How Fashion Nova Got Started
Fashion Nova’s team of designers scour social media for new trends, then send them to a battalion of local factories that produce sample products in less than 24 hours. The company releases more than 500 new styles each week.
When influencers wear Fashion Nova clothes, they tag their posts with #NovaBabe or similar hashtags. This helps them get a discount on future orders.
Saghian is one of the first fashion entrepreneurs to recognize the power of social media. He started his company in 2006, opening a series of lower-priced clubwear stores in Los Angeles malls. In 2013, he noticed that styles similar to his own were selling online for double the price. Saghian initially resisted launching a website, but eventually changed his mind.
His emphasis on influencer marketing has allowed him to surpass other ecommerce giants and become the most popular fashion brand on Instagram. He offers influencers large sums to wear his clothes and post selfies to their followers. His business model also works well with celebrities, who are often paid to promote his products.
The Iranian-American billionaire has a long history in retail. He worked in his father’s women’s clothing store during his summer breaks, and the experience taught him about offering value to customers. He now owns a number of real estate properties, including the most expensive mansion in LA.
Brick-and-mortar stores give customers innovative branded experiences that are hard to replicate online. In addition, customers can purchase a product right away and avoid the hassle of shipping delays that often cause cart abandonment. Moreover, shoppers can take advantage of customer service in-store and return items easily.
Unlike Boohoo and Forever 21, Fashion Nova does not offer cash refunds, but instead offers store credit. This is because it believes that its girls are more likely to keep the merchandise if they have a chance to use it again in the future.
Saghian also understands how millennials interact with brands and uses Instagram to promote his products. He posts at 30-minute intervals throughout the day and talks directly to his audience of women aged 16 to 35 using language they can relate to. This approach has enabled him to grow his brand rapidly and he now plans to expand internationally. He has also rolled out two new highly successful lines: Fashion Nova Curve and menswear.
Fashion Nova CEO Richard Saghian’s savvy use of influencer marketing has helped the company to grow into a global retailer. He started his business in 2006 by opening a small chain of retail stores selling low-cost club wear, but he didn’t launch an online store until 2013 when he saw competitors using Instagram to boost their profit margins. Saghian’s online store launched with a bang, selling out of its first batch of items within a weekend.
He quickly realized that his customers were influencers, so he began giving them free clothing and encouraging them to post pictures of themselves wearing the brand’s styles. This helped him to reach a larger audience and increase sales. Today, the company uses a network of more than 3,000 influencers to promote its products and drive conversion. They even collaborate with celebrities like Cardi B and Kylie Jenner to get more exposure for the brand. In fact, according to Women’s Wear Daily, a single post by a celebrity can return millions of dollars in revenue for the company.
Fashion Nova is a company that thrives on social media. It identifies trends in popular Instagram styles and produces its own versions at a fraction of the cost. This approach has made the company a huge success in the notoriously hard-to-crack fashion industry. Its strategy depends on a combination of an aggressive approach, a high risk tolerance, and a loyal Instagram following.
Saghian learned about customer feedback from his father, who owned women’s retail stores. He noticed that his customers often posted pictures of themselves wearing his clothes on Instagram. He began offering them free merchandise, and they in turn reposted their photos with the hashtag #NovaBabes. This UGC led to symbiotic brand growth.
Fashion Nova’s influencers include celebrities like Cardi B, who began working with the company before she became a superstar. These influencers have a large following and are able to drive traffic to the website. This approach can be replicated by entrepreneurs who seek to connect with a similar audience.