Lyko: Will reach 10 billion by lowering the conversion rate and being less data-driven!
During the interview, CEO Rickard Lyko reveals that the fast-growing company wants to turn over SEK 10 billion in 2028. But it wants to do so by being less data-driven, lowering the conversion rate, and focusing even more on strengthening its brand. A statement that probably puts ants in the heads of lots of e-retailers around Sweden.
The story of the successful family business Lyko in Vansbro has been told many times before. Grandfather Lyko survived 6 years in the concentration camps as a hairdresser during World War II before he ended up in Dalarna. During the financial crisis, his grandson Rickard abandoned his previous plans and went all-in with the family to build up the beauty company Lyko. The company is now listed on the stock exchange and has today exceeded the billion mark in annual sales. But they are still only in the beginning.
From the beginning, we have thought big. We have reached the milestone of 1 billion in annual sales, but that is just the beginning. By the end of 2028, we will reach 10 billion in annual sales. Even if it is a financial goal, it has never been about money for us in the family. We want to see how far we can take this, but it is a clear goal to measure annual sales, says Rickard.
For many e-merchants, the conversion rate and being data-driven is the holy grail today. Lyko's strategy is going in the opposite direction. They would rather have even more visits to their site that do not necessarily lead to purchases. Rickard rather thinks that it is positive if the conversion rate goes down if it is due to even more visits to the site. He prefers that more visitors strengthen their relationship with the company and the brand even without a direct purchase. In the long run, it is more important than making short-term decisions based solely on transaction data.
The collaboration with the outsourcing company OnlineFactory in the Philippines is a good example. David Olsson with us leads a collaboration with them in influencer marketing where they help us source micro influencers and every month creates new rewarding collaborations. Instead of focusing on generated orders and a direct return-of-investment, we focus on the number of collaborations with our fantastic influencers. We are convinced that the relationship with them and strengthening the brand, in the long run, is much more important than direct results in orders, Rickard says.
André Ihlar, who is an e-commerce manager and ultimately responsible for online sales, always focuses on long-term effects, even in the more transaction-based e-commerce. Lyko simply does not believe in working too data-driven as it only involves focusing on what you are measuring. It is easy to miss what is not measurable. The brand is always at the center of Lyko. When we ask for more employees to highlight, Rickard says that there are so many who should be highlighted and directs the conversation on the company's recruitment philosophy.
Everyone in some type of managerial position has the task of always looking for someone better than themselves in any area. To ensure that we find the right skills, interviews are conducted with several employees to succeed with the recruitments. Making our existing employees grow as people and succeeding well with our external recruitments is the most important key to achieving our future vision of turnover of SEK 10 billion in 2028, Rickard concludes.
During the interview, of course, we also get into the Lyko family. It all started with Grandpa Frans. Today, both father Stefan and sister Erika are still active in the family business and an important part of the company's success. Rickard reveals, however, that mother Rita has just passed away and that he will go to his own mother's funeral the next day.
Even a successful CEO of the Stock Exchange must endure the heaviest hardships of life just like everyone else.
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