International fashion chains enter the Finnish market

Finland offers growth opportunities for new entrants and proximity to the Russian market.

According to Nora Immonen, Citycon’s Director of New Business, the reasons behind the international brands’ interest in Finland include the weak economic situation in southern Europe, and the fact that there is space for new entrants in the Finnish market. The proximity of the Russian market is also attractive to many international brands.

Yrjö Gorski, managing director of Fashion Commerce Finland, believes that in some product categories Finland is still behind other countries in terms of clothes purchases. Citycon and the fashion chains believe, however, that consumption is set to grow.

Tommy Hilfiger is looking for growth through resellers and franchising stores. The Danish companyNoa Noa is opening its fourth store in Finland in autumn 2012, and aims to expand its network quickly to 10-15 stores. Some of the stores will operate on a franchising basis. According to Gorski, franchising entrepreneurship has boomed and supported the entry of international chains in Finland. For example, Devernoise and Zizzi are currently looking for entrepreneurs in Finland.

Source: Kauppalehti