Finnish fashion brand Marimekko is set to scale its Australian operations, targeting growth through wholesale and brick-and-mortar channels.
The move was revealed in a sit-down interview in Sydney with Marimekko President/CEO Tiina Alahuhta-Kasko (pictured), alongside Australian head of market Amanda Pieratos and Australian marketing manager Elly Winther.
Alahuhta-Kasko said the investment comes after a strong fiscal year for the brand, where retail sales in the Asia-Pacific region grew by 17%.
“We've been improving our financial performance," Alahuhta Kasko confirmed. "Our all-time highest result was actually last year, both in terms of net sales and operating profit.
“So this year has been very much about crafting our next strategic cycle plan, which is all about scaling up the Marimekko phenomenon business, especially in the international markets."
According to Marimekko’s FY21 report, the brand’s global net sales grew to 152.2 million euros in 2021, up from 123.6 million on the prior year.
The company has a long-term goal of reaching annual growth in net sales over 10%.
In Australia, the brand is planning to capitalise on strong eCommerce sales during the pandemic to grow its retail and wholesale business.
Sydney and Melbourne are the key focus points, where Marimekko already has a presence. The company has three stores in Melbourne and one flagship in Sydney.
“Of course, we're further developing those stores,”Alahuhta-Kasko said.
“One of the key themes overall in our strategy is to be very sharp in our focus, and then really build strong ecosystems within those key focus cities, and this way, create a bigger brand phenomenon and impact among our target audience.
“We have been growing, but in the global context we're not that big. So it's important for us to have that focus, and then build in a sharp way the kind of customer relationships, both with existing but especially now kind of broadening the customer base.”
Alahuhta-Kasko continued, saying that Australia is a key market for the brand, particularly Sydney, which the CEO called a “global key city.”
“We know that our presence here not only builds our brands in the Australia market, but actually has a ‘co-invest’ through some of our other key markets - let's say in Asia Pacific or around the world, really.”
In addition to retail expansion, Pieratos said the brand has been accelerating its wholesale growth.
“Through our footprint in David Jones, we've increased the amount of doors that we're in,” Pieratos said. “And we've also this year just came on board with The Iconic, which is super game changing - getting us to a wider audience.”
The move is part of a broader push to target Generation Z consumers, both in Australia and internationally.
“It's further building and reinforcing the relevance of our collections and our experience to resonate with this wider, also younger audience,”Alahuhta-Kasko said. “And this way, we aim to kind of amp up our international growth and the Marimekko phenomenon.
“The beautiful thing about our brand is that it is cross generational. It is something that your mother can be a fan of, but then your teenage daughter or son can be a fan of.
“We're 71 years old this year, the fact that we have a well-known and beautiful history, rules and very strong values - that is a huge asset."
Challenges and future investments
Alahuhta-Kasko said much like Australian retailers battling inflationary pressures, the Finnish brand is navigating economic and political headwinds this year.
“The key challenges are related mostly in the short term to the overall uncertainty in the environment,” she said.
“Back in Finland especially, the war in Ukraine has, of course, increased uncertainty, as well as the increased interest rate.
“It's these external macroeconomic aspects that, I would say, is a key challenge."
However, Alahuhta-Kasko noted that the company has developed “quite a nice toolbox” during the pandemic to help mitigate these external disruptions.
Prior to COVID-19, Marimekko had already invested heavily in its eCommerce globally.
Part of this ongoing investment included updating its entire flagship online experience in May 2021, which Alahuhta-Kasko said is ever-evolving.
“We were able to move all the campaigns online, and that actually really helped us mitigate the negative impacts on our sales,” she said. “I would say in a much better way that we even were able to dream of."
The company’s owned and partner-operated Marimekko sites currently reach customers across 35 countries.