TOGETHER WE STAND STRONG PARTNERSHIP STORE BROCHURE

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1 TOGETHER WE STAND STRONG PARTNERSHIP STORE BROCHURE

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3 PARTNERSHIP STORE BROCHURE INDEX VisiON STIRRING UP EMOTIONS SUCCESS WITH A STRONG BRAND FROM 0 TO 200 IN FIVE YEARS INDEPENDENT WITH SOLID SUPPORT Concept HAND IN HAND TOWARDS SUCCESS Our contribution / your contribution You as a partner Your partnership store Customer satisfaction Stock management Staff policy MEASURABLE SUCCESS Your potential turnover Your investments Your profits The collection YOU CAN COUNT ON US A strong brand Individual assistance INFORMATION AS THE KEY TO SUCCESS Your reporting Your software

4 KIPLING TODAY every day young REAL FEMININE ICONIC EVERY DAY casual stylish COLOURS unique INSIDE OUTSIDE Surprising SPORTY Young Logo Feminine Casual Everyday Functional Colours Iconic Quality Stylish Real Spontaneous Monkey Universal Inside/Outside Active Sporty Generous Unique Surprising

5 STIRRING UP EMOTIONS VISION Kipling... attracts customers in various ways. For example, they can be convinced of the quality of your product through logical thinking, which is very important. Another approach, which is equally if not more important and guarantees long-term results, is winning people s hearts, fascinating and enthusing them. A difficult task? Not really. Kipling bags capture the attention: people stop, look and come into the shop. The secret of this success? Kipling s extensive range of designs and of course the brand itself which, since its inception, has stood for great bags for all women, all events and all occasions. Our customers appreciate the quality of our products, good advice and extensive service. They like Kipling s style, design and colour palette. They can t wait to discover the latest products. Above all, they love the magic Kipling exudes, a magic which comes to life in the partnership stores. A visit to a Kipling partnership store is a trip to the magical world of Kipling, where customers step into in a lush environment, surrounded by elegant bags and accessories. 20 years ago... Kipling was founded in Belgium over twenty years ago and was privately owned until Even two decades ago, Kipling design already incorporated all the elements that make the brand so unique today: distinctiveness through design and high quality at affordable prices. At the time, Kipling had 23 flagship stores and 64 partnership stores. Today, the brand has more than 200 mono-brand stores worldwide, helping millions of customers find all types of casual bags and accessories, year after year. Today s Kipling bags are even more eye-catching thanks to a combination of distinctive Kipling style and our designers futuristic fashion sense. Kipling is now owned by VF Corporation, the world s largest clothing company, which also owns brands such as Napapijri, Lee, Wrangler, 7 for all Mankind, Eastpak, The North Face, Vans and Reef. This takeover should enable Kipling to achieve its growth plans at an even faster pace and to establish itself as a permanent icon in the world of casual and fashion bags.

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7 SUCCESS WITH A STRONG BRAND VISION A success story, full speed ahead People all over the world associate Kipling with bags: from handbags and accessories to fashion and travel bags, as well as rucksacks. And wherever bags are considered essential, Kipling feels at home. Our staff of over 150 employees is fully dedicated to the brand and ensures that our customers are satisfied and our turnover is always on the rise: our 2008 turnover was double that in 2004! Our sales offices support flagship and partnership stores selling Kipling bags and accessories directly to consumers in more than 40 countries worldwide. An unrivalled combination of quality and design, excellent product quality and the commitment of our partners all contribute to our great success. In short: our partners and consumers all over the world have faith in Kipling. Not only do they feel the power and magic of our products, they also appreciate the brand s reliability. And that great feeling is of utmost importance for all our customers! A strong connection Many people are so impressed with Kipling that they want to forge a strong bond with our brand by registering as Kipling consumers on our website. This enables them to receive regular updates on the latest launches and products, as well as important news. Obviously we want our partners to benefit fully from these loyal consumers through our special system, developed especially for you. More information will follow later in this brochure.

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9 FROM 0 TO 200 IN FIVE YEARS VISION Shop openings When Kipling launched its first bags and its first collection of branded travel items in the 80s, it wasn t long before exclusive Kipling stores with specific Kipling architecture opened their doors. At first, Kipling products were only sold in shops offering other brands as well. From 1989 onwards, when the first Kipling store was launched in Belgium, our customers got their first taste of complete immersion in the world of the brand. By the end of 2008, Kipling already had about 42 stores in Europe and over 200 worldwide. Apart from our own Kipling stores, another sales channel proved very successful: the Kipling partnership store. From the outside, this store is no different from a flagship store. In terms of architectural design, product range, high-quality advice and service, the overall shopping experience is exactly the same. However, the partnership store is managed by an independent partner. And that could be you! Your customers will undoubtedly enjoy shopping at your partnership store as much as they enjoy visiting a Kipling flagship store. You will benefit from the brand s image and power, as well as our experience and support. The first Kipling partnership store opened in Spain in late There are currently more than 15 of these stores exclusively selling Kipling products throughout Europe. Een indrukwekkend verloop young and enthusiastic entrepreneurs set up the company 1988 Great success in Belgium and initial success in the Netherlands 1989 Kipling opens its first mono-brand store in Belgium to great acclaim 1990 Kipling begins to make its mark internationally, rapidly and convincingly conquering countries such as France, Italy and Spain 1993 Kipling comes under new ownership but remains a private company and continues to expand its turnover 2003 The first independent Kipling partnership store opens in Spain, thus launching a new sales channel 2004 The mega concern VF Corporation acquires a 100% share in Kipling, a first step towards doubling the brand s turnover 2006 To reinforce the brand s consumer image, an integrated marketing concept is launched: advertising, communication, visual merchandising and product design are carefully coordinated under the watchful eye of Kipling Vice-President Isabelle Cheron 2008 The marketing concept is further developed for the entire bag collection and becomes the basis for new marketing campaigns. Three ambassadors represent Kipling s three core values: quality, fashion/casual and technology. They are also a symbol for the company s future

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11 INDEPENDENT WITH SOLID SUPPORT VISION As a Kipling partner and owner of your partnership store, you will be independent. Only you will be responsible for your partnership store, your stock and naturally your staff. But your great advantage is that you are starting off with a strong brand and can count on our full support. Kipling regularly invites all partnership store owners to share information and experiences with each other. During these gatherings, the latest product collections are presented, strategic developments are discussed and explained, and various aspects of day-to-day management are highlighted. Moreover, we will help you plan and decorate your partnership store. We will provide advice and support on your day-to-day activities, marketing, communication and business economics. Kipling s global communication activities and the communication material available in the local stores (which Kipling refers to as points of sale or POS) will be perfectly coordinated. As a result, you will benefit from great synergies. The stronger Kipling becomes, the stronger your partnership store, and vice versa. Your partnership store will offer you a perfect mix of independence and security.

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13 HAND IN HAND TOWARDS SUCCESS ConCEPT Our contribution/your contribution Naturally, one of the most important contributions to come from both parties is good collaboration, to be built on various factors. A breakdown of responsibilities is given below. We will also give further details of certain aspects of each party s financial contribution. Our contribution Decoration of the partnership store according to the Kipling concept for fixtures, lighting and Kipling sign (interior and exterior) Training of sales staff and shop managers, min. four times a year Marketing support. Kipling will invest in sales materials, visual merchandising, incentives and CRM. Kipling will also be responsible for efficient PR and communication. For the first two years, Kipling will be responsible for marketing investments (up to a maximum of 6% of the planned purchasing value of the turnover). We will sign a partnership store contract with you, outlining our collaboration and offering support if you wish to obtain services from third parties. Your contribution Premises, rent and, if necessary, key money. Decoration of the store: flooring, ceiling, façade etc. Investing in an efficient cash register/back office programme. Appointing a shop manager exclusively responsible for the Kipling partnership store. Appointing sufficient staff members in line with the sales plan. Purchasing goods, twice a year according to the merchandising plan. Staff recruitment and selection according to the profiles supplied by Kipling. Staff costs. Full cooperation in all marketing and sales-boosting projects initiated by Kipling. From the third year after the store s opening, an equal share in marketing investments (3% of the purchasing value).

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15 HAND IN HAND TOWARDS SUCCESS ConCEPT You as a partner (experienced entrepreneur) Kipling s ideal partner is An entrepreneur with several years experience in retail, particularly fashion (shoes/clothing/accessories) A self-employed entrepreneur who knows the local market and is willing to work according to Kipling s guidelines An entrepreneur who is proactive, responsible and professional and foresees no problems in collaborating according to the guidelines of a mono-brand like Kipling. An entrepreneur with sufficient funds or the ability to obtain the necessary funds to open a Kipling partnership store. Your Partnership Store Locatie requirements A1 location (high-traffic location) minimum two to three million passers-by per year Sales surface area of 60 to 80 m2 Surrounded by fashion stores, both mono-brand and multi-brand stores General presentation of the store, decorated according to Kipling guidelines Windows Collections Presentations relating to all actions Staff presentation Dress code Competence Product knowledge Good communication skills and appearance Salesmanship

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17 HAND IN HAND TOWARDS SUCCESS ConCEPT Customer satisfaction Sales Sales according to the five-step sales plan 1. First impression and welcoming the customer 2. Discover the customer s needs and entice him or her with the offer 3. Present the world of Kipling products 4. Elegantly close the sale 5. Leave a lasting impression Discount/Sales Kipling adopts two sales periods a year for its own shops (generally January and July). The brand also has a proactive marketing plan to approach consumers in a correct and commercially interesting manner. As a partner, we ask you to follow our approach. After-sales service 1. Exchanges and refunds Exchanges within 8 days after purchase, if items are unused. We prefer to offer vouchers instead of refunds. 2. Guarantee and repair guidelines All products carry a two-year guarantee on stitching, seams, discolouration and other possible manufacturing errors. 3. Kipling also has an international policy covering: Guarantees guarantee procedures Repairs Repairs procedures We will discuss these with you personally in due course.

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19 HAND IN HAND TOWARDS SUCCESS ConCEPT Stock management Products, styles and presentation Products are launched a minimum of four times a year. They are subdivided into two seasons (spring/summer & autumn/winter). Ordering procedure A minimum of twice a year, a collection is spotlighted in the showroom. 70% of the orders need to be placed immediately for this collection. The other orders are made through a repeat order. All orders are placed through our customer service department. Deliveries Regular products can be kept on back order. Seasonal items, on the other hand, can only be on back order for the duration of the season in question. Leveringen Pre-sales orders are delivered according to the merchandising plan. In normal circumstances, repeat orders are delivered within five days, if in stock and in case of orders exceeding 400. Stock, storage Close to the shop floor there needs to be an area for stock and shop material storage, which must be easily accessible both for staff and goods deliveries Inventory of stock, balance An inventory must be taken at least once a year Kipling gift voucher Kipling will supply the shop with gift vouchers which can be sold in-store. They can be used only in the shop where they were purchased. These gift vouchers are not valid in other partnership and/or flagship stores Ordering goods which are not part of the in-store collection Products and/or goods which are not part of the collection purchased by the store, but which do carry the Kipling logo, can only be purchased after discussion with Kipling. These items can only be purchased by the store with written approval from Kipling.

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21 HAND IN HAND TOWARDS SUCCESS ConCEPT Staff policy The partner will at all times be responsible for staff recruitment and all related tasks and activities. Kipling will provide the partner with input and feedback on the recruited staff. House rules Monthly time sheets should be drawn up with the names and working hours of all staff members. They can be drawn up by the partner or by the shop manager appointed by the partner. All rostered staff members should be in the shop 10 minutes before the shop opens The cash register should be balanced only after the shop has closed. As far as possible, all staff members should be given two 15-minute breaks and a 30-minute lunch break during a working day of a minimum of 8 hours. Theft and/or fraud shall result in automatic dismissal. A police report must be filed. All staff members shall be personally responsible for their good appearance on the shop floor and for good personal hygiene. The use of mobile phones, laptops or other personal belongings is strictly forbidden on the shop floor. Moreover, computers, laptops, telephones and other business-related devices are strictly for business use. Smoking on the shop floor is strictly prohibited. The same applies to alcohol and drugs. Eating and drinking on the shop floor is not permitted unless staff members are alone in the shop. Refreshments should always be taken when the shop is not busy. In the case of theft in the store, a police report must always be filed. The partner is solely responsible for filing this report

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23 HAND IN HAND TOWARDS SUCCESS ConCEPT Recruitment and selection The partner shall be responsible for recruiting and selecting staff members according to the profile provided by Kipling. Job interviews shall always consist of two interviews, the latter being the final interview which is always attended by a Kipling staff member. After the second interview, the partner and Kipling will jointly discuss their opinions. Once a decision has been reached, the shop manager or partner will inform the applicant of the outcome. The final decision always lies with the partner. The partner draws up a contract of employment. Preferably, temporary workers will not be used unless there are no other options. Temporary workers are employed only on one month contracts. The shop manager shall be responsible for the store s general management; he or she will manage the staff and, if necessary, draw up the time sheets. The shop manager is also expected to motivate and encourage the staff and to deal with all administrative matters. The shop manager should also be a top salesperson and is always responsible for KPIs. A salesperson shall be appointed for all daily activities in the store, not only sales, but also all other matters. The salesperson must always follow the instructions given by the shop manager, partner or Kipling staff members. As salespersons, temporary workers shall also be responsible for all daily activities in the shop. Temporary workers must always report to the partner. After the opening hours have been determined, the working hours shall be decided. Based on these working hours, the partner will draw up the time sheets. The partner shall decide how to deal with staff overtime. Kipling s preferred approach is compensation. The partner shall be responsible for payroll processing, as well as drawing up and completing the timesheets. Every staff member can request leave. The shop manager and/or partner will decide whether to approve this leave according to the available days and the planning.

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25 HAND IN HAND TOWARDS SUCCESS ConCEPT Every staff member shall be personally responsible for informing the partner and/or shop manager in good time in the event of pregnancy. This requirement enables the partner and/or shop manager to recruit another staff member for the duration of the maternity leave, temporarily and for a fixed timeframe. The partner will always consult with all staff members to find possible solutions for the situation at hand. In the event of illness, every staff member, shop manager or temporary worker must report in sick to the partner as soon as possible and before 9 am. During the staff member s absence, the sick staff member, his or her (in)direct relatives and/or partner, shall keep the partner and/or shop manager informed of developments. The shop manager and/or partner is then responsible for replacing the sick staff member. Once a year, the shop manager and sales staff shall have a performance interview with the partner. During this interview, all parties will be allowed to voice their concerns. Agreements and targets may be set. Moreover, once a year (in mid-june) appraisal interviews shall be held and once a year (in mid-jan/feb) target interviews, during which targets shall be fixed according to the SMART method. The partner shall do everything in his power to honour all agreements made during these interviews. The same goes for the salespersons and/or shop manager. The partner shall be responsible for key management. The partner shall also be responsible for the alarm protocol. The partner shall be solely responsible for the purchase of goods by his or her staff, the conditions for such purchases, as well as fiscal legislation and other issues related to purchases made by staff members. Depending on the number of employees working in the partnership store, the law requires that there should be at least one person in-house who possesses a safety supervisor diploma. The partner is solely responsible for the appointment of such a staff member. The partner shall at all times be responsible for the health and safety of his or her staff. This includes physical stress, hold-ups, fires, sexual harassment, aggression and violence

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27 MEASURABLE SUCCESS ConCEPT Your potential turnover What is the potential turnover of a partnership store? As an entrepreneur, this is undoubtedly one of your main concerns. It is also very important to us, as brand owners, because our goal is your success as manager of a partnership store! Hundreds of partners have already proved that the innovative Kipling products generate an attractive turnover potential. As potential turnover depends strongly on location and sales surface area, we cannot provide you with general figures. However, before you make a final decision on whether or not to run your partnership store, we will give you a turnover estimate based on our experiences in the area and in similar locations. You can also count on us for support and advice on all other matters related to financial planning. Naturally, however, we cannot give any guarantees. Your investments When opening your partnership store, you will be required to make a number of investments entailing a certain risk. The required investments depend on the size and decoration of the store. Moreover, funds are required for purchase of the initial stock and as a guarantee of sufficient operating capital. The size of the investment depends on the potential turnover of your partnership store. The exact figure can only be determined once a specific project is on the table, but experience has shown that your investment should be between 100,000 and 200,000 euros. Sound financing and sufficient personal funds are therefore the key to a successful start. Your profits Your purchase margin depends on your annual turnover and your fulfilment of the agreed payment terms. The higher your turnover, the more attractive the conditions we can offer you. Moreover, we give you the option of increasing your future gross profits further through variable, result-dependent bonuses. Through this margin and payment scheme we want to encourage and reward you for your entrepreneurial skills. And lastly, particular efforts deserve particular rewards, which we will gladly explain to you personally at our first meeting. Collection Our collection currently comprises bags and accessories. All other licensed Kipling products are not sold in the Kipling stores. Moreover, every season the collection is geared to the merchandising plan. This includes the permanent basic collection, as well as seasonal collections, which always end at the end of the season.

28 L O Y A L TY CARD Een sterk merk CRM Loyaltycard GWP promos Press clippings attitude included GET THE KIPLING AT T I T U D E Wil je genieten van talrijke voordelen? Wens je op de hoogte gebracht te worden van alle nieuwe Kipling collecties? Ontvang je graag Kipling nieuws en informatie? En word je wel eens graag verrast? Vul dan snel deze gegevens in en geef af aan de kassa van je Kipling Store. De Loyalty Card is alvast voor jou! Breng je Loyalty Card zeker mee bij elk bezoek aan je Kipling Store. hier is je persoonlijke kipling loyalty card SCHRIJF JE NU IN! JA, Ik wil s op maat ontvangen over Kipling collecties, promoties en andere commerciële acties. Ik ontvang een welkomstmail met een kortingbon van 10% op mijn volgende aankoop. Achternaam Voornaam Straat Huisnr. Toevoeging Land Postcode Woonplaats Geslacht Man Vrouw Geboortedatum Taal NL FR Handtekening Datum en plaats hier is je persoonlijke kipling loyalty card GET THE KIPLING ATTITUDE Beste <perso>, Jij en je tas: een onafscheidelijk duo. Als geen ander accessoire, verraadt hij jouw persoonlijkheid. Trendy, praktisch en ongedwongen. Je Kiplingtas weerspiegelt jou, voor 100%. attitude included We sturen je hierbij jouw gloednieuwe Loyalty Card... De Kipling-Loyalty Card is meer dan een getrouwheidskaart alleen. Wie wil er niet genieten van talrijke voordelen? Of op de hoogte gebracht worden van alle nieuwe Kipling collecties? Natuurlijk ontvang ook jij graag Kipling nieuws en informatie. En misschien word je wel eens graag verrast? Deze Loyalty Card is alvast voor jou! Vergeet ze niet mee te nemen en te tonen bij elk bezoek aan je Kipling Store. Tal van verrassingen wachten op jou! Maar er is meer... We willen van de gelegenheid gebruik maken om jou beter te leren kennen én te zien of de informatie die we over je hebben, klopt. En daarvoor willen we je belonen: ga voor 31/12/2008 naar je favoriete Kipling Store en breng dit ingevulde en gecontroleerde documentje mee. In ruil ontvang je een leuk cadeautje! Met vriendelijke groeten, Anja Desmedt Relationship Manager Kipling ja, ik wil communicatie op maat ontvangen over Kipling collecties, promoties en andere commerciële acties. Achternaam Voornaam Straat Woonplaats Land <perso> <perso> <perso> <perso> <perso> <perso> CORRIGEER, VUL AAN... EN ONTVANG EEN TOF CADEAUTJE Geboortedatum / / man vrouw Taal NL FR Ik koop Kipling vooral: om te reizen om uit te gaan om te gaan werken voor mijn dagdagelijks leven om te shoppen Handtekening Mijn lievelingscollecties zijn: basic/if vintage hip vintage leather city thrill g*rilla girlz Datum en plaats Loyaltycard_mailing_DEF.indd 1 10/27/08 2:59:08 PM

29 YOU CAN COUNT ON US ConCEPT A strong brand Kipling attaches great importance to a careful approach towards the brand. We therefore offer you comprehensive support and ensure that all activities are perfectly coordinated: marketing and PR, as well as visual merchandising and POS activities. Twice a year, for every new collection, Kipling develops a suitable global marketing/communication programme. In line with this programme, we then develop the national marketing campaigns and POS activities for your partnership store. Our retail calendar is a guideline for all campaigns to be launched during the year according to a fixed timeframe. Additional local marketing activities are possible but must first be approved by Kipling. Customer Relationship Management Direct communication with customers is vital to Kipling and appears to be a very measurable and successful approach. Every customer entering a Kipling or a partnership store should be given the opportunity to register for the loyalty programme, which benefits both the customer and us as a company. Customers are rewarded with a 5% discount on their purchases and receive regular updates on Kipling collections, promotions, competitions and loyalty actions. Kipling has set up a customer lifeline to contact customers at important moments in their lives, giving us greater visibility. At the start of every season you will receive an overview of the communication and the themes to be addressed with during that particular season. PR and Advertising Our core communication activities support optimal brand management: this includes the wide field of corporate communication, global PR activities and image-building campaigns, as well as targeted advertising campaigns for specific products. All general communication and advertising material always includes the addresses of the partnership stores beside those of the flagship stores. Visual merchandising in your partnership store In the run-up to the opening of your partnership store, our visual merchandisers will help you decorate your shop and shop windows. You will also receive comprehensive introductory training. After the opening, you will be responsible for ensuring that the exterior of your partnership store continues to meet the Kipling criteria. Should you require any help in doing so, you can count on our visual merchandisers support during the execution of the various campaigns. Moreover, we will always provide you with up-to-date communication and POS materials geared to the ongoing Kipling marketing campaigns, such as a window calendar and visual merchandising guidelines for each decorated window.

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31 YOU CAN COUNT ON US ConCEPT Individual assistance As a partner, you can count on the advice and support of experienced Kipling staff. Bedrijfseconomisch advies We will advise you on all business economics questions and issues, from financial planning to the drawing up of a business plan or your profits and investment planning. Your training programme An experienced and well-informed team is essential to the success of your partnership store and will help you meet your customers high expectations in terms of both service and advice. To meet this aim, we regularly offer individual training programmes for both yourself and your employees. Our mystery shopping for you The aim of mystery shopping is to optimise and improve the quality of your service and sales on an ongoing basis. It also ensures that the flagship and partnership stores are presented in the same manner. From time to time, mystery shoppers will visit your partnership store and our flagship stores to analyse the main aspects as defined by Kipling, such as the sales talk, window decoration and furnishings.

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33 INFORMATION AS THE KEY TO SUCCESS ConCEPT Your reporting Reporting and exchange of information are key elements of our concept. Your turnover is the basis for optimal support on the composition of your collection, as well as your marketing and visual merchandising material. We can give you timely feedback and explore the options with you if things don t go according to plan or you are not fully achieving your potential turnover. We would be glad to discuss this further in person. Your software In order to establish a fruitful collaboration, we will recommend suitable standard software to allow for smooth business operations and simple analysis of your indicators. Moreover, this software will allow for easier data processing and transfer, e.g. for reporting purposes. It will also give you easy access to data on new collections, such as article numbers, photos and prices.

34 CONTACT US Curious to find out more? If you are thinking about opening your very own partnership store, don t hesitate to contact us! We would love to get around the table to discuss the options. Kipling VF EUROPE bvba C. Van Kerckhovenstraat Bornem - Belgium partner@kipling.com For more information about Kipling go to

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36 The Art OF Being Outstanding Without Standing Out