On May 20th, Ángel Burgueño and Daniel Ruiz from Dándara visited the Carlos III University of Madrid to present the MaDI students the international expansion of Dandara by franchising internationally. Dándara has shops in Spain and has also presence abroad, in countries such as Costa Rica, Chile, Switzerland, Qatar or Romania. During the last year the firm has opened fifteen shops that in sum suppose a distribution network of ninety sale points.

Dándara was born in the Spanditex SA group, a firm settled in the textile sector with thirty years of experience manufacturing and distribution of fashion for other brands. Dándara was created as a way of selling with their own brand, which started the expansion via franchises in 2002 and has continued growing from then. In the same group operate other brands such as Privata, which has been acquired recently in order to repositioning it, and maintain the production for third parties such as Dolores Promesas, Felipe Varela and El Corte Inglés.

Franchising internationally

The enormous potential of the firm has made that the Royal family of Saudi Arabia has shown interest for the expansion of the brand in this country via a contract of master franchise. Nevertheless, the growth of Dándara has been progressive and based on the optimum management of the production, logistics and competitive prices. They combine quality and quickness to follow the trends of the market, and betting for the production in Madrid.

This has allowed them to avoid a dependency from subcontracting the production. Moreover, the management of the different parts of the value chain has also allowed the adaptation to the cultural differences among the countries in which operates. In fact, since four years and because of the increase of prices in China, their managers decided to bring back the production to Spain, which also allows them to take advantage of the made in Spain so appreciated in Latin-American and Arabian markets.

Ángel Burgueño posited in the conference what supposes for a firm competing with firms such as Zara or Mango. Thus, although a strong competence implies some difficulties, it has allowed Dándara the development of different skills for answering the competitive pressures in the industry, and to leverage the recognition of the Spanish brands in the fashion industry internationally. The advice that Ángel Burgueño and Daniel Ruiz gave MaDI alumnae was to make a good work and keep the confidence in projects well designed in order to be as realistic as possible.

They warned our students about the difficulties in searching opportunities in foreign markets, but that these difficulties are the same independently the nationality you have. Furthermore, an educational background in international management, foreign markets and international commerce is without any doubt a bastion that they should not waste in order to take the best decisions in locations and entry modes. From MaDI team we thank both of them for their participation in the workshop and their valuable comments.