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Slovenia Business Week no. 09/2005: Fashion Company Rasica to Enter EU Markets Under Own Brand Name

Rasica, a company that has transformed from a knitwear manufacturer into an all-inclusive fashion company, is entering EU markets for the first time under its own label, Fabula

Rasica, a company that has transformed from a knitwear manufacturer into an all-inclusive fashion company, is entering EU markets for the first time under its own label, Fabula. Rasica general manager Matjaz Pust told the press on Monday, 21 February that the label was already being marketed in the UK and Ireland.

Pust explained that the name Fabula was chosen for the sake of easier pronunciation. According to him, Fabula ware will be first tested with customers in Ljubljana this spring, while it will hit store shelves elsewhere in Slovenia and the markets of the former Yugoslavia in autumn.

Since Rasica has been a well-recognised brand on the markets of former Yugoslavia for 50 years, the new label will be linked to the established brand (Fabula by Rasica), Pust explained. As customers still know Rasica primarily as a knitwear manufacturer, the company hopes the new label will change this.

Fabula is intended for women aged above 30 and targets the mid- to high-price market. It entails a new marketing concept, as the latest arrivals will hit sales points on a monthly basis and will no longer depend on seasonal collections. In this way, some 600 different designs will be offered to customers a year.

The new collection, designed by Tina Perko, is advertised by Croatian pop star Severina. According to Pust, the company opted for her because she personifies all major features of the collection, intended for successful and dynamic women, who keep themselves up-to-date.

Severina explained that she had loved Rasica since she was little. At the time she used to steal a Rasica jumper from her sister. Now that Rasica offered her to become their new model, she accepted without a moment's hesitation as she was now to get her "own jumper" at last, said the pop singer, who was also at hand for the press conference.

According to its general manager, Rasica generated more than SIT 1bn (EUR 4.17m) in sales revenue in 2004, while wrapping the year at "around zero". This was largely due to the cost of restructuring that was completed last year. The company moved its entire production to contractors in Slovenia and abroad, so that the only in-house departments are now development, production and quality control, logistics and marketing.

Rasica has doubled sales under its own brand name within the past three years. According to Pust, the plan for this year is to increase consolidated sales revenues by 20 percent and profit by 5 percent.

Source: Slovene Press Agency STA

Author: STA