Almost a year a strategic repositioning took it from boutiques to department stores, Paper Denim & Cloth has found a new partner to help push the brand to new heights.
The New York denim label has formed a partnership with Endurance LLC, a manufacturer with partnerships and licensing deals with Joseph Abboud, Rocawear, State Property and Pro-Keds.
“I really felt, in order to realize our goals for growth, whether that be to start opening freestanding stores and start advertising, we needed to bring in a partner to help us,” said Chris Gilbert, president of Paper. “In terms of Paper, nothing changes. It’s the same people, same design team and same quality.”
Tom Nastos, president and chief executive officer of Endurance, said he was attracted by Paper’s strong brand recognition and strength in both the men’s and women’s markets. Endurance’s impact will be largely behind the scenes, providing management systems for production, delivery, distribution and replenishment.
“That’s going to have an immediate impact [on Paper],” Nastos said. “They’ll be able to see data in ways that they’ve never been able to before.”
Nastos hopes to take advantage of the shared expertise he and Gilbert have acquired working in the contemporary market. “Together, I think we have the ability to leverage our relationships both at retail and in the celebrity world,” he said. “If we do that and build on their success, I think we’re looking at a very different growth pattern over the next three years.”
Paper announced last January that it would pull back from the high-end premium denim market, lowering prices and targeting distribution in the department store channel. The move has proved an early success. Gilbert said the brand would generate $23 million to $24 million in wholesale volume by the end of the year.
“And that’s having not shipped for a period of four or five months during the transition,” he noted.
Gilbert acknowledged that achieving growth in this market required different skills from those needed in the specialty channel and a renewed focus on marketing.
“Partnering allows us to grow at a faster rate,” said Gilbert, who is targeting 15 percent to 20 percent growth for the brand each year.