👋Hello lovely people of the D2C Community! This is your host Berkay writing.
In the 12th episode of the D2CVille Podcast, we had a very fun conversation with Nora Gardner , founder of the NY-based women’s business clothing brand Nora Gardner NYC .
Nora wasn't your typical fashion guru. She had a degree in economics and spent six years in the world of investment banking. But one day, she found herself fed up with the lack of good workwear options.
She'd watch her male colleagues get custom suits while she struggled to find something that fit her style. In a country where you should dress to impress, Nora couldn't understand why the fashion industry ignored businesswomen like her. But luckily, this frustration and curiosity sparked her idea to start Nora Gardner NYC!
And hey, did you know that we share weekly insights from the D2C world? Subscribe to our newsletter to learn more about the stories of successful D2C entrepreneurs!
Without further ado, let me leave you with Isobel’s great entrepreneurial story. Sit back, relax, and enjoy!
Leaving the banking career behind and starting the brand As her interest in art and design grew during her college years, she discovered a passion for drawing and sewing, which led her to the idea of creating unique garments. Her obsession with designing clothes took hold, and she began to experiment by acquiring ill-fitting pieces, deconstructing them, and tailoring them to her preferences. As colleagues and acquaintances admired her outfits, she started organizing focus groups to gauge interest.
Simultaneously, she was pursuing an MBA to prepare for a future in entrepreneurship, diligently crafting a business plan. While immersed in market research, she noticed a fascinating trend: the rapid growth of women aged 35 to 55 with annual incomes exceeding $100,000, presenting an untapped market opportunity. Despite her initial hesitations about her lack of experience in the fashion industry, she realized others had faced similar challenges, reinforcing the need for her innovative concept.
With a meticulously crafted business plan in hand, she faced a crucial interview at her business school. During the interview, they expressed genuine interest in purchasing her dresses, boosting her confidence. Encouraged by this endorsement and her unwavering belief in the opportunity, she decided to take a significant risk, investing her hard-earned savings in launching the business, ultimately forgoing her original MBA plans. This bold leap into the unknown was a testament to her commitment to pursuing her entrepreneurial vision over an MBA.
Stress, anxiety, and risks She was determined to make her dream a reality, so she taught herself sewing, pattern making, and draping. She lived near the Fashion Institute of Technology (FIT) and used their books to learn what she needed. She worked hard to create a sample of her designs and was really excited about it.
She showed her family, but they thought the quality wasn't perfect and worried about her mental state. However, she didn't give up.
Her grandmother, who was a successful businesswoman, became her inspiration and support. Despite doubts from others, her grandmother's unwavering encouragement helped her keep going. She faced anxiety, unexpected expenses, and many late nights but persisted. She realized that sometimes, having a few people who believe in you is all you need to overcome challenges and achieve your dreams.
The first investment by a colleague When she shared her business dreams with a colleague at her office, he immediately and enthusiastically supported her. He didn't hesitate and offered to invest in her business right away, without requiring a formal business plan. This initial capital injection was the essential starting point for her entrepreneurial journey.
As her business started to grow and she needed financing for her first wholesale order, she naturally turned to her supportive colleague. However, the prevailing interest rates for a new business with limited revenue were very high and presented a significant challenge. Once again, her colleague came to her aid by investing and helping her secure the necessary funds. They formalized their partnership with a simple agreement, solidifying his role as a valuable and long-lasting contributor to her business success.
Initial steps His colleague was incredibly helpful, not only in shaping her business strategy but also in expanding her network. Their dedication went beyond a typical professional relationship and felt like that of a trusted friend and cherished family member.
He used his family's legal expertise, with his mother being a contract lawyer, to review and approve her contracts for free. His extensive business connections played a crucial role in making introductions and promoting her growing business. Being an early partner allowed him to see her character, work ethic, and unwavering integrity, which made his support even more meaningful.
In future funding rounds, he remained influential, helping to develop favorable terms while also protecting his own interests. Their respectful conversations led to outcomes that benefited everyone involved. The value of the initial term sheet extended well beyond its start and proved to be a crucial resource in negotiating subsequent agreements.
The second funding round - HBS Angels of NY After consistently selling out her collections, she realized the need for more capital to expand her business quickly. Despite facing high-interest rates, her venture had proven to be profitable and self-sustaining. She aimed to grow by opening physical stores, which required significant capital for leases, staffing, and inventory.
For six months, she dedicated herself to this goal, refining her plans and strategy. Her hard work paid off as she won prizes from startup boot camps and created a compelling presentation deck. Capital flowed in from various sources, including support from the Harvard Business School Angels of New York and a private equity fund in Philadelphia. These investors formed a strong and supportive network that helped her take her business to new heights.
With their support, she reached a major milestone by securing her first long-term lease on Madison Avenue. This success was soon followed by the opening of another store on Newbury Street in Boston, a significant step in pushing her business to greater success.
Starting with brick-and-mortar stores In contrast to the growing trend of digital-first businesses, she took a more traditional path. Starting without a digital background, she began her journey with a suitcase full of product samples. Her initial strategy involved visiting boutiques and leveraging her network of professional women in need of her clothing.
To give potential customers a hands-on experience with her products, she boldly opened a pop-up shop near Grand Central Terminal, even with a limited budget for digital strategies. This approach allowed her to assess critical factors like fit, quality, and customer reactions, all essential in the early stages of her business.
These pop-up shops provided valuable data, offering insights into customer preferences and behaviors that benefited her e-commerce efforts. She strategically placed these temporary retail spaces near hotels and tourist areas often visited by business travelers, using them as a potent customer acquisition strategy during her business's early growth.
The first customer A significant turning point came when her friend, who was in law school as she started her MBA journey, rented a ground-floor apartment in Hell's Kitchen. To save money, they downsized their living arrangement, and she converted a room with street access into a makeshift showroom. This unexpected setup was a cost-saving measure that helped her focus on maintaining a healthy bottom line.
Her first sale was to a friend who came to try on her clothing. However, her first sale to a stranger happened at a pop-up shop on the Lower East Side, which turned out to be the wrong location for her target customers. Three days there resulted in just one dress sale, a tough and disappointing experience. This mistake taught her an expensive lesson about the importance of the right retail location for a business's success.
After relocating to 47th and Lex, things started to improve. However, the journey was undeniably humbling, beginning with a significant investment and an initial setback.
Trying out many locations before finding the one The importance of a store's location, closely tied to the rent paid, was a well-known fact. She had a store on Madison Avenue, which had significant foot traffic but had an issue with commercial parking often obstructing visibility when UPS trucks stopped by. However, she negotiated a discounted rate for this prime real estate.
She took a practical approach, deciding that having 50% visibility across the street was a reasonable compromise, given the other foot traffic that passed by. At times, it felt like she was as much in the real estate business as she was in the fashion business, especially with her involvement in various pop-up shops and retail stores.
Selling online vs. offline The pandemic prompted her to reevaluate her business strategy after exiting store leases. Uncertainty hung in the air, with questions about office returns and changing dressing habits. Her brand was known for a formal style, featuring matching suits and personalized styling services, similar to the experience of shopping for men's dress shirts.
With physical stores temporarily closed, she faced a crucial decision: should she change the established image of her brand or recreate the in-store shopping experience online? She chose the latter and spent a year completely revamping the website. This transformation included adding more brands to offer complete looks and improving the online shopping experience with technology, apps, and personalized stylist consultations via Zoom. They also introduced a 24/7 customer service feature on the website.
Moving online offered greater scalability compared to physical stores. They used algorithms to predict customer preferences based on purchase history, creating tailored customer profiles and personalized product recommendations. They engaged with the community on social media to showcase different styling approaches and adapted fit guides to accommodate the variety of brands now available. Customer service was enhanced to effectively address fit and sizing inquiries.
AR and AI solutions for online shopping While she received numerous pitches for virtual fitting rooms and other technological innovations, she approached these ideas with a mix of open-mindedness and practicality. Her main concerns were the current effectiveness of the technology, its cost, and how it would immediately impact her business.
She understood the complexities of garment manufacturing, including the inherent variations introduced by human labor, even among different brands. Women's weight fluctuations added an extra layer of complexity to achieving precise sizing.
She knew her customers preferred trying on dresses in person and receiving styling advice and fit options during showroom visits. So, instead of constantly exploring new and potentially expensive tech options, she focused on finding the right technology to address her customers' needs, aligning effectively with their preferences and demands.
Returns and Exchanges Adapting to the changing landscape, they tackled the expected additional costs head-on. They introduced a unique "bracketing" concept, encouraging customers to buy a size up and a size down, effectively using the website as their personal fitting room. Some customers choose to order multiple sizes for various reasons, like wanting a looser fit on a specific day or planning for potential weight changes.
While their return rate did increase, reaching around 50% from the previous 10% during their physical store days, they acknowledged the costliness of this aspect. However, it was also true that their sales had seen a significant increase. To stay competitive, they closely monitored expenses like stocking fees and the costs of handling free returns.
Their focus had shifted from a real estate approach to logistics, shipping costs, and managing returns. But their primary goal remained the same: making sure the customer felt great. Their efforts were now concentrated on refining the details to achieve this goal.
The cost of sustainability Many customers, especially those with important events and specific product needs, find it challenging to prioritize sustainability when immediate alternatives aren't readily available. The brand's unwavering commitment to customer service was evident through size charts, detailed website information, and abundant photos to help customers make informed choices.
To align with sustainability goals, the brand implemented measures like using recycled packaging and introduced a restocking fee to encourage mindful choices. Their main sustainability focus was on creating long-lasting products, reducing the likelihood of items ending up in landfills. Their ultimate goal was to produce exceptionally high-quality items meant to last for generations. While the carbon footprint was important, it hadn't been the primary focus in the past.
ICP and social media The brand achieved significant success through social media platforms, especially Facebook and Instagram, as effective channels for reaching their audience. They also increased their presence on LinkedIn, recognizing their customer base's active engagement there. Their focus shifted to creating valuable content on LinkedIn, primarily as a brand-building effort, even if immediate conversion rates weren't necessarily high.
Most posts were made through the brand's official accounts, with occasional resharing of exceptional content. They closely monitored work-from-home trends due to the ongoing transition back to office work, aiming to guide their followers on work attire choices.
They actively engaged with the community and supported fellow business owners, especially women, positioning themselves as community cheerleaders rather than indulging in excessive self-promotion. They acknowledged noteworthy team accomplishments, highlighting collective excellence, like curating a fantastic selection of uniforms for entry-level lawyers, avoiding overt self-promotion.
Matrix of best-selling products She emphasized the importance of staying connected with customers and providing valuable insights. Just before the call, she messaged her team with an idea for LinkedIn: engage with customers from different industries and conduct interviews about office attire. They would curate industry-specific looks and have professionals endorse them, aiming to boost people's confidence in their attire choices.
This new concept resembled a previous approach they used. They had a matrix that guided stylists in offering outfit recommendations for different industries and roles. Their plan was to bring this approach back.
On Facebook and Instagram, they encouraged customers to engage with the brand using the hashtag #ShearNora. Customers who shared their Nora clothing ensembles using #FYI received a $25 coupon. This practice allowed peers to see how others styled the brand's clothing in professional settings, reducing wardrobe anxiety and empowering women in various professional settings. Social platforms played a vital role in building a supportive community and offering valuable insights.
Dressing to impress in the US Dressing right for business meetings, especially for junior women in a firm or those aiming for significant roles, is crucial. It ensures they're prepared for client interactions and important meetings, leaving no doubts about their appearance and brand representation.
The brand's philosophy is clear: they aim to eliminate attire-related stress for women, enabling them to focus on their professional tasks without unnecessary worry. They provide a solution that addresses the pain of attire concerns, which is key to their business success.
They look forward to continuing their journey, helping women feel confident and empowered in their professional lives.
Inventory and fulfillment Their meticulous approach to tracking operations and logistics relies on extensive spreadsheets. They source fabric from international and domestic suppliers, prioritize low minimums to avoid excessive inventory, and maintain strong supplier relationships, allowing for swift turnaround times.
Identifying customers is facilitated by a decade's worth of shopping data, and they maintain 6 to 8 weeks of stock, focusing on core products while introducing new items in smaller quantities.
Preorders Their adoption of pre-orders aligns with their commitment to sustainability. They were excited about their upcoming Fall collection but considered holding off on pre-orders for entirely new styles to build anticipation for the launch. Their focus is on making products readily available when customers want them while efficiently managing their inventory.
If you reached this point, well, thank you! Please consider following D2CVille on social media and contacting us if you’d like to be a guest in one of these podcast episodes!
And if you’re looking for great women’s business clothing items, visit Nora Gardner NYC ! They have pretty cool stuff...
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