July, an Australian luggage brand, shares its journey of navigating the challenging travel market, surviving the pandemic by diversifying products, and strategically expanding into the U.S. This episode offers valuable lessons on brand differentiation, international market entry, and resilience for DTC brands in competitive sectors.
Key takeaways
To differentiate in a crowded market, focus on unique design features and personalized offerings, like July's lighter bags, curvier edges, and monogramming, to compete with established luxury brands.
When facing unforeseen market disruptions, diversify your product line to maintain revenue streams; July launched non-travel items like drink bottles and backpacks during the pandemic.
Prioritize international expansion into markets with fewer restrictions and high consumer appetite, such as July's strategic entry into the U.S. during Australia's prolonged lockdowns.
Understand that perceived luxury doesn't always mean highest price; July aimed to offer a better product than Rimowa at a more accessible price point.
Be prepared for significant challenges in the early years of a business; July almost shut down in 2020, highlighting the need for strong financial runway and adaptable strategies.
The last few years have been a rollercoaster for travel companies. But Australian luggage brand July says business is now beginning to boom.
"Things have changed, lockdowns have come to an end now -- 2021 was a progressive lift on that. And this year, in 2022, things are flying again," said co-founder and chief strategy officer Athan Didaskalou.
Didaskalou joined this week's Modern Retail Podcast and talked about the brand's growth and expansion plans.
July was first devised in 2018 with the intention of being a luxury luggage company that could take on both Samsonite and Rimowa. "[Rimowa's] acquisition from LVMH reinvigorated design and travel," Didaskalou said. "I'd be lying to say I wasn't a fan."
Still, he believed that his company could take on the bigger name players in the industry. "We thought we could do it better," Didaskalou said, by making lighter bags with unique design features like curvier edges and personalized monograms.
The first year of business, things went well. But then every luggage brand's worst fear materialized: the world shut down. "2019 was the official retail launch, and 2020 we were almost shutting the business down. It was really that drastic because we didn't have the runway of a few years under the belt in order to be able to survive a zero revenue year."
One of the ways July survived the pandemic was by launching new non-travel products like drink bottles and backpacks. The other part was by going into new territories that eased travel restrictions earlier than Australia -- namely, the U.S. For Didaskalou, launching in stateside was an entrepreneurial dream. "I don't think there's any Australian business that doesn't fantasize from day one about launching in the U.S.," he said. "The people are there, the scale is there, the appetite is there for newness."
Now, according to Didaskalou, business is humming and more products and markets are in the pipeline. But even though the company has its Australian roots, the United States remains
To differentiate in a crowded market, focus on unique design features and personalized offerings, like July's lighter bags, curvier edges, and monogramming, to compete with established luxury brands.
What does this episode say about brand & content?
When facing unforeseen market disruptions, diversify your product line to maintain revenue streams; July launched non-travel items like drink bottles and backpacks during the pandemic.
What does this episode say about supply chain & operations?
Prioritize international expansion into markets with fewer restrictions and high consumer appetite, such as July's strategic entry into the U.S. during Australia's prolonged lockdowns.
What does this episode say about founder & leadership?
Understand that perceived luxury doesn't always mean highest price; July aimed to offer a better product than Rimowa at a more accessible price point.
What does this episode say about dtc strategy?
Be prepared for significant challenges in the early years of a business; July almost shut down in 2020, highlighting the need for strong financial runway and adaptable strategies.
