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PAPU – The new success story of Finnish design!

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MissMiss 4 days ago

hello everybody. Your competitor Gugguu has been a profitable success story. What is their key to success and how do you see your self copying that success?

anonymous 5 days ago

Hi PAPU, Could you please explain the background and reasoning of the following: "The company has four payment defaults from the last 12 months." Thank you in advance.

anonymous
Papu Design Oy
5 days ago

Thank you very much for your valid question. Papu has grown very fast and to be honest our internal processes have not followed with the same pace. However, we have put a lot of efforts during the last two months to make sure defaults like this will not happen again. This means changes in the organization and responsibilities. We have also changed our accountant services to another company to ensure high-quality services. We have even taken measures to make better money flow estimates in the future. We have also made measures to connect our ERP with our accounting system and sales channels. This is technique which we haven’t had before (started this Autum). However, technical means are vital for better planning of costs etc. Payment defaults are a result of a non-functional process which we now have fixed.

anonymous 16 days ago

Papu has made quite heavy losses with substantial sales. What do you see improving the profitability of the business and what has been the main costs of operation? Has there been investments that can explain the unprofitability of business operations but will give profits in upcoming years?

Apart from crowdfunding are there any other sources to get capital in the near future? From investors point of view company seems to be fragile as the crowdfunding will only secure operating capital for one year or two.

anonymous
Papu Design Oy
13 days ago

Thank you for your valid question. Papu is a young company. Our turnover has grown very fast and we have been able to build a strong brand with loyal customers. However, growing has not happened without growing pains. We now know that our business model works. In the future, we will concentrate on producing ethical, high-quality women and children clothes and sell these products through omni channel network emphasizing on digital platforms. Our own online sales have grown over 80% during the past year. In the future, we are not only growing our own digital services but are also looking into other digital platforms as well to grow our business especially internationally. There are a lot of things we can do better. First and foremost we will streamline our processes, organization and especially the product portfolio to make the company more profitable. A year ago the company did not have an ERP system. Now we do and understand better what we are good at and what not. We will take this information and concentrate on taking the company to the next level. Product portfolio really is a key issue to profitability. Naturally we will also make sure that our pricing is correct and the margins are what they should be. Needless to say, cost reductions will be also made. Papu has appointed a new CEO Ms. Anu Vauhkonen, who has a lot of experience of similar company situations. We have already taken actions in product portfolio, pricing, warehousing, processes etc. to make 2020 a profitable year for Papu. Our goal is to grow and meet the five million mark in a few years. At this point it is possible to find capital from other sources, too, if needed.

anonymous 26 days ago

Can you please share more details about the sustainability part? Since cotton does not grow in Finland, where do you buy your materials and how do you ensure that it is grown and transported sustainably?

anonymous
Papu Design Oy
25 days ago

Hi, thank you for your good question!

We are using mainly high quality organic cotton in our production but also other sustainable materials such as recycled polyester, wool, linen and lyocell. Our organic cotton yarn comes from Turkey and it is GOTS certified and dyed due to the OEKO-TEX 100 Standard requirements. All our fabrics are made in the EU, mainly in Portugal.

Certificates and the production happening in Europe makes it easier for us to ensure the good working conditions in our factories and also short distances requires less transportation. We prefer land and sea transport and logistic partners who are committed to sustainable values.

You can read more about our sustainability from our Sustainability Peak: https://bit.ly/2rFIcSn