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Kappahl Executive On Brand Spin-Off – E-Commerce Paved The Way

Caroline Ahlberg
"High engagement".

Yesterday, fashion group Kappahl announced that it is choosing a new path for its brand Kay/day. After being launched in 2019 and subsequently growing in the company's own channels, the concept is now getting its first physical store in Stockholm, completely separate from the parent company's other assortment. But what is the strategy behind the establishment and what happens to sales online in the future?

Ehandel.se spoke with Caroline Ahlberg, Head of Assortment and Marketing at Kappahl, to understand how the company's e-commerce laid the foundation for the store launch, the challenges of breaking away and whether more of the company's internal brands may take the same step.

READ ALSO: Sold separately on Zalando – now the brand gets its first store

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Kay/day has, until now, had its fixed point in Kappahl's regular stores and in the company's own e-commerce platform. Recently, the company also took the step of offering the clothes under its own brand on the fashion platform Zalando. However, it is the development on its own platform that has formed the basis for the decision to now invest in a standalone location.

A large proportion of Kay/day's sales take place digitally in our own channels, and we have just added Kay/day to Zalando, says Caroline Ahlberg to Ehandel.se.

When asked if the demand on Zalando has influenced the decision to open a completely independent physical store, she rather highlights the company's own channel:

I would say that it is primarily that we have built up the Kay/day world on our own website, and seen how it has developed and been received there, that has influenced the decision to open a store of its own.

Own Website Could Become A Reality

Currently, sales via the internet account for a large part of the brand's total turnover. It is still too early to determine exactly what the distribution between the physical and digital channels will look like when the new store has opened.

Today, about 40 percent of sales take place online. It is difficult to answer today how much of our future sales will take place in-store, says Caroline Ahlberg.

But despite the success online and the launch on Zalando, Kay/day still lacks a completely independent website. Customers who want to shop for the brand's products digitally are therefore directed to Kappahl's common platform. However, having its own home on the web is not ruled out in the future.

For the time being, we refer to Kappahl's website, it could absolutely become relevant in the future, but we cannot answer when.

Opens Up For More Establishments

The location in Västermalmsgallerian is the first test where the clothes are presented entirely in their own environment. If the reception is positive, there are already thoughts of continuing the expansion with more of its own addresses.

This is the first own store, so far Kay/day has been on areas in Kappahl's stores, but in the new store the brand gets to take its place fully and convey the whole expression and lifestyle, says Caroline Ahlberg, adding:

The store is an important first step for the future, where we can evaluate the overall experience.

The initiative also raises the question of whether the clothing group plans to spin off more brands from its portfolio and allow them to operate more independently.

That is very possible, we see, for example, good development in our baby and toddler offering Minories, replies Caroline.

The Challenge Lies In Prioritization

Allowing a concept to step out of the large corporate umbrella to operate on its own feet often places new demands on working methods and strategies. Kappahl is currently in the middle of this transition, but exactly what trials await along the way have not yet been fully mapped.

It remains to be seen. We have high engagement internally and everyone is solution-oriented, so the biggest challenge may be to prioritize, says Caroline Ahlberg.

During the years that have passed since the initial launch, the company has had time to accumulate a number of experiences. Building up a concept from an idea within Kappahl to now being ready for a completely independent store sign has been a process that has required flexibility. When we ask Caroline what she takes with her as the most important lesson from this journey, she highlights the importance of constantly listening to consumers.

Working from a clear customer insight, be brave, persistent and adjust constantly according to new insights, concludes Caroline Ahlberg.

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Editorial Staff
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