Lorna Jane pops up online in NZ push
Activewear brand Lorna Jane will launch into New Zealand next month with a ‘web-only’ model that could be replicated in markets across the globe.
The Brisbane-headquartered company, which operates over 100 retail stores across the country, has doubled its wholesale base to 350 doors since restructuring its ‘stockist program’ mid-last year. Lorna Jane director Bill Clarkson said 10 per cent of business is currently generated from wholesale orders, with over $10 million in annual sales via a dedicated online ordering system.
Clarkson said New Zealand will be the ‘test case dummy’ for a double-pronged web model which targets sales from both customers and boutique owners.
“Our strategy in New Zealand is to kick off our first web-only business, so what I mean by that is a model where we do not open any stores but build an online business for both wholesale and retail [clients],” he said.
The company will unleash mobile pop-up stores in a majority of the 110 gyms currently operating in New Zealand. Consumers will be able to purchase selected merchandise from the foyer sites, which will operate for two days at a time, and browse touch screens which introduce them to lornajane.com. The launch will commence next month, with Clarkson predicting a six-month rollout for gym sites across the country.
“The pop-ups will introduce customers to the website or encourage them to take the brand to their favourite boutique. The customer drives most boutique purchases these days. If our pop-up and dot com strategy works in New Zealand, we will look at kicking off the same concept internationally. That gives us another armour to not only perhaps open retail stores in say South Africa, but build that model in that country for our wholesale and [e-tail] business.”
Lorna Jane first introduced a stockist program when it branched into wholesale 12 months ago. The program currently offers clients a broad range of services, including full access to 150 new product styles per month, point of sale marketing material, online ordering and ongoing brand updates via a quarterly stockist newsletter. Clarkson said Lorna Jane will look to double its wholesale business over the next two years by pushing the web-based ordering system, with order minimums set at $1000 a month.
“This is the beauty of our business – we have no travelling salesmen, we have one coordinator who processes online sales,” Clarkson said. “Everything is done online – buyers can browse, order and buy products. No garment leaves our premises unless its been paid ... we do not carry accounts.”
The expansion strategy comes almost a year after private equity firm Champ Ventures took a significant stake in the Lorna Jane business. Clarkson said in addition to its recent wholesale success, Lorna Jane has recorded 25 per cent like-for-like growth in its retail arm over the last three years.
Assia Benmedjdoub