Nanushka at 20: Balancing local roots with global expansion

In Hungary, Nanushka has distinguished itself by an ability to transcend global borders. It's a feat achieved through its portrayal of a holistic lifestyle that appeals to metropolitan women in cities like London and New York, who resonate with the brand’s sleek yet functional collections. As Nanushka enters its 20th anniversary year, it aims to solidify this presence in key markets by expanding retail experiences and collections that capture its essence.

This identity was initially envisioned by designer Sandra Sándor, who founded Nanushka and was later supported by her partner, Peter Baldaszti, the brand’s chief executive officer and founder of its parent company, Vanguards Group. The brand has since found itself a firm place on the international market, and has garnered particular interest from the US, where it typically showcases spring/summer collections during New York Fashion Week. The city is also where Nanushka opened its first international store back in 2019, catering to what would become its second largest customer base after its home country.

From Budapest to New York: Nanushka’s global growth and evolution

It's a success made in spite of significant internal and external challenges faced by brands in the Hungarian and Central European market, a region that largely lacks industry knowledge and a well-established support system for the fashion industry. Despite these challenges, and the missed opportunities for regional talent to develop global ambition, some brands have achieved success. Baldaszti believes that a global mindset can make a significant difference for brands, and that local designers need to be educated on the possibilities of an international approach. This mirrors the approach of Sándor, who had global ambitions from the outset, and highlights the ample opportunities for manufacturing and production in the region.

Baldaszti's belief in supporting the local market extends into his role on the advisory board of the Budapest Central European Fashion Week (BCEFW), an event organised by the Hungarian Fashion and Design Agency (HFDA). “The job they do at HFDA and BCEFW is really crucial for the creative industry in the region. There is a lot of potential in the talent of Central and Eastern Europe, and we have seen in the last decade that it is possible to build brands outside of the fashion capitals,” said Baldaszti, who offers guidance and support to the agency and its brands.

Consumers in Hungary, once more conservative than their US counterparts, are now developing a more global and trend-focused fashion sense, which has increased the demand for fashion in Hungary. Baldaszti believes his role is to assist in advancing the industry. He stated that Nanushka has gained significant experience over the years, especially in scaling companies, and he wanted to share that knowledge to help other brands from the region succeed. He added: “In this business of passion, you need to balance commercial aspects with creative talent in the right way, so that’s something we are trying to help with.”

“In this business of passion, you need to balance commercial aspects with creative talent in the right way…”

It’s also why Sándor has chosen to continue showing at BCEFW over the years, typically bringing her pre-collections for each season to the Hungarian capital, while in New York and, sometimes, Paris she stages core lines–though for the most recent edition of NYFW, Nanushka opted to skip the runway to instead host a cafe pop-up in gourmet grocery store, Happier Grocery. “It’s our contribution to our local community and our country. We aren’t taking part in BCEFW to gain international exposure, because it can be hard to get media attention here, but it’s important for us to play a role and to also hopefully contribute to all the other brands in a positive way,” Sándor said.

In Budapest this season, Nanushka continued to unfold its next chapter, previously ushered in during its New York show in September. This was later followed by the unveiling of a brand update, which Baldaszti said reflected an “intention to have an identity that really reflects the maturity of the brand”. He explained: “Brands are a bit like humans, they go through certain stages of their lives, formative periods, and we felt like the brand deserved this more considered approach to branding.”

The rejuvenated logo, for example, was inspired by the brand’s signature Totem motifs drawn from traditional Hungarian Kopjafa, a ceremonial pole carved as a means to celebrate someone’s life. “We are peeling back the layers of an onion to get closer to the essence of the brand as it grows,” Sándor said. “All the experiences, all the stages of development of the brand have now been distilled or consolidated into a final shape and form. It’s a never-ending process.”

“We are peeling back the layers of an onion to get closer to the essence of the brand as it grows…”

For its rejuvenated logo, for example, the team took inspiration from the brand’s signature Totem motifs which reference traditional Hungarian Kopjafa, a ceremonial pole carved to honour someone's life. Sándor elaborated: "As the brand expands, we're delving deeper into its core. The brand's experiences and developmental stages have been condensed into a final shape. It's an ongoing process."

From fashion to function: Nanushka’s strategic shift into bags and shoes

Indeed, Nanushka continues to evolve. And this year, Sándor and Baldaszti are preparing for more changes, as was seen in the pre-collection. Alongside subtle details showcasing the brand's recent identity update, such as metallic pocket clips, the line also featured an expansion of Nanushka's bag offering. Previously, the brand had only explored this area briefly with its signature origami tote bag, which remains a strong contributor to the business.

The two new bag silhouettes were an opportunity for Sándor to expand on the brand's identity while retaining the classic practicality Nanushka is known for. The styles include a large quilted tote in white and black and a structured satchel design with a twisted handle in dark leather. “There is this refined bohemian element to it, but also a minimalistic, geometric element,” Sándor said of the latter, which will debut in Nanushka globally on March 6.

Nanushka’s accessory offering will continue expanding into the second half of the year, when the brand’s first fully realised footwear line is set to release, Sándor and Baldaszti revealed. Sándor has sporadically explored shoes in the past as an extension of the ready-to-wear line, however, now, footwear will be launched more strategically, bringing to life a category that, like bags, Sándor, from a design perspective, has long been interested in.

From a business perspective, Baldaszti sees potential in the accessories category, which has generally maintained financial stability among the industry compared to clothing. “Bags require a different way of thinking,” he noted. “For this launch, we see them as a standalone family in their own universe–reflecting what the brand stands for, while at the same time serving the customer in a recognisable way. It has taken a while for Nanushka to consolidate these pieces and explore how to translate Sandra’s vision into a bag. We have been working on this for two years.”

“For this launch, we see [bags] as a standalone family in their own universe…”

With this, 2025 is panning out to be a busy year for Nanushka. Yet, there is no slowing down. In the latter half of the year, the company is also looking to update its Budapest store, incorporating new local features that underline a commitment to the physical retail experience. To both Sándor and Baldaszti, there is an importance in representing a lifestyle brand like its own in a physical space. Its current Budapest location, for example, is kitted out with comfortable seated areas and a café, where everything down to the coffee cups are reflective of the lifestyle Nanushka is trying to portray.

“Retail is not only about the buying experience. For us, it was always important to have a space that felt like a second-home to our customers, so they can experience our brand holistically,” Sándor said. When the Budapest flagship store opened in 2018, it was at a time when café concepts were fairly new to retail. However, a few years on, Baldaszti is now contemplating what is next. He stated: “You have to really start thinking about what role your retail space plays in the life of customers. I think physical retail will have an important period and it will be a very critical avenue for growth, but only for brands that are outstanding in this area. It’s a tough competition.”

Nanushka's 2025 vision: Rebranding, expansion, and crafting a lifestyle

This mindset was already demonstrated in the relocation of Nanushka's New York store to Mercer Street in late 2024. The brand sought a location with complementary surrounding brands, while further mirroring an approach to the US market, where consumer needs vary by state, creating what Baldaszti described as an "exciting merchandising challenge”.

Growth hasn’t come without challenges, however. While an initial US wholesale partnership with Tomorrow Ltd was reported last year, operational complexities on both sides and the general market climate led to the project being put on hold. Baldaszti added: “We are still working with them very closely with goods and services in the US, and we have a beautiful partnership, but we didn’t go fully in, as the market was in a very particular place.”

Looking ahead, Baldaszti is anticipating a stronger 2025, noting a "cautiously optimistic" mood among his industry network. The duo also exhibited such a frame of mind, expressing that this year, the priority was to “keep everything profitable”. “In the current situation, the only sustainable business is a one that is financially sustainable, so profitability and being conscious about how the business moves is very critical,” Baldaszti noted. With this in mind, Nanushka envisions a "beautiful reshuffle" in its 20th year, including potential retail expansion with a new store in New York and other US cities. Store plans, design concepts, and formats are being finalised, the team said, to enable efficient execution.