Haglöfs, the Swedish outdoor company, has adopted nine strategic initiatives to adjust the brand's proposition and improve its profitability in the coming years. The changes are led by Peter Fabrin, the company's chief executive since November.
Among the broader strategic adjustments, Haglöfs will switch from a product-driven to a more consumer-focused approach. While innovation remains a key aspect of the brand, it should become more commercial and improve its distribution. Fabrin supports a more segmented market approach, with stronger emphasis on sell-through.
Fabrin intends to accelerate design and product development, reducing the lead time by one or two months. With the same purpose, the CEO is prepared to nearly halve the number of Haglöfs' suppliers and perhaps to shift some production from China to other Asian and European countries.
Yet another objective is to lead in terms of sustainability. Fabrin says more than 75 percent of the brand's products are manufactured in a sustainable way, and it has started taking the same approach to footwear.
The Nordics make up more than half of Haglöfs' turnover. Fabrin is eying continued growth in Denmark, Norway, and Finland but his strategy calls for the Nordics' share to be reduced to about 35 percent of the brand's turnover in about five years. Apart from improving sales in European markets, Haglöfs wants to expand cautiously in Asia and it has started to explore the U.S. market through a partnership with Backcountry.com.
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