CCC Group unveils new business strategy

‘A year and a half into the pandemic, the market has changed a lot. Some trends have accelerated, and new ones are gaining ground. As the CCC Group, we have worked hard through this period and are coming out stronger. At the same time, we want to do our best to prepare for the coming years to be able to seize every opportunity that comes our way. Hence the update of our strategy. Today, we open a new chapter of growth, building an omnichannel fashion platform,’ says Dariusz Miłek, Chair of the Supervisory Board of the CCC Group.

The CCC Group’s GO.22 strategy, announced in January 2020, provided for numerous changes across the Company’s operations. The most important ones were product development and marketing communication, investment in technology and digitalisation, rollout of online sales channels – including new tools and services for customers, and elimination of non-strategic assets and projects. The Group delivered against the vast majority of its plans, with the pandemic significantly accelerating the implementation of directions adopted by the Company at the time. Consequently, less than two years from the publication date, the Group resolved to update its strategy and align it with the new reality.

‘The transformation of consumer behaviour has accelerated significantly over the past several months. Shopping preferences have shifted even more towards digital retail channels and today’s customers expect even more up-to-date, fast and consistent service across different channels,’ says Marcin Czyczerski, President of the Management Board of the CCC Group. ‘Our organisation has always boldly embraced change and delivered rapid growth. This still holds true – we want to multiply the potential we have today. We are merging online with offline to provide customers with new shopping experience.

Our key strategic goals and aspirations by 2025 include the following:

• achieve a threefold increase in the Group’s annual revenue vs the year ending October 31st 2021,
• deliver a consolidated EBITDA margin above 12%,
• drive growth in revenue from new product categories (non-footwear) to at least one-third of total revenue,
• achieve an over 60% share of online in the Group’s revenue,
• improve NPS (Net Promoter Score) by 10 points for each brand/channel within the Group,
• achieve an MSCI ESG rating of A+,
• drive employee engagement index to over 10pp above the industry average.

‘Business growth, customer satisfaction, product development, progress in digitalisation and sustainability – these are the key directions we want to follow. Our mission is to unlock fashion for everybody, everywhere. By delivering our goals, we want to become the number one omnichannel fashion platform in Central and Eastern Europe. We are well prepared to pursue these ambitions,’ explains Marcin Czyczerski.

The goals outlined in the new strategy will be pursued based on the omnichannel platform, with its foundations being as follows:

• The CCC Group has own brands and over 1,000 third-party brands in its portfolio. The overall product mix meets the needs of various customer groups. The Company focuses on developing new non-footware product categories. In doing so, it aims to grow a unique ecosystem of product flows using both full-price and off-price channels.
• Communication and customer base. Building a customer base and using advanced analytics is a key element of the omnichannel platform. The activities targeted at consumers will be based on personalisation taken to the next level via all communication channels, building customer value and managing it over the entire life cycle.
• The Group aims for continued intensive technology development, with its pillars being omnichannel customer experience, cutting-edge stores equipped with digital solutions, robotisation and innovation.
• Supply chain. Up-to-date logistics and supply chain remain a source of competitive advantage for the CCC Group. The Company intends to harness its full potential in this field through a holistic end-to-end view, new directions and diversification of supply, expansion of e-commerce logistics and full integration of store and warehouse stocks.
• Sustainable development. The Group will continue to undergo dynamic changes while maintaining its sense of responsibility for customers, employees, society and the environment. Sustainable collections, reduction of Scope 1–3 emissions, equality and diversity in the workplace, and observance of the highest standards by business partners are objectives set in the Company’s new strategy.
• Culture and people. The process of implementing the plans and ambitions of the CCC Group will be supported by its organisational culture, which is underpinned by values like customer-centricity, entrepreneurship/resourcefulness and teamwork. The Company’s strategic goals in this area include a 10-point increase in NPS across all the Group’s brands, a three-fold expansion of the FashionTech team and an improved employee engagement level (+10pp above the industry average).

‘The slogan of our strategy is Everything fashion, Omnichannel Platform. It highlights the fact we are venturing out into deeper waters, a bigger market. In addition to footwear, we will extensively develop apparel and other fashion categories, because we have the customers, resources and skills to do so. “Omnichannel platform” means we can easily add new categories, brands and products for different customer segments and prices. It also means we are everywhere a customer might need us – because we enjoy a strong position both in stores and in the digital world. We have a quite unique, strong business model, and the chance to expand our market shares post-pandemic is great,’ notes Karol Półtorak, Vice President of the Management Board, Strategy and Development, CCC Group.

The CCC Group currently owns five brands (CCC, HalfPrice, eobuwie.pl, MODIVO and DeeZee), which complement each other, catering to the needs of various customer segments. The Group is set to harness the brands to consolidate its position in the home markets, with the international expansion planned mainly in the e-commerce channel.

The CCC Group’s strategy GO.25: Everything fashion. Omnichannel platform is available at https://corporate.ccc.eu/prezentacje.