Why Did They Start The Territorial Expansion Of Their Business

The companies tell us what led them to open their second business unit and how they did it. When it is mostly known that what aspects you should evaluate before starting your territorial expansion?

Now we tell you about the experience of some companies and the path they followed to open their second business unit.

Brava Fabrics: Socially responsible urban clothing fashion. They are a company designing and selling sustainable urban fashion and inclusive in the sense that they make sure everything they do is easily understandable and manageable.

The firm was born in March 2015 in a small office in Barcelona, producing offline and distributing through its e-commerce. Throughout the first year, they had very good metrics and they made ourselves known through the impacts and leads they generated in the different digital channels.

In a few months, they had to find a new location because customers came to buy directly from their office. Queues were generated in the elevator to buy their products, which users had seen online. They never intended to sell there directly, but the market itself was the one that forced them to do it.

This led them to adopt a small showroom in the neighborhood, where they had products and sold them. It was organic and natural. At that time, they sold their e-commerce and they nurtured it through advertising.

The original idea of Brava Fabrics was to be e-commerce. Because of their training, they analyzed everything from a market and business perspective. Moreover, the numbers that their analysis showed at that time was that e-commerce was growing in double digits, which in the United States was a very strong channel.

As to be a unique channel and that the costs of Facebook were perfectly assumable, that was the reality of the year 2014, when they started to think up Brava.

The two market factors, in addition to people organic demand for their products, led the founders of Brava Fabrics to open a first physical store, in January 2016. And a year later they opened a second store in the neighborhood of Sant Antoni.

Miller & MarcMiller & Marc: Signature of prescription and sunglasses. It is a company with a prescription and sunglasses. The first and most useful thing to open their second store in the neighborhood of Barcelona has been the postal codes of their online customers.

The same thing they did when they opened their first store in Madrid. They look at the postal codes of their online sales, which were the channel we were born with, which has been our main indicator.

The second important variable that Miller & Marc has taken into account to start its expansion has been a mix between the population of the area and its target audience.

It is not the same to go to a town where fashion style does not marry your product to the contrary. From there, they not only look at populations but in specific streets. They explore which type of street is the one that they think will fit and better outperform the business, especially at the beginning.

Since startups are always difficult because that’s when you need more oxygen and more sales.