Launched almost a year ago, luggage brand Nere has already become Strand’s best seller. Not content with capturing the Australian and New Zealand market, Group CEO Felicity McGahan said that Nere – which strives to offer an affordable range of suitcases, travel bags and accessories – is adding another sticker to its passport by expanding into the United Kingdom. In an interview with Inside Retail, McGahan discussed what the UK expansion would look like, and what’s in store for the
r the recently rebranded company as it explores broader horizons.
Inside Retail: Can you tell me about Nere, and how it’s progressed since it launched in Australia and New Zealand in July 2022?
Felicity McGahan: Nere has very quickly become our top-selling travel brand. The aim was to provide a combination of fashion and value without walking away from that need to be functional.
As a result, we’re seeing a younger customer who thinks about travel in a similar way that they do about fashion. They’re not just buying a suitcase. Rather, they are creating a full look to complement their personal style.
Nere is very quickly paving the way to become that leading fashion travel brand, which offers an inspirational product that ties back to their outfit.
IR: Can you tell me more about how Strand is currently performing?
FM: We’ve just had a record year and travel in general has had a record year from a category perspective.
[Our strong performance] was led by the launch of Nere. Customers really responded to that differentiated offering and strong value proposition, and it has very quickly become our strongest performing travel brand. During our peak we were selling one piece of Nere luggage every 60 seconds which was incredible for us.
A significant number of those purchases included travel accessories, which showed that customers were accessorising their luggage to build and personalise their own style. Once we saw that traction, we identified that it would resonate internationally.
We wanted to take advantage of that and – going into summer in the northern hemisphere – we thought it was the perfect time to launch the value fashion brand in the UK. We think they will respond to that fashion and function, and form a unique position there.
We’re focusing on younger customers, and engaging travellers who are exploring Europe over this period.
IR: Why was the UK chosen as the European hub, and what does this mean for Strand in terms of its manufacturing and supply chain?
FM: We’ve had two strategies at Strand. One was to modernise the business and the other was to internationalise it. As we’ve talked about internationalising, we’ve needed to look at our product development and everything on an international scale. Not just on a local scale.
One of our brands, Antler Luggage, is also based in the UK. We’ve got an office in that market, we’ve already set logistics up and have operationalised the business in that market. It was a natural transition for us to send Nere to the UK.
The market size in the UK market was also exciting. We all know the scale opportunities that exist in the Northern Hemisphere, and [now] is a good time to look for growth opportunities outside of Australia.
IR: I’m curious as to how cost of living pressure – particularly among a younger audience that is most exposed to these challenges – might factor into Nere’s expansion plans.
FM: Everyone is tightening up and looking for true value in this economic climate. I honestly believe that they’re getting that from this Nere product. They can get the function and fashion at that accessible price. As a house of brands, we have that “good, better, best” [approach]. Nere is certainly hitting that entry market, which is appealing for customers.
IR: Can you discuss Strand’s plans in the Australian market?
FM: We’ll continue to upsize our stores in the local market so they are a larger format. It’s so we’re not just shops full of luggage and bags, but are lifestyle experiences that provide a beautiful environment for our customers to shop in. That continues to be a part of our modernisation and growth strategy in Australia.
We were focused on making Nere a successful brand in the local market first, but we want to share it with the rest of the world. This is Nere’s first passport, and sticker, and there’s lots to add to this journey.
IR: Can you discuss the goals and expectations for the UK launch, and what it might look like?
FM: We’ll look to [develop] our own e-commerce experience and continue to look for the right wholesale partners. We’re also conceiving a form of a brand store to bring it to life for the customer. So we’ll have wholesale, our web experience and a store experience to support that. We’ll respond appropriately, and see [the] scale that we want to go to.
There’ll be some play on certain colours to be more seasonally relevant at different times, but the assortment is very global, and won’t need too much adjustment. It’s a great category to export.
IR: You mentioned that this is the first passport and sticker. Can you discuss future locations in the works?
FM: We will continue on our growth and modernisation journey, and focus on delivering great experiences, and leading the way in fashion travel. We’ve got a lot of initiatives in the works both locally and globally, and – despite Strand being almost 100 years old – we’re operating like a start-up.
We love building brands, and will continue to do so to ensure that Strand remains fresh, relevant and exciting. As things get more challenging externally, we need to keep having fun and creating excitement for our customers.
IR: How do you think the rebrand from Strandbags to Strand has affected the brand’s financial performance?
FM: We’ve had a very deliberate strategy around modernising and internationalising our brands. Our assortment, stores and web experience have played a big role in making Strand more current and relevant, and we’re now attracting younger customers. Our loyal customers are also spending more.
We’ve had to improve our fashionability and quality, and keep to a value brand proposition that’s very affordable. It’s not just our customers who are energised, but our employees across all our stores and at our new head office.
We’ve really reignited the company. We had a record year last year – which is helping to fuel our confidence – and I think even as customers tighten up [financially] they’ll find a way to get out there. We [want] to be part of those adventures.