Professional Documents
Culture Documents
perspectives, and perpetuated the consumption and waste of clothing goods. Year 2018: “The
clothing industry is the second largest polluter in the world… second only to oil” (Sweeny,
2015). Facing the public scrutiny associated with these statistics, apparel brands are reevaluating
apparel is lowest in the U.S. at 67% disinterest (2018). This lack of priority for sustainability is
not a sentiment that persists around the world, however. Sweden declared its ambition to,
“become world-leading in sustainable fashion,” (Mistra, 2017) and Australia is in the midst of a
Amid a growing pollutant crisis, and a lack of market motivation to accompany it in the
United States, retailers would be wise to take advantage of the international appetite for
sustainability. WWD observes that “Tapping into emerging markets and balancing their
businesses to avoid total dependence on the U.S. market is critical strategy for long-term
expansion” (n.d.). Brands must also, however, take a careful approach when selecting the chosen
market of expansion. Virginia Pittarelli states that when brands are looking to expand they must
focus on products that are transferable to other markets (Schram, 2018). ALPHA LTD, echoes
Pittarelli by saying, “Going global never means watering down the brand… It means walking a
fine line between respecting the culture and language of the new market and holding fast to what
makes the brand different” (2017). Alo Yoga has an opportunity to globally expand, without
sacrificing their brand identity, by seeking out markets that align with their ideals and are
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Alo Yoga, a Los Angeles based retailer founded in 2007, stands behind the meaning of
“inspiring mindful movement leading to better living” (ALO, 2018). The founders, Danny Harris
and Marco DeGeorge, wanted to create yoga clothing transformable from the mat to the street,
encompassing contemporary use and comfort (Figure 1). Since 2007, the brand has acquired a
loyal customer base with the same values as the company: mindfulness, minimization of social
and ecological footprint, healthy lifestyles, and a massive social media following (SooHoo,
2017). The company’s strategies to stand out in a billion-dollar athleisure market are as follows:
distinctive branding, relationships with other businesses and social influencers, real customer
photos on site, and clear evergreen hashtags. Given that Alo already has a significant athleisure
presence in the United States, expanding globally is a logical growth strategy going forward.
Companies with successful global expansion stories use different approaches to ensure the brand
identity of the company is carried through and correctly fits the new expansion segment. Nike
and Lululemon lead as successful examples of global expansion in the retail industry.
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Alo’s competitor brands, Nike and Lululemon, both successfully expanded into the
global retail market. Nike’s product innovation, unique marketing, and balanced distribution
strategies have been vital to their successful global expansion (Hottovy, 2016). Nike approaches
each new international country with a different marketing strategy that “incorporates geographic,
cultural, and societal norms of that region” says Hottovy. In January of 2018 Nike starting
selling Nike Pro Hijabs in twenty different countries across Europe and the Middle East
(Stanglin, 2017). When expanding to the Middle East, Nike shows an excellent example of
catering their products to the culture in each country of expansion, but remaining true to the
original intention of the brand. By creating an athletic Hijab Nike hopes to “inspire women and
girls there who still face barriers and limited access to sport” (Stanglin, 2017). These tactics
reiterate the idea of a company remaining true to their own identity while finding ways to
Similar strategies have been utilized in the successful global expansion of Lululemon.
The Canadian based company, started in 1998, has since expanded into 14 different countries
(Lululemon, 2018). The powerhouse brand’s innovative products, differentiation strategies, and
competitive advantage drive success in their international segments. Lululemon creates a loyal
community around their brand with programs such as “Sweat Collective,” launched in February
of 2018. Members are active “leaders of sweat” within their community, including roles of
personal trainers, fitness instructors, and athletic professionals (Quiroz, 2018). Lululemon offers
special perks such as discounts to sweat collective members to thank them for their leadership.
“Sweat Collective” is just one example of Lululemon’s marketing strategies allowing for success
in a new global market. Lululemon remains authentic to their brand identity while also engaging
customers in interactive experiences and programs, enabling for the launch of global success.
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As Alo Yoga continues to show success in sales, brand identity, and loyal customer
following the opportunity to approach a new international territory is now. With deep roots in
mindful living and sustainability, Australia is the ideal market for Alo to enter. Alo’s brand
symmetry with that of the Australian consumer allows the company to enter the market
seamlessly. The Report confirms, “Australians are ethical shoppers, who are willing to invest in
sustainable brands” (Cummins, 2017). Australian consumers prioritize healthy lifestyles and
value brands with a story and meaning behind their products. According to the Australian
Retailers Association, “87% of Australian shoppers ages 18-22 prefer shopping in-store and view
shopping as a social experience” (Kirkland, 2018) (Figure 2). Transparent and authentic
approaches to business are also a top selling point to consumers. Alo’s expansion to Australia
provides a unique opportunity to grow within a market segment whose identity complements
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Figure 2. Stats on Australia 5
GROUNDED, is a thirteen-piece yoga apparel collection encompassing the ideals of
sustainable, transparent, and authentic quality. The collection partners with Taiwanese company,
Singtex, innovating fabric production from used coffee grounds. The patented yarn, S.Cafe®,
uses “an energy saving process, combining coffee grounds onto the yarn surface, changing the
characteristics of the filament, and offering 200% faster drying time compared to cotton”
(Singtex, 2018). The textile procedure offers fabrication benefits as well as recycles a product
that would otherwise be thrown away (Appendix A). While interviewing Lisa Zoet, President of
CFL Sourcing, she mentioned past partnerships with Singtex saying, “It’s expensive…so the key
component is making sure the consumers understand what they’re purchasing” (Myself, Personal
Communication, 2018). Product transparency is critical to success. Singtex shows past co-
branding success stories of their S.Cafe fabric with companies such as The North Face and
Timberland (Singtex, 2018). Zoet further explained key sourcing strategies for Alo to produce in
Asia and sell in Australia (Appendix A). Integrating sustainable S.Cafe® fabrics into the
GROUNDED collection reinforces Alo’s values of “mindful movement leading to better living,”
Australian consumers prioritize brands with ethical practices and a meaning behind their
clothing—GROUNDED caters to both. The collection is not only geared towards individuals
practicing yoga, but also those wanting to invest in a meaningful brand. During an interview with
store associate at Alo’s NYC flagship store, Alison, she noted about half of the customers are
yogis, but the other half are actually international travelers (Myself, Personal Communication,
2018). Alison mentioned Alo has never offered a sustainable fabric collection before, but the
topic is definitely on their consumer’s radar and becoming a higher priority. The GROUNDED
collection provides a sustainable set with deep meaning embedded, perfectly targeting the new
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GROUNDED is inspired by those who move mindfully and live consciously. Crafted
with intention, the collection comprises a sustainable textile process equal parts creative and
resourceful. Oriented around mindful movement, the collection features a range of athletic
apparel that can be transformed “from the mat to the street.” Design elements of simplistic lines,
geometric shaping, and muted earth tones create an aesthetically appealing collection functioning
just as well as it fits. GROUNDED consists of thirteen separates allowing for mixing and
matching based on their muted tones and transitional silhouettes. Adjusted size standards are
applied to ensure this collection is friendly to all sizes. Earth tones paired with the structure of
bare materials found within the world are represented throughout each ensemble, catering
towards Australian trends in athleisure. Innovative textiles made from used coffee grounds and
modern technical construction methods create pieces of high quality with intentional care.
Inspiration from the world grounded below and all around is showcased throughout the organic
print design, mixing soft elements with a splash of fresh eclectic vibe (Figure 3).
Figure 3.
Print Design
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The story of GROUNDED all starts around the idea of creating a clothing line that means
more than just buying a new pair of leggings. Taking a simple waste product such as used coffee
grounds, and giving it a second life creates a thoughtful product for mindful living. With Alo
Yoga expanding into Australia, the desire for sustainable clothing has never been more
prevalent. With specific marketing tactics, Alo Yoga will first gain brand awareness in the new
market of Australia through the use of on-line Instragram stories and posts, social media
influencers, and personalized invitations to the grand opening months prior to the event
(Appendix B). Once consumers become interested and aware of the brand, several in-store
experiences will promote foot traffic into the new physical store location. A specified portion of
the store floor plan will be built around merchandising the GROUNDED collection. This display
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will show the story behind the collection through promotional videos, a hands-on display of
Singtex’s coffee ground fiber technology, and a personalized yoga mat station (Appendix C).
Alo will also incorporate all of its current in-store experience strategies such as a coffee shop,
lounge area, and in-house yoga studio (ALO, 2018). In order to compete with current yoga
studios in the area, Alo will offer a free class with each first purchase of an article from the
will quickly attract customers to the collection debut while gaining long-term brand loyalty for
customer’s new go-to spot to shop, eat, study, and practice yoga at.
GROUNDED will only debut in Alo’s new flagship store in Sydney, Australia, but
become available online and in other select US stores one month after its initial launch. This
marketing tactic encourages customers to come into the store to see what the excitement is about,
physically experience the collection, and most of all instill brand meaning and loyalty. This
promotes in-store traffic in Australia while also giving Alo the opportunity to test out the
sustainable based collection first in a consumer region prone to investing more in sustainable
products.
With the opportunity for U.S. based brands to expand globally and sustainability
becoming a higher priority worldwide, GROUNDED will be the start of a successful expansion
story for Alo Yoga. From initial inspiration to Alo’s unique brand identity to advanced fiber
within sustainable roots, the collection joins together mindful movement with conscious living to
create clothing instilled with meaning and intention. For the dreamers, the doers, the yogis, the
ones who believe they can do their little part to better our world, GROUNDED is made for you.
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Alo Yoga. (2018). Retrieved from https://www.aloyoga.com
ALPHA LTD. (2017, April). How the Top 5 Fashion & Apparel Brands went Global.
America’s Cotton Producers. (2018, Mar. 1). In Apparel, It’s Fast Fashion Versus
Australian Securities & Investments Commission. (2018, Mar. 15). Australian Spending
Cummins, C. (2017, April 4). Gen Z attracted to social bricks and mortar shops. The
Doyle, M. (2018, Mar. 21). Sustainable Fashion Takes Charge in Australia. Business of
australias-sustainable-fashion-moment
Kirkland, M. (2018, May 15). Shopping with the current and future generations.
Mistra Future Fashion. (2017, June 1). Sweden as Role Model Country for Sustainable
Quiroz, M. (2018, Jan. 8). A Growth Strategy for Lululemon. Medium Corporation.
68819680e511
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Schneiderman, M. (2017). 6 Businesses with Success in China (and How They Did It).
Schram, L. (2018, Mar. 8). Euro Retailers Sense Opportunity Here While US Brands
https://commercialobserver.com
Soo Hoo, F. (2017, Mar 28). How Alo Yoga Became an Instagirl Favorite Without Really
Stanglin, D. (2017, Dec. 20). Nike begins selling sports hijab for Muslin female athletes.
begins-selling-sports-hijab-muslim-female-athletes/970226001/
Sweeny, G. (2015, Aug. 17). Fast Fashion Second Dirtiest Industry. Eco Watch.
Retrieved https://www.ecowatch.com/fast-fashion
Women’s Wear Daily. (n.d.). Brand Expansion: The Year Ahead. Retrieved from
https://wwd.com/business-news/retail/brand-expansion-the-year-ahead-2437624/
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Figure 5. S.Cafe Fabrication Qualities
GROUNDED partnered with
6, S.Cafe, 2018).
prevent overinvesting. Zoet said China works best for manufacturing using
into the United States. This allows for faster response time
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Figure 4. GROUNDED Hangtags 15
Online marketing strategies promote brand
To further create excitement and awareness of Alo to Australia, a grand opening event
will be held at the Sydney, Australia flagship store. By clicking on the link in Alo’s Instagram
bio, Australian customers are able to receive a personalized invitation via email. Details of the
grand opening event are noted on the invite below (Figure 8).
Figure 8. Email Invitation
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In-store merchandising of the GROUNDED collection
the collection at the front and center of the store. Built around the
Figure 10. Singtex info slides to be featured on store iPads Figure 9. Promo video created by
Me, 2018: Scan QR code to view
mantras meaningful to them. This creates a hands on store experience and also gives customers a
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Figure 11. Personalized Yoga Mat 17