Step One: Create underwear. Step Two: Sell it overseas...or at least try.
Background: Step One is an Aussie underwear company that launched in 2017. They make undies that promise no chafing or riding up your legs.
What happened: In September last year, Step One IPO’d at a valuation of $284 million. It was all part of their plan to take this Aussie brand global. But now, it's valuation is down to $188m.
What else: Step One have just announced some major setbacks. Firstly, there is trouble in supply chain paradise. And secondly, their growth in overseas markets (UK & US) has been slower than anticipated.
💡Embarking on international expansion can come with enormous business opportunities, but it can also bring on enormous risk.
💡 There are supply chain risks because you're now shipping to many countries instead of just one. There are also competitive risks because you're entering a new market with existing players.
💡 While Step One’s low-budget marketing strategy worked effectively in Australia, we can see that they’ve already changed their marketing strategy for the UK & US by bringing on rugby union players and NBA players to accelerate their growth.
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