Fashion
Denmark-based Gabba plans to expand into UK market
Gabba is targeting growth after a sales decline last year and is looking to conquer new markets. The Danish denim specialist is making a big move internationally, as recently demonstrated by its booth at Pitti Uomo.
Germany is the most important market for the brand, accounting for 30 percent of total sales. This is because the brand focuses on success in Germany and offers what the market demands, says Caspar Grundahl, Head of Sales at Gabba. The Never out of Stock program and the close cooperation with the local sales agency also contribute to this success.
In 2023, the company recorded a 7% decrease in turnover compared to the previous year. However, online sales increased by 7%, which allowed the company to make a profit of around 500,000 euros last year. Gabba expects a growth of 5% in 2024.
Expansion in Europe
After Germany, Norway and Greece are also revenue-generating markets. However, the domestic market only ranks fourth in terms of constant sales, followed by the Netherlands.
The brand now wants to conquer new European markets, such as Italy, France and the United Kingdom, where it is not yet present. Existing global markets, such as Israel and Canada, are also expected to be strengthened.
To achieve this, the brand is present at international fashion fairs, such as the latest edition of Pitti Uomo. This was not the first time that Gabba had participated in the Italian men's fashion fair. But unlike the previous edition, the brand presented itself on a significantly larger stand, where it had previously been somewhat lost in the crowd, explains Grundahl.
At the 106th edition of the fair, the company built its own booth with a DJ booth, its own newspaper and its own beer. The booth concept, which also exists in Danish cities, was intended to encourage visitors to linger at Pitti Uomo. The show was a success, as there was a lot going on at the booth.
Gabba aims to maintain prices with new production facilities
In addition to denim and trousers, Gabba now offers a wider range of products, with the brand expanding its offering beyond loose summer shirts to include relaxed blazers. However, denim remains the brand's flagship product.
Like many other clothing suppliers, Gabba is facing rising production costs. But in order to continue to offer its customers T-shirts starting at 39 euros, shirts starting at 89 euros, jeans starting at 119 euros and blazers starting at 159 euros, the company has been looking for new producers for a year. Gabba mainly produces in Turkey, where prices have risen sharply, according to Grundahl. The company is now also looking at Tunisia and Greece.
This article was originally published on FashionUnited.DE. Translation via AI and edited by Rachel Douglass.
Sources 2/ https://fashionunited.in/news/business/denmark-based-gabba-eyes-uk-market-for-expansion/2024071945899 The mention sources can contact us to remove/changing this article |
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