Baltika is heading for digitalization and new umbrella brand development
On Tuesday, 21 August, the Supervisory Board of AS Baltika approved the company’s business plan for the next few years that directs more attention than before to greater focus on customer experience, e-commerce development, digitalization of processes, and internationalization. In addition, a new umbrella brand will be launched this year.
The five-year business plan approved by the Supervisory Board implies that Baltika’s business model will be centered around three aspects: focus on customer experience, digitalization, and internationalization. “From retail customers’ perspective, this means a shopping experience tailored to their expectations and preferences as well as greater attention to linking the traditional retail concept to e-commerce both on the domestic market in the Baltic states and on our existing and future export markets,” explained Meelis Milder, Chairman of the Management Board at Baltika.
A major part of providing superior quality customer experience of is launching the umbrella brand Vérenni this autumn. “The new umbrella brand will consolidate our different fashion collections to form an integrated whole and transform our loyalty program and advertising language,” Milder noted. The first Vérenni flagship store to introduce the new concept will open this autumn in T1 Mall of Tallinn.
With launching the umbrella brand on the market, the company also intends to change its fashion and sales channel brand portfolio, which currently comprises nine brands. “In the coming years, Vérenni is to become the leading brand in the mainstream segment of Baltika’s fashion brand portfolio, catering for the needs of current loyal customers of Mosaic and Bastion as well as reaching for new customers. At the same time, Monton, Ivo Nikkolo, and Baltman will remain in the premium and fashion segment,” said the chairman of Baltika’s Management Board. “The changes will also feature new store formats that we are going to introduce on the market by testing the showroom and the pop-up store format as well as updating our online store.”
As far as internationalization is concerned, Meelis Milder says that the company will focus on e-commerce development and devising a new cooperation model for its concession and franchise partners to offer them greater support in merchandizing, inventory management, marketing, and opening the stores. The enterprise is also planning to analyze the potential of existing and new export markets in order to secure target markets for the coming years.
In digitalization, Baltika’s goal is to improve efficiency and increase customer satisfaction throughout the entire value chain, which implies innovations in product development, sales, customer service, and analysis. “We intend to simplify our business model and primarily focus on those parts of the value chain that directly influence customer experience,” Milder stated. “At the same time, we are planning to maintain the main strength we already have, namely domestic production, which is a major part of the company’s quality label for Baltika and its customers,” Milder added.
Baltika Group is the leading fashion brand house in the Baltics with five internationally successful fashion brands: Monton, Mosaic, Baltman, Bastion, and Ivo Nikkolo. Baltika’s retail network includes 93 brand shops in Estonia, Latvia, Lithuania, and Finland; items from its collections can also be purchased via Baltika’s e-shop Andmorefashon.com, which delivers goods to 44 countries around the world. Thanks to wholesale and franchise partners, Baltika’s brand collections are sold all over Europe, including in Peek & Cloppenburg, one of the oldest and most well-known department store chains, as well as franchise shops in Ukraine, Russia, Belarus, Serbia, and Tenerife. In the Baltics, more than 1,000 employees work at Baltika Group. The shares of Baltika Group are listed on the Tallinn Stock Exchange, which belongs to the NASDAQ OMX Group.
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