Case VIBAe – sales increased 6.9x with Foppa
VIBAe is a Finnish footwear brand with its own stores in Helsinki, Malibu, Barcelona and Tokyo. The company’s products – the world’s most comfortable footwear – are sold not only in brick-and-mortar but also through its own online store across the world
Working capital has been the company’s biggest bottleneck for growth. Sales is increasing so drastically that production capacity has to be constantly accelerated. Thus, scaling up requires large amounts of money to increase inventory and marketing investments.
Since the company’s market area is global, majority of marketing spend goes to digital channels such as Facebook and Instagram. In January 2023 the company was able to use appr. 6 times the budget compared last year. Implementing the budget was easy; the budget was allocated to Foppa’s payment card, which VIBAe added to its marketing channels
Sales grew significantly in January. The number of visitors in the online store increased more than 4 times and the sales almost 7 times.
“The cooperation with Foppa has been smooth and the implementation of bigger budget very easy. Such a growth would not have been possible without Foppa”, says Kalle Gummerus, CEO of VIBAe.
Only a small part of the expenses of the 6x budget was incurred for January, so the company was able to increase its cash flows to 8.4x compared to last year.
“It was great to see that VIBAe’s sales growth was stronger than the budget growth, even in the short term. Such a rapid scaling shows that the company’s marketing has done things right. I can’t wait to see the figures we’ll see in the coming months”, sums up Elina Heinonen, Chief Commercial Officer at Foppa.