Chairman of the Vivarte group
Georges Plassat's view
on going global

The Vivarte group includes the following retail chains: André, La Halle aux Chaussures, San Marina, Chaussland, Orcade, Minelli, Besson, Caroll, Kookaï, La Halle aux Vêtements.

One thing is obvious: everybody talks about going global, but few of the numerous and repeated attempts have proved to be successful.
Every possible strategy has been tried out: among "generalists", Wall Mart has used it's cash flow, Carrefour has experimented rapid globalisation, whereas Casino has been treading behind carefully, unlike Auchan, the tester… The best move seems to be the one made by Ahold, which was acting on a limited domestic market (Holland) and expanded in the USA through a process of acquisitions. Amongst the specialists, two systems "confront one another": the "hard" system on the one hand, which is also the dominant system, symbolised by McDonald's : it uses a process of assimilation and keeps very high set-up fees; then there is a softer system, based on expertise and a more rapid development. But both experience difficulties…

Georges Plassat has drawn up a list of questions we should ask ourselves before we venture out:

 What is the world market?
It is a different world, of course, which also implies different languages, different town planning schemes, different currencies, different property practices, different attitudes towards consumption, different legal frameworks, different economic maturities… international expansion means giving up absolutely all our daily points of reference, but always bearing in mind that "one is never at home". The local consumer may at any time reject a foreign retail chain. Xenophobia related to the retail chain is always latent, much more so than brand-related xenophobia.

The world market also covers three dimensions: the regional one (e.g. Southern Europe) which is probably easier to grasp, but more and more often development takes place on a continental, or even a global scale (Carrefour).

 What do we export?
A product, a format/a concept, a brand…

 What method of development do we choose?
Franchise, affiliation, chain-store distribution…

 What makes us want to venture out?
Some would say it is all about seizing a market that is opening up, spreading out risks, using one's cash flow, testing our ability to enhance a concept… Georges Plassat does not believe in that. In his opinion there are two types of motives: there is pressure from the market, particularly on quoted companies, but above all development is guided by the ambition of men. Managers dream of new adventures, of travelling, in short, of personal satisfaction…

 What should we avoid doing?
Treading along; being influenced; setting off without a solid domestic grounding; confining ourselves to databases: in order to get a real feeling of the market, we have to experience it ourselves; reproducing the basic model; colonising local staff; running the business from afar; getting off the main point; going in all directions; setting ourselves a timing we won't be able to keep, not sparing our own personnel, being obstinate… Nevertheless, according to Georges Plassat, while international expansion is a manager's dream, it is also important that this dream be fulfilled, a dream which he sums up in a few words : If you move forward, you are dead; if you draw back, you are dead; so why draw back?