Wroclaw fashion company Prima Moda has adopted a new development strategy for 2022-2024, which will allow the listed company, which sells shoes, accessories and accessories, to increase the scale of operations, profitability and business efficiency. The strategy is based on the digital transformation of the brand and 100% business transfer. to the internet.
- Prima Moda is a brand of footwear and fashion leather goods that has been operating in the Polish market since the 1990s. The main shareholders of the company listed behind this brand are Dariusz Plesiak and Renata Jankiewicz-Plesiak.
- The company has announced a new strategy that sets out medium-term business goals for 2022-2024 and how to achieve them. The company plans to build its entire business on e-commerce sales and consolidation in the German market.
- To implement the strategy’s assumptions, Prima Moda plans to issue shares worth about 10 million PLN.
The new strategy, which takes Prima Moda to new levels, envisages a threefold increase in sales by 2024 compared to 2021. Then the company earned 13.1 million PLN. In addition, the strategy includes provisions for a gross margin and a 2.5-3.5-fold increase in EBITDA.
In addition, the company’s target for the next two years is a 100% share of sales in the e-commerce channel, including 90%. For sale in markets outside Poland.
“In line with expectations, the company has decided to create a company, following the process of transforming business into e-commerce in the fashion industry and taking into account the favorable market prospects in the markets of EU member states. A strategy that identifies ways to become, ”Prima Moda said in a press release.
Also read: Prima Moda improves results thanks to e-commerce
Development of e-commerce
How does a fashion brand want to achieve its goals? First of all, Prima Moda plans to expand sales on other international market platforms. Currently, the company offers its products only on the Zalando platform.
In addition, the new features and changes to its use will appear in the company’s online store, as well as as part of its mobile applications.
The company also wants to strengthen its position in foreign markets, where the German market is of particular importance. There are also plans to expand the commercial offer with new personal labels and new product categories in the field of jewelry and accessories.
Interestingly, Prima Moda is not planning to open any new brick store with 100 percent focus. your internet activity.
Exhibition halls and new technologies
One of the ways to reach customers is to have a network of exhibition halls in the form of clicks and balls. These types of places will allow you to test the product, collect products ordered online, as well as collect customer feedback and increase the chances of cross-selling other products of the brand.
In the field of technology, Prima Moda is planning a number of innovative initiatives to improve business processes, their efficiency and opportunities to achieve greater sales based on artificial intelligence, Metaverse and NFT technologies.
The Wroclaw-based company, like other fashion brands, focuses on the environment in terms of products and packaging. It is planned to implement a fashion design outlet project in cooperation with partners.
The issue to cover the costs of the strategy
The implementation of the strategy will cost money. Prima Moda wants to raise funds to cover the costs of recapitalizing the company through the issuance of a total of about 10 million PLN.
As we have learned from the provisions of the strategy, the first offer of shares is planned in the amount of about 3 million PLN, the issue price is 2 PLN, and the second in the amount of 3 million PLN, the issue price of PLN is accepted. 3, and the third is about 4 million PLN, taking into account the issue price. 4 PLN.
The proposal is planned for the current year after the fulfillment of the relevant formal requirements, especially after the preparation and approval of the prospectus.
“The company also envisages that if the proposed strategy is successfully implemented, it will implement an incentive program for individuals and entities designated by the Management Board (including members of the Management Board) to issue shares within the authorized capital. provided that the appropriate ratios are achieved. It is planned to refer to the stock market prices companies and the division of the program into 3 tranches (5 PLN, 6 PLN and 7 PLN for the stock market price, respectively) “- reads.
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