In response to the ever-changing retail trends, the Baltic company Baltika Group representing fashion brands Monton, Mosaic, in Latvia, as well as premium brands Ivo Nikkolo and Baltman, has begun restructuring its business and changing its existing concept at the end of 2019. As a result, Monton and Mosaic will be merged under a single brand. Almost 20 years have passed since the company was established, and as Maruta Ērgle, the CEO of Baltika Group in Latvia, points out, the intended changes in the Baltic market are only a logical step in the further development of the company.
At present, the particularly changing situation in the retail sector is mainly the result of an intense competition among shopping centres. During the last year, new and influential market players have appeared in Riga, forcing also the existing ones to carry out extensive renovation and expansion work in order to retain the existing customer base and attract new audiences. It is expected that the tight competition will be felt for at least the next couple of years which means that stabilizing the activity will take some time and that the new market and consumer segmentation will not be as clear as it used to be. Thus, choosing the right business partners is now a particularly responsible decision that requires not only adaptation but also a flawless business approach.
The biggest impact of these market changes and the retail market turbulence is felt by the tenants of shopping centres who have been forced to make more than one strategic decision on their future development. The Baltic fashion company Baltika Group, based in Estonia and representing a wide network of fashion brands, rich in tradition, both in Latvia and Lithuania, has also decided to make internal adjustments in order to elevate the company's efficiency and strengthen its market position. One of the primary decisions to optimize the business model was the merger of the Monton and Mosaic brands, which means that in the future, collections of both brands will be available to consumers under the single name of Monton, while retaining the former characteristics of both. In addition, the festive clothing lines and cuts of the previously represented brand Bastion will now be integrated into the existing Monton collections.
“By offering design created in the Baltics, we are clearly aware of the wishes of our local customers and the functionality of the clothing they require considering the four seasons and Nordic lifestyle. The design and construction of the brands we represent are specifically tailored to these needs, while ensuring high quality with rigorous collection monitoring at the production level. Changes in the company mean that Monton stores will now offer an even more diverse range of clothing and accessories and will also segment their assortment to different body types, tastes and life situations, reaching an ever-wider audience,” says Maruta Ērgle.
At the moment Baltika Group's business vision primarily focuses on the Baltic region and improving the B2C model. E-commerce - plays an important role in the company's vision, and is becoming more popular in Latvia, demonstrating a constant growth trend. This aspect is considered in the further development of the Baltika Group and its long-term goals, while in retail markets the main focus will be on service quality. In line with growing demand and lifestyle trends, the company intends to focus more and more on the concept of sustainability in the future, with a particular emphasis on responsible fashion collections which, due to limited edition, are not a mass-product.
About Baltika Group:
Baltika Group is an international Baltic fashion brand company founded in Estonia in 1928. Since 2002, the company manages four brands: Monton, Mosaic, Baltman and Ivo Nikkolo, offering consumers five to six seasonal collections, base collections and special limited-edition collections each year. Currently, Baltika Group operates 128 retail stores in nine countries, covering a total retail area of 24,000 square meters. The company's turnover in 2018 was over 10 million euros.