Building a Profitable Clothing Brand on Shopify

0:00Hey, Benjamin Gottlieb here. Before we get to this interview, some exciting news. Shopify Masters is now on YouTube. That's right. You can watch episodes with myself and Schwang directly on YouTube or in the YouTube. app. Episodes like the one you're about to hear with Alex Mill. Head over to YouTube and just search for Shopify Masters. And thank you as always for listening. Word of mouth is an excellent communication strategy. Getting people to say, oh yeah, this product, whatever it may be, is real, is legit, is great. People kind of trust the opinions of people they hear things from. That's better than being sold to.

0:41Hey there, I'm Benjamin Gottlieb, and this is Shopify on Location from New York City. This is undoubtedly one of the world's fashion capitals, and so it's perhaps no surprise that clothing brands here are always on the move to set trends. For clothing brand Alex Mill, it all started with designing the perfect button-down. One that goes with everything, you just toss it on, and most importantly, it lasts. It's a concept that founder Alex Drexler found to be an instant hit. And he's here today, along with CEO Roxanne Stahl, to talk about the marketing strategies that have led to this brand's success.

1:18Roxanne, Alex, welcome to Shopify on Location. Thank you. Thanks for having us. You're so welcome. This business that you have really does something that's interesting, in my opinion. It's not necessarily about making a new type of clothing, but making the best in an established lane. Where did this idea come from, Alex? Well, the whole business sort of started with this idea that despite all the shirts out there, I still couldn't find the perfect shirt. Perfect shirt with the right details, the right finish, the right fabric. So there's so many choices out there, but we really wanted to find the perfect shirt and it didn't exist.

1:53So we made one. We couldn't find one we wanted, so we just made one. I mean, is there anything more New York than that? No, I mean, I think like in New York, you know, your overload of sensories, everything going on and so many choices and stuff. So we did it. Yeah. You just did it and you found this opportunity. And again, something you mentioned, a saturated market. Right. There is a lot of options out there for button downs. Right. In your estimation, though, what makes specifically the perfect shirt? Well, several things. I think one, it's all about getting all the right details, the right finishes, and the collar, the button.

2:36You know, I always loved a button that was a bit weighty. You know what I mean? That didn't feel cheap or plastic. And so that was sort of all these elements. You have this, you're talking about clothing in a way that's almost, it's both utilitarian but also artistic in a way, right? I mean, the weight of the button. I mean, that's so specific. Roxanne, I'm curious, is this the type of conversation that you would have in your experience? You've worked in the fashion industry for a long time, or is there something unique about this particular brand? It's definitely unique. The places I've worked, you know, the details were always important, but it was never like here we focus on these details are what make these clothes stand out.

3:16And we still bring that intense focus that Alex had in building the perfect shirt. We still bring to the assortment now. Even though the assortment's broader, we do men's and women's. We do a variety of product categories within, but we are always focused on having the perfect sweater, the best work jacket, a jumpsuit that, you know, you can wear literally anywhere and to anything.

3:42I was a customer before I was buying our jumpsuits, and I would notice these little details, whether it was our little X logo stitched on the side of the shirt. And when other people would notice those too, they'd be like, that's so cool. Where'd you get that? And you're in a jumpsuit right now. And I'm in a jumpsuit right now because it's literally the 15-second outfit and it gets me out the door in time for my train in the morning. So that's what we imbue in everything we do. At the same time, I really think it poses some interesting challenges for marketing. This series here in New York is all about marketing because like in many arenas, New York leads the way when it comes to marketing products.

4:18And when you don't have something that stands out necessarily by how it looks visually, you need to use other strategies to make this thing sell. To both of you, how do you make something sell when it can, at least from initially looking at it, it looks like everything else? I would say the team that we have and really the streets of New York. We are based here in Soho, not far from where we are meeting today. It's a great part of town. And we shoot our content on the streets. We shoot our editorial shoots. We'll take, whether it's a really, it's a quick, you know, Instagram, something for social, or it's a larger editorial campaign, we'll just go outside and do it.

4:57And, you know, obviously we have professionals to help us, but New York's our best backdrop. And then in that also, we use the team that whether it's a production manager or one of our designers or our social media coordinator, they're wearing our clothes, they're in our content and they are like really the best representation of who Alex Mill is. And I think that resonates with a lot of people. They want to see people they can relate to wearing these clothes and that makes our clothes relatable. Our environment influences a lot of what we do. And it's clear that the city, Alex, really has influenced your design for your clothing.

5:35How do you look at something, say a building or a neighborhood and distill that into a piece of clothing? Well, it's interesting because I think like some companies, they get inspired by like trip to Italy or, you know, a trip to somewhere in Europe. But for us, our inspiration, our vibe is really from New York City. So I think like you can see such beautiful details in New York from the color of the buildings to just any like walking down the street for me in New York is really truly an inspiration. So I think like once I'm absorbed in being part of New York and seeing that it helps with the color, the detail.

6:13It gives you a vibe into the clothing. Is this the kind of place where if I'm looking to start a business or I've got a nascent business, I should move here? And if so, why? Great question. I think anything can happen here because to the point Alex made, you can take inspiration from, you know, anything outside, you know, around you and any part of the city, literally. But you also have access to some of the best kind of talent and also people to give advice. What I have found so interesting is that just networking, you know, asking people to be put in touch with someone who can tell me about whether it's a place to produce denim or it's an introduction to someone who can give advice on what kind of marketing strategies aren't there that we might not be aware of.

6:59Just using that is so powerful and can really help you build a team no matter what size you want it to be. So using not just the aesthetics of the city, but also, as you mentioned, the expertise of the city. Exactly, yes. And specifically for marketing though, Alex, maybe I'll ask you this. When you brought this idea up to folks that helped you sell this, so not just your first perfect shirt, but also all the subsequent products, what was the strategy that you all employed to kind of, again, get this item that might look like the shirt you could find off the rack at Macy's or Nordstrom's, but really is better, really is a higher quality.

7:37But on the surface level, it's tough to tell. Well, the strategy we started with was really wholesale. So at the time, you know, there were like, there's Barney's New York, which was an iconic department store. A lot of small specialty retailers like in LA, Ron Herman, Fred Siegel. And so we really started by selling to get the word out through some of these wholesalers.

8:03Our original office was on Broadway right near Chinatown. They used to come to the office and, you know, we'd show them the product. And they might buy like six shirts here, eight shirts there, you know, small orders. But I feel like once we got their endorsement, like the owner of Ron Herman, he really knows the market and saying, OK, I want this product in my store. Then people really started to say, oh, well, that's cool. That's at Barney's. It sort of gave it a nice endorsement. It's at Barney's. It must be cool. Exactly. Right. You have the Barney's stamp of approval on your on your products.

8:33Right, right. We really approached it with a grassroots way where it was, you know, these different wholesalers. And I remember at the time, we didn't even have a website up. You know, there was no Instagram. We didn't have a website. We just sort of grassroots got it out there. It's, in many ways, it's so old school, right? But at the same time, these are things we hear over and over and over again when we're talking with successful brands and companies, is that literally showing up in a place and saying, here is my stuff. Do you like an established place? That works. But Roxanne, given your experience, is that the path that folks should take today if they're trying to start a clothing business?

9:11Great question. I think it depends a lot on the brand and what they're trying to achieve. I do still feel word of mouth is an excellent communication strategy. It could be done in a variety of different ways, whether it's through wholesalers or getting word out in social channels, et cetera. I think getting word out and getting validity and getting people to say, oh, yeah, this product, whatever it may be, is real, is legit, is great. People kind of trust the opinions of people they hear things from. that's better than being sold to, in my opinion. So I think there's a lot of ways to do it. Definitely the wholesale landscape has changed significantly, you know, in the department store universe with the big box stores of the world.

9:53I still think it's a very valid way of getting the word out. And I believe people kind of, they want to discover things and they want to have it, they want to be told about something from someone's opinion they trust. And if whether it's a local store, a local boutique that they either know the owner, they shop there regularly, and they see something new, and they're like, oh, I trust that you brought this into your store. I can trust this brand. I think that's as good as seeing it in a larger location. It's just what makes sense for the brand itself. What do you think, Alex? Do you agree? I agree.

10:27I feel like one of the things that I'm most proud of is our connection with our customers and the community. And I feel like an endorsement from the community is more important than spending tons of money on a paid ad or something. You know what I mean? I mean, that's still important and there's different elements, but I think that our community and that's through the wholesalers, through the customers on Instagram, I feel like there's no better endorsement of that to Roxanne's point. Yeah, your brand essentially has, and I don't use this term lightly, but a cult following. People that really are evangelists for the brand, they talk about the brand a lot, whether that's online or to their friends.

11:03It's an enviable position. If you were to tell somebody who came to you and said, I want to build a following that you have. How do you start to do that, Alex? Well, first, I think you need a product that resonates with people. Because I think there's some companies I see out there that have incredible marketing, incredible noise, but the product isn't very good. It's hollow. So that's why it was all about finding the perfect shirt with the right buttons, the right fabric, the right details, because you wanted a product that can resonate with people. It's interesting. I'm hearing some other types of advice about that.

11:42We had a previous merchant in here and community building first was the way that they attacked their brand. But it just goes to show you don't have to approach every single business in the same way, right? It's more about being, I think, authentic, right? You had an authentic, real approach to building something and it paid off. Yeah, definitely. I would say I really believed in making this perfect shirt. You know, I said, despite all the shirts out there, I still felt this was the one. I really knocked on doors, pavement, you know, going to the different wholesalers. Can you buy this? Can you try it out?

12:17And I feel like we ended up creating this sort of special connection with the customer and the community that I feel, you know, it was very genuine. It was very genuine. And since then, it's expanded into lots of other types of products, not just shirts, which we're going to get to in a minute. My guests today, Alex Drexler and Roxanne Stahl of Alex Mill. By the way, before we continue, thank you so much for listening to this series, Shopify on Location from New York City. After you listen to this episode, do us a big favor, please share it with your friends or your family members and leave a review wherever you're listening.

12:52We really appreciate it. Thank you so much. Let's get back, if we can, Roxanne, into this expansion of the offerings at Alex Mill. It's not just shirts anymore. We have the jumpsuits, all sorts of products for men, for women, for all sorts of people. How do you decide what products to expand in? And if you were telling someone else who's listening, they're looking for an investment in something else, how do you pick the right products?

13:22I think it's still keeping an intense focus. I think a lot of brands can run the risk of trying to be everything to everybody. We keep our assortments focused. The clothes all need to work together. We want to have great items that we're known for, our work jackets, as I mentioned, jumpsuits, cotton sweaters, the shirts, because you need to be able to complete a full outfit. However, if it doesn't all work together, then I think you lose the customer because they don't know what to buy. So we just make sure that we never lose that line of sight to how it all works together, how you can outfit it.

13:57And, you know, ultimately at the end of the day, we are closer about like not overthinking it.

14:05It should be really easy to get up and get dressed in the morning, whether it's the jumpsuit 15 second outfit or, you know, knowing that something works. And that we just try to make our mantra and imbue in everything we do. I love that because I don't like to think too much when I get ready in the morning. I just want to toss something. Especially if it's early, right? I mean, listen, I give you my coffee. Let me toss on some jeans and a shirt and let's go. That's a ambitious goal to try to dress someone from head to toe. Well, it's all about the uniform, you know, and I think to speak to Roxanne's earlier point, what we like to say is we call it uniforms for individuals because we want to create the look from head to toe.

14:44And the words uniform for individuals doesn't necessarily mean that everyone's in the same uniform, but it's what's your personal style? You know, what do you want? And that's sort of what we go after is the uniform. Yeah, you go after the uniform. At the same time, if someone's buying a piece of your clothing, for most folks, it's a big investment. I mean, this is not fast fashion that you just toss away. This is stuff that has quality. It costs money. I would imagine from head to toe, the uniform is aspirational for a lot of shoppers because they can't afford to buy the whole entire outfit. Is that part of the strategy though, to have something where, you know, in a month later, I'll buy those pants?

15:21Definitely. Because also our clothes really are timeless. They feel of the moment, but they all have classical elements to them, whether it's, you know, navy and white stripes or, you know, army green pants, those kind of things that you see a lot of iterations over the years, but ultimately these are kind of mainstays. So we never want anything to feel like it's too in a trend that could be gone tomorrow. And we also want, if someone chooses one of our pieces, to make sure they can go with anything else they own. If it's something that represents them, it can be easily paired with anything else they might have.

15:56And they can always add on later. No, Roxanne, that's interesting because in other words, you're saying you want something that's timeless, not trendy. That seems almost antithetical to how the fashion industry works in a way, right? Where you're following trends. Yes. I think a lot of the industry can just want to perpetuate buying something new every season. And while we certainly would like that from a business perspective too, we also want our closed-to-mean people's wardrobes for years to come. And that's why we spend so much time on the quality and the details, because we want them to stand the test of time as well.

16:29But ideally, love our brand along the way that they want to keep adding as they go. Part of that, of course, to convince folks to add things as they go along is how you market them. I'm just curious, in this new arena where there are so many places that you can advertise, online, social, TikTok, Instagram, YouTube, on and on and on, right? How do you decide who to target and how do you decide which folks to engage with to sell your products? First of all, we're a startup business. You know, we wish we had the luxury at this point to be able to YouTube, Instagram, Pinterest, but we don't. So we have to sort of pick and choose.

17:09And I think for us, one of the most successful places has been Instagram. It speaks to my earlier point of being able to create a community. Instagram has helped us really create a community. So we've really invested a lot in what we can do on Instagram, whether it be paid or organic. It's something that we're constantly working on. That was my next question. My follow-up was gonna be, so when it comes to Instagram, are you paying for ads? Are you paying for time? Or are you trying to do more organic work? Or is it a combination of both? Well, we run some paid ads, but we also, we don't pay anyone to wear the clothing, which I think is very important because again, it speaks to the community.

17:43You know, the brand has sort of developed a cult following. So we reach out to people who are generally interested in mixing Alex Mill with their personal style. And whether or not they have a small number of Instagram followers or a larger number, we want to work with everyone. And that's sort of been very successful for us. You've also been mixing not just online, but in-store. And this is a big part of what we are trying to do here at Shopify, which is this combination of finding your customers where they are. You have two storefronts, right, here in New York? Correct. And also you're using our point of sale system.

18:17Why? What is it about our point of sale system that you like? Really, it's the one source of truth. And that in, you know, this business is so incredibly valuable. Like I remember, you know, I remember 20 years ago and, you know, you're in more antiquated systems and you either had, you had dedicated online inventory versus dedicated store inventory. Now we have one set. Our stores can see, you know, real time. In fact, that we've rolled out the handheld devices. So as they're working with a customer on the floor, if they don't have something in stock in that location, they can immediately find it for them and make sure they get it and fulfill that customer's wishes right on the spot.

18:52And also having the customer history right at hand is so incredibly valuable. So they can refer what size and color a customer might have bought in the past. And it really just helps us work with people and have them come into the store locations more often. For me, it was never a question. Shopify is the best. and we only want to work with the best. And we really, from the very beginning, there was never even a question. Whatever developers, graphic designers, we all want to work with Shopify because I feel that there's not very many platforms that can truly amplify your voice and your brand the way Shopify has.

19:27So for us, we've been very happy. The best shirt and the best service for your business. That's important to you. You don't have time for bulls**t. No, we want to only work with the best. Yeah. I feel also one of the benefits of Shopify is that we can react quickly. You know, like we don't like one of the photos in our PDP profile or the homepage. We can quickly change the homepage and adapt accordingly. And that's one of the qualities I've really loved about Shopify is the ability to react quickly. You had a new partnership in Japan with a company that's been around for a while. Tell us how that came about and why those types of collaborations are so important.

20:07So we recently partnered with a brand called Omnigod. And I had discovered them back a number of years ago when I went to Japan. And they make the most incredible indigo. They make the most incredible denim. And they're really not available in the United States very much. So we've been partnering with them. And we made a small exclusive collection of four or five pieces, a couple jackets, a denim jean, and a shirt. And basically, what's happening is we've been going back and forth. And our team and their team, we want to make sure we're happy with just the product. We just launched it and limited edition.

20:42We like to do things in limited edition, you know, because once it sells out, it sells out. So we launched it. We let people know over Instagram. We put it on our homepage. And it's been very successful. So it's a new launch. But how do you determine who to work with? We look for collaborators which also have a specific point of view, maybe a different point of view than we have. And that we feel like the combination together is more powerful. And a garment may be just done in an individual. So in other words, together, you're saying you look for a partnership that when the two powers are combined, it's a more influential experience.

21:19Exactly. And these partnerships tend to be small run, limited edition. You know, we do a lot of things that are handmade so that our customers know when they're buying them, they're getting something that's one of a kind. And they likely won't see it everywhere or anywhere else. And a lot of our customers really enjoy that. And they also like the story behind that, like specific to Omnigod. You know, they might not have heard of this before, but we will do a page on our platform that explains who the brand is and how they started. You know, Omnigod started in 1946 making school uniforms. And we find people just want to know that content and understand where this brand that we've chosen to collaborate with comes from.

21:59That's cool. 1940, it's been around for a long time. Yep. Really cool. You're doing your first collection preview, right? It's coming up pretty soon. What are some of the details you want to get right about that event? Being able to have the one-on-one interaction with the people who are coming in, getting them to see our team and the people who work on our clothes and our assortments every day, whether it's in any of the capacities in our office, which runs from production to design to social media to content. And then also kind of hearing from them what they think of the clothes. And because we are small and scrappy and nimble, we can take any feedback and put it into work and go after more of what's really resonating and adjust and move.

22:43So just having that one-on-one interaction that's authentic, I feel, is just very Alex Mill. So reacting quickly, listening to your customers, and as far as marketing, making sure you're targeting those important, trusted people in your network that can disseminate the qualities of Alex Mill to a broader audience. Alex, Roxanne, thank you so much for being here on Shopify On Location. Thank you. Thank you. That's Alex Drexler, founder of Alex Mill, and Roxanne Stahl, CEO of Alex Mill. And thank you for listening to this episode of Shopify On Location from New York City. Our show is produced by Megan Coyle and Gogo Zoger.

23:22Our engineers are Matt Schwartz and Miku Betlam. Video production by Matt Nineber. Special thanks to Genevieve Garner and Easton Carter-Engle. Schweng Esther Shan is the program's host, and I am Benjamin Gottlieb. Join us next time for another edition of Shopify On Location.