This week, a look at how The Hamptons are becoming an evergreen retail location for brands. Also, a guide to keeping a tight financial grip on your brand, a new funding round and executive shifts to know.
For summer, the Hamptons have welcomed a variety of new luxury and niche fashion brands. They include celeb-favorite Staud, Khaite, Gucci with its refreshed ocean-inspired store and the sustainable fashion lines sold at Road to Nowhere. Me + Em, Veronica Beard and Balmain, with its resort-worthy pop-up at the Pridwin Hotel, have also moved in. Of those, the stores of Staud, Gucci, Me + Em and Veronica Beard are set to be open year-round.
“The fabric of The Hamptons has changed tremendously post-Covid,” said Pierre Dupreelle, managing director and partner at consulting company Boston Consulting Group. “The Hamptons has become a primary residence for many, making it a much more relevant destination year-round.”
This shift has created a fertile ground for luxury brands to set up shop and activate local communities through targeted events, Dupreelle said. “These activations are about engaging specific micro-communities,” he said. For example, in 2023, Hermès launched a saddle in the Hamptons through a gathering at a horse farm, inviting equestrians and celebrities.
For its part, Handvaerk, the 11-year-old luxury apparel basics brand co-founded by Esteban Saba and Petra Brichnacova, opened its first flagship store — a 600-square-foot space in Southampton — in May. It was a strategic move, Saba said. “Our customer base includes business owners, CEOs and tech professionals, many of whom spend time in the Hamptons. And this [location] aligns well with our product offerings.”
Regarding the decision to open a year-round, versus seasonal, store, Saba said, “A lot of people have second homes here in the Hamptons.”
“Our insights show that people still want to shop in-store, to touch and feel the products. So, going where the customers are, like The Hamptons, is crucial,” said Josh Kampel, CEO of the media platform Worth Media Group. “Many people have migrated there based on the new nature of work, making it an important market within an hour of major metros.”
“Customers who have only known us through online purchases or third-party retailers now have the opportunity to touch and feel our products, and [engage] with the brand,” said Saba. This direct interaction is set to foster more customer satisfaction and loyal relationships, according to Saba.
Looking ahead, Handvaerk plans to open additional stores in New York City and Japan.
Handvaerk’s secret to sustainable growth
Financial discipline has been pivotal in Handvaerk’s growth. The brand’s revenue was $4.55 million last year. Saba’s background in investment banking at Merrill Lynch and JP Morgan provided a solid foundation for the brand’s operations, he said. “We run a tight ship, with no VC funding or debt, which has allowed us to navigate through challenging times. My background in finance has been invaluable in managing our growth sustainably,” Saba said.
He added, “Being extremely organized with your cash flow and expected revenues is crucial. Avoiding over-investment and maintaining financial flexibility has been key to our stability and growth.”
Handvaerk’s retail partners include Bergdorf Goodman, Neiman Marcus and Mr. Porter.
“This year, wholesale is seeing single-digit growth due to the overall industry situation, but we still see growth. Our online business is expected to grow in the teens this year, driven by investments in online marketing and the addition of our retail store,” Saba said. “Most of our growth this year will come from [owned] retail since we had no retail revenue last year.”
According to fashion strategy consultant Naeem Kashmiri, “The more that [brand founders] understand financial concepts, the better equipped they’ll be to make informed decisions, establish clear spending guidelines, track expenses and avoid impulsive purchases.” She advised brand leaders to “conduct monthly or quarterly financial reviews to monitor performance, identify areas for improvement and adapt plans as needed.”
New research: Marketing that resonates with Gen Z
Today, winning over Gen Z requires a nuanced marketing approach that values inclusivity, sustainability and authentic storytelling, according to a new Gen-Z marketing report by Launchmetrics.
“It’s been eye-opening to see how inclusivity and diversity in product offerings resonate strongly with the [Gen Z] audience,” said Alison Bringé, CMO at Launchmetrics, pointing to the report’s ranking of Gen Z’s favorite brands. Skims, which sells styles in sizes XXS-5X and in 10 skin-tone-matching shades, ranked as Gen Z’s No. 1 favorite premium brand.
Skims has also successfully tapped into culturally significant moments. “Partnering with [football player] Neymar [da Silva Santos Júnior] on [the brand’s men’s underwear launch in October] leverages the correlation between sports and mental health, creating a buzz and engaging the audience effectively,” Bringé said. In 2023, Skims was expected to reach net sales of $750 million, marking an increase from around $500 million the year before.
Launchmetrics’ report also showed that comfort-focused product categories including athleisure and sneakers are driving media impact value for brands. MIV is Launchmetrics’ proprietary algorithm that quantifies the impact of media placements and mentions across various channels in the fashion, lifestyle and beauty industries.
Rounding out Gen Z’s top 5 favorite premium brands, based on MIV, were Calvin Klein, Levi’s, Lululemon and Coach.
“The kids aren’t kids anymore,” said Tom Garland, co-founder of creative growth company Edition Plus Partners. “Gen Z’s dependency on product quality over marketing is a major shift. They research and compare to find the best products, making it crucial for brands to creatively tell their stories and emphasize product excellence.”
Fashion funding
Julie Bornstein, along with co-founders Matt Fisher, Dan Cary, Lisa Green and Richard Kim, has raised a $50 million seed round co-led by Forerunner Ventures and Index Ventures, with participation from Google Ventures and True Ventures, to launch Daydream, an AI-powered platform set to revolutionize online shopping. Launching in beta this fall, Daydream will offer a personalized shopping experience with a vast high-quality branded fashion catalog, using advanced AI, machine learning and computer vision, according to the company.
“By starting with the core problem of developing search that actually understands the nuances of fashion, Daydream will help people who both love and hate shopping easily find what they are looking for,” said Lisa Green, co-founder and chief commercial officer of Daydream. “Customers have spent the last decade creating hacks to deal with the shortfalls of online shopping, and now we finally have the technology to solve all of these problems and create a joyful and helpful shopping process.”
Executive shifts
- Barry Bown has stepped down from his role as CEO of Footasylum to take up a consultancy position with Aurelius, the company’s owner. Bown joined Footasylum in 2018 following over 30 years at JD Sports including 14 years as CEO.
- British shoe and accessories brand Russell & Bromley has appointed Daniel Beardsworth-Shaw as its first creative director, marking the brand’s first move to in-house design in its 144-year history. Beardsworth-Shaw’s inaugural collection will debut in fall 2025.
- Saucony has appointed Joy Allen-Altimare as its new global CMO, responsible for global branding, direct-to-consumer strategies, advertising, digital strategies, international growth and the expansion of the brand’s heritage lifestyle business. Allen-Altimare will report directly to global brand president Rob Griffiths.
- Rowing Blazers has appointed Laura Willensky as its new CEO. Willensky’s leadership experience includes roles at Madewell, Janie & Jack, Away and J.Crew.
Inside Glossy’s coverage
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- Inside Arc’teryx’s big investment in circular fashion
- Deuxmoi taps Violet Grey to carry her first fragrance