Aimé Leon Dore is Blowing Up as a Designer so Why are they Getting into Resale and How are they Doing it so Successfully?
On the morning of Friday, February 4, Aimé Leon Dore (ALD) dropped a new collection entitled Installment II. By the time I checked out the collection – only a few hours after release – the it was almost sold out. The interesting thing about Installment II is that it was not a limited run of new merchandise from the young but rightfully hyped designer or some exclusive collaboration. It was a carefully curated and painstakingly assembled collection of vintage merchandise that embodies ALD’s late-twentieth century NYC vibe. One of the hottest brands in fashion right now dove headfirst into vintage resale and executed it perfectly.
The significance of this accomplishment and what it indicates about the direction in which fashion is heading cannot be understated. While resale and design exist as two halves of the same industry, supporting each other in a symbiotic relationship, they each require very different skill sets to keep the lights on, much less find success. So many people fail at design or resale that when success in either is achieved it seems counterintuitive to attempt the other. Yet at its core level, aren’t they both just selling fashion?
That’s the question that designers are starting to ask themselves.The meteoric rise of the resale market over the past decade has wetted designers appetites to get in on the action. If I’ve built a successful brand selling my designs, why can’t I bolster that success by adding complementary vintage goods into the mix? What’s more, if others are making money reselling my designs then I should be re-selling them.
It is important to note that designers have practiced resale on a limited scale for a long time. Ralph Lauren has always offered vintage goods at his flagship stores, especially at RRL. When J.Crew opened The Liquor Store in 2008, they offered a wide range of vintage merchandise. However, these attempts were always more an extension of merchandising, peppering in vintage among original products to increase the ambiance. What brands are attempting now requires far more resource investment and risk. Resale is becoming a legitimate portion of their business strategies.
These full blow forays into resale fall under two distinct categories. Designers like ALD are setting up classic vintage resale markets within their brands. They buy old products from other brands that match the vibe and aesthetic of their brands then resell them. The resell can be a gradual, constant offering or they can come in periodic drops. That latter strategy appears to be the secret to ALD’s success as it allows for a build up of hype and comes with less risk of goods ligering.
The other category is essentially designers attempting to take control of their own brand’s resale market. They procure their own merchandise, either through buybacks directly from customers or from traditional resellers, then offer them for sale alongside new merchandise. This strategy has positive environmental implications because it is the first big step towards a closed loop fashion ecosystem. Other brands want to trade on the resale hype their products carry. It is essentially the same business strategy that Ticketmaster figured out long ago with Stub Hub.
Consumer confidence is also a factor working in favor of brands getting into the resale game. With the prevalence of fakes in the resale industry, buying resale from brands provides a piece of mind for the consumer. There is a certain assurance that they’re getting a legitimate product when they’re buying resale from the brand that produced the product. Despite how much resale companies invest in verification, they will never be able to buy the confidence consumers have in brands reselling their own goods.
Whether their motivation is altruistic, capitalistic, or some combination of both, more and more brands are testing the resale waters. Conscientiousness is steadily increasing among fashion consumers, especially among the much sought after Gen Z market. Resale is a good look to these consumers and therefore a sound business strategy. Sourcing raw materials, managing production, and the logistics of getting goods to market account for a majority of financial risk fashion brands face. Turning an additional profit on items you or others have already produced is extremely enticing.
However, there are plenty of logistical concerns to address before brands can make a full commitment. Every brand has a unique size, market leverage, and hype capital to take into account. Large heritage brands face very different challenges than newer, smaller brands but the tenuous line between success and failure is the same for every brand. The move towards in-house resale is slow but building momentum. Brands are increasingly deciding that the juice is worth the squeeze.
For any designer exploring the idea of getting into resale, the first step has to be changing your mindset on how selling fashion works. Trying to tack a resale division onto your existing company isn’t going to work. Resale and original product have to meld together in a coherent brand aesthetic and business strategy. The decision to stick to your own brand with in-house resale or create a vintage marketplace has to match what your brand is already doing and where it exists in the fashion market.
ALD found what works best for them in creating a vintage collection drop that fits seamlessly into their brand aesthetic. Even though the entire collection has sold out by the time I wrote this article the following Monday, they still have every piece displayed on their website. This is brilliant merchandising because it makes the collection more than just a set of vintage goods up for sale, Installment II is an interactive art installation that expresses the vibe ALD is curating. That is where the future of resale for designers is heading, using it as a tool to articulate their vision – i.e. we care about the environment and our products last forever or look at how cool NYC was in the 1980s. More importantly, a tool that consumers can buy.