Bright ideas

keeping it in the family

Meet the Dane who, with relatives’ help, has brought BOConcept furniture to the South of France

words by Christopher Follett

What began as an experiment for a four-strong Danish family team has seen their business become one of the biggest Scandinavian furniture success stories since IKEA. When Ole Bjerregaard and daughters Malene and Helle, plus Helle’s husband Serge, became franchisees of international interior-design chain BoConcept in 2003, they had no idea just how popular the brand’s lines were going to be with the style-conscious residents of the South of France.

“We opened our first store in the Cote d’Azur in November 2003 and a year later we opened in Marseille,” explains Ole. “Our latest opening was in March in Monaco. We believe there is potential for another six to eight BoConcept stores in the region, so we are constantly on the lookout for new locations.”

BoConcept Southern France – the Bjerregaards’ franchise – employs a staff of 30 across its three shops. Turnover last year was around €8m and expected turnover this year is around €10m. The Bjerregaards have now set their eyes on southeast France as the location for one of their new outlets. “Montpellier is an interesting area for our next store, but a prime location is our first priority and we won’t compromise on this,” says project leader Malene, who is based in Copenhagen and takes care of overall product management. “We have exclusivity in the South of France and our goal is to open stores from Monaco to Perpignan.”

The franchise project was the dreamchild of Ole, who 25 years ago founded a furniture business in the United States. He saw back in 2003 that the French market for contemporary furniture was untapped, so secured the franchise for BoConcept. The word ‘Bo’ means ‘living’ in Danish and BoConcept’s chief aim is to make high-quality, modern furniture accessible to a wider audience.

With headquarters in Herning, mid-Jutland, Denmark’s BoConcept has more than 180 stores and 160 studios in 43 markets selling furniture around the globe. A listed company, BoConcept Holding forecasts a DKK 50-55m pre-tax profit in 2006 on expected turnover of DKK 1.06bn.

The company estimates that setting up a franchise requires €300,000-€600,000 in capital depending on location.

“The major difference between doing business in France compared to the USA is the competitive situation,” says Ole. “The USA is a huge market and everybody wants a piece of the cake. So far, in our areas of France, the competition is limited. But we know this won’t be the case forever. We have to be ready and not just lie back and enjoy the success.”

But what was it that attracted the family to invest in a franchise rather than going it alone? “In today’s international furniture market it’s important to have substantial buying volume, and the franchise concept is a good way to be an important buyer,” Ole explains. “You have people who look into all the details, which is necessary if you want to be successful. But, of course, it’s crucial that you believe in the concept.”

Of the brand’s competitors: “Habitat is the one that comes closest to BoConcept in terms of price and design,” says Helle, who, with her husband Serge Cayzac, is the French-based manager and runs the stores on a day-to-day basis.

”Then again,” she adds, “you compete with all furniture stores, including Roche Bobois, Fly, Cuir Center and so on. You just have to be a little better than your competition, but we at BoConcept are lucky in having quite excellent staff.

“Looking at the market and assessing the experience of BoConcept’s first company store in Paris, launched in 1993, Dad guessed quite rightly that modern quality furniture was in short supply in France,” she recalls. “The French, who are conservative about interior design, seemed to be some years behind other countries as regards a taste for stylish, contemporary furnishings.”

While Ole brings his lifetime of experience in furniture retailing to the team and Helle and Serge, invaluable local knowledge, it is Malene in Copenhagen who liaises with the firm’s headquarters in western Denmark.

“They shepherd us closely,” she explains, “providing us with indispensable support in planning, marketing, logistics and design. There’s even a BoConcept University which runs training courses for staff and a BoConcept Power Book (for staff only), a bible for franchisees, which sets out corporate branding strategy and ensures a strong worldwide concept for the group. Basically anyone with the cash can open a franchise, but the location is all-important.”

“There are upsides and downsides to being a franchisee,” says Helle. “Although there are some areas where you might like to have done things differently, you learn you have to follow the overall concept. But with BoConcept there’s such a wide variety of products you can adapt or vary stock to take local cultural differences and market needs and taste into consideration.

“Apart from the local French clientele, we also have to bear in mind the needs of the many British and Danish residents in the area with retirement or holiday residences to furnish.”

According to Helle, in many ways it doesn’t really matter where you decide to do business.

“If you have a good concept,” she smiles, “you can be successful anywhere in the world because, wherever you go, you’ll find people interested in stylish, contemporary furniture.”