“To become the leading brand in men’s fashion.”
This is the goal set by the company and brand John Henrik. And now the journey there must be speeded up.
eEquity intervenes with 70 million Swedish kronor. The funds are intended for building the organization, expanding the range of products and expanding the scope of marketing. This is the first time that companies raise capital and founders, John Ekstrom And Niklas Nordbergwill remain the majority owner after the investment.
“John and Niklas have built a great company that delivers premium clients, which has grown every year from the start with good profitability. The company has undertaken a successful transformation journey in recent years towards a scalable e-commerce business and we are convinced that we will add a lot of value based on our experience from other growth journeys in Neighboring sectors,” writes Victor BorgInvestment Manager at Equity, in a press release.
The company was established in 2008 and has become a rapidly growing alternative in men’s fashion and accessories in the premium segment.
“Unlike other brands, we have customers who come to us for necessities. For example, they turn to us for special occasions, like job interviews and weddings. Our new customers are often young, and they remain loyal customers over the years,” says Jon Ekström.
From the start, physical stores were responsible for the majority of sales, but in recent years the company has changed hands. E-commerce is now the main channel which today accounts for 70 percent of sales.
The company describes its e-commerce strategy as “exceptionally successful” — e-commerce is expected to grow nearly 80 percent during the company’s last fiscal year, which runs through the end of April of this year. In addition to Sweden, customers are located in the United Kingdom, Denmark, the United States and Norway.
Clothing production has been cited as a contributing factor to environmental degradation. How is it working to be as sustainable as possible?
“Now there are two sides here. The first thing I think is the most important is how long the clothes last. We have clients who come back after several years, because only then do the clothes break. We also work a lot with basic clothes and basic colors that never get old fashioned,” says Jon Ekström. So we don’t need to change groups often.”
“But making it as sustainable as possible is a huge challenge. But we are working hard on this front and that is also one of the reasons for raising capital. The goal is to have everything we sell from recycled materials or organic materials in the future,” says John Ekström.
The company’s sales are expected to reach around SEK 135 million during the financial year that runs through the end of April.
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