New Zealand-based lingerie company Rose & Thorne transitions to an online-only retail model, targeting the growing demand for larger bust sizes in Australia.
A New Zealand-based lingerie design company, Rose & Thorne, announced a significant shift in its business strategy, opting to transition to an online-only retail model aimed at leveraging increased demand in the Australian market for bras designed for larger bust sizes. The decision comes in tandem with the closure of its physical store and the end of wholesale operations, a move that is intended to enhance service capabilities to international customers directly from New Zealand.
Rich Carey, the General Manager of Rose & Thorne, emphasized the lucrative opportunity that Australia presents. “In contrast to our domestic environment, Australia is a $1.7bn bra market and is growing at over 4% each year,” he stated, illustrating the market’s potential for growth and profitability. The company’s new strategy revolves around catering to the rising demand for size inclusivity and the convenience of online shopping, which is becoming increasingly vital in the lingerie sector. Carey further elaborated on this by saying that the demand is anticipated to double the company’s business by 2027.
One of the central challenges in traditional retail, according to Carey, is the wide variety of sizes that need to be stocked. The logistics of maintaining a physical retail presence can be restrictive. “The challenge with physical retail is the sheer number of sizes you have to stock. Online, we can offer a complete size curve without the constraints of shelf space,” he explained. To better cater to consumer needs, Rose & Thorne is implementing virtual fittings and digital sizing tools to ensure a tailored shopping experience that is both private and accessible.
Carey highlighted specific growth opportunities within rural areas of Australia and stated the company’s commitment to educating potential customers about their offerings, especially for those requiring larger cup or back sizes. “We are seeing significant growth opportunity in key market segments, including rural areas,” he noted, as he announced that live online fittings would also be made available.
In its efforts to address the rising global trend of increasing bust sizes among women, Rose & Thorne recently expanded its size offerings to include K-cup bras, broadening its range from sizes 10C to 24K. “Over 60% of our K-cup sales have been in size 18 or up backs, and our best-selling K-cup size is 24K, which shows just how underserved this segment has been,” Carey remarked. He acknowledged that significant advancements in product development have minimized exchange rates, allowing the company to manage production costs effectively.
Australia represents a key priority for Rose & Thorne as the company aims to significantly enhance its revenue share from the region before considering market entries into North America and the UK. Currently, only about one-third of the company’s revenue is derived from Australia, but Carey is optimistic. “We know it should be two to three times what our New Zealand market is,” he said, expressing confidence in the company’s potential for growth and profitability.
Despite the promising prospects, Carey also recognized the obstacles ahead, particularly concerning international shipping costs, which have escalated by 40% in recent years. “Right now, our focus is on cracking Australia, which still represents a huge growth opportunity,” he explained, while also preparing to explore alternate distribution models for future expansions.
As part of its growth strategy, Rose & Thorne plans to diversify its product lines, especially focusing on wire-free options for larger sizes. “There’s a big demand for comfort, especially among women working from home,” Carey observed, underscoring an evident shift in consumer preferences and lifestyle changes.
With an extensive range of products and a robust online presence, Rose & Thorne positions itself well within the increasingly competitive lingerie market, emphasizing size inclusivity and customer convenience. “At the same time, we believe we already have the largest range of any Australasian-based lingerie brand in our segment,” Carey declared, marking the company’s ambition to lead in this niche market.
Source: Noah Wire Services
