LEADING FASHION RETAILER IN THE BALTICS AND … FASHION RETAILER IN THE BALTICS AND ... retailer in...
Transcript of LEADING FASHION RETAILER IN THE BALTICS AND … FASHION RETAILER IN THE BALTICS AND ... retailer in...
Baltika Group today
• Baltika Group is strong fashion
retailer in the Baltics and Eastern
Europe
• Baltika employs vertically integrated
business model
• Group owns five fashion brands:
Monton, Mosaic, Baltman, Bastion,
Ivo Nikkolo
• Group operates five retail concepts
and over 110 stores in five
countries
• Over 1200 employees
• 2011 revenue 53.4 million euros
• www.baltikagroup.com
From production company to fashion retailer
2013•5 brands•113 stores in 5 countries•Over 1200 employees
2013•5 brands•113 stores in 5 countries•Over 1200 employees
History: company
1928 Gentleman established in Tallinn as producer of raincoats
1959 Company is restructured and renamed Baltika, producing formal menswear
1960 New production building opened at Veerenni 24, Tallinn
1988 Production of ladies wear begins
1991 Baltika is privatised
1997 Baltika listed on the Tallinn Stock Exchange that belongs
to the NASDAQ OMX Group today
2007 European Business Awards 2007 finalist in
two categories
2008 Baltika is recognised for having the best
investor relations on the Tallinn Stock Exchange
2011 Baltika is recognised: best investor relations on the Tallinn Stock Exchange 3rd place
2012 Nominent at Swedish Business Awards in
the category of Corporate Social Responsibility Initiative of the Year
History: brands
1991: Baltika launches its first menswear collection Baltman
1993: Baltika launches its first ladies wear collection Christine Collection (CHR)1995: Evermen collection launched
2002: Baltika launches its brand Monton in five markets
2006: CHR and Evermen concepts rebranded as Mosaic2006: Baltika acquires Estonian well known designer brand Ivo Nikkolo, established in 1994
2012: Baltika acquires Estonian well known brand Bastion, established in 1987
History: stores
1991: Baltika opens its first store in Estonia: Baltman store in Pärnu that is opened till today1993: first store in Lithuania
1994: first store in Russia
1996: first store in Latvia
2000: first store in Ukraine
Baltika has today stores in five countries and 26 cities
2012 Baltika opens Monton e-store that serves customers in Europe, Russia and Ukraine
History: Baltika Quarter
2009: Baltika establishes Baltika Quarter to unite design and creative companies, company sells its real estate in 2012 to focus on its core business, fashion retail2009: Baltika opens novel concept store Moetänav, representing all Baltika´s four brands2010: Baltika renovated office is awarded with Estonian Cultural Endowment Annual Award for architecture and Estonian Society of Interior Architects Annual Award in thecategory of offices
Baltika head office in Tallinn
• Baltika head office is located in
Tallinn in Baltika Quarter
• Former production building, built in
1960s, renovated into a modern
office building in 2009
• Baltika Quarter creates synergy of
design and creative companies
• Awards for Baltika office:
– Estonian Cultural Endowment
Annual Award for architecture
2009
– Estonian Society of Interior
Architects Annual Award in the
category of offices 2009
– Tallinn Design Map
History: awards
Fashion Award Golden Needle (Estonia) for Baltika´s designers:
2011 nomination, Aivar Antonio Lätt (Baltman)
2009 Eve Hanson (Ivo Nikkolo)
2005 Eve Hanson (Ivo Nikkolo)
2004 Evelin Lill (CHR)
2003 Merike Pääro (Bastion)
1999 Janika Sootna (CHR)
1998 Tarvo Jaansoo (Baltman)
1997 Ivo Nikkolo (Ivo Nikkolo)
1996 Marika Siska (Baltman)
Vertically integrated business model
Centralised management
• Centralised management: product design, brand management, supply chain, logistics, store concepts, merchandising, marketing, etc.
• Efficient inventory control and sales information systems: info available on a daily basis
Sourcing
• Own production base (two factories in Estonia): specialisation in men’s and women’s tailored suits, shirts, jackets, coats (ca 30% of sales)
• Worldwide purchasing (ca 70% of sales)
Retail: ca 90% of net sales
Multichanneling: ca 10% of net sales
• A balanced portfolio of different brand store chains (Monton, Mosaic, Baltman, Ivo Nikkolo, Bastion)
• Strong local retail organisations in five markets
• Department stores in the Baltics, Finland, Russia and Europe
• Monton e-store opened in 2012
• Brands franchise concepts
Advantages of vertically integrated business model
• Retail partner is participating in collection making process:– Based on customer demand;– Replenishment according to sales results;– Quick response – repeating bestsellers during season;
• Price making policy according to customer’s purchasing power and demand:– First price;– Sales prices policy;
• Competitiveness increases;
• Flexibility when managing crisis;• Producer isn't so dependent from cooperation partners like
in wholesale and producer can timely forecast production capacity and strategy.
Sourcing from 19 countries Sourcing from 19 countries
Sales to 27 countries Sales to 27 countries
Central warehouse in EstoniaCentral warehouse in Estonia
Collection Development Cycle
fashion trends analysis
(styling, colour palettes,
fabrics);
creative trips; fabric fairs
Range Review;
initial sales and buying plan;
building up OTB for next
period
sales monitoring&analysis,
stock management;
replenishment; of products;
promotions, other activities
transportation to Baltika
Warehouse
From Baltika Warehouse to
Markets
orders to suppliers;
order conformation;
production
decision of colours, fabrics;
first styling ideas;
new fabrics testing
designing in Corel Designer;
proto sample orders;
preparation of samples
first cost prices based on
proto
salesman samples ;
block orders for supplier if
needed;
final cost prices
COLLECTION
DEVELOPMENT
PROCESS
COLLECTION
DEVELOPMENT
PROCESS
• Launched in 2002
• Monton is exciting, quality fashion brand reflecting global trends in its own unique way
• Target customer:
– 25+ fashion concious and independent
men and women earning average
income
– individual, fully formed taste, make their
own fashion choices
• New brand visual identity and store concept in 2011 in co-operation with international agency Dan Pearlman
• Store format: 200-350 sqm in shopping centre
• Monton collection sold in 51 Baltika Group stores in Estonia, Latvia, Lithuania, Ukraineand Russia
• Monton e-store
• Launched in 2006
• Mosaic is for women and men, who are
practical, responsible and well-organized and
have a need for uncomplicated and reliable
fashion
• Target customer:
– 35+ family-oriented and practical women and
men earning average income
– value traditions and are socially active, want
to look elegant and stylish, prefer clothes making them look younger
• New brand visual identity and store concept in
2011 in co-operation with international agency
Dan Pearlman
• Store format: 150-200 sqm in shopping centre
• Mosaic collection sold in 51 Baltika Group
stores in Estonia, Latvia, Lithuania, Ukraine
and Russia
• Main wholesale customers are Peek &
Cloppenburg, Tallinna Kaubamaja and
Stockmann
• Launched in 1991
• Prestigious business wear brand for men, offering stylish, classic and high-qualityclothing and personal service
• 20-year-old innovative brand (multi-layered, wind- and waterproof fabrics like used in sportswear)
• Target customer:
– 35+ practical men earning higher income and working in management position, needing sophisticated look for everyday work, business trips and evening events
– value quality and personal service, practicality and innovation
• Store format: 60-100 sqm in shopping centre
• Baltman collection sold in 16 Baltika Group stores in Estonia, Latvia and Lithuania
• Main wholesale customer is TallinnaKaubamaja
• Designer fashion brand for ladies offering premium business outfit and occasion wear to express own individuality
• Brand established by Estonian fashion designer Ivo Nikkolo in 1994, Baltika acquired the brand in September 2006
• Target customer:– 30+ mindset professional, self confident
and intelligent women with higher income needing quality outfit for work, business trips and events
– value high quality of life and expect very high level of service and high product quality
• Store format: 60-100 sqm in shopping centre
• Ivo Nikkolo collection sold in 17 Baltika Group stores in Estonia, Latvia, Lithuania, Russia and Ukraine
• Main wholesale customers are Stockmann, Tallinna Kaubamaja. Through wholesale partner sold also in Russia and Finland
• Launched in 1987
• Oriented to a woman who
values quality, classical style
and Estonian production
• Target customer:
– 35+ feminine woman with
classic taste and wish for
formal and festive style quality
clothing
– values timeless fashion, quality
and brand handwriting
• Collection is sold in 7 stores in
Estonia and Latvia
HEAD OFFICEAS Baltika
Veerenni 24
EE-10135 Tallinn, Estonia
Tel. +372 630 2731
Fax +372 630 2814
www.baltikagroup.com