It might be the right time to expand stateside. Luke Jonas of Nest Commerce explains the perks, pitfalls, and process of branching out in the US.
With the UK’s growth prospects distinctly underwhelming, scaling internationally looks more like a necessity to de-risk. For those ready to take the plunge into unchartered waters, swimming westward makes sense. The US is a massive English-speaking market with a powerful economy, increasingly diverging from the performance of Europe. As such, it offers immense potential for challenger brands.
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Land of opportunity
There are several good reasons why America could be the land of opportunity for British brands in 2025. Firstly, the US economy continues to power ahead of the UK and Europe, with a growth projection of 2.8%, significantly higher than the UK’s at 1.1%, according to the IMF. Nest Commerce’s recent Black Friday Cyber Monday (BFCM) analysis revealed a staggering 140% increase in US ad spend compared to 16% in the UK, highlighting the market’s standout performance during this key sales period.
When it comes to advertising costs, according to research from our client base, US cost-per-thousands impressions (CPMs) on Meta are 2.25 times higher than the UK equivalent, but American consumers spend a lot more – with 1.49 times the average basket size and higher return value over their lifetime.
It’s never been easier for UK brands to build a presence in the US. The internet has drastically lowered the barriers to entry, making scaling in the US affordable and achievable. Added to this, efficient shipping networks ensure consumers can purchase products, without a brand having boots on the ground. The expensive and time-consuming days of setting up multiple physical stores in new markets are long gone.
The elephant in the room is Donald Trump’s entry into the White House. Some brands may feel cautious due to potential tariffs, but Trump is known for using these as a negotiating tactic.
Reassurance has come from his pick for Treasury Secretary, Scott Bessent, a seasoned investor whose appointment calmed markets. Trump has also promised significant tax cuts and deregulation, aiming to boost economic growth and strengthen the US dollar.
A stronger dollar could reduce export costs for brands selling to the US, creating an opportunity for UK companies. With these factors aligning, now might be a perfect time for UK brands to expand across the Atlantic.
Making the move
There are four key areas brands and businesses should focus on in cracking America.
Firstly, it’s crucial to act at the right time. Many brands with global shipping might see early signals of US interest in their products – for example, website traffic, email sign-ups, and social media follows. While these are promising, they’re often insufficient for a full-scale US launch.
Expanding internationally is less cost-effective initially. So, a brand should have a solid product-market fit at home, along with evidence of slowing growth, before considering a move into the US.
Next, it’s important to adjust brand strategy to meet the needs of US customers. Those considering making the leap need conduct a thorough competitive analysis of how their brand’s product range and proposition meet the US customer’s needs.
Organic signals can demonstrate traction across the product range, but be prepared for surprises and lean into data signals to uncover new customer insights. Nadine Merabi was surprised that the brand was known for its bridal wear in the US; in Europe, this is marketed as its “white resort range”. Meanwhile, ASOS’s US launch was spearheaded by the brand’s maternity products getting significant pick-up from US influencers.
Thirdly, a full-funnel approach is crucial in a new market. Even if a brand performs strongly in the UK, it’s important to invest in digital brand building as well as immediate sales – known as full-funnel performance – within the USA, to attain reasonable customer acquisition costs and sustain growth.
Leveraging digital channels also reduces up-front investment costs and provides real-time insights into brand performance in each region. Equestrian brand LeMieux provides a great example. After realizing its demand-capture strategy wasn’t scaling stateside, the brand shifted to a broader approach focusing on upper-funnel channels, such as Meta and YouTube, to introduce the brand and product selection.
The new strategy achieved 38% year-on-year (YoY) growth, driven by 32% YoY growth in new customer acquisition and 56% YoY growth in existing customer orders.
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Defendable beachhead
Lastly, it’s important to find a ‘defendable beachhead’. Brands should find a starting point from which to tackle the USA through geography, platform, or interest groups. They should then plan realistically based on available investment and roll out gradually, city by city or range by range, until hitting scale.
Success often hinges on a concentrated regional focus. Luxury fashion brand ME+EM was able to tap into particular demand from US shoppers in areas like New York and Boston to open stores and further boost their presence.
With a sluggish outlook at home, the US offers a vast market for UK brands seeking growth beyond their borders. The key lies in timing, adaptation, and strategic execution. For those ready to embrace the opportunity, the time to act is now – before competitors seize the chance instead.