At the end of 2019, the manufacturer and developer of modern furniture began to leak faulty with a purchase option (LOA) provided, refurbished and donated by financier Sofinco. Why is this a wise decision? What is this offer? What customer profiles are targeted? More answers by Eric Rennesson, director of Ligne Roset affiliated stores, and Jean-Pierre Til, partnership manager at Sofinco.
At the end of last year, you unveiled the masterpiece of LOA formula in furniture. Why this program?
Eric Rennesson: It all started with a new feature we saw in stores: increasing and increasing Ligne Roset and Cinna customers or prospects are reluctant to invest in a chair or piece of furniture with the expectation of keeping it for 15 to 20 years, because they ‘fear the mod is outdated and out of style. Because of this, they take refuge in neutral and extinct forms, in order to remain fashionable for as long as possible … while decoration, on the contrary, must be dignified, nourished and enhanced by the air. the time! So we decided and worked for 18 months to create a rental formula with a purchase option (LOA), which allows the buyer to enjoy buying what he wants at that time,
The LOA is part of the most important transformation process. Today’s consumers, especially the younger generation, consider using the product, and experiencing it, is more important than owning it. The economic crisis has completely disrupted family eating habits, creating opportunities for other consumer goods: trade, commerce, leasing, and more. in full maturity. In this context,
What exactly did LOA promote by Ligne Roset and Sofinco?
It is – above all – decorative offers. Refers to a set of consumer-selected products, at a full price that also includes a set of services: instruction and support for interior decoration, makes customer’s custom design in 3D, saving furniture. – cleaning the living room and carpet, repairing the curtain, fixing or adjusting the security door, redecorating the door, etc. – and, if there is any change or move, remodeling the furniture on a future plan. inside. At the end of the agreement, the buyer can adjust the LOA, and become the owner of his or her furniture by paying a retail price of 10%, or ask Ligne Roset to take over used furniture,
Of course this is a rental agreement. That is to say that Ligne Roset initiates the contract and provides the products to the buyer / landlord, while the purchase of the product is supported by Credit Agricole Consumer Finance (parent company Sofinco) which becomes the full-time owner. contractual. Within five years of the agreement, the landlord owns the product, carries out the fees associated with its use, and pays his or her monthly rent to the charitable organization. At the end of the agreement, he can use the option to purchase and own the property, or return it to Ligne Roset. In both cases, he is relieved of the burden of redundancy or separation from his old furniture. In the end,
How will this offer be marketed, and where is the added value of the investor?
ER: First of all, let’s say that, in the first year, only stores that belong to the group, under the Ligne Roset or Cinna brand – i.e. 24 full sales – will offer LOA, before it is added to the entire network, depending on the results obtained. The promotion of this new gift, of course, will be done through POS in stores, but will be done above all by using digital marketing:
In the context of this article, Sofinco backs us up in a start-up traffic system instead of marketing. Banners, social networks, Sofinco database, the activation of these levers will make it possible to capture interesting, potential audiences, with the aim of placing appointments on marketing sites and providing other services. I explain that all the money in the LOA form, like all online sales, is made to be transferred to a store located in their holder.
Can you give us some examples of profiles that interest this offer?
The initial agreements we signed show different customer profiles, which we can recommend with three examples. The first is a pair of 35- to 40-year-olds, living in Saint-Laurent-du-Var, followers of Ligne Roset, but until then have bought smaller, like a decorative vase at the E200. We gave them an estimate of 18,000 €, which they did not follow, until they realized that, because of LOA, they could earn up to $ 300 a month…
They then signed on. place. The second is for a 60-year-old couple, with some purchasing power, who are interested in a € 35,000 project, but their wife is having a hard time choosing items, colors, finishes … After a fourth visit to the store, the husband began to lose patience, and finally decided to thank LOA , this closure solution, as the interior designer accompanies the selection, and a decorative change is possible after five years. The third example is of two people who had never pushed the door of the ligne roset furniture store, and found that we could have a decoration of our own, at a cost of between 300 and 400 euros per month.