Silvia Recchimuzzi and Michael Kahn

PRAGUE/GDANSK – With stars like Rihanna, Justin Bieber, and Billie Eilish sporting its designs, Nanushka, a Hungarian fashion house, has achieved stardust that few designers could only imagine.

The company is not the only one of many up-and-coming designers from Central Europe who are making a name for themselves in global fashion. They showcase their designs on catwalks in London, Paris, and New York, and they also target markets like China and the United States.

Nanushka in Budapest, once a failing local brand has now seen its annual revenue rise 33 times to 33 million Euros ($38.32 Million) since 2016, when a private capital firm joined.

Nanushka is a sustainable fashion brand that focuses on vegan leather and other eco-friendly designs. According to the annual FT 1000 report of Europe’s leading high-growth firms, Nanushka was named Europe’s fastest growing company.

The global ready-to-wear scene has also seen the rise of other designers from central Europe, such as Nehera in Slovakia, who was worn by Hollywood stars Keira knightley, Tilda Swanson, and Marion Cotillard. Also, Magda butrym in Poland was sported amongst others by Megan Fox (and Hailey Bieber).

These firms have created a niche for high fashion by creating niches. Facebook Inc Instagram, and other platforms that allow independent young designers not affiliated with international fashion centers to be found by an audience looking for something new.

According to Nanushka’s chief executive Peter Baldaszti, who is married to Sandra Sandor founder and designer, it wouldn’t have been possible to create a global fashion house in Budapest without social media.

Although the brand opened two stores in New York in 2019, and one in London in 2020, it still considers the United States its largest market. However, the company believes that China will be the next big thing. Baldaszti’s parent company Vanguards Fashion Group also bought Sunnei, an Italian fashion brand, for $7 million in 2020. This was part of an overall strategy to expand Europe’s fashion collection. 

Central Europe is home to a strong tradition in craftsmanship and textile design dating back from the First Republic, which was between the World Wars. The region was once a center of culture.

After the 1989 fall of Communism, Western luxury fashion brands and houses opened shops in the area to make bags, scarves, and clothing. They took advantage of the close proximity to the west European market, the lower cost, and the skilled workforce.

Local luxury brands operating in these countries are turning their attention in the opposite direction, to access a global luxury goods market that is forecast to rise to $383 Billion in 2025 from $309 Billion this year. It will be helped by growing demand in China and Millenials, Statista, Hamburg-based company.

“We began with Paris… but Instagram was something that really opened doors for brands that come from countries not on the fashion map,” Zofia Chylak (founder of Polish handbag manufacturer Chylak) told Reuters.

Handbags made out of Italian leather by Chylak are priced between 200 and 250 euros. The brand is well-known among Polish citizens living overseas, which has allowed it to become a worldwide success.

DIE FOR AUTHENTICITY

Bratislava-based Nehera – named after Czech businessman Jan Nehera who in the 1930s was first in the world to pioneer ready-to-wear clothing – presented its 2022 spring collection in Paris and plans to return to New York after pulling back during the pandemic.

“We are aiming to re-enter the U.S. and European markets,” Ladislav Zdut, founder of the brand which last month opened a showroom in Milan and is in early talks with local investors to help fuel expansion plans, told Reuters. 

“But we significantly increased orders to South Korea and China and were growing during the pandemic.”

A younger generation of designers, from less developed countries, have accumulated contacts and the knowledge necessary to reach an international luxury market. This is according to Achim Berg (global leader for McKinsey’s apparel and fashion groups).

He told Reuters that while the big luxury brands dominate the market, there’s a need for authentic brands to curation and authenticity.

Berg says that Scandinavian companies such as Acne Studios and Ganni, among others, show the potential for small regions outside of fashion capitals to establish their own brands.

In central Europe, the rising wages have helped to create a steady local market base that is able afford luxury goods. This helps fledgling designers set themselves up before they look abroad, say designers and companies.

Poland’s Magda Howeverrym, a start-up in Poland that was established in 2014 and then expanded globally, Jakub Czarnota, chief executive of the company told Reuters.

Lady Gaga was photographed in a short, polka-dot Magda butrym dress on an Instagram post. The brand is also a favourite of social media influencers and can be found in over 40 countries. Czarnota explained that Asia and Middle East have strong growth potentials going forward, however the company will continue to explore its regional roots in order to find something unique.

Global consumers want to find newness, and that gives brands an advantage. 

He said that Eastern European designers could draw inspiration from their heritage and culture to create unique products and collections. 

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