Rhone's CEO Nate Checketts discusses how the brand built a premium menswear label by focusing on product quality, strategic pricing, and adapting to market shifts. He shares insights into navigating significant supply chain disruptions and demand fluctuations during the pandemic, highlighting the importance of calculated decision-making for sustainable growth and profitability in the activewear market.
Key takeaways
Prioritize product quality and functionality alongside aesthetics to build a premium brand ethos that resonates with customers and drives loyalty.
Implement adaptable inventory management strategies to respond to unpredictable demand surges and supply chain disruptions, especially in volatile markets.
Make calculated decisions regarding pricing and inventory planning to manage growth pains and capitalize on market shifts, such as the resurgence of specific product categories.
Build resilience into your business model by understanding potential supply chain vulnerabilities and developing strategies to mitigate their impact.
Use market dislocations (e.g., pandemic-driven demand shifts) as opportunities to refine business strategy and strengthen your brand's competitive advantages.
Nate Checketts, CEO and co-founder of men's apparel and activewear brand Rhone, has mastered the art of building a premium brand at a comfortable pace. Rhone, Checketts' 8-year-old brand based in Connecticut, has gone through its fair share of growing pains. Checketts owes its ability to power through the tough times to quality products and smart strategies. "Part of the ethos and emphasis of Rhone has always been marrying aesthetic and function," Checketts said on the latest episode of the Glossy Podcast.
Activewear, or as the brand categorizes it "performance lifestyle," has been a key driver of Rhone's business. The category performed incredibly well in 2019, but like every other brand, Rhone was not prepared for the year that followed.
"[The year] 2020 was an enormous challenge for us because the interest swung into active and lounge[wear], and we could not keep those products in stock. We were chasing inventory," Checketts said. "Not only [were we] not able to get enough inventory to keep up with demand in a typical calendar year, but now, you have supply chain challenges and countries shutting down, too."
Checketts said the sudden increase in demand and new challenges the team faced helped shape Rhone's business strategy from there. "As we thought about 2021, we had to start making calculated decisions as to when we thought lifestyle [apparel] was going to come back," Checketts said.
Prioritize product quality and functionality alongside aesthetics to build a premium brand ethos that resonates with customers and drives loyalty.
What does this episode say about product & merchandising?
Implement adaptable inventory management strategies to respond to unpredictable demand surges and supply chain disruptions, especially in volatile markets.
What does this episode say about finance & fundraising?
Make calculated decisions regarding pricing and inventory planning to manage growth pains and capitalize on market shifts, such as the resurgence of specific product categories.
What does this episode say about supply chain & operations?
Build resilience into your business model by understanding potential supply chain vulnerabilities and developing strategies to mitigate their impact.
What does this episode say about dtc strategy?
Use market dislocations (e.g., pandemic-driven demand shifts) as opportunities to refine business strategy and strengthen your brand's competitive advantages.
