Fashion startups: Surviving and the investment potential

At the Vogue Business and Google Summit, young designers who have managed to weather the pandemic share the processes and initiatives they have put in place that have allowed them to survive and flourish, while investors discuss the kinds of companies they’re rallying behind. Fashion’s next generation on surviving the pandemic Bryn Taubensee, Claire Sullivan and Patric DiCaprio, co-founders of the New York-based label Vaquera, say growing their direct-to-consumer channel has been crucial to their survival, giving them more control, but alo requiring investment and a long-term commitment. Wholesale still remains a key channel, they say. The key to success is working closely together with retailers on the right orders with the right terms and delivery times. Retailers must also be more flexible and take more responsibility for supporting the brands they choose to stock, says DiCaprio, citing Dover Street Market Paris, who brought Vaquera into its fold, who has factories in France, Portugal and Turkey, which are used to help manufacture products. Designers discussed how the human aspect of a physical fashion show is irreplaceable because they can help designers present their collections to buyers clearly, and communicate their vision to attendees in an all-encompassing 3D manner, according to Arnaud Vaillant, co-founder and chief executive of the French fashion label Coperni, which staged a physical show in Paris for Spring/Summer 2021. Social media initiatives and creative collaborations can help brands reach their communities in an affordable way, says designer Feng Chen Wang. When done well, it lets followers feel like they’re part of something, which sets emerging labels apart from big luxury houses that tend to be less inclusive, adds DiCaprio, and that can help spread brand awareness and drive sales. Investing in the next generation of fashion The pandemic has accelerated the innovation pipelines according to the startups and investors who spoke with innovation editor Maghan McDowell. Companies are no longer looking just to experiment, says Jackie Trebilcock, managing director of the New York Fashion Tech Lab. To secure fashion brand partnerships, startups should be able to demonstrate tangible business returns to potential partners. Additionally, companies should focus on short-term innovation to the customer experience, says Carol Hilsum, senior director of product innovation at Farfetch Dream Assembly. Key areas of focus for innovation and investment include elevating the home, clean beauty, beauty for younger demographics, 3D design and digital fashion, according to both Hilsum and Anu Duggal, founding partner of Female Founders Fund. And finally, liquidity is king. Rather than taking unnecessary investment in pursuit of bloated user numbers, companies should maintain sufficient capital at all times to build stability and allow for growth, advises Eric Fisch, head of retail and apparel at HSBC Bank. This session was sponsored by HSBC. To receive the Vogue Business newsletter, sign up here. Comments, questions or feedback? Email us at feedback@voguebusiness.com. More on this topic: What an inspiring digital fashion week looks like How brands are connecting with customers in lockdown The pre-order model: Why it’s working

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Fashion’s next generation on surviving the pandemic

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