FARM Rio: Bringing a Brazilian Fashion Brand to the World

FARM Rio, a twenty-six year old Brazilian fashion brand, had recently put down roots in the U.S. The brand, known for its bold, colorful, nature-inspired tropical prints, was testing the waters in Europe to assess if and how the brand should further expand globally. Balancing two different geographic markets was proving to be more challenging than expected and the team had needed to make changes to the brand’s name and positioning, price points, and its product quality, styles, and fits to accommodate the needs of retailers and consumers in the U.S. Before deciding on a European investment strategy, the team was assessing the return-on-investment of the U.S. launch and determining if the company had achieved a sufficient level of product-market fit so that they could adjust if necessary. They were also working to optimize the distribution channel mix among its own branded stores, e-commerce, and wholesale partnerships. With the U.S. still requiring significant investment to fuel an aggressive growth path, the company would have to decide where to place its bets: in its initial market of Brazil where it was a market leader, in the U.S., which was showing strong initial promise, or in the untested waters of Europe, home to the world’s fashion capitals. As they evaluated global expansion possibilities, the team had to coordinate with their colleagues who were busy managing the brand back at home at the company’s headquarters in Rio de Janeiro.