Eddie Bauer grows global sales with multi-channel strategy

When it comes to multi-channel retailing, Eddie Bauer Inc. has found that what works in the U.S. works overseas, where it’s growing international sales in multi-channel joint ventures. But it has also learned to tailor apparel products to local demand in foreign markets, Mark Staudinger, vice president of international and technology solutions, tells Internet Retailer.

Although Eddie Bauer also ships to international customers through its U.S.-based EddieBauer.com, it has not paid much attention to building that site up for international sales. Instead, its foreign-market strategy is focused on two joint ventures it has set up in Germany and Japan, respectively EddieBauer.de and EddieBauer.com.je. “Right off the bat, this model was focused on being a multi-channel retailer,” Staudinger says.

The retailer kicked off its foreign sites a decade ago in partnerships with German retailers Otto Versand and Heinrich Heine, and, in Japan, with Otto-Sumisho Group (itself a joint venture of Otto GmbH and Sumitomo Corp.).

The joint ventures developed a tri-channel approach to retailing, with stores, catalogs and web sites, all operated under the Eddie Bauer brand. While its partners in Germany and Japan operate the retail channels, Eddie Bauer controls its brands and merchandising strategies from Seattle. It also operates a sourcing and distribution center in Hong Kong, which supports both its U.S. and foreign operations, Staudinger says.

The joint ventures give Eddie Bauer insight into how to serve the German and Japanese markets that it otherwise wouldn’t have, such as knowing that Germans tend to return products frequently or that Japanese consumers needed a separate set of apparel sizes, Staudinger says.

It also learned to develop and ship more dresses for Germany and more dress casual lines for Japan. “These are examples that led to good sales and conversion rates,” Staudinger says. “We have found that just to take what we do in the U.S. may not work in foreign markets. The key is to address localized needs, but to come across with a consistent brand appearance.”

As it considers serving other foreign markets, Eddie Bauer may replicate its joint venture approach if it feels the market is strong enough to support a major tri-channel presence. Meantime, it will also consider adding features to EddieBauer.com, like currency and language conversion, to support international sales. “We see a huge opportunity to improve on how we serve international customers,” Staudinger says.

Eddie Bauer, a unit of Spiegel Inc., plans to emerge as a new company, Eddie Bauer Inc., this spring as part of Spiegel’s bankruptcy proceedings.