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We - KappAhl

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STRATEGY<br />

SECURE GROWTH THANKS<br />

TO A HIGH GROSS MARGIN<br />

AND STRONG CASH FLOWS<br />

<strong>KappAhl</strong>’s strong brand is associated with<br />

many positive qualities; loyalty, credibility,<br />

value-for-money and attractive fashion. The<br />

company’s strategic market position is based<br />

on a broad range of fashionable and goodvalue<br />

clothes and accessories for women, children and men.<br />

GROWING TARGET GROUP GIVES GOOD PROSPECTS<br />

<strong>KappAhl</strong>’s main target group is women aged 30–50 with families.<br />

The age group is large and growing in relation to the population<br />

as a whole in all the countries where <strong>KappAhl</strong> is established. It also<br />

has better purchasing power than younger customer categories.<br />

Another advantage is that these customers are more loyal and<br />

less unpredictable than younger target groups. Our target group<br />

might not spend most money on clothes, but they don’t just buy<br />

for themselves – they often shop for the whole family. They like<br />

fashion and rely on <strong>KappAhl</strong> being able to offer it.<br />

Many of our customers may not be among those who benefit<br />

most from business booms, but nor are they particularly<br />

adversely affected by downturns. This makes it easier for<br />

<strong>KappAhl</strong> to plan its operations and the company is also less<br />

sensitive to business cycles than most of its competitors. ➻<br />

6<br />

Kappahl 2008/2009

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