Baltika Group 2018
The second half of year 2017 Baltika Group was developing Strategy 2022 that is focused on international sales growth.
Baltika Group uses vertically integrated business model, which means that it controls all stages of the fashion process: design, manufacturing, supply chain management, distribution/logistics, wholesale and retail. This kind of model is complicated to manage, therefore one of the set objectives is to reduce complexity and simplify processes. During year 2018 more concrete steps will be developed to facilitate business processes. This should also ease the pressure to the growth of operating expenses, especially regarding labour costs.
One of the essential objectives in 2018 is continually to maintain and increase sales volumes and profitability in the Baltic retail market through offering customers a better shopping experience. Objective for year 2018 is to develop further multibrand store concept and work out a plan for digitalisation.
Development of e-store continues to improve Andmorefashion.com and physical retail store integration. Focus is on increasing loyal customer revenue.
Important objective for Baltika remains the need to grow, in addition to home market, also outside the Baltics and to do that through business partners. Finding new franchise partners and making cooperation model simpler are in focus. Cooperation is also searched with international department stores, which requires cooperation model between merchant and brand owner to have bigger flexibility.
The Management board has divided the objectives into three groups:
- Successful company. Create foundation for the “Strategy 2022” to succeed, thereof develop digital toolkits for inventory management and product development, promote new supply markets and optimize shop network in Baltics;
- Content customer. Increase sales revenue in all sales channels, increase sales in Finnish market, develop new on-line off-line multibrand concept and find at least two new trade partners;
- Motivated employee: to increase profitability it is important to maintain employees’ motivation and dedication.
Besides to the ordinary investments in retail network, also investments to develop new multibrand concept, as well to develop and digitalize processes in the frame of new strategy, are planned for 2018.