SEMANA: From Lili Pink that motivated you to explore the market in Venezuela?
Mauricio Restrepo (M. R.): As we all know, Venezuela has historically been a very important country for the entire Trade issue. Let’s say that in recent years, due to the country’s socio-political situation, our commercial relationship, consumption and the presence of brands have been greatly reduced, but at this time, with all the favorable socio-political situation that is presenting itself, Venezuela is once once more a country of high consumption, which is closely aligned with the values of our brand. That is why we decided to go exploring for more than six months.
Being honest, we had the projection to begin work in Venezuela by the end of this year, but thanks to the acceleration of agreements between countries, which has happened in a much more agile way, we decided to bring forward the opening of our first store, regarding two weeks ago.
So definitely Venezuela is a country of high consumptionit is a country with very important possibilities and, above all, it is a country that has had a recession for regarding 15 or 17 years, so today, arriving with a brand of a value proposition like ours, is going to be very important.
WEEK: What risks have you evaluated to start operations in Venezuela?
M. R.: Like everything in life, all bets and more on new markets, there are risks. The same thing happened to us in Guatemala, where we had never been; With these new openings, logically, the brand is looking towards a process of international expansion. Today we have operations in Colombia, Guatemala, Costa Rica, Panama, Ecuador and now we are reaching Venezuela, and we want to reach many other markets in both Central and Latin America.
All these bets somehow have risks, but we really We are very confident because there has been a drought for many years of the product and of some items such as underwear and outerwear. We have a very important expectation; Of course, as in everything, there is a risk.
Logically, we are working with a calculated risk. We are going to initially open eight stores in Caracas this year, and depending on how the socio-political situations develop between the two countries, we will be accelerating for next year with a greater number of stores, more or less between 18 and 20.
WEEK: You already have three stores operating in Caracas…
M. R.: Yes, we opened the first store and the rest are in adequacy, we are going to have three stores and we are going to close the year with seven more.
WEEK: What was that process like to open the first store in Caracas?
M. R.: First we were in the company of a local person, we were looking at the local market, then we selected some initial shopping centers to carry out the entire opening process, and almost at the end we carried out the entire contracting and remodeling model in accordance with the layouts Of the brand. So the stores are absolutely like the ones here. We import the furniture, we carry the clothes, we carry everything what it has to do with setting up the store and all those elements that today are part of the brand’s DNA.
WEEK: You commented that by the end of the year they expect to have eight stores in Venezuela. What does Lili Pink expect from this incursion into Venezuela?
M. R.: We are betting on, more or less, an average sale of 20 thousand dollars per store initially. We are going to have eight stores, the idea for next year is to bet on 18 or 20 stores and, depending on the evolution, to speed up further expansion.
WEEK: For example, in terms of supply, raw materials, payments and other things, is there anything in particular that worries you?
M. R.: Let’s say no, right now we are developing an important logistics model to supply the entire Central and South American market, where we exported directly to Venezuela. The import did not have any problem, part of what might suddenly generate uncertainty for one, at the time, was the inflationary issue, but at this moment the country’s commercial economy is already dollarized. In other words, you go to any store, be it a supermarket or a store, and you find that all the prices of the products are dollarized. This means that there is no longer that logistical task of relabeling products on a daily basis and that, in effect, was one of the impediments to the market. Today, being dollarized, that problem is removed and it gives greater peace of mind to be able to have a best price transfer.
WEEK: What plans do you have to stock up?
M. R.: We have two supply systems. We have a local one and a supply one from the East, where there are some high-tech plants. Here In Colombia we produce cotton garments, whether tights, bras, pajamas and other elements such as accessories, but let’s say that the supplies will be in accordance with the needs of the product from one of the two origins. Same as in other stores.
WEEK: What would you say to those entrepreneurs who are looking to migrate a little to Venezuela?
M. R.: I would tell them that right now Venezuela is a golden opportunity. No type of business is 100% guaranteed, but we are firm believers that entering first we will begin to position the brand, people are going to see that we trust the country and that that consumer also says ‘hey, this brand was one of the first to arrive, it believed in Venezuela once more, it believed in the people once more’. We are hiring and we are generating employment in Venezuela, so without a doubt, those who bet today on the reopening of the Venezuelan market will have a very nice business in the future.