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They are able to provide cheaper pricing by avoiding the costs associated with physical retail outlets. That is their pitch, anyway. Everlane model: Cost to m

They are able to provide cheaper pricing by avoiding the costs associated with physical retail outlets. That is their pitch, anyway. Everlane model: Cost to make shirt + profit for everlane + shipping -> total cost Conventional clothing model: Cost to make shirt + profit for manufacturer + shipping + cost of operating retail outlet + profit for retail outlet -> total cost They are still outsourcing their manufacturing so the above isn't completely accurate, but it's close. This is the future of the clothing business and I for one am very happy about it.

justjimmy 14y ago
It'll be interesting to see how they will handle scaling. Selling T-Shirts is easy - what happens when other factors come in? Neck sizes, different size standardization (UK vs US), measurements, units/scales, suits, pants, female vs male. It's a whole can of worms and there are startups dedicated just to solve this measurement issue for clothing.
- gabemart 14y ago
  >It'll be interesting to see how they will handle scaling. Selling T-Shirts is easy As someone who is a non-standard size, I hope that new business models provide a much greater range of clothing sizes. Offering three or four sizes of T-shirts is profoundly ridiculous. They will only fit a small percentage of people well. I look forward to the day when you enter your height, neck, chest and waist measurement, specify your desired style of fit (slim/casual/loose) and they find the closest out of (perhaps) 20 sizes and send it to you. As a thin, tall person, it's virtually impossible to buy clothes that fit properly (even T-shirts). If someone provided a way to buy custom fit essentials, or even just a granular range of sizes, at internet-margin prices, I would sign up tomorrow.
larrys 14y ago
"cost of operating retail outlet" The cost of the retail outlet though is spread among many goods. While there are stores that are certainly devoted to one product (and run by the manufacturer or designer) there are more stores that contain many designers. So what what matters it the incremental cost of adding one extra product to the store and what their markup is on the goods. Also, you will most certainly sell more total products (and lower your costs) by having, in general, multiple channels for those products. Lastly, as the point I made in another reply here said, you can't discount the amount of what you are paying that goes to the designer for lending their name to the product or getting involved. Tiger Woods is paid to put his name on golf clubs. Ralph Lauren makes shirts and all sorts of goods. People like and buy the label. Some of it is about quality and some is about cache. By eliminating the retail outlet you only remove one part of the costs. "We eliminate the middleman" is a pitch that has been around for a long time. And yet, people still manage to do business selling through retail channels at the point of purchase. And there is certainly room for both.
eps 14y ago
... lower pricing

justjimmy 14y ago

It'll be interesting to see how they will handle scaling. Selling T-Shirts is easy - what happens when other factors come in? Neck sizes, different size standardization (UK vs US), measurements, units/scales, suits, pants, female vs male. It's a whole can of worms and there are startups dedicated just to solve this measurement issue for clothing.

gabemart 14y ago
>It'll be interesting to see how they will handle scaling. Selling T-Shirts is easy As someone who is a non-standard size, I hope that new business models provide a much greater range of clothing sizes. Offering three or four sizes of T-shirts is profoundly ridiculous. They will only fit a small percentage of people well. I look forward to the day when you enter your height, neck, chest and waist measurement, specify your desired style of fit (slim/casual/loose) and they find the closest out of (perhaps) 20 sizes and send it to you. As a thin, tall person, it's virtually impossible to buy clothes that fit properly (even T-shirts). If someone provided a way to buy custom fit essentials, or even just a granular range of sizes, at internet-margin prices, I would sign up tomorrow.

larrys 14y ago

"cost of operating retail outlet" The cost of the retail outlet though is spread among many goods. While there are stores that are certainly devoted to one product (and run by the manufacturer or designer) there are more stores that contain many designers. So what what matters it the incremental cost of adding one extra product to the store and what their markup is on the goods. Also, you will most certainly sell more total products (and lower your costs) by having, in general, multiple channels for those products. Lastly, as the point I made in another reply here said, you can't discount the amount of what you are paying that goes to the designer for lending their name to the product or getting involved. Tiger Woods is paid to put his name on golf clubs. Ralph Lauren makes shirts and all sorts of goods. People like and buy the label. Some of it is about quality and some is about cache. By eliminating the retail outlet you only remove one part of the costs. "We eliminate the middleman" is a pitch that has been around for a long time. And yet, people still manage to do business selling through retail channels at the point of purchase. And there is certainly room for both.

eps 14y ago

... lower pricing