Club L’s founder on the importance of a secure identity in global expansion
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Business |Interview
Since its launch in 2018, Club L London has had to face an unlikely plethora of challenges in its pursuit of market share. Yet, its recent expansions, both in team and geographically, paint a different picture. And yes, while indeed challenged, the online fashion retailer has continued to grow in the backdrop of it all.
What started out as a wholesale partner specialised in occasionwear for businesses such as Asos, Topshop and Zalando, has now become a standalone, self-funded DTC name, offering a wider span of categories and a firm sense of identity. “It’s been a rollercoaster of a journey through an ever-changing landscape,” founder Katie Randev told FashionUnited in an interview. “While the business may have transformed considerably in that time –all for the better–, we’ve kept our core values the same throughout; giving our customers exceptional quality, unique designs and unrivalled fit.”
Randev herself, having grown up in the retail business, had already materialised extensive knowledge of supply chain management and business development, and thus, Club L was born with a “drive to provide accessible luxury to all”. “Accessible luxury must strike a balance and while consumer spending may be more considered, we know ‘our girl’ [the customer] loves amazing designs and good quality pieces she can reinvent time and time again,” Randev elaborated.
Second modest collection launch and an informed entry into UAE
Beyond occasionwear and going out dresses, the retailer has now also launched into maternity, am-to-pm, tailoring, separates, swimwear, resort wear, accessories and modest, the latter being a one Randev has continued to expand on as her and her team learn more about the category. The second drop, and most recent addition to the line, came mid-June, in the form of the ‘Visionary’ collection, which catered to an “all-inclusive modest customer” through loose-fit kaftans, capes and modest midi and maxi dresses.
“Our first modest-focused collection was launched only after thorough self-education on UAE markets, coupled with a relentless commitment to refining and enhancing collections to meet the needs of current and future Club L consumers,” Randev elaborated, citing “luxurious fabrics and impeccable craftsmanship” as key to the line’s success. “It is in our nature to challenge ourselves and exceed expectations. The collection resonated particularly well in UAE, where there’s a growing demand for modest fashion that caters to both style and cultural values.”
With this in mind, the second collection coincided with the launch of a UAE website, adding to Club L’s seven existing international sites, including for the UK, Ireland, France, the US and Canada. “From the launch of our DTC business, we quickly noticed an organic international demand which was growing rapidly particularly in UAE and other territories,” Randev said, later adding that the team was planning to take key learnings across the Middle Eastern region to inform design and production creation. “Whilst we noticed trends in specific territories, we realised that our product had global appeal, and we made the decision to invest into our tech and operations to ensure we were serving our international girl with the same experience and attention to detail.”
New headquarters, distribution centre and employees reflect strong performance
Randev’s awareness of the market has fed into Club L’s success and, despite challenges faced –from the pandemic to supply chain setbacks– she said the company had held itself and “stayed true to our core DNA and values to ensure we are truly delivering value”. Such efforts are reflected in not only the expansion of Club L’s employee base, which Randev said has nearly doubled in just two years –with the notable addition of a new chief financial officer revealed last week to be Richard Wing– but also in the company’s financial results.
For the year ended January 31, 2023, the most recently published financial period, the company reported that its turnover jumped from 15.7 million pounds in the year prior to 29.5 million pounds. While gross profit came to 17.7 million pounds, representing a 101 percent increase YoY, operating profit rose 42 percent to 4.8 million pounds. Geographically, both domestic and international markets also welcomed a strong growth in sales, collectively exceeding a 110 percent uptick YoY.
For FY24, Club L’s performance is only expected to remain positive, with directors anticipating an increase in revenue, orders and customer numbers “despite the impact the ongoing cost of living crisis has on customers and upon the group”. Such results had encouraged the company to move forward with plans of opening a new distribution centre and a headquarters in Manchester. Speaking on both projects, Randev said that the headquarters were “designed to foster creativity and collaboration, while on the distribution and production front, we successfully scaled up to meet demand”.
She continued: “While challenges naturally arise during such rapid growth, we’ve maintained a steady focus on quality and efficiency and the same goes for the way we select which partners we work with. It’s a meticulous process whereby we prioritise those who share our values of premium quality product and women empowerment.”
Now, Club L and Randev hope to maintain this growth, eyeing new international regions where the brand can continue its streak of securing a more global presence. “While we can’t reveal details at the moment, the second half of 2024 holds exciting prospects for both the retail market and Club L London as a whole, so stay tuned,” Randev concluded.