Estonian retailer and wholesaler Tradehouse has evolved a lot over the past two decades. Starting 23 years ago as a supplier for professional hair salons, the company has expanded its wholesale business to retailers – serving grocery chains, department stores, pharmacies and other retailers in the small but interconnected Baltic region with products that span categories of food and beverage, health and beauty care and general merchandise.

In addition, Tradehouse operates five stores in Estonia and two in Latvia, each focused on beauty and personal care and catering to a young and trendy market.

Indeed, this mix of wholesale and retail operations across categories means Tradehouse has its finger on the pulse of trends in the region, and at ECRM’s recent Health & Wellness and Personal Care Sessions in Frankfurt, Germany, I caught up with Tradehouse’s Head of Innovation and Partner Relations, Triinu Raig, to discuss some of these trends, as well as the retailer’s latest evolution with the launch of a new sexual wellness category in its stores (see full video interview below).

Gen Z is driving demand for clean beauty products

According to Raig, many of the trends in the region are generated from younger Gen Z consumers, who typically discover new products and fads from social media platforms like TikTok (see my interview with Germany’s TikTok Shop lead). This demographic is driving demand for organic and natural cosmetics and clean beauty products.

As a whole, these shoppers are very engaged and informed, and their pursuit of clean beauty leads to many actively using their phones in-store. "They want to know where the products are coming from, what’s inside the products and what they do for you," she says. "There's a lot of scanning QR codes on products around the stores or using apps to find information about specific products or ingredients."

For Tradehouse, selecting the right brands goes beyond just clean ingredients, however. They also focus on finding supplier partners with shared values, looking for certifications like B Corp to ensure sustainability. They also lean towards premium products and packaging that has a more modern look.

ECRM becomes the launchpad for a new category

Tradehouse has found success at ECRM sessions, having onboarded several brands into their stores after just two sessions. In fact, its most recent finds from last year’s European Health & Wellness Session led to a major new retail initiative.

"This past February we launched a totally new category for us, sexual wellness, with brands that came from the Copenhagen Session," Raig says. “These included Satisfyer, Skins, Rosy Gold and Loveboxxx.”

The move was driven by both a suggestion from their board and strong customer demand. They realized that sexual wellness was increasingly moving into the beauty category. “It’s no longer in some kind of dark dungeon," says Raig. "Shoppers want to buy these products from retailers that they trust. They don't want to have some XXX written on their bank statement." 

Launching the sexual wellness category with a bang

To launch the new category, Tradehuse went big, rolling out a full campaign in Estonia, centered around the phrase: "Armastus Algab Sinust," which means Love Begins with You. The campaign focused on self-love rather than sexual love, including billboards and instagram posts (see below) with teaser ads that featured the slogan. 

The launch was supported with a multi-pronged strategy:

• Events: A launch event at a “cozy” wine bar sponsored by the Skins distributor
• Education: Seminars and content from sexual wellness experts
• Print: Dedicated articles on sexual wellness in their quarterly in-house magazine.

Advice for brands meeting Tradehouse

For brands looking to secure a partnership with Tradehouse, Raig offered clear advice, stressing the unique needs of their small market:

• Exclusivity: Since Estonia and Latvia are not large countries, Tradehouse seeks out exclusivity whenever possible. 
• Innovation: They are looking for new brands and whenever possible – new categories.
• Marketing support: Brands must come prepared with a full suite of ready-to-use digital assets for their ecommerce platforms and a plan for supporting sales at the shelf
• On-Trend: A brand is especially interesting to Tradehouse if it covers a category or segment that is hot and trendy, particularly on social media.

European buyers and distributors looking to discover new product innovations, and brands looking to expand distribution into Europe, can find more information about ECRM’s Sessions here or reach out to ECRM’s VP of International, Liz Lantz.

Full video interview with Tradehouse's Triinu Raig