J.Crew Gets Uppity By Eric Wilson
October 16, 2008
“THE timing is very ironic, I know,” said Millard S. Drexler, known as Mickey, the chief executive of J. Crew, by way of introduction to the company’s newest store, which opened Friday on Madison Avenue at 79th Street. Mr. Drexler chose just about the worst week in financial memory to introduce a J. Crew collection priced in the stratosphere of Gucci and Prada.
The first thing you see inside the store is a jacket covered in hand-painted French sequins to look like tortoiseshell, with a price of $3,000.
Regardless of the market, J.Crew’s new designer collection — sold here and at jcrew.com — has raised eyebrows among analysts and competitors who wonder why on earth a company known for its preppy basics would put on such airs(1). Mr. Drexler said he believes in the product. “
In all of our stores in America, I felt we weren’t highlighting the clothes and accessories in the way I thought they should be(2),” he said. “And I felt that fashion was changing. The prices of designer clothes were getting to a point that was very unfriendly to a lot of people, and the ubiquity of designer clothes was making them less special. Fashion is the opposite of ubiquity.”
J.Crew’s proposal is to introduce more special items, but in small batches and in stores that feel more like an apartment. (3) The sign on the brass door at 1035 Madison Avenue is painted in old-fashioned script and is almost unnoticeable. The clothes look more like those at Michael Kors, with featherweight cashmere scarves ($150), a gold beaded dress ($595) and a printed calf-hair jacket for $2,200; but mixed in were J. Crew staples like $85 matchstick cords.
“We don’t want our customers to feel alienated,” said Jenna Lyons Mazeau, the creative director of J.Crew. “We want them to feel comfortable in our stores.” (4)
In the first three days, the store sold three of the $3,000 jackets and a surprising number of silk flower pins priced from $50 to $200, Ms. Lyons Mazeau said, looking at the numbers as a sort of validation. (Of 200 pins ordered for the store, only a dozen or so remained on Wednesday.) “ (5)
"J.Crew is such a big company, I don’t think people understand that there is a whole group of people here who love design,” she said. “We don’t just bang it out.”(4)
There are so many points of discussion from this great article! The following comments relate to the passages above.
(1) I agree that the timing to open the new Collection store may not have been the best. Especially considering J.Crew's recent stock prices, coupled with Goldman analysts downgrading J.Crew to 'sell' (click here). I am curious to see how well it performs during the holidays.
(2) Whether you agree with it or not, Mickey definitely has a vision for the company (and he is moving forward with it). :)
(3) I get the "small batches" concept but then again I don't. ;) I get the concept of creating exclusive and desirable items that a few are willing to pay top dollar for. However, you also don't want to turn down 100's of disappointed customers who were unable to purchase the items. It's tough to find the right balance and I am not sure if J.Crew has found it yet with lots of their exclusive items (e.g. flower pins).
(4) Reading some of the comments in yesterday's post (click here), it is clear that some customers do feel alienated. I wonder how J.Crew will manage those concerns while offering high-end merchandise. Maybe a spin-off store (a la Madewell) is one option? Also, when Jenna said that "people" don't understand, who do you think she was referring to? (I honestly don't know.) ;)
(5) Wow! I hope J.Crew will offer more flower pins for the holidays. :)
What are your thoughts on this article? Disagree or agree with any of the points made in the article or by me?
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