System Action changes its strategy. The Catalan fashion company, which in 2018 was acquired by Paz Torras, plans to close the 2024 financial year with a turnover of fourteen million euros, 16.6% more than the previous year. To do this, System Action has developed its own magic formula: shorter series to reduce stock and a boost to online business, as explained by the company’s general director, Jordi Paz, to Modaes.
System Action started in 1986 with its first store in Portal de l’Àngel in Barcelona, and eventually had a network of 22 establishments, most of them in Catalonia. The company, then led by Enric Omenat, voluntarily requested to enter bankruptcy in 2018.
“We have moved on to implement a more reactive model“Previously, the initial production was designed to cover the entire season, while now we have reduced it to adapt it according to demand,” adds Paz. Thanks to this system, which does not produce as much quantity at the beginning of each of the two seasons (spring-summer and autumn-winter), the company seeks to adapt to the demand of its consumers.
“We are manufacturing more garments, but we accumulate less stock – Paz assures -; which has also allowed us to save time and be more successful.” Jordi Paz has shared the position of general director with his brother, Tomás Paz, since March 2023. In practice, however, it is Jordi Torres who is in charge of the executive part of the business.
Both brothers took charge of System Action at the same time, after the previous CEO, Angelo Ruggieri, left the company due to retirement. “It has been approximately a year and a half since Ruggieri left, and what we are doing is giving continuity to the work that was already being done,” adds Paz, who, although He did not want to share the company’s net result, he assures that it has remained flat compared to the previous year.
System Action has been directed by the Paz brothers since March, after the departure of Angelo Ruggieri as general director
The System Action strategy also happens for a stronger commitment to the company’s own platform, which it recently renewed. The Catalan company operates in the online channel also through the marketplaces from El Corte Inglés and Zalando. The company’s electronic business currently accounts for 10% of sales, a figure that Paz plans to increase to 20% in the next four or five years. “The average weight of online commerce in the sector is around that figure, it is not crazy,” says Paz.
But System Action hasn’t forgotten its brick-and-mortar business. The Catalan company has a network of 17 establishments and an outlet, in addition to having corners in El Corte Inglés. The company’s own stores accumulate 70% of physical sales, compared to the 30% represented by seasonal corners in department stores. In September, System Action plans to open new points of sale in El Corte Inglés in Málaga, La Coruña, Vitoria and Oviedo.
Starting next winter season, the Catalan company will also diversify its collaborations, and will have different models of sneakers from the Japanese Asics in their establishments.
In international markets, System Action operates through the multi-brand channel in Portugal, Italy or France, with a network of more than 200 clients. By 2024, Torres hopes to double sales of wholesale of the company. “We are working to do what has always been the intention, which is to grow, but now, even at a stronger pace,” Paz highlights.
