If you haven’t heard about Everlane, they have an interesting story and they’re a group that may be able to teach us all a few things about building wealth. They’re not an investment company or a group of financial gurus. Everlane is a high-end clothing retailer that has made it big with their e-commerce offerings. They’re fairly remarkable in their niche n the industry and here are 20 things that you didn’t know about Everlane.
1. They generated $12 million in less than three years
How can a company open their doors for business and be able to boost profits of $12 million in less than three years? That’s the question that everyone is asking about Everlane, but they managed to accomplish this amazing feat. Their e-commerce sales of high-end basic apparel are appealing to the public and sales have gone absolutely through the roof. We salute them because when older more established retailers that have been around for decades are closing their doors in failure, this new kid on the block rolls into town and makes a killing.
2. The founder was only 25
It’s amazing that the man behind the three-year wonder store was just twenty-five years old at the time that he started the enterprise. His name is Michael Preysman. He was employed in the venture capital business when he decided that it was time for him to quit his job so he could pursue his dreams. He wanted to own his own business. Preysman had a passion for design and he was really frustrated with what he perceived to be a lack of innovation in the retail industry. He took everything that he disliked about it and came up with a business plan that addressed each of his pet peeves and out of this, Everlane was born.
3. Everlane earned their edge in the industry
The team at Everlane took a no-nonsense approach to establish the business. They kept it simple. The apparel that they offer is definitely high-end merchandise, but each item is designed to be lasting when it comes to style and the pieces that are offered are all quite simple and staples. Most only come in a choice of two or three color choices but they’re durable and well made. The apparel is not cheap in price, but the old adage holds true that you get what you pay for and in the case of Everlane, it happens to be true.
4. They stand apart from the crowd
The Everlane e-commerce store is set apart from most other retailers. Their differences are what make them so appealing to their customers. For starters, they don’t operate a brick and mortar store. They are an online only e-commerce retailer. They help to keep their prices down by going this route for sales and even though they’re not cheap in price, they’re not the most expensive either. The absence of a physical store helps them dramatically in keeping their overhead costs down.
5. Everlane breaks down the true cost of everything they sell
This is one of the most unusual approaches that we’ve seen in the retail industry, but it’s working quite well for Everlane. They have taken great pains in explaining the cost for the materials used in the products, the labor, hardware, duties and transport fees paid and after they arrive at this figure, they simply double the cost to make their profit. The standard markup is usually times 8. This is something that their customers really appreciate and it shows in the massive sales that the company has been enjoying. How many retailers are you aware of that are willing to achieve this level of transparency for their customers? We think that it’s nothing short of amazing.
6. Their fitting information is detailed
This is yet another aspect of Everlane that puts them at the head of the pack. They explain the fitting information of their apparel items in great detail. They also describe details of the styles and share information about the factory that each piece was made within. Everlane refers to this ideology of theirs as “radical transparency.” This innovative approach is truly revolutionary and they’re setting the bar high for others to follow. If other businesses don’t follow suit, they’re going to continue to be left behind by this new emerging giant in the apparel industry.
7. Everlane is consumer-centric
It is evident by the way that they operate that Everlane is a company that goes the extra mile in everything that they do to keep the best interests of their customers to the forefront. They spend a lot of time developing detailed descriptions and they provide more information about their products than most retailers do. The fact that they charge high-end prices is reflected partially due to the amount of time that they take in developing the information about each product so their customers are well-informed about each product and how it will fit before they make their purchase. In our estimation, it doesn’t get much better than that.
8. There are no high-pressure sales with Everlane
One of the benefits of making purchases online is that there isn’t a high-pressure salesperson hovering nearby offering their suggestions. There is absolutely no upselling when you’re shopping on an e-commerce site. One of the potential drawbacks is that you can’t try the clothing on and you can’t ask the salesperson questions. It seems that Everlane has addressed this though, through their detailed explanations for fitting and other types of information that they supply. It’s a win-win situation for shoppers who don’t like to be bothered by sales associates.
9. Everlane evidences a millennial mindset
It is a millennial that designed Everlane so it makes sense that the company’s values are those of the millennial generation. Michael is a millennial and he understands the frustrations that people from his generation face with retail shopping. It’s difficult to find the type of service you want without the nonsense that goes along with the games that retailers play to encourage more sales. There is a lot of dishonesty in the retail business and it’s refreshing to find a store that eliminates this common frustration and gets right to the point, offering excellent service and doing it in an online format. This is a concept that isn’t regularly implemented in retail and it’s something that the public has been craving and now they’re finally experiencing it. It’s no wonder that they’re growing so rapidly. Their target audience is those who share their values.
10. Everlane works to earn their customers’ loyalty
Although it’s difficult to have any type of intimate relationships with your customers in an online format, Everlane has found a few ways of getting close to their clientele. They regularly send out surveys and ask people to give their opinions. If they don’t like an item, Everlane wants to know why. If there’s a problem, the only way that they can fix it is to know what it is.
11. They offer streaming snapchat stories
This is another way that Everlane connects with its customers. Their Streaming Snapchat stories provide customers with tours of their factories along with directions to secret pop-up locations, they provide easy to understand facts about retail production processes and they also offer stories about random acts of kindness. It’s unique and it shows that the company is interested in offering a personal touch by reaching out to their customers with things that they believe the public will find interesting and/or useful in some way.
12. They tell customer stories
Everlane maintains an Instagram account. On the account, they showcase some of their recent reviews from customers. They ensure that each of the stories are real and informative. Everlane staff generally offers a response that includes a little more information about the product that relates to the story that the customer has shared.
13. They offer in-person services from time to time
Although Everlane is a strictly online store, they have been known to schedule dates where they visit hotels within four major cities to open up rooms so their customers can go in the rooms and try on the shoes that they sell before they purchase them. Customers sign up through a unique social media site under hashtag#getmeroomservice or they can do so through instructions given on their social channels. So far, the events have been successful and they plan to keep them going. What’s really cool about the whole thing is that Everlane documents the whole experience and they share the story through Snapchat. It’s really a cool event for everyone.
14. They do Facebook messenger chat
Everlane also attempts to make a personal connection with their customers to use a conversational commerce tactic through Facebook messenger. This is the format that they’ve chosen for their online customer service support. They are always happy to provide customers with a better understanding of their products and answer their questions. It offers a way for Everlane to provide personal interaction with interested customers and vice-versa.
15. Michael Preysman changed his mind about brick and mortar
At the onset of his tremendous e-commerce success, Micheal Preysman was bold in stating that he’d just as soon shut down his operation as open a brick and mortar store. He was passionate about his values and it was his dispassion with traditional retail that led him to make the statement. However, just five years after making the statement, an Everlane brick and mortar location was opened in the Nolita neighborhood of Manhattan in New York. This doesn’t mean that Michael was wrong and it doesn’t mean that he weakened. What it means is that he saw the necessity of meeting his customer’s demand for a brick and mortar establishment. It’s actually a sign of strength and intelligence to open oneself to new possibilities in the business world. Age and maturity may have had some bearing on his change of heart.
16. More Everlane stores are coming soon
Preysman shared that the company plans to open more brick and mortar outposts throughout the country. The clothing brand still remains true to its values and they offer the same radical transparency in their business operations that they always have. The reason for offering physical storefronts is because there is a need and desire on the part of the loyal customer base to have them. When you ask for feedback and your customers give it to you, a lack of response is equal to ignoring their requests and this is not something that Everlane has really ever been willing to knowingly do. They’re still customer-centric and Michael’s concession to go with physical locations is proof of his dedication and resolve.
17. Everlane is ramping up their production
Everlane has changed in the short period of time that they’ve been in business. But the changes are for the better. They are known for offering simple basics or staples in apparel if you will. Recently, they increased their product line and now they offer a variety of new items. In fact, they’ve made a commitment to offering six new items each month. They now offer leather bags, sneakers, puffer coats and much more. Their offerings have expanded dramatically, yet they maintain high quality and durability for each product that they offer.
18. Their headquarters are next to an auto body shop
You would imagine that the high-end retailer would have an executive suite in a fancy high rise building, but the Everlane headquarters is actually located in an industrial neighborhood of the Mission district in San Francisco. It’s also located right next to an auto body shop.
19. Everlane is a pioneer in retail innovation
The millennial force that powers the culture, the ethics and values of Everlane has changed the way that retailers think and react, at least some of them anyway. Michael Preysman has set a high bar that may be something that other high-end retailers are not willing to reach for. It takes a lot of work and a lot of dedication. It’s new and its novel for some but as the years go by, customers will become used to this type of service and it will shortly be one of their demands. Everlane has certainly got the right idea.
20. Everlane is becoming popular with celebrity and royals
Everlane has achieved the goal of reaching $100 million in revenue in 2016. This is an amazing feat, but there is more. They’re also attracting a crowd of celebrities and royalty. Meghan Markle has been spotted carrying an Everlane tote bag and loafers and Angelina Jolie and Karlie Kloss are also customers.