Inside Mori’s 10-year growth playbook: Physical retail, pre-school expansion and US localisation

Now in its 10th year, Mori has its ambitions set on being more than just a babywear brand. Last month, the company made such a mission known by making its first acquisition: Kidly, another British label but for pre-school children. Now, Mori is also growing its retail network with the opening of a new store in Hampstead this summer, bringing its UK store count to four.

To learn more about Mori’s growth plans, FashionUnited spoke to Akin Onal, founder and CEO of the brand. After a career in investment banking and management consulting, Onal transitioned to textiles to pursue his creative interests. Drawing upon Turkey’s rich textile heritage, he identified a promising niche in kidswear, a segment that offers the potential of a loyal customer base, a key factor in his business strategy. Since the inception of Mori, Onal has maintained close relationships with the artisans who produce the brand's distinctive materials, which he believes have become a primary driver of customer loyalty.

Expansion into pre-school category extends Mori’s lifetime value

Up until now, Mori’s focus has been largely on baby apparel. However, with Kidly under Mori’s wing, Onal and his team are expanding their horizons to the pre-school category, aligning with the company’s aim of becoming an all encompassing childrenswear brand. This idea to foster long-term relationships with parents throughout their child’s early years contributes to Onal’s strategy of extending the lifetime value of each family within a direct-to-consumer business model.

“If we can have products for every member of that family, then our relevance increases, meaning at any given purchase, your average basket size increases because the parent may buy for the baby, but also get a T-shirt for their five-year-old,” Onal noted. With this in mind, Kidly’s offering of apparel for two to six year olds aptly adds to what had initially been Mori’s very sleep-focused offering for zero to two year olds. Not only that, but the two labels shared a similar audience, a one that is as design-focused as they are sustainable, a fundamental quality that drove Onal towards an acquisition.

The decision to takeover another company had followed the turbulence of the pandemic, when a huge boom in new online businesses was then swiftly followed by a waning of demand. Only some brands were able to shine through. Mori was one of those names, having grown four times over in just a few years due to its forethought to not depend too heavily on social media, its online presence and a promise of quick fulfillment. “You need other ways of driving traffic to your brand,” Onal noted.

This decision to be less reliant on online traffic forms one of Mori’s strategic pillars alongside expanding its wholesale business, a feat already evident in partnerships with British retailers like Next and Marks & Spencer. The US also represents an important strategic pillar for Mori. The brand is available in the region both online and through relevant wholesalers like Nordstrom and Bloomingdale’s.

US market presents opportunities despite uncertainty surrounding trade

Mori strategically expanded into the US market to attract "European-curious" consumers, particularly in coastal states like New York and California, which generate approximately 70 percent of its online revenue. Although US consumers have shown interest in international brands through Mori's regional e-commerce platform, launched in 2018, they prioritise localisation and quick delivery. This preference prompted Mori to establish a warehouse in New Jersey.

Recent US tariffs imposed by president Donald Trump have, however, complicated global trade and forced companies to reconsider their US market strategies and supply chains. Although Mori's predominantly Turkey-based production mitigates the direct impact of these tariffs on its operations, the fundamental issue, according to Onal, is the misalignment of such restrictions with the current globalised production model.

Factories in production-heavy countries, like China, one of the hardest hit regions by stringent tariffs, specialise in the kinds of materials Mori needs for its products, such as high-quality recycled polyester that is imperative to new growth categories eyed by Mori, like swimwear. Additionally, Chinese factories are accustomed to the rigorous US testing standards, which presents a challenge to business flexibility.

“Tariff wars don’t make sense because that’s not how the world is built anymore. You have specialised factories that you can’t just pull out from in China and move to India in three months. They need to have an ecosystem growing around them,” Onal noted, before affirming that there was a need to stay agile. “We are having to change our purchase orders, moving more to the UK, where our website will have a lot more products compared to that of the US.”

Onal added: “Luckily, Mori manufactures mainly out of Turkey, and about two-thirds of our collection are continuity, so we don’t rely on bringing new prints out every single week to the market in order to reach our audience. That really helps make us a bit more resilient to these changes.”

Mori affirms commitment to retail as ‘stamp of approval by customer’

Another strategic pillar for Mori is its mission to build up its retail presence. With the opening of its fourth store in the UK this summer, it appears Mori is well on the way in this regard. After expanding into the physical retail market in 2019, Mori experienced strong demand in this space, even during the pandemic. “If you’re an online-first brand, having a physical presence is your stamp of approval by the customer on continuity,” Onal noted. “They are making long-term decisions. Trust is so key in our category, so that stamp of approval is really important.”

After pandemic restrictions were lifted, retail became Mori’s most profitable channel, pushing the team to hone in on its retail design and concept. Where its stores are situated is decided upon data that tracks where an increasing number of families are inhabiting and the number of prams – or “prams per capita”, as Onal calls it – the Mori team counts in a certain area. This has helped the company narrow down hot spots for store opportunities, with London’s Hampstead representing exactly that. Here, Mori’s retail vision is to be brought to life. The format ensures that shoppers can be directed to the exact category they need, while also keeping in mind those shopping for gifts.

The trajectory of Mori’s retail expansion is reflective of a strong baby and childrenswear market in the UK, despite the challenging period retailers find themselves in. While the ‘Covid baby boom’ has statistically been less heightened as initially anticipated, any changes Onal saw in demand were actually in shopping habits. Brands that have come out on top are able to cater to a consumer that is making more considered, value-driven decisions, something Mori has been able to achieve through products that prioritise longevity.

The brand’s sleeping bags, for example, come with built in features like size adjustments, allowing it to remain with the child for a longer period of time. “This was key from both a sustainability point of view and the user experience point of view,” Onal said. “Our sleeping bags are not the cheapest in the market, but when you calculate the price per wear, they’re actually cheaper than mass market products.

An interesting category for Mori now is footwear, one Kidly was already well versed in and will therefore aid in its counterpart’s continued expansion. “This will pretty much automatically allow Mori to speak to a 30 percent larger audience through an already strong brand, rather than having to start creating an authority in footwear,” Onal noted. The company has also been investing heavily in the ‘Pyjama Project’. The initiative set out to infuse bolder, character-heavy prints with Mori’s staple identity, while also elevating the use of specialised durable model fabrics that intend to provide “even more longevity”.

Elsewhere, it's still early days for Mori’s next acquisition. Onal confirmed the company was looking at certain targets, including some in the US, but it had not yet committed to the process, and instead is prioritising a slow, thought-out means of growth. This also applies to potential geographies. In the Middle East, for example, a strong, valuable fan base is growing. However, to directly serve this market would require a localised warehouse, and complications surrounding trade make this a path that is not in the foreseeable future, just yet.

For now, then, Mori will remain focused on its two core markets: the UK and US, continuing to enact its meticulous approach to business as it expands its childrenswear foothold.