Michael Stars co-founder Suzanne Lerner discusses the brand's evolving revenue model, highlighting a strategic return to brick-and-mortar retail through pop-ups, while maintaining a strong DTC and specialty store presence. The episode emphasizes balancing tradition with innovation, focusing on product longevity and embracing conscious brand engagement, offering valuable insights for fashion and retail businesses navigating omnichannel strategies.
Key takeaways
Michael Stars' revenue is diversifying, with 50% from specialty stores, 20% from their own e-commerce, and 30% from other e-commerce sites and subscription boxes, showing a balanced omnichannel approach.
The brand is strategically re-entering brick-and-mortar retail via pop-up shops, demonstrating a belief in the resurgence of physical retail as a complementary channel.
Sustainability for Michael Stars is defined by product longevity and timeless style, contrasting with fast fashion and minimizing waste.
The company actively engages in political and social issues, viewing it as integral to their brand identity and purpose.
Michael Stars balances traditional product design with an evolving revenue model, illustrating how heritage brands can adapt to market changes.
Michael Stars wants to strike a balance between evolution and tradition.
"You could call it quote-unquote sustainable, because my stuff doesn't get thrown away," said Suzanne Lerner, the company's co-founder and president, on the Glossy Podcast. "It doesn't end up in the landfill after that season that it was so trendy."
As evergreen as its styles are, Michael Stars' revenue model is quickly changing.
"Fifty percent of our business is specialty stores," Lerner said. "About 20% is our own e-commerce site, and the balance -- 30% -- is a mix of other [retailers'] e-commerce sites and subscription boxes," she said.
Next, the company is looking to rebuild the brick-and-mortar retail network that it "successfully" pulled away from, Lerner said, starting with pop-ups.
On the podcast, she talked about how the company has embraced direct-to-consumer model, how she met her husband-slash-business partner and why, when it comes to the company's political engagement, "We've got to be out there speaking."
What does this episode say about retail & omnichannel?
Michael Stars' revenue is diversifying, with 50% from specialty stores, 20% from their own e-commerce, and 30% from other e-commerce sites and subscription boxes, showing a balanced omnichannel approach.
What does this episode say about dtc strategy?
The brand is strategically re-entering brick-and-mortar retail via pop-up shops, demonstrating a belief in the resurgence of physical retail as a complementary channel.
What does this episode say about brand & content?
Sustainability for Michael Stars is defined by product longevity and timeless style, contrasting with fast fashion and minimizing waste.
What does this episode say about supply chain & operations?
The company actively engages in political and social issues, viewing it as integral to their brand identity and purpose.
What does this episode say about retail & omnichannel?
Michael Stars balances traditional product design with an evolving revenue model, illustrating how heritage brands can adapt to market changes.
