Founded in 2006 at the height of the country’s economic boom by a quartet of twenty-something Latvian women united by a desire to create products that showcased the best of Latvia, Madara had a difficult gestation. As managing director Lotte Tisenkopfa relates, it soon became obvious that at a time when quick returns from property speculation and not long-term investment in an untried manufacturer were Latvian banks’ lending priorities, the company would have to look elsewhere for start-up capital. “We went to see a couple of banks but they weren’t interested and so we quickly gave up on looking for a loan,” Tisenkopfa says. In the end a combination of cash from friends and families alongside a grant from the European Union’s Regional Development Fund enabled Madara to launch four products that immediately caught the attention of the buying public and soon had previously uninterested banks clamouring to buy into their success.
Madara specializes in face and skincare products that are made in Latvia from natural materials and certified organic plant extracts, free of artificial ingredients. The company’s eco-friendly approach also extends to its print and packaging, which uses paper from sustainably managed forests. As a result, Madara has been recognized as a green business pioneer by the World Wildlife Fund in its Deeper Luxury report on companies that embody the future of the luxury goods markets by promoting social and environmental responsibility.
The company has managed to generate more than positive press coverage. Its revenues in 2009 were €2.5 million, more the double those of 2008, and it is looking to double up again in 2010 with the aid of a sales drive in the US. It has already scored a notable coup closer to home, having landed an exclusive distribution deal with Germany’s Douglas, Europe’s biggest cosmetics chain, and at the end of 2009 opened its first international store in Moscow, giving it access to the free-spending Russian consumer market. Madara’s strong export performance has enabled it to ride out the estimated 25% to 30% revenue slump in the Latvian cosmetics market in 2009, where it remains committed to maintaining a market presence with a number of stores acting as brand support that not only promote its own products but also showcase the work of Latvian lighting designers mammalampa, which created the Madara outlets’ eye-catching ceiling lamps.
“We want to promote a positive message about Latvia through Madara,” says Tisenkopfa, adding that the company is looking to expand its production facilities and increase its 30-strong workforce.
see also:
Latvia learns from the biggest crash of them all
Selling off a state secret
Latvia aims to revive tourist industry
