Our Strategy

LPP is a Polish family business

We are constantly improving our offerings and adapting them to changing customer expectations. We are increasing the availability of our collections by expanding our network of stationary showrooms (increasing retail space y/y) and online stores.

We are developing in the spirit of the omnichannel concept so that our customers have full access to products regardless of the sales channel. At the same time, we are constantly meeting the challenges of the world around us in both technological and environmental contexts. In order to pursue such a development plan for LPP for the next few years, we have based our strategy on three pillars: omnichannel model, digitalization and sustainability.

1. Omnichannel organization

LPP is an omnichannel organization in which traditional and online sales are fully integrated. We are committed to providing our customers with the best possible shopping experience, whether they choose to purchase our collections in stationary stores or online. That’s why we are developing both channels in parallel and making sure our offerings are presented consistently.

Our priority is:

• Further development of our 5 clothing brands (Reserved, Cropp, House, Mohito and Sinsay) located in the moderate price range or in the Affordable Fashion Retail segment, dedicated to different target groups;
• Increasing the accessibility of our brands’ offerings by simultaneously expanding our stationary retail network and online offerings so that our customers can interact with our brands where, when and how they want through integrated channels.

LPP development through brands

We focus on winning new customers and increasing the satisfaction of existing ones. We started building our portfolio with the Reserved brand, whose first store was established in 1998. Currently, we already manage five brands, each dedicated to different target groups. We offer collections for women and men, but also clothing designed for children and teenagers.

Reserved, Cropp, House and Mohito rank in the moderate price range, while Sinsay ranks in the Affordable Fashion Retail segment. At the moment, we have no plans to create new brands. We are focusing our efforts on developing the brands currently in our portfolio, with a particular focus on Sinsay. Originally dedicated to teenage girls, the brand now has a range of fashionable styles for young women and men as well.

Sinsay also offers collections for moms, as well as products and accessories for children. The brand’s assortment is complemented by home furnishings and a line of makeup and beauty products. The good market reception of the new Sinsay concept and the accompanying intensive development of the stationary network mainly in small towns, will affect the successive growth of Sinsay’s share in LPP’s brand portfolio in the coming years.

Development through expansion on new markets

Development through brands would not be complete if it were not accompanied by the expansion of our retail network, both brick-and-mortar and online. Our goal is to diversify the Group’s revenues, i.e. to maintain the current position on the domestic market, but also to increase the share of foreign sales, especially in the European Union region. Currently, apart from Poland, we are active in six geographical areas, each of which has different development perspectives:

• Poland is our home market and, at the same time, our most important market, which generates over 50% of the Group’s revenues. Because of its great maturity and close-knit sales network, we are mainly focussed on maintaining the current position of LPP brands, modernising our store concepts and increasing their surface areas. We are going to expand the brick-and-mortar sales network by mainly focusing on the Sinsay brand stores.
• Central and Eastern Europe (CEE), includes countries, such as: the Czech Republic, Slovakia and Hungary. Similarly to Poland, we are focussed on developing our brick-and-mortar network in smaller towns where we see the development potential for younger brands, Sinsay in particular. We are expanding the existing network mainly through retail parks, but also high street stores. We are continuing to modernise the brick-and-mortar network in large cities in parallel and successively expanding and refreshing store concepts in order to fully implement the omnichannel model and tailor stores to new market requirements and customer expectations.
• The Baltic Sea Region (BSR) countries where our brands are present include Lithuania, Latvia and Estonia. We consider all three of these countries, similarly to the markets of Central and Eastern Europe, to be mature markets where we can focus on the development of the Sinsay, Cropp and House brands. Their price range suits their development, especially in such commercial spaces as retail parks in smaller locations.
• The Eastern region i.e. Ukraine, Belarus and Kazakhstan. Due to the war in Ukraine, our development in the eastern part of the continent has been halted.
• South-Eastern Europe (SEE) i.e. Romania, Bulgaria, Croatia, Serbia, Slovenia, Bosnia and Herzegovina, North Macedonia and Greece are all markets with great development potential for all LPP brands, but especially for the Sinsay brand. We are gradually expanding our brick-and-mortar network there, strengthening our presence in the Balkans.
• Western Europe (WE) i.e. Germany, Great Britain, Finland and Italy, are countries where the development of the sales network will be carried out conservatively.
• Middle East (ME) i.e. Egypt, Qatar, Kuwait, the United Arab Emirates and Israel. The Reserved brand’s presence in the region is established by working with a franchise partner. At the same time, we continue online sales based on external sales platforms.

In response to changing customer preferences and behaviours and the ubiquitous digitalisation and transformation in retail, our omnichannel strategy involves a holistic approach to both sales channels, i.e. traditional and online. As a result of the situation related to the outbreak of the COVID-19 pandemic, the qualitative and quantitative development of the online channel has become a priority for LPP. The inseparable elements supporting the development of the online channel are logistics and technology which determine the success of e-commerce and customer satisfaction. For this reason, our company focuses its activities on expanding its distribution network (distribution centres and warehouses dedicated to e-commerce services, i.e. fulfilment centres) in Poland and abroad and gradually increasing the share of state-of-the-art technologies in logistics and customer service processes.

At the end of 2023, our brand offerings were available in a total of 39 markets, including 28 offline and 34 online countries.

2. Digitization of organizations

We operate in the fashion sphere, but at the same time, in response to the revolution we are seeing in the apparel industry, we are a technology company. We develop IT solutions tailored to our needs ourselves. We implement modern technologies of the so-called. Fashion Tech throughout the value chain, from product through logistics and sales. We have our own analytical facilities to understand mega trends and customer expectations. This allows us to respond flexibly and quickly to changes in shopping preferences and to design collections tailored to the current needs of our customers. Without the digitalization of our organization, the implementation of LPP’s business strategy would not be possible.

As part of our Fashion Tech activities, we focus our efforts on using modern technology to:

• Continuous improvement of the collection according to the expectations of our customers,
• expanding the range of sales and after-sales services in line with global trends in the retail industry,
• Increasing the flexibility of our distribution network,
• Full integration of traditional and online channels in the spirit of omnichannel strategy.

3. LPP sustainability

In an era of growing awareness of the importance of responsible business, elements of our concern for the environment – the environment and people – are reflected in LPP’s strategy. We base the company’s development on balanced rules for all company processes.

Our sustainability strategy is responsible fashion, that is, thinking about our collections not only through the prism of garment design, production, distribution, use, but also giving our clothes the so-called “sustainable” look. of a second life after its use by customers is complete.

This comprehensive approach is our response to the current climate challenges. Each year, we want to effectively reduce LPP’s negative impact on the environment, but also to educate our customers and business partners on how, together, we can effectively take care of the planet for the sake of ourselves, but also for future generations.

In 2019, we announced LPP’s second Sustainability Strategy “For People For Our Planet” scheduled for implementation from 2020 to 2025, based on four pillars: design and manufacturing, elimination of plastic, chemical safety, and infrastructure and buildings. This is our program of activities and goals we have set for the near future, but also a manifestation of responsibility for our environment.

Sustainability is also the company’s pro-social activities, the vast majority of which we carry out through our LPP Foundation, established in 2017. We help disadvantaged children and young people and the sick. We also support medical facilities and organizations caring for people at risk of social exclusion.