Dutch fashion brand, Scotch & Soda, speeds up direct-to-consumer growth by launching 22 new retail stores in 2021.
Vibin' with Fresh Expansion
Scotch & Soda, the fashionable lifestyle brand, is coveting 22 new physical stomping grounds worldwide before the year's end. This endeavor encompasses 15 stores and 7 shop-in-shops, as disclosed in a recent press release. Since this year's commencement, the brand has already opened 34 stores and 27 shop-in-shops, heralding a total retail and franchise network of 249 stores and 280 shop-in-shops by year's end.
Two of these new retail havens will surface stateside in October, since the brand currently dominates the U.S. market with 39 locations, according to their website. The brand's ambition is to establish a stronghold in key international cities like Paris, Madrid, Mumbai, Stuttgart, and Perth.
Gathering Insights:Originally a wholesale brand, the Amsterdam-based Scotch & Soda is striking out with a broad-based physical expansion spanning across Europe, Asia-Pacific, North America, and the Middle East. Scotch & Soda underwent a brand makeover in March this year, including a new logo that will feature in its new locations.
As the holiday season nears, Scotch & Soda aspires to expand its lifestyle offerings, such as three new bag styles and targeted growth in the fragrance sector via home, travel sizes, and gift sets. The brand is favoring its direct-to-consumer (DTC) channels for the new bag launches, with the styles available exclusively online and in franchise and company-owned stores for the initial season.
Additionally, Scotch & Soda is debuting its first digital store on Tmall in China, following its China debut in July. The brand aims to open stores in key Chinese cities shortly, viewing the nation as vital for expansion.
CEO Frederick Lukoff shared his enthusiasm for Scotch & Soda's growth strategy, stating, "We are damn proud to announce that Scotch & Soda is accelerating its growth strategy. It's a bloody exciting time for our company despite the ongoing retail industry challenges from COVID-19. We're pressing ahead with the expansion of our retail network on a global scale, strengthening our presence in the markets where we're already thriving and breaking into key markets, such as China, that we see brimming with potential to captivate new customers and expose them to our brand."
Scotch & Soda was swiped up by private equity firm Sun Capital Partners in 2011, previously more of a wholesale brand. At the time, the company had around 30 company-owned and franchised retail stores compared to 7,000 partnership accounts. Scotch & Soda continues to boast roughly 7,000 wholesale doors but now flaunts 235 freestanding stores globally.
By amplifying its personal fleet of stores, Scotch & Soda adopts a similar tactic to various wholesale brands seeking to generate higher margins through DTC sales. Retail heavyweights like Nike and Adidas are shifting sales percentages toward the model while trimming down wholesale partners to fuel future progress.
- Despite the ongoing challenges posed by the pandemic, Scotch & Soda, a fashionable lifestyle brand, is ambitious about expanding its retail network on a global scale.
- The brand is coveting 22 new physical locations worldwide, aiming to strengthen its presence in markets it already dominates and break into key markets like China.
- Scotch & Soda's growth strategy includes the expansion of its lifestyle offerings, such as new bag styles and growth in the fragrance sector.
- Favoring direct-to-consumer (DTC) channels, the new bag launches will be available exclusively online and in franchise and company-owned stores for the initial season.
- The brand is also debuting its first digital store on Tmall in China, viewing the nation as vital for expansion.
- By amplifying its personal fleet of stores, Scotch & Soda follows the tactic of various wholesale brands seeking to generate higher margins through DTC sales, similar to retail heavyweights like Nike and Adidas.
