Investment in marketing pays off at Sosandar

AIM-listed online women's brand Sosandar has revealed that an increased investment in marketing is yielding "very good results", and it has ventured into TV advertising for the first time.

The company's chairman Bill Murray told shareholders at its AGM today that the business had enjoyed a strong first half of September and by the mid-way point of the month sales had already exceeded that of last September.

In July the company staged a share placing, which was oversubscribed, and raised £7m. Murray said these funds had gone towards strengthening Sosandar's design capacity, widening its product range and trialling additional marketing channels.

"As expected, we've seen these activities result in increased customer acquisition alongside continued growth from our ever-expanding base of loyal existing customers," Murray said.

This month also marks the brand's first foray into TV advertising with a controlled test in the North West with ITV. Murray said initial results from the trial had been encouraging and has led to further testing in other TV regions.

"We have also started to use out-of-home digital media for the first time, with Sosandar advertising appearing across digital panels alongside station escalators at key London underground stations including Euston and Kings Cross St Pancras. We expect the contribution to brand recognition and awareness that this creates, together with our TV advertising, to be significant and, over time, we are confident it will further support our work in new customer acquisition and retention," Murray added.

Sosandar was founded in 2016 by former Look magazine editor and publishing director, Ali Hall and Julie Lavington, to fill a gap in the market for women who were looking for trend-led fashion, but had outgrown sites such as Boohoo and ASOS. It was admitted to AIM the following year following its reversal into listed cash shell Orogen.

The founders' quickly established a celebrity following for the brand, including Amanda Holden and Susanna Reid, who have been seen wearing the clothes on national media and across their social channels.

This additional profile and marketing, combined with the expanded product range has attracted the attention of third-party online sellers and Sosandar is now successfully trading on SilkFred, while conversations have started with other interested parties.

"We are pleased with the recent performance of the business, which has been in line with management expectations. We are well-funded for continued growth and these are extremely exciting times for Sosandar," Murray concluded.

All resolutions at the AGM were passed.