Do people value top end craftsmen-ship or will they buy anything with a logo on it?
We all know that markups in luxury fashion can be ridiculously high. The journey from the factory to floor, gets items to be priced at higher than they cost.
Now E-commerce site Italic is betting that removing the branding and the mark-up will prove a hit with consumers. A big bet indeed!
The start-up’s members-only marketplace, which launched last Thursday, allows manufacturers that create products for luxury brands to sell directly to consumers without the LOGOs adding markups. Shoppers who pay a $120 annual membership fee can choose from a selection of unbranded luxury goods, from bags and wallets to prescription eyewear and leather jackets, produced by the same factories that count names like Prada, Givenchy, Celine and Burberry among their clients.
The company has raised $13 million in funding, from various top end investors. Over 100,000 people joined a waiting list to be notified when membership opens, with signups initially limited to the US, said company founder Jeremy Cai.
Upon launching, the platform will have nearly 60 styles live on the site, with a view to double this number by the end of the year. However, customers won’t find unbranded versions of the Gucci Dionysus bag or any of the latest Celine creations. All products sold on Italic will be unique and exclusive to the platform to avoid infringing on brands’ intellectual property / copyrighted designs.
The start-up joins a growing number of brands, including Everlane and Warby Parker, which provide a premium-feeling, minimally branded product at relatively affordable prices. Within the luxury sector, high-end retailers, including Mr Porter, Joseph and MatchesFashion, are expanding their private label collections, which tend to be priced below standard luxury fare.
Italic goes one step further, selling items that lack even the private label branding. The marketplace will instead focus on providing the infrastructure — from marketing, design and warehousing to customer support — to enable manufacturers to sell products directly. The company will take a commission on sales.
“We essentially do everything that brands do and more, but we do it for the manufacturers,” Cai said.
For example, Italic’s merchandising team will work with factories that have product and pattern libraries to tweak existing designs so they don’t mimic products already on the market. Italic also has two designers, alumni of Armani and Calvin Klein, to work with manufacturers that don’t have in-house creative teams.
“We are very careful about every single product that we sell being originally designed, you won’t find an exact product like it in the market,” Cai said. “We want breadth and coverage of a lot of different styles.”
Branding can be a powerful tool, especially in a sector like luxury, where purchases are emotional rather than practical. That’s especially true for “statement” products, like handbags.
“People buy branded products to be reassured of the quality and style of the item and also for their projected image: they somehow communicate to other people the style, sophistication and preferences of their owner,” said Mario Ortelli, managing partner of luxury advisors Ortelli & Co. “You want to feel and show that you are part of the brand story.”
But Cai doesn’t anticipate the manufacturers on Italic’s marketplace competing head to head with luxury brands.
“For a person who is going to buy a Gucci bag, we are never going to win them over with unbranded product,” he said. “That doesn’t mean in some avenue of their life, they wouldn’t be open to switching up their sheets or maybe a shirt, or a leather jacket, where they actually don’t like a logo on there.”
As well as geographical expansion and international shipping, the platform’s short term goals include expanding into product categories like activewear and beauty. The focus will remain on luxury, Cai said.
“The reason we want to start in luxury is because we can say to the customer: we can make premium product effectively and replace a lot of your aspirational shopping,” he said.
Lanvin has let go of artistic director Olivier Lapidus, less than a year after his initial appointment. The remaining in-house design team will be responsible for the women's collection until a replacement is found. The struggling brand has announced additional leadership changes: Joann Cheng, president of Fosun Fashion Group and chairman of the Lanvin board of directors, will become the interim chief executive of the house. Nicolas Druz, who has served as Lanvin general manager since 2017, will take up the new position of managing director of Fosun Fashion Group to "support the group's current and future business expansion in Europe." Ms Cheng continued "We sincerely thank Mr Druz and Mr Lapidus for their contributions to Lanvin's glorious heritage". "In seeking candidates for the permanent positions of CEO and artistic director, we want to ensure we find people who share the spirit of Lanvin. The re-launch of Lanvin with fresh talents, while adhering to the values that the brand has maintained since 1889, is fundamental to returning the maison to its rightful position at the top table of the world's most lauded and innovative fashion houses."
The series of shots, that are inspired by Kim & Kanye's tabloid images, have a real and wild feel at times. The campaign's fresh and raw approach has helped its trending online.
Nike's decision comes months after H&M closed down outlets in South Africa following protests against the infamous ad that featured a black child with a hoodie with the text “coolest monkey in the jungle.” Race remains a highly sensitive issue in South Africa more than two decades after the end of apartheid.
While the company didn’t comment on the temporary closure, it released a statement saying the firm “opposes discrimination and has a long-standing commitment to diversity, inclusion and respect.”
In the online video that went viral last week, a white man expressed his appreciation for the beach he was visiting by commenting that there weren’t any black people to be seen — using an offensive racial slur. He was promptly fired from the food producer that is owned by his family, Eyewitness News reported, adding that his wife works for Nike.
The stores have reopened as of Friday last week.