BIZTALK CEO INTERVIEW: Harold Levillair, Founder & CEO of PAUL China

Formerly the commercial director in France for Lycos Bertelsmann, in 2005 Harold Levillair took on a new challenge: introducing the French boulangerie brand PAUL to China.

As PAULs first China franchisee, what were the challenges for setting up and operating the company in China?

H.L.: Our first goal was strong positioning in China. And with that goal came the first challenge: we had to convince developers and the authorities that PAUL is an international brand, and would be successful here. A second challenge, crucial to our success, has been the training of the team.  PAUL offers more then 150 different fresh products each day, and the staff needs to be familiar with each one.

On a more macro level, our challenge has been to offer luxury products at a reasonable, accessible price point so that everybody can afford to buy the best baguette in the world. We have to focus on the details to keep the quality levels at the same standards as in France – that means minute attention to the quality of all the details, the decoration of each store and our products in the stores. It is a real challenge for us in China to keep the same level of quality, in part because the logistics team sometimes faces challenges in importing the raw materials from France, but we are proud of the fact that PAUL products in China are the same as in Paris, Miami, Tokyo, Madrid, Dubai or London.

Before opening, what research and due diligence procedures did you undertake?

H.L.: First of all, we conducted in-depth market research. We studied the locations that we felt were appropriate for our luxury concept, using a variety of research: consumer analysis, competitor analysis and potential client analysis. We then hired a specialised firm to validate our choices. Once the market research was complete, we asked an independent audit company to validate our financial market study.

Perhaps because of this level of research, we have not had any unpleasant surprises. We’ve had some delays with openings because of shipment delays of décor items, but otherwise, the turnover in the stores is actually above forecast. 

PAUL is growing relatively fast. What are your plans in China, and will the structure of the franchise remain the same as you roll-out?

H.L.: After our success in Shanghai, for 2008-09 PAUL is focused on other tier cities, such as Beijing, Hangzhou, Ningbo, Suzhou and Nanjing. Needless to say, the products and quality levels will be the same in each city.

What are the challenges/solutions for baking and distributing fine patisserie and Viennoiserie products in Shanghai and across China?

H.L.: The challenge is to maintain the quality of our products every day. The motivation of our China team is our main concern. Our staff increased from two to180 within nine months. We have to be able to provide the same level of training for every newcomer as we did with our first employee.

Looking back on the first few months of business in China, what are the key lessons you have learned, and how will you apply these in future?

H.L.: The door is never closed. Even when your offer is strongly refused, it simply means “come back with another offer”. To do business in China you have to adapt yourself – or find another country! It is like playing chess. Each case is unique; you have to find a compromise so that each party feels like they have won the deal.


 

Last update : Friday, 30 May 2008

Keywords : Harold Levillair, Paul, Bakery, Boulangerie, Franchise

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