Premium outdoor brand Arc’teryx has always been obsessed with product design. It describes the Arc’One design centre at its headquarters in Vancouver, Canada, as an engineering lab, and employees regularly test prototypes in the rugged conditions of the nearby Coast Mountains. It can take years to refine the minimalist look and technical performance of a new product, and as a result, many of its jackets and pants cost upwards of $500. Now it’s seeking to add a third element to the de
design process: versatility.
“Our global retail direction and model has evolved,” Dan Wojo, commercial manager for Arc’teryx Australia and New Zealand, told Inside Retail. “We’re seeing more versatility in our products.”
This means that jackets that are meant to be worn in the mountains have less of an overtly technical look, so they don’t look out of place in urban environments. Garments have sleeker cuts, and reflective panels are made to be as minimal as possible.
By making products more versatile, they can be worn more often, and therefore become more valuable to consumers, according to Wojo.
“As we build in versatility, we also increase the value of our products to our consumers because they’re not buying a single piece for a specific activity,” he said. “They’re buying a piece that, although designed for a specific activity, has an extended and also considered alternate use as well.”
At the same time, Arc’teryx is working on refining its product mix, so when a customer walks into a store to buy a jacket, they’re not confronted with five or six different options that meet their needs.
“It’s about having the right product selection, but not an overwhelming product mix, where there’s so much choice that people aren’t certain which one to select. We’re refining the way we go to market,” Wojo said.
Expansion plans
This new strategy can be seen at Chadstone shopping centre, where Arc’teryx recently opened its second store in Australia, after launching its first standalone store at Emporium Melbourne last year.
Spanning 166sqm, the Chadstone store stocks Arc’teryx’s premier performance range, Veilance, which has found a devoted following in the streetwear community, gaining celebrity fans like Travis Scott, Drake, and Virgil Abloh.
“It’s made from exactly the same technologies — super premium, highly technical fabrics — just applied in the most urban consideration possible. The aesthetic and design are highly considered and tailored for urban use,” Wojo said.
Unlike the main Arc’teryx range, Veilance is not widely available through specialty stores in the region. The brand plans to stock Veilance in every new bricks-and-mortar store it opens in Australia. The next store is expected to open in Sydney in the first half of 2022.
The rise of D2C
Since opening its first retail store and launching a local e-commerce site in Australia last year, Arc’teryx has seen strong growth across all channels, including wholesale.
“We’re coming from a very low brand awareness level, and by opening these retail stores and providing these brand moments, it does enhance our brand awareness and recognition,” Wojo said.
While sales took a hit due to store closures in 2020, the brand’s online sales exceeded expectations by nearly 100 per cent. Arc’teryx is now reforecasting and updating its merchandise plans to account for this increased volume.
As Arc’teryx looks to increase its direct-to-consumer (D2C) presence in Australia over the coming years, Wojo said it won’t have a negative impact on the brand’s retail partners.
“The biggest consideration for us is wherever our consumer is shopping, they have a great Arc’teryx experience. Some people will only consider an outdoor specialty store or run specialty store for their needs, whereas others will shop in a shopping mall environment and like that direct brand connection. It’s just providing that consumer choice,” Wojo said.
“We certainly haven’t seen a significant shift away from B2B to B2C, it’s just increasing overall growth for the brand.”