German menswear label Digel: We expect a pre-order increase of 10 percent

At Digel, things are now going well with orders in Düsseldorf. The Nagold-based menswear specialist already saw initial trends at the Italian menswear fair Pitti Uomo and in France, where the dates had to be brought forward because of the Olympic Games. Despite a difficult overall situation, Managing Director Jochen Digel and Philippe Célény, Group Sales Director of Digel AG, are optimistic about the current financial year.

In the interview, the two reveal products that are currently doing well, which new markets are being targeted and what expectations the company has for Düsseldorf.

How was the start of the new order round?

Jochen Digel: We have really only just begun. Pitti Uomo is the starting point for us and a good trade fair. We had around 500 visitors at the stand, half of whom came from Italy. That is different from many other German brands that mainly receive either German or other international customers. As an international company, France and Italy are the strongest markets for exports, that is why we also see Pitti as a home trade fair.

Have orders been placed for these markets yet?

Jochen Digel: We've just received the first orders in France. However, because of the Olympic Games, we can't use our Paris showroom as we would like. Our customers can't get a hotel room there, and if they do, it costs x-times as much. Accordingly, the Olympic Games in France in particular have meant that the order timeframe has been brought forward. But Philippe, who is also managing director of Digel France in addition to his role as international sales manager, can certainly say more about the first orders in France.

Philippe Célény: In France, we are on par with Spring/Summer 2024, which was already a good season for us. With Digel and Digel Move, we have two global collections. However, when it comes to generating sales in the summer, there is a strong focus on occasion and formal wear. We are fortunate that the majority of French customers come to us and say: "We had a good season with your products in this segment." Meanwhile, however, the sportswear and casual wear retailers seem to have suffered greatly in terms of sales.

Aside from formal wear, what other collections are selling well at the moment?

Philippe Celeny: As we become more global, we sell more cotton trousers, knitwear and shirts. But jackets also sell well in summer. This is a product category that has not suffered at all because of the climate. With footwear, we also have a relatively new product group that now accounts for eight percent of our total sales. These product groups, which fit very well with the collection as an ensemble, are on the rise for us. Of course, their volume is still much lower than formal wear, but in percentage terms they are the closest to it.

Jochen Digel: Our retailers really buy more brand-specifically. In the past, they ordered a lot from single product specialists. Now they understand that brands like Digel offer a wide portfolio of products such as knitwear, shirts, or even chinos that are coordinated with the suit kits, which they can now buy more easily. Ten years ago, it was much more difficult to sell such things to our customers. This may also be because a few product specialists have gone bankrupt in the meantime - whether in the shirts, trousers, or jackets sector - but you can see in percentage terms that it is precisely these product groups that are increasing the most in our pre-orders.

The jacket is selling thanks to the lack of summer weather, up to what price will retailers go before they start to sweat?

Jochen Digel: In German retail, our jackets cost between 179 and 299 euros. Cotton does play a role for us in the summer, but it's basically about function. When in doubt, it's always the rain jacket or raincoat - covering the jacket - that we sell with it. We also sell blousons, we even go so far that we also offer a blouson in some modular fabrics, because the end consumer then combines it with normal suit trousers.

Philippe Célény: Jackets are part of our collection, but because we brought an expert in the field, Thomas Beller, on board three years ago, the area goes beyond being a supplement to formal wear. Even if the sales volume is more like a supplement, each product is really as refined with his expertise as it would be with a jacket specialist.

What role does the jacket play in summer?

Philippe Célény: It is approximately six percent.

Do you generally notice a certain price sensitivity among retailers?

Philippe Célény: There are two realities: corner price ranges and spur of the moment purchases. And you need both. We often combine corner price ranges with never-out-of-stock (NOOS) and with a system - whether it's a shirt, knitwear, jacket or trousers. The price has to be right. Cotton trousers, for example, cost between 99.95 and 119 euros. With spur of the moment products, the price obviously plays a less important role.

Which products make retailers’ hearts beat faster?

Philippe Célény: Functional products such as jackets and trousers that have added value and storytelling. Or they are products that combine perfectly with an outfit. The jacket and trousers are combined with a knitted counterpart that stands out a bit more. So we are increasingly selling the total look and not in product groups.

Which key fashion themes will determine the SS25 ordering season?

Philippe Célény: At Digel Move we work a lot on fit. Convenience, comfort and a casual attitude are becoming more and more important. Our challenge is to integrate this new fit into the collection. In the NOOS we play with completely different styles with fit, regular, slim fit and extra slim fit and slim fit, which are still selling well. But we notice that this revolution in fit is coming and we need to find our balance. However, we must not forget that we are not Balenciaga, not a trendy company. We integrate trends, urbanity and the contemporary level and turn them into a commercial basis.

What are the expectations for Düsseldorf as well as internationally now?

Jochen Digel: In general, it will not be an easy season again. Spring and summer were simply too rainy. The sales figures for May and June were anything but good for retailers and a few German customers are also planning to reduce their orders. Nevertheless, we also have new sales areas, such as in Italy around Naples. We are starting in Finland for the first time and are developing in America and Spain, where we have been active for a year and a half.

There will be areas that will make parity. There will be areas that will lose a little. There will be areas that, when compared to zero, will make a huge plus. It will fluctuate, but we already see the opportunity for us to score points in our strongest pre-order products - seasonal construction kits and jackets. In this respect, we expect a pre-order plus of 10 percent overall.

Philippe Célény: Düsseldorf is important for our German home market, but also for international markets. More and more Belgians and Dutch people are visiting the location, a few from Switzerland, and many customers from the Middle East and neighboring Eastern European countries.

You only sell directly through your webshop. What proportion of Digel's business is e-commerce?

Jochen Digel: Online is a good topic for us, but not a huge topic. It's a lot about price comparison and, above all, cheaper prices. That doesn't exist in our online shop. We keep our recommended retail price, otherwise our customers would think we were crazy if the products in our online shop were cheaper than in their stores. We leave that up to the online retailers. For us, it's more about showing the whole portfolio, the brand presence and everything else. It's not about maximizing sales or contribution margins. That's why online isn't a huge topic for us. Sales there are less than two percent.

Philippe Célény: We are building up our digital network step by step. We are currently present in Germany, Austria, Belgium, France and Italy.

Jochen Digel: Nevertheless, we have recently had a problem with fake online shops from Hungary and other regions. But this is not just a Digel issue. There are certainly other providers who are more profitable to copy than to target our online shop.

Did you take action against it?

Jochen Digel: We have commissioned an agency to close these.

Finally, what are the expectations for the rest of the financial year?

Philippe Célény: We no longer want to refer to the year 2019 before the pandemic, but make our record year 2023 the new benchmark. It is very challenging, especially in these times, but our goal is to remain at the record level of 23 by the end of the year.

This article was originally published on FashionUnited.DE, translated and edited to English.