Here, you will find our answers to the most frequently asked questions. We tried to explain clearly and explicitly what our business is about. We believe that this will help you to get to know us better.
Work safety and the issue of respect of the rights of people manufacturing our brand collections is our top priority. From 2013, we have appropriated PLN 16 million for actions in this area. All our foreign suppliers are required to sign and adhere to the LPP Code of Conduct. This is a document specifying the requirements set by LPP for its foreign suppliers in terms of employment conditions, including, among others, the wage policy, the unconditional ban to employ children, voluntariness of work, freedom of association and equal treatment of all workers. Furthermore, the Code sets forth health and work safety standards and makes suppliers responsible for environmental protection. The observance of the Code is verified in factories by LPP auditors. At present, in Bangladesh only, there are 21 persons engaged in these actions. Moreover, we cooperate with external specialists from the renowned audit company SGS. We are also a member of the Bangladesh Accord on Fire and Building Safety, acting on behalf of our industry to improve working conditions in the clothing industry in Bangladesh.
At the same time, factories we cooperate with execute orders made by numerous clothing companies from around the world. None of the factories manufactures our clothes on an exclusive basis. We engage the most in remediation activities in Asia in those manufacturing plants for which we are the main client. In those plants, we have the most effective impact on the improvement of working conditions and work safety.
More information on the control of the supply chain is available here: Control of the Supply Chain
The building disaster, which came as a shock for the entire global clothing industry, has totally changed our company’s attitude to the control of working conditions in the manufacturing plants we place orders with. In 2013, we joined remediation actions by transferring a voluntary donation for the injured and the families of disaster victims. As the only Polish company, we have also joined the Bangladesh Accord on Fire and Building Safety, of which we are an active member. Moreover, in Dhaka, we have our representative office – its employees are engaged in the auditing of factories, cooperating with external entities involved in that process. Owing to all those actions, we may already see many actual and positive changes in the factories executing manufacturing orders in that country.
- In 90% of factories, power supply installations have already been replaced or modernised.
- In 75% of entities, additional fire safety devices have been installed.
- In 60% of plants, buildings’ structure has been reinforced, and, in many cases, production has been relocated to new buildings.
100% of factories we cooperate with is under a strict control of the Bangladesh Accord.
Our strategy consists in developing design facilities and sales channels, but, just like our global competitors, we do not have our own manufacturing plants. We place orders for sewing our collections with external companies conducting their activity in Poland and in many European and Asian countries. Applying this business model, our merchants locate production of specific models in factories specialising in the manufacturing of specific kinds of clothes.
In Poland and other European countries, we outsource first of all the manufacturing of models reflecting the hottest fashion trends, which we particularly want to be quickly delivered to the client. In Europe, we cooperate with suppliers from countries such as Italy, Portugal and Turkey.
We place orders with our business partners in Asia to prepare models designed many weeks before the collection is launched – usually, these are clothes addressed to a wide group of clients, available in all stores of a given brand and ordered in the largest quantities. In Asia, we cooperate with suppliers, for example, from China, Bangladesh, India and Vietnam.
An increasing part of our brand collections is made in Poland. At present, we outsource to domestic factories the production of 5 mln pieces of clothes per year, which means that, most probably, we are the biggest order provider in this industry. In total, in Poland, we cooperate with 50 entities employing together a thousand people. With trends changing more and more faster and a shortening time span for delivering to our clients “must-have” models, the development of cooperation with Polish suppliers is of great importance to us. We constantly search for new business partners in Poland because, following our strategy, the percentage of LPP orders in Poland will be dynamically increasing in the years to come.
In the last 5 years (2011-2016), in total, we allocated for investments almost PLN 2.3 billion. In consequence, we have created over 15 thousand new workplaces, we have opened new or modernised existing retail stores as well as design and logistics facilities. Additionally, we spent PLN 16 mln on actions relating to the control of the supply chain.
We are a Polish company dealing with the design, manufacture and distribution of clothing. Currently, our sales network covers entire Poland as well as the countries of Central, Eastern and Western Europe, the Balkans and the Middle East. To millions of our clients visiting our on-site and online stores, we offer clothing, accessories and footwear of five popular brands – Reserved, House, Cropp, Mohito and Sinsay.
At present, our sales network comprises approx. 1.7 thousand stores located in the best shopping malls and at prestigious commercial streets. Currently, their area totals more than 900 thousand square metres.
In total, in our offices, logistics facilities and sales structures, we create over 25 thousand of workplaces. Every year, our clients purchase approx. 140 million products.
Each season, our fashion designers, graphic designers and technologists prepare collections of LPP brands, reflecting the hottest global trends in fashion. The philosophy of LPP is underscored by local thinking and global action, therefore, when developing our business, we adjust the offer of specific brands to the preferences of clients in different countries.
We do not have our own manufacturing plants – just like our global competitors, we outsource production of our collections to external companies in Poland and other European and Asian countries. We invest both in the expansion of the sales network in the countries where our brands are already known and on new prospective markets. At present, we focus first of all on the strengthening and recognition of our flagship brand Reserved in Europe.
Simultaneously, we invest in modern sales channels and their mutual integration, that is the omnichannel. Shortly, we will have online stores on all the markets where we operate our on-site stores. We are aware of the importance of e-commerce in the clothing industry and see it as a source of great potential for further development. Owing to major investments in this area of business, our online sales increases by 100% per year.
We are aware of the impact of our entire industry on global economy, social and economic relations and the environment. Along with business development, the scale of our engagement in corporate social responsibility issues is growing dynamically. That is what is expected by our clients, shareholders, business partners and the entire public. Our sustainable development strategy is concentrated on four main areas. The first area is responsibility for the product – rules to be followed when it is designed, conditions in which is made and the manner in which it is delivered to clients. The second area covers relations with candidates for work as well as current and past employees, the third one involves our relations with the wider social environment – clients, the fashion industry and local communities. The fourth area sets forth the rules governing our operations as an organisation and our management policies, that is the way in which we do business.
In the first years of our activity, we focused on charity. At present, our priority is to control and improve working conditions in factories to which we outsource our production in the developing countries, first of all in Asia. We pay close attention to health and work safety and to the respect of rights and freedoms of persons engaged in the manufacturing of our brand collections.
For years, we have also been consistently engaged in educating future employees of the fashion industry. We cooperate with best arts universities in Poland, and our fashion designers share their knowledge and experience with students and graduates of arts faculties. Owing to that, before even entering the labour market, young people get to know the process of creating collections for brands enjoying international recognition.