July co-founder Athan Didaskalou on how to nail your international business expansion
July co-founder Athan Didaskalou explains what this year’s Smart50 winner has learned since its US launch in 2021.
Breaking into the US is a dream for many Australian startups — it’s a huge market with big potential.
For us at July, it was an ambitious goal we decided to set our sights on as part of our growth plans. While we took a hit during the pandemic — suitcases weren’t really top of mind while people were locked down and state borders were closed — we’ve managed to recover, with 1000% increase in sales over the last year.
Bringing our luggage brand to the US felt like a natural progression for continuing to scale and reach new customers. But there was plenty we didn’t know when launched.
Here’s what I’ve learned since our US launch in 2021.
Be prepared to spend
Arriving in the US market is very much a case of being a small fish in a big pond. So to cut through the noise and stand out, you need to be prepared to spend accordingly. The US is 13 times larger than the Australian market, and it truly is pay-to-play; forget organic social media posts, you’ll need to pay for a presence. For example, TikTok’s team recommend a minimum spend of US$10,000 ($15,000) per month to even start on the channel.
Set aside a generous marketing budget, employ local marketing talent, and use data and A/B testing to truly understand what’s resonating with your new US audience.
Shoppers are sophisticated
E-commerce customers in the US are sophisticated and mature in their approach to online shopping, so our entire business had to step up to compete and win customers — from the way we approached our marketing, to packaging, to the delivery experience of our products arriving at each customer’s door.
I’d recommend getting your boots on the ground in the market as soon as possible. We launched without a US presence, but visited as soon as we could to get a true understanding of every piece of our business puzzle, from marketing to customer service to supply chain.
You really do need a USP
Before you attempt the US market, consider how compelling your unique selling proposition (USP) really is. For us, our luggage personalisation services, product breadth and strong story about being a popular Australian brand helped us launch with a PR-first strategy to make some noise and create interest and demand.
The timing of our launch also helped. The US was just emerging from COVID-19 lockdowns and restrictions, so travel was top of mind for a large section of consumers.
It will take time
Patience is a virtue when it comes to nailing your international expansion. One year into our US presence we’re still learning all the time, and feel we’ve only just scratched the surface. The July luggage products that do well in the US aren’t the same as the products we’ve found to be popular in Australia, and we’ve just had to learn from experience — no amount of market or consumer research could have really pre-empted that.
Be prepared to play the long game, and consider the impact of having the right team — you really need your people to shift their mindset from local to global, and to be invested in coming on the journey with you. The upfront investment in time and money is significant, but in time it will pay off — that huge market might be hard to crack, but it also comes with sizeable potential.
Whatever your business, by truly committing to a long-term presence, allocating resources to invest in marketing, and embracing a global approach to every aspect of your business, the rewards for your risk could be significant. Jump in with both feet, and be prepared to play big.
