Outsourcing identified as best solution to achieve Loavies’ growth ambitions
In spring 2017, following rapid revenue growth, e-tailer Loavies faced an important decision: should it outsource the logistics operation, or would a DIY approach be the best option? Consultancy firm Groenewout helped the online fashion store to find the solution. Less than six weeks, the conclusion was clear: outsourcing still makes the most sense. Loavies’ founder Jorn van Klooster: “A good fulfillment partner makes it easier for us to expand abroad.”
Loavies is an online fashion store selling clothes developed and produced under its own label. The approach is entirely based on ‘fast fashion’ principles: a new style becomes available online within a month of being designed. If an item exceeds expectations in terms of sales, extra stock can be added within the space of ten days. “We are completely trend-driven, in other words we don’t work with collections that change at fixed times of the year, for example. Our items remain available for as long as they continue to be popular. That approach means that we offer between 1,200 and 1,500 different styles through our webshop at any one time,” says co-owner Jorn van Klooster, who founded Loavies five years ago.
The retail formula is a hit with the target group, which comprises young women aged 18 to 28. In 2017 Loavies is on track to achieve 105 percent revenue growth, and Van Klooster expects the turnover to double again in 2018. Most of that growth will have to come from abroad. “We currently generate around 25 percent of our sales outside of the Netherlands – mainly in other European countries, but we also ship to customers in the USA and Australia,” explains Van Klooster.