From its inception in the late 1980s, the Smets brand quickly established itself as a distinctive concept store in the world of luxury retail. From the moment its first boutique opened, the company stood out for its bold architecture and avant-garde aesthetic, bringing together fashion, design and beauty under one roof. Success was immediate, laying the foundations for a unique positioning at the crossroads between established brands and emerging designers.
Smets is a family-run business and is now managed by the second generation. In 2021, 
In your view, what is the main lesson you have learnt from your experience with succession planning and engaging the next generation within your company?
Carine Smets. – “Succession is built over time, through the structured transfer of knowledge and the exchange of ideas. It becomes essential when the new generation becomes more involved, brings a fresh perspective and plays an active role in decision-making. This requires adapting governance structures, clarifying roles and moving forward with confidence in order to ensure the continuity and performance of the business.
The family’s interests are closely aligned with those of the business and the associated assets.
How do you manage to balance the family’s expectations with the company’s economic and strategic imperatives?
“The family’s interests are closely aligned with those of the business and the associated assets. Decisions are guided by a focus on financial strength, profitability and long-term value creation, without adhering to any particular capital market model.
The company remains independent as a matter of strategic choice, whilst remaining open to any relevant opportunities, including a capital transaction, provided that such a move is in the company’s overall economic interest and enhances the value of its assets.
Which decisions or developments in the areas of governance or the professionalisation of management have had the most significant impact on your company?
“The most far-reaching decisions were taken following two key events. The closure of the Brussels site in 2015, which followed an ill-suited development strategy, highlighted the need to strengthen risk analysis, financial discipline and legal support in major decision-making.
This initial experience prompted a fundamental review of governance, which then gained momentum from 2017 onwards in order to better align heritage issues with the founders’ responsibilities in structuring the group.
These steps have led to the gradual professionalisation of management and the establishment of more structured governance frameworks, which now form the cornerstone of the company’s management.
How does your company balance the need to honour its heritage with the need to innovate or transform itself in order to remain competitive?
“There is no tension between heritage and transformation. Evolution is seen as an ongoing necessity, driven by the pursuit of performance and adaptation to changing needs.
Our heritage is not a restrictive framework, but a foundation, with no decision-making power in itself. The priority remains the ability to adapt, to innovate and to support a growth trajectory, with innovation being the main driver of competitiveness and the true key to success.
Since 2021, the founders, Carine and Thierry Smets, have gradually handed over the business to a trio comprising their daughter, Pascaline Smets, the creative director; their son, Bertrand Smets, the project manager; and the CFO, Laurent Beaudoint. (Photo: Paperjam/archive)
What were the most decisive choices made regarding the financing of growth?
“Our growth has historically been supported by banking partners in Luxembourg, but the post-Covid environment has fundamentally altered the timing of financing. Banking processes have become more time-consuming, with more complex decision-making procedures involving committees, stricter guarantees and longer lead times.
At the same time, business partners have shifted to very short cycles, with a marked tightening of payment terms, moving from standard payment periods to immediate or even early settlement. This imbalance has reinforced the need for very strict management of cash flow and investments.
Financing remains a key driver of growth, used in a targeted manner, with a constant focus on managing and subsequently reducing debt through self-financing. A gradual improvement in bank processing times has been observed over the past few months.
What tax or legal issues have proved to be the most critical for your family business?
“Tax and legal issues have not been obstacles to the company’s development, but rather require ongoing and proactive management, which is inherent to any growing organisation. The focus has been primarily on securing existing frameworks, ensuring regulatory compliance and gradually adapting to changes in the law, with a view to managing risks in the long term.
What strategies have been most effective in developing your product or service offering whilst remaining true to the company’s core values?
“The most effective strategies have been the carefully managed diversification of our product range and the development of online sales, designed as a natural extension of the in-store experience. The challenge has never been simply about distribution, but about creating a comprehensive, consistent and high-quality customer journey.
The most far-reaching changes disrupt established habits, but they are decisive…
Strengthening our CRM and customer loyalty tools has enabled us to gain a better understanding of customer behaviour, personalise our relationships and embed innovation for the long term, whilst remaining true to the company’s entrepreneurial spirit. The most transformative changes may disrupt established habits, but they are crucial for strengthening customer relationships and supporting sustainable growth based on quality, precision and continuous innovation.
At what point did you feel it was necessary to accelerate the company’s growth?
“Growth has always been at the heart of the company’s strategy. Stagnation has never been seen as a viable long-term option, whether in terms of expanding our business scope, increasing margins or seizing opportunities that create value.
This journey has not been a straightforward one, and certain phases have required adjustments, but the underlying conviction has remained constant: to grow, transform and strengthen the model rather than succumb to inertia. This acceleration is therefore part of a long-term strategy, guided by ambition, agility and a keen sense of opportunity.
What were the main drivers – and the main challenges – of your internationalisation strategy?
“Internationalisation has taken place gradually and organically, driven by the rise of online sales and direct engagement with an international customer base. It has been underpinned by strong partnerships and a close observation of consumer trends beyond the domestic market.
The driving forces have always been the same: to support growth and identify new avenues for development. The main challenge has been to adapt the organisation and its priorities without compromising operational standards. This international outlook is now an integral part of the company’s day-to-day operations.
How can a family business attract and retain key talent in an increasingly competitive environment?
“Attracting and retaining talent depends first and foremost on the strength of the project, the quality of the artistic direction of the collections, and a clearly measurable ambition. The company offers a coherent and demanding brand environment that is internationally recognised, which in itself is a key factor in its appeal.
The difference compared to large corporations lies in the professional experience on offer.
The difference compared to large corporations lies in the professional experience on offer: early exposure to decision-making, a wide range of challenges, greater responsibility and continuous learning. Talented individuals thrive in a stimulating environment, with resources on a par with luxury industry standards, whilst being encouraged to challenge themselves and strive for constant improvement.
How has increased international competition in your domestic market changed your positioning, organisation or strategy?
“Increased international competition has led to a faster pace of change in our tools and organisational structure. This has resulted in the strengthening of our platforms, the launch of a new website, the greater integration of AI into our teams, and the targeted outsourcing of certain processes in order to improve efficiency and competitiveness.
The main challenge was to speed up operations, particularly in terms of service and delivery times. Domestic customers have come to terms with this new reality: access to products is decided at an earlier stage, decisions are made more quickly, and the need for responsiveness has become a key differentiating factor.”
This article was written for the June 2026 issue of Paperjam magazine, published on 20 May. The content is produced exclusively for the magazine. It is published on the website to contribute to Paperjam’s comprehensive archive. Click on this link to subscribe to the magazine.
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