for children, everything that came into contact with the child's skin was made of cotton, the accessories didn't come off, didn't sting, everything was designed for them.
"The first four or five years we were losing money , because we wanted to sell the clothes at market prices and make the brand known, but later, when they managed to increase the volumes of ordered materials and production, things got back on track."
WS.ro : What are the challenges you are currently facing?
MD : "In 2009, when I first baptized a baby from an abandoned children's home, I realized how difficult it is for a parent to run all over the city to find the necessary items for the baptism kit. Thus, we embarked on the second major development of the company in the area of baptism clothes and accessories. We wanted a parent or a family who wants to baptize to find everything in one place: quality clothes, baptism candles, cloth, sash, towel, bottle of myrrh, crosses, boxes for the first strand, baptism certificate holders and, driven by these customer needs, we took care and are here to meet them," says Maria.
The company was one of the first on the market to group all the products into an assorted set made to measure and the customer's wishes, a set that it called "A Suit for a Dream Baptism".
"In 2010, with my son's involvement in the business and the opening of the first AnneBebe store, we managed to better understand what customers want, what they are looking for and what they want to find in a children's store. Since then, we have been continuously improving, always coming up with innovations and baptism collections accessorized with crystals, pearls, fine silks and cotton lace."
With five stores in Bucharest, a national distribution network and partner stores in Italy, Spain and England, the business faces a series of challenges every day.
"Results in Romania come if you have the initiative, if you offer something new, if you surprise and if you offer things at fair prices. Even if it's hard for us, we innovate, we import what doesn't exist in Romania, we use materials and accessories that are used by the biggest fashion houses and we try to set the trends in children's fashion in Romania."
One of the most recent achievements of the business was the opening of a luxury children's store, Annelino Luxury Boutique, in Baneasa Shopping City, which they succeeded in April 2017.
"Being a family business, we divide our tasks very well, everyone knows what to do, when to do it, and most of the time we understand each other just by looking at each other. I take care of the creation and production, and Alexandru, my son, is responsible for the collaborators and stores. Otherwise, we wouldn't have managed to get to the point we are at today."
WS.ro : What two or three tips and tricks can you offer regarding your own production?
MD : Having its own production and knowing what is worn in children's fashion from other countries, it is easy for the company to propose new collections and they have the flexibility to produce only the sizes that they know are sought after and sold, during certain periods of the year.
"Both in the factory and in the stores, we emphasize the closest relationship with people the most. We are close to all our employees, we are understanding and we consider them part of the family, because we started as a family business and we don't want to forget this."
WS.ro : How difficult was it to start production on your own, what related costs are there and how are they limited?
MD : "When I started the business, production labor wasn't a problem, ladies and gentlemen would come knocking on our door and want to get a job," the entrepreneur recalls.
"Now, after 17 years, it is a little harder to find people willing to work in the production of children's clothes, because it is a painstaking job that requires a lot of attention. Our employees in the factory are very good people, we have managed to form a team that cares about each other and about us equally. Most of them want to retire from our company and that makes us very happy."
Production costs are quite high, given the fact that they use materials they purchase from factories in Europe, very expensive accessories and crystals, and the products are made in small batches and handcrafted with very, very great care.
"We have four main collections and we come up with new items at the beginning of each season and many collections and proposals between seasons, so that a customer who comes to our store can always find something new."
We produce small series because we want all baptisms and private events to have a variety of designs, and we don't like the idea of keeping clothes in storage for children to wear three-four-five months after we produced them."
WS.ro : How many employees does the company currently have?
MD : Currently, Anne Bebe has 56 employees. "We increase the number of employees by a maximum of 8% annually, because we do not know what changes will occur or in which direction the market may take it, and we prefer to take small and safe steps, rather than big and dangerous ones. We are lucky that by paying attention to our employees, they also recommend us to their friends, acquaintances, and, most of the time, they bring each other along."
WS.ro : How many of the orders are made "to order"? What are the "best sellers" and what trends exist on this market?
MD : At first, everything was made to order, but now, after they understood what the clients' requirements were, their number has decreased a lot.
"We make special orders, designs that loyal customers want or colors and themes that we are unable to offer in the five AnneBebe stores we have in Bucharest. The first and most beautiful collections we made were a few clothes and outfits for princes and princesses, inspired by the history of art and the history of costumes. At the moment, we have eight christening outfits matched with four prince costumes and four princess dresses, which are made of velvet, silk and silk and cotton embroidery, and we consider these to be the emblematic collections for the AnneBebe brand, being also the best-selling ones."
On the other hand, everything produced in the AnneBebe factory is unique and is made in accordance with international fashion trends, using colors, materials and accessories from the themes proposed by the great fashion houses in Milan and Paris, emphasizes the entrepreneur.
WS.ro : How has competition evolved in recent years?
MD : Being a market still in its infancy, many new fashion houses and workshops are emerging that change their activity profile and tend to make children's clothes, but they do not have the necessary experience and do not offer quality materials and accessories, specially created for the little ones, says Maria Diaconu.
"For three years, we have been running information campaigns for AnneBebe customers, showing them what the materials we use mean, how they are sewn, highlighting the care we take for every detail, making them aware of the dangers that can arise when you dress your child in poorly made clothing, from a problematic material or with a product that is stored in an unhygienic environment."
We often have discussions with clients, because we are interested in their opinion and we want to meet the requirements of even the most selective of them."
WS.ro : What turnover did you record in 2017?
MD : 2017 was a successful year for us and we managed, in addition to increasing sales through distribution in Romania, to start collaborating with other stores in foreign markets: Italy, Spain, England. Thus, turnover increased in 2017 by 15% compared to 2016, reaching 1.7 million euros.
We believe that 2018 will be a more difficult year for the Romanian market, but we hope to manage to increase sales by at least 5%, compared to the previous year, by increasing and promoting products on foreign markets. At the moment, we plan to promote in international business environments, participate in fairs and exhibitions in Arab countries, Russia, France and England and develop the website for sales in Europe.
WS.ro : What share of sales comes from the online environment?
MD : Currently, about 20% of sales are supported by the online environment. It is quite difficult for parents and godparents to order online, not being able to test the quality of the materials and touch the products. We expect that, this year and next year, we will reach higher volumes, given the fact that we are increasingly known on the market and customers know the products and the materials they are made of. We have products that differentiate us on the market, and the baptismal sets continue to enjoy great success. Among our advantages is the fact that we cover the main price segments, so that, in the AnneBebe chain, we have both an outlet store and a luxury showroom for the little ones.
WS.ro: What would you change at the legislative level to encourage business and expansion in Romania?
MD : From our point of view, we would make two major changes: easing the legislation and rules for hiring foreign citizens (non-EU), in order to have an additional workforce in the production segment and individual programs to promote manufacturing companies on foreign markets, participation in international fairs and exhibitions in the representative segments we are part of and programs announced and developed at least six months in advance.
These would be the things we are missing and need in order to develop the company and make it known internationally.
