Our local approach sets us apart

Gross profit at GFG, which has international ecommerce platforms including The Iconic, Zalora, Dafiti and Lamoda, rose 28% YoY to 183.7 million (156.5 million) in the three months to 30 June. Revenue, on a constant currency basis, increased 18% YoY to 397.3 million (338.5 million), compared to 336.1 million (286.4 million) in the equivalent period in 2020. Meanwhile, adjusted EBITDA grew 22% to 11.6 million (9.9 million). ).

Christoph Barchewitz, co-CEO of the GFG Group, told Drapers that the positive results came down to a “local approach”, which “has been a huge advantage during the pandemic”.

If you can deliver local flavors and digital experiences, then you have an advantage over businesses that take a global ‘one size fits all’ approach,” says Barchewitz. Touching on each customer’s local situation. For example, if people are scared, or bored at home, or excited to be out again, your marketing message needs to reflect that.”

He explained: Most of our teams around the world live local to the markets they work in, not only at the country level, we have people in local cities, so their understanding of the local market is very strong. This goes back to our fundamental belief that fashion and retail are local businesses. Though [GFG] is digital, knowing the local market is still just as relevant.

Barchewitz said that because around 13,800 of the group’s 14,000 employees are based in each of the group’s end markets, he can understand the impact of covid in each country where he operates. For example, what goods do customers want in each country of purchase.

GFG operates markets around the world, including The Iconic in Australia and Dafiti in Brazil. The group’s headquarters are based in London.

To prepare for the peak trading period, Barchewitz said that GFG has been working to ensure its stock can be replenished quickly and efficiently: We have prepared ourselves to be flexible in responding to peak demand.

“We have expanded our category [in the quarter GFG launched new categories and brand partnerships with Country Road Group and Massimo Dutti. It geographically expanded its ranges with Kate Spade and Yves Saint Laurent], and thanks to our marketplace business, our inventory is virtually unlimited, which will help us respond to any increasing demand. We hope that by the end of the year, vaccination rates across our markets will increase and shoppers will be looking for reasons to buy more fashion products.