Sparkes Apparel

Business Challenge

Market Entry Strategy. Opening Retail Doors and Gaining Traction in Australia

Despite early success with several major retailers, SAXX quickly depleted its initial marketing budget due to an underdeveloped market entry strategy. While the brand’s innovative technology had gained acceptance overseas, the Australian market presented unique challenges. SAXX struggled to find adoption among Australian retailers and consumers, largely due to the brand’s lack of education around the product’s key differentiators, particularly the innovative technology behind the brand.

One of the primary hurdles was that this innovative technology, which enhanced comfort and performance, was unfamiliar to the average Australian consumer. In a market dominated by long-established Australian brands with strong consumer loyalty, introducing a premium product required more than just shelf space—it needed a robust educational component to explain the value and benefits of the technology to both retailers and end-users. Without that, many retailers were hesitant to stock a product that demanded higher pricing, particularly in a highly competitive environment.

Business Solution

Brand visibility and performance marketing

Recognising their limited experience in Australian distribution and wholesale environments, the owners sought our experience to boost brand awareness with a PR campaign and develop a national B2B sales and marketing strategy. They aimed to secure new business partnerships to fulfill the terms of their distribution agreement. Additionally, they needed digital marketing help to drive direct-to-consumer online sales. The Canadian parent company has invested in educational marketing campaigns, emphasising the tangible benefits of innovative technology through demonstrations, user testimonials, and product trials, which we aimed to replicate locally. Unfortunately, with the original marketing budget already depleted, partnerships with Australian influencers or brand ambassadors, focused retail staff training programs, and experiential marketing to help potential customers understand the added value was extremely challenging to execute.

Business Outcome

National Recognition, Rapid Online Growth, and a Strategic Exit

We strategised and executed a savvy publicity campaign that helped propel SAXX into the spotlight, securing valuable online and print coverage in the industry’s leading apparel trade publications. This heightened exposure resulted in increased interest from potential retail partners and played a pivotal role in securing a partnership with the major online retailer, The Iconic.

 https://insideretail.com.au/news/saxx-hits-australian-shores-201707

https://www.ragtrader.com.au/news/saxx-s-ballsy-new-campaign

https://www.ragtrader.com.au/news/city-beach-and-rebel-are-on-board-with-this-brand

https://giftguideonline.com.au/us-brand-saxx-launches-in-australia/

Simultaneously, a consistent digital marketing strategy resulted in an impressive 23.4X growth in the SAXX customer database. Adjustments to the pricing strategy also contributed to a remarkable 227% increase in online sales.
 

Additionally, with a more robust budget, we could have leveraged digital channels to create content showcasing real-life scenarios where SAXX outperformed competitors. Video case studies, comparison guides, and performance reviews would have accelerated consumer understanding and adoption. A multi-tiered approach, including social media education campaigns and in-store activations, might have helped SAXX stand out in a saturated market, overcoming initial resistance to its premium price point and unfamiliar technology. As is often the case, once competitors begin adopting similar innovations, it aids in broader market acceptance.

Ultimately, the owners recognised that sustaining SAXX’s growth required a significant capital injection to continue driving brand expansion and market acceptance. They transferred the brand to an established distributor with solid sales channels, ensuring continued momentum and adoption in the Australian market.