Baltika reinvents its brand portfolio
Baltika has reached the next step on its course of profound change and over the next seven months, Mosaic, Bastion and Monton will be gathered in stages under the best-known among them – Monton. “We are also modernising the Monton concept to meet the customer expectations even more,” Baltika CEO Mae Hansen said.
According to Hansen, it is unreasonable for Baltika to keep the portfolio with five brands under current sales volumes, therefore the company will join the mainstream brands Monton, Mosaic and Bastion step-by-step into one brand. As the first stage, starting from this month, Baltika will join the Mosaic men’s collection with Monton men’s collection and Bastion collection with Mosaic collection, and will continue operating with one brand in men’s segment and with two brands in women’s segment. In 2020, the new Monton brand will be launched, which will be targeted at a wider target group and gather all the current mainstream brands.
“We believe that gathering all the brands under Monton name is a choice expected by the Baltika clients, and our analyses also support this. The gross profit of the women’s collection increased compared to last year and the improved result came mostly from the Monton women’s collection; Monton is also the most purchased brand in the Baltika online store. In case of Monton, we are speaking about a brand that has been on the Baltic market for 15 years and that is familiar to the consumer,” Hansen said.
Baltika managing director stressed that this does not mean that the Mosaic or Bastion client will no longer get their favourite products. “40% of our client portfolio is already consuming the brands to be joined simultaneously and they have to visit different stores for that – now they will get everything they need quickly and conveniently from one place. Our designs and product selection in stores will continue to be based on the preferences of our loyal clients. In the course of the brand upgrade, the essence of Monton brand is updated so it would create value for the clients of all three brands,” Hansen said.
The second important change is making the product-centred approach customer-centred. “Until now, Baltika was by nature a ‘we make everything for everyone’ type of company, but in global competition this will not do. It is crucial to find a focus,” the CEO said. “Unfitting products are the main reason why a person would leave the store unhappy. One of Baltika’s strengths is definitely the fact that we can sew clothes for the Baltic bodies, which is something no other company has done for 91 years. We know which designs suit the people who live here,” Hansen explained.
The managing director added that Monton clothes are among the top three people buy from the malls. “We have a client base with 500,000 people and a long history. And looking at the commercial network from a wider perspective, we are happy to bring more local products to the malls, which without Baltika brands would have a serious shortcoming of local fashion,” Hansen said.
Baltika Group Marketing Director
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