This article explores the evolving landscape for British brands entering the U.S. market, highlighting strategic guidance from Justin Lilja of Runway Brands Group. He emphasises the importance of understanding local consumer preferences and forming partnerships with larger retailers to succeed amidst challenges like tariffs and market dynamics.
The landscape for British brands vying for success in the U.S. market is evolving, characterised by both challenges and untapped opportunities. The recent commentary by Justin Lilja, founder of Runway Brands Group, emphasises a strategic approach that prioritises careful market entry for smaller, founder-led labels. Lilja insists that the path to success lies not in rapid expansion but in a meticulous understanding of regional markets and customer preferences.
Runway Brands Group, based in Texas, positions itself as an essential partner for British brands, providing strategic and operational support tailored to U.S. entry. Lilja notes that historical attempts by British companies to penetrate the U.S. market have often ended in failure due to a lack of targeted marketing and insufficient research into local consumer behaviour.
“Brands come to the U.S. to scale. The country is so large, you could match your U.K. revenue by focusing on New York and California alone,” Lilja stated, highlighting the vast market potential. He has previously helped British accessories brand Radley achieve significant success in the U.S., pointing to the size of U.S. department stores such as Nordstrom and Dillard’s, which stand in stark comparison to the declining number of major retail outlets in the U.K.
The market dynamics favour gradual growth, and Lilja advises brands to narrow their focus. His strategy consists of steering clients towards established department stores to gain initial traction. “The two biggest challenges that our brands face are awareness and cash. So the best place in the world to go is a big retailer because they place the biggest orders and have the most customers,” he explained.
Lilja’s practical advice extends to understanding the nuances of U.S. consumer preferences, such as using American terminology on e-commerce platforms and adjusting product offerings to suit local tastes. For instance, he underscores that boutique sales do not typically sustain business viability, emphasising that many of his clients are better off starting with contracts from larger retailers.
Speaking to Rachel Carvell-Spedding, founder of the luxury knitwear label Navygrey, she affirmed Lilja’s expertise in marketing and strategic insights. According to her, he possesses a profound understanding of the product and its journey from the U.K. to U.S. markets, which is instrumental in navigating this challenging landscape.
With looming concerns regarding U.S. import tariffs on European goods, Lilja is also preparing brands for potential impacts. Currently, direct-to-consumer goods from the U.K. valued below $800 are exempt from tariffs; however, increased duties may soon affect those originating from China. In response, Lilja is encouraging brands to optimise their pricing structures, maintain flexibility in their supply chains, and to rethink sourcing strategies to mitigate the risk of elevated costs.
“Longer term, I would take this opportunity to also increase value. Don’t just raise price because costs have gone up, but give the customer more,” he advised, indicating a balanced approach to pricing amidst fluctuating market conditions.
In conclusion, British brands looking to thrive in the U.S. must adopt a comprehensive understanding of regional market dynamics, focus on strategic partnerships with larger retailers, and remain agile in adapting to the challenges posed by tariffs and shifting consumer preferences. Justin Lilja’s Runway Brands Group stands as a pivotal resource for navigating this complex landscape, offering a structured path for sustainable growth.
Source: Noah Wire Services
