We select the brands we believe have attractive and strong potential in the market. We adopt a ‘partnership’ approach that enables us to ‘succeed’ together and evolves into a deeper relationship over time. Our differentiation is the way we think, like brand owners, which makes all the difference and aligns interests. Our approach involves a strategy of selective and measured growth initially, which is usually one of the biggest mistakes that drives brands, especially the largest ones, to fail in the US market. Brands often are overly optimistic from the start and expect success in their home market to translate to immediate or short-term success in the US. They often do not recognize or appreciate the undertones of differences in the US market and lack an understanding of what makes a brand successful in the US.
Our steadfast and proven approach carefully places, builds, and guides growth in the market, leveraging our knowledge of the market and network of key players and senior advisors from the industry with on the ground ‘know-how’ of how things should be done. Over time, outsized growth is possible and usually in conjunction with an emphasis on marketing. Once we develop and launch the brand, we run the in-country operations focusing on excellence in execution. In general, we usually find that the brands that are most successful and that value our partnership most are those that have done their homework, understand both the risks and potential prize of entering the US, and are realistic of potential outcomes.
The US Market
While Europe and China may rival the US in terms of economic size, the US remains the most influential consumer market in the world. The addressable market size combined with its influence on the global stage are the key factors enticing foreign brands to the US. Once a brand gains traction in the US, it usually acts as a catalyst to driving interest and growth in other markets around the world and, when done right, lifts the brand’s presence in existing markets. Hence, the US is a large opportunity for most brands. Moreover, the US retail market is unique as it is dominated by both large nationwide retailers and key boutique influencers. While major retailers have widespread distribution, boutiques often play an integral role in identifying the “up-and-coming” brands for consumers and are vital to seeding a brand’s successful launch. This dynamic is often overlooked by new entrants who may not understand the market nuances. Without the right approach, a brand can get lost in the sea of competition and very often fail, no matter how differentiated the product is or how strong of a market position the brand holds elsewhere.