Bestseller: Steel, Cold and Brands — The Quiet Giant of International Fashion

The Jutes were one of the three most powerful Germanic peoples of the Iron Age, when man discovered iron as a material for making weapons and tools. They are believed to have originated in Jutland, historically one of the three lands of Denmark, along with Skåne and Seland. In Jutland is the town of Ringkøbing, which in the Iron Age had the privilege of being considered a market town, so that, according to medieval European law, it had the right to have a market, which facilitated its economic development. With long winters and temperatures varying from zero to twenty degrees throughout the year, Ringkøbing is the town where the story of one of the giants of international fashion began: Bestseller, which in 2025 celebrates its 50th anniversary as one of the most discreet giants of international fashion.

Born in 1949 in the Risskov district of Aarhus, Denmark's second largest city, Troels Holch Povlsen was the son of a regional head of social services. With a family background that had little to do with textiles, Troels Holch Povlsen started a small clothing store in Ringkøbing in 1975 with his wife, Merete Bech Povlsen.

The small store was initially dedicated to seeing clothes for Troels Holch Povlsen's uncle, but by the end of its first year in operation the business had expanded and the couple began importing their own products and selling them both through the store and to distributors.

Bestseller began life as a small women's clothing store in Ringkøbing, Denmark, in 1975.

While growing their flourishing business, the couple started a family. In 1972, Ander Holch Povlsen was born, followed by Niels Holch Povlsen. At the age of only 28, the elder brother inherited the company and took over the management of the company in 2000.

In 1980, the Holch Povlsen brothers bought a store in Aarhus called Bestseller, a name they liked so much that it became the company name. Initially, the company focused on women's fashion, launching the Exit brand in 1986 and Vero Moda in 1987.

After starting its international expansion and making the leap in 1988 to Norway with the company's first store outside Denmark, diversification began in 1995. Gradually, the company expanded into children's and men's wear, positioning itself in different segments. In 1995, Bestseller launched Jack&Jones, its first men's brand, and in 1996 Name it, its first children's brand.

In the 1990s, Bestseller accelerated its international expansion, entering China in 1996, where it now has more than 7,000 stores in around 500 cities throughout the country. Bestseller China is, however, an independent company, owned 50% by Anders Holch Povlsen and 50% by entrepreneurs Dan Friis and Allan Warburg, who also manage the day-to-day business.

Although there is cooperation between Bestseller in Europe and Bestseller in China, most of the designs for the Chinese market are made in China, adapted to the tastes and requirements of the country. Ninety percent of the products sold in China are manufactured in China.

Structure

Segment diversification has been one of the keys to the development of Bestseller, which has now become a giant in the international fashion industry. So has been its activity in the multi-brand channel, which has allowed it to gain geographical capillarity and which it has cultivated since its beginnings, as well as its international presence.

Today, Bestseller has a portfolio of more than twenty brands for different ages, genders and occasions. Jack&Jones, Name it, Vero Moda, Only, Object, Vila, Pieces, Selected or Mamalicious are just some of the brands in Bestseller's portfolio, whose name as a group is not known by the final public.

The company distributes its brands in a network of 2,800 stores (2,200 own stores and the rest franchises) in 44 countries, although its presence extends to 75 markets in Europe, Asia, North America, Latin America, Oceania and the Middle East thanks to its presence in 16,000 wholesale points of sale, both multi-brand and department stores.

Fifty years after its founding, Bestseller remains headquartered in Denmark, but has expanded its international presence through the development of its distribution, sourcing and logistics.

In addition to two offices in Denmark (in Brande and Aarhus), the company has structures in Germany, the Netherlands, the United Kingdom, Belgium, Austria, France, Sweden, Norway, Finland, Ireland, Portugal, Poland, Greece, Italy and Spain, in Europe. In the United States, Bestseller has offices in New York, in addition to those in Australia, Turkey, Canada, Uruguay, Bangladesh, Cambodia, India, Pakistan, Mexico, China, Chile and Hong Kong.

Bestseller has a portfolio of more than twenty brands, which are supported by a common structure

Bestseller defines itself as a "multi-brand matrix organization" made up of more than twenty brands, supported by central services such as sourcing, sustainability, logistics, human resources, technology and development, finance and ecommerce, although all of them have their own structure.

The Danish group ended the last financial year (ended July 2024) with a turnover of SEK 35.6 billion (€4,772 million), which was 4% less than in the financial year 2022. The company's profitability rose by 8% in the period to SEK 5.3 billion ($710 million). The company employs 22,000 people.

These figures refer only to the business managed from Europe, as China is managed independently. Market sources indicate that Bestseller's size would double if the China business were included.

Anders Holch Povlsen inherited the company from his parents when he was only 28 years old.

Management and next steps

The company is still 100 percent controlled by the Povlsen family and has never opened its capital. Bestseller's management body is the board of directors, chaired by Merete Bech Povsen and consisting of Anders Holch Povlsen, Troels Holch Povlsen, Finn Poulsen and Lise Kaae (a director of other companies such as Klarna). Day-to-day management, on the other hand, is led by an executive committee.

Troels Holch Povlsen and Anders Holch Povlsen have, in turn, separate family investment vehicles. The father (who after founding Bestseller entered the furniture sector with the Nine and Hays brands) operates through Nine United, with interests in companies in five areas: design, retail brading, supply and trading, and real estate assets.

The son (the richest man in Denmark), on the other hand, operates through Heartland, a holding company representing the interests of the Holch Povlsen family and Bestseller. Through Heartland, the family has equity stakes in companies such as Zalando, Asos, About You, Klarna, WhiteAway, Astarri, Normal and Nemlig.

The entry into the capital of ecommerce companies has been a constant in Bestseller's strategy over the last few years. In fact, the company has stakes in three of Europe's leading marketplaces (Zalando and About You, in the process of merging, and Asos).

In fact, thanks to its stake in Asos, Bestseller has closed one of the most important acquisitions in recent years, not so much because of the amount of the transaction but because of the symbolism of the brand purchased. In September, Bestseller closed the purchase of a 75% stake in Topshop for 135 million pounds. Topshop, the British fashion icon, adds even more to Bestseller's brand portfolio.