LPP on the route to global expansion – first over RESERVED store the Middle East05.02.2015
5 February 2015 is a landmark date in the history of LPP, the owner of RESERVED, House, Cropp, MOHITO and SiNSAY garment brands. The opening of RESERVED flagship brand showroom in Egypt marks the beginning of the company’s expansion outside Europe. Over the next five years LPP intends to open at least several dozen of showrooms in the Middle East.
For many years now the LPP’s development strategy has involved continuous investment and increasingly global coverage of its sales network. Today’s opening of RESERVED showroom in Egypt marks a symbolic moment for us – our first step in a new direction. Following last year’s successful debut on the largest market in Western Europe, in Germany, our products are now present in the Middle East – today in Egypt and very soon in other countries of the dynamically developing region – said Hubert Komorowski, Vice-President of the Management Board.
Due to cultural differences, placing western clothing brands in the Middle East is a challenge Western companies must face. RESERVED debuts in Egypt, the most liberal country in the region where the western fashion, especially in cities, it is becoming more and more common. Hence our showrooms were designed in line with the standards that apply in the network of across European markets, while the collections offered will be different from those sold in Europe, mainly due to the different climatic conditions. The showrooms will offer much less winter models. Moreover, during Ramadan, the most important Islamic festival, RESERVED will expand the range of models with elegant dresses designed especially for this time in the Muslim calendar (long skirts, dresses, covered shoulders). Our company is also careful in making sure that the offer, addressed to clients from the Middle Eastern countries, will not include themes banned in the Muslim culture, including nudity or religious symbols.
Although LPP’s business model involves building a network based on company’s own showrooms, the Middle East markets, due to economic and political environment in the region, will feature a network of LPP brands’ showrooms operating on a franchise basis. The partner of our Group is Azadea, a company that cooperates in the Middle East with players such as Inditex, or brands such as Max Mara, Pepe Jeans or Promod. By the end of 2015 as many as eight RESERVED showrooms, at least, will open in Egypt, Qatar, Kuwait and Saudi Arabia. Right now our company is also completing agreements that will result in the presence of the Middle East of its brands designed exclusively for female customers, i.e. MOHITO and SiNSAY.
The showroom that has just opened in Cairo is located in the Festival City Mall shopping centre. Its covers more than 1500 m2, and it will employ about 50 people.
LPP, a company listed on the Warsaw Stock Exchange since 2001, is one of the fastest growing companies in the clothing industry. For years it has been consistently operating in Poland and overseas, being successful on the demanding clothing market. The company manages 5 well-known fashion brands, a network of over 1500 showrooms and creates jobs for nearly 18 thousand people at its offices and sales structures across Poland, European countries as well as in Shanghai. The company continues to invest and enter new markets. In 2014 the company was included in the WIG20 index, which generates a significant part of the turnover on the Warsaw Stock Exchange, it is also present in the prestigious index MSCI Poland.