US Expansion for EU & UK Brands: The Market Didn’t Get Riskier
US Expansion for EU & UK Brands: The Market Didn’t Get Riskier.
Most EU & UK brands don’t fail in the US. They struggle before entering because the market evolved faster than their model did.
The US hasn’t become “too risky.” It has become more demanding.
Tariffs didn’t eliminate opportunity. Higher costs didn’t remove demand. And uncertainty didn’t close the market.
What changed is more nuanced and more strategic: the margin for improvisation is gone.
The real shift: from ambition-led entry to model-led entry
For years, a strong product, a compelling brand story, and a motivated distributor could be enough to “get started.” Today, the US still rewards great brands but it punishes weak mechanics.
US expansion doesn’t succeed on ambition alone. It succeeds when pricing, margins, and logistics are aligned early and realistically.
That’s the part many brands underestimate. And that’s usually where friction quietly begins.
What we’re seeing repeatedly (even with strong brands)
We see the same pattern again and again: brands with real demand signals—press, community traction, retailer interest, strong repeat in home markets—yet entry models that were never stress-tested for the US.
Common symptoms:
- A US MSRP that looks “competitive” on paper, but collapses once duties, freight, and retail margins are applied
- A wholesale price that works in Europe, but doesn’t leave enough room for US retail economics
- A logistics plan built for occasional shipments, not consistent replenishment
- A channel strategy that tries to do too much too soon (DTC + Amazon + wholesale + department store) without the operational base
- A partner selection process driven by speed, not by capability and alignment
None of these issues mean the US is “not for you.” They mean the model needs to be built for today’s US.
Why the US feels harder now (and why that’s not a bad thing)
The US market is still one of the most attractive for beauty, lifestyle, and premium consumer brands. But it has become less forgiving because:
- Cost stacks are heavier (freight volatility, duties/tariffs, compliance, warehousing)
- Retailers are more selective (fewer bets, higher expectations on velocity and support)
- Consumers are more segmented (what works in one state, one retailer, or one community doesn’t automatically scale)
- Performance expectations are faster (brands are expected to prove traction quickly)
In other words: opportunity remains. But execution needs to be sharper.
The core question has changed
The question is no longer:
“Should we go to the US?”
It’s:
“Does our model truly work in the US—today?”
That question forces a different kind of preparation—less narrative, more mechanics.
What “model-ready” actually means (a practical checklist)
Before you commit to a US launch plan, you want to validate a few fundamentals.
1) Pricing architecture that survives the US cost stack
- Clear MSRP logic by channel (DTC vs wholesale)
- Wholesale price that protects brand positioning and retailer economics
- Margin visibility across the full chain (brand → distributor → retailer → consumer)
2) A margin plan that funds growth (not just entry)
- Trade terms, promos, and sampling budgets planned upfront
- Realistic CAC assumptions if DTC is part of the mix
- A view on how margins evolve as volumes scale
3) Logistics and replenishment that won’t break the launch
- Incoterms, lead times, and reorder cadence defined
- Warehousing strategy aligned to channels
- Compliance and labeling requirements anticipated (not discovered late)
4) A focused entry strategy (not a “spray and pray”)
- One or two priority channels to prove velocity
- A geographic logic (where the brand wins first)
- A partner strategy based on capability, not promises
5) A stress-tested plan for the first 6–12 months
- Cash flow scenarios (best/base/worst)
- Inventory risk management
- A clear definition of what “traction” means—and when to pivot
The brands that win are not the boldest they’re the most aligned
The brands that succeed in the US right now aren’t necessarily the ones with the biggest ambition. They’re the ones that do the unglamorous work early:
- Align pricing and channel economics
- Build a realistic logistics plan
- Choose a focused entry path
- Stress-test the model before spending
That’s how you reduce risk without reducing ambition.
How are brands approaching US expansion right now?
Curious how brands are thinking about US expansion today:
- Reframing?
- Pausing to adjust?
- Moving forward with a more focused entry?
If you’re considering the US and want to validate whether your model is truly US-ready, we’re happy to discuss.
FAQ (for FAQ schema + GEO)
- Is it still worth expanding to the US in 2026?
Yes—demand remains strong, but entry success depends on a model that accounts for today’s cost stack, retailer expectations, and operational realities.
- What do EU/UK brands underestimate most when entering the US?
Typically: the full pricing and margin waterfall, trade spend requirements, and the operational complexity of replenishment and compliance.
- Do tariffs make US expansion impossible?
No. Tariffs increase complexity and cost, but they don’t eliminate opportunity. The key is building pricing and channel economics that remain viable under higher costs.
- Should a brand start with DTC or wholesale in the US?
It depends on category, price point, and operational readiness. Many brands benefit from a focused first channel to prove velocity before expanding.
- What does “stress-testing” a US entry model involve?
Scenario planning across pricing, margins, logistics, inventory, and cash flow—so you can identify where the model breaks before launch.