TOWARD
SUSTAINABLE
FASHION

The bulk of our collections are manufactured abroad. Our Asian contractors are commissioned to manufacture models designed many weeks ahead of a collection’s launch – usually clothes that are available in all our stores and ordered in the largest quantities. In Asia, we collaborate with suppliers in locations such as China, Bangladesh, India and Vietnam.

In Europe, our network includes suppliers from Poland, Italy, Portugal and Turkey. In our country and on our continent, we primarily order models inspired by the latest fashion trends, where quick delivery to the customer is of the essence.

• Almost 9% of our brands’ collections are produced in Poland or its close environs.
• 22% are Reserved commissions.
• 34% are Mohito models.

Poland-based production enables us to promptly respond to rapidly changing trends. We are able to deliver the desired outfits and accessories to our stores in a dynamic, timely and demand-sensitive manner, because the most complex, fashionable and time-consuming models are manufactured in close proximity to where they are sold. This helps reduce logistical delays by anywhere from 2 to 6 months.

Just like our global competitors, we don’t have our own production plants. Instead, we outsource the manufacturing of our collections to external companies active in Poland and across Europe and Asia.

This business models allows our purchasing agents to base the production of individual models in factories that specialize in a specific type of clothing.

The LPP is a Polish company and works to support the Polish economy. Our brand concepts are born in Poland and this is where all our strategic decisions are made. Accordingly, we also pay our taxes here in Poland. Over the past five years, our contributions have increased the state budget by more than 4,3 bn PLN.

In the 2018 report of the Ministry of Finance, the LPP was ranked as the 30th largest CIT payer in the country, with a total contribution of more than 144 million PLN; this also made us the top third company in the trade sector. A year later, we contributed a record amount of more than 1 billion PLN to the state budget, including 134 million in CIT alone. In 2020, our contribution to the budget equalled 700 mln PLN.

The unprecedented crisis brought on by the Covid-19 pandemic has dealt a painful blow to the clothing industry all over the world. Our company has also been hard-hit by the pandemic. Having to shut down almost all our bricks-and-mortar stores overnight stripped us of our main source of revenue.

From the very start, our priority has been to ensure the safety of our employees, customers and partners, preserve as many jobs as possible and maintain financial liquidity. We lost no time in taking a number of measures to cut back costs, e.g. we cut our investment expenses down to the bare minimum, reduced the number of orders for the coming season, limited the openings of new stores, and the management and the supervisory board gave up their salaries.

However, these measures proved insufficient to guarantee that the company would survive into the future. This is why, following in-depth analyses, we were compelled to expedite the changes in our business model, putting a much greater emphasis on e-commerce and shifting our customer service strategy toward omnichannel sales.

Regrettably, this entailed a change in our employment structure. This decision was the most difficult to take, but also necessary to protect our company, ensure its continuity and, in the long run, enable it to grow and maintain a strong position in the market.