Localization Helps True Religion Grow Its International Presence
True Religion is growing its international business one step at a time. Although the brand aims to venture beyond its home market in the U.S., it would rather take the small and steady route.
Going slowly allows True Religion to focus on the uniqueness of each market. “Localization is something I believe in. Sometimes, American brands think their way fits every single market,” said Matt Clayton, True Religion’s vice president of international.
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That American way of thinking wouldn’t work overseas where 80 percent of the market is focused on full-price sales versus the U.S., where sales are driven by an off-price mind-set, he said. Moreover, each country has its own unique customer demographic and fashion preferences, not to mention the need for specific fits across Asia.
According to Clayton, India has a slightly more mature customer, where 60 percent of sales are led by denim purchases. In contrast, the U.K. is considered a young market and that means a pair of jeans will more likely be combined with a T-shirt and sneakers. Sales in the U.K. are one-third denim, one-third active and one-third Ts. “In contrast, the German market is very much womenswear focused with a more mature customer,” he said.
The brand has a strong retail footprint in the U.K., South Korea, India, Germany, Indonesia, Mexico and the Middle East. Some are monobrand stores operated by partners, and others are multibranded shops. In the U.K., the brand is sold in Harvey Nichols and Selfridges as wholesale accounts. True Religion also partnered with Urban Outfitters to sell the brand both in the specialty chain’s locations and at the retailer’s online sites in the U.S. and abroad.
“South Korea has a blend of shops and online, where TV shopping is a crazy, huge business. We respect the nuances of each market,” Clayton said. “The Middle East is a blend of store and the wholesale customer. We will open two monobrand stores in Dubai this year. Once Dubai comes onboard, Kuwait and Abu Dhabi are possibilities. There is the potential for a rollout in the Middle East, for sure.” Marc Alec operates as the sole distributor for the Middle East.
Sometime between the end of this year and early in 2023, Clayton expects to add Japan, Australia, Thailand and Italy to the brand’s international roster. Scandinavia is also a possibility, and an announcement that True Religion will enter the China market could come in early fall. But a key element with the stores is that True Religion is not interested in opening its own company-operated locations. That means Clayton’s job is largely centered on finding the right operating partner.