To get the pulse of the industry and to make their entry into the new market smooth, retailers have often used social media to catch the attention of the consumers. Now, social media has revolutionized the way designers and retailers share their work as consumers and public get a glimpse of what the world’s best dressed people are actually wearing. Cashing on this change, Start Today’s new app ‘Wear’
promises personal styling, just like what Instagram does for selfie. Available for iOS and Android users, Wear delivers a steady stream of fresh-from-the-sidewalk looks to 8 million users in 21 countries, in addition to each outfit being easy to shop. After its huge success in Japan, the Japanese behemoth is taking a step further and launching it in the US market, though restricting shop for now.
The app ‘Wear’ is owned by Start Today Engineering, a Japanese company that owns Zozotown, an online fashion brand which sells more than 3,900 brands online. While the Japanese version of the app allows fashion enthusiasts to shop at Zozotown, the US version only provides an outlet for users to discover and discuss various brands and new looks. This can be seen as a research tool for the company to collect data on the US fashion market so that they can take an informed decision before its full-fledged entry into the US market. According to the company statement, “It’s using the American incarnation of Wear not to drive sales, but instead as a serious research tool, one that will offer insights when it does eventually expand its business beyond Japan.” While launching its app, the Japanese e-commerce behemoth also asked its beta users to disclose their height which didn’t go down well with its consumers. In Japan, height is a strong indicator of clothing size, which is not quite the case in the US.
Though the initial hiccup of heights did come in the e-tailer’s way, the company is learning more about its western consumers through their app before they start selling their products. Founded in 1998 by former rock musician Yusaku Maezawa as a mail-order compact disc and record business, Start Today has since then reached and attained many heights. Zozotown, as described by Maezawa as an ‘online fashion mall’, operates on a concession model as it does not invest in inventory but instead takes a commission on sales from its 3,900 brands, most of which are Japanese. Its warehouses are located in low and mid-segment markets, with its prices in line to those of specialty retailers such as J. Crew. “Wear is still in its infancy in the US. If we’re not confident that we can make a compelling product that benefits people, we won’t do it and we won’t release it. We use the term ‘user merit’ in Japan, which sounds weird in English. But it means that it has to be beneficial to the customer,” reveals Masahiro Ito, CEO of Engineering, Start Today, according to the company’s statement.
For the company, creating an online community around the concept of Kikonashi – the Japanese term for how well you wear something – does not necessarily drive a tremendous volume of sales. It was its natural step of expansion in US against the likes of H&M’s and ZARA’s.
While the company has still not divulged its active user base, the app has been downloaded more than 8 million times. The company’s founder believed that the young would like to see looks on people who are of their own size, as opposed to models and also acknowledges the younger generation’s lesser enthusiasm for high quality clothing. This has paved the way for the app, Wear is a showcase for emerging labels and innovative looks – a social network that shares some of the same features (likes, hashtags, feeds) as other photosharing platforms, but whose sole purpose is displaying and promoting personal style.
Apart from the company’s philosophy of expansion, it also believes in adapting to best practices such as providing basic salary, bonus, dependent on profits, etc. The company employs more than 800 people, half of which are women, which is quite uncommon in Japan. In an effort to improve productivity and reduce potential of burnout, the company also implemented a six-hour workday in 2012 that encouraged everyone to complete their daily tasks and depart by 3 pm. Apart from this, the Makuhari District housing allowance allows employees living in Makuhari to receive a special monthly allowance of 50,000 yen (about US $ 435) to help reinvigorate the area’s economy. Currently, 80 per cent of employees take advantage of this scheme.
As of now, the market value of Start Today, which also operates Zozoused (a second hand clothing business) and the Zozo Flea Market, a peer to peer selling platform, is at US $ 7.6 billion. In its 2016 fiscal year, the company generated net sales of about US $ 544 million, with US $ 1.59 billion of transactions taking place on Zozotown. Whether or not Start Today’s idea of entering the US market is buying them more loyal consumers is yet to be seen. For now, the retailer’s goal is to collect data by getting people to use the app through marketing campaigns and influencer outreach.
