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From side hustle to global costume leader – The story of Fraser Smeaton’s costume empire

In 2009, Fraser Smeaton, CEO and co-founder of MorphCostumes, saw an unusual potential in what seemed like an ordinary moment. While walking the streets of Dublin with a friend sporting a bright blue spandex suit, he noticed that people couldn’t help but stop and stare, with many even approaching to ask where to buy one. It was in this moment, when the morph suit captured people’s attention in a way no other costume had, that Smeaton realised he was onto something big. “It was just the obvious demand for that product,” he recalls. This insight marked the beginning of MorphCostumes, which has since grown into the UK’s leading direct-to-consumer fancy dress brand, recognised globally and stocked with over 1,000 costume designs.

As Smeaton explains, the success of MorphCostumes didn’t happen overnight. Growing up in East Lothian, Scotland, business had always intrigued him, inspired by his father’s career in consultancy. After studying engineering at Edinburgh University, Smeaton’s early professional years took him through corporate stints with Mars Confectionery and British Telecom. But it wasn’t until 2009, when Smeaton launched MorphCostumes with his co-founder, that his entrepreneurial journey truly began. “We were walking along the main street in Dublin,” he says, “and 200 people who were watching street theatre stopped… and turned around to take pictures and ask what that was.”

Building a Brand – From a Small Side Project to Full-Time Commitment

That serendipitous moment turned into a business venture as Smeaton and his partner quickly moved to create a business around morph suits. They pieced together early manufacturing, relying heavily on Alibaba and “a lot of Googling” to connect the dots. “We now know that we were paying twice as much as we could have been,” he recalls, laughing at the cost of these early lessons. But Smeaton and his partner kept refining the business model, leveraging social media and e-commerce, and soon, demand exploded. “We launched in May… by September, we were on our third restock. We sold £5,000 in a few hours… and then £35,000 the next day,” he recalls, marking the moment they realised their little side hustle had full-time potential.

From there, Smeaton steered MorphCostumes toward an ambitious growth strategy, leaning into the costume category’s unique appeal and expanding to markets far beyond the UK. “We understood that if there were 20 guys asking you, ‘where do you buy that?’ there’s probably another hundred who’d like to know,” he notes. Alongside this early marketing approach, they leveraged social media to increase brand awareness. “We knew that staying top-of-mind for our audience meant they’d consider us when they needed a costume,” Smeaton explains. MorphCostumes started printing “morphsuits.com” on the back of each costume, turning each customer into a walking advertisement, a tactic that drove rapid growth.

A Global Brand and Diverse Offerings

What started as a spandex costume business has evolved into the UK’s top direct-to-consumer fancy dress retailer, offering costumes for a variety of occasions, from Halloween to World Book Day and stag and hen parties. Today, MorphCostumes holds licensing partnerships with global brands like Marvel, Hasbro, and WWE, enabling them to provide fans with iconic, recognisable designs while continuing to innovate within the costume space. The MorphCostumes range now includes over 1,000 costume designs, and the company sells to customers worldwide across the USA, UK, Germany, France, Italy, Spain, Canada, Mexico, and Australia.

As part of the larger AFG Media operation, MorphCostumes also owns Royal & Awesome, an iconic golf-wear brand that infuses the same creativity and visual impact into the golf world. Smeaton notes that 2022 was a landmark year, with MorphCostumes achieving a 72% year-over-year increase in turnover, reaching a record £33.1 million.

Turning Points and Strategic Decisions

Critical to the success of MorphCostumes were several strategic decisions and pivotal moments. For instance, when they initially entered the American market, Smeaton and his team attended a trade show where they connected with Party City, a major U.S. retailer. “A third of Americans will dress up for Halloween… we’re talking over 100 million costumes,” he explains, underscoring the immense potential of this partnership. Meeting Party City, with its 1,000+ costume stores, was a game-changer, cementing MorphCostumes’ presence in the U.S. market.

Equally important was expanding their product line. The novelty of the original morph suit began to fade after the first few years, leading Smeaton to diversify their offering. “Everybody had seen these new and different costumes, and therefore they weren’t new and different anymore,” he reflects. To address this, MorphCostumes expanded its selection to include traditional costumes, like witches and zombies, in addition to licensed characters. “That’s the focus of what we’re trying to do,” Smeaton shares, explaining that they’re pushing to offer as many as 10,000 designs, covering every theme and occasion imaginable.

Weathering Challenges and Embracing Adaptation

Smeaton’s entrepreneurial journey has not been without its challenges. The pandemic, in particular, was a turning point. “In a world with no parties, selling party products was not a good thing,” he reflects, describing the panic that hit as sales dropped 85% overnight. Despite this setback, Smeaton quickly adapted, rethinking how MorphCostumes could remain relevant even in lockdown. People began purchasing costumes for “Zoom quizzes and things like that,” and by Halloween, sales had rebounded. “We managed to survive and… come through stronger than we went into it,” he says, highlighting the resilience that helped MorphCostumes weather this storm.

Success in recent years has also come from data-driven product development, which has enabled MorphCostumes to achieve an 85% success rate with new product launches. This meticulous process involves thorough research, prototyping, and consumer testing, providing a steady pipeline of new designs. “We can do it at a price that compares with… or offers more value to the consumer than the competition,” says Smeaton. As they continue to expand, they aim to maintain this quality across all new lines, whether for the core brand or Royal & Awesome.

Innovation and Future Growth in Emerging Markets

With MorphCostumes firmly established as a global player, Smeaton is exploring new avenues, including pet costumes—an area with significant demand in the U.S. “The US sells more pet costumes in any given year than the UK sells in total human costumes,” he reveals. This expansion represents just one of many ways MorphCostumes is diversifying to stay ahead in a competitive industry.

Licensed partnerships, too, continue to play a crucial role in the brand’s growth. While these deals with the likes of Marvel and WWE are great sellers, Smeaton is cautious. “There is always a risk… if you have too much of your business exposed to any one licensing deal,” he notes, underlining his commitment to maintaining MorphCostumes’ independence by developing original, branded designs. This balance has helped MorphCostumes remain agile, adapting to industry trends and customer demand.

To achieve the ambitious target of 10,000 designs, MorphCostumes has implemented an innovative, staged product development process, using data analytics to ensure each design has market potential. “We created software that means we can get good insight into what’s selling and why it’s selling,” Smeaton says, allowing MorphCostumes to consistently roll out popular new options for every occasion.

Reflections and Lessons for Aspiring Entrepreneurs

Despite the success, Smeaton hasn’t forgotten the early lessons learned. His advice for budding entrepreneurs? “Test your new ideas quickly and cheaply and scale those that work,” he emphasises. Reflecting on his initial projects, which failed to take off, he shares, “On paper, they looked just as good… but when the rubber hit the road… we couldn’t quite get the demand up there.” His experiences taught him that staying adaptable and being prepared to pivot when necessary are critical to lasting success.

Maintaining the company’s culture has also been a priority, especially as the brand expanded and hired new talent. “In the early days… we made some mistakes… but we have now addressed that,” he admits. By establishing a rigorous hiring process, MorphCostumes has built a team that aligns with the brand’s mission and values, fostering an environment that supports both personal and professional growth.

MorphCostumes: A Model of Resilience and Creativity

From a side hustle to a global brand, Fraser Smeaton’s MorphCostumes journey is ultimately a lesson in adaptability, foresight, and customer engagement. As e-commerce continues to evolve, Smeaton is exploring emerging sales channels, including TikTok Shop. “Does next week’s guest believe that TikTok Shop is going to be a major player… or a passing fad?” he muses, illustrating how he remains open to new possibilities.

Today, MorphCostumes stands as a leader in the fancy dress industry, a brand known for innovation, customer satisfaction, and adaptability. As Smeaton and his team continue to expand their product line and reach, they remain focused on delivering unique experiences to customers across the globe, proving that with the right approach, a seemingly small idea can transform into a worldwide phenomenon.

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