With almost 30 million consumers, Benelux is an underestimated market and represents a growth opportunity for domestic and foreign brands and retailers. Especially within the fashion industry, which is getting back on its feet after it was hit by the covid-crisis. Focus on Benelux – fashion trends, sustainability, distribution channels, payment methods… – with Kris Vijverman, Managing and Legal Director of Webhelp Payment Services Benelux, who shares his expert vision of the market.

What is the importance of the Benelux market in Europe and worldwide?

The Benelux represents an economic area of almost 30 million consumers with a per capita income in each of the three countries that is well above the EU average. A good functioning Benelux market is thus very attractive for both domestic and foreign companies. The Benelux retail market is an underestimated powerhouse brimming with important economic and social contributions towards society, and many business opportunities for retail companies across various sectors. In the Benelux countries, retail industry is the beating heart of economy but as in many countries, retailers have also been struggling since the Covid-crisis.

What would be your advice to retailers to be successful in the Benelux market?

Retailers need to be supported in achieving enough scale, as rising costs, global competition and digital transformation are often forcing them to grow. This is necessary for their survival. In addition, policy and regulation are important and require good framework conditions and adequate regulation. To be successful – be it exclusively offline, online or with an omnichannel approach – retailers need to succeed in certain activities:

  • drive traffic to their shops thanks to attractive, visible and easily accessible locations,
  • encourage people to buy rather than just look. For this, it is crucial for retailers to have a deep knowledge of their customers’ behaviour and expectations,
  • organize their supply chain well: retailers need global access to wholesalers and manufacturers, with a minimum of administrative and operational barriers to transporting and delivering goods.

What fundamental changes have you observed in recent years from a consumer’s perspective?

The biggest change is the behaviour of consumers themselves. Consumers are becoming more and more used to all available technological changes. Following the widespread adoption of the Internet and mobile devices, shoppers increasingly have instant access to the latest trends and new products, product reviews, and a detailed list of relevant retailers. It implies that consumers have a much more transparent overview of the available offer and associated service elements, such as delivery and price. More than 50% of Benelux shoppers now mix online and in-store experiences when they purchase products or services.

What are the peculiarities of the fashion market in the Benelux?

Unlike Spain or Scandinavian countries, the Benelux market does not really have a specific style in design and fashion. The judicious choice of raw materials and attention to detail (shape, cut, motifs, colours) are obviously important assets for consumers. In the fashion sector, on the other hand, consumers still prefer small multi-brand shops that mainly select what their customers like. This dense network of multi-brand shops throughout the territory is an asset for foreign designers. After all, they can launch themselves on this market with limited collections. Flanders, for example, is a region with considerable consumer potential (high purchasing power, low unemployment rate, etc.).

Has the Benelux market been hit hard by the Covid-19 crisis and has the fashion market fully recovered? 

With much of the world under Covid-19- related restrictions through 2020 and 2021, the global fashion industry has faced exceptionally challenging conditions. But after nearly two years of disruption, the industry is beginning to find its feet again. However, large numbers of companies will continue to struggle to create value — and, in some cases, survive — as the bruises of the crisis linger on. It is clear that retailers who entered this crisis relatively weak and who carry debts from previous investments will find it very difficult if the support measures are removed, which is generally the case today. There is a strong fear of new bankruptcies and job losses in the coming year. Fashion retailers were among those that invoked the moratorium to avoid having to repay their bank debts, but this period has now ended.  Shops are also left with historically high unsold stocks. Fortunately, the pandemic is now under control and shops are once again achieving “normal” turnover levels. However, it will be different than before. A larger part of the business will consist of online sales. Some shops saw their online sales double in the past year, so staff must also have digital skills.

Has the trend towards sustainability also been broken?

I have thought so a few times. Consumers are becoming more critical: less chemicals, less water, adjusted cotton… – these weigh in on the price. For the high-end brands, that is not an issue, but consumers are not always prepared to spend more on their clothes. After all, the current energy crisis and political instability are leading to a sky-high inflation of around 10%, which is having an impact on consumption patterns and will reduce sales in the medium term.

Is the decline in sales the biggest fear of agencies and brand suppliers?

No, the decrease in volume is not the major problem for them, but the risk of non-payment is. This is where the services of a payment services provider such as Webhelp Payment Services really come into play. Throughout the entire process, from screening to final collection, Webhelp Payment Services provides tailor-made advice that leads to the best result.
Prevention is more important than cure. In this pandemic crisis, our experts have played a hugely important role for both the supplier and the customer in finding a solution for many problem situations. Webhelp Payment Services Benelux has more than 35 years of experience in the niche of the fashion sector, and it’s a fact that the expertise we have built up provides an answer to every crisis. In consultation with the supplier and agent, we give advice after analysis of the debtor. Our years of experience and knowledge of the client on the Benelux market is an undeniable asset. Moreover, it is a permanent challenge for Webhelp to always strive for the best service thanks to a hybrid approach combining human expertise and advanced technology.

You mentioned that the risk of non-payment is the biggest fear: what are the preferred payment methods in Benelux?

We have a Sepa B2B mandate in portfolio for more than 1,000 retailers. For all these particular customers, we work with a tailor-made payment plan with staggered due dates that guarantee the average payment term. Of course, there is a certain flexibility regarding later collection if there are well-founded reasons. These plans are monitored daily to ensure that any collection is justified. In this way we add structure to the payments and there is a good forecast for our supplier regarding collection, and for our customer regarding his treasury. Naturally, this formula is disregarded for customers with payment incidence or customers with increased risk. For these debtors, we usually work with prepayment, at times in combination with a plan. Additionally, a payment plan is frequently requested in BeLux with drafts and personal aval that serves as an extra guarantee in the event of insolvency.

Does Webhelp Payment Services work with sales agents?

Webhelp works with an extensive network of commercial agents with whom there is a good interaction in terms of prospecting and following up on all kinds of problem situations. A good relationship with the agent is a crucial asset to achieve the most efficient result, and the satisfaction of both the supplier and the customer. We have many years of experience with renowned agencies, such as Fashion Club 70, Amoda, D-Lux Concept, PHV Agency, Looks Agencies, New Look Fashion Deal, Podium 1080, Parma Distribution, Studio F, Lou Hekster Agenturen… For the agent, the fact that the financial picture is taken care of by Webhelp provides a comfortable backup, so that they have an optimal focus on sales while getting their commission in due time. The relationship between the agency and Webhelp Payment Services is a strong tandem that provides synergy in terms of sales and regular collection. We can also play an important role for brands that are looking for an agency, given our connections within the ecosystem.

With 38 years of experience in fashion and luxury, Webhelp Payment Services can be both a personal advisor and a facilitator, not only for department stores and e-commerce platforms, but also for retail distribution. Webhelp Payment Services currently works with 1000 ready-to-wear brands with a network of 35,000 stores in Europe and the United States.