Toryburch: Open The Next $One Billion Torysport.

Shanghai, China, if any.

It is its

The best spokesperson is ToryBurch.

As we all know, Burch is a famous actress. Her mother is a fashionable actress. Her father is a successful investor (who once had an appointment with SteveMcQueen and GraceKelly). Her current boyfriend Pierre-Yves Roussel is Lu Wei Ming Xuan group.

Chief executive of fashion department.

However, its fashion group, which is over $one billion, has been built by itself. It is no longer the stereotype of "celebrity designers" in people's minds.

"Believe in yourself.

Negative things are regarded as noise. This is what my parents taught me.

When I first started this company, I encountered a lot of objections, but I think if you have your own unique viewpoint and have the hard work preparation and determination, you will succeed, "said the woman who has metamorphosis into a respectable female entrepreneur.

Robust globalization process

"I am very proud of what we have created today, we have a very good team, and I think we need more efforts," smiled ToryBurch, who is both creative director and co CEO of the company. "When you talk about the word" empire ", it does not resonate with me deeply. I still feel that we have plenty of room for development.

Burch founded its namesake brand in 2004 (also known as TRB by Tory Burch). Before it worked in the brand of Yugoslavia designer Zoran and Harper s Bazaar, she also served as a public relations and marketing officer in Vera, Wang, and under the control of the company. So she was fully aware of the multi-dimensional perspective and efforts needed to create a successful brand.

Today, the design of Tory Burch has become one of the most famous and widely recognized American designers by virtue of the good taste of its upper east side plus the artistic freedom of a BOHO family.

The integration of the American stylish and globalized style is the key to her coming to the fore.

"We are very proud of being an American brand, but our inspiration is actually more globalized, women from all over the world, which is why our brands are resonating with women around the world," she said. "Women in China and the US are all at hand now, and they can observe everything.

For me, the world is getting smaller now. "

Burch told BoF that its customers are very similar all over the world. "They are very interesting, dress up their own characteristics, love fashion and busy, do not want very complicated Wardrobe", and her brand is to solve these problems, so that these women "dress easier".

Tory Burch is located in Shanghai's largest flagship store in the world.

In the expansion of retail channels, Tory Burch also had a sense of opening up Asia Pacific, especially the Chinese market.

Only a year after its brand was founded, she has worked with Lane Crawford to enter the Greater China market.

"At that time, we were not yet famous, and we found that there were Chinese customers on the shops and websites in New York," Burch told BoF. Lian Logo told her that her brand's meaning was quite positive: "because it represents eternity and there is a circle around it, so it can resonate in the Asian market."

After 11 years of operation, it now has 74 stores in Asia, 19 of which are located in mainland China, and its largest flagship store was completed in Shanghai in 2014.

30% of its business in China comes from ready-made clothes, more than anywhere else in the world.

"In China, we do have customers like designers who are very smart," she said.

According to Burch, this "global largest" has certain inevitability and contingency.

"At the beginning, I didn't plan to open this biggest flagship store in China, but after seeing it, we fell in love with it. China is a very good window. I wanted to build a global business from the very beginning, which is an ideal place for me to expand as part of our globalization," she said.

ToryBurchGeminiLink handbag

This decoration, like its gorgeous flagship store on the upper east side apartment, is not only cozy and warm, but also next door is a flagship store of Burch Michael, another American designer named Kors.

In recent years, similar brands have been hit by roller coaster opportunities due to overexposure. They have been lifted up by the high market and fallen high, but Tory Burch has been growing miraculously.

"We never panic.

I can say with pleasure that we are not a brand that makes money, but when the environment is very difficult, I am glad that we did not expand too much. We walked slowly and gradually, "Burch said.

One reason for the proliferation of "light luxury" is that the Logo craze of consumers has not yet dissipated. The cost of owning a large label is not high.

Burch told BoF that Logo was very prominent. In the past four or five years, she has slowed down some other businesses with Logo products.

"In the first ten years, I think Logo has helped a lot in building the brand foundation, but as an increasingly mature enterprise, I have an advantage, not just focusing on how to make the brand bigger, but how to do it better and more carefully and protect the brand." she cited the new Gemini Link handbag series inspired by her own constellation in the Chinese market: "it is not a clearance for our Logo, but something to add.

When I observe my Logo and envisage its work, we think more about practicality and symmetry, which is an iteration of Logo culture and consumption habits.

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Open the next $one billion TorySport.

At the moment, the pace of Tory Burch is still moving forward. If its "light extravagant" empire was built on those Reva flat bottomed ballet shoes, then the brand crown of her new sports brand Tory Sport might be the $125 Chevron Chevron lace bottomed tight trousers, inspired by the sportswear of the 70 age, but it will not go back to ancient times too much.

Tight pants are very comfortable, made of tightly knitted lightweight Tactel nylon fibers. They are not itchy or plastic. They feel like velvet, the fabric is half opaque, and the wearer or brand has no chance to fail at all. There is no chance of failure like Lululemon's thin trousers.

"This is the real function and the pattern," Burch explains the concept of Tory Sport. "We want to say something different."

She told BoF: the first time she had this idea was in 2010, when Lululemon was far from being worth billions of dollars, and the overflowing "sports and leisure wind" had not yet been born. The global sportswear and sports footwear market was far from expanding rapidly. In 2015, the sales volume of the market reached 270 billion US dollars, and Morgan Stanley said that the figure would reach 353 billion dollars by 2020. "Morgan"

In the US alone, sales of sportswear reached $97 billion in 2015.

But "sportswear" is a very broad term. It includes equipment for athletes to participate in strict sports training, such as sports supporting underwear and windbreaker with ergonomically designed sports, including clothing that can absorb sweat and wear for a long time, such as well-designed tight sports trousers or high-tech knitted fabrics that are quickly replaced after yoga classes.

Hand held large cups of Starbucks coffee cups, wearing yoga pants, walking in a clean and bright shopping mall in the suburbs to enter a juice bar, the image of an American woman is already familiar with "rotten Street".

But in addition to "spoiling" consumers and making them look forward to more clothing that suits the market, sportswear goes further.

"Customers look forward to more casual, functional clothing with specific functional elements." when Podolf Goodman (Bergdorf Goodman) became the first wholesale customer of Burch in 2004, then fashion director Robert Burke said, "you can see that there are many other technologies for tannin fabrics, and there are more fast drying fabrics and more comfortable clothes on them."

Together with her brother and Tory Burch RobertIsen, Burch spent three years developing the concept of Tory Sport, and then hired the first batch of members of the brand (the team size is still very small).

At that time, the sportswear pioneers like Sweaty Betty had been in operation for more than 10 years, but by the time the Tory Sport began to take shape in 2013, many large retailers including OldNavy, H&M and so on entered the market. Many new brands came out, such as Lucas Hugh, Livethe Process and other fashion world favorites, as well as startups such as Tracksmith, Process, etc.

"Many people have seen the direction of her development," Burke said. "I think this is more competitive than everyone imagined."

"The way women dress has changed, but four or five years ago it was not as obvious as it is today," Burke said. "It's more like an instinct, something I personally miss, and I think it might be a good complement to our store."

Tory Burch told BoF that her motivation to start Tory Sport was different from the main line she created.

At that time, she was looking for the perfect long blouse, and this time it was because Burch was disappointed with the sportswear in the market (she had always been a customer of her own brand).

"I was a fake kid and an athlete from childhood. I found that my favorite clothes were clothes from high school and college," she said.

But now the difference is: Despite the advantages, Burch will have potential losses in many areas.

For Tory Burch, which sells more than $1 billion a year, people may expect the concept of sportswear similar to other well-known mature brands: selling the capsule product series in more than 150 existing independent stores of the brand, perhaps displaying it in a corner of a shop with special identification and labelling.

But Burch also wants to do more.

"What we want to do is not to make it the second part of the brand, not to make a secondary line," she said. "We want to do more."

Obviously, her progress is still cautious.

"One of the reasons why we do TorySport like the brand we built before is to maintain that entrepreneurial spirit.

To maintain that vibrant look is like an innovation lab, "Isen, President of enterprise development at Tory Burch, added," Tory Sport complements major brands in many ways.

We have invested in the knowledge gained during the past 8 years in establishing the company process and embodied it in Sport.

In a sense, this condenses the essence of our two worlds.

In 2009, Burch sold its minority stake to Tresalia Capital, a private Holdings Company in Mexico, but she remains the largest shareholder of the company.

She regarded the new brand as "internal entrepreneurship" and did not seek external supporters.

Two years ago, she hired a senior veteran of the industry, Roger Farah, who worked in Ralph Lauren for nearly 15 years, to work with her as co CEO.

They reorganized the company, prepared new brands, upgraded key infrastructure, and laid off about 100 people by the end of 2015.

"We want to do a healthy business and spend a lot of time on restructured company to invest in the important systems at the beginning stage," explains Burch.

Now we feel ready to take the right path to growth and get the right protection because we really believe in this brand. "

To be precise, Tory Sport already has its own brand logo.

Tory Burch's sunshine and earth color system in 1950s retained the temperament of Moss (Mod), and Tory Sport had more stimulation.

TorySport2016 autumn winter series

From the aesthetic point of view, the starting point of Tory Sport is the 1970s tennis idol, such as Bjorn Borg, John McEnroe and Chris Evert, which are their color patches and their towels.

More specifically, "the starting point is the Wes Anderson" The Royal Tenenbaums, "Burch said." for me, this is the way I grew up, the way I look at sports, "Weiss Anderson said.

Similar to her garment brand, Burch plans to embed these original aesthetic visual cues into the Tory Sport permanent brand DNA.

"We don't want to lose those '1970s inspiration,'" explained KerstinDorst, senior director of design and research and development at Tory Sport, who joined the team from Adidas in 2013. "We are confident."

This coherence may be the place where the brand stands out.

"The uniqueness of Tory is that when she launched the Tory series, she succeeded because she knew how to fit her customers and fit their lifestyle," Burke said. "She is very focused, who knows who she is, and her vision never deviates."

But design aesthetics is only a brick built by Burch five years ago.

Fabric research and development is also a key link.

"For me, it may be more difficult, because I started from scratch," Burch said. "If you talked to our team, they wouldn't think it was easy."

For Dorst, the most important thing is to cooperate with the right yarn suppliers.

"Innovation starts with the foundation and starts with raw materials," she said. "What is the best yarn we can get? For example, our tight pants fabric, its special structure makes the fabric super light, but dense interlocking makes the fabric safe, so it is opaque."

The star fabric also includes Tactel, and the brand also incorporates moisture absorbing fiber Coolmax Everyday into cashmere sweater.

"So you can have a sweater that feels like cashmere, but super breathable, and at a fairly good price point," Burch said, referring to the brand's $285 evergreen V sweater.

"What we want to do is the best price, but the highest quality and fit."

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TorySport shop in Eastern Hampton District

Although some people like to joke that most yoga pants are not worn for yoga, Burch insists that his sports equipment must have high athletic performance.

The Coming&Going series of Tory Sport is suitable for everyday wear, but the performance is just as good as the sports clothes that can be directly trained on the body, and is also the most popular series of the brand.

"This is our first ranking category, which is sportswear, both functional and comfortable.

What I want to do is super high performance, which looks very natural. It looks like cotton, but it has good permeability and hygroscopicity, and sealant sealant, "she continued." by working with many companies, I learned a lot about knowledge of fabric functions, many of which are equally important inside and outside design, and everything is centered around technology and dynamics. "

Although there will be a large number of jackets coming out in the autumn, the main sportswear categories include running, tennis and golf apparel.

The brand's tight bottoming trousers (also the key to any successful sportswear brand) are becoming more and more popular. "Our tight pants are really doing well," said Isen, President of enterprise development.

It's hard to tell how good it is.

The company still keeps silent about the financial performance of TorySport, but Isen said, "we hope this can become a truly large company." the investment in new stores also shows that the company's ambitions for this branch brand can at least be equal to that of the main line brand.

Last fall, the original Tory Burch Elizabeth Street (ElizabethStreet) store had been pformed into Tory Sport nomadic shop; last spring, ToryBurch opened its first permanent Tory Sport store across the street from its corporate headquarters to the Fifth Street, and the street was also an active retailer cluster, also known as Athleisure Row ("Sports Leisure section"), including Gap's, Sport, HQ, multi brand high-end stores and halls.

The Tory Burch store in Eastern Hampton has been pformed into a Tory Sport nomadic shop. It has just become a permanent store in the past summer.

In September of this year, Tory Sport opened to Dallas, followed by the October Mallof America to Bloomington, Minnesota, Honolulu in December, and Las Vegas in March 2017.

From September 28th to October 1st this year, designers also held nomadic activities on the roof terrace of Rodeo Drive store in Losangeles.

"Our strategy is to search all over the United States," Isen said of the brand plan. "We must wait patiently and do things in the right place, in the right neighbouring businesses and in the right areas."

"We should also consider the tourism industry," Burch added. "For example, the attraction of Hawaii shopping malls Ala Moana to Japanese customers is unbelievable.

It would be interesting to consider international distribution.

Now all department stores and partners in all countries are very interested in us.

"In China, we still need to do some preparatory work. We still want to be very careful in the market.

The reason why I personally love this concept is that this series can be regarded as a partner of our company, not second brands. Different aesthetic designs bring a large number of new customers to genuine fashion plus functional combinations, "she continued." I can imagine that Chinese women wear not only fitness but also wear a great wool sports pants when they go out for work, and the market will gradually see the attraction of this concept. Now we have to understand what time and place to bring this beautiful concept to China through strategy.

But now wholesale business is only 10% to 15% of Tory Sport business after direct retail sales.

(now the brand product line is only distributed through its own channels with Barnes, New York.

"But our mode is not fixed," Burch evaded the question. "Our main brands have great partners, but Sport is different.

We also want to look at different adjacent businesses and see how we can match their footprints and business models.

I think wholesale business is also changing. "

Of course, the top priority of many brands is to solve the problem of wholesale and direct consumers, and more and more brands are seeking to build deeper ties with consumers who choose to be proud of themselves.

Burch has been doing direct sales from the very beginning, which may be one of her strengths to get rid of this problem, especially when compared with other middle end brands that rely on wholesale customers to get the main revenue.

But the close relationship between Burch and consumers brings the biggest advantage to the new enterprise.

This is also one of the reasons for persuading Farah to accept the position of CO CEO.

"I think the position of Tory and her company is unique in this market," he said. "I am surprised that the consumer's reaction to Tory and her response to the message and her success has been very helpful."

But this does not mean that development can be smooth.

The sportswear market may be developing very strongly (Nike said it hopes to increase its women's clothing business from $5 billion 700 million in 2015 to $11 billion in 2020), but the market is already crowded and shows signs of growing pains: Although Nike's international business is still growing, its revenue in North America in the 2016 quarter of 2015 is flat, which is about 270 million dollars different from expected. UnderArmour although sales in the fourth quarter of 2016 fiscal year increased 28% to 1 billion dollars, the profit dropped by 57% (the first time that the Baltimore company did not exceed analysts' expectations since 2008); other brands such as Theory have already closed down sports product lines; KitandAce, the biggest rival of Burch technology cashmere products, has lost about 10% (February 2016) in February 2016.

Co chief executive Farah believes that Tory Sport is developing in the long term because it is possible to be privately held by its parent company.

Although the Tresalia investment act in 2009 speculated that Tory Burch would be ready to make an initial public offering (IPO), the designer insisted that this was not her intention.

"When you go public, you have to declare quarterly performance, which will create some kind of trend," Farah said. "It's not that bad, it's just different.

Maintaining private ownership allows us to focus more on long-term decisions in the future.

Sport itself is an example. "

Now Burch and Isen only focus on products.

"You can't get the right products, so the market will not forgive you," he said. "This is a highly competitive market. Customers are choosing a lot and they know a lot about products.

It is because of so many choices that if you fail to make the brand, she is impatient to wait for you.

To some extent, you can only do so much for bottoming tight pants, sweaters and T-shirts, "Burke said." with the classic American nostalgic historical archives color and styling style, Tory has carved out a niche market.

I think she has the opportunity, but this is also a process of educating consumers, and it is a big investment. "

Luckily, Burch is the essence of Tory Sport brand.