I’’ll admit I was confused about this idea because the article lead Roberta quoted seemed to fall into that “too-good-to-be-true” category. Obviously the factories involved couldn’t be duplicating the luxury designs since that would lead to copyright battles, as well as the loss of the luxury brand’s business. But, after thinking about it, it finally dawned on me that this was another spin on the very lucrative “Direct-to-Consumer” marketing platform which is flooding the internet. In D2C marketing, a company manufactures, markets, and distributes their own products without using middlemen, a process which enables them to reduce costs and interact directly with consumers.
Italic’s spin seems to rest solely on its D2C software platform and its (unverified) claim of a stable of unnamed factories who have manufactured “luxury” goods in the past. Jeremy Cai, Italic’s founder, is up front about the fact that, unlike traditional D2C companies like Warby Parker and Casper who both manufacture the product and sell it directly to the consumer, Italic won’t be involved in the designing and manufacturing of the items—or even be actually purchasing the inventory Italic will be marketing to its “members”. From what I’m reading, “product designers” at the (mainly Chinese) factories will be left alone to create and manufacture items and, for a commission, Italic’s role will be to just provide the software platform to market products to its “members”. It’s interesting, too, that members have to pay $120/year for the “privilege” of being able to see the items advertised—a sign of “exclusivity”?
Italic promises it will have its own inspection process, but I’d read the disclosure on the website very carefully since quality concerns, shipping mishaps, refunds, and returns might not be handled in the same way as more conventional e-commerce transactions from a store or brand name. You are buying your unbranded product from a factory in another country—and product and customer service expectations might hold some surprises. As well, factories who sign up are under no obligation to use their “luxury” brand level of materials or specifications to create Italic products.
What really fascinates me, though, is that, in just a few days, over 15,000 people have put their names on Italic’s waiting list, and are anxious to purchase a $125 membership before any products have actually been shown or even produced. Apparently just the aura of a connection to a “luxury” brand and the thought of a “bargain” is enough to get investors and consumers salivating.
