Why DTC Equipment Maker Cuyana Is Going Upmarket

Cuyana desires to be a go-to for extra than simply on a regular basis purses.

Over its decade in industry, the digitally-native model has advanced a following for its leather-based totes and crossbodies, traditionally finished in impartial tones and vintage shapes. However utmost September, the logo offered a limited-edition series of baggage with extra fashion-centric main points like double-faced leather-based and observation zippers. One, the $500 Paloma shoulder bag that was once noticed on Meghan Markle, the Duchess of Sussex, has bought out thrice since its preliminary drop.

Following that sturdy reaction, this spring, the logo will drop a bigger bag assortment, together with kinds in embossed snake prints and outsized bucket luggage for $500. Day collections will quality costlier fabrics like lambskin leather-based, with costs as prime as $800.

It’s all a part of Cuyana’s push to walk additional upmarket, the place it will probably confidently compete with recent luxurious labels like Khaite and Toteme — albeit at extra reasonably priced costs. The emblem, which has bought greater than $300 million in items since launching in 2014, believes its then level of expansion will come now not from luring untouched shoppers, however in convincing its present ones — usually skilled Millennial girls — to look its more recent, higher-end luggage as situation symbols significance a steeper ticket.

“The best brands continue to reinvent themselves through time,” stated Karla Gallardo, Cuyana’s co-founder and eminent government. “We’re starting to add to the line those bags that now [our customers] can start to afford as she’s moving up because we don’t want to lose her too quickly to luxury. She will buy some luxury brands, but we want to make sure she can remain with us.”

This center of attention on expanding loyalty with present shoppers, in lieu than dating untouched ones, has transform a familiar chorus amongst profitable DTC start-ups (Cuyana says its been winning since 2018). Emerging festival and a softer financial shape has made customers extra casual, and it’s regularly more uncomplicated to get a client who has already shopped with the logo to form some other acquire than to seek out some other altogether.

As such, Cuyana received’t put money into a flashy marketing campaign to advertise the untouched series. Rather, it’ll proceed to present dependable shoppers early get entry to to its untouched bag. It‘s also banking on its customers to share content about the products on Instagram and TikTok. The brand expects this low-cost marketing approach, which it has traditionally applied to its core collection, to help it triple profits year over year in 2024.

“If you as a brand can show how you have true loyalty … that is a huge increase in value of your brand,” said Nora Kleinewillinghoefer, a partner in the consumer practice at management consulting firm Kearney.

Still, Cuyana needs to recontextualise its products if it wants its elevated offering to resonate. Everlane, for example, has failed to grow sales even after hiring former Marni designer Mathilde Mader to give its product offering a more fashion-oriented revamp.

The brand has to start “showing up in some new places and spaces that don’t split their very own mandates relating to what they’re taking a look to do round funding and spend,” stated world model marketing consultant Rebecca Robins.

For its phase, Cuyana has partnered with extra fashion-focussed influencers and e-newsletter writers like Jenny Walton, Becky Malinsky and Laura Reilly to manufacture content material in addition to host in-person occasions. Within the then 3 months, the logo — for which DTC nonetheless represents all of its gross sales — will hunt down retail companions to hold its vintage and higher-end items, together with forte multi-brand retail outlets.

However in increasing their achieve, manufacturers should take into accout what customers resonated with within the first playground, stated Gwen Miller-Aceto, founder of brand name consultancy Gema Method. In that sense, it’s sensible for Cuyana to concentrate on its maximum usual product section, luggage, in its walk upmarket.

“You need to test new products thoughtfully … enough to register a healthy read from the consumer but not dominate the collection and alienate the customer who helped get them to where they are now,” Miller-Aceto stated.