For at least a few seasons now, Poland has been a fairly serious player in the global fashion shopping market. Products manufactured in Poland are successfully exported to countries around the world. More than 60% of sales revenue is generated by the export of Polish textiles. Most often it goes to Germany, France and Ukraine. The dynamic development of the fashion market in Poland has made it possible to take 11th place among the largest clothing exporters in the world. Recent years have been full of various investments, with Polish clothing manufacturers behind them. The expansion included not only brick and mortar shops outside the country, but also online retail channels. Polish brands are gaining renown and are increasingly recognized in various corners of the globe, demonstrated, for instance, by the expansion of the Polish brand Eobuwie.pl, which already operates in 18 markets, including Lithuania and Latvia.
The Baltic fashion market is therefore not without significance for Polish brands. Especially, since predictions for its development appear quite positive. The upward trend is strongly noticeable, despite a slight setback in 2022, the following years will see dynamic growth. In 2023, revenue in the apparel market is expected to be around $425 million (2022 – almost $345 million), while in 2024 it will be just under $515 million, and by 2027 it will grow to $723 million. Polish brands noticing this trend would therefore not only look more and more closely at the Baltic market, but would want to truly participate in it.
Which Baltic fashion industry leaders dominate the Baltic market?
The Baltic market is full of global brands, as well as local ones. The more so because the people of this region of Europe are constantly putting a strong emphasis on the local development. One of the popular ‘Baltic’ brands is Soulz. It is a multi-brand online store based in Lithuania, specializing in sportswear and streetwear, but also offering well-recognized global brands such as Maxmara, Hugo Boss, Marella, Sandro. Soulz has gained recognition for the innovative designs, high quality materials and unique style. The brand is growing, offering new collections and is expanding its presence in physical stores and online.
Membershop is another multi-brand e-store with designer clothing operating exceptionally fast in the Lithuanian market. The brand focuses on creating comfortable, casual clothing for men and women. Membershop is growing through the expansion of its store network, as well as through its online presence, offering their products through an e-commerce platform.
Next to the local leaders we also have popular global brands like Asos or AboutYou, but the fashion market seems hardly saturated there. There is still room for good fashion designs such as fashionable, European-made women’s clothing, children’s fashion or accessories. It is worth noting that Polish fashion brands, both established and up-and-coming, offer a variety of high-quality products, made in Poland with attention to detail such as the origin of the fabrics, partnerships, fair relations with suppliers, ecological and sustainable packaging, and personalization of purchases. These are all values that have caught on well in Poland, and domestic businesses have done a great job of implementing them. There we have our export commodity. The richness of the Polish clothing sector allows brands to create diverse collections that can also attract the attention of customers in the Baltic market.
Polish brands also often have a more attractive price point than some international brands, which may translate favorably into conquering the Baltics and attracting customers there. A price-competitive offer may attract the attention of consumers, especially those people who seek good quality-to-price ratio.
What fashion shopping trends dominate the Baltic market, and what do residents of this part of Europe most often look for?
Residents of the Baltic countries often opt for fashionable yet functional style. Popular product groups in these regions are outdoor or street-wear, but Baltic users are also quite keen to purchase high-end products. Brands such as Columbia, The North Face or Patagonia remain popular. Young people are interested in street fashion, which consists of bold designs. Brands such as Adidas, Nike, Puma or H&M are constantly popular among the younger age groups. From online shops, exclusive brands such as Tommy Hilfiger, Hugo Boss, MaxMara or Emporio Armani are sent to pick-up points or directly to homes.
Even around 40 % of online shoppers in the Baltic States choose to buy clothes and shoes from e-shops. Although residents of these countries prefer local online shops, these do not always meet their expectations. This is primarily because they have a rather limited offer. And this is quite a characteristic of Baltic e-commerce. Therefore, there is great potential in so-called cross-border shopping. While returns may be a threat in this space, it is an opportunity to develop online sales in this part of Europe. In order to find your way in this market with your e-business, it is worth betting on a logistics partner who knows the market and has the necessary background.
The Baltic market and the importance of a trusted logistics partner in the development of online sales
Entering foreign markets should go hand in hand with the right strategy, supported by the right partners. E-commerce is that sales space in which logistics plays an extremely sensitive role. Regardless of its model, whether we bet on dropshipping, fulfillment or own warehouse, it is necessary to organize fast deliveries to e-consumers. Venipak, in addition to technological organization, simple integration with the system, ready-to-implement modules, has a well-developed network of pick-up points and its own fleet of vehicles delivering parcels directly to the customer. Thus, a trusted partner supports the development of e-stores, determining a more efficient and secure entry into foreign markets. Possessing the know-how, the experience formed on the basis of cooperation with brands operating in the Baltic market, described above, will support those that enter the Baltic e-commerce market.
Favorable factors for the expansion of Polish fashion brands in the Baltics
Poland directly shares a border with Lithuania, not far from Latvia and Estonia too. This makes logistics and trade between these regions easier. Geographic proximity and similar cultural backgrounds add up to a common history, traditions and cultural values, which can make it easier for Polish brands to understand consumer preferences and needs in the Baltic market. It is worth noting that Polish apparel brands, both established and emerging, offer a variety of high-quality products. The richness of the Polish clothing sector allows brands to create diverse collections that can attract the attention of customers in the Baltic market.
Polish brands also often remain financially appealing compared to some international brands, which can translate favorably into conquering the Baltics and attracting customers there. Price-competitive offerings can attract the attention of consumers, especially those looking for good value for money.
There is currently a growing trend relating to interest in local brands, which are perceived as unique, authentic and often created with environmental awareness. Polish apparel brands can take advantage of this trend by promoting their cultural identity and offering products with local character.
What about the challenges?
However, when planning to expand into the Baltic market, Polish brands must also be aware of certain challenges. These will include, for example, competition from local and international brands, adapting to local consumer preferences and expectations, and the need to properly adapt marketing and distribution strategies to the specifics of the Baltic market.
Polish brands have good reason to plan a successful expansion into the Baltic market. The favorable circumstances are undoubtedly geographical proximity, but also product quality, price competitiveness and growing interest in local brands. However, success will require adaptation to local conditions and consumer preferences, as well as appropriate planning and expansion strategies.