Need for Speed Na-kd is miles ahead of the competition

NA-KD NEED FOR SPEED

On the move at top speed, but always with deliberation - the Na-kd fashion brand proves that speed is something that can be planned meticulously. To this end, Na-kd has upgraded its management once more. Text: Martina Müllner-Seybold. Photos: Na-kd Internally they jokingly call him the Messiah - Mike Mikkelborg complements the Na-kd management perfectly. He says “speed to consumer” is his passion.

Na-kd is run by a young and agile team that lives in the here and now. Co-founder Magnus Hjörne was there when it all began.

“S ale statistics are per se a window to the past. A brand like ours, which offers numerous editions per season, cannot be measured by the classic backward-looking seasonal sales rates anyway,” says Magnus Hjörne, who is part of the original founding team of Swedish fashion brand Na-kd.

Why should a brand like Na-kd be interested in the past anyway? Collecting data that supports the Na-kd procurers in all future decisions - now that would be quite an achievement! It therefore comes as no surprise that the Swedish brand opted for hiring the man who is capable of such wizardry. Mike Mikkelborg has worked for many major fashion brands, ranging from Gant to fast fashion specialists such as Mr Price and New Look. “To be perfectly honest, I was bored to death after 25 years in the business. I wanted to leave the fashion industry, because there was nothing new on the horizon. In terms of change, the fashion community tends to talk the talk rather than walk the walk,” the Swede analyses. “When I first met Jarno Vanhatapio, the founder of Na-kd, it became apparent immediately that we see enormous potential in each other.” No wonder, since Mikkelborg had recently set up the consulting firm Pilot Digital, which enables buyers of large brands or retailers to optimise their supply chains in more organised, intelligent, and - above all - digital processes. This is the kind of entrepreneurial spirit that Na-kd loves: radically future-oriented. Given that Na-kd always goes all in, Mikkelborg joined the brand on the 1st of July 2018, without further ado. “He’s one of the most important assets in our young history,” Hjörne argues.

TOP OF THE CLASS: THE NEW ZARA WITH

AMAZON VIRTUES

The time-to-market benchmark that Na-kd wants to reach with Mikkelborg’s help is clearly defined: Zara. In terms of planning, it looks like Amazon is the most likely role model. Jeff Bezos is not known for being a margin fetishist. The proverbial golden rule is to have the right volume of a product rather than suffering write-offs due to surplus. Hjörne puts it this way: “What good is the best piece if you only have 30 of it, but could actually sell 3,000?” Brands face unpredictability of this kind on a daily basis. However, the dilemma can only be solved by those who are close to their target group in terms of Big Data. “Marrying this kind of mega communications machine, which connects Na-kd with its target audience, to the bestin-class internal planning system is an incredible opportunity. It allows us to be more agile and quicker than anyone else in the market. Making trends accessible for consumers as fast as possible has been my passion throughout my career. But for the very first time, I am presented with the perfect conditions to unite all aspects. The top performing companies have a clear focus on ‘speed to consumer’. This means they have less discounts, less surplus, and much happier customers. And we can now marry it all with the ability to inject fresh ideas constantly, which is part of the business model. We are capable of anticipating trends as successfully as communicating them - an enormous advantage.” Na-kd’s lead is particularly evident in its anticipation skills. “We can plan demand on the basis of external data - not merely internal data, which is highly subjective. We now have an outside view, so to speak. We can analyse how the market is developing, what influencers are doing, and which trending topics and trends prevail online.” Sounds like Big Data rocket science, you say? Well, that’s exactly what it is. But the young brand is the perfect vessel to harness such innovative ways of thinking and acting. “The whole team is young and agile, everyone has the absolute will to be better, smarter, and faster. This is extraordinary,” Mikkelborg reveals.

MAGIC RETAIL FORMULA

Nobody expects the retail trade to understand all the technical details of the magic machine that is Na-kd. Hjörne: “The promise we can give our retail partners is that Na-kd will use a large amount of external and internal data to have the right product on the sales floor in the right quantity at the right time. We work on perfecting our approach every day.” Mikkelborg is highly ambitious: “I dream of 30 days ‘time-to-consumer’.”