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Globally Expanding Fashion Brands

Scotch & Soda Announces Expansion Including Tmall Partnership

— November 9, 2021 — Business
Amsterdam-based lifestyle apparel brand Scotch & Soda has announced that it will be expanding its reach as part of a renewed growth strategy, which will see the company open 15 new physical store locations and seven new "shop-in-shops" by the end of the year.

The new stores will be launched in major metropolitan cities worldwide, such as Madrid, Paris, Mumbai, Philadelphia, Charlotte, Gothenburg, Dortmund, Bucharest, Stuttgart, and Perth. In addition, Scotch & Soda will be launching its first digital store on Tmall Global, China's popular e-commerce platform. According to Frederick Lukoff, CEO of Scotch & Soda, "entering key markets such as China" is essential to their growth strategy, which is why the brand was ready to embrace Tmall's unique retail structure. In Paris, the company will be opening a 127-square-meter store in the city's iconic Saint Germain neighborhood, marking the brand's fifth store opening within the French capital.

However, what makes this expansion particularly unique is that the brand is launching its first-ever digital-only store to reach the Chinese market. T-mall is an e-commerce platform that has exploded in popularity in China in the last few years, yet few Western brands have taken advantage of its massive reach and highly-interactive features. In addition, the brand has joined popular Chinese social media sites, including Weibo, Little Red Book, WeChat, and Douyin. Scotch & Soda has recognized the opportunity Tmall presents to engage Chinese shoppers in new and exciting ways and has even opted to cross-promote across various Chinese-owned social media channels.

Image Credit: Shutterstock, Scotch & Soda
Trend Themes
1. Global Expansion of Fashion Brands - Opportunity for lifestyle apparel brands to expand their reach by exploring new markets and through online platforms such as Tmall Global.
2. Digital-only Stores for International Markets - Disruptive innovation opportunity for brands to reach consumers in new markets by creating digital-only stores, like Scotch & Soda's foray into China via Tmall Global.
3. Cross-promotion on Chinese-owned Social Media Sites - Brands can take advantage of the massive reach and highly interactive features of Chinese social media platforms like Weibo, Little Red Book, WeChat, and Douyin to promote their products and engage with Chinese consumers.
Industry Implications
1. Fashion and Apparel - Increased globalization and use of online platforms like Tmall Global can enable apparel brands to reach new markets and grow their customer base rapidly.
2. E-commerce - The use of e-commerce platforms like Tmall Global and social media platforms such as Weibo, Little Red Book, WeChat, and Douyin opens up new market opportunities for brands to reach customers globally.
3. Digital Marketing - The use of cross-promotion on Chinese-owned social media platforms like Weibo, Little Red Book, WeChat, and Douyin allows brands to create new and highly engaging marketing campaigns to promote their products and services.
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