LPP is a socially responsible, Polish family company.
OUR STRATEGY HAS BEEN INVARIABLY BASED ON THREE PILLARS FOR SEVERAL YEARS:
– the development of our 5 clothing brands,
– foreign expansion and expansion of the brick-and-mortar retail chain, and
– development of online stores by increasing their availability in other countries.
Our goal is to become a global company whose brands are globally recognisable.
Expansion through brands
Our strategy is to further develop the five existing brands. We focus on attracting new customers and boosting the satisfaction of the existing ones.
History shows that we have been able to effectively implement our strategy. It all began in 1998 with Reserved, and our portfolio now consists of five brands.
Our brands are dedicated to various target groups, from children (a part of Reserved) through teenagers (Cropp, House, Sinsay), and finally adults (Reserved, Mohito). All brands are in a moderate price range. At present, we are not planning to create new brands, and our activities are focused on the development of existing ones.
FOREIGN EXPANSION AND EXPANSION OF THE BRICK- AND-MORTAR RETAIL CHAIN
Brand development would not be complete if not accompanied by expansion in particular countries. Our goal is to diversify the Group’s revenues, i.e. to increase the share of foreign sales. Currently, revenues from the domestic market constitute 53% of our Group’s total revenues.
Our long-term goal is to gradually increase the presence of our collections in other countries of the world by making consistent debuts on at least one new market each year.
The potential of a new market is usually verified through the introduction of the Reserved brand, and at later stages – the remaining brands. This has actually been the essence of our operations in Western Europe and the Middle East.
TODAY, WE ARE PRESENT IN SIX GEOGRAPHICAL AREAS ON THREE CONTINENTS, ACH WITH DIFFERENT GWORH PROSPECTS:
– Central and Eastern Europe (CEE), which includes countries such as: Poland, the Czech Republic, Slovakia, Hungary is a mature market for us, due to the long-standing presence of our brands in this area.
– The countries of the Baltic Sea Region (BSR) where our stores are currently present include Lithuania, Latvia and Estonia. We treat all those three markets, along with the markets of Central and Eastern Europe, as mature ones, where our focus is mainly on quality rather than on the number of stores. Therefore, our strategy assumes the implementation of the modernisation process of our brick-and-mortar chain, including, among other things, a gradual expansion of the concepts of our stores in the BSR area. Additionally, as part of the further foreign expansion strategy of LPP and our planned debut in Finland in 2019, Estonia will become our market supporting and facilitating this process.
– CIS region (Commonwealth of Independent States), i.e. Russia, Ukraine, Belarus, Kazakhstan are the markets where we see long-term development potential, especially in the Russian market.
– South-Eastern Europe (SEE), i.e. Bulgaria, Romania, Croatia, Serbia and Slovenia, are markets with high growth potential for LPP brands. In 2019 we plan to strengthen our presence there by opening stores in Bosnia and Herzegovina.
– Western Europe, i.e. Germany and the UK, it is an early stage market in terms of growth, yet with a considerable potential in this respect. In Germany we operate 19 stores in key cities of the country and at the moment we are not planning any further openings on this market. Our goal is to increase the recognisability of LPP brands based on the current retail chain in Germany and to gradually increase its profitability.
We have been present in the UK since 2017 with our flagship store located in a prestigious place in the city – on the famous Oxford Street in London. In the coming years, we plan to increase the presence of our brands in Western Europe, especially in European fashion capitals, such as Milan and Paris. Our strategy in this region is to build Reserved brand recognition, which will allow us to become a global company.
– Middle East i.e. Egypt, Qatar, Kuwait, the United Arab Emirates, Israel. We are expanding our presence in this region in cooperation with a franchise partner. This is an early stage of growth for us, and we see a significant development potential, especially in Israel.
Thanks to the expansion through the development of brick-and-mortar stores, in 2019 we plan to increase our retail space by 11% compared to 2018.
EXPANSION TROUGH THE DEVELOPMENT OF ONLINE STORES IN INDIVIDUAL COUNTRIES
In response to the ever-changing customer preferences and behaviours, as well as ubiquitous digitalisation, triggering transformation in retail trade, our strategy, apart from expanding the network of brick-and-mortar stores, assumes the development of an online store chain. Our vision of the future entails combining these two channels, i.e. in the so-called omnichannel. That is why we invest in logistics and technology (RFID, Store Vision, big data, m-commerce).
Our strategy is to have online stores of five brands in all countries where we operate in a traditional way.
In 2019, we plan to launch the so-called pan-European online store operating throughout the European Union. Therefore, by the end of 2019 we will have established our online presence in 35 countries. By 2021, we want to increase the share of online sales to 20%.