Pattern Supports 2XU to Transform Brand Perception,Boosting Average Selling Price by 25%

MELBOURNE,Australia,Aug. 27,2024 --Leading global ecommerce and marketplace accelerator,Pattern,today announced it has supported iconic Australian athletic wear brand2XU 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.

2XU in action

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.

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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/