Ask An Expert: How Do I Push My Brand Into Other Categories?

Chic pregnant women love British maternity label Isabella Oliver’s cozy knits, colorful wrap dresses and 1950s-style swing coats. Why? Because they’re pieces a modern woman would want to wear anytime, regardless of whether she’s six months-in or not. That’s why founders Vanessa Knox-Brien and Baukjen de Swaan Arons decided to expand the Isabella Oliver brand and create a contemporary collection, which launched in February 2009. In its first year, Isabella Oliver 365 garnered $3 million in sales. Not bad for a recession-era launch.

I recently chatted with de Swaan Arons about the challenges that come with moving into a vastly different category, and why she and Knox-Brien were confident enough to do it in a bad economy.

TFB: Isabella Oliver Maternity was founded in 2003. What did you do before then?
Baukjen de Swaan Arons: For a long time I worked in branding and marketing at Procter & Gamble, and Vanessa was a designer at Victoria Secret and Natori.

TFB: So you lead the marketing and Vanessa leads the design?
BdSA: Well, in the beginning we were doing everything. When you start a company with just three people, you suddenly become an expert in IT, human resources, everything. Now that we have 45 people working at Isabella Oliver, our roles have changed. We have a production team, a team of marketeers–now our job is to oversee everything, sign off on everything, rather than actually do everything.

TFB: This year marked the launch of your non-maternity collection. The two markets are so similar and yet so different. How did you approach contemporary?
BdSA: We’ve always designed clothes we like to wear ourselves, so we’re doing the same thing with 365. I think it’s nice to design for our loyal customers forever, rather than just during their pregnancies. The demand was definitely there.

TFB: It was a hard year to launch a new brand. How have you been able to combat the recession?
BdSA: You have to remember that the fashion timeline is so absurdly long that the clothes were already being made by the time the recession hit. [Specifically, the stock market crash in October 2008.] I’m actually glad in a way. If we had known this was coming three years ago when we started forming the concept, it might have held us back. Luckily it’s been a success–we had about $3 million in sales in just the first year. [Sales for Isabella Oliver Maternity reached about $17 million in 2009.]

TFB: You’ve been able to build a successful retail business without brick and mortar. Do you ever think about venturing down that path?
BdSA: Yes, of course. We get approached a couple times a day. But our hands are so full already. We want to increase our sales in the markets we’re already in, and also to expand 365. That’s what we’re focusing on right now.

Also In This Series:
Ask An Expert: Why Is It So Hard To Find A Pair Of Jeans That Fit?
Ask An Expert: Do Men Really Like To Shop?

Gilt: More Full Price Sales Will Likely Be A Part Of Our Future

A spokesperson from Gilt got back to me regarding the Vogue partnership. Here’s what she had to say:

• There will definitely be Vogue-sponsored “Shop The Issue” sales in February and March. Vogue hasn’t committed to anything beyond that.
• As Gilt grows, full price sales are something it wants to do, but no definite plans have been made.

Obviously, the big question is: Why bother? Gilt’s already grabbing market share from pretty much every type of retailer, including off-price brick-and-mortar (TJ Maxx), department stores, boutiques and outlet stores.

Well, I think what Gilt may be dealing with now is somewhat of a backlash from designers, as my Twitter follower @EmekaPatrick suggested yesterday. Many boutiques are frustrated with certain designers because they’re producing in-season merchandise for Gilt and allowing Gilt to sell it at a hefty discount while it’s still full price at traditional stores.

Consumers are picking up on this. One boutique owner told me that clients have actually said to him, “I saw this on Gilt the other day for 70% off, why is it full price here?” I’m sure designers are hearing from disgruntled store buyers and have relayed these concerns back to Gilt. I’m also sure it’s not a huge deal for the company as of yet, but as the economy improves and traditional store buyers have more money to spend, Gilt’s going to have to come up with new ways to convince designers to cut them a deal.

That’s not to say Gilt’s original form of revenue will go away. No matter what’s up with the economy, people love sales, even if the product is a couple of seasons old. But in-season merchandise is going to be more difficult to discount down the road. As a frequent Gilt customer, I look forward to observing how the executive team deals with this and other challenges.

Gilt Teams Up With Vogue For “Shop The Issue” Sales, Starting Tonight At 9pm

What may well be its most brilliant marketing move yet, Gilt Groupe has teamed up with American Vogue to hold special “Shop The Issue” sales. The first one happens tonight at 9pm and features See by Chloe, whose safari shirt was profiled by fashion writer Mark Holgate in the January issue of the magazine.

There is very little information available from Gilt–meaning no press release, no blog post–so I’m unsure as to whether or not other designers from the issue will also be featured or if the clothing will be discounted. (I have a feeling that if it is, it won’t be by much. Don’t expect 70% off in-season merchandise here.)

I’ve contacted Gilt and hopefully they can answer my questions. I’ll get back to you soonest.

Update:

The sale is filled with non-discounted items from several labels, including Dooney & Bourke, Giles & Brother and the aforementioned See By Chloe.

The model is doing a lot of Vogue spread-inspired poses.

Gilt is using Vogue’s new feature Steal of the Month as the centerpiece for each sale. That’s a good idea, as long as the designers involved are okay with selling his/her new goods on Gilt.

This biggest news here? Gilt has moved into full-price retail. Yes, it’s still a flash sale, but without the discount, what’s the point?  Gilt execs say that traditional retailers don’t understand the flash sale model. Will they be able to duplicate its success while charging full price?

Decade List: Ten Moments In Fashion That Changed The Business

Like every industry, fashion suffered quite a bit in the Naughts, with enough shuttered labels and disgruntled consumers for an aspiring fashionista to throw in her Hermes towel. However, in my opinion, the triumphs outweighed the missteps.

While the democratization of fashion may have feathered some ruffles, it–in the end–helped to establish a stronger, more lucrative industry. Here, in the spirit of those top ten lists that I know you love reading, I’ve named the ten moments over the last ten years I that believe changed the business of fashion. Maybe not forever, but at least for now.

2000: H&M Opens in the US
In high school, I read a lot of British magazines. (Yes, I was a bit of an anglophile, watching Are You Being Served when I didn’t have lacrosse practice after school.) I soon understood that while British women were terribly obsessed with fashion, they were also obsessed with not paying exorbitant amounts of money for said fashion. In the pages of British Vogue I discovered H&M, a Swedish retailer that sold clothes rivaling Target in price and Prada in style. By the time I was interning in New York City at a downtown magazine, H&M had arrived on 5th Avenue.

After work I’d take the N up to Rockefeller Center and spend an hour rifling through racks of asymmetrical blouses, wide-leg trousers and colorful plastic baubles.  H&M went on to change American retail, heralding in the concept of fast fashion–clothing that is made cheaply, stylishly and above all, quickly. Soon enough, European favorites like Zara, Topshop and Mango were also infiltrating US shores, leaving All-American basic labels like Gap and Abercrombie & Fitch in the dust.

2001: Vente Privee Launches
Remember life before Gilt Groupe? If you responded by saying “not really,” you’ve got to thank its predecessor, the France-based Vente Privee. You all know the story: Company launches exclusive online sample sales, reports $800 million in revenue in 2008. A decade later, the private sale is the hottest retail model around.

2001: PPR Wins Gucci
After an epic battle between billionaire Bernard Arnault of Moet Hennessy Louis Vuitton (LVMH) and billionaire Francois Pinnault of PPR, the latter finally gained control of the Gucci Group, which includes Gucci, Bottega Veneta, Yves Saint Laurent and more. As PPR moved from discount retail into the world of high luxury, it was obvious to designers that being a part of a big conglomerate like LVMH, PPR or Richemont was a way to build a brand without sacrificing design integrity. The corporate infrastructure of these companies helped brands like Balenciaga, Stella McCartney and Edun to increase profits through fragrance, accessories and other well-thought-out licensing deals.

2003: Target Signs Isaac Mizrahi
When Target brought him on to design a women’s fashion collection in 2003, Isaac Mizrahi was nothing more than a 1990s flash in the pan, better known for his documentary Unzipped and a short-lived talk show than beautiful preppy-glam clothing. Yet women couldn’t get enough of what Mizrahi offered at Target: Shiny shift dresses, polka dot blouses and pointy flats. By 2005, the cheap-chic collection garnered $500 million in sales for Target. Mizrahi has since moved onto Liz Claiborne, but his work at Target made it okay for high-end designers to collaborate with low-end retailers.

2004: Rachel Zoe Becomes a Household Name
While celebrity stylists have been around for decades, it was the Naughts that made them rich and independently famous. When Rachel Zoe transformed train wreck Nicole Richie into a chic hippie, she also made big sunglasses, tiered prairie dresses and honey-highlighted hair the look du jour. Today, stylists command thousands of dollars per day for their services, and more and more young women are clamoring to follow in their footsteps.

2005: LVMH Sells Lacroix, Proving that Fashion is More About Commerce than Art
After standing by his money-sucking side for nearly 20 years, LVMH exec Arnault finally sold off Christian Lacroix’s failing fashion business to Florida-based investment company Fallic Group for a measly 2 million euros. We all know how the story ended: Fallic was unable to revive the brand, which made beautiful six-figure couture dresses but could not connect with a consumer at the fragrance, accessory and ready-to-wear levels. It was reduced to a licensing operation at the end of 2009. As sad as it is that Lacroix is not making his beautiful dresses, his struggles serve as an example for the rest of the fashion industry. The lesson: If you want to stay small, stay small, but if you want to make a lot of money, you’ve got to play by retail’s rules. Design may be an art, but fashion is a business.

Jil Sander and Others Lose the Rights to Their Own Names
Another indication that fashion is serious stuff: After disagreements with their corporate backers, designers like Jil Sander, Helmut Lang and Camilla Staerk have lost the rights to their name brands, which are also their given names. Jil Sander returned with +J for Uniqlo, Lang stopped designing altogether to do fine art and Staerk now designs under her surname.

Versace, Ferragamo and Prada Hint At–But Don’t Go Through With–IPOs
From whispers at Salvatore Ferragamo and Versace in 2006 to Tommy Hilfiger, and Prada’s de-listing–then hopes of re-listing–at several points throughout the decade, many fashion companies sought out public funds, but for one reason or another, were not able to actually attain them. Of course, the 2008 crash made raising money even more difficult. Yet Hilfiger, Versace and Prada still haven’t ruled out public offerings. The Teens may just be the decade of fashion IPOs.

2005: LVMH Starts Suing the Heck out of Copyright Infringees
From eBay to Wal-Mart to Bad Boy Records, LVMH crusaded against counterfeit handbags and copyright infringements in the last half of this decade. The lawsuits resulted in an industry-wide debate over what could-and couldn’t-be copied. Intellectual property lawyers prayed to the Louis Vuitton gods each day, thanking them for making their profession more lucrative than ever.

2006: Tom Ford Proves You Can Still Build A Luxury Brand From (Almost) Scratch
After years of conglomerates buying the rights to old fashion houses and hiring the Next Big Designer to revive the brand, Tom Ford did something radical. He broke away from Gucci (where he had played the corporate fashion game, making both said brand and YSL financially viable) and launched a label under his own moniker. Tom Ford currently consists of fragrance–a partnership with Estee Lauder–men’s suiting, shirts, shoes, sunglasses and a few discreet shops that keep customer’s measurements on file for bespoke services. Next step? Women’s wear. Could Ford be THE brand of the Teens? I sure think so.

If Amazon Buys Vente-Privee, What Happens To Gilt Groupe?

Last week, Tech Crunch reported that Amazon was in talks to buy French sample sale site Vente-Privee for an estimated $3 billion. VP is the original inspiration for U.S. phenomenon Gilt Groupe, which brought in an estimated $150 million in sales for 2009. (Of course, there are several other sites that followed Gilt, including Rue La La, which was acquired by GSI Commerce in October 2009 for an estimated $350 million.)

While Gilt is undoubtedly the most successful and high-profile of the sample sale sites currently operating in the U.S.–it even sponsored runway shows for top designers Rodarte and Alexander Wang at New York Fashion Week this past September–Vente-Privee is a bigger animal, and its presence in the U.S. would undoubtedly cut into Gilt’s market share. Unlike Gilt’s other competitors, this France-based company has similar access to top fashion houses like Balenciaga and Alexander McQueen. Sites like Haute Look and Rue La La stick to mid-market, more accessible labels. Plus, Amazon’s customer service and logistical operations are beyond sophisticated. Even retail behemoths like Wal-Mart can’t touch Amazon online.

Vente-Privee’s 2008 sales reached $807 million, a 46% increase from 2007. It currently operates in France, Germany, Spain, Italy and the United Kingdom.

Regardless of whether or not Amazon buys VP, there’s little doubt the sample site that started it all will eventually going to open up shop in the U.S. How can Gilt Groupe continue to flourish when this happens?

1. Join them. The Business Insider suggests that Amazon should consider buying Gilt, too.
2. Continue to diversify. Although I am not at all impressed with Gilt’s travel deal Web site Jetsetter–the deals are mediocre; anyone who is savvy enough to belong to Jetsetter is savvy enough to find a similar booking on Kayak.com–I think it’s a good move to venture into other consumer markets. If Gilt figures out how to offer true value on Jetsetter, it might be able to make it work. Gilt Man, I believe, is its most impressive spin-off yet.
3. Wine and dine those designers to get exclusives. Since the beginning, Gilt’s differentiator has been its direct relationships with the designers. Founders Alexandra Wilkis Wilson and Alexis Maybank both run in elite New York circles, which means that these are people they party with on regular basis. What’s more, Wilkis Wilson spent years as a buyer for companies like Louis Vuitton, so both the business and social connections are strong. Gilt needs to continue capitalize on that and make exclusive deals with these brands before Vente-Privee swoops in.

7 Real Cyber Monday Deals

Cyber Monday reminds me of those fake holidays invented by the card companies: It grabs your attention, but at the same time, you know there’s something unauthentic about the whole thing. But while Cyber Monday may be a non-existent phenomenon dreamed up by greedy marketers eager to drive more shoppers online, there’s no denying that some decent bargains emerge from the rubble. Here are seven sales worth checking out:

Blue Nile
The diamond expert is offering free overnight shipping for purchases made today. That means nearly all orders–including engraved items–will ship this afternoon and arrive tomorrow morning.

Oak
This New York mini-chain of boutiques sells a mix of conceptual, contemporary and independent brands, including Comme des Garçons, Kain and Complex Geometries. Luckily for those outside of the tri-state area, it’s also offering a 20% discount on clothing and shoes–both in-store and online–through the end of the day today.

Amazon
The king of online retailers offers unbeatable prices year-round, and its special Cyber Monday deals exceed expectations. Along with the typical markdowns on electronics and video games, the site is offering an extra 40% off selected jewelry, 30% women’s boots and 20% off denim purchases of $100 or more.

Red Stamp
I love stationery but  I don’t love the steep prices. (Even if it is letterpressed.) That’s why Minneapolis-based paper store Red Stamp’s deal is so worthwhile, especially for those searching for the perfect holiday cards. Through the end of the day today, customers receive a 15% discount on all orders as well as $1 shipping for orders $70 or less. (Orders of $70 or more ship free.) Personal favorites include Elum’s Birch Tree and Berries and Egg Press’s Gang of Gnomes.

Shopbop
Despite the fact that Shopbop’s goofy models and kind of slutty styling turns me off big time, the contemporary fashion site’s unmissable sales keep me coming back. (In the past I’ve found Brian Reyes dresses and Proenza Schouler shoes discounted by 70%.) It’s offering $50 off an order of $300 or more, $100 off $500 or more, $150 off $700 and $250 off $1,000 through the end of today. Enter the code GIFT4U at checkout to benefit.

Nike
Along with 25% off all clearance through December 1, Nike is offering free shipping on all orders through December 22.  If you’re into the personalized kicks, this is the time to pounce.

Nordstrom
This upscale department store is already known for its excellent customer service online and off, so adding free shipping on purchases of $100 or more through December 20 only sweetens the deal. What’s more, the site is already offering up to 50% off in-season items like Burberry boots, Valentino handbags and 3.1 Phillip Lim silk dresses.

Forget About Black Friday, Go Shopping At The Supermarket

No, not that supermarket. I’m talking about Supermarkethq.com, an Etsy-esque site that features a well-curated selection of items, from scratch-and-sniff holiday cards to gorgeous felt window panels. Etsy’s great, but I hate having to sift through all of the really horrible stuff; it can take hours. This proprietors behind Supermarket select which artists/designers are allowed to sell on the site. That means the wretched products that wind up on Etsy–crocheted b are avoided. Must thank NY Mag’s fabulous blog The Cut for introducing me to Supermarket. Happy Thanksgiving!

‘Tis The Season For… Engagement Rings???

Flat screen TVs. Netbook computers. Zhu Zhu Pets. These are the items I imagine shoppers searching frantically for in the days prior to Thanksgiving, and more importantly, Black Friday. And while I may be right, there’s another item that sees a noticeable bump in interest come late November, and that’s the engagement ring.

Bill Tancer, the general manager over at Hitwise, a firm that follows search and advertising trends on the Internet, says that Web searches for engagement rings peak around November 24 each year. These Google charts confirm his findings.

Here’s the Google traffic for the search term “engagement rings” for 2006, when Tancer discovered the pattern:

Here it is for 2008:

And for 2009:

Indeed, 1 out of 5 engagements happen in December, according to statistics provided by online jeweler Blue Nile. So it’s no surprise that when I met with its CEO Diane Irvine and corporate communications director John Baird last week, they confirmed that this is the company’s busiest quarter for both advertising and sales. Some 70% of Blue Nile’s sales are generated by diamond rings, primarily used for engagements or anniversaries.

There’s also no doubt that this year, many on the hunt are searching for more affordable alternatives. According to Google Trends, searches for “silver engagement rings” have increased significantly since September 2009. The good news is, company’s like Blue Nile now offer “build your own ring” services that allow future fiancés to find the perfect ring at a manageable price.

But what might be the most telling bit of information culled from this exercise is that 60% of visitors in search of engagement rings on jewelry sites during the last four weeks were women, not men, according to Hitwise. So while men may be making most of the purchases, we can infer that more women may have a say in what their engagement ring looks like that we–at least I–assumed. Here’s Tancer’s graph of the data:

It’s So Hard To Say Goodbye: The JCPenney Catalog

After 46 years in print, the JCPenney fall/winter catalog is being discontinued after this holiday season. At its peak in 1999, the Big Book generated $4 billion in sales. While I find it unlikely you’ve peeked inside the Big Book–or any of JCPenney’s catalogs–in quite some time, I’ve rounded up some of my favorite images from the past for nostalgia’s sake.

Fashion Finally Ups The E-Commerce Ante

The fashion industry is finally thinking outside the box when it comes to e-commerce. While luxury brands still lag behind, nontraditional retailers–including Lucky magazine and street style Web site Weardrobe.com–are setting up interactive shopping features that go a step beyond typical e-tailing.

Lucky Shopping, which launched today, features over 450 brands and 860,000 unique products. But what differentiates the site is its subjective angle: The mag’s editors handpick their favorite items which are then highlighted, bringing the full-on Lucky experience to life.

Anyone who reads the magazine knows that it’s essentially a curated catalog. And now, instead of sifting through its pages, tagging the items you like and maybe searching for them online or in stores, it can all happen in a couple of clicks.

Let’s hope this venture attracts more people to Luckymag.com, which averaged 317,00 unique users per month in the year ending October 2009, according to traffic-tracking firm Compete.com. (Glamour.com, comparatively, racked up 1.5 million uniques per month during the same period.)

The street style purveyors over at Weardrobe.com are taking an equally unique approach, allowing users to purchase styles similar to what cool kids on the street are wearing. For example, an image of a woman donning a dove grey wool belted coat and purple pumps allows you to “shop the look,” offering comparable options from Calvin Klein and Franco Sarto.

I predict that there will be even more innovative approaches to fashion e-commerce popping up in the near future. Because frankly, if you love fashion, you probably love to shop, too. I look forward to seeing how seamless of an experience these nouveau retailers can create.