"Ninety-five percent of Loftie's sales were from U.S. customers, but the company was stuck paying tariffs of up to 180% to bring in products from China. That number could change in November, when a trade truce is set to expire - and if costs go up even more, Loftie won't have the funds to ship to the U.S. for the holidays."
"So, Hassett and his team made a new plan: to bump up the company's international business. In the last few months, Loftie has increased marketing abroad, especially in Europe. It's creating a website for Japan, translating its ads into multiple languages and offering shipping to new markets "week by week," including Singapore, Hong Kong and Australia, Hassett said. The tactic is paying off: In August, 33% of Loftie's orders were from international markets, up from 5% just 60 days earlier."
Loftie faced severe U.S. concentration with 95% of sales domestically while paying tariffs up to 180% on goods from China, threatening holiday shipments if trade terms worsen. A potential move to Thailand proved more expensive than China, prompting a pivot to international growth through increased marketing in Europe, a Japan website, translated ads and phased shipping to Singapore, Hong Kong and Australia. International orders rose from 5% to 33% in two months, returning Loftie to profitability since January. Other U.S.-focused brands are similarly reallocating resources overseas as tariffs and rapidly changing goods costs complicate profitability and expansion planning.
Read at Digiday
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