The multi-branded boutique has become a shopper’s paradise. Where some time ago, consumers turned to department stores to purchase a wardrobe from top to toe, it is the smaller more personal boutiques that now captivate audiences.
Intermix has emerged as a captor of talent and Nolcha spoke with new CFO Donald Choi about the new intermix.com global and the launching of e-business for new designers. Nolcha: You have been involved with individual brands, as well as multi-branded businesses how does looking at money differ in terms of what is planned for?
Donald Choi: It is important to for any designer to know its customers, thereby creating a proper Sales/Revenue forecast and budgets. This tool can be use to help raise capital and manage cash flow. Cash flow is the key for any business to survive. You really have to manage where the money is coming in from to pay the bills and employees.
N: What intrigues you about a new designer/design business that makes you want to work with them and help them grow as opposed to large labels?
DC: Opportunity! It feels great to help young designers grow and build a business. There is so much to learn and someone with my knowledge can help them avoid costly mistakes as the business becomes more scalable. My interest relies on two points: building a business and of course making money. As a startup I can get up to 5 points of a company as a financial advisor and if the designer ends up like Seven jeans that sold for $880 million I can make a hefty profit.
N: Intermix had branded a reputation for young, chic and luxurious, how as the CFO do you feel you are going to expand the business but still keep the niche market?
DC: We can expand the business by getting more exclusives from designers and selling it through select locations and online web business. There are many strategies to implement but we believe on focusing our efforts through customer service which the bigger retailers can’t focus on.
N: How does Intermix support the new designer?
DC: If we like the designs/styles we will place an order and do some sort of co-marketing selling strategy. Again the Ecommerce is a great and inexpensive tool to help market a designer.
N: With the emergence of Intermix boutiques all over the country, how are you concentrating on web business as well, while the company expands?
DC: The web business has no limits. Next month we are launching our ability to sell internationally via web. Potential growth and valuation for this business model is strong and the company has spent millions in building the infrastructure for scalability and service. Implementing new technology is important for the customers as they continue to trust our sizing and product quality. The downside with web purchasing is the actual fit size plus touch and feel of the clothes. Intermix does it's best to address these issues by hiring a fit model to validate the size of the clothes and zoom features so that the customer can see the styles better.
N: Working with a legend like Diane Von Furstenberg, what have you learned about the creative side of the fashion industry that helps you in your business decisions?
DC: Creative people are unique and they have this ability to see outside of the box. As a business man I need to try to understand where they are coming from and help them understand that whatever they do will have an impact on the business and how to turn that into making profit versus a straight expense.
N: With a background in finance and business, who inspired you to turn to the fashion industry?
DC: My original Mentor and Director of Finance over at Arnell Group, Mr. Charles Rose.
N: What do you feel designers need to think about when preparing to launch a business, as far as budget planning, approaching retail buyers etc.?
DC: A designer can't know the answer to everything; they need to develop a smart team of people who can help grow their business. That is the best strategy. Everyone has their strength and weakness. Find the right people to do the budgets and forecasts and find the right sales people who have the contacts and relationship with the buyers. That is the biggest challenge for any designer is finding the right people to work with, it can make or break or business.
N: What one word do you feel is most important in the business world?
DC: Never ASSUME anything!
N: Given the current economic status why would you still encourage someone to be an entrepreneur?
DC: Always - Opportunity exists - one person failure leads to another person success, the question is which one are you?
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