It’s a little like A Star Is Born, but in the fashion industry. Whereas J.Crew remains the parent company of Madewell, the smaller brand is quickly outpacing its originally more famous mentor in terms of popularity, revenues, and consumer appeal. What has enabled this shift?
The main factor appears to be the strategic approach Madewell has taken to designing its product and merchandise assortments. Although denim is central to its offerings—its chief executive even asserts, “We’re on a mission to get more butts in our jeans”—it actually earns most of its revenues from denim-adjacent clothing. That is, Madewell makes it easy for casual dressers to pair their favorite jeans with cute, fashionable tops, tanks, and sweaters. And then on a day you might want to be a little more dressy, it makes appealing dresses available as well.
Beyond the actual products on shelves, Madewell also embraces a diverse, omnichannel approach to distributing those items. It is a constant presence in social media feeds, promoting the unique, personalized fit available through its different jean styles. Accordingly, approximately 40 percent of its sales come through ecommerce. But it also maintains about 130 stores, mostly located in upscale malls or on fashionable city corners. In these locations, it hosts fun events, designed primarily for the fun of its customers. Then it also partners with other retailers, including Nordstrom, to ensure its products are widely available in various retail locations.
These distinct approaches clearly set it apart from J.Crew, with its more tailored and preppy style image and presence in virtually every mall in the country. Rather than the relatively straitlaced sensibility created by J.Crew chinos, Madewell embraces a modern aesthetic, not just in its clothing but also in its social initiatives. For example, consumers can bring in used jeans, from any brand, and receive credit in stores. It also highlights its inclusive sizing range, designed to ensure that virtually anyone can find the right fit.
This openness and inclusivity figures into its growth strategy too: Madewell recently went public, even while the parent company J.Crew remains privately held. Everyone can be a part of Madewell, whether by wearing its jeans, reposting its #everydaymadewell hashtag, or buying its stock.
Discussion Question:
- From an assortment planning perspective, why is Madewell so successful?
Source: Sapna Maheshwari, “Madewell Diverges from J.Crew as a Darling of Casual America,” The New York Times, September 17, 2019