Design company KREAFUNK defies the corona crisis
April 20, 2022
Despite corona, the design company KREAFUNK is now stronger than ever with one million products sold and strong partnerships lined up with, e.g. Sound Hub Denmark
The owners of KREAFUNK, Ruben Fog-Fredsgaard and Kenneth Melchoff Bahsen, look back on ten years of growth and innovation with the lifestyle brand KREAFUNK. It has not always been a walk in the park.
When corona hit the world, the turnover dropped by 80 per cent the first month. Despite this, the company came out after corona more robust and with one million sold products since 2011.
“The initiatives we took during corona have been critical to getting KREAFUNK to where it is today. We accepted government aid and sent a large group of our staff home; and we’ve collaborated with investor and business angel Claus Hommelhoff to strengthen our company and ensure future growth. We lowered our zero-point turnover by 9 million Danish kroner by changing location and cutting away all non-vital costs. It was a process we started in 2019.”
In addition, we continued product development of new commercial products with a higher margin to get to the best possible starting point when the international fairs reopened,
Kenneth Melchoff Bahnsen explains.
It turned out to be a prudent strategy for KREAFUNK. When the Paris fair Maison & Objet reopened in the fall of 2021 with fewer exhibitors than normal, KREAFUNK was ready with a more extensive product portfolio of new products than ever before. The fair gave a better result than ever and opened up to new markets, including Japan, where KREAFUNK sees enormous potential.
Extraordinary delays in deliveries also challenged KREAFUNK in Q4 2021, where seven containers did not arrive for the X-mas season via traditional freight options. The founders had to spend five million extra to get their sound products to Denmark.
We knew it would affect our annual result, but also realised we had to make this decision, if we were to survive.
Kenneth Melchoff Bahsen continues. Since the beginning, KREAFUNKs sound products have been in most of the major Danish department stores such as Magasin, Salling and Bahne and with many different retailers across 30-35 other markets.
“After the first ten years, we are delighted with our position in the Danish market and worldwide. But dreams run much higher than the 30-35 different markets we are in right now. Through a focused product and brand development and CSR approach, we believe we will be able to extend our brand awareness and position in these markets in the coming years and add more markets as well,” Ruben Fog-Fredsgaard concludes.
Over the years, KREAFUNK has launched more exciting products; and established partnerships incl. essential collaborations with retailers and distributors that have strengthened its position.
Also, the collaboration with Sound Hub Denmark – a global powerhouse for sound, technology and acoustics – is part of this approach.
Sound Hub facilitate matchmaking and builds bridges between companies. Such introductions and support have helped KREAFUNK tune into which current and future products they will take to the next level as part of their expansion plans.
KREAFUNK is a Danish lifestyle brand designing sound products such as Bluetooth speakers, headphones, and designed power banks that match the latest trends in fashion and interior design and are updated with the latest technology inside.