Douglas Hannant is adding another layer to his $8 million wholesale business with this spring’s introduction of Douglas Hannant Insignia.
Consisting mostly of dressy suits, cocktail separates and dresses, the collection is designed to be worn for daytime occasions or evening. This is a new direction for the designer, who until now had never developed a secondary collection.
Hannant said he consulted with Gloria Gelfand, president of Gelfand Marketing Solutions, about price points and demographics. She also advised him about the need for a dressy jacket with a great fit, he said.
Before getting started, Hannant also met with Bill Smith managing partner at Global Reach Capital, who offered to line up a Hong Kong factory. After sending samples of Hannant’s high-end collection to factory workers to use for fit specs, Hannant said he was “amazed” by the quality of the samples that were sent back. So much so that he gave the go-ahead to Global Reach to broker a manufacturing deal with Milagros International Ltd., an international sourcing and manufacturing corporation.
Douglas Hannant Insignia is aimed at women between the ages of 30 and 45 who are “definitely fashion customers,” said Frederick Anderson, president of Douglas Hannant Collection. The designer’s existing customers tend to be “very social and very affluent,” he said. “Douglas Hannant Insignia is geared for someone who is looking for stylish clothes that are a little more classic. But they’re not willing to sacrifice quality.”
The new collection should generate between $3 million and $5 million in wholesale volume the first season and $10 million in wholesale volume for the first year, he added. About 100 doors are expected to carry the collection. For the second year, projected wholesale volume is $15 million to $20 million with distribution in 150 to 200 doors.
An Insignia jacket and skirt retails for $1,200, compared with $2,800 for a similar combination from the designer’s high-end collection. But Hannant said he does not expect customers to overlap. Referring to the Insignia customer, he said: “I want this customer to be able to get chic, tasteful looks at a price. It should open up a whole new avenue with an elite group of shoppers.”
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In addition, he expects to have more leeway in designing his high-end collection, in that he plans to make it more exclusive. To assure buyers see the differences between the two collections, Douglas Hannant Insignia is housed in a separate showroom at 252 West 38th Street in New York on the same floor as the Douglas Hannant Collection.
Hannant said he is excited about the addition of Marie Bottone, who has signed on as director of sales for the new collection and will handle its management. As Louis Féraud’s former president, she helped build that business into a $22 million operation at retail.