Podcast Summary: Beyond Fashion Business Episode: RETROFÊTE Founder's Step-by-Step Guide To Starting A Fashion Brand
Release Date: January 14, 2025
Host: Esteban Julian
Guest: Ohad Saroya, Founder of Retrofet

Introduction to Ohad Saroya and Retrofet

In this episode of the Beyond Fashion Business podcast, host Esteban Julian (referred to as Jeff in the transcript) engages in an in-depth conversation with Ohad Saroya, the founder of Retrofet. Retrofet is a globally recognized fashion brand known for its glamorous designs, frequently worn by celebrities worldwide. The discussion delves into Ohad’s journey of building Retrofet from the ground up, uncovering the secrets behind its sustained success, lessons learned from early mistakes, and Ohad’s unique approach to marketing and prioritization.

Ohad Saroya [00:54]: "Even if you come to the company, we are people that love what we do. We really wake up and you can see when we create clothes."

Ohad’s Background and Journey into Fashion

Ohad shares a comprehensive overview of his background, highlighting his early passion for fashion influenced by his upbringing in Israel and experiences working in a Diesel store in Tel Aviv. His initial ventures included assisting in his mother’s hair salon and experimenting with creating his own denim clothing to emulate the cool factor synonymous with Diesel.

Ohad Saroya [01:29]: "I danced for many years and my mother was having a hair salon and I used to help her. But fashion was always a big, big thing for me."

At 21, Ohad and his husband ventured into retail by opening their own store, Brunch, in Israel. After seven years, feeling constrained and yearning to realize his broader fashion dreams, Ohad relocated to New York, where they started a showroom, product development, and private label services for major companies.

Ohad Saroya [05:45]: "I didn't want to open a brand. I didn't want to be a designer, but I always plan to be a salesperson."

Keys to Success: People, Consistency, and Teamwork

A significant portion of the conversation focuses on the pivotal role of people and teamwork in Retrofet’s success. Ohad emphasizes the importance of a dedicated team and a supportive community, crediting his husband and key team members for their unwavering belief and contribution to the brand’s vision.

Ohad Saroya [08:05]: "It's an amazing group of people. It's need a village to make this dream come true and understand the consumer and keep pushing and really evolving."

Ohad also highlights consistency as a cornerstone of success. This involves maintaining a coherent brand DNA, reliable production schedules, and continuous engagement with both consumers and employees.

Challenges and Mistakes in Starting Retrofet

Reflecting on the early days, Ohad candidly discusses the mistakes that shaped Retrofet. One major misstep was the overproduction of samples, leading to inefficiencies and financial strains. Despite these challenges, these experiences provided invaluable lessons in product development and business management.

Ohad Saroya [35:07]: "We produce a crazy amount of sampling. 500 to 600 samples for a season."

Another critical lesson was the importance of understanding logistics, pricing, and margins. Ohad observed that many designers fail to manage these aspects effectively, ultimately hindering their brand’s longevity.

Ohad Saroya [21:02]: "Consistency is really the consistency and understand between creative to business."

Strategic Growth and Adaptation During the Pandemic

The pandemic posed unprecedented challenges for Retrofet, compelling Ohad and his team to pivot strategically. Recognizing the decline in demand for sequined dresses, they diversified their product line by introducing a versatile denim jacket, which became a pandemic-era staple and significantly bolstered the brand’s resilience.

Ohad Saroya [28:54]: "The denim jacket actually saved the brand during the pandemic. Because in the pandemic, we just sold the denim jacket. Nobody bought sequins dresses."

Additionally, the establishment of a robust Direct-to-Consumer (D2C) platform transformed Retrofet’s business model, enabling greater control over customer interactions and sales channels.

Importance of D2C and Wholesale Strategies

Ohad discusses the dual approach of leveraging both D2C and wholesale strategies to maximize Retrofet’s market reach. The D2C model allows for higher margins and direct engagement with consumers, while the wholesale partnerships with department stores and boutiques expand brand visibility and accessibility.

Ohad Saroya [75:46]: "If you are able to find a factory that is able to achieve your small orders, you got a winner if you have a great quality."

He emphasizes the necessity of understanding financials and margins to sustain growth, advising aspiring designers to meticulously calculate their markups and manage cash flow effectively.

Ohad Saroya [72:03]: "It's all about the margin because this margin will make sure to cover many stuff."

Balancing Creativity and Business

One of the most significant challenges discussed is the balance between creativity and business operations. Ohad explains that while creativity drives the brand’s unique aesthetic, rational business analysis ensures sustainability and growth. This balance is achieved through strategic meetings, leveraging team insights, and being adaptable to market trends without compromising the brand’s DNA.

Ohad Saroya [12:05]: "We actually have almost every day a strategic meeting and really think about it. And we are a business."

Ohad credits his team, particularly his VP, for providing crucial feedback and helping navigate the intricate balance between maintaining creative integrity and meeting commercial demands.

Ohad Saroya [53:37]: "We have always this conversation, it's very, very challenges how do you bring your creativity and how do you bring the commercial part and put it together."

Practical Advice for Aspiring Fashion Entrepreneurs

Throughout the episode, Ohad shares practical tips for those looking to start and grow their fashion brands:

1. Gain Retail Experience: Work in a retail environment to understand the flow and customer interactions before launching a brand.

   Ohad Saroya [27:22]: "Build up a brand to achieve... first of all, walk in a store for at least one year."

2. Focus on Consistency: Maintain a coherent brand DNA and ensure consistent product quality and timely deliveries.

3. Understand Financials: Master the intricacies of margins, pricing, and cash flow management to sustain and grow the business.

4. Leverage D2C and Wholesale: Utilize both D2C platforms and wholesale partnerships to diversify revenue streams and expand market reach.

5. Build a Strong Team: Surround yourself with a dedicated and talented team that shares your vision and can provide honest feedback.

6. Embrace Mistakes: Learn from early mistakes to refine business strategies and operations.

7. Tell a Story: Infuse personal and authentic stories into every collection to create emotional connections with customers.

Ohad Saroya [76:31]: "Just do it and get your hands dirty. Touch everything you can touch."

Conclusion and Final Thoughts

Ohad concludes by reiterating the importance of hard work, consistency, and passion in building a successful fashion brand. He encourages aspiring designers to immerse themselves in every aspect of the business, learn continuously, and remain resilient in the face of challenges.

Ohad Saroya [48:22]: "We worked hard and we're still working hard and we are blessed that we are able to work hard."

He emphasizes that success in the fashion industry is not just about creativity but also about strategic business management and maintaining meaningful relationships with both customers and retail partners.

Notable Quotes:

• Ohad Saroya [05:45]: "I didn't want to open a brand. I didn't want to be a designer, but I always plan to be a salesperson."
• Ohad Saroya [08:05]: "It's an amazing group of people. It's need a village to make this dream come true and understand the consumer and keep pushing and really evolving."
• Ohad Saroya [28:54]: "The denim jacket actually saved the brand during the pandemic."
• Ohad Saroya [35:07]: "We produce a crazy amount of sampling. 500 to 600 samples for a season."
• Ohad Saroya [76:31]: "Just do it and get your hands dirty. Touch everything you can touch."

Final Takeaway:
Ohad Saroya’s journey with Retrofet underscores the intricate balance between creative passion and strategic business acumen in the fashion industry. Aspiring fashion entrepreneurs can draw valuable lessons from his experiences—prioritizing consistency, building a supportive team, understanding financial dynamics, and staying adaptable in the face of challenges—to carve their own paths to success.