Successful entry into the Latvian market for a cosmetics brand
We built a distribution network in Latvia from scratch. We recruited 3 local representatives and signed contracts with 12 drugstore chains. The brand reached break-even point in the new market in just 7 months.
A Polish natural cosmetics brand wanted to enter the Latvian market but had no contacts or knowledge of local law there. Within seven months, Baltic Growth Partners built a sales network from scratch. We focused on hard data and specific contracts with major drugstore chains.
The challenge
The client had been trying independently for over 14 months to interest Latvian buyers in their products. They sent emails and samples but didn't receive a single response. Storage costs for the batch of goods prepared for export were 4,150 PLN per month, and products were slowly losing their expiration dates. The main problem was the lack of physical presence in Riga and lack of knowledge of negotiation specifics with Baltic retail chains.
Our approach
We sent two of our specialists to Riga, who have been active in the Baltic region since September 2017. First, we conducted a quick price audit at 14 competitor points of sale. Then, we recruited 3 local sales representatives: Arturs, Janis, and Elina. Each received clear guidelines and a list of 25 key contacts to call in the first week. Results matter, not promises, so we verified the reports from these conversations daily.
The solution
We changed the logistics model, which allowed us to reduce goods transport costs to Riga by 14.2% thanks to a contract with a local carrier. Baltic Growth Partners also handled the preparation of Latvian labels according to local legal requirements in exactly 11 business days. We organized a total of 48 direct meetings with buyers, presenting them with hard numbers regarding margin and inventory turnover. We organize sales from scratch, so we personally oversaw the signing of each of the 12 contracts.
Results
Thanks to our actions, the EcoBeauty Polska brand is now available in 214 points of sale across Latvia. The investment in our help paid off for the client after 7 months and 12 days from the start of cooperation.
Timeline
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August 2023Competitor price audit and recruitment of 3 salespeople in Riga.
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October 2023Finalization of label translations and product registration in offices.
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December 2023Signing the first 4 contracts with key drugstore chains.
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March 2024Achieving full product availability in 12 retail chains.
"Baltic Growth Partners did not waste time on presentations. They showed a plan, went to Riga, and returned with signed contracts. This is concrete work based on hard numbers."