In 1969, a former Brooks Brothers tie salesman named Ralph Lipschitz called a buyer at Bloomingdale’s. He wanted to convince the most important department store in America to be the exclusive carrier of his brand, one that spoke or more accurately, bespoke, to an authentic retro aristocracy.
It was called “Polo.”
Ralph Lauren, as the tie salesman is better known today, wasn’t a player, he was a garment district merchandiser. He had seen one polo match in his entire life. But that was all he needed to believe the market was ripe for a high society look, as the hippie era ended. People were looking for a lifestyle that was “riche” but not too nouveau, and leather boots and snug fitting breeches were just the ticket. Lauren was able to sell clothing in Cary Grant movies that shoppers couldn’t find in stores. With that as a motif, Lauren turned his brand into a co-star, where he outfitted actors in films like Woody Allen’s Annie Hall and The Great Gatsby.
With his impeccable sense of where lifestyle and brand intersected, Lauren created a luxury empire of clothing, furnishings, and restaurants, and a tidy net worth of $8 billion. HIs flagship store is a perfect example of how he imagines the world and then builds it. The former Stackhouse Mansion at 72nd and Madison Avenue is the most unique address for any retailer in the most elite city in the fashion universe. Until now.
Walking up Madison Avenue one Sunday morning, I noticed three things that seemed odd to me. The Sonya Rykiel store, a French haute couture boutique that opened in 2016, was shuttered for good. Just one block away, the Jil Sanders store gave notice to employees. But next door to Ralph Lauren’s Women’s Shop was a flashy new retailer called The Real Real. Only it’s an online retailer, and now they have the best address in New York next to Ralph Lauren’s.
It is a cliche to say ‘digital is eating the world,’ but the reality is the world is gorging on digital, like tourists at a salad bar. But the switch between the old and new is going one way. Everything that was brick and mortar is now online. But the corollary isn’t true. If you look at the websites of old school retailers, they are designed merely to be another cashier at the counter. They are not what they need to be: an experience. That is what the best of online retail is now: one part Facebook community, one part Google search, and one part Amazon efficiency.
When Julie Wainwright started The Real Real in 2011, she had already acquired a useful background as CEO of video retailer Reel.com and the pet-supply company Pets.com. She knew why online stores failed and why they succeeded, and that helped her to make some smart decisions about her business.
Wainwright knew she should start small, maintain quality, and build slowly. Her kitchen table was the showroom, and she would visit consigners with a U-haul. Her approach wasn’t just about outstanding prices or couture brand selection, of which her website is the leader. She was going to cultivate ‘members’ who wanted an experience, and make it as artisanal as online shopping gets. Wainwright speaks of celebrating ‘artists and designers’ and makes a point to remind her community of members that this is more than shopping. It’s a lifestyle more than a shopping visit that involves sharing, creating value, enjoying things you might not be able to afford ordinarily.
Sounds a lot like Ralph Lauren.
The idea for a luxury-consignment Website came to her during a trip in Atherton, a wealthy Silicon Valley town, in 2010. As her New Yorker profile said: Wainwright and a friend stopped in a boutique with a small selection of designer consignment items, and her friend bought several pieces. Wainwright recalls, “We walked out and I said, ‘Wow, what just happened? You just bought consignment.’ ” “Oh, come on, Julie,” Wainwright remembers her friend responding. “I bought Chanel, and Prada, and Louis Vuitton, and Gucci, at a really good price . . . . I don’t care.’ ” That night, Wainwright went home and began researching the secondhand-luxury market.
Because The Real Real is a brand emporium, Wainwright goes to great lengths to assure authenticity. I know from experience that my wife tried to consign a Diane Von Furstenberg dress that had a smudge from a mosquito bite, too small for her to notice. But Wainwright’s sharp-eyed quality control folks sent it back and paid the postage. She says, “we ensure that every item on The RealReal is 100% the real thing, thanks to our dedicated team of authentication experts, horologists, and gemologists.”
If you are in the market for beautiful clothing, furnishings, or jewelry, you should visit The Real Real website. While you are there, notice how the promise of authenticity and the benefits of membership lubricate the shopping. Ask yourself, is your online business as artfully balanced with values and pricing? Are you just selling stuff or making it an experience? Would you return because the chance to find great value is always a part of the bargain? If so, you’ve just become an online impresario like Julie Wainwright. Or Ralph Lauren.
(if more than two of these are true, you will be disrupted)
1. People come to you.
2. You need a salesperson to explain where things are.
3. No one can tell if your prices are fair.
4. Your location is key.
Read more: Ness Digital Engineering CEO On Navigating Digital Disruption
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
