Me+Em's founder, Clare Hornby, details how her 14-year-old fashion brand achieved remarkable growth (£46M to £80M revenue) and sustained 7 years of profitability by exclusively embracing a Direct-to-Consumer (DTC) model. This episode offers key insights into how DTC can maintain a 'price-quality equation' and foster community through unique retail experiences, particularly relevant for brands eyeing international expansion.
Key takeaways
The exclusive DTC model can be a powerful strategy for maintaining price-quality and profitability, even as other brands pivot to wholesale.
Strategic team building is a critical accelerant for business growth, complementing successful sales models.
Physical retail spaces can be reimagined as community hubs, encouraging customer dwell time and fostering stronger brand connections.
International expansion should be targeted and deliberate, leveraging successful domestic strategies for new markets like the U.S.
Securing minority investments can fuel significant growth while allowing founders to retain control and brand vision.
Clare Hornby's 14-year-old fashion brand, Me+Em, has hit its stride. From 2021 to 2022, it grew its revenue from £46 million to £80 million. What's more, it's been profitable for seven years. That's despite selling exclusively direct-to-consumer, when, it seems, every digital native brand is falling back on wholesale partners. "It was when I started building out the team that you started to see the [business's] acceleration," Hornby said on the latest episode of the Glossy Podcast. It's worth noting that MatchesFashion investor Highland Europe bought a minority stake in the company in early 2022.
Me+Em, which specializes in "flattering, functional, forever" women's clothing, has opened seven stores in the U.K., where it is headquartered. But now, its focus is on U.S. expansion. Starting in March, it will open two stores in NYC, followed by one in the Hamptons, in rapid succession. The plan is to follow those up with fourth and fifth locations soon after.
“We like you to bring in your dog, bring in your kid and bring in your partner, and we like you to dwell,” Hornby said. “As a result, our stores [form] communities, all by themselves.”
