Reima accelerated sustainability efforts and continued to grow digital sales in 2020
Reima’s sustainability work bore fruit in record share of sustainable materials and factory audits, as well as numerous industry and consumer awards, as detailed in Reima’s Corporate Responsibility Report 2020 published today. Despite the Covid-19 pandemic and exchange rate fluctuation, Reima’s position, driven by growing own ecommerce, is stable in existing markets and the brand has been well-received in newer markets like North America.
Reima Group’s (RE Child Wear Group) net sales in 2020 was 122.3 million Euros (2019: 140.7 mil. Euros). Changes in currency exchange rates and production cuts, which Reima made as precautionary measures against the pandemic, had a negative impact on net sales. The Group’s EBITDA was 11% of net sales and cash flow from operations improved significantly.
The strongest sales growth was seen in own ecommerce, which increased by 38%. In total, direct-to-consumer business consisting of own ecommerce, solution sales and retail, made already 34% of Reima’s net sales in 2020. In total close to 60% of Reima’s sales now come from digital, both from own- and third-party channels.
Share of sustainable materials multiplies in Reima collections
Reima launched in 2019 its accelerated sustainability roadmap for 2020-2023. In line with ambitious targets in the sustainability roadmap, the share of styles with sustainable main materials grew to 23% in 2020. These styles represented 19% of Reima’s purchases, compared to less than 2% in 2019. Despite the challenges posed by the pandemic, a record 93% of Reima’s finished goods factories were third-party audited on human and labour rights.
Reima’s annual carbon footprint in own operations (energy and electricity use) was 315 tonnes of CO2 in 2020 For the first, Reima will reach carbon neutrality through compensation. The offset is made in partnership with Finnish startup, Puuni, through planting trees on municipal wasteland during this spring.
Other 2020 sustainability highlights include Reima becoming a bluesign® system partner, seven industry and consumer awards including for Reima’s innovative monomaterial products, and record-high staff satisfaction levels.
Driving growth in digital and direct-to-consumer operations
Over 85% of Reima’s net sales come from outside Finland. The group’s products are available in over 70 countries across the world through own digital channels, such as 15 localized Reima stores and the international Finnish Baby Box ecom store. The digital business is in the core of Reima’s strategy. In 2020, new localized Reima ecommerce stores were opened in Japan and Canada. In spring 2020, Reima also launched its Amazon USA store.
Direct-to-consumer operations include Reima’s own retail which supports the digital operations. In 2020, Reima opened a new store in Norway in the spring, and launched a renewed store concept in Helsinki and Moscow. At the end of 2020, Reima had 48 own stores in seven countries. There are also around 40 franchise stores in four countries.
Reima’s Corporate Responsibility Report 2020