![]() companies have to provide “24/7 multi-lingual customer service” as they expand across the world, said Hill. To effectively grow a global consumer brand, U.S. Hill, investor and advisor to e-commerce tech startups like StrategyBox and Preflect, said there are also cross-border retailing challenges. She noted that selling directly to international customers is better for margins than taking hits on department stores’ constant markdowns.ĭarren C. “But overseas business also protects them from relying on the U.S.’s wholesale cycle,” Santaniello said. For example, fulfilling orders for Australian and South American retailers requires planning for alternate seasons. wholesale scene where there is only so much you can grow via wholesale,” Santaniello explained.Īt the same time, establishing a global brand is a lengthy process - and entails providing localized trends, relevant cultural marketing and product, said Santaniello. “As a small brand, you reach a point within the U.S. Heading abroad is a costly but effective way to grow a customer base, said Gabriella Santaniello, founder of consulting firm A Line Partners. In 2020, the company recorded a 123% spike in year-over-year sales. These investments helped Rails grow its year-over-year online DTC sales, Abrams explained, with 2021’s year-to-date revenue currently growing 200% compared to the year before. This year, Rails also opened a warehouse in the Netherlands to ship out European orders quicker. Some of the updates include foreign currency checkout and free global shipping. “This has helped us more quickly understand market preferences and implement brand-building strategies there,” Abrams said.ĭuring the pandemic, the company began improving its website’s UX “to make the process more seamless for international shoppers,” said Abrams. That included setting up a network of sales partners, as well as hiring local marketing and PR agencies to run campaigns and events. Establishing an international retail operationĪbrams said that from early on in its foreign expansion, the company decided to invest in local operations in its international markets. In the past year, the company also began to open its own stores in major American cities, including a flagship in New York’s Soho neighborhood and another in San Francisco. “All of the foundational groundwork was there, and so we wanted to double down on it through a DTC approach,” said Abrams.įor example, Rails decided to open two stores in London after hosting two successful pop-ups at local department stores Harvey Nichols and Harrods over the past couple of years. Now, nearly 40% of Rails’ website traffic comes from international visitors. In the past two years, the brand has been investing in its own website, customer order fulfillment and marketing spend, and relying less on its foreign retail store-based sales. More recently, Rails has taken on what Abrams calls a “reverse DTC” strategy to scale internationally. “This helped establish our California-meets-European styles among global consumers,” he said. Some of the large retailers include department stores like the U.K.’s Selfridges, South Korea’s Shinsegae and Turkey-based Vakko. Over the last decade, Abrams said the business grew by selling its clothing lines at nearly 1,200 shops and marketplaces across 40 countries. Founder Jeff Abrams said this position helped it get into high-end department stores and fashion boutiques during the first few years. Women’s denim skirts, for example, start at $138 on Rail’s website. Rails’ mid-market price points place it above fast fashion, but make it more affordable than luxury fashion brands. Its lines feature tops, denim and outerwear. The Los Angeles-based clothing company specializes in casual everyday pieces for women and men. Now, it’s looking to open more international stores to bring those customers to its direct-to-consumer business. This taught the brand about where its most loyal international customers lived. ![]() Over the past 10 years, Rails has been testing the international waters via wholesale, including department stores and selling on international e-commerce shops. Next, the company is preparing to open two Rails stores in London, with the first location opening this coming winter. Rails, which was founded in 2008, opened its first international store in Paris in July. After relying on wholesale for years, apparel brand Rails is starting to grow globally by opening its own stores abroad.
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