Travel luggage group Strandbags is gearing up for a big year, with the business’ bag brands set to launch internationally next year. Group chief executive Felicity McGahan told Inside Retail that Strandbags has been working on getting its brands into the UK, Europe and the United States by utilising the supply chain and distribution channels of international brand Antler, which Strandbags took over last year. “We’ve got the team in place [in the UK] now, and we’ve got the capability, so
y, so now we’re just getting our products ready for [other markets] and pivoting our supply chain,” McGahan said.
“It’s so exciting as an Australian business to have global aspirations – it’s fun. People are ready to travel again.”
McGahan’s expansion plan follows a broader reshuffle of the overall business following Strandbags’ rebrand in 2019, the launch of leather goods brand Evity in May and luggage brand Nere last week.
Moving forward, Strandbags’ brands will continue to focus on function, though style and fashion will play a larger role in product development, said McGahan, with the aim of creating luggage that people want to take on holiday, not just to the airport.
“We’ve been really looking at our business, which is strong commercially, and layering on reasons for our brands to exist,” McGahan said.
“Flylite was our travel brand, and it was all about getting you to the airport, and then through the airport process. Travel is now very much a lifestyle [purchase], and post-Covid, we really want to make sure our luggage is not only functional, but also fashionable.
“Nere is colourful. The brand has been available since last Thursday, and the best sellers have been pinks and lilacs. People want to express themselves and have a bit of fun.”
According to McGahan the brand has already turned over more than $1 million in sales. The brand launched with several styles and colours available, and will see new ‘seasonal’ drops every six months, similar to the release schedule of the fashion industry.
“People put so much effort into their outfit and their handbags when they travel, why not finish it off with your luggage?”
Expanding markets, customers, stores
With the launch of Evity and Nere, Strandbags will now be focusing on a different market for the business: younger travellers.
In the months leading up to its wider international expansion, Strandbags will put time and effort into its youth-focused Marakai brand in an effort to reach the 15 to 25 year old audience.
“As we evolve the business, we age with our customer, and now that we’re a house of brands, we can have brands that service different customers,” McGahan said.
“So we’re really focusing on making a great brand for [younger shoppers]. They want to go online and shop, and tend to want things quickly – they go shopping on Friday for the outfit they’ll wear on the weekend – so that’s something we’re working on [for Marakai].”
Strandbags will also launch a new flagship store in Highpoint Shopping Centre, Melbourne, which will sit at around 400 square metres. It will be the business’ largest store.
Between a new store, new markets, and new customers, McGahan admits Strandbags is trying to do a lot at once, but said the business was tested by Covid-19 and came out strong.
“Covid-19 really allowed us to pause and think about what we wanted to be, and allowed us to focus on the strategy and the vision,” McGahan said.
“We invested in the right areas, and we know we have to go international – we have over 300 stores across Australia and New Zealand, but there [isn’t room for] 400 stores here.”
“People are ready to travel”
While the last few years have been disastrous for the travel industry, and is now facing difficulties due to airline staffing, McGahan believes there is a pent up demand for travel – and that the overall reignition of travel will last over the next several years.
“I think it’s going to peak for the next three years,” McGahan said.
“It’s expensive, but I think people are savvy. They’ll travel out-of-season, and find the right flights, and avoid the routes that are congested. People are resourceful.
“We had a customer last week who came in to buy luggage, and I asked her where she was going. She said, ‘I don’t know, but I’m going somewhere’. I thought that was great, and shows that people are ready to travel again.”