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Nasty Gal initially started out by selling vintage clothes which happen to have huge margins. One piece she purchased for $8 sold for $1000. So I'm sure the mar
by Axsuul 14y ago
Nasty Gal initially started out by selling vintage clothes which happen to have huge margins. One piece she purchased for $8 sold for $1000. So I'm sure the margins are still there now that Nasty Gal is trying to become more of a brand. It wouldn't make business sense to abandon a profitable strategy only to shift and scale to a non-profitable one.
- rdouble 14y agoThat is how most of the fashion sites start out. There's some point in time where they find a desperate luxury goods manufacturer willing to give them a deal, or meet a guy who inherited his family's shirt factory and wants to try out something new, or they get lucky selling a few pieces of vintage clothing. Then for a while, the site does very well. Eventually they run out of high margin stuff to sell, because they literally run out of the stuff (in the case of vintage clothing) or their suppliers start raising their prices. Then they need to sell more stuff, which requires more employees, and bigger warehouses, which continues to eat at the margins. There's also many copy cat fashion sites, since between 2009-present "fashion internet" seems to have been a trend for fresh MBA grads. I'm not really sure how they get started, but I'm pretty confident they also don't make any money.
- OGinparadise 14y agoNasty Gal initially started out by selling vintage clothes which happen to have huge margins. One piece she purchased for $8 sold for $1000. what about the other 100 she purchased at $150 and still are not sold? I made the numbers up but you cannot use an extreme case and assume the same applies to all.