How Danielle Alalu plans to grow Derek Lam 10 Crosby’s sales by 70% in 3 years

Summary

The Glossy Podcast: Episode Summary Title: How Danielle Elalu Plans to Grow Derek Lam Ten Crosby’s Sales by 70% in 3 Years
Host: Jill Manoff
Guest: Danielle Elalu, President of Derek Lamb Ten Crosby
Release Date: January 29, 2025

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1. Introduction and Guest Background

The episode commences with Jill Manoff introducing Danielle Elalu, the president of Derek Lamb Ten Crosby, a contemporary fashion brand established 14 years ago. Danielle shares her journey, highlighting her previous tenure with the company five years prior and her return in July 2024 to spearhead brand development, growth, and global expansion. [00:05-01:22]

Notable Quote:
"I've missed apparel. And I think a lot of what I learned in those other categories has been great to come to Derek Lamb Ten Crosby and apply it to the business and the strategy here." – Danielle Elalu [01:24]

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2. Market State and Current Challenges

Danielle delves into the state of the advanced contemporary market, noting its stagnation during the COVID-19 pandemic as consumers shifted towards luxury handbags, accessories, and activewear. However, she observes a recent resurgence, attributing it to rising luxury prices that create space for advanced contemporary brands to differentiate themselves. She points out challenges such as brands like Nilly Loton and Ulla Johnson expanding into higher price points, which opens opportunities for brands that remain steadfast in the advanced contemporary segment. [02:17-03:39]

Notable Quote:
"There's a really wide open space for advanced contemporary. And I think there have been some interesting things happening in the market with players that may have started out in the advanced contemporary realm and now really have moved into more of an upper price point." – Danielle Elalu [02:17]

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3. Defining the Consumer Profile

Danielle provides a comprehensive overview of Derek Lamb Ten Crosby’s target consumer. The primary demographic spans women in their 30s to 70s, predominantly based in New York City, followed by Los Angeles and Texas. She emphasizes the importance of maintaining the loyalty of long-term customers while strategizing to attract younger audiences, such as their daughters or younger sisters. This dual approach aims to ensure sustained brand relevance and growth across generations. [04:12-06:50]

Notable Quote:
"Our customer is very, very savvy and she doesn't only shop in the advanced contemporary market; she also shops in the designer world. So we have to make sure that our fit and our quality are above par to make sure that we're servicing her in the proper way." – Danielle Elalu [05:58]

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4. Retail Footprint and Expansion Strategy

Currently, the brand operates a single store in East Hampton, strategically positioned next to Chanel. Danielle views this location as an incubator, leveraging its seasonality by reopening in April to maximize utilization. Her expansion plan includes opening additional stores in Los Angeles and New York by 2026, followed by three more by 2027. She also plans to use pop-up stores in emerging markets to test potential locations for permanent retail spaces. [07:00-08:18]

Notable Quote:
"We are looking at opening a couple of stores probably in Los Angeles, maybe one more in New York, and then by 2027 we'll add an additional three." – Danielle Elalu [07:57]

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5. Strengthening Third-Party Retail Partnerships

Danielle highlights the brand’s robust relationships with major department stores such as Saks Fifth Avenue, Bloomingdale's, and Nordstrom. These partnerships have been pivotal, allowing collaborative assortment strategies tailored to each store’s consumer base. Additionally, Derek Lamb Ten Crosby is present in 130 specialty stores across the US, a channel Danielle aims to double in the next two years to bolster brand visibility and accessibility. [08:30-09:50]

Notable Quote:
"We've always really had number one amazing relationships with the teams. We've all stuck by each other." – Danielle Elalu [08:30]

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6. E-Commerce Focus and Strategic Shifts

E-commerce plays a significant role in the brand’s growth strategy, with plans to double online sales in the coming years. Danielle discusses a strategic pivot from lower funnel marketing to top funnel initiatives to enhance brand awareness and drive site traffic. This shift aims to address the needs of their vocal consumers and adapt to the evolving digital landscape, positioning e-commerce as a critical growth lever. [09:50-11:06]

Notable Quote:
"We really have the opportunity to double it in the next few years. We've been focused on lower funnel marketing, and now we are going top funnel." – Danielle Elalu [10:04]

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7. Umbrella Company and Brand Evolution

Danielle provides insights into the umbrella company, Public Clothing Company, which has a history spanning 30 years in private label manufacturing across various retailers. Under CEO Dan’s leadership, the company has acquired additional brands like Genera and Hypercolor. Recently, they sold ATM Anthony Thomas Melillo, allowing Derek Lamb Ten Crosby to remain the main focus. She addresses the transition from Derek Lam to their current brand, emphasizing continuity and leveraging design archives to maintain brand integrity. [11:06-14:06]

Notable Quote:
"We’ve been very lucky to have a lot of designers that were here when he was here. ... what we've been missing and what we need to reintroduce into the collection to ensure that we're servicing her from head to toe." – Danielle Elalu [12:51]

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8. International Expansion Plans

Currently exclusive to the US, Derek Lamb Ten Crosby aims to penetrate international markets starting with the UK and Europe. Danielle outlines a strategic approach, beginning with establishing a presence in specialty stores across key European countries before expanding into department stores. She envisions entering markets like the Middle East and Asia Pacific subsequently, leveraging partnerships to build brand momentum globally. [14:06-16:09]

Notable Quote:
"Starting in the UK and Europe and then heading to the Middle East and Asia Pacific." – Danielle Elalu [16:09]

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9. Upcoming New York Fashion Week Presentation

Derek Lamb Ten Crosby is set to make its debut at New York Fashion Week on February 5th, held at the Crosby Street Hotel. Danielle shares excitement about showcasing a collection inspired by a French film, featuring aesthetically pleasing vignette presentations and a teased footwear collaboration launching in the fall. The event aims to generate extensive content and global storytelling to enhance brand awareness and engagement. [16:09-18:38]

Notable Quote:
"We really felt like we wanted to tell the story of the collection, which is based on a French film. And we're going to have vignettes that will be absolutely gorgeous." – Danielle Elalu [16:23]

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10. Navigating Political and Economic Challenges

Under the new administration, Danielle discusses the impact of tariffs and the importance of diversifying the factory base to mitigate risks. With established relationships spanning Sri Lanka, Bangladesh, Turkey, and Peru, the brand is well-positioned to adapt to changing trade policies. Additionally, she touches on maintaining a strong company culture amidst shifting DEI (Diversity, Equity, and Inclusion) initiatives, emphasizing the value of team cohesion and community. [18:38-21:56]

Notable Quote:
"We started diversifying early on to make sure that, you know, if in fact we had a change in leadership, which we did, we were ahead of the curve." – Danielle Elalu [19:16]

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11. Company Size and Ambitious Growth Goals

Derek Lamb Ten Crosby currently generates approximately $35 million in revenue, with a target to exceed $60 million within three years. Danielle outlines a balanced revenue model, aiming for roughly one-third each from wholesale, direct-to-consumer (DTC), and retail sales. This diversification ensures stability and mitigates dependency on a single channel. She also plans to explore category expansions and licensing opportunities, focusing on apparel while seeking strategic partnerships for footwear and accessories. [21:56-23:47]

Notable Quote:
"I think that having a balance and making sure that we bring in that retail component as well to balance it out right now, because today you're looking at probably 65% wholesale and then the balance in DTC." – Danielle Elalu [22:06]

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12. Strategic Collaborations and Category Expansion

Danielle emphasizes the significance of strategic collaborations to reach new consumer segments. The upcoming footwear collaboration with a women-founded and women-owned partner exemplifies this approach, aligning shared values and expanding the brand’s product offerings. She also discusses potential future projects, such as luggage, sleepwear, and jewelry collections, aimed at enhancing the customer experience and fostering brand discovery within mono-brand retail environments. [23:47-26:06]

Notable Quote:
"We're really trying to tailor it strategically and lead with product and then find a partner that the group that we're working with right now on footwear, they're women founded, women owned. We really share a lot of the same values." – Danielle Elalu [23:57]

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13. Retail Experience and Hiring Philosophy

Drawing from her own retail background, Danielle underscores the importance of hiring team members with retail experience. She believes that firsthand retail exposure equips employees with a deeper understanding of consumer behavior, which is invaluable across all departments. Her team routinely visits stores to stay attuned to market trends and competitor strategies, ensuring that the brand remains responsive and competitive. [27:35-31:04]

Notable Quote:
"From a design to production to sales, you go all the way around. It's the end consumer who really votes at the end of the day." – Danielle Elalu [27:35]

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Conclusion

The episode concludes with Jill Manoff expressing enthusiasm for Danielle’s strategic plans and upcoming initiatives. Danielle reciprocates the excitement, anticipating the successful launch of the Fall Winter 25 collection and the positive impact of their New York Fashion Week presentation. Both hosts exchange final remarks, emphasizing the collaborative and forward-thinking nature of Derek Lamb Ten Crosby’s growth trajectory. [31:04-31:36]

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Overall Insights:

Danielle Elalu illustrates a comprehensive and multifaceted strategy to propel Derek Lamb Ten Crosby’s growth by 70% over three years. Central to this plan are market differentiation within the advanced contemporary segment, strategic retail and e-commerce expansion, international market penetration, and innovative collaborations. Her proactive approach to navigating economic challenges and fostering a strong company culture further positions the brand for sustained success in the competitive fashion landscape.

Transcript

[Danielle Elalu]

Foreign.

[Jill Manoff]

Thanks for tuning in to the Glossy podcast. I'm your host, Jill Manoff, and today I'm sitting down with Danielle Elalu, president of the 14 year old contemporary fashion brand, Derek Lamb Ten Crosby. In her newer role, Danielle is focused on brand development, growth and global expansion. And she's bringing Derek Lamb 10 Crosby to New York Fashion Week for the first time this season. So I wanted to ask her about her long term goals for the brand and what challenges it's facing in the current environment. I also wanted to inquire about her strategies for taking the brand global. Welcome, Danielle.

[Danielle Elalu]

Thank you so much, Jill. It's so lovely to be a part of your podcast. Thank you for having me.

[Jill Manoff]

I'm so happy to have you here and I'm so excited to learn more about your plans for this brand, which I know and I've seen it in every department store that I shop. Not really only the good ones, but I, I'm dying to learn more. But tell me before we get in too deep, I would love to learn more about your background. First of all, how long have you been with the company?

[Danielle Elalu]

So this is my second round with the company. I had worked here with another brand about five years ago, but I've been back in this role as the president of Derek Lambton Crosby since July of 2024.

[Jill Manoff]

And what brought you back?

[Danielle Elalu]

You know, I really, really have always been passionate about advanced contemporary and I kind of grew up in that world, but took a little bit of a break for the last few years and was in activewear and then was in footwear. And I missed it. I missed apparel. And I think, you know, a lot of what I learned in those other categories has been great to come to Derek Lamb 10 Crosby and apply it to the business and the strategy here.

[Jill Manoff]

Yes. Well, it's a bold move and you're a bold woman to love the contemporary market because I hear some things about how it's kind of in this, like, in between place and it's not luxury, it's not fast fashion. Sometimes that can be a challenge in a challenging economic environment. But how would you describe that kind of state of the market and the challenges you're facing today, if any?

[Danielle Elalu]

You know, I think it's a really interesting time in the market. You know, over the last five years, you know, I think we hit Covid and we saw, you know, a huge influx in handbags and accessories and a lot of luxury and also in the activewear world, whereas advanced contemporary got a little bit stagnant during that timeframe. Because people were sitting at home in their black, legging and working remotely. And I feel like in the last two years, there's been a resurgence as luxury brands, prices have risen. There's a really wide open space for advanced contemporary. And I think that there's been some interesting things that have been happening in the market with players that may have started out in the advanced contemporary realm and now really have moved into more of an opening price point, into the designer world. Just thinking of like a Nilly Loton or even Ula Johnson totem. And so, from my perspective, for those of us that really, truly stay in that advanced contemporary world, this opens up space to come in and, you know, work with that customer and that consumer and show her a point of difference and some newness in the market.

[Jill Manoff]

You are speaking my language. We are priced out of some of those brands. It's official, right?

[Danielle Elalu]

Yeah, I know. Every time I see. And some of those are also some of my favorite brands that I've shopped for a long time. And I'm like, oh, wow. I'm like, really? But, you know, I respect it, and they. They do beautiful, beautiful collections, and the quality is amazing. And so, you know, I respect the strategy.

[Jill Manoff]

Right on. Well, who do you describe as. As your shopper? Who is she? Is she you and me? And is there an age? Is there a type? Maybe a geographic region?

[Danielle Elalu]

Yeah, you know, we did a lot of brand work about a year ago, and then, you know, I took some of that as a baseline, and then, you know, have really sort of gathered my own team and my own data since I've been back here. And, you know, one of the things we found fairly consistently is the Derek Lam 10 Crosby woman. From an age standpoint, she really starts out in her 30s, and she goes all the way up into her 60s and sometimes 70s, because this woman has been with the brand since we originally launched. And I think what is really interesting about it is she definitely has disposable income, but I always am of the mind of how do I acquire maybe her daughter or her younger sister to become familiar with the brand in looking at new customer acquisition, but while not alienating the core woman who really built the brand. So that's. That's one piece of who our consumer is. She really from a, you know, sort of geographic place. She's based in New York. You know, a huge, huge portion of our business is done in New York City and in the surrounding New York metro area. And then second to that would be in Los Angeles, in California, and then we Have Texas as a third, which I was actually. I know I was surprised by that when I saw it because I've really been trying to analyze our DTC ship to data as well as our department store by location just to get an idea in terms of the US market, where we have opportunity potentially to open mono brand retail stores. And Fort Worth, Houston and Dallas were all up on the list, which I thought was really interesting. Followed by Nashville. Okay, I know. So I thought, okay, I'm like, this is great. I like the balance of, you know, you have more of an urban customer when you're thinking about maybe New York and la. But then I also think there's a suburban woman out there that, you know, perhaps is coming in and buying our Walter blazer and she's wearing it back with her denim or she, she really loves our poplin blouses and she's utilizing that. So our customer, you know, she's very, very savvy and she doesn't only shop in the advanced contemporary market, she also shops in the designer world. So we have to make sure that our fit and our quality are above par to make sure that we're servicing her in the proper way.

[Jill Manoff]

Keep her coming back.

[Danielle Elalu]

Yeah, keep her coming back. That, that is the truth.

[Jill Manoff]

Tell me, you, you mentioned the potential to open more stores currently. Do you have your own store footprint?

[Danielle Elalu]

We do. So right now we have one store in East Hampton which we have had for many years, was once an ATM store and we flipped it to a Derek Lamb 10 Crosby store a couple of years ago and it's been great. We are literally right next to Chanel, which is a nice place to be, if you must, in East Hampton. I know I'm like not, not a bad neighbor to have, but I think that we really need to look at it as an incubator and it's such a seasonal business out there. Right. So we'll reopen again in April and really utilize it through the fall. But my plan for expansion is based on again, looking at that DTC data, seeing what we can learn from our wholesale customers. And then 2026, we're looking at opening a couple of stores probably in Los Angeles, maybe one more in New York and then by 2027 we'll add an additional three. And you know, I also am very much of the mind to do pop ups and you know, maybe take those states where they're falling fourth or fifth in terms of where we're seeing our consumer and doing a six month pop up in certain markets just to see if it Potentially could become a permanent mono brand.

[Jill Manoff]

Location smart. But I know that like we talked about at the beginning, you have a great presence at some great department stores. Third party retail is serving you well. Tell me about it, what's happening there?

[Danielle Elalu]

So you know, the department store world, we are so lucky that we have always really had number one amazing relationships with the teams. Saks Fifth Avenue, Bloomingdale's, I mean just really phenomenal and Nordstrom. And you know, I think that what has been so great is that, you know, we've stuck by each other, so to speak, right? As our department store partners have ebbed and flowed and as our brand has changed and ebbed and flowed, we've all stuck by each other. And in my mind it is really a collaboration between the two of us to figure out what's right for their consumer from an assortment standpoint and how are we differentiating that per customer. So we definitely have a nice business in that world. And then we also service 130 specialty stores in the US which is fantastic. And that's something for me that I think from an expansion standpoint and when I think about strategy, I'd like to double that in the next two years because brands are built off of specialty stores and when you are also in a rebuild mode, specialty stores are critical. So it's a really important part of the business and our relationships in the market makes sense.

[Jill Manoff]

So many brands are telling me they're attempting to build up their direct business. Is that a goal for you in terms of your E commerce sales maybe in addition to your, your store sales and what percentage of the business is ideal in terms of being direct?

[Danielle Elalu]

So you know, our direct to consumer business definitely is a huge, huge focus. And I think that you what we've learned through our customers first and foremost because she's very vocal and you know, she's the one who's voting at the end of the day whether or not she puts it in her cart and you know, goes away happy and keeps her purchase. So you know, I think as I look at that business, you know, we really have the opportunity to double it in the next few years. You know, we've been focused on lower funnel marketing for the last, I would say probably two to three years. And I've really, really shifted gears in the last six months and we are going top funnel because I think for a brand like this in the advanced contemporary world, it's really, really critical to be able to speak to your consumer, to be able to drive traffic to the site, but to do it in a way that is more of a top funnel functionality. So we have big growth plans for E Commerce.

[Jill Manoff]

Fantastic. Well, talk to me. You mentioned atm and that's another brand that was. Is. Anyway, you're under the public clothing umbrella, is that correct?

[Danielle Elalu]

Correct, yes.

[Jill Manoff]

Tell me a little bit about your umbrella company and all who are involved.

[Danielle Elalu]

So. So public company. Public clothing company, pardon me, has been around for about 30 years and, you know, really started as a private label business and built, you know, huge private label category businesses across multiple retailers. And at a certain point, Dan, who's the CEO and the founder of public clothing company, decided that he wanted to acquire additional brands. So he acquired Genera. And, you know, that's a brand that we still own. And, you know, for those of us who live through the first phase of Genera, you know it. You love it.

[Jill Manoff]

Oh, yeah.

[Danielle Elalu]

Yes. I'm like, I was here for it then and now, which is great. So we have Genera. We also have Hypercolor. And then we started ATM Anthony Thomas Melillo with Tony Melillo, who's the founder and creative director. And him and Dan started that together and, you know, really built an amazing business. And we just recently sold ATM. So now our main focus is Derek Lamb 10 Crosby, and, you know, who knows, down the line, you know, if we look to acquire other brands as well.

[Jill Manoff]

Oh, great. Watch this space. And for those who are wondering, yes, Derek Lam was once part of the company, the designer that we know and no longer involved with the company. However, we've seen this before. It can work out. Yes. Any challenge there or. I don't know. How do you message that?

[Danielle Elalu]

I guess so, you know, I think it's. It's actually. And, you know, you're right. We. We've seen this story in multiple iterations across a lot of brands. And Derek obviously has just absolutely made beautiful clothes between Derek Lamb and then also Derek Lamb Tan Crosby. And so I think that, you know, when they decided that they were going to stop doing Derek Lamb and they were looking for a buyer for Derek Lamb Tan Crosby, it just felt like the right time that he exited the business and has started something new called Kallas, which is a beautiful, beautiful collection. And he is focused on that. And, you know, we certainly, if there's ever anything we needed or a question that we had, you know, he's. He's a phone call away. And we've been very lucky to have a lot of, you know, designers that were here when he was here. And so that has really, you know, made a difference just in terms of being able to go back through the archives and to really understand who the Derek Lambton Crosby woman is. And, you know, maybe what we've been missing and what we need to reintroduce into the collection to ensure that we're servicing her from head to toe.

[Jill Manoff]

Another growth lever that you're looking to pull is these international markets. Tell me about the markets you're focused on and what kind of an opportunity that presents the brand. You're exclusively in the US Right now, correct?

[Danielle Elalu]

Yep, correct. So we are exclusively in the US Market right now. I am looking first and foremost to. To get a nice business model set up in the UK and in Europe. And, you know, again, I go back to that specialty store piece in that I think, you know, in particular in Paris, in Italy, Germany, Spain, it's really, really critical to establish that base. And, you know, you have a consumer there that's got a lot of brands that they're loyal to in country. So. So coming in as an American brand can be challenging, to say the least. So I have a really focused product strategy that goes back to our core essentials, which is about 25% of the business. And so we want to focus there to launch within specialty stores once we determine who the right partner is for us. And then as we expand and the business grows, we will tailor PR and marketing per country back to. To the brand and then as well as looking towards expanding the seasonal collection and getting into department stores. So I want to start with specialty and build the base and then work into department stores, which then from a global standpoint, everybody goes to Paris market. Right? So I think the way that everyone used to come and go to Barney's and see what was new in New York or in Beverly Hills, everybody goes to Paris. And so if you are coming in from the Middle east or Asia Pacific and you're shopping in a Harrods or in a Selfridges, and you see a US Brand that tends to help from a momentum standpoint as you work through partners. So starting in the UK and Europe and then heading to the Middle east and Asia Pacific.

[Jill Manoff]

Is the plan exciting? Well, the minute you say Paris market, I think Fashion Week. And it got me thinking about your upcoming show. This podcast will run just ahead of that. So tell us what you can share about. About what, what to expect, what's coming up.

[Danielle Elalu]

So one of the things that I thought was really important as I was laying out the strategy for Derek Lambton Crosby is, you know, as we think about that top funnel marketing and talking to our customer, we haven't really been doing that in the last couple of years. And, you know, anything that we've done from a marketing or a campaign standpoint has been super focused and then kind of moved along. And I haven't necessarily seen the ROI that I would want to see. And so I thought that it was important. Number one, Derek Lamb. Tim Crosby has never participated in New York Fashion Week before, so why not go back to Crosby street to the Crosby Street Hotel, which is where we will be having our presentation on February 5th. We really felt like we wanted to tell the story of the collection, which is based on a French film. And we're going to have vignettes that will be absolutely gorgeous. We just did the style out yesterday and the clothes look absolutely beautiful. So very, very excited. We also have a fun footwear collaboration that we're going to tease a little bit during the presentation. So, you know, it'll launch in the fall, but it'll be a nice moment to sort of tease that. And so, you know, we're excited, excited about all of the content between influencers and editors and of course, all of our retailers that will be joining us as well from the presentation. And then we're actually doing a quick follow up with a dinner so at the Crosby Street Hotel that evening with some celebrity and influencer guests that will be attending and celebrating the launch of The Fall Winter 25 collection.

[Jill Manoff]

So exciting. Well, I was going to ask what will ensure that you'll get your ROI and what that looks like, but that looks like content and awareness and all those things.

[Danielle Elalu]

Oh, yes, we're gonna have content for days, Jo. I have a feeling that there's gonna be enough content to go around, which is exactly what we want. And we wanna be able to tell the story globally and what that content might mean in Europe versus what it means in Canada versus New York versus la. And I think that we have a really great strategy around the storytelling piece, for sure.

[Jill Manoff]

Well, speaking of timely things, Fashion Week, we just also have had a new president come into the office. So a lot of changes. I'm. And I'm talking to, I'm asking all the brands I'm talking to about. Yeah, I guess expectations, challenges, tariffs is a big, a big topic of conversation, I guess, under the new administration. What does it mean for you or what are you watching closely or potentially what's keeping you up at night?

[Danielle Elalu]

You know, I mean, I think there's two things and, you know, I guess the one thing that we can say is we've been through this before, right? Whether we, like it or not, we have been through this before, one way or the other.

[Jill Manoff]

I have said those same words. Yes, I know.

[Danielle Elalu]

I mean, really. Right. Like, at least you can't say it's your first rodeo with this at this point. So, you know, from a tariff standpoint, I think that, you know, about six months ago, we all sat down as a senior leadership team, and I said to my director of sourcing and production, we have to diversify. And we're lucky because we've got 30 years of relationships from a factory standpoint that range from Sri Lanka to Bangladesh to Turkey to Peru. So for us, we started diversifying early on to make sure that, you know, if in fact we had a change in leadership, which we did, we were ahead of the curve. But, you know, I'm always of the mind that, you know, yes, we know today you've got tariffs at 10 to 20%, and there probably will be more layered onto that. You know, as a brand, you should always be paying attention to your factory base, diversifying yourself, making sure that you're giving the best quality and making sure from a category standpoint that you're getting the best out of, you know, each factory that you're working with. So I feel like we're in a good spot and we'll, you know, continue to adjust and pivot where we need to, you know, as things go on. So I think that the tariff piece is a big one, but I also think about dei and, you know, I mean, there's been a lot of news this week, in particular about, you know, the changes for federal employees. And I think that a lot of publicly held companies have also made changes as well to their. To their dei. And one thing that is nice about being a private company is that we can operate business as usual as it comes to that. And, you know, I've always sort of come. I grew up at Nordstrom, and, you know, I always say this. I started on the sales floor part time, and everything I learned and have taken with me through my career, I think I really learned there. And, you know, one of the things that has always been so important is team and making sure that we have, you know, resources and we address every person and personality that works within the company, and we create a community and a culture, and I very much intend on continuing that.

[Jill Manoff]

Yes, right on, right on. So you just are making plans. You're not staying up all night. That's the way to be.

[Danielle Elalu]

I mean, I got to try, right?

[Jill Manoff]

Yes. I love this. What can you tell me about the size of the company and your growth goals from here, maybe for the next 12 months or maybe it's a five year plan.

[Danielle Elalu]

So, you know, I think, you know, right now we are looking at upwards of about 35 million. And ideally I'd like to get above that 60 million threshold in the next three years. And I think there's a lot of different components that play into that. You had asked me earlier about E Commerce. What's the right percentage? And I think a lot of people say a third, a third, a third. And I've been at companies that were 70% E comm and that was way too much and it was way too weighted. And I've been in companies that were 70% wholesale. So I think that having a balance and making sure that we bring in that retail component as well to balance it out right now, because today you're looking at probably 65% wholesale and then the balance in DTC. But I want to get that retail piece of the pie to be a larger percentage as well, just to make sure that we're, you know, diversifying ourselves in where the revenue is coming from. And then, you know, also thinking about other categories and licensing and, you know, we're going to do what we do best and you know, that falls into the apparel bucket. We're not going to do footwear. We're going to find the best partner that's out there to do footwear. Same handbags, accessories, you know, things like that. And you know, I think a lot of that also ties into testing and learning through collaborations to see how your customer responds and what works and what doesn't work. So we've got a lot of cool things coming down the line in that arena as well.

[Jill Manoff]

Oh, great. Who's an ideal partner in terms of a collaborator? Is it just, do they have like minded audience and maybe just a different audience? Is that, is that the goal?

[Danielle Elalu]

Yeah, I mean, I think that obviously you want to be able to reach a different consumer. And so that's what always has interested me in the footwear world. And this first collab that we're going to be launching in the fall hones in on that quite a bit. But I also think that there's an opportunity as we're thinking about product and we're thinking about our consumer to look at things like we're talking about how do we do something with a way, do we do like a great piece of luggage in our green Pantone? What do we think about sleepwear down the line? Right. Do we do a little capsule or something? Like that. So we're really trying to tailor it strategically and lead with product and then find a partner that the group that we're working with right now on footwear, they're women founded, women owned. We really share a lot of the same values and. And it was really easy, like right out of the gate. And I'm super excited.

[Jill Manoff]

Amazing. The category expansion, potentially, is that a goal to kind of build that out before opening stores to kind of be able to showcase the lifestyle or there's really no link there.

[Danielle Elalu]

You know, I think that we probably will have. You know, footwear is my. My number one that I'd like to get moving and up and running. So, yes, I would like to have that in stores, but I also think a lot about in a mono brand environment, how do you really curate an assortment that a speaks to the location and to the consumer, but then is there possibly something in the market that lines up with your brand that you're going out? And is it a piece of jewelry, a jewelry collection that really works back with the brand and so having something that becomes a little bit of a discovery when she's coming in and shopping in your door. So I think we'll do things that are, you know, either license and branded, but I also want to make sure that we're not limiting ourselves and we can do things in the market. And, you know, even. Even locally, you know, I've found artists and things before that, you know, you can do really great things with. In mono brand stores.

[Jill Manoff]

That's so interesting. I love that you're mentioning localization. I just literally just talked to somebody at overseeing Beauty at Sea cvs. He was talking about, like, their goal this year of localizing the whole beauty assortment for every other 7, 500 stores or however many. I was like, wow. And it was how it was such a challenge. But I think that's going to be a theme this year. I think it's so smart.

[Danielle Elalu]

Well, and I. And I think you need to do that across the board. You know, I remember as a buyer at Nordstrom, and this was many, many moons ago, before they went national, we had regional buying offices and we went as buyers and merchants. And every Saturday we worked on the floor and I learned more about my consumer and then I could take that back to curate by door what that assortment was. And, you know, whether it was a little teeny, tiny door that was in the burbs or it was downtown Seattle, which tended to be more urban, it really allowed me to be able to curate. And I think that is so important right now because distribution, be it an advanced contemporary designer is not as precious as it was 15 years ago. Right. You can get anything anywhere. You can type it in on your phone. So I think that how we show up in our wholesale partners, our retail stores and DTC and really think about curation is going to be critical for point of difference. There's a lot of brands out there and so you have to set yourself apart.

[Jill Manoff]

So true. Looking back and thinking about how valuable that time on the sales floor was, is that something you look for when you talk to, like potential hires or is that something you require after hiring them, you're going to get on the floor?

[Danielle Elalu]

So, no, it's. That's a great question. You know, one thing. And it doesn't matter what the role is, right. It could be somebody in design, it could be in production, it could be an E comm. It could be in wholesale. I always love it when somebody has some type of retail experience and it doesn't necessarily matter what. And the reason that I like it is because you see where the end consumer lands. Right? So if you think of it, you know, in a big circle where you start from now to design, to production, to sales, you know, you go all the way around. It's the end consumer who really votes at the end of the day. And so I absolutely love that, you know, and most of the people that are on my team, now that I think about it, yes, they do have some sort of retail experience. And we spend a lot of time in the stores. You know, my team goes out once a week and we go and we spend time in our stores from a wholesale standpoint and we shop competitively as well. I think it's really, really critical, you know, and, you know, from an ecom perspective to also see what's happening, you know, in your net. A Portes and your. My Teresas and, you know, know what. What is, you know, on the pulse and how those retailers are showing up.

[Jill Manoff]

So smart. Well, Danielle, I was going to talk, tell you about my retail experience. Indeed, I have some. But anyway, we can.

[Danielle Elalu]

Oh, my gosh. Tell me where, where. Where were you? Where did you work? I'm dying to know.

[Jill Manoff]

Does it. I don't think it's relevant to today's customers since I'm, you know, it was when I was young, Champ sports and Wet Seal.

[Danielle Elalu]

That's amazing.

[Jill Manoff]

How about you? Nordstrom. But you're, you're. You're corporate. That's corporate experience at like Sweaty Betty.

[Danielle Elalu]

But I started on the sales.

[Jill Manoff]

You started on the sales floor there.

[Danielle Elalu]

As well, part time during college. And I remember my mother said, you're not going to make any money the. Because you're gonna spend all of it on clothes. And she was right. But it changed my entire career path. I went completely different direction and I absolutely loved it. And I think growing up that way and learning that on the sales floor is just. It's so. It's invaluable. It's really hard.

[Jill Manoff]

It's hard work. People don't know it's hard work.

[Danielle Elalu]

It is hard work. I know. I was reading there's a good article today in Business of Fashion about.

[Jill Manoff]

I'll check it out.

[Danielle Elalu]

Check it out. Yeah, check it out. It's very, very good. About incentivizing salespeople in retail.

[Jill Manoff]

Oh, my gosh. That's another problem that every brand is telling me about. Well, the competition in terms of keeping strong sales associates and the pay that's required but worth it is what they're telling me anyway.

[Danielle Elalu]

It is. You have to keep people happy. And, you know, I think what, you know, retail sales associate looked like 10, 15 years ago is quite, quite different now. And, you know, the access that they have with, you know, the phone and all the different things. But I do think there is major value in creating a loyal customer by having relationships. And, you know, those sales associates, you know, if they're really good, they have amazing relationships. And then that travels to all channels of the business, for sure.

[Jill Manoff]

Oh, this was fun. Danielle, thank you for being here. Excited to run your episode. Excited to see how the show plays out.

[Danielle Elalu]

I know, Me too. Me too. I think we're. I think we're all. We're getting down to the wire where we're like, you know, all the. The last minute details, but it should be great. And I look forward to seeing you there. Thank you so much for having me. This has been so lovely talking with you.

[Jill Manoff]

You as well. Thank you so much.

[Danielle Elalu]

Thank.

[Jill Manoff]

That's all for this episode. Our theme music is by Otis MacDonald. Be sure to give us a rating on Apple Podcasts or wherever you're listening to the Glossy Podcast. See you next week.