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Building a Fashion Company on the Internet? Stop. Just stop.

melanie.io

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Re: Building a Fashion Company on the Internet? Stop. Just stop.

#31

Post by epicviking »

colinloretz wrote: post #24

The best example of a fashion startup I've seen is Indochino (www.indochino.com). They were faced with many of these issues and have gone and taken full control of their end to end supply chain. They are selling "physical fucking product" but they are making it more personalized and custom tailored (pardon the pun), direct to the customer. I don't have much need for wearing a suit these days, but the moment I do, the…

I actually think Indochino is an example of someone focusing too much on the "physical fucking product" and missing some chances to do some real innovative stuff. They could potentially offer some really neat customizations, possibly even a full "internet bespoke tailor experience" kind of thing, but they avoid that in favor of more dumbed down aspirational product that tries to sell itself as something it isn't.

As for wanting to learn more, I'm currently teaching a university of reddit course on menswear customs, history, and how tos. Its under menswear 101. Go check it out.

Re: Building a Fashion Company on the Internet? Stop. Just stop.

#32

Post by epicviking »

diolpah wrote: post #19

This is a good read, and the author hits on some solid observations about the online apparel industry. That said, I am shocked about the claim that a single VC has funded an apparel retailer recently. I am in this industry, and I can assure you that it is about as unsexy as one could get from a VC perspective. I would love to know who all these recently funded apparel businesses are.

Gilt is VC funded I believe

Re: Building a Fashion Company on the Internet? Stop. Just stop.

#33

Post by jfarmer »

grimen wrote: post #16
rokhayakebe wrote: post #14

Earlier quoted context omitted.

You may want to give her more credit. She did a fashion startup for a few years. About the 3-8% affiliate fees, that's not a viable business model. You would have to deliver north of 15M dollars to get 1M dollars. Assuming the average ticket is $150, you need 100,000 conversion. The average internet conversion rate is 3%. So you need 3M uniques. That is not very easy to get. Even if you are buying it.

We got 30-40% on each sale. Not sure it's a US issue - in Europe it's 30%+.

What kind of products were you linking to that could afford a hit of 30-40% against their gross margins?

Re: Building a Fashion Company on the Internet? Stop. Just stop.

#34

Post by epicviking »

andreasklinger wrote: post #29

I run a fashion startup involving sampling, serial production and fulfillment. I couldn't agree more with Melanie. The risk aspect sizing and inventory management is a bit downplayed imho. Stocking breaks necks. Good merchandising is more important than breathing oxygen. Btw i would also appreciate HNs feedback on my company: http://www.lookk.com - if there is interest i could do a "show hn" post.

You really would benefit from sorting the items you have for sale. At the least Man and Woman.

Re: Building a Fashion Company on the Internet? Stop. Just stop.

#35

Post by diolpah »

epicviking wrote: post #32
diolpah wrote: post #19

This is a good read, and the author hits on some solid observations about the online apparel industry. That said, I am shocked about the claim that a single VC has funded an apparel retailer recently. I am in this industry, and I can assure you that it is about as unsexy as one could get from a VC perspective. I would love to know who all these recently funded apparel businesses are.

Gilt is VC funded I believe

Thank you. For some reason I had assumed they weren't venture-backed.

Re: Building a Fashion Company on the Internet? Stop. Just stop.

#36

Post by [deleted] »

epicviking wrote: post #15
donw wrote: post #6

Earlier quoted context omitted.

Yes, fashion is a huge industry in the US, and you can make a ton of money in the market. By just being a middleman, you're looking at margins in the 10% region. Enough to build a business, but not a game-changer. If you target production and supply-chain problems, which are far harder, then you can build a business with margins north of 40%. Not only that, but because you've solved some seriously hard problems, you'…

I don't think the people going in to fashion start ups are going in to them to make large profits. It seems to me they are motivated by wanting creative control over some product or line of products and this is just another way to go about doing that.

[deleted]

Re: Building a Fashion Company on the Internet? Stop. Just stop.

#37

Post by redthrowaway »

jfarmer wrote: post #26
robozome wrote: post #21

Earlier quoted context omitted.

PS - if your site demands this: Access my basic information: name, profile picture, gender, networks, user ID, list of friends, and any other information I've shared with everyone. Send me email Post status messages, notes, photos, and videos to my Wall Access my data any time Everlane may access my data when I'm not using the application [and more....] I instantly discard the possibility of ever signing up for an ac…

We've tested the page, and this converts no worse than the alternatives.

What were the alternatives? Requests like that are a huge turn-off for me. Ask me for my email, sure. Ask for the ability to post spam on my wall and I've just closed the tab. It may convert alright, but it also drives away potential customers. Why not give me the option to subscribe by email?

Re: Building a Fashion Company on the Internet? Stop. Just stop.

#38

Post by jfarmer »

diolpah wrote: post #19

This is a good read, and the author hits on some solid observations about the online apparel industry. That said, I am shocked about the claim that a single VC has funded an apparel retailer recently. I am in this industry, and I can assure you that it is about as unsexy as one could get from a VC perspective. I would love to know who all these recently funded apparel businesses are.

Uhhh, what? Not all apparel, but:

ShoeDazzle, BeachMint (StyleMint/JewelMint), Rent the Runway, Warby Parker, Gilt, One King's Lane, Send the Trend

Anyhow, the list goes on, and it includes us at Everlane (http://www.everlane.com). Some of these (including us) are vertically integrated.

Re: Building a Fashion Company on the Internet? Stop. Just stop.

#39

Post by diolpah »

jfarmer wrote: post #38
diolpah wrote: post #19

This is a good read, and the author hits on some solid observations about the online apparel industry. That said, I am shocked about the claim that a single VC has funded an apparel retailer recently. I am in this industry, and I can assure you that it is about as unsexy as one could get from a VC perspective. I would love to know who all these recently funded apparel businesses are.

Uhhh, what? Not all apparel, but: ShoeDazzle, BeachMint (StyleMint/JewelMint), Rent the Runway, Warby Parker, Gilt, One King's Lane, Send the Trend Anyhow, the list goes on, and it includes us at Everlane ( http://www.everlane.com ). Some of these (including us) are vertically integrated.

It seems I'm completely out of the loop, having heard of none of these except for Gilt. Thank you.

Re: Building a Fashion Company on the Internet? Stop. Just stop.

#40

Post by jfarmer »

diolpah wrote: post #39
jfarmer wrote: post #38

Earlier quoted context omitted.

Uhhh, what? Not all apparel, but: ShoeDazzle, BeachMint (StyleMint/JewelMint), Rent the Runway, Warby Parker, Gilt, One King's Lane, Send the Trend Anyhow, the list goes on, and it includes us at Everlane ( http://www.everlane.com ). Some of these (including us) are vertically integrated.

It seems I'm completely out of the loop, having heard of none of these except for Gilt. Thank you.

I forgot Trunk Club

http://allthingsd.com/20110908/trunk-club-raises-11-million-...

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