JW Pei’s Bags Are a Hit With Celebrities. Can They Catch on With Everyone Else?

A yr after launching equipment label JW Pei, husband and spouse duo Yang Pei and Stephanie Li had been confronted with a alternative: Go up or down.

When the 2 launched their model, which sells baggage, footwear and different equipment, in 2018, it sat squarely throughout the accessible luxurious class, promoting baggage like its now discontinued Fiona Bag for $300. However after launch, it had discovered solely “lukewarm success,” Pei stated, because the modern sector, which sits within the often-tough center between luxurious and quick trend, was turning into more and more saturated, with labels like Staud, Danse Lente and Rouje.

To distinguish, modern manufacturers like Isabel Marant hiked their costs so they may promote to higher-earning clients who’re often much less susceptible to financial downturns. JW Pei, nonetheless, did the other.

The equipment label’s hero product, the Gabbi purse, which contains a ruched shoulder strap and hobo form, is priced at $89.

“We will maintain costs low as a result of we perform like a tech firm,” stated Pei, the label’s chief government. “We solely make what the info tells us will promote.”

In deciding what baggage to provide, JW Pei appears at what baggage are added to cart and which “finally flip right into a sale,” Pei stated, and orders product accordingly to remove extra stock. Plus, the model owns its total provide chain – pillars which Pei says have allowed the model to develop profitably. Final yr, the model grew gross sales 50 % over 2022 to $50 million.

Extra than simply worthwhile development, the model has earned a crop of high-profile followers. Stars together with Gigi Hadid, Megan Fox and Emily Ratajkowski have been noticed carrying JW Pei baggage. The label’s baggage have additionally made it onto the crimson carpet, with actress Selena Gomez sporting a shiny Gabbi bag to this yr’s Golden Globes.

To drive additional development, JW Pei desires to make use of synthetic intelligence to hurry up its design course of and broaden its geographic footprint with new retailer openings. In the meantime, its mum or dad firm, PL Manufacturers Group, is buying its rivals, like Danse Lente, betting that it might construct a community of inexpensive baggage that really feel a bit extra luxe than quick trend.

“Shoppers are feeling stress throughout their total pockets,” stated Kristen Classi-Zummo, trade analyst for attire at Circana. “Shoppers are buying and selling all the way down to quick trend or to dupes. For these buying and selling up, their ceiling is way decrease and has landed in modern trend.”

Producing Buzz

For customers like New York Metropolis-based author Jacquelyne Germain, who owns three JW Pei baggage, the model looks like “a step-up from Zara” with a price ticket a lot simpler to swallow than a designer label.

In response to Pei, that blend of “top quality supplies” with fashionable design particulars has been instrumental to the model’s development.

“We had quietly constructed a neighborhood on Instagram the place our merchandise actually shine,” stated Li, the model’s artistic director. “The excitement had been natural largely as a result of I consider we’re enjoyable and playful, but in addition, the luggage will be worn time and again and in numerous conditions.”

One other enhance to that buzz has been the model’s circle of movie star followers. Former first daughter Ivanka Trump was one of many first identified names to put an order on the model’s website, prompting Pei and Li to start sending their baggage to movie star stylists, finally touchdown on the arms of Hadid, Hailey Bieber and extra. Since then, Pei says, the model’s development has been exponential.

“Any $600 bag or a Birkin will be seen on a mannequin, however the press, paparazzi and social media concentrate when the bag is lower than $100,” stated Pei. “It’s a win-win for us and the stylists.”

Celeb placement stays its major device for driving dialog on-line, and the model is solely seeking to join with large names like Hadid and Bieber.

“We’re a little-known model, however everybody on this planet would immediately know who Gigi Hadid is,” Pei stated. “That’s our leverage once we enter new markets like Japan and Korea or work with new retailers. Working with native celebrities wouldn’t be as efficient.”

What’s Subsequent

Counting on a data-driven product technique and movie star endorsements has gotten the model this far, however JW Pei is wanting past these techniques in 2024.

This yr, the corporate will launch a ready-to-wear line and start experimenting with synthetic intelligence within the design course of. JW Pei will use generative AI programme Midjourney to help in trend design analysis — so it might extra rapidly establish rising developments and silhouettes — in addition to sketching the designs. The label’s human designers, led by Li, will use the analysis to tell new colourways, materials choice and produce collections.

The aim is to shorten manufacturing occasions to get fashionable objects to customers sooner, Li added.

Later this yr, the model — which sells by way of its personal e-commerce platform and wholesale companions like Nordstrom and Selfridges — is about to open its first brick-and-mortar store in New York’s SoHo neighbourhood within the autumn. The shop’s inventory will probably be decided by knowledge: Previous to opening the store, JW Pei will launch an internet advertising and marketing marketing campaign designed to find out which merchandise and types New York customers need to purchase. Solely these merchandise will probably be bought in retailer.

The plan is to repeat this course of in different places, and open 20 shops within the US in addition to places in London, Dubai and Hong Kong within the subsequent three to 5 years.

However maybe JW Pei’s biggest ambition is to broaden the attain of its mum or dad PL Manufacturers Group, which is owned by Pei and Li.

The corporate acquired Danse Lente, a London-based equipment label and considered one of JW Pei’s rivals, in December 2023, and needs to use the identical strategy it took with JW Pei to the label: Increasing into new classes, getting into wholesale and naturally, reducing costs. As a result of it additionally owns China-based manufacturing and distribution agency Lo Monte Worldwide, it controls the availability chain for each manufacturers, giving the corporate extra management over pricing, supplies and labour prices.

“Danse Lente has nice model worth however their costs are too excessive,” stated Pei. “With our factories, we’ll have the ability to drive the costs down, take a look at new types on-line and make sure the model retains rising.”

This yr, it hopes so as to add three new manufacturers to its arsenal, whether or not via an inner launch or acquisition. In conserving the methods which have proved fruitful up to now on the coronary heart of their enterprise, Pei believes it might maintain increasing.

“Everyone has the aptitude to design baggage, have stunning pictures and powerful advertising and marketing, which is why the $300 worth level or the modern market is a lifeless zone,” stated Pei. “In just a few years, the largest differentiator would be the provide chain and the way effectively an organization is located to get the buyer’s consideration in new methods.”