A WORD FROM THE CEO
2016 has been a year of preparation for future business growth. Sales have not increased at rates seen previously and EBITDA is less than last year as costs have been incurred on marketing and infrastructure projects that will deliver benefits in future years.
Our long term strategy is to diversify our brand portfolio, whilst maintaining growth of our founding, and core brand, Great Lengths. This year we invested in our first marketing campaign directed at the end consumer. Our goal is to raise brand awareness and encourage consumers to seek out Great Lengths salons for their hair extensions to drive sales growth.
We seek to add new brands that complement, not compete with, existing brands, and brands that will be perceived as high value by our customers. I.C.O.N was the first such brand and we are excited by the opportunities presented by our newest brand, Bellami Hair.
Carol Leo, CEO
IMPORTANT EVENTS IN 2016
- May – Implemented a new enterprise wide IT system to enable process improvements and enable future multi-brand business growth.
- June – Launched new consumer marketing campaign for Great Lengths with associated new brand imagery and marketing collateral.
- September – Expanded existing office and warehouse space to accommodate future business growth in current location.
- September – Signed trade distribution agreement with Bellami Hair for the UK and Ireland.
- October – Implemented a new organisation structure to reflect the multi-brand nature of the business.
- November – Recruited two new senior managers (Operations and Marketing) to facilitate business growth and development.
The Kpaca business is driven by the increasing consumer spend in the beauty and more specifically professional hair salon market. Fundamentally, despite times of volatility, the demand of hair extensions is stable throughout Europe in more or less all price segments in the market. We like the Kpaca business due to its market characteristics where demand for its premium products shows relatively low price elasticity and is in essence a consumable to its target segment. We view the Kpaca platform as our vehicle to further explore the professional hair salon market.