Tag: 2XU

  • Iconic Australian Athletic Brand 2XU Partners with Pattern for International Repositioning

    Iconic Australian Athletic Brand 2XU Partners with Pattern for International Repositioning

    Leading global ecommerce and marketplace accelerator, Pattern, today announced it has supported iconic Australian athletic wear brand 2XU to pivot its international business, solidifying its position as a leading specialist technical athletic brand in key markets, including North America. This strategic partnership has enabled 2XU to achieve an 80% full-price sales rate and increase its average selling price by 25% to $200.

    With pre-existing operations in North America through wholesale, D2C, and Amazon channels, 2XU identified the need to reimagine its sales strategy to regain control of its brand and product positioning. The shift was motivated by recognising that the brand’s complex distribution model and the practice of uploading a wide range of seasonal end-of-life products to Amazon had diluted the brand’s premium image.

    Marc Boelen, CEO at 2XU, explained, “The international sportswear market is very crowded and highly competitive. As a premium technical brand, we needed to take control and differentiate ourselves. This meant simplifying our distribution to focus on our unique selling point (USP) as a technical compression and triathlon brand, which 2XU is well known for and consumers are willing to pay a premium for. Our data further supported this, showing that content from 2XU’s athletes and ambassadors focused on the technical benefits of our range outperformed other products and content in the US.”

    Previously, 2XU’s distribution model into markets like North America included multiple channels, creating inconsistencies in pricing and brand perception. The strategy of uploading a wide range of end-of-life products exclusively to Amazon was intended to reduce channel conflicts and maintain stock keeping unit (SKU) continuity. However, this strategy negatively impacted 2XU’s brand perception

    The decision to overhaul 2XU’s Amazon strategy was driven by the fact that in 2024, over half (56%) of US consumers start their product search on Amazon, rather than other search platforms like Google. This meant that for many US consumers, their first encounter with 2XU would be through Amazon, making this channel crucial in shaping their perceptions of the brand.

    “Moving from a multi-channel distribution model to a direct-to-consumer (DTC) model is a major strategic change. As a brand, we saw a critical need to build out our international DTC business, even if it meant accepting a short-term impact on sales, to achieve long-term control over pricing and positioning,” said Lindsay Swaik, VP of Digital, 2XU. “Given Amazon’s dominance among US consumers, we felt it was necessary to showcase leading content and a smaller range of our best-selling premium products on Amazon as a first brand impression. This was crucial in enhancing our brand story and positioning us as the leading technical performance brand and the world leader in compression.”

    As the number one global seller on Amazon, Pattern leveraged its expertise to drive 2XU’s transition from a 1P to a 3P account on Amazon, delivering the brand greater control over its product listings and customer perception. Pattern and 2XU closely collaborated to design A+ content aligning with brand guidelines, manage in-platform marketing strategies, and control stock replenishment and pricing strategies to maximise sales and meet key benchmarks. Additionally, Amazon’s delivery speed provided a benefit that 2XU’s own supply chain could not match.

    “2XU had to transform its strategy to target a new customer base willing to pay full price for high-quality technical products. This shift was essential to drive profitable growth and achieve the brand’s business goals in international markets like the US,” said Merline McGregor, Managing Director of Pattern Australia. “The results have been remarkable, with 2XU now achieving an impressive 80% full-price sales rate. This transition underscores the brand’s commitment to premium quality and demonstrates the effectiveness of a well-executed ecommerce strategy.”

    In recent years, run clubs have taken off worldwide, largely driven by the rising cost-of-living and the affordability of running as a way to stay fit and socialise. 2XU recognises that this trend aligns well with its brand, as more runners seek technical and scientifically proven apparel to best support their fitness goals. Over the past year, this has helped 2XU differentiate itself as a premium technical brand, avoiding competition with the crowded athleisure wear market and opening up new customer opportunities.

    “Moving to a premium pricing model required a leap of faith, but it has paid off,” said Boelen. “We now operate as a premium, full-price brand with healthy margins and the ability to reinvest in acquiring new customers. Our growth over the past two years across Amazon and ecommerce has exceeded 25%, and we continue to see strong performance on both fronts.”

    Switching to a DTC approach and taking full control on Amazon has streamlined 2XU’s brand identity by eliminating inconsistencies from wholesalers and mitigating risks from unauthorised resellers on the platform.

    Pattern has also been able to scale up to support 2XU’s ecommerce channel when necessary, assisting with paid social, paid search, and email marketing. Additionally, Pattern manages 2XU’s DTC operations across the Australian and UK markets. This comprehensive partnership has been vital in driving the brand’s growth globally.

    About Pattern Inc

    Pattern is the category leader in global ecommerce and marketplace acceleration. Since 2013, Pattern has profitably grown to more than 1,400 employees operating from 24 global locations – including Melbourne, Sydney and the Gold Coast – to help leading brands achieve accelerated growth on D2C websites and global ecommerce marketplaces. As well as being one of the largest Amazon sellers in the world, we are also present on Tmall, JD.com, eBay and other ecommerce marketplaces. We act as the authorised Amazon seller to more than 200 brands globally, buying their stock to sell on the marketplace and taking care of every aspect of their Amazon presence. For more information, visit https://au.pattern.com/

  • L Catterton Asia to form JV sportswear

    L Catterton Asia to form JV sportswear

    LVMH-backed private-equity firm L Catterton Asia has launched a JV between two of its portfolio companies, Chinese menswear fashion group GXG, and Australian compression activewear company 2XU.

    The strategic partnership will enable both companies to capitalise on the growing fitness and sportswear market in China.

    Established in 2007, GXG has a portfolio of four brands – GXG, gxg.jeans, gxg.kids and Yatlas. Its lines are available in more than 2100 stores across China, as well as online through third-party platforms such as Tmall and VIPshop. Its e-commerce GMV is expected to surpass RMB2.5 billion (US$378.5 million) this year, an increase of more than 50 per cent over last year. The company also achieved record sales of RMB485 million in this year’s Tmall 11.11 shopping festival.

    Since acquiring a controlling stake in GXG last year, L Catterton Asia has been working with the company’s management team to expand into new categories. It has supported GXG by offering extra collaboration opportunities and helping with global expansion.

    “GXG and 2XU are led by seasoned management teams with deep understanding and complementary knowledge of the fashion and retail industries, and we look forward to continuing to work alongside and support both teams,” says L Catterton Asia chairman/managing partner Ravi Thakran.

    Founded in 2005, 2XU produces technical athletic wear that is endorsed by elite athletes internationally.

    “Since L Catterton Asia’s investment in 2013, 2XU has experienced significant growth and I am grateful for their partnership as we continue to expand into attractive markets around the world,” says 2XU CEO Paul Higgins.

    With more than $14 billion of equity capital across six fund strategies in 17 offices globally, L Catterton has a team of more than 140 investment and management professionals. L Catterton Asia (previously L Capital Asia) was launched in 2009 and manages more than $ 1.6 billion across two private equity funds, and more than $2 billion including co-investments. It has offices in Singapore and Mauritius, with a regional advisory presence in Hong Kong, Mumbai and Shanghai.

    L Catterton Asia draws on its strategic relationship with Groupe Arnault and LVMH across the investment process. Its investments include Jorya Group, Marubi, Pepe Jeans, Sasseur, Trendy International and YG Entertainment.

  • 2XU launches first flagship store in Hong Kong

    2XU launches first flagship store in Hong Kong

    Australian sportswear brand 2XU has opened a Hong Kong flagship store this month, located in the prestigious Causeway Bay shopping district.

    Situated in the heart of Causeway Bay, at 77 Leighton Road, the new 930 square foot store is the official Hong Kong flagship and is the first standalone store for the high-performance sports apparel brand in the city. 2XU successfully debuted a Hong Kong e-commerce platform at the end of 2015.

    Melbourne-born, 2XU specialises in technical fabrics, particularly compression wear. Its products are used by top athletes in Australia and internationally (it is distributed in fifty markets) and has been worn by basketball players in the NBA and NFL football leagues in the United States.

    It boasted an annual 40 per cent increase in sales over the past five years, and has grown EBITDA at around 25 per cent per annum for same period.

    In December 2013, L Capital Asia acquired a 40 per cent share of 2XU. In 2015, there was talk of L Capital Asia mulling a public float in either in Australia or New York that could value the business at more than $600 million.

    2XU was founded in 2005 by Clyde Davenport, James Hunt and Aidan Clarke. The founders still hold a 42 per cent share, while Lazard Australian Private Equity holding an 18 per cent stake.

  • H&M collaborates with Caitlyn Jenner for its newest athleisure range

    H&M collaborates with Caitlyn Jenner for its newest athleisure range

    A new H&M athleisure wear range is to be launched in July, developed with input from the Swedish Olympic team and fronted by personalities including Caitlyn Jenner.

    The launch of For Every Victory makes H&M one of the first major multinational fashion brands to make a serious foray into the booming athleisure wear market, to date dominated by fast-growing specialist brands including Lululemon, UnderArmour and 2XU.

    H&M -For Every Victory

    H&M For Every Victory – described by the H&M as “high fashion performance sportswear made to inspire” has been developed with input from the Swedish Olympic team, and the campaign is fronted by inspirational personalities who have all achieved their own victories, whether in sport or life.

    H&M -For Every Victory 1

    The athletes advised on design, performance and wearability. H&M also designed outfits for the Swedish Olympic and Paralympic team for Rio 2016, including the opening ceremony uniform, selected competition pieces and the prize ceremony outfits.

    “This is a collection about performance with great style and the input of the Swedish Olympic team has been invaluable in the creation process,” said Pernilla Wohlfahrt, design and creative director at H&M. “The result is high fashion technical sports pieces for everyone to wear.”

    The For Every Victory collection has a similar visual expression and technical knowledge to the Swedish Olympic team collection, with its own colour palette in black, grey, dusty pink and gold. It is centered on performance T-shirts, running shorts and leggings, as well as sports bras for women.

    H&M -For Every Victory 3

    The quick-drying, breathable materials help to optimise performance and recycled polyesters prove that high-function sportswear can also be conscious and more sustainable − all showing that there’s no compromise on either fashion or performance.

    H&M -Olympic collection

    Among the personalities fronting the new range are Caitlyn Jenner with her Olympic gold medal in the decathlon; Chelsea Werner, a gymnast who has never let Down Syndrome halt her progress; surfer Mike Coots who still takes to his board even though he lost his leg in a shark attack and boxer Namibia Flores who has fought against prejudice to pursue her dreams.

    The new range and brand will be launched globally on July 21.