What Calida and Erlich Textil can learn from each other

It was about a year ago that the then CEO of the Calida Group, Reiner Pichler, announced that he would sell the outdoor division and focus on lingerie. Including further acquisitions. Now the deal for the sale of the Millet Mountain Group has been finalized. And with Erlich Textil, the first up-and-coming label has been bought.

Erlich Textil was not for sale at all, as founders Sarah Grohé and Benjamin Sadler report. They launched the company in 2016 to produce sustainable underwear. In the meantime, there are also cosmetics, home articles, activewear and nightwear under the label, whose name is supposed to be program, written in old German without H.

"We actually had completely different topics on our radar and didn't think about looking for investors," Grohé explains. But then came the request from the Swiss. "We basically listen to everything first. Also, perhaps to get some impetus," says Sadler. And what Calida had to offer convinced the two, he says. "On the one hand, it was a very good human fit. For another, there are now great opportunities for us," explains Grohé, who is responsible for the product. In addition, controlling and finances. Sadler is responsible for marketing and the online store. After the takeover, both together still hold 10% in Vorfreude GmbH, which operates Erlich Textil.
"We want to focus on the strategic fields of digital and sustainability. A number of companies popped up on our radar in that area. Factors like size and potential completed the picture. Erlich Textil was a perfect fit. And finally, we simply inquired last year," says Calida Group CEO Timo Schmidt-Eisenhart, explaining how the group came across the Cologne-based company. With its own platform model for sourcing, logistics and distribution, the group could offer Erlich Textil synergies. The Swiss are also helpful when it comes to sustainability, he said. "Our products are not that far apart. Calida, for example, even has the Cradle to Cradle certificate, which we still lack. We're striving for that, too, but so far we've been too small to afford it," Grohé says.

Erlich Textil is also in the process of establishing a complaint management system for Tier 1 and Tier 2 suppliers, she adds. "We hope to move faster here with Calida's help."
The new big sister could also help in sales. Might there be plans for a broad wholesale launch after all? Grohé: "We are putting distribution to the test and seeing what we can derive from Calida. I'm open to everything."

Erlich should also benefit from the expertise of the Group's own e-commerce subsidiary Reich Online Services. "Online only also has advantages. But it's still too early to make any decisions," explains Schmidt-Eisenhart.
And what can Calida learn from Erlich? "We bring a holistic view of sustainability and also keep an eye on the weakest links in the supply chain," says Grohé. He adds that both partners have a desire to communicate sustainability activities more. "From print to Tiktok," says Schmidt-Eisenhart, who relies on Erlich's social media expertise, among other things. Sadler: "We also do a lot more than we tell. We want to take customers on the journey with us."

Organizationally, nothing is to change: Erlich Textil will continue to operate from Cologne with 21 employees. "Our brands will remain independent. After all, we didn't bring Aubade from Paris," the CEO emphasizes.