Consumers’ willingness to drop hundreds of dollars on the latest releases from Nike, Adidas, Yeezy and other hyped-up brands is fuelling the growth of premium sneaker and streetwear retailer Subtype, which is set to open its fifth bricks-and-mortar store on November 20. Located on Edward Street in Brisbane, amongst luxury retailers, such as Cartier, Hermès and Louis Vuitton, the new store will extend Subtype’s reach into Queensland for the first time. “We see a great opportuni
ortunity in Queensland,” Liam Robson, general manager of Subtype, told Inside Retail.
“We feel the market is significantly under-serviced in the street and sneaker space. It’s always been overlooked as a fashion market, and we see a good opportunity to service Brisbane and the surrounding areas down to the Gold Coast and showcase brands that are not available in that market.”
Look and feel of a high-end boutique
Subtype was founded in Sydney in 2014 by Leith Testoni and Jonathon Yeo, the duo behind Australian menswear brand Zanerobe. Advertising footwear, apparel and accessories from high-end brands, such as Nike, Adidas, Yeezy, Fear of God, Common Projects, Casablanca, Drôle De Monsieur and MM6 Maison Margiela, the retailer sells everything from $200 sneakers through to $1000 down jackets.
In 2018, Subtype was acquired by Accent Group to round out the ASX-listed footwear giant’s portfolio of mostly mass market shoe stores with a more premium offer and provide an inroad into the apparel category.
Since then, it has moved its Sydney store to a new location on George Street, opened a flagship store in the Melbourne CBD and added new outposts in Auckland and Adelaide, but it has retained the look and feel of a high-end independent boutique by embedding unique design elements in each store.
“We start [by] essentially landing on a theme or colour that’s relevant to that city. So, for example, Melbourne is very much around steel and a darker colour palette based on the [idea of an] urban jungle. We brought in a lot more gold [colour] and used a lot of marble in the store in Sydney, and Auckland is the ‘city of sails’, so we have a blue theme running through that store,” Robson explained.
“In Adelaide, we used a claret-red colourway to signify the wine region, and we’ll use a sandy colourway in our Brisbane store to signify the surf and coast that Brisbane and Queensland are known for.”
At the same time as Subtype has expanded its bricks-and-mortar presence, it has bolstered its digital business and launched omnichannel services, while continuing to deliver a high level of personalised support.
“One of the things we trialled with great success through the lockdown period in Sydney, Auckland and Melbourne was a call-and-collect service. Surprisingly, it has actually outstripped our click-and-collect business,” Robson said.
He attributes the popularity of call-and-collect to the “instant gratification” of “being able to jump on the phone and secure something quite quickly”, especially at a time when supply chain disruptions have led to stock shortages.
Subtype has also trialled personal shopping sessions in stores, where registered customers can get one-on-one service and advice, exclusive discounts and other relevant offers.
“We’re looking to make it a key part of our platform,” Robson said.
From Australia to the world
After Brisbane, Robson sees Perth as the next logical destination for Subtype to expand, followed by an overseas market. Given the retailer’s strong base of international students, largely from Asia, Robson believes a city in Southeast Asia, such as Ho Chi Minh City in Vietnam, could be a good candidate.
“We would hope that within the next 12 months, we’ll be servicing the key international markets via our digital business, and within the next two to three years, we would definitely like to see ourselves with a flag in the ground,” he said.
The global sneaker market is expected to generate US$66.3 billion in revenue this year, which is slightly down from 2019. But over the next four years, the industry is forecast to grow by 30 per cent to hit US$102.8 billion by 2025.