I have specifically requested that this post remains unedited… It isn’t everyday someone admits that they are taking a gamble and placing everything on the line after being inspired by two pivotal scenes in movies, no matter how iconic those scenes may be.
I have for some time now thought that Archibald has hit a point where our story can be well-communicated in a big, big way. There always seemed to be something missing in our previous attempts at skipping the growth curve and though we have enjoyed what most would call satisfying growth, when you don't quite achieve the potential something has, it's never a good idea to sit back. I believe we are destined for the big hit, the hit that gets everyone scared and gets us going the way I know this idea needs to and deserves to. So whenever the opportunity arises, it is my job to make sure we step up to the plate.
We have tried before. In some instances, there was a lack of content, categories with single items missing... in other instances, we were a single product brand as Archibald Optics. The big lesson over the years has been that creating something new, effectively a new idea in consumer retail, needs to present itself as something more than just a better mousetrap.
This is even more important when dealing with luxury. The biggest fault in my plan thus far was assuming a rational business case would cut through the noise, that the emotion of a luxury purchase can be replaced or overcome with a cold and well-reasoned argument. The second mistake was assuming that everyone would understand quality if we uploaded it on to a pretty website. Both reflected my naivety and perhaps inexperience.
For a long time now, aside from minor outreach conducted internally, there was no outward communication of what we were doing at Archibald. We went quiet, biding our time for the right moment. I think this is it.
This is where the first of the two movie scenes comes in. Brad Pitt playing Billy Bean in Moneyball showing us the importance of defining the problem.
The problem is simple. We are under-resourced and remain the only brand in the world doing direct-to-consumer luxe, in the truest sense. The truest sense refers to the products we deliver which are unquestionably the finest of their kind. Sure, they are classics and sure, trends matter but everyone needs classics and the fact that ours are made to last and that too well differentiates us from every other direct-to-consumer brand in the world. This commitment to quality means that despite our disruptive business model and modest mark-ups, the price point of our products sits above any reasonable level for an impulse buy and therefore makes virality through distributed product a difficult proposition or rather one that takes time that in today's world businesses are rarely afforded.
Furthermore, the entire reason to choose Archibald (aside from value) is based on quality and craftsmanship which in many ways is a purely tangible difference - one that needs to be experienced to be understood. Direct-to-consumer brands, fast fashion retail, and premium retail have leveraged clean design and invested in digital assets, brand experiences, marketing, photography and copy in order to close the 'advertising' gap with true luxury and high luxury brands. This has created an entire generation of the false premium customer, the customer purchasing without knowing what true quality and craft is.
On the flip side, you have the traditional luxury customer - the person who purchases their classics from traditional luxury brands. They see our prices and have either been burned by direct-to-consumer brands which misrepresent their quality in the past, or simply do not believe the product is the same. There is a fundamental trust issue which is why press and more pressingly (pun not intended) features stories covering the underlying concept will drive the success of Archibald - third-party validation is key.
The emphasis we place on classics is there to show that we fully comprehend the value of a designer and fashion designed luxury brands. Fashion and design ultimately adds a layer of art to the final product, and it is not the market we are attempting to compete with. Archibald is there to offer the classics and to do so with better quality product than anyone else, at a better value than anyone else.
What happens come December? We simply cannot compete when the luxury brands go on sale. Only existing customers continue purchasing and this ticks us through the months of December and January. Customer acquisition which is already quite expensive becomes immensely expensive, so we rarely experience growth during these periods and rely solely on the high lifetime value of existing converts.
So having clearly outlined the problem, we need a solution. Quality is ultimately a tactile experience, it needs to be felt to be understood and for those that need to be shown that there is a better way, the price point with even our modest mark-up is too high. Ultimately, what we need is an educational element to what we do.
What do we have on side? Our internally developed tech is powerful enough to let us do things online only much larger competitors could achieve. We are a privately owned business which allows us to take bold decisions, and we have built great relationships with existing customers as well as our artisans, all with an extremely lean internal set-up with minimal overhead costs.
Which leads me to the second movie scene, which three weeks ago inspired all of this. The Dark Knight was playing on TV, and Heath Ledger’s Joker started making a little sense. Now I am aware admitting that I have decided to bet our entire winter marketing strategy on a villain from Batman might cause a few of you to scratch your head or think I have a screw loose- hear me out.
“People never panic when things go according to plan, no matter what that plan is”
We want people to notice us, to panic. No one will ever notice us if we play by the rules of a rigged game. Archibald was founded to break luxury retail, to disrupt it, to change things. If we truly want to change things, we have to do something drastic. Something that will get as many items in customers hands as possible, that will have people talking about us and will pre-date the sales that luxury brands (the best of which are supplied by our suppliers) rely on.
Enter Archibald, Naked. At cost price, we effectively become price competitive with ‘premium’ fast retail, and we burn ourselves in order to leave an impression amongst the consumer base with the one thing that we have utter faith in - our product.
We are betting our business in order to change things. This is not a sale, it is an education piece. I want all of you to know that better product, made to last in a more sustainable and human way is possible to own at a better price.
We make it as easy as possible to prove ourselves. Customers are invited by existing converts and the trust issue is increasingly resolved. The world of Archibald reaches further.
We take a risk when we assume newcomers will be back. It is a well considered gamble, because we believe in the product. And also because over 83% of you have placed two or more orders within 12 months of your first delivery.
Finally, it is a strategically thought out problem (and solution) by a heavily under-resourced outfit looking to go toe-to-toe with the heavyweights. We came out with something the world isn't quite ready for- so it will take something drastic to make them ready.
