How War Changed Ukrainian Brand Sleeper

Almost a decade in the past, Kyiv, Ukraine-based former style editors Asya Varetsa (of Elle Russia) and Kate Zubarieva (Ukraine’s Pink journal) had been dreaming up a reputation for his or her yet-to-be-launched model of what they referred to as “strolling sleepwear” — basically, fancy pyjamas. Zubarieva recommended the identify “Sleeper,” a catchy and actually descriptive moniker with an alternate that means.

“They name ‘sleeper’ a horse that nobody expects to win, however wins in any case,” stated Varetsa.

That double entendre would show to be becoming when Russia invaded Ukraine in early 2022, forcing the model into survival mode.

The struggle made Varetsa and Zubarieva, now based mostly in Copenhagen and Istanbul respectively, look inward. Over the course of 2022, the self-funded model’s gross sales — which had reached over €15 million ($15.9 million) in 2021, propelled by the success of its feather-lined pyjamas — shrunk 20 p.c. They needed to relocate their workforce and rework their operations and manufacturing.

Regardless of the difficulties, the model has persevered: after rapidly shifting manufacturing to a brand new manufacturing facility in Turkey in February, the enterprise has stabilised and is positioning itself for progress, stated Varetsa and Zubarieva. In April, the model reopened its Kyiv atelier and has begun shifting some manufacturing again to town. Now, Sleeper is unveiling a rebrand with that message of resilience at its core.

“We realised we’re type of like that horse,” stated Varetsa.

Beginning with a brand new brand on Oct. 31 — a horse carrying a yellow flower, an ode to femininity and Ukraine — Sleeper will reintroduce itself with a bolder imaginative and prescient of its unique concentrate on girls, consolation and confidence. The model will function on a shorter calendar, with a streamlined product assortment and an even bigger storytelling-led promoting push. As effectively, Sleeper is eyeing wholesale growth within the US and UK (its largest markets) and progress in newer markets together with Europe and the Center East.

“When such a giant, tragic occasion occurs to you, it shocks you. You might have this era of being unable to suppose, to maneuver, to actually perceive what’s occurring to you,” stated Varetsa. “However yow will discover magnificence even within the horror.”

Working a Enterprise on the Outbreak of Warfare

The model, which launched in 2014, grew steadily throughout the late 2010s, turning into a favorite amongst tastemakers together with influencer Leandra Medine, mannequin Emily Ratajkowski and Glossier founder Emily Weiss. Its elevated loungewear was a success throughout pandemic lockdowns, and the enterprise doubled gross sales to $8.4 million in 2020, stated Varetsa.

Previous to the struggle, the model did all of its manufacturing in-house in Kyiv, so when phrase of an imminent assault started spreading in late 2021, Varetsa and Zubarieva started making provisional plans to maneuver manufacturing elsewhere. Following a two-week pause at first of the struggle in February, the model was again up and operating out of a manufacturing facility in Turkey, having relocated eight members of its product workforce to the nation so as to guarantee high quality management and assist practice new manufacturing facility staff. It offered assist to different workers seeking to relocate as effectively.

“We actually constructed the enterprise from scratch; we knew we needed to maintain the workforce, that’s what makes the enterprise distinctive,” stated Varetsa. “So we invested in it as a substitute of rising the enterprise.”

Working with an exterior manufacturing facility for the primary time was a problem. With out direct management, Sleeper handled limits on minimums, time and workflow — which contributed to slowing gross sales in an already-challenging 12 months for any Ukrainian model. Sleeper produced 5 smaller collections as a substitute of its common six in 2022. Banner years in 2020 and 2021 gave Sleeper some monetary cushion going into 2022, stated Varetsa.

“We took it as a 12 months to regroup, refocus and go up once more,” stated Varetsa. “We actually centered on the product that you can see was Sleeper.”

In April 2023, Sleeper reopened its Kyiv atelier, the place it now does round 30 p.c of its manufacturing, principally intricate particulars like embroidery and customisations. (It additionally makes garments for ladies in hospitals throughout the nation.)

The expertise made Varetsa and Zubarieva realise the significance of getting a diversified provide chain, and that as their enterprise received extra advanced, it will profit from new experience. Exterior Turkey, it now works with a manufacturing facility in Portugal. In September, Sleeper employed a brand new CEO, Natalia Shmalko, previously CFO of Ukrainian agriculture firm Astarta, to handle its now-global provide chain; and a UK-based head of wholesale.

“Provide chain must be diversified by all people, all over the place at this time. Issues are so unstable,” stated Gary Wassner, CEO of Hilldun Company, a factoring and financing firm. “You must have options, you’ll be able to’t be depending on one supply.”

The model can also be seeking to develop wholesale; it’s at the moment stocked at Internet-A-Porter, Bloomingdales and Farfetch and can checklist some objects on J.Crew’s web site in October.

Grabbing What Works

For Zubarieva and Varetsa, Sleeper’s rebrand is extra of a “rebirth” as a result of it represents a deeply private mindset shift.

“We left behind issues that don’t work for us now: in our processes, in our concepts, within the core of our model. We grabbed every thing that’s really alive,” stated Zubarieva.

When it comes to product, which means higher leveraging what works. Sleeper tightened its output from six collections to 4 collections a 12 months, plus a bridal assortment, set for launch in April 2024. It is going to roll out new iterations of its best-sellers, together with the feather-trimmed pyjamas, which account for round half of its gross sales; the Rumba go well with set, a pyjama-inspired jumpsuit and the Atlanta costume, a smocked midi costume with off-the-shoulder sleeves.

“We now have a superb, structured, comprehensible product. I consider in [the pyjama] a lot,” stated Zubarieva. “We don’t need to be one of the best on the town in every thing.”

Nonetheless, it can additionally introduce new objects, like outerwear at larger worth factors (operating from $500 to $600, in comparison with its common vary of $300 to $400) to fill in seasonal gaps, drive new purchases from present Sleeper consumers and elevate the model. The model may also introduce a group of high-margin branded fundamentals that includes its new brand beginning at $190.

With its new visuals, the model hopes to make use of promoting to create a stronger id so customers get to know the model past its viral product. In January 2024, Sleeper will unveil a marketing campaign centered on womanhood and the ladies — from medical doctors to Nobel Prize winners, moms and comedians — who impressed Varetsa and Zubarieva to maintain Sleeper going by way of its darkest moments.

“We had a plain brand, a minimalistic website … However we have now superb tales. This entire transformation is about being extra proud. We need to put ourselves in a spot to talk up,” stated Varetsa.