Pioneer in children’s clothing invests in online trade

For Gugguu, the year 2020 got off to a good start, but the impacts of the coronavirus crisis on the company’s business became apparent very quickly. Gugguu did not waste time tackling the situation and proceeded to develop measures to ensure demand despite the challenges. Because the Child Fair event planned for April was cancelled, Gugguu organized a variety of online trade events for consumers. Investments were also made in digital marketing campaigns. These measures were effective, and the company’s net sales have increased in the autumn. Overall, Gugguu’s net sales dropped slightly in the financial period, especially due to the declining number of retailers.

However, online sales have increased consistently, which has been extremely important for Gugguu’s business. The coronavirus situation sped up the process of opening Gugguu’s updated online shop. The company has also made efforts to develop Gugguu’s online business significantly in other ways. At the moment, the company gets 82% of its net sales from online trade, 9% from outlets and the remaining 9% from retailers. Online trade has increased by 30% in Finland and by 51% abroad. In terms of net sales, the share of international customers stands at 7%.

The company is moving forward on its path toward internationalization, and the measures planned before the coronavirus to gain new customers in relation to sales and marketing have now been made entirely digital. This will slow down Gugguu’s internationalization somewhat, especially in countries where the company is not known well or at all. In Europe, consumers in Germany and Sweden, among other countries, have expressed interest in Gugguu’s products.

Products that can take years of wear and washing, and last from one child to the next.

Responsibility is at the core of Gugguu’s operations, and customers also expect the company to be extremely responsible. That is what the company is known for. In 2019, Gugguu developed its responsibility reporting arrangements, and in early 2020 it published a responsibility report as well as a report on ethical principles. In September, the Pro Ethical Trade Finland association published its annual report for 2020, which reviews the responsibility reporting and transparency of Finnish clothing brands. Gugguu placed in the second best category of the report, which is the company’s best ranking ever.

The outlook for 2021 is positive. Gugguu’s special focuses are breaking new ground and achieving international growth. In Finland, Gugguu’s responsible brand is well known and demand is increasing. Consumers have become very aware and are making choices based on responsibility. In marketing, a communal and customer-oriented way of engaging in dialogue with consumers is characteristic of Gugguu. It wants to provide its customers with experiences. A variety of cooperation models based on partnerships will also be deployed in 2021.

* In contrast to Panostaja, Gugguu’s financial period is April 1, 2019–March 31, 2020