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Pealkiri

Baltika’s Supervisory Board approved the company’s action plan for the coming years and the launch of a new umbrella brand

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On 21 August, the Supervisory Board of AS Baltika approved the specified action
plan 'Strategy 2022' for implementation. The plan comprises 16 projects, of
which the most important focus around three areas: internationalization,
digitalization and customer centricity; in addition, a new umbrella brand is
planned to be launched.

In the context of internationalization, the enterprise will be focusing on the
development of e-commerce and the creation of a new cooperation model for its
franchise and concession partners with a view to offering them greater support
in merchandizing, inventory management, marketing and opening stores. As the
result of the new offer, traditional wholesale model will be gradually abandoned
to change the process of bringing a product to end customers faster.  Besides,
existing and potential new export markets will be analyzed, in order to
determine target markets for the coming years.

For the purpose of gaining efficiency and ensuring greater customer
satisfaction, digitalization projects have been initiated in the domain of
product development, sales, customer service and analysis.

Baltika is currently managing a vertical business model from design to sales
network. In the future the focus is to shift to those parts of the value chain,
which directly influence customer experience. At the same time, the company's
current strength, domestic production, which is a major part of the quality
label for Baltika and its customers, is to be maintained. Major opportunities of
the coming years are perceived in production specialization, which will allow
competitiveness to be increased in the international procurement market. The
production volume released from the specialization is planned to be sold out to
other companies.

A major part of providing customer experience of superior quality is launching
the Vérenni umbrella brand. The new umbrella brand will consolidate the
different fashion collections to form an integrated whole, transform the loyalty
program and advertising language as well as bring the social responsibility
aspect into focus. More focus is at the same time given to linking the
traditional retail concept to e-commerce.

The launch of the umbrella brand will optimize the company's current portfolio
consisting of nine fashion and sales channel brands. Multibrand stores and e-
store are the first to go under Vérenni name. In the coming years, Vérenni is to
become the leading brand in the mainstream segment of Baltika's fashion brand
portfolio, catering for the needs of current loyal customers of Mosaic and
Bastion as well as reaching for new customer groups with its products. At the
same time, Monton, Ivo Nikkolo and Baltman will continue in the premium and
fashion segment.

Changes in store portfolio will be implemented on the basis of the brand
portfolio, and new store formats will enter the market, which include the
testing of the showroom and the pop-up store formats. The first Vérenni flagship
store to introduce the new concept will open this autumn in T1 Mall of Tallinn.


Meelis Milder

Chairman of the Management Board

[email protected]