Nasty Gal will today launch its own line of footwear, Shoe Cult, and is also eyeing intimates and swimwear for next year. The e-commerce pure-play is even beginning to contemplate real-world retail outposts.
“Exclusivity is important for me,” said Sophia Amoruso, the 29-year-old cofounder, chief executive officer and creative director of Nasty Gal. “Our consumer knows it’s the only place they can get this. The modern girl is less concerned with everything being a brand name. The stuff we’re designing has better sell-through [than third-party designers], but we will always continue to carry other designers. This is just the sprinkling on top.”
If Nasty Gal continues to thrive and executes on its ambitious plans, the five-year-old company could become one of the first online pure-plays to transcend its roots and become a fully developed fashion brand for a new age.
It’s unclear exactly how big the firm has grown. Some estimates place sales this year at $115 million, while others put the company’s top line at more than $300 million. Nasty Gal received a $9 million Series A round of funding in March 2012, followed by a $40 million Series B just five months later. According to industry sources, nastygal.com did more than $100 million in sales in 2012. The site’s growth has been explosive, with 2010 revenues of $6.5 million more than quadrupling to $28 million in 2011.
Half a million shoppers from 50 countries visit nastygal(dot)com on a monthly basis, and more than 30 percent of the site’s sales come from outside the U.S. The company is in the process of building a new headquarters in Los Angeles (it will be completed in the fall), and its first mobile app bowed last week.
Nasty Gal launched its in-house label on Aug. 1, 2012, with a denim collection, followed by the rollout of a full apparel line later that month, retailing from $80 to $400. Footwear, which has consistently been a solid part of the business, was the next logical step.
Shoe Cult will have 45 styles to start, followed by another 50 in September and 60 more to come in October. The collection includes pumps, platform sandals, booties, sneakers, sandals and flats, and will sell for $68 to $188.
In addition to the aesthetics; a lot of heavy metal work, quilted detailing, statement straps and colors and patterns ranging from silver, electric blue and red to leopard and black-and-white polka dots ; keeping the price point in line with the site’s offering was key for Amoruso.
Although the site will continue to carry shoes in a wholesale capacity from designers like Jeffrey Campbell and Sam Edelman, she saw a place in the market for fashion-forward styles that aren’t pumps for less than $150. She wanted to cater to her customer who is buying a $68 dress and often can’t spend an additional $200 on a pair of shoes.
Parkes, who previously held posts at Nike, MySpace and Levi’s, said about 20 percent of the product on nastygal(dot)com is footwear. This includes about 800 styles but come October, Shoe Cult will increase this selection by another 20 percent with 180 styles.
Parkes declined to comment on further investments, but he did explain where the money raised to date has been spent. He added that as the brand has developed its in-house product offering, there’s been significant investment in design and the way in which apparel and shoes are produced. The last piece has been a marketing and branding component.
“There’s not a lot between Victoria’s Secret and Kiki de Montparnasse, and we know how to design cool, weird s–t,” Amoruso said. In the coming months, she plans to appoint a director of nonapparel to grow the accessories portion of the business. The executive will focus on footwear and other accessories such as handbags and jewelry.
Amoruso maintains her own personal Instagram account that has more than 51,000 followers, and although she sees the value in the social channels, she wants to increasingly move the conversation with consumers onto the brand’s own digital flagship.
Another area she wants to concentrate on going forward is “real-world stuff” spanning fashion, music, culture and art-centric events and stores; whether this means pop-up shops or permanent freestanding doors.
source: wwd