Based on ten years of experience, we have understood that a brand must average at least €40 million in revenue if its primary market is Europe, and $43 million if the primary market is the United States, to consider expanding into new markets. Our clients are predominantly European fashion brands with Europe as their first market, typically generating between €40 million and €170 million when they come to us. These brands usually think about expanding into other markets such as Asia, China, or North America before considering the Middle East.

Fashion brands seeking expansion and achieving these revenue thresholds are at various stages of their growth. A brand generating between €40 million and €60 million is usually at the peak of wholesale expansion. In contrast, brands earning between €60 million and €170 million are often in the franchise expansion phase. Once a brand approaches €160 million in revenue, it should start moving towards opening direct monobrand stores. This often involves acquiring franchise rights, which typically have a standard duration of 10 years. At the end of this period, a franchisee has two options: resell the retail outlet to the brand owner or transfer the franchise to another franchisee.