Italist is capitalizing on Americans’ growing obsession with Italian luxury fashion with a strategic approach that combines seasonal discounts with curated selections.
With its expansion into the U.S. market, Italist aims to capitalize on the demand for premium Italian brands and provide a more affordable entry point for American consumers who seek both quality and value in their luxury purchases. The move reflects Italist’s intention to integrate Milan’s renowned fashion directly into the American luxury wardrobe and transform the way Italian luxury is experienced in the United States.
Putting a price on Italian fashion
At the heart of Italist’s strategy is a unique pricing model that leverages seasonal inventory from Italian retailers, allowing the platform to offer luxury fashion items at 30% to 40% discount off traditional retail prices.
“We were able to offer new trends before anyone else,” Italist CEO Diego Abba explained in an interview with PYMNTS CEO Karen Webster.
This ability to offer high-quality, contemporary fashion at competitive prices sets Italist apart from traditional luxury retailers and allows it to attract discerning customers who seek both exclusivity and value.
Curated selection plays a key role in Italist’s operations. Abba highlighted the platform’s strict brand curation standards, saying, “We do a certain amount of curation on our side.” Unlike competitors who sign exclusive deals with boutiques, Italist offers a diverse range of brands. This approach allows the platform to offer a wide range of luxury products.
Inventory Management
As an authorized dealer, Italist has control over inventory and pricing, contributing to a seamless shopping experience. “We control everything from inventory to pricing,” said Abba, emphasizing the importance of this control in providing a trustworthy customer experience.
With big-name brands like Chanel and Hermes dominating the market, Italist’s strategy makes it a notable competitor. Acknowledging the continued success of those brands, Abba noted that “Chanel and Hermes continue to grow sales thanks to their exclusive distribution channels.” He acknowledged that this exclusivity plays a key role in their continued appeal.
Abba also shared his views on the broader luxury market, paying tribute to past designers like Versace and Armani, known for their craftsmanship. “They were all really good at cutting dresses,” Abba said. Abba contrasted Gucci’s ’70s-inspired style with his interest in Valentino’s future direction.
Multi-brand shopping experience
In the context of industry trends, Abba highlighted Chanel’s successful foray into cosmetics, saying, “Chanel has very strong margins in cosmetics.” He stressed the importance of such a strategy for new luxury entrants. Abba’s own luxury philosophy, with its focus on quality akin to haute cuisine, is in line with the values of brands like Hermès. “To me, luxury is a passion for quality,” he explained.
Italist reported that its second-quarter revenue increased 8% compared to the first quarter. The company manages inventory for more than 2,500 brands, mainly in Italy, and deals with challenges such as product authenticity and customs complexities.
Despite rising costs and unpredictable customs fees, Italist has maintained its four-day shipping standard. But its aggressive pricing strategy and no-returns policy have raised concerns about its long-term profitability. “Price is a combination of what the brand agrees to sell to us for and what we decide to sell for,” Abba noted, adding that the high cost of returns due to international shipping and customs means it can’t offer free returns. “We encourage everyone to always check carefully before purchasing. The risk of returns is high.”
Going forward, Italist’s success will depend on its ability to integrate advanced technologies that streamline transactions and improve customer experience. Abba’s strategy blends tradition with innovation, enabling Italist to adapt to the evolving luxury market and meet the growing demand for personalized, high-quality products.
More information: Diego Abba, e-commerce, e-commerce marketplace, trending news, Italist, luxury fashion, luxury retail, news, PYMNTS news, pymnts tv, retail, video
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