Rose & Thorne closing stores to focus on online expansion

A New Zealand lingerie designer is focusing on expanding its online retail presence in Australia, driven by increasing global demand for bras catering to larger bust sizes.

Rose & Thorne has announced a strategic shift to become an online-only retailer, closing its physical store and wholesale operations.

This pivot aims to allow better service to international markets from its New Zealand operations.

Rich Carey, General Manager at Rose & Thorne, highlighted the decision-making behind the move to an online, direct-to-consumer model.

"In contrast to our domestic environment, Australia is a $1.7bn bra market and is growing at over 4% each year," he said.

The company's strategy centres around the significant demand for size inclusivity and online convenience in the Australian lingerie market. "The demand is expected to double the size of our business by 2027," Carey explained.

Carey noted the logistical difficulties associated with traditional retail models when dealing with a broad range of sizes.

"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 accommodate customer preferences for privacy and accessibility, Rose & Thorne has introduced virtual fittings and digital sizing tools.

Carey explained the approach, stating, "We are seeing significant growth opportunity in key market segments, including rural areas, and are now focused on educating the market around our range of products for those needing larger cup or back sizes and the fitting tools we have available to them such as live online fittings."

The company is well-positioned to capitalise on global trends indicating a steady increase in bust sizes among women. Rose & Thorne recently launched K-cup sized bras, extending its size curve from 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 reported, adding that substantial development had refined the products to the point where exchange rates were minimal.

Rose & Thorne's focus is initially on the Australian market, aiming to increase its current revenue share significantly before exploring opportunities in North America and the UK.

Carey commented on the company's growth potential, stating, "Australia is only making up a third of our revenue at the moment, but we know it should be two to three times what our New Zealand market is."

"If we can get the word out there, the multi-million-dollar opportunity will be significant for our locally designed label."

Notwithstanding positive outcomes, Carey acknowledged the challenges the company faces, notably in the context of rising international shipping costs that have increased by 40% over recent years.

"Right now, our focus is on cracking Australia, which still represents a huge growth opportunity, but beyond that we will look at other markets where we can enter using other distribution models," he elucidated.

As part of their expansion strategy, Rose & Thorne is also broadening its product lines, especially in wire-free bras for larger sizes.

"There's a big demand for comfort, especially among women working from home," Carey observed.

The company's focus on size inclusivity and online convenience appears well-timed in light of the increasing global demand for larger sizes. "At the same time we believe we already have the largest range of any Australasian-based lingerie brand in our segment," Carey stated.