Hering focuses on children's stores

The Cla. Hering is betting that the infant clothing will increase your revenue while consumers reduce their spending. "The expansion of shops line Hering Kids on up to four times, for 200 stores, is part of a broader recovery effort, which includes a new distribution strategy to keep the shelves and creating executive teams to manage the four marks of the company," said RI Director Frederick Oldani.
The Hering needs this help. Sales in the shops of your brand fell 1.2 percent between the second and third quarter, part of an industry retreat caused by inflation, which diminishes the buying power of Brazilians. The slower growth for
the company, based in Blumenau, occurs after a boom in the past five years, a period that included annual revenue gains 41%, in 2010, and 34% in 2011. The growth dropped to 10% in 2012, no among retailers of clothing in Brazil, whose average was 17%, according to data compiled by Bloomberg.
To increase pressure, the Gap, the largest American retailer of clothes, Brazil debut. Lack of Christmas products passed gave new focus to stock the Hering is focusing its stockpile of basic apparel in smaller cities and leading parts
more expensive and they are fashionable to large cities, where consumers want higher quality products. Also hired Luis Bueno, an Executive of the company Natura Cosmeticos, to drive the brand Hering. "Its initiatives are right",
opines Vítor Paschoal, analyst at Itaú Corretora de Valores, in São Paulo. "In the past, the structure was focused on reducing costs. Today, as we see a lower growth, the company needs to change the focus of the dilution of the expenses each brand individually. "
"The Hering greatly increased their prices and there is concern with that has gone too far, leaving the product very expensive and losing the cost benefit that made her attractive," explains Paschoal. Oldani said Hering
learned his lesson by the end of 2012, when products on the shelves, just missed in the best sales season. "We need to find out which products send what stores — we can be competitive in certain products and certain places," he said.
Now, the Hering plan to invest about $ 75 million in 2014 in technology, logistics and production capacity, following the opening of new stores. Currently, the company has about 700 stores, including 600 Hering's brand and line 50 Hering Kids.