First steps into international playing fields

The challenges continued in the textile field in 2024, and the generally poor economic situation made the purchasing behavior of customers difficult to predict. Despite the challenges posed by the operating environment, Gugguu’s year was successful and the focus of business operations was on measures aiming at profitability.

Gugguu’s emphasis in 2024 was in improving profitability and preparing for the next growth period.The measures will strengthen the company’s profitability as demand recovers. Through committed team work and quick reactions, significant results were achieved within a short time span.

Among the key changes during the financial period were the role changes in the company’s management. The founder of Gugguu Anne Valli became the company’s CEO in the spring. The company’s other founder, previous CEO Miia Riekki, continued as the brand’s creative director. Sini Savela was appointed as the chief operating officer in Valli’s place.

Despite the increased costs and difficult financial situation, Gugguu succeeded in expanding its operations, and its first subsidiary began operating in Norway. The online store and a pop-up outlet were launched in Oslo in September. Establishing the company in Norway was a long process. That said, business operations in the new country are off to a good start, and the first customer events garnered plenty of positive feedback. The aim was to increase awareness about Gugguu in Norway through events, among other measures.

The development efforts for a new product group and responsible recycling continued

The two-year project carried out in cooperation with Business Finland reached its conclusion in June. As part of the project, Gugguu has been developing an entirely new product group, which is planned to be launched in the fall. In addition to this, existing product groups have been expanded and significant investments have been made in the development of merino wool products, for example.

Despite the difficult economic situation, operations were successfully expanded with the establishment of the first subsidiary in Norway. The efforts to develop an entirely new product group also continued.

Ecology was also at the core of Gugguu’s operations in 2024. The Gugguu Preloved store, which encourages the recycling of children’s clothing, was expanded and updated, and customers were provided with an even faster way to recycle Gugguu products that are in good condition. Ninyes, which is the first and only recycling platform for responsibly manufactured clothing in Northern Europe, will continue as the company’s recycling partner.

Toward a new growth period with positive expectations

Gugguu has spent the challenging years honing its strategy, which has been integrated very well into the company’s daily operations. Panostaja has brought structure and strategic vision to the company’s board work, which focused everyone’s sights on the future and long-term goals in a positive way. In addition to providing financial support, Panostaja was involved in developing the company’s internal processes to support decision-making and management.

The coming year seems bright for Gugguu, as purchasing power is expected to increase gradually. The development efforts in recent years have created a strong foundation, and the results will begin to crystallize in 2025. Gugguu’s most important goal in 2025 is to grow profitably. Future milestones include the launch of a new product group, and the efforts to strengthen the Norwegian market continue. In the future, the company’s growth will lean heavily on internationalization.

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

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