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Fashion Stake


HBS student will be starting up Fashion Stake, putting quite a spin on the recent interest in the democratization of fashion. NYMag’s The Cut pulled a quote from WWD:

By buying a $50 stake in a company, “supporters” will be given credits to put toward clothing purchases, as well as special offers like exclusive previews, showroom visits and fashion show invitations. Interestingly, case studies have indicated shoppers value having personal experiences with designers more than getting discounts, Weng said. Supporters will also vote for the styles they would like to see produced.

Fashion Stake is going to start with only 5 designers and apparently some established labels plan to create capsule collections especially for the site.

Fashion Stake Homepage, via The Cut

I am personally not sold on the idea as Fashion Stake as an investment tool. With the launch, each label may get many first time investments without establishing real loyalty and subsequent repeat donations. And with only 5 designers to begin with, Fashion Stake will have to quickly grow its portfolio in order to have any real leverage. Fashion Stake’s most likely success will be as a marketing research tool. Labels will have the opportunity to conduct their own research and really see what the consumer has in mind (something that consulting firms are paid big bucks to do).

However, aspiring luxury brands will want to be wary of this site. The entire point of luxury is about scarcity and exclusivity. By letting consumers essentially vote on your brand, you pretty much destroy any chances of that type of elevation. Could a label really become the next Rodarte or YSL when consumers so blatantly have input on the specs of a garment? My guess would be not at all.

One Comment leave one →
  1. 12/01/2010 4:24 PM

    we always keep track of our family tree because it is exciting to know the family tree *’~

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