Wolford has set itself clear strategic goals. Controlled multichannel distribution, i.e., stores directly operated offline and online coupled with partnership stores operated by wholesale partners, and a prominent presence in key luxury and premium department stores globally will be used to reach every potential customer worldwide. The company intends to exploit the full potential of its own locations and substantially boost their profitability. Wolford aims to generate long-term, sustainable growth.
To reach these goals, the measures already introduced in 2014 to revitalize the brand, modernize the product portfolio, refocus market communications, and boost multichannel distribution will be consistently pursued and extended in some cases. Since 2015, Wolford has also implemented a new go-to-market model that is exclusively aligned to the needs of end customers and ensures a continuous stream of new merchandise at the point of sale.
Furthermore, in 2015/16 the company scrutinized all of its organizational and cost structures. Detailed analysis, which included a comparison of the company with other luxury brands, revealed that Wolford is positioned well in terms of its gross margin, but that its overall costs are structurally too high for it to achieve its profitability target. Against this backdrop, in the current 2016/17 financial year Wolford will not only be consistently pressing ahead with the measures already introduced to optimize production and logistics, it will also be restructuring its sales & marketing organization and analyzing all support functions in terms of their contribution to its success.
So Wolford’s strategy is two-pronged: The company intends to systematically boost its revenues while at the same time reducing its overall costs and thus gradually increasing its profitability.