Why Online Brands Go Offline: Les Deux's Strategy Explained

TL;DR

Scandinavian fashion brand Les Deux achieved double-digit growth in 2025 and is considering flagship stores in New York and London. However, instead of rushing into expansion, the brand prioritizes building brand awareness first. This case reveals why online-first DTC brands are moving offline and how to approach retail expansion strategically.

Online brands opening physical stores is no longer surprising. But most brands fail by adopting a "just open and see" approach. Les Deux chose a different path.

The Scandinavian fashion brand Les Deux recorded double-digit growth in 2025 and expects to maintain this momentum through 2026. While the brand plans to open flagship stores in major cities like New York and London, it has stated that expanding brand awareness comes first (source: WWD).

This decision goes beyond "cautious expansion"—it demonstrates the strategic priorities every DTC brand must consider when entering offline retail.

Why Online Brands Are Going Offline

The reason online-first brands open physical stores is clear: physical manifestation of brand experience. Digital channels alone cannot deliver sensory experiences—touching products, trying them on, and experiencing the brand identity through physical space.

Especially in fashion and beauty categories, offline stores are not just sales channels but marketing assets that build brand credibility. This is why DTC pioneers like Warby Parker, Glossier, and Allbirds all opened physical locations.

But there's a trap. Offline expansion involves massive fixed costs, and opening stores at the wrong time in the wrong location can damage brand image rather than enhance it.

Curious about the real moves that lift conversion?

See Success Stories →

Les Deux's Choice: Awareness First, Expansion Later

Les Deux has already secured a strong position in the Scandinavian market, but the brand sees significant growth potential in North America and the UK. That's why the brand decided to prioritize brand awareness expansion over flagship store openings.

This is a highly strategic decision. Opening stores in premium locations without sufficient brand awareness leads to:

• Low ROI due to high rent versus low foot traffic

• Perception as "just an expensive store" among customers unfamiliar with the brand

• Limited synergy with online channels

Conversely, building brand awareness first transforms store openings into pilgrimage events for existing fans and "offline experiences of already-known brands" for new customers. This is why thousands lined up on opening day when Glossier launched its LA store.

Online vs Offline: How to Balance Both?

Les Deux's approach follows a phased strategy: online-first → awareness building → offline expansion. This minimizes risk while preserving brand value, especially when entering international markets.

Implications for Korean E-commerce Brands

Korean DTC brands face similar dilemmas. Starting on Naver Smart Store or Coupang, growing their own websites, and now wondering whether to open physical stores.

Les Deux's case offers clear lessons:

1. Don't Open Stores Without Brand Awareness

Offline stores are not tools to introduce your brand—they're spaces to provide experiences to customers who already know you. You should have at least 100K Instagram followers and 50K monthly website visitors before considering offline expansion.

2. Test with Popup Stores First

Rather than jumping straight to flagship stores, run 2-4 week popup stores in trendy areas like Seongsu-dong or Gangnam. Collect data on foot traffic, conversion rates, and customer reactions before committing to long-term leases—it's much safer.

3. Use Online Data for Offline Strategy

CRM solutions like Datarize help you identify which regions generate the most purchases and which products are popular. If customers in Seoul's Gangnam district account for 30% of total sales, opening a store in Gangnam makes rational sense.

4. Treat Offline as Marketing Investment

Viewing offline stores solely as "additional sales channels" leads to disappointment. Instead, approach them as brand experience providers + content production spaces + customer feedback collection points. When content shot in-store goes viral on Instagram, that itself generates marketing value.

Key Takeaways

• Offline expansion for online brands aims to build brand experiences, not just add sales channels

• Les Deux strategically prioritized brand awareness expansion over immediate flagship store openings

• Test market response with popup stores before offline expansion, and use online data to determine locations

• Treat offline stores as marketing assets, not sales channels, to measure ROI from multiple angles

• Reckless expansion without sufficient brand awareness leads to fixed cost burdens and brand image damage

Optimize Conversion — Start Free

Datarize's Conversion Probability Scoring executes the right strategy for every customer, automatically.

Start Free

FAQ

Q1. When is the right time for DTC brands to open offline stores?
The right time is when you have at least 50K monthly website visitors, 100K+ social media followers, and concentrated brand awareness in specific regions. Analyze customer data to identify areas with high repeat purchase rates, then start with popup stores in those locations. Most importantly, you must have financial capacity to cover fixed costs (rent, labor, interior) for at least 6 months.

Q2. What's the difference between popup stores and flagship stores?
Popup stores are temporary retail spaces operating for 2 weeks to 3 months, primarily for market testing and brand experience delivery. Flagship stores are long-term operations that fully embody brand identity, located in premium areas and serving as brand "landmarks." Popups have lower initial investment and flexible strategy adjustment, while flagships offer long-term brand asset building despite higher investment.

Q3. How can online data inform offline store strategy?
CRM data analysis reveals customer geographic distribution, product preferences, and purchase patterns. For example, if customers in Seoul's Seongdong district account for 25% of sales with high repurchase rates, opening a store in Seongsu-dong makes sense. Datarize's Acquisition Dashboard visualizes regional and product-level customer data, enabling data-driven decisions for location selection, in-store product assortment, and targeted promotions.

Q4. How should offline store ROI be measured?
Offline store ROI cannot be measured by direct sales alone. Consider brand awareness increases (social mentions, search volume), content production effects (engagement from store-shot content), customer feedback collection (product improvement insights), and online conversion increases (online purchases after store visits). Notably, store-visiting customers have 30-50% higher LTV (lifetime value) than online-only customers, requiring long-term ROI evaluation.

Q5. What should Korean DTC brands watch out for during offline expansion?
Korean markets have very high rent, and trendy hotspots face intense competition. Rather than insisting on premium locations, use data to identify where your target customers actually gather. Design offline stores as "brand experience spaces" rather than "sales channels," and maximize online-offline synergy by linking with social content production. Finally, test with popup stores 2-3 times before committing to long-term leases to minimize risk.

Expanding from online to offline is a natural progression for brands. But like Les Deux, building brand awareness first and timing strategic moves with data is the key to success.

If you're considering offline expansion, start by deeply examining your online customer data. Discover more DTC brand growth strategies at Datarize Blog.