Lingerie brand Kat the Label is seamlessly going global with Airwallex

Founded in 2015 by Kate Nixon, Kat the Label is on a mission to elevate everyday lingerie for Australian women. After studying fashion design in Melbourne, Kate had been making bralettes at home in Byron Bay alongside her full-time job in production. After sourcing an offshore manufacturer, Kate decided to take the plunge into launching her own global lingerie brand, and Kat the Label was born. 

Now loved by thousands of women all over the world and having been featured in publications like VOGUE, Broadsheet, Poosh and ELLE, we chatted with Kate about how Kat the Label’s partnership with Airwallex has helped her business become a global sensation.

Retaining USD for the US market

One of the most significant impacts that Kat the Label has experienced since using Airwallex is being able to save money on foreign transaction fees. With an Airwallex Global Account, they’re able to retain the USD they receive from their global customers and wholesalers in the US and use it to pay their suppliers in China. 

“When we first launched, the US dollar was very strong and the Australian dollar was nothing in comparison. A lot of my suppliers in China only accepted payments in USD, so I was losing a lot of money doing foreign transactions. I was trying to figure out a way that I could retain the USD I was receiving,” says Kate.

“When we were using CommBank and TransferWise, I was constantly having to exchange the money back to AUD and then to USD to pay my suppliers. So not only was I losing money from the actual exchange, but there were so many fees associated with using these other services.”

By having Airwallex Global Accounts, Kat the Label are able to skip the costly foreign transaction fees and service fees that traditional banks and other services charge. 

“Now that we’ve grown so much in the US market, I’d say we pay 95% of our suppliers with USD from our Airwallex Global Account. It’s just a simple one-step transaction - you don’t have to buy it and then transfer it to a third party.”

Easy integration with local markets

Using Airwallex has made it easy for Kat the Label to have a local presence in the countries they sell in, making it simple to set their business up with new wholesalers. 

“We have a lot of wholesalers in the US now, like Revolve and Urban Outfitters. Having an account in the local currency with Airwallex has made it simple to set ourselves up as a vendor with these large companies,” says Kate.

“The US is quite behind Australia with their banking system, so being able to provide them with local payment details has made receiving our funds from sales so much easier.”

“Once we secure wholesalers, getting set up with them is so much easier with Airwallex. As an international business, being able to provide our wholesalers with a local banking entity means that they feel more comfortable selling our products - and we get paid quicker!”

Quicker transfers, better service

Kat the Label is able to pass on the benefits of using Airwallex to their customers, with quicker payments to suppliers meaning faster lead times on their products. 

“Using the Airwallex Global Account to pay our suppliers and make other international financial transactions is so much more efficient than a traditional bank,” says Kate. 

“When our factory receives their money in a timely way, they can shift our product more quickly, which essentially means our customers get their lingerie delivered to them faster. It’s a win-win.”

Seamless staff transactions with Borderless Cards

Kat the Label have been able to say goodbye to foreign transaction fees when travelling overseas by using Airwallex’s Borderless Cards. Employees are able to make purchases in multiple currencies from the balances held in the Global Accounts.  

“It’s amazing to know that when my staff are in the US, they’re using the card to just pull money from our US Global Account, so we’re saving foreign transaction fees and ATM fees,” says Kate.

“They’re free to just go down the street and grab coffees for the team using company money, without having to go through a complicated and drawn-out approvals process. I can also pause or cancel the cards whenever I need to, and it makes reconciling at the end of the month much easier, as I know exactly who has purchased what using the Airwallex Expense Management.”

“We also connect the cards to all of our US-based subscriptions like Shopify and international paid advertising. That all comes through Airwallex now too, which again saves us that exchange rate.”

Looking to the future

Kat the Label has big plans to expand their wholesale merchandising into the UK market and believes Airwallex will play a vital role in further expansion.

“Don’t be afraid to take your business global if you have Airwallex on your side. Have your financial processes set up so everything is as streamlined and simple for your team as possible, and then you can dive right in.”