Wall Street Financiers Rewrite the Rules of Fashion

As we entered the new millennium, the fashion industry went into survival mode. An industry once reserved only for the chosen elite, fashion finally received a monetary wakeup call. During the economic crash of 2008, fashion began to expand its parameters and open its doors to those that appreciated great style along with having a healthy bank account to invest.

The fashion industry is now an open arena for almost anyone with style and deep pockets. Hence, the fashion industry‘s need to create space to compete as long as there is an understanding of the functions of a successful business. Huge corporations, such as H&M, Target and J Crew, have even re-strategized their company models by successfully fusing a corporate business plan with great and affordable, unique design. No longer are the industry’s reputable game changers revered as they once were and tastemakers are no longer reserved for magazine editors, high-end designers, and models. The new designer successes include those most likely not to attend a fashion school, but hold an MBA from Wharton School of Business, Harvard or New York University. These new kids on the style block are those that understand the importance of finance as it relates to manufacturing and the new world of fashion.

Many corporate men have an interest in dressing well. From the boardroom to law offices, businessmen understand that having the right look helps propel them in making deals. However, in the last decade, many men who have focused more on their own personal style have found American menswear lacking in quality, design, and functionality.  That said; the new crop of financiers/designers are using this missing link in American menswear as the impetus for their interests and investment in the fashion industry, proving that certain businessmen are more than just the boss of the boardroom, but purveyors of high style.

A new wave of menswear brands designed by former business investors, lawyers, and Wall Street bankers, have all entered the industry as poster children of how to develop and sustain a successful fashion businesses.  Only a small portion of the successful fashion business plan includes design, so young designers graduating from Parsons and F.I.T., please take note.

Addison, a shop located in Manhattan’s West Village, opened in 2013.  Creator, Gerald Tuchman, a former investment banker considers his latest venture a fusion of Savile Row, luxury, and contemporary menswear.  Addison’s ethos focuses on custom suiting and rebel staples like the motorcycle jacket done in exotic skins and soft suede. Creative director Tuchman states, “My role with clients is to properly educate and to style for the individual. Fashion is a business and for any business to work, there needs to be sound decision making in many areas outside of the creative areas. Design is a small slice of the pie although it is the most visible.”

Another visionary of men’s style, Robert Tateossian owner of Tateossian London, is best known as the “King of Cufflinks.” He began his career in the fashion accessories business after seven years of investment banking.  Tateossian claims he has always had a passion for design.  A lover of style and luxury, Tateossian is a successful accessories brand creating seasonal collections for both men and women. Understanding that timing is everything, brand geniuses like Tateossian have remained highly successful in business for 25 years.  Tateossian recognizes the recent upgrades in the menswear market and is riding the wave. Tateossian has attributed his success to the openness of men’s attitudes willingness to have more adventure and loyalty to the brands they represent. Tateossian states, “Men are attracted to element of branding; especially companies that have established themselves as the leader of their markets and design. This links closely to the fact that men are also very brand loyal and will stick with a company that offers consistent high quality products.”

Entreprenuers Adam Schoenberg and Cory Rosenberg are two young gentlemen with backgrounds in business and marketing that have recently transitioned into fashion. hook+ALBERT, their own creative menswear brand, applies whimsy and color to modern functionality.  Co-founder Adam states, “American men are certainly more into fashion than ever before. For some men, they are starting to understand the value of price per wear and that they should buy quality, not quantity.” A great combination for naturally creative partners these two understand what consumers are interested in and how that style applies to the quality of everyday living.  Cory contends, “Success in fashion is what you make of success. We look at ourselves as category leaders. Our divergent thinking has allowed our company to be behind some of the biggest category shifts in the accessories space-colored shoelaces, lapel flowers, colorful no-show socks etc.“

Still, during each fashion season, new brands will launch their newest collections with only a small percentage manifesting success or developing strong reputations in the industry. Regardless of strategy some of the old rules still apply and paired with a good business plan, marketing, packaging, and now more than ever great social media, success if not assured, is more plausible.

—Kelly Mills

*Slideshow image courtesy of online.wsj.com