On July 1, Melbourne-based direct-to-consumer (DTC) luggage brand July launched in the US, its first market outside of Australia and New Zealand. Within a month, it had sold over 1,000 suitcases, including nearly every suitcase in its Trunk collection, a set of high-end zipperless suitcases priced between A$395-495. “Stock that would have taken us six months to sell out in Australia, we’ve sold out in 20 or 30 days. That’s the power of the US market,” July co-founder and chief
ef strategy officer Athan Didaskalou told Inside Retail.
So, why was the launch such a success? According to Didaskalou, a key factor is the brand’s investment in product innovation, which sets it apart from other DTC luggage brands that mostly focus on releasing new colours and brand collaborations.
Over the last year, July has launched the 1.8-kilogram Carry On Light, the lightest double-wheeled suitcase in the world, the Carry On Pro, a suitcase that comes with a detachable laptop sleeve that securely snaps on and off, and the Trunk collection.
It also offers ‘inclusive’ personalisation options that enable customers to add their name or monogram to products in Spanish and Chinese, not just English, in a variety of fonts and colours.
And it’s from Australia, which presents a natural point of difference in the US market. July played into its Aussie heritage with G’day USA messaging and suitcases customised with Chris H (Chris Hemsworth) and Rebel W (Rebel Wilson) for the launch.
But there’s one other factor that Didaskalou believes made a big difference.
“We really wanted it,” he said.
In fact, the US launch had to be a success because after a year-and-a-half of lockdown in Australia, with no international travel and very little domestic travel, July was quickly running out of options.
“It was a survival tactic more than anything else,” Didaskalou said.
‘Play to our strengths’
July got off to a strong start after launching online in Australia in December 2018. Didaskalou and co-founder Richard Li opened their first store in Melbourne Emporium the following August, and picked up $10.5 million in funding two months later. The round was led by bricks-and-mortar luggage chain Strandbags, which invested $8 million in the startup.
But Covid-19 threw a spanner in the works.
“Suitcase purchases are very much tied to travel, and even domestic travel has taken a confidence hit,” Didaskalou said.
“We did well to survive a year. I don’t know if we’ve got two years of waiting for flights to come back.”
At a leadership meeting earlier this year, the team decided to launch the brand in the UK. They knew expanding to a new market was the only way they could keep the business afloat, and they knew a lightweight suitcase like their Carry On Light would do extremely well in a region with a lot of budget airlines like Europe.
But just a few days after the meeting, the UK tightened its Covid restrictions. Enter the US.
“It’s where we’ve always wanted to go, but we thought we didn’t have enough resources to go up against competitors with a lot more money in their war chest,” Didaskalou said.
“We decided to go anyway and just made sure that we played to our strengths.”
That decision has clearly paid off. So far this month, 80 per cent of July’s sales have come from the US. And that’s with shipping and customer service all still occurring out of the Melbourne office. Didaskalou credits the brand’s PR and media agencies as being its eyes and ears on the ground.
“Good partners make a difference,” he said.
July is now in the process of sending stock to the US so it can offer faster and cheaper shipping to customers there, and as soon as Australia’s borders open, Didaskalou plans to set up a US office to support further growth.
Next year, he and Li hope to be able to raise funds from venture capital firms to open a retail store in Los Angeles. But he says the brand will always call Australia home.
“I think it’s important for us to maintain our Australian heritage and for Melbourne – Collingwood in particular – to be the heart of business.”