Deep Dive - Week of July 29th 2024 - The $100 million fashion brand target
Why brands are going after $100 million in revenue and the strategies to get there. Plus the latest collabs, launches and retail industry news.
Pre-Fall has been arriving in stores, more collabs surprised us this week and buzz on the latest beauty launches. Hi to everyone new here, so thrilled you subscribed.
This Week's Topics:
The $100 million Fashion 🎯
New Collabs
New Launches
New Store Openings & Pop-Ups
The Business Section
Fashion Finds
What else I ❤️️
The $100 million Fashion 🎯
In the Fashion industry, $100 million is seen as the benchmark of a significant success. Business of Fashion has an article on how to grow to be a $100 million brand. In addition to this article, BoF also shared on Instagram a chart with the outlets generating buzz for brands. I had fun digging into all of this.
TL;DR: The article discusses the challenges facing indie fashion brands in today's market, emphasizing the importance of solid business fundamentals over hype. It explores new strategies for growth, focusing on organic marketing, community building, and cost-effective customer engagement methods.
No surprise, but on the chart of who/what is generating buzz, Media is decreasing as Influencers grow. Influencers are a significantly larger percent than celebrities. One of my insights from this is if your brand can latch on to a growing channel and figure it out in a way that works for your brand as it continues to grow you have a greater chance that you will grow with the channel category vs over investing in a category that is decreasing.
Cultural relevance alone is insufficient for brand success. Many once-hot independent brands have recently closed despite their popularity, indicating that buzz doesn't guarantee financial stability. A big part of this is figuring out your financial model. An example is when you rely on a department store or single large boutique and they go under or aren’t able to pay (think of Barney’s NY or Matchesfashion closing.) You could lose out on a lot of unpaid PO1s which could be the downfall of your brand financially.
There's a shift towards organic marketing and community building. This has to be authentic and can’t be faked. Consumers are really smart (yes we are!) and don’t want to be fooled or taken advantage of.
Word-of-mouth and organic influencer strategies are becoming more valuable. Polène, for example, prioritizes product quality and relationship-building with influencers over paid advertising. Earlier this week I wrote about Métier (see here) which is another brand that does this well.
Fashion shows and traditional runway presentations are becoming less central to brand strategies. Some brands, like Bode are opting for more intimate and targeted customer engagement methods.
Sustainable growth is key. The article suggests that a more modest marketing budget and steadier pace of revenue growth may be better suited to today's challenging market conditions.
The cost of customer acquisition has significantly increased. Brands are now spending more than three times the amount to acquire each customer compared to a decade ago, necessitating new approaches to marketing and growth.
A few brands to keep your eyes on (note, I do not have exact numbers. I’m speculating and using insights from articles etc.)
Dôen - is nearing $100 million as referenced in this WWD article
Jenni Kayne - around $140 million in revenue
Based on this article in Vogue Business by Madeline Schulz I assume Khaite is right around the $100 million revenue mark or slightly higher.
In 2018 it was speculated that Sézane was around $100 million in annual revenue according to WWD and mentioned in this recent Town & Country article.
For context, Reformation is around the $300 million mark.
New Collabs
Madhappy x Gap coming soon - whether it was an intended early post or accidental, it was posted on tiktok, everyone went wild, and then Gap posted this Instagram and this with Devon Lee Carlson and more details including the launch date of August 2nd at 9am PT. I hope the launch operation is executed well including not secretly launching early and selling out too quickly of key items (a la Gap x Doen.) The key items from this collab seem to be the Mad Boat & Tote bag and the Hoodie with stitching or zip-up.
Hill House Home x U Beauty on the Unready Set. Brilliant collab and a great gift (for yourself or a hostess gift or a bridesmaid gift…) It comes with Hill House Hotel Robe in Pastel Trellis, Heart Claw Clip, The MANTLE Skin Conditioning Wash 150ml, SUPER Hydrator 15ml, and PLASMA Lip Compound 15ml in clear Universal. (Reminder, you can use code SHAPIRO20 for 20% off at Ubeauty.)
Alo x American Ballet Theater for the ultimate in ballet core.
Next Erewhon Smoothie is Sabrina Carpenter’s “Short N’ Sweet” with Agent Nateur**. (via
)
New Launches
Big news this week is the launch of Blake Brown Beauty at Target. If the name Blake Brown doesn’t sound familiar, how about Blake Lively? Brown is her real last name. My first thoughts:
Ha! I go right for the Fashion - if you look at the Hero video on her site I noticed she is wearing an Acne Studios leather jacket. That is a gorgeous jacket and I love Acne Studios. Interesting to have a logo right there “promoting” another brand.
I think it was a really smart move to launch with Target from day one.
There is a hook - her secret is that she skips conditioner in favor of a mask and treats the hair mask just like she would a conditioner. This is setting up this sku to potentially be the hero item. Goal would be to get every customer to try this.
Has apparently been working on this project for 7 years but this is a great moment to be promoting - she is out there a lot between being besties with Taylor Swift, Ryan Reynold’s “Deadpool” and her new movie “It Ends With Us”
Relaunch: Ulta Beauty relaunches their private label collection “Ulta Beauty Collection” with a Gen Z focus.
Jennifer Aniston announces that her hair care line, Lolavie, will be available at Target via the Ulta at Target program.
New Store Openings and Pop-Ups
Leset teases a store opening in NYC. ~ My favorite from the brand is this tshirt which is thinner than their standard Margo and has the best & softest drape. And the New Arrivals have looked fantastic - comfortable pieces that create a polished pulled together outfit.
Nike x Jacquemus pop-up lands in Selfridges with a shiny silver oversized gym.
From November 7th to January 2nd Loro Piana will takeover Harrods and they will be opening two permanent locations in the department store. The takeover is in celebration of Harrods’ 100th Anniversary. I would expect some exclusive high-end luxury gift items.
Luminary and She Did That, are partnering to host their two-day 2024 Black Business Month Experience, held at Luminary’s HQ in NYC. The first day, August 6, is a ticketed event featuring programming for SMB owners. The second day, August 7, will feature a Black-owned marketplace that is free and open to the public featuring fashion, beauty, food, and lifestyle brands. (thank you to Courtney Forrest for reaching out so I could share.)
The Business Section
More Fashion & Beauty Business News
The final closure for Fred Segal in California - they have closed their last 2 locations in CA.
Winky Lux has finalized a majority investment from private equity firm Core Industrial Partners. This investment will help Winky Lux to fund the expansion of both its digital and brick-and-mortar retail channels.
People in the News
Frances Howie was named Creative Director at Fforme. Howie graduated from Central St. Martins, was a design assistant to Alber Elbaz at Lanvin and later at Stella McCartney where she eventually was named design director.
David Koma, another Central St. Martins graduate, was named the Creative Director at Blumarine.
The Glossy Storytellers is a list of some of the most creative minds behind the fashion and beauty campaigns this year.
Fashion Finds
Mary Janes lining up for Fall - I loved that this was a trend last fall, this fall I think it will be treated more of a classic but it is here to stay.
Red is the color of the moment:
Freda Salvador’s newest launch is the fittingly named Aubrey
J. Crew’s latest in crystal mesh is really well done
less sweet, Le Mondé Beryl’s shiny Stella has a crisp v opening to make it a little edgier.
Cos with a pointe shoe-esque pleat at the toe box
Larroudé iterated on their famous Blair mary jane with studs (back to black for this one)
Alaia’s popular east-west handbag, Le Teckel is back in stock on Net in some really beautiful shades. (
the color combo here immediately made me think of you.)J.Crew new dresses are 10 out of 10. These are my favorites:
On pre-order but this ruched dress is perfection in the blue and white stripe. (thought I was going to say all black? of course that is what I would get.)
I wore a dress almost identical to this in gold crochet to my rehearsal dinner.
A dress for casual work day or running errands. This denim dress would also be great unbuttoned and style over pants and a tank or tshirt.
This feels like a casual Alaia in the best way. I’d pair with my Onitsuka Tigers.
I’m bringing this dress* on my trip because its crinkle fabric makes it easy to pack and it will keep me cool.
Red shirt dress with waist tie is another great work dress.
Doen’s newest drop is today 8/1 at 8am PT. We start to see transitional fall items and the barn jacket is sure to be a hit.
A few other barn jackets caught my attention this week.
posted this beauty (love the shape! and it also comes in Navy) and I love these vintage J.Crew here and here. This Sézane jacket feels like a trench coat and barn jacket mash-up. Here are a few left of the Toteme Barn Jacket on sale.I’m going to be over assorted in jackets this season. I know it. Have you seen this green suede one? It is so good!!!
.@databutmakeitfashion shares that we are still very into bag charms. I still love them for personalization and bringing joy to accessorizing. Here is a fun edit I’ve been adding to.
PSA: The Loeffler Randall Rhys crystal jelly sandal is back in stock after selling out so quickly earlier this season. I think this year we are going to enjoy wearing our summer sandals and jelly shoes well into September so make sure you have a pair you love.
These sandals in suede would be a great transitional pair (I own in leather and love) or celebrate the 13th Birthday of Freda Salvador with this great studded fisherman sandal that would transition well with a little sock.
🛍️ Quick note: I write a lot (too much good stuff to share!) so if you’re reading via email only, you may need to click through to the web version or read on the Substack app. I promise it will be worth it. 🛍️
What else I ❤️️
My favorite fashion fit in the Paris Olympics this week - the US Women’s Gymnastics leotards. They have almost 6,400 crystals each and use 6 colors of crystals. They would cost $5,000! There is a replica version for $89.99 without sleeves by GK Elite who produced the competition leotards.
Loved reading about Closely Crafted, a non-profit founded in 2022 by milliner Gigi Burris to educate artisans and is launching a pilot apprenticeship program. You can read more about the program and other artisans and crafts in the NYTimes article “In a World of Fast Fashion, They Take Pride in Taking Their Time.”
In mid September, to coincide with Fashion Weeks, Hulu will be streaming a Vogue documentary all about 90s Fashion. A six part series titled: In Vogue: the 90s.
Lauren Sherman was interviewed by Pete Nordstrom on the Nordy Pod this week. It was a great episode on taste, style and what is happening in retail today and opportunities for improvement.
- interviewed Sofie Pavitt, founder of Sofie Pavitt Skincare Studio, for the podcast Creative Juicy. It is a great listen on her pivot from handbag designer to esthetician and starting her line of products. Sofie Pavitt products are incredibly innovative and I love how Pavitt is focused on education and understanding how to use the products for your own skin concerns. The branding is so clean too. It stands out in the simplest way.
- wrote about Demetra Dias in a recent After School and now Dias and other young TikTokers and Influencers got a WSJ feature written by Chavie Lieber. “Teen Girls Are Spending Big. She Tells Them What to Buy.” (gift link to read behind paywall.)
I’ve been seeing more denim this week, especially the barrel legs. Feeling like this style is moving towards classic.
I recently rewatched the pilot of the original Beverly Hills 90210, and now after reading about the passing of Francine Pascal I want to re-read Sweet Valley High. Anyone else love that series?
What's Next?
Sunday I’ll be rounding up some favorite Substacks from this week and I’ve spotted another micro trend I’ll be sharing. On the topic of trends I loved listening to this podcast on why we are obsessed with trend stories from Alyssa Vingan on the New Garde speaking with Amanda Mull. I also love following all the stories on the Paris Olympics but especially about LVMH and fashion of course. (gift link to read Rachel Tashjian’s Wa Po piece behind paywall.)
Thanks for reading Deep Dive Edition 176
Sarah Shapiro
Recent Posts:
❤️ If you enjoyed this deep dive into all the latest retail news please click the like button at the bottom of this post so others can discover it.
📧 Maybe even share with someone else who would enjoy.
📱Find Sarah’s Retail Diary on Instagram
💬 If you are on the Substack app or platform join the chat and I’m happy to respond to any questions in the chat or comments.
You can email me at sarahshapiro@substack.com with any requests or thoughts.
Thanks for reading Sarah’s Retail Diary! Subscribe to receive new posts and support my work.
FYI: I use affiliate links where applicable which means I may get a small commission from things you buy (at no cost to you.) Thank you for supporting my work and trusting me. Love that we can enjoy Fashion & Retail together in this space.
Items marked with * have been kindly gifted by brands. Thoughts, selections, and reviews are my own.
**Amazon Affiliate link.
POs = Purchase Orders
I read all 100+ Sweet Valley High books that were published up until I was in Grade 6 or so. RIP!
On the BoF post about brand buzz: I was actually surprised that media was still at the top of the heap (although it’s declining). I would have thought that influencers would be at the top. Here in Canada, the media has been decimated, but perhaps it’s even worse here than other markets.