An interview with Réuel Mizrah, who joined the family business and its leadership about a decade ago. He shares his analysis of the reasons behind the success and narrates the integration of family members into the group.

Can you tell me what happened before you took over the leadership of The Convertible House?

The Convertible House is a French family business that, since the 1980s, has been dedicated to making people feel at home. Since its inception, we have been offering stylish, comfortable sofas and beds that help save space. We specialize in intelligent furniture, specifically holding the top spot in France for convertible sofas.

The story began in 1980 when two families decided to join forces. Originally, it all started with a consignment store, where people brought in used items. My father quickly observed the growing popularity of convertible sofas, a logical outcome given the rising cost of square meters in Paris. In a short time, he conceived the idea of opening the first La Maison Convertible store dedicated to sofa beds in Paris, in the 19th arrondissement. Hence, our DNA has a distinctly Parisian flavor, even though we are expanding throughout France today.

When did you take over the leadership?

I arrived much later. The second generation, of which I am a part, entered the scene in the 2010s. Four cousins, including one in 2005 and myself in 2012, joined the company. In reality, our arrivals spanned several years, as there is an eight-year gap between the youngest and oldest in the new generation. We entered based on our study or work experience schedules, gradually joining the company over eight years. For the second generation, we are now four general managers forming a co-leadership. However, my father, who is still the CEO, directs the company.

What happened before your arrival?

Over the span of 40 years, the story can be summarized by the successive opening of stores. We were fortunate to realize the market’s potential, driven by factors such as the increasing price per square meter and a growing desire for home comfort. Trends like ‘feng shui’ and ‘well-being at home’ gained momentum, especially during the Covid era, along with the rise of independent work, fostering our growth. In essence, numerous factors revolutionized people’s interiors, and they sought comfort and multifunctional products – precisely our expertise.

How did you distribute the roles?

Roles were distributed based on skills, company needs, and individual preferences. Naturally, I took over marketing and finance due to my background in applied mathematics to finance. It made sense to me. Additionally, my strong interest in digital quickly led me to that domain. Two of my cousins, with a keen product sensibility, focused on purchasing from the start.

My brother, possessing strong commercial skills, quickly became the commercial director and development director. We are fortunate to complement each other well. My father has been leading everything, remaining the CEO, making crucial strategic decisions.

What has been your contribution to the company?

We brought in a lot of freshness and ambition. It’s challenging to determine what the company would be today without us, but since our arrival, we’ve significantly expanded in France. We established a network of ‘corners,’ affiliated shopping spaces in France, surpassing 50 stores. Subsequently, we embarked on independent development, currently with over 20 stores and three brands. We introduced a cousin brand, ‘Le lit,’ specializing in high-quality and accessible bedding.

Since 2010, we transformed from a profitable, family-oriented SME with around thirty employees to a company with over a hundred employees. It’s truly exciting.

What were the major challenges in recent years?

When you ask about challenges, the first thing that comes to mind is Covid, naturally, which posed a significant challenge. When it arrived, I think we all felt a sense of ‘What’s happening? Oh dear.’ We halted all deliveries and were genuinely scared. We were afraid of putting people’s lives at risk by delivering to them. In the end, there was a bit of natural panic.

How did you react?

We are pioneers in the digital world within our sector of furniture. We had our first website in the 2000s, and since then, it has become powerful, generating over 2.5 million visitors annually. We quickly started selling sofas online and over the phone, allowing us to stay active during the health crisis and restart the business promptly.

Even with all stores closed, we could generate revenue and stay in touch with customers online and by phone. Ultimately, Covid encouraged people to reconsider their interiors, boosting our momentum. It prompted us to reevaluate and accelerate digital efforts during that period, resulting in a +250% increase in online sales.

Have things returned to normal since then? What are the changes before and after Covid?

During Covid, all stores were closed, and everyone was buying online. Naturally, we saw a normalization with a slight decrease in online sales. It’s expected since there was an abnormal surge. The +250% normalized to +100%, but it remains a significant increase compared to previous periods.

Overall, we maintained robust growth, and this year, we still have over 60% growth in online sales. We observed a generational shift, with more people willing to spend €2,000, €3,000, or €4,000 online to buy a sofa. We are fortunate to have a well-known brand, having advertised on TV and radio, instilling trust in people during the Covid period. We delivered to over 500,000 customers in 40 years, and in such times, people tend to focus more on trusted brands. They need to be in a circle of trust.

Why not consider international expansion?

We opened stores in Lille, Bordeaux, Nantes, and Marseille, which is quite demanding. We have a promising market in all major cities with over 100,000 inhabitants, as space is always a concern, and customers want more square meters. While considering expansion, challenges arise, such as finding suitable locations, and it also raises questions about human resources.

How do you recruit salespeople who are supposed to be experts?

Quality and advice are part of our DNA, a key reason why people come to us. Establishing a connection when salespeople are not in Paris but three hours away by TGV is a challenge. How do we guide and train them to ensure customers receive excellent service, whether in Paris or Marseille? This presents new challenges, impacting the organization and logistics, especially since we deliver to half of our customers within 48 hours, and we aim to maintain this efficiency.

Growth-related challenges?

Since 2010, we transitioned from a profitable and family-oriented SME with about thirty employees to a hundred. It’s fascinating. We witnessed and contributed to structural changes. Going from a family-oriented SME to an organized structure with highly competent people required clear processes and adapting to a learning curve, changing internal mindsets.

The essential aspect is that everything goes well for the customer. Today, we can open four stores a year. It’s gratifying when a customer visits our store in downtown Bordeaux and buys a product designed in Paris, manufactured in Italy, transported from Paris to central France, and delivered to their home. It’s satisfying when everything goes well, and the customer confirms it online, saying ‘they are delighted because everything went well.’ It’s pleasant to know that our efforts are not in vain, and we take pride in what we do.