Strategic risks relate to the business’s ability to stay competitive in the long-term. These risks include the demand shortfall, marketing- and brand risks and dependency of individuals and external partners.
- Strategic risk relating to personnel. Risk that Boozt lacks ability to attract desired personnel and keep key personnel.
- Marketing/Brand risk. Risk that the product mix offered on the Boozt webstores does not communicate the “look and feel” that we want the Boozt brand to be associated with.
- General reputational risk. Risk that an incident or other circumstance occurs and causes reputational damage for the Boozt brand.
- Competitive risk. Risk that a strong player enters the Nordic market for fashion apparel in the segment where Boozt operates.
- Demand Shortfall. Risk for demand shortfall on the top brands.
Mitigation of risk
- Strategic risk relating to personnel. The Group seeks to be an attractive employer by a competitive offering both in terms of salary and benefits, but also by creating a culture that our employees enjoy being a part of. In our Code of Conduct, we state the values that we want the business to live by.
- Marketing/brand risk. The product mix is monitored daily. When budgeting and planning for a new season the brand and product mix can be changed by adding or reducing the offered range of products for a brand or product segment.
- General reputational risk. We monitor and evaluate our own performance through our Net Promoter Score and ratings on TrustPilot. All employees are obliged to act in accordance with the adopted Code of Conduct, and we work actively with partners and vendors to ensure that they act with a high integrity.
- Competitive risk. We build our brand with the aim of increasing our general awareness in the Nordic region. We aim to differentiate ourselves to create customer loyalty through analysis and development of the product mix and the usability in our offering. We strive to deliver our products as fast as possible and aim to shorten the reverse logistics to the benefit of the customers.
- Demand shortfall. We monitor sales and selected KPI’s in real time to be able to rapidly respond to customer behaviours. The product/brand mix is reviewed continuously and we seek to adjust our brand mix to the targeted audience.