PADHAT: the pros and cons of being the first to market

Founded in 2020, PADHAT is a Latvian start-up specialising in children’s hat-making. Even though from the outside they look like any other headwear, these hats feature BAT technology which greatly reduces the risk of traumatic brain injury in case of a fall. When heated up to the human body temperature, this unique material conforms to the shape of the head providing a comfortable feel, and effectively absorbing the impact of a fall. BAT technology was created in Latvia, and it has previously been used in professional sports gear, but has hitherto never been available on the market for children’s products. Today, PADHAT headwear is available in stores carrying products for children throughout Europe, including Germany, the Czech Republic, Luxembourg, Romania, the Netherlands, and the Baltic States, and they are even sold in Saudi Arabia, Australia and the United States.

Kristīne Līpiņa, co-owner of the company, stresses that participation in the business incubator established by the Investment and Development Agency of Latvia in Kuldīga provided the company with meaningful support in the process of getting from a prototype to making their first steps in exports. “When you are developing an innovative product and starting out in business, financial support is very important, but practical assistance even more so. The staff of the incubator possess unique experience, they know with the process from A to Z and can provide advice on the next steps to take, that you may not have even thought of yourself. This support significantly speeds up bringing our product to market, and the advice provided is invaluable to budding businesses,” she explains.

While PADHAT basically stands without competition yet, this in itself presents both advantages and challenges. “An innovative product automatically means that you are a pioneer. That especially applies in our case, because visually our product looks like an ordinary children’s hat but costs a lot more. Our customer base in Europe is extensive, but the key to growth is the ability to explain the unique features of our product to our customers in a clear and understandable way. Customer service is not as personal everywhere as it is here, and children’s goods’ stores often do not take part in this explanatory work,” Ms Līpiņa outlines the main challenges facing her company.

PADHAT is mainly focused on exports with 90% of its products being sold abroad although plenty of customers in Latvia have also come to appreciate them. Taking part in international exhibitions plays a crucial role in successful expansion into foreign markets, but by selling their products on the US platform Amazon the company has seen a significant boost in growth over recent years. Today, PADHAT is committed to continue expanding and will soon bring new products to market.

Since 2024, the Business Incubation Aid Program has been implemented by LIAA representative offices in Latvia and any company up to the age of 5 operating in the supported sectors can apply for the programme.

This article has been produced with financial support from the European Regional Development Fund, Small and Medium Enterprises Programme, Incubator Subproject.