Why Norma Kamali's Aim for Affordable Fashion is on Target
Norma Kamali's been around since 1967 and over the past four-plus decades has pioneered some of the most forward-thinking fashion in the industry. Now she's reaching again â€" this time squarely for the middle. Market, that is. Kamali is looking for capital to fund a new, accessibly-priced e-commerce collection.
Kamali's timing may be just right in terms of access to venture capital and private equity money. According to research firm Zephyr, global private equity investments reached a 12-month high in October 2010.
And though she's done diffusion lines with the likes of Bloomingdales (M), Kamali's aim to keep control of the new collection's commerce is also quite savvy. The designer was one of the first (in the mid-1990s!) to use her Web site as a vehicle to communicate and then sell directly to customers. Recently she's tried her hand at the art of the iPad right at its launch with an interactive video featuring her famous swimwear embedded in the first digital version of Interview magazine. The designs could be emailed and shared. And she blazed a trail with a "try before you buy" concept that allows shoppers 48-hour grace period so there's less chance of buyer's remorse.
Kamali's no stranger to discounting her designs, either. Her collaboration with Walmart (WMT) produced (ridiculously) cheap versions of her iconic sleeping bag coat, all-in-one-dress, and comfy-chic sweats. If the NK for Walmart collection sounds unfamiliar it's probably because the retailer has failed to roll it out to the majority of its stores. Sure it's available online, but first you have to find it. Only die-hard bargainistas have been able to snag the covet-worthy $20 version of the coat.
By securing financing and going it alone, Kamali can be assured that her mid-priced line won't languish under the Walmart effect. If she teams up with an investor who's got a solid vision and a management plan that won't get sidetracked by trends, yet who's willing to give Kamali creative control, the lady just may just design a whole new assortment of must-haves. And what investor doesn't want to say their dollars backed an icon?
Image via NormaKamali.com
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