Latest / Talk Commerce / Scaling International Brands in the US Market with Bashak Ilhan
Transcript
- Brent Peterson (00:01.154) Welcome to this episode of Talk Commerce that I have Basak Ilhan. She is the founder and CEO of Road Group Basak. Go ahead, do an introduction for yourself. Do a much better job than I did. Tell us your day-to-day role and one of your passions in life. Bashak Ilhan (00:15.855) Hi, thank you for having me branch. So I always start saying that I'm an entrepreneur. I built a couple of different companies and I had a chance to do exit two. So I am the founder and CEO of Road Group. We work with international fashion and lifestyle brands from mostly from Europe and helped them do in the US market. And my daily job is just, you know. meet new brands from the overseas and help them grow in US market, placing them on the big department stores like Nordstrom, Bloomingdale's and Macy's. And operation. Brent Peterson (00:51.638) Awesome. passion, what do you have passions outside of doing that? Bashak Ilhan (00:56.315) global business I guess. So I don't think we need to stay in the same country or the same city. We can do international businesses. That's my passion. Brent Peterson (01:10.072) That's awesome. Thank you. So, Bashak, before we get started, you have volunteered to be part of the Free Joke Project. I'm just going to tell you a joke. You just gave me rating 8 through 13. So here we go. Three golf clubs walk into a bar. The butter, the putter says orders. OK, I'll start over again. Sorry. All right. Yeah, yeah. All right. Here we go. Three golf clubs walk into a bar. The putter orders a beer. The wedge orders a tequila. The third one says nothing for me. I'm the driver. Bashak Ilhan (01:19.182) Okay. Bashak Ilhan (01:27.323) That's mine now! Bashak Ilhan (01:44.347) third one says that? Seven. Brent Peterson (01:46.102) Yeah. Okay. Yeah. See, see there's a driver and, the, Yeah. Okay. All right. Sorry. No, no, it was good. I, I ruined the delivery too. So yeah. all right. So, let's, let's dive into, let's kind of dive into what you're doing. You said you've exited once already. So kind of give us an, your background and how you got started. Bashak Ilhan (01:50.363) I didn't get the joke. Bashak Ilhan (01:54.648) Yeah, the two. Okay. Sorry about that. That's the reason that the American ones are sometimes tough for me. No worries. Brent Peterson (02:15.853) what you're doing. Bashak Ilhan (02:17.315) yeah, I'm a digital strategist. I went to university in London a long time ago. It was part of the software development school and I learned how to do all of e-commerce. But at that time there wasn't any social media, so everything changed. I think I went to university to learn some basics, but just my work. and my startups are my real school, real MBA. And what I do is if you have an idea, if you have a product, I can help you build a brand, online brand, and create a strategic to sell in different platforms, and I can help you how to operate and grow globally. Brent Peterson (03:08.02) Great. what would, so that's what you're doing now, right? And how, sure. how, yeah, awesome. So tell us some of the motivations on how you got into what you're doing. Bashak Ilhan (03:11.899) Yes, I have been doing this for 25 years. Bashak Ilhan (03:23.035) I mean business is always my playing area I guess. I always had an idea when I was a kid too and I learned in really early age how to build a brand. So whatever I want to do, sales is kind of my thing and I would love to sell stuff. I always been like that and if I had an idea and I don't know how but I know the first step, second step and third step and I know how to make that life and grow globally. So that's kind of things that's just has been motivating me since I started and whatever I talk to people, know, even in my personal life, I always think as a business and I see different ways. And if I have any problems and struggling and I see the different opinions and the different options and different solutions, it has been like that. This is kind of my personality, I think. I can't even do chit chat because of that. know, whatever we talk, I always love to grow and do something better or improve. That's how I see the life. Brent Peterson (04:41.742) Sorry, my dog just started to go crazy. So tell us a little bit about the questions you ask when a client comes to you to introduce you or they would like to build a brand. Do you have sort of a beginning point for that? Bashak Ilhan (04:43.873) dope! Bashak Ilhan (04:47.844) No problem. Bashak Ilhan (04:59.737) Yes, I can categorize my clients into big, you know, the factions. So one of them are like they already have a business that established business in their area and they do great. They have different sales channels and they manufacture and they produce and they have like online and brick and mortar shops and everything, but they don't know how to do that in the US. So that's one part. The questions I always get, know, when and how and how they're do operation in US and what are the requirements and how did they can scale their businesses and how long it's gonna take. So the first thing that we always do, we analyze whatever they do best in their region and try to implement in the new region of US. and we check their production, product, pricing, the images, the sizes and everything. That's the one step. And second, we do the competitor analyzing. We see if there is a space for them to compete with their huge competitor in the US. This is a huge part and difficult part. And then we define their sales channels. Sometimes it's just their online shop is a channel. or Birkin Mortar is a channel or the department stores are their channel. So when we know what they're gonna sell, we just make them ready for the market. Brent Peterson (06:37.816) But I've heard a lot of brands say that you have to be branded to be on Amazon because you're just going to get caught up in the commodity of what it is. Do you advise clients to use Amazon as a channel as well as all the other channels? Bashak Ilhan (06:56.346) Yes, I do. Amazon is a huge channel for all of us, but it's kind of a little late if you're not a strong brand for Amazon because competition is high and it is the number one e-commerce platform in the region and there are so many buyers and sellers on that platform. You have to have something very different, very unique or you have to have a perfect quality or pricing. It's just competition is a little high. That's why as road we're focusing on other channels more than Amazon. We're on a little bit more higher level of the platforms, but Amazon is just a little tough. is still a great place, but I'm... I'm just thinking that if you enter Amazon long time ago, like five, seven years ago, it was better. Brent Peterson (08:01.11) Are you able to see differences? Are you able to advise brands and differences between the US market and the European market to help them understand how they should sell differently in each of the markets? Bashak Ilhan (08:12.206) Yes, yes I do and it's very different. We work with European brands from Italy, Spain and also from UK and we also have brands from United Arab Emirates. They say the same thing, everything is different in the US. Some things are easier than Europe, I would say, but if you're talking about the sizing, the collection, or the fashion trends, they are really different in the US, for sure. Brent Peterson (08:49.592) How about the business, business wise or even the customers, they buy differently, right? And there's maybe different expectations. I think in the US now, the expectations when you're ordering something online is you're gonna get it in two days. Is that similar in Europe? Bashak Ilhan (09:04.952) Yes, it is similar. Actually, it's a little bit faster in Dubai, for example. There is a channel that we work and then we place American and European brands onto those platforms and their delivery time is two hours. Can you imagine that? need to, you're going to have, you have your products in two hours. So in that case, that area region is more faster. than US, but the other things are different in there and here as well. US customers, we are just facing the huge return rates in here. It's not the same in Europe or the Middle East. Brent Peterson (09:52.652) Okay, so the return rate is much lower in Europe. Bashak Ilhan (09:56.685) Yes, martial art in Middle East for sure. They just buy it and they don't. If they don't like it, they throw it away. But in the US, the return rate is huge. Brent Peterson (10:09.058) Yeah, and it has to be a challenge too if you're not, I mean, if you're trying to ship from off, off shores, right? Especially now in today's tariff world, that you really need to be shipping from within the U.S. Bashak Ilhan (10:20.152) Yes, that's the main business of ours. We are managing the warehouse and operation here. So there is no other chance anymore. Brent Peterson (10:31.618) Are a lot of the European brands struggling with the different tariffs that are happening? I guess that's a universal question now, right? That's sort of redundant that everybody's struggling. Is there a way that you recommend that they get around it? Bashak Ilhan (10:35.619) Yes. Bashak Ilhan (10:47.066) To be honest with you, we're trying. We're trying to understand what is going on because things are changing all the time. some of the taxes, they changed a lot and we didn't know what to do a couple of months ago. Now we are trying to find the different ways. For example, if one brand is shipping out from Turkey, there wasn't any tax or any commission on top of it if the shipment was less than... $700 but now they're paying like almost 30 % tax on top of it so we didn't have anything to do we just tried to edit on the pricing the Mestera IP pricing so we're still struggling we are trying to fix it but I don't know what we're gonna do but we are trying our best all of us Brent Peterson (11:41.414) When a brand wants to go into a big big box store like Target or Macy's or something, do you recommend that they have enough volume? Because I think some of those bigger stores can actually put a brand out of business if you're not ready for the amount of volume and even the payment terms that they're recommending. Bashak Ilhan (11:45.818) Mm-hmm. Bashak Ilhan (11:54.913) exact grant. Yes, exactly. That's why our company comes in handy. So we make sure that they're ready for that fast growth. Otherwise, it will be just a disaster for all of us. Yes, definitely. So there are so many different requirements on each platform, each big bucks asking for different things. And we are making sure that brands are ready to go live on those platforms. Brent Peterson (12:26.286) What kind of success stories do you have that you've seen brands just go like you? You wouldn't think they're going to be successful in the US, but they just skyrocket out of control. Bashak Ilhan (12:37.273) I have so many different stories but one we started working with one really small and gorgeous branch just one founder and she had two people in her team so and her collection was like you know the 20 different items it wasn't really huge but it was good and so we had we worked with them And in the first month, we got an acceptance from Nordstrom and their revenue was huge first month. That was a big success. I wasn't expecting that fast, you know, the success. It made us all happy. And another one is we have been working with one fashion brand for seven years and they sell like 20 different platforms right now. and their monthly sale is more than $5 million a month. That's another great story for us. So we have so many different ones, but the last one is we start working with one fashion woman apparel and I found that all the items are too sexy and I was a little bit worried how we gonna sell it and it was a great success too. Brent Peterson (14:01.326) Do you find success brands or brands that are moving from South America, Latin America, Mexico into the US? Is it a lot of those as well or is it mainly Europe? Bashak Ilhan (14:10.649) Yeah, I mean we don't have any brands from those regions right now. I would love to work with them. I believe that they have awesome items and products and brands. But language is a little bit barrier for us. We don't have anybody speaking in Spanish in our team. I don't speak Spanish so I can hire someone but I would love to communicate with them. That probably was holding Bequesa up, yeah, I believe that they would be a great brand for the US market, for sure. Brent Peterson (14:47.758) What are you most excited about for next year for the quarter one and quarter two of next year? Bashak Ilhan (14:54.585) I'm going to say the same thing. I'm sure that everybody's telling that to you. AI is a new game changer and we have been seeing different solutions based on AI. So I'm just assuming that the shopping and searching and everything will change. So we'll have AI agents in different platforms or our personal agents. And you won't be searching online and asking like, know, if you're looking for a black linen shirt, you will probably talk to your agent, AI agent and tell them that, you know, find the black linen shirt and a good brand, less return rates. This is the size that I'm looking for and this is my body and this is my lifestyle. And what do you suggest and where is... it and what it compared to pricing and everything. that will be a huge change and I believe that it's not gonna be so far away. It's gonna happen very soon. So that's the big thing that I'm looking for. Brent Peterson (16:10.316) I think in your notes you had mentioned the function of value and trust value, emotional value. Can you explain what you mean by some of those things? Bashak Ilhan (16:17.165) Yes, so this is a basic marketing things we all use. So if you are selling service or product, there are a couple of things that you need to check with your competitor, right? The pricing, the quality, the design and everything. But the emotional... perspective is more important now because the new generation is looking for that and they want to know why you are manufacturing or producing that too and who are doing it. And they're more after the feeling. know, if they purchase something, they want to feel different, whatever that feeling is. So they want to feel that they are supporting the brand or they're supporting the environment. or they're just making themselves feel good about, you know, the one couple different certain things. So it has been this way for like three, four years, but it's gonna be more. The feeling is kind of another aspect that you're buying something. Brent Peterson (17:28.718) Bashak, we have a few minutes left. As we finish off the podcast, I give everybody a chance to do a shameless plug about anything they'd like. What would you like to plug today? Bashak Ilhan (17:39.161) Thank you. I was already. I love helping smaller big brands and I love to share our knowledge with them and I just would like to encourage whoever is listening to us here so if they have a dream to be a big brand and selling different platforms and be everywhere. I just wanted to tell them that they just need to think about it and they can check their chances and nothing should stop them. So we have been doing this business for 13 years and I would be very, very happy to help them and then discuss their dreams with them. Brent Peterson (18:29.208) That's great and tell us how people can get a hold of you. Bashak Ilhan (18:32.601) I'm online everywhere so my first name and last name Bashak Ilhan on LinkedIn and Instagram and also my email address can I provide that too? Brent Peterson (18:43.768) Yeah, for sure. Brent Peterson (18:50.424) Perfect, I will make sure we get those into the show notes. Bashak Ilhan is the founder and CEO of Road Group. Thank you so much for being here today. Bashak Ilhan (18:52.621) Thank you so much. Bashak Ilhan (18:59.834) Thank you for having me.