An extensive portfolio of classic and popular fashion brands will enter the Australian retail sector for the first time as Brand Machine Group (BMG), a global leader in branded fashion manufacture and licensing, launches into the local market in 2024. First up is the US$2.4 billion brand US Polo Assn, followed by childrenswear lines in the BMG portfolio, including New Balance Kids and Juicy Couture Kids. The opportunity to meet consumer demand is more than apparent with the Australian childrenâ
drenâs apparel market tipped to have a value of about A$5.39 billion.
Australia will also serve as a launchpad for BMG to enter other international markets across the Asia Pacific region.
Coming to Australia
Boo Jalil, BMG CEO, told Inside Retail, âBrexit triggered us to reassess our business internationally, we realised very quickly it was time for us to move faster globally.
âItâs really important people realise we are not here for five minutes. We have a straight line three-year strategy,â Jalil said.
The strategy, which is all about keeping things simple, was placed on hold for three years due to the Covid-19 pandemic.
âWe distribute where the brand is, if itâs a kidâs brand, weâre following the adult business â itâs pretty easy as the map has been done for us. If weâre an adult brand, weâre taking our lead from the brand itself and where they want to see it sitting,â Jalil said.
âThe unique thing about us is we are not looking to be a long-distance lover. Weâre here and the website is local-for-local — Australian Dollar, [Australian] fulfilment, etc, etc. So thatâs switched on now.â
Globally, US Polo Assn already has 1150 bricks-and-mortar retail stores. âItâs a huge multibillion-dollar business and weâll be carrying that flag through the Australian market,â he said, noting that BMG launched the brandâs e-commerce site in Australia last week.
Australiaâs largest retailers met with BMG CEO Boo Jalil and its newly appointed country manager for ANZ, Kevin Cliffe, via a new, Surry Hills showroom.
âNext play will be to work with certain retailers in the market to introduce the brand to the wholesale community,â Jalil added.
âAnd then weâll be opening [US Polo Assn in] retail [stores] in Australia. Weâre hoping to have that done by the second quarter of 2025.â
In the latter part of next year, BMG plans to have around eight brands within its existing portfolio live in the Australian market.
âAlongside that, we are bringing New Balance Kids into the market across multiple retail sites,â Jalil added.
BMG is looking to bring more âstreet casualâ and âoutdoor brandsâ to Australia after meeting with a few local retailers who showed âquite an unexpected excitementâ towards BMGâs offering in that market segment, Jalil said.
âWeâre a rotating door of brands and thereâs always something in the background waiting to come in,â he said.
BMGâs recent expansion into the soft furnishings market will roll out into the Australian market in the next six to 12 months.
âSix months ago, we launched a global home division with three brands, US Polo Assn being one, William Hunt Savile Row and Duchamp, a luxury brand from Europe,â Jalil said.
âWeâre a textile business and thatâs what we specialise in. There are other assets, probably a year away after that around home. Right now itâs concentrating on the textiles,â Jalil added.
In Australia, the home décor market segment is set to generate a revenue of A$2.77 billion in 2024 and is projected to experience an annual growth rate of 3.25 per cent (CAGR 2024-2029).
Not just a machine
BMG is a UK-based, global business with over 40 years of experience in the fashion industryâs vertical manufacturing processes.
âWeâve been in the licensing business for just over 30 years. The background of the business is manufacturing and supplying to some of the biggest retailers on the planet. And then we kind of ended up in licensing by default really,â Jalil said.
Jalil emphasized the parallels between the UK and Australian retail markets. âI could be in London today, the parallels are uncanny, more than any other market,â he said.
âI was quite surprised where a few of the biggest brands today sat in the Australian retail market,â he added.
To seamlessly introduce its brand portfolio to the Australian market, BMG will take a strategic approach using wholesale and direct-to-consumer (DTC) avenues.
He credits the transparency and integrity of the business for its success.
âItâs not about success or failure. Itâs about integrity. You canât take someoneâs asset and be half-hearted about it. You have to be committed. It has to be your life,â Jalil said.
âTheyâve been dedicated to getting it good enough to interest you â build upon that. You have to feel the same about it.â
Focusing on one brand at a time, BMG has no plans to move into multi-brand DTC retail, and this thinking flows through into how it structures its teams.
âWe wonât cross-pollinate with another brand, our teams are individual. They get up in the morning and think about it, they go to bed at night thinking about it. And you know, 24 hours a day seven days a week, thatâs the only thing theyâre concentrating on. Thatâs the uniqueness about how we run a business,â Jalil said.
âItâs a much more expensive way of running the business, but we feel itâs the right way to be, weâve always been very hard-nosed about that way of working as a company.
âThe way we license is seamless. We are the brand, a consumer should always have the same appeal for what we do, as they do for the brand itself.
âWeâre an unusual entity. There are two or three in the world who do what we do,â Jalil added.