A fashion brand to accelerate its global growth
The most exciting Finnish fashion brand, that is pioneering a unique ethical fur concept and and has developed a new wooden design shoe concept, is raising funds to accelerate its global expansion.
We have decided to KEEP THE CAMPAIGN OPEN, even though we have reached our investment target. The EXTRA INVESTMENTS will be used for sales & marketing and will allow us to GROW FASTER.
As an interesting fact, we are about to set an international crowdfunding record for attracting international funding. At the moment c. 75% of the campaign investments are from outside Finland. Thank you for your support.
Key Company Highlights
Marita Huurinainen has been described as the most exciting Finnish fashion brand at the moment. The brand is known for its WILD ethical fur and leather collection and the patented WAVE wooden design shoe concept. The aim is build an internationally successful luxury fashion brand.
Strong Products to Build the Brand
Marita Huurinainen has developed two unique fashion concepts: WILD furs & leathers and WAVE shoes. Both have significant market potential and the company has an exclusive ability to capitalize on them.
WILD - Ethical fur and leather collection
Marita Huurinainen offers an alternative to enjoy fur with a good conscience. No farmed fur is used. All animals used for the fur products have lived in their natural environment in the Finnish wilderness and have been hunted for conservational reasons to control the animal populations. Every animal skin is purchased directly from registered hunters. Marita Huurinainen has the exclusive right to use the Wild Finnish Fur source of origin label. The leather used in the collection is either from semi wild reindeer or wild moose. This way, it can be ensured that no animal has suffered for fashion. Marita Huurinainen has pioneered this concept and is the only international fashion brand using the ethical concept of wild fur.
WAVE - Wooden concept shoes
WAVE is an iconic new wooden shoe concept. It has received the Ornamo Design Award as the best Finnish design object in 2009. The shoe is not only beautiful to look at but also incredibly comfortable to wear. It is made of Finnish birch wood. It has been described as the next Finnish design icon. The design is internationally protected and the complex production technology has been developed by Marita Huurinainen.
Based on the two flagship concepts WAVE and WILD, Marita Huurinainen is creating a luxury fashion brand with a strong connection to its Finnish origins. With WAVE, the brand captures the feeling and atmosphere of the Finnish summer: light, colorful, playful, different and happy. WILD, on the other hand, captures the moods of the Finnish winter: dark, mystic, cool, noir and melancholic.
In order to connect these concepts and to round up the brand identity and product offering, new "mainstream" products are constantly developed. An example of a successful product launch are the summer dresses, which were introduced last summer in the Marita Huurinainen boutique. The collection sold out immediately. Based on the success, the dresses were sold to other retailers internationally, generating large orders for spring/summer 2016.
Large and Attractive Market
The international fashion luxury market amounts to EUR 300 billion, of which fur products constitute EUR 10 billion. The overall outlook for the luxury market indicates solid growth rates and high sector profitability. The market is very fragmented with many large international brands but no dominant market player. It has been possible for many new brands to quickly grow and establish themselves as strong and profitable brands in only a few years (e.g., Acne, Tory Burch, The Kooples). A recent trend in the fashion world is the emergence of sustainable fashion. Consumers are increasingly choosing products that have been produced in an ethical, environmentally-friendly, and sustainable manner.
While the fashion market is large and fragmented, certain market opportunities remain untapped. Several Swedish and Danish fashion brands have succeeded internationally. It is therefore surprising that from Finland - a country with a very positive international image (cool, rich in design, beautiful, interesting and positively different) - no premium or luxury fashion brand has gained international success. There is a great market opportunity for a Finnish brand to establish itself. It can benefit from the popularity of Scandinavian fashion while differentiating itself with a Finnish twist.
Also, while several other product categories have clear champions (e.g., Jimmy Choo in shoes and Louis Vuitton in handbags), there is no internationally recognized fur brand in general, let alone one that offers ethical fur.
Successful Proof of Concept
The sale of the Marita Huurinainen collections is carried out mainly through two sales channels: own distribution (retail) and other retailers (wholesale).
The majority of the retail sales comes from the Marita Huurinainen store which was opened one year ago in the prestigious Galleria Esplanad shopping center in central Helsinki. Additionally, pop-up shops are operated on a seasonal basis, while sales via the own online store target mostly international customers.
The wholesale business includes already over 30 retailers in 15 countries. The brand's clients include several large department stores (e.g., Stockmann in Finland, Kaubamaja in Estonia) as well as high-profile independent boutiques. In addition to the Finnish home market, the focus is currently on the US and Asian markets, where distribution agreements have been set up in 2015, and significant results will start showing from 2016.
In the first years of operations the company generated sales of EUR 42,500. In 2014 this number grew by over 200% to c. EUR 132,000. For 2015 the revenues are expected to reach EUR 250,000. At the moment revenues are at c. EUR 140,000 for 2015 (Jan. to Sept.), which is an increase of c. 100% to the previous period.
Until now, all results have been achieved with very minor investments and no significant marketing. The reason why we were still able to grow this fast is the uniqueness of the product concepts. The WAVE and WILD collections have proved themselves as products that are easy to sell, as they are innovative, eye-catching, functional, and beautiful.
Marita Huurinainen has already reached a strong brand recognition in Finland (due to extensive press coverage and the visibility from the own store) and the brand name is well-known to Finnish consumers. The international brand awareness is constantly growing and Marita Huurinainen has regularly featured in leading international fashion magazines.
Commitment to Growth
Marita Huurinainen is currently a fashion start-up. It operates in the "established" fashion business environment, while aiming to operate as a fast-growing and dynamic start-up company. The company is strongly committed to high growth, and it has a strategy of inviting external investors in order to collect funds that will accelerate the ability to grow the business.
The growth plan of the company includes three key elements.
- Expand distribution in current markets and through current channels. In Finland, the U.S., and Japan the company has established a good distribution network of wholesale clients. This has been reached with both direct sales staff and external sales agents. In the next years, these markets will be penetrated further, and the number of wholesale clients will be increased. To reach this, the sales and market budgets will be increased and more money will be spent on marketing and PR. The latter will also benefit the sales from the own Marita Huurinainen shop and the online sales. It is planned to eventually upgrade the current boutique for a larger retail space with an equally good, or even better, location.
Launch of new products. As the brand becomes increasingly known and good relationships with retailers have been established, the company will bring out new product lines to leverage the brand and the distribution network. Products planned for the next seasons include knitwear, leather accessories, handbags, and an autumn shoe collection.
Enter new markets. At the moment, the company has sales representatives in only a few key markets. As more resources are available, the company plans to quickly expand its sales operations and to hire new sales agents for more markets. Key regions to expand into include China, several large European countries, Russia, Korea, and the Middle East. It is also planned in the mid-term to open own Marita Huurinainen shops outside Finland.
Investment Proceeds to be Used for Realising Growth
The aim of the crowdfunding campaign is to secure the resources to lift the company into the next growth stage of the international expansion. The proceeds will be used for the following purposes:
Investment into sales & marketing: It is planned to invest more funds into marketing efforts and sales activities. On the marketing side this will include content creation and increased promotion. On the sales front it is planned to participate in more trade fairs internationally. Experienced hires are also planned as well as the collaboration with international showrooms for sales & marketing.
Product development and production enhancement: It is planned to investment into the development of new product lines (e.g. knitwear, handbags). Additionally, further investments into the production process are planned to reduce production costs. The hiring of a production coordinator will also be considered.
After the conclusion of this funding the round the company will continue raising funds in the near future in order to pursue its growth plan.
Attractive Investor Proposal
The company is clearly determined to create shareholder value and is therefore pursuing a growth plan to increase the value of the company. The mid-term goal is to grow the company into a state where it can be listed on the stock exchange. That will not only give it access to further funding options, but also it will allow investors to exit their investment.
By becoming an investor in Marita Huurinainen, you will receive several exclusive benefits:
- Owning part of the company and participating in the (financial) upside of creating a successful fashion brand
- Becoming part of the community, a brand ambassador, and helping to promote Finnish fashion
- Invitations to exclusive events
- 25% discount on all purchases from the Marita Huurinainen store and online store
- Free wool hat (for men and women) as an early X-mas present to shareholders
If you have any questions regarding the business and regarding the investment, please feel free to contact Andreas Jank under [email protected] or +358 46 8129455.