Since launching in 1999 Coolstuff has seen a steady growth and in 2014 the company generated SEK 129 million in revenue. Apart from Sweden, Coolstuff also has a presence in Denmark, Norway, Finland and Germany, and the company continues to be profitable.
Last year the overall sales grew 23 percent, with a 17 percent growth in Sweden, 22 percent in Denmark, 14 percent in Norway and 40 percent in Finland. What really stands out is the increase in Germany, which went from SEK 8 million to SEK 14 million, a 79 percent increase.
Christian Omander, co-founder of Coolstuff, says that the biggest reason for the success is due to a reduction in prices in September. They then began to match Amazon's prices, while at the same time introducing free shipping on orders over 30 euros.
– Results-wise cutting prices affected our earnings negatively, but we see it positively long-term and a necessary change in order to succeed, says Christian.
Time to Launch Coolstuff.com
This year Coolstuff makes two major investments to continue to grow. They will go all in on Halloween, and that means doubling the number of products in their range. According to Christian they are making this effort since the product range fits well with their other products, while at the same time the phenomenon is growing every year.
A great advantage for Coolstuff is operating in markets where strong Swedish e-retailers are not yet established, and where domestic supply is relatively weak. This is true especially for Norway where there is a very strong market for costumes and relatively weak domestic competition.
Furthermore, the company plans for a global expansion and this year it is time to launch Coolstuff.com, which from the start will mainly focus on the UK. In other European markets Coolstuff will be more passive and take one step at a time to see if they can achieve profitability in marketing and reach decent conversion rates before making any major investments.
Outside of the EU, Coolstuff will accept orders but the company will not actively invest in marketing. During 2015 the company is predicting sales to reach SEK 160 milllions, which means retaining the same growth as last year.