ally those that don’t have a home-court advantage.  So why are so many Australian brands expanding in this market, and what precautions do they need to take to thrive in this competitive retail landscape? Why so many Australian brands are entering the US now GlobalData’s managing director and retail analyst Neil Saunders told Inside Retail that the obvious appeal of the US market for Australian brands is its scale. The US retail market is 20 times the size of the Australian market, in terms of sales. Entering this market can be especially appealing for Australian brands that have reached “a ceiling” in their home country, he said.  “The development of e-commerce, which has seen more Australian brands sell direct to US consumers over the past 10 years, has also given some firms confidence that their products will be well received,” he added. “This has then acted as a springboard for more expensive physical expansion.” One brand that exemplifies this approach is Silk Laundry, a silk apparel brand that just opened its first US-based brick-and-mortar location, after seeing increasing e-commerce interest from its American consumer base over the past few years.  Why American consumers love Australian brands One reason why Australian brands seem to be succeeding in the US market is that they provide American consumers with fresh products, according to Saunders. “Australian retailers can add some fresh perspectives to the market in terms of designs and styles,” Saunders stated. “A lot of brands will research the US market and conclude that there is something new and different they can bring.” Melissa Minkow, a director of the retail strategy at CI&T, noted that shoppers have become much more familiar with overseas brands due to the nature of social media and content consumption today. “Social media has globalized retail at a record-breaking pace with its ability to expose so many potential consumers to brands all over the world they would never otherwise see,” Minkow mused. The retail expert also noted that many Australian brands emphasize sustainability, which is of increasing importance for Gen Z fashion enthusiasts. Minkow stated that Australian brands can authentically capture these consumers in a way that many US brands struggle to do.  As far as how Australian brands can stay on top in the US, Minkow said that quality and value must be of the utmost focus.  “These retailers will have to consistently deliver quality goods so that consumers feel justified in potentially paying higher shipping fees or waiting longer for the deliveries,” the retail analyst warned. On the other hand, “these companies will have to be sure they’re competitive with their pricing since they’re entering established categories in the US where brand awareness already exists for others,” Minkow concluded.  Passing fad or long-term trend? It can be easy to underestimate the difficulty of entering the US when looking at brands like Cotton On, an Aussie-born retailer that has been a part of the American apparel scene since 2009 and currently has 154 stores spread across the US. However, it hasn’t been all smooth sailing, especially in recent years. For example, Australian fashion darling Dion Lee was once killing it in the American market, with several brick-and-mortar stores and a high-profile endorsement by none other than Taylor Swift, who wore the brand at the Super Bowl earlier this year. However, thanks to several factors, including supply chain vulnerabilities and the brand’s failure to find a buyer to successfully carry out its global expansion plan, Dion Lee is exiting the American fashion scene — and indeed, closing the business entirely.   As Rosanna Iacono, fashion industry expert and CEO of strategy consultancy The Growth Activists, told Inside Retail, Australian luxury apparel brands must understand the “importance of adapting, innovating, and financially managing for resilience in a competitive global market.” Nick Gray, founder of the Australian-based retail consultant agency I Got You, said that Australian brands that are succeeding in the US are tapping into a “unique intersection of quality, lifestyle and authenticity that clearly resonates with the American consumer”.  He pointed out that brands like July, Status Anxiety and Silk Laundry reinterpreting how retail is done, versus trying to reinvent the wheel itself. “They blend Australians’ laid-back yet sophisticated aesthetic with a commitment to sustainability and craftsmanship. It’s this distinctly Australian approach to design that offers an appealing alternative to what’s often found in the American retail landscape,” he said. Through a combination of localization, partnerships with key retailers and a deep focus on storytelling, “good Australian brands have successfully positioned themselves as more than just products; they’re symbols of a lifestyle that balances simplicity, luxury, and genuine connection,” Gray noted.  However, he warned that brands can’t simply rely on selling quality products to capture American consumers’ attention.  “It’s absolutely critical to know the emotional default behind what you are doing, not just focusing on the product you are selling, but knowing the feeling you are selling and how this connects meaningfully to the values, beliefs, behaviors and desires of your target market in the US,” Gray said. “We as humans buy with emotion first and justify with logic later.”