For many successful fashion and lifestyle brands looking to grow their customer base, entering the US market is a key step in their international expansion strategy – whether it’s household names such as Gymshark or high-end brands like Sézane. But with the cost of setting up US logistics operations often prohibitively high, how can less established brands make the leap into the US? Global Bridge by Bleckmann provides an affordable solution. Read on to learn how it helps brands of all sizes get their products in front of a whole new audience and drive growth thanks to its pay-as-you-sell concept.
How can pay-as-you-sell help you enter the US market?
Pay-as-you-sell is an innovative logistics service model designed to enable cost-effective expansion into the US market. Typically, brands looking to set up shop in the US will be faced with huge upfront costs – from leasing a warehouse to setting up a US legal entity – but pay-as-you-sell changes the game. “By working with Bleckmann, brands can start selling in the US market with minimal set-up fees, paying only for the logistics capacity they use,” explains Erik Janssen Steenberg, Business Development and Innovation Manager at Bleckmann. “This means they don’t have to make a substantial investment before they start selling – removing what was previously a significant barrier to entry.”
But how exactly does the Global Bridge model help ambitious brands expand so cost-effectively? The key lies in the growth of high-end online marketplaces in the US, which have become increasingly popular in recent years. “Many household names in US retail have made the transition to the online marketplace model – and they’re all looking for hot new brands to attract their customers,” continues Erik. “This is a great opportunity for European brands to showcase their products to a valuable new audience.”
How can online marketplaces drive brand expansion?
The Global Bridge solution offers brands access to more than 400 branded marketplace platforms through one centralised system. “We handle the entire process – from selecting the best marketplaces for your brand to the IT integration,” explains Erik. “And thanks to our close collaborations with renowned retailers such as Saks Fifth Avenue Macy’s and Nordstrom, we can precisely match new and existing clients’ products with items that the marketplaces are looking for. So, not only can we reduce upfront costs for brands, but we can also help increase the chances that their products will be a hit in the US market.”
A cheaper and more efficient US expansion solution
Another advantage of the new Global Bridge solution is that brands don’t need a new legal entity to enter the US market. This is achieved through ‘flash transactions’, where legal ownership of products is transferred to Bleckmann for a few moments just before they’re sold on the marketplace platforms. Normally, brands would have to set up their own legal entities to pay VAT and import taxes, which can be very expensive and time-consuming. Instead, the Global Bridge solution ensures that Bleckmann takes on all this responsibility – including taxes, customs and any other compliance requirements. This streamlined set-up means that expansion is cheaper and more convenient.
Global Bridge also significantly reduces shipping costs for smaller brands. By making the most of our extensive transatlantic freight networks, the solution enables Bleckmann to deliver any volume of items to the US within 48 hours. This means that brands can reach the US faster without having to ship large volumes of goods. “Typically, lower shipping rates are only offered to established brands that ship large volumes,” says Erik. “But with our Global Bridge solution, we consolidate thousands of orders from different brands into one shipment, so we can offer much more competitive rates, even if you’re only shipping a few hundred items. And you don’t even need a dedicated US warehouse set-up.”
Growing your brand awareness in the US with Global Bridge
Global Bridge can be a key tool in helping your brand can find its audience in the US without the substantial investment normally required. By using the fast-growing marketplace model, it allows you to ‘test the waters’ and adapt your offering as necessary. Crucially, you can also remain competitive by offering the fast delivery times that US customers expect. “The objective of Global Bridge is to give our brand partners the best of both worlds, unlocking the US market without the traditional cost barriers that would otherwise exist,” adds Erik. “Through this programme, we hope to strengthen our position as a complete strategic partner for our clients.”
With the rapid expansion of the marketplace model, more and more European brands are discovering the benefits of entering the US market. And as this trend develops, Bleckmann’s Global Bridge solution will be instrumental in making US expansion accessible to many more in the years to come. “We’re very excited about the opportunities that Global Bridge offers our clients,” concludes Erik. “It’s the ideal solution to help them increase their brand awareness and improve their chances of success in this key market, while not having to absorb exuberant costs before being able to sell a single unit”.
Want to find out more about how our new Global Bridge solution can help power your brand’s expansion? Get in touch today for a free consultation with a Bleckmann expert!
