Latinx-owned Wray opened its first brick-and-mortar store in New York as the sprawling fashion startup continues to raise its first round of investment.
The on-trend, ethically sourced apparel brand, which succeeds Universal Standard as the largest women’s fashion brand in North America, is focused on continuing its revenue growth trend into 2023 after scaling with speed from $200,000 a year to $3 million in less than three. years and achieving a repeat customer rate of 59 percent. It sells a full range of products, including denim, knitwear, shoes and dresses, in addition to accessories, swimwear and home goods.
“As a child of Mexican immigrants, I’ve always felt a little different compared to my peers,” said Wray Serna, founder of her eponymous brand and former co-founder and chief design officer of Cloth, a venture capital-backed venture capital. fashion technology company and app. “The feeling of wanting to make something that makes everyone feel special but safe is why I built Wray. Our mission is to make fashion accessible to everyone of all sizes.”
The store at 38 Orchard Street on the Lower East Side saw significant in-store revenue within the first two months of opening, exceeding expectations by 75 percent, the company said. The label, which has partnered with plus-size influencer Kellie Brown, has garnered attention from Saturday Night Live alum Aidy Bryant and actress Hilary Duff.
Serna said she connected with Brown online during the pandemic and the two quickly hit it off.
“I was inspired by her feature in Vogue and when Kellie agreed to collaborate with Wray, I was thrilled,” she said. “Kellie has become a great source of support personally and I admire her work so much. We began our design process effortlessly by looking [virtually] in her wardrobe and discovering vintage pieces she owns.”
Wray is now raising funds from investors as it expands into new categories, including jewelry, and goes deeper into areas like home goods. Previous investors and advisors include ModCloth founder and chief financial officer of Moët Hennessy Louis Vuitton (LVMH), chief revenue officer at Alexis Bittar and more.
According to SeedInvest, a venture capital platform that connects startups with investors online, Wray has raised $323,000 as of Jan. 10, surpassing the minimum target of $250,000, though it is still accepting investments — at a minimum of $1,000 — as Serna confirmed Wray is looking to raise a $2 million round. It is currently valued at $8 million.
Founded in 2015, Wray has prioritized green, responsible and reliable manufacturing that provides garment workers with living wages and benefits. She says she works with responsible factories, uses closed-loop production and sources what she describes as environmentally conscious materials, often in the form of recycled inputs. The brand says it ensures ethical working conditions with its manufacturing partners, such as Friends Factory in India and Kusa in Peru, which are assessed and approved based on Fair Trade Good Practice (FTGP) standards. Wray also uses compostable and reusable packaging.
“At the end of the day, sustainability at Wray means making clothes you’ll want to wear time and time again,” Serna said. “So we build clothes that last and bring a little joy every time you reach for them.”
By the end of the year, the company plans to launch an internal procurement program as part of its circular ambitions.
Also in the pipeline for 2023 is a wholesale comeback (started in 2015 but halted in early 2020 due to the pandemic) resuming its relationship with distribution partner Nuuly, and its first runway show for Fashion Week in New York, as well as expanding the category for extended shoe sizes, accommodating a wide calf and a standard boot calf. Wray said it expects to secure a Netflix partnership in 2024, open stores in Portland, Ore., and Chicago in 2025 and launch bridal by 2026.
Wray said he is aiming to succeed where Old Navy has notoriously faltered in trying to serve a full spectrum of women’s sizes, a setback that contributed to the Gap Inc. brand’s loss of revenue. of 19 percent, roughly $1.8 billion in the first quarter of 2022. Plus, Old Navy doesn’t focus on sustainability and instead prioritizes low cost, selling dresses for around $40, while a similar item from Wray average $200. And while Old Navy is popular among women between the ages of 35 and 44, according to consumer insights company Helixa, Wray self-reports that he caters to General Mr. Wray could be positioned as a challenger to Old Navy to illustrate the potential of market that includes the size . He also points to Reformation as a competitor, as both have similar price points, customer bases and a focus on sustainability, with the main difference being that Reformation only offers a few plus size options.
“Our target demographic is a customer who is fashion forward and is looking for pieces that are sustainably made and will last a long time,” Serna said. “Our sizes range from XXS-6XL with a custom option for 6XL and up. Most of our customers identify as ‘she’ and ‘they’, however, we also have some male customers. Our boots are made up to size 13, so our trans customers finally have something feminine to wear. We also have mother-daughter clients. We are an “everyone” brand.
In the US, many women struggle to find accessible, fashionable and sustainably made clothing that caters to a full range of sizes, with investments beyond size 12 typically considered resource intensive and too risky.
“Many plus customers don’t have the opportunity to go into a store and physically try on clothing, it’s a luxury that usually exists in smaller sizes,” Serna said. “We find that our customers love the brick and mortar store to have the experience of trying clothes on in store and many have described it as a safe space.”
Approximately 67 percent of women in the U.S. wear a size 16 or larger, and plus-size clothing continues to be one of the fastest-growing segments in the entire fashion industry, with Credence Research estimating the market value at nearly $265 billion. dollars until 2027.
And brands are taking advantage of this growing market.
Dsquared dropped an extended size capsule last year while Adidas tapped the Honoré 11 for premium athletic wear exclusively in sizes 1X-4X. And Victoria’s Secret just closed its acquisition of Adore Me, a B Corp that is helping its new owner rebuild its ultra-exclusive image.
