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Answear.com introduces RFID solutions to brick-and-mortar stores
Answear.com remains one of the fastest growing fashion e-commerce in Europe and thanks to the investments made, it hopes to significantly improve its profitability already in the second half of the year.
– We have a challenging half-year behind us, in which we still felt a reduced shopping sentiment among customers across Europe, and the appreciation of the złoty significantly reduced our revenues and margins. Despite this, we remain one of the fastest growing fashion e-commerce in Europe. We are investing heavily in repositioning Answear.com to the premium segment. In the first half of the year, we allocated a record amount for marketing, including a wide-ranging image campaign on TV. We deeply believe that this strategy will pay off and we will see its fruits already in the second half of this year, as well as in future periods – says Krzysztof Bajołek, CEO of Answear.com.
Answear.com allocated a record PLN 141 million for marketing expenses in the first half of 2024, which is 53 percent more than a year earlier. The significant increase in the marketing budget was aimed at developing sales in the new PRM brand, and implementing the image campaign "Dress in life what is precious" broadcast on 11 European markets, promoting Answear in the premium segment. The campaign turned out to be a great success and, according to research reports, significantly strengthened the brand's recognition and strength among the target group.
In the past period, the Company opened the Answear and PRM concept store in a prestigious location – the Norblin Factory in Warsaw. This was a significant step towards building a strong position for the brands in the premium fashion segment. Concept stores are an important aspect of image and marketing, exclusive brands often require physical presence and the possibility of direct interaction with customers, which is perfectly ensured by high-class boutiques in prestigious locations.
– We treat the first half of 2024 as a typical period of investing in the future. In addition to high expenses on the marketing campaign, our profitability was reduced by expenses related to the launch of the concept store, the costs of developing the new PRM brand, and unfavorable trends on the currency market (the strengthening of the zloty against other currencies in the region and the weakening of the hryvnia). It is worth adding that Answear.com alone generated a positive EBITDA of PLN 3.3 million – comments Jacek Dziaduś, Vice President of the Management Board for Finance at Answear.com.
Since opening the Answear concept store in May this year, the Company has already implemented several large events with top clothing brands such as Karl Lagerfeld, New Balance, adidas and RayBan. There are plans for another three large events with other global brands, which will be implemented by the end of the year.
– We are pleased with the first months of our concept store operation. Although it is still too early for a full assessment in terms of sales results, from the perspective of the marketing aspect, which is key for us, we can say that the project meets our expectations. We managed to combine our space and brand with renowned global brands, thus enriching our offer and strengthening the image of Answear in the premium segment – says Krzysztof Bajołek.