The concept behind new activewear brand Nau is clothing that goes from SoHo to the slopes.
But such a design ethos is not the only unusual thing about the retailer, whose executive staff includes seven veterans of Patagonia and Nike. Nau executives hope the company will eventually become a several-hundred-million-dollar business, but plan to do it in an environmentally friendly way. Immediate plans call for opening five stores next year and sales of $5 million to $10 million.
The Portland, Ore.-based company’s unusual retail plans call for ecologically correct stores that carry minimal inventory in a small footprint of about 2,000 square feet. Each store will have six screens at which customers can swipe a hangtag for technical information about a product, order clothes, or choose which of a dozen nonprofits they want 5 percent of their purchase to go to.
A “Giving Wall” in the back of every store will feature two interactive touch screens where customers can research and select nonprofit organizations. Shoppers who opt to have their purchases delivered get 10 percent off and free shipping. Store interiors will be made of recycled materials such as glass tile and Douglas fir logs.
The Portland, Ore.-based company plans to open a Web store in January, followed by the first of four offline stores a month or two later. Nau launched a blog about political and social issues last week, and will put up a marketing Web site this fall.
The store locations are not yet fixed — the company is negotiating leases now — but likely cities are Portland, Seattle, Chicago and Pasadena, Calif.
The collection includes jackets, dresses and T-shirts. Each piece will have several functions and be made out of sustainable materials such as recycled polyester, organic cotton, wool and cashmere. A neutral palette of soft blues, greens, blacks, grays, and rusts make the clothes wearable in a variety of settings, said vice president of product design Mark Galbraith.
The target customer is a creative person such as an artist or entrepreneur who values high-quality design, said Ian Yolles, vice president of marketing. Everything is hand or machine washable and does not need dry cleaning. Seams are shaped, elbows have darts, and technical details such as ventilation and adjustable closings flow into the seam design and don’t add bulk. Jackets have inside pockets with iPod ports and a loop to hold a wire. Nau will take back worn-out clothes for recycling. Prices range from $50 for a cotton T-shirt to $350 for a jacket.
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Recent innovations such as a wider choice of organic cottons and finer-dernier recycled polyester have made it possible for the brand to maintain aesthetics, performance and sustainability, said Galbraith.
The clothes will not have external logos, but the brand will be recognizable from its look.
“We have a strongly developed point of view,” said Galbraith. “You know it when you see it. This customer group is less inclined to buy a brand and more inclined to be part of a larger cultural movement.”
Nau calls its stores “Webfronts,” which refers to the way customers shop now by pre-shopping on the Internet, going to a store to try things on and going back home to try to find the item at the lowest possible price online. Nau believes that maintaining much of its inventory in a central warehouse will lower its costs and allow it to create a gallery-like environment in its stores.
Giving will build customer loyalty and promote word-of-mouth storytelling about the brand, said Yolles. If the company’s choice of nonprofits provokes controversy, that’s OK with Nau.
“We won’t go out of our way to stir up controversy, but as a brand we have a point of view,” Yolles said. “We’re not trying to be all things to all people. We think it will resonate deeply with a certain customer.” The selected nonprofits will be a mix of environmental, social, local, national and international organizations.
Nau clothing will be available at a 40 percent discount to employees of nonprofit organizations and the company’s own “influencers” group. The Nau Influencer Channel will be made up of athletes, artists and activists who will give the company feedback on product performance, contribute to the Web site and represent Nau at events.
Blast Radius is creating the Web site. In addition to displaying detailed technical information about each product, the site will use special-effects technology from Scene7 so shoppers can magnify and zoom in on product details and fabrics.
The company has no plans to wholesale. Nau has 36 employees and has received three rounds of funding, mostly from individuals, totaling $14 million.