A.K.A. Brands, the fast-growing global platform with a new approach to driving growth in digital native brands, has acquired Australian streetwear specialist Culture Kings, which is positioned at the intersection of music, culture and fashion, said a.k.a. CEO Jill Ramsey, who declined to comment on the terms of the deal.

“We’re thrilled to add Culture Kings,” said Ramsey said. “We’re essentially traveling the world for the best new brands. We talk to hundreds of brands before making a single acquisition.”

A.K.A. Brands’ portfolio includes Princess Polly, Petal & Pup, and Rebdolls, with each label catering to a unique customer. It’s growth strategy includes acquiring additional brands with strong growth potential, a proven track record in target markets, and the ability to expand and perform in new regions, the company said.

Summit Partners, a global alternative investment firm with more than $23 billion under management, is helping to facilitate a.k.a.’s expansion by backing a.k.a. with the goal of becoming a global leader in direct-to-consumer fashion.

“Culture Kings is an amazing Aussie streetwear brand,” said Ramsey. We’re diversifying the customer’s experience. Princess Polly is for a young female going out and hanging out. Petal & Pup is for special occasions such as getting married and starting a family. During the height of the Covid-19 pandemic, we pivoted from weddings to more casual wear. Rebdolls consists of plus sizes for the urban woman.”

Culture Kings cuts a wide swath across target consumers ages 18to 35. “It’s a more diverse audience with an incredibly loyal following,” Ramsey said. “We think Culture Kings is doing something in streetwear that we haven’t seen anyone else doing – they’re selling Puma, Under Armour and Nike, among other brands, plus fan apparel and fashion streetwear. We see a lot of [competitors] playing in each one of those lanes, but nobody pulling it together in a streetwear apparel brand.”

Ramsey said Culture Kings is different than the existing brands in its portfolio. For example, it operates flagship locations in key Australian cities, features DJs such as Marshmello and Diplo, and basketball hoops for fans to start pick-up games with the likes of Dennis Rodman and Serena Williams.

Australia-born NBA star Ben Simmons is investing in a.k.a. in conjunction with the Culture Kings transaction. Founded in 2008 by Tah-nee and Simon Beard in Brisbane, Australia, Culture Kings is known for its extensive and curated collection of more than 100 leading global brands, and its sought after exclusive pieces.

“As we looked to bring our love of the streetwear lifestyle to new consumers and deepen our connection with our fans, a.k.a. provides us with the ability to focus on our strengths of creating and curating great product and delivering it in a unique and entertaining way,” Tah-nee and Beard said jointly. “Our vision has always been to create the next global retail phenomenon where culture and style collide. A.K.A. will help us continue to scale our business and realize our dream of being the number one destination for streetwear in the world.”

“They do events at the store, which is huge a experiential complement [to the online business,]” Ramsey said, referring to Culture Kings. “This is a next generation brand with huge potential in the U.S. market. We're evaluating opening stores in the U.S. We’re starting with a digital strategy, because the future of stores is about having the right footprint and the right format. We’re being really smart around a flagship footprint rather than a nationwide footprint.”

Prior to joining a.k.a., Ramsey led the e-commerce charge at Macy’s Inc.’s flagship brand. Steeped in tradition, the venerable retailer has had an uneven history selling online. When the Covide-19 pandemic hit the U.S., retailers of all stripes had to reevaluate how to proceed during a business-as-unusual time.

“It’s kind of the perfect role for me at the perfect time,” said Ramsey, who joined a.k.a. in May 2020. “I spent my whole career in e-commerce, while I was working at Walmart [from 2011 to 2014, rising to VP of e-commerce,] Walmart.com grew from $32 million to $6 billion. I look back on the first couple of decades of e-commerce and they look different. I can take everything I’ve learned in the first years of e-commerce and apply it now.”

Ramsey said the Covid-19 pandemic has been the best of times and worst of times for retailers. “We’ve all been watching the retail story unfold, but it’s been so accelerated this year,” she said, adding that all of the changes were taking place for a long time, and accelerated by the crisis. “At the end of the day, if you don’t have an authentic connection with your customer, your brand is just transactional. The old days of just having a convenient location and being a handy spot to pick up a brand you like, are over. For a brand to survive today, it needs to start out now on social media.”

A.K.A. has done that, but doesn’t linger too long on social media platforms, remaining nimble enough to shift gears and follow its customer to the next shiny new online thing.

“We get a lot of our Instagram customers through influencers,” Ramsey said. “What’s so exciting about a.k.a. is that we’re efficient at acquiring new customers through social. We also do some paid social spending on Instagram, YouTube and Tiktok. We move where the eyeballs go. Our brands have moved from Facebook to Instagram to TikTok to Clubhouse. We’ll be doing that to grow and scale in U.S.”

Ramsey said Culture Kings is already known in the U.S., with it’s fastest-growing business being in America. “They already have a momentum and customer demand in the U.S., she said. “We know they have a big U.S. presence.”

A.K.A.’s platform approach and philosophy will allow brands to learn from each other and take advantage of Ramsey’s background, which includes scaling brands. “Culture Kings is in fashion, there’s huge [potential] with department and specialty store consumer sectors.“We’re competing with shrinking players in that space and growing players in the big direct-to-consumer space,” she said. “Because we compete in several apparel areas, it’s a great competitive moat for us.”

Asked whether ASOS, which recently acquired Topshop, and is exponentially larger that a.k.a., is seen as a threat, Ramsey said, adding that ASOS competes with some of a.k.a’s brands. “We're designing exclusive merchandise. Also, our content and editorial positioning makes for an impressive competitive approach.

“ASOS just acquired Topshop, but the brand’s lost a lot of its momentum,” Ramsey added. “We’ll have to look at how they use that asset. We invest and buy high-growth bands, not what I might call, distressed brands. We’re connecting with today’s Gen Z and Millennial customer with brands that are on an upward trajectory, not a brand that was high-growth brand 10 to 15 years ago.”