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Money on the catwalk

The tendency to business concentration is inevitable, but that talent is not spoiled by lack of capital

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Money on the catwalk

Each market in Spain, each relevant economic activity, presents, except for exceptions, unmistakable landscape of smallholding. The companies tend to be small and, in character associated with ir size, y tend to be infrafinanciadas, circumstance that greatly limits its expansion. It is characteristic in addition to a part of Spanish companies — SMEs are most important part of center and, by way, most tax companies pay in relative terms — exhibiting a kind of bias or taste for excellence, which determines The company's own volume. Consider Spanish gastronomy, among first by quality of world, formed by Cook-entrepreneurs who are overturned in quality of kitchen, but not so much in consolidation of company; and consider fashion for example. Many dressmakers and dressmakers are able to develop a great technical and artistic quality, but ir companies can not compete in a vented condition, with exception of Inditex or Mango and perhaps a third or fourth group in attendance. Perhaps problem is that fashion is in principle aimed at a high-end demand that markets tend to move closer to average consumption.

For cases like Spanish fashion re is risk capital. The penetration of funds into fashion groups cannot miss anyone. Because obvious problem of size is to add an originally familiar character. Family businesses often need a successor; Although problems of succession have been greatly magnified (in 1980s y became apologies and obituaries of family sagas), because that successor does not have to be family, often hereditary tensions weigh or overwhelm and a Solution can be sell. We are faced with a succession of myths; Because sale abroad of family does not amount to a loss of virtue of company. First, because mark remains; Then, because it is possible to replace talent with anor, and, in short, because technology and market diversification can help in transit. All this is a recent history of societies that passed through trance, from which lessons can be drawn; Which does not take away so that transition from a family or personal company to anor of different characteristics is not a delicate moment.

The tendency to business concentration is inevitable; The fashion establishments live in a delicate balance in which it is essential to open stores in designated places, usually expensive, because not only need to maintain and increase sales, but keep on top image of a brand that, Even in cheapest garments, it feeds on a presumption of glamour. But that is only possible not only with a rationalization of spending, but with disposition of capital. It is difficult to reduce costs without investing in technology, even to manufacture garments of undisputed elegance or artistic vocation.

In end, personality of The Dressmaker and scrupulous care applied by family businesses reach stretch of path in which y play a decisive role in preparation and dedication of boards of directors and ability to capture capital with Profitable projects. Capital is valuable in this section: concentration and takeoff. That talent is not spoiled by absence of money.

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