A year after launching accessories label JW Pei, husband-and-wife duo Yan Pei and Stephanie Lee were faced with a choice: up or down.
When the two launched their brand selling bags, shoes, and other accessories in 2018, it fit firmly into the accessible luxury category, with products like the now-discontinued Fiona bag. The bag was on sale for $300. But after launching, Pei said the company found only “tepid success.” The contemporary sector, which often occupies the stark middle ground between luxury and fast fashion, is becoming increasingly saturated with labels such as Staud, Danse Lente and Rouget.
To differentiate themselves, modern brands like Isabel Marant have raised prices to sell to higher-income customers who are usually less affected by economic downturns. But JW Pei did the opposite.
The accessories label's hero product, the Gabbi handbag, features a ruched shoulder strap and a hobo shape, and is priced at $89.
“We function like a high-tech company, so we can keep our prices low,” said Pei, the label's CEO. “We only make what the data shows will sell.”
When deciding which bags to produce, JW Pei says he looks at what bags are being added to carts, “which ultimately leads to sales,” and orders products accordingly. and eliminate excess inventory. Additionally, the brand owns its entire supply chain, a pillar that Pei says enables the brand to grow profitably. Last year, the brand's sales reached $50 million, an increase of 50% compared to 2022.
The brand is not only profitable and growing, but also has many prominent fans. Stars such as Gigi Hadid, Megan Fox and Emily Ratajkowski have been spotted carrying JW Pei bags. The brand's bags have also appeared on the red carpet, with actress Selena Gomez wearing a glittery Gabi bag to this year's Golden Globe Awards.
To drive further growth, JW Pei wants to use artificial intelligence to speed up its design process, open new stores and expand its geographic footprint. Meanwhile, parent company PL Brands Group has been buying up competitors such as Danse Lente, betting it can build a network of affordable bags that are a little more upscale than fast fashion.
“Consumers are feeling the pressure across their wallets,” said Kristen Crassi-Zumo, apparel industry analyst at Circana. She said: “Consumers are switching to fast fashion or camo. For those trading, the ceiling is much lower and they're settling for modern fashion.”
create a buzz
For consumers like New York City writer Jacqueline Germaine, who owns three JW Pei bags, the brand feels like a “step up from Zara” at a price point that's much easier to swallow than designer brands. Masu.
Pei said the combination of “high-quality materials” and trendy design details contributed to the brand's growth.
“We were quietly building a community on Instagram where our products could really shine,” said Lee, the brand's creative director. “This topic naturally spread primarily because we believe it is fun and playful, but also because this bag can be worn over and over again in different situations.”
Further driving this buzz is the brand's celebrity fan circle. Former eldest daughter Ivanka Trump was one of the first celebrities to order from the brand's site, which led Pei and Lee to start sending bags to celebrity stylists, and eventually to Hadid and Hailey. -Can now reach Beaver's arms. Since then, Pei says the brand has grown exponentially.
“You see $600 bags and Birkins on models, but bags under $100 get the press, paparazzi and social media attention,” Pei said. “It's a win-win for us and the stylists.”
Celebrity references continue to be a major tool for driving conversation online, and the brand exclusively seeks connections with celebrities like Hadid and Bieber.
“We're a little-known brand, but everyone around the world will soon know who Gigi Hadid is,” Pei said. “This is a strength we can leverage as we enter new markets such as Japan and South Korea, or partner with new retailers. Working with local celebrities would not be as effective. ”
what's next
The brand has relied on data-driven product strategies and celebrity endorsements to get this far, but JW Pay is looking beyond those strategies in 2024.
The company plans to launch a ready-to-wear line this year and begin experimenting with artificial intelligence in its design process. JW Pei uses the generative AI program Midjourney to help with fashion design research, allowing you to go beyond design sketches and identify emerging trends and silhouettes faster. The label's human designers, led by Lee, will use the findings to determine new color schemes and material choices to create collections.
The goal is to shorten production time to get trendy items to consumers faster, Lee added.
Later this year, the brand, which sells through its own e-commerce platform and wholesale partners including Nordstrom and Selfridges, plans to open its first brick-and-mortar store in New York's Soho district in the fall. Store inventory is determined by data. Before opening the store, JW Pei launches his marketing campaign online aimed at determining what products and styles New York consumers want to purchase. Only applicable products will be sold in stores.
The plan is to repeat the process elsewhere, opening 20 stores in the U.S. and London, Dubai and Hong Kong within the next three to five years.
But perhaps JW Pei's biggest ambition is to expand the reach of its parent company, PL Brands Group, owned by Pei and Li.
In December 2023, the company acquired Danse Lente, a London-based accessories label and one of JW Pei's competitors, and hopes to apply the same approach to the label as JW Pei. That means expanding into new categories, entering wholesale, and, of course, lowering prices. The company also owns China-based manufacturing and distribution company Romonte International, so it controls the supply chain for both brands, giving it greater control over pricing, material costs and labor costs.
“Danse Lente's brand value is high, but the price is too high,” Pei said. “With our factory, we can lower our prices, test new styles online, and ensure we continue to grow our brand.”
This year, we hope to add three new brands to our arsenal, either through internal launches or acquisitions. By keeping the strategies at the heart of the business that have brought fruitfulness to date, Pei believes the business can continue to grow.
“Everyone has the ability to design a bag, have a beautiful image and do strong marketing. That's why the $300 price point and the modern market is a dead zone,” Pei said. “In a few years, the biggest differentiator will be supply chain and how companies can capture consumer attention in new ways.”