VIBAe operates internationally from Finland. How has the company, founded in 2020, managed to achieve what many only dream of within just a few years? Entrepreneurs Minna and Kalle Gummerus explain that they focus on their strengths, which include utilizing outsourcing services, particularly in logistics.
“VIBAes are shoes that give good vibes. But first, you have to put them on,” summarizes Kalle Gummerus.
VIBAe manufactures and sells shoes that stir strong emotions. One reason for this is the insoles, which everyone who tries on the shoes marvels at for their comfort. When combined with minimalist design, ethics, and long durability, a product emerges that has captivated over 100,000 people in more than 150 countries. Among these fans are Hollywood star Tom Hardy and Ed O’Neill, who played the shoe store owner in the Pulmuset TV series.
Despite its high-profile customers, VIBAe is not well-known in Finland. The reason is that the company, founded in 2020, has targeted international markets from the start. For the same reason, e-commerce has been their primary sales channel for a long time.
“Our biggest customer bases are in the U.S., the UK, Canada, and Australia,” says Minna Gummerus, the other half of the entrepreneurial duo.
VIBAe Targeted International Markets from the Start
How has this young shoe brand succeeded in international expansion, which is traditionally considered the biggest challenge for Finnish companies—and particularly for e-commerce businesses?
“The product is number one. A close second is marketing. We’ve been lucky that our customers are so passionate, which has led to a lot of organic visibility through them. In addition, we currently spend around 150,000 to 200,000 euros a month on online advertising,” says Minna Gummerus.
This amount may sound large, but the entrepreneurs have calculated that each euro spent on advertising brings back three. As long as the return rate remains at the same level, the Gummeruses are ready to increase their ad budget even fivefold.
“Unfortunately, it doesn’t quite work that way. At some point, the law of diminishing returns comes into play,” Kalle Gummerus laughs.
As the Business Grew, Logistics Outsourcing Became More Attractive
VIBAe is a laid-back lifestyle brand that reflects its creators’ personalities, but it is run just like any other growing business. As the business expanded, tasks that were previously handled by themselves or relatives have been outsourced to service providers.
One of the most significant outsourcings has been logistics. With the increasing shipping volumes, VIBAe decided to procure warehousing and logistics services from Axla Logistics.
“As our revenue grows, so does the need for consistent processes and technologies that add automation,” says co-founder Hannu Salminen, responsible for the development of VIBAe’s e-commerce.
Andreas Ögård, Head of Sales and Marketing at Axla Logistics, considers VIBAe an exemplary model of how Finnish e-commerce businesses should approach logistics.
“VIBAe is definitely a trailblazer in Finnish e-commerce when it comes to international expansion and logistics.”
Outsourcing Logistics Ensures Smooth Operations as Sales Grow
Supply chains and warehousing become more complex as goods are moved to more countries. Seasonal variations and demand spikes also require fluctuating staff levels.
If you want to keep everything under control, an e-commerce retailer must become an expert in logistics as well. If you also want to ensure responsibility in warehousing and transportation, it requires even more work and learning.
Outsourcing eliminates all of this. The partnership with Axla enables VIBAe’s continuous growth.
“We believe that the e-commerce retailer should be good at e-commerce, and the logistics partner should be good at logistics. VIBAe focuses on ensuring sales, and we make sure the goods move,” Ögård says.
What Does Axla Logistics Do for VIBAe?
Products are shipped directly from the factory to Axla’s facility in Tuusula, where they are stored in the AutoStore automated warehouse. When a customer orders shoes from the online store, the information is immediately transferred to Axla’s warehouse system. Next, robots collect the ordered items, and Axla’s employees send them on their way. The process is optimized for efficiency and speed.
International logistics is a complex field where experience and relationships smooth the path to success. VIBAe’s experienced entrepreneurs have both, but the collaboration with Axla completes the picture. Through Axla, VIBAe has been able to open new markets.
“Axla is a partner we can trust with logistics, and their experience in international e-commerce logistics has opened new doors for us,” Salminen says.
Why Axla?
What made the Gummeruses and Salminen choose Axla as their partner?
“In outsourcing, the rule is to hire people who are smarter than you,” says Minna Gummerus.
The Gummeruses and Salminen all agree that Axla impressed them with its professionalism, technology, and people. Salminen describes the company’s previous approach to logistics modestly as “homemade.” Axla brought professionalism, which provides a reliable backbone for growth. One thing they all highlight is the AutoStore automated warehouse, which they first learned about through Finnish Design Shop.
Last but not least, shared values stand out.
“Today, sustainability should be a given. Unfortunately, this isn’t always the case. From the very beginning, Axla made it clear that sustainability is as important to them as it is to us. Building a partnership on this shared value system has been natural,” says Minna Gummerus.
About VIBAe:
Founded in 2020, VIBAe is a Finnish-Californian shoe brand and family business.
- The company was founded by Finns Minna and Kalle Gummerus, as well as Hannu Salminen, and Americans Ludo and Tammy Malmoux.
- The small letter ‘e’ in VIBAe’s name represents ecology, ergonomics, and ethics.
- VIBAe shoes are designed in Finland and California, made in Portugal, and materials are sourced from local suppliers in Europe.
- In addition to its online store, VIBAe has stores in Helsinki, Malibu, Barcelona, Tokyo, and Sydney. VIBAe also operates a summer store in Hanko from June to August.