#614: From Soles to Sales: The Business of Shoes with Chinese Laundry

Foreign.

Business can be a lonely game. But it doesn't have to be. Welcome to Boutique Chat where we explore community over competition and how to scale your company with the balance and the happiness that we all seek. We'll hear from product based businesses of all types, retailers, e commerce and wholesale brands, along with industry experts shaping the future of our industry. I'm your host Ashley Alderson from the Boutique Hub and and I can't wait to chat. Hey guys, welcome back to the podcast. This week I have a very important question, Sarah, just for you, but I think everyone who's listening is going to need to answer this question as well. What is the very first pair of shoes? What were the very first pair of shoes that you fell in love with?

Oh, that's such a good question. Growing up, I did a lot of ballet. So I, I and I loved to actually wear my ballet shoes out of the studio. Which you're not allowed to do. Yeah. And I found this little eyelet lace ballet flat. It was actually at Target. It was so cute. And I remember growing up, I didn't buy a lot of things new. A lot of things were thrift stores or at a yard sale and my family didn't have a ton of money. So like this particular pair of shoes, first of all, Target was like the fanciest.

I know.

I totally, I totally agree. It was so fancy. And so that to get this little pair of eyelid lace ballet flats was so special. And it was such a lovely bridge from ballet studio to being out on the town. I think it's probably like 11 or 12. And I remember going back and trying to find them again and I couldn't. But it was kind of where I started to fall in love with footwear.

Yeah. Isn't it funny? I feel like shoes are a part of, like our core memories. You know, we were just. Honestly, I feel like we talk about shoes way too often. In a weird way. My husband and I the other day were reflecting on like different pairs of shoes we both owned at different points in our life. Like the Adidas superstar. Why? Or you know those Adidas slides that had like all the little bumps in them, like after basketball, that's what we put on. But like, shoes are so related to different, like, times in our life. And so I was so excited to have this conversation with you today because retailers today, I mean, there's a lot of retailers that are listening, that are in the hub, that already carry shoes. But I just want to enhance that conversation. How do you continue to tell the story through footwear, through your business. So bring me back before we get into all the nitty gritty of those things. How did you then start working in footwear? What led you to where you are now?

My, I've had a very kind of funny career trajectory. I was a serial entrepreneur and I've had a couple of tech companies. The very first one that I started in was a fashion app. And, and fashion has always been near and dear to my heart because I think it's such a lovely way to be able to express yourself.

Yes.

And growing up, I made like a ton of my own clothes and it was just like a really, it was, you know, it's always been a part of me. And so I had this fashion app where I got to go through essentially the Internet and categorize every single item. This was back in 20, I guess it would be in 2014. So it was a different time. People didn't shop on the Internet for clothing the way that we do now. And so we went through and we meta tagged every, every piece of clothing on the Internet to build out an algorithm that suggested items based on taste profile. And so that's the, that's essentially the algorithm that we, you know, that's used on every website now today. And so, yeah, that was my first entry, official entry point into fashion.

I had no idea. That's incredible. Sarah, what was that called?

It was called Strut. It was like Tinder for fashion. So it was swipe right or left based on taste profile and you could make outfits with both existing items in your closet. So you could like take a picture and upload it and then we would match. You could like buy something new. And so, yeah, it was a really, it was, it was so fun. I was the first, the first, the first hire with the two founders. Yeah, that was my first official entry point into fashion. From there I went on to found a parking app working to unlock underutilized parking inventory. Think like Airbnb for parking. And after I exited Pavement in the beginning of 2020, which was so right times because we had an event based strategy and obviously 2020 was a tumultuous year for events. Yes. I was kind of deciding what my next move was going to be, which I thought was going to be move to Bali. Um, okay.

All right, why not?

And then I was, I was approached by the, the, the folks over at Sales Brands to come on and essentially kind of dig into all four of our labels, which comes with so much rich history. And I thought it would be really fun to, to Kind of come in and revitalize the brands and give them a fresh new perspective. And marketing is how I started my career prior to working in fashion. And so I kind of landed in footwear in kind of a roundabout way. But it's been so. It's been so fun. And I've always. I always have loved shoes specifically. Right. I think footwear specifically can really change your whole outfit. A new pair of shoes can change your outlook. And I think that, you know, apparel kind of obviously affects your confidence as well.

Yeah.

But there's something that's like, extra special about, like, that killer pair of shoes. Yes. That just, like. Right. Makes you walk differently. Like, it changes your posture. I think it's just, like, such a fun way to add to an outfit.

I love it. It's a conversation piece. It's a core memory, like we said. And let's be honest, the right pair of shoes can make your butt look really good. In a pair of jeans.

Sure can. Or to quote Cinderella, a great pair of shoes can change your life.

That's right. That's right. Oh, my gosh. Okay, so for those who are not familiar just with the Chinese Laundry family of brands, tell me a little bit of the brand story.

Yeah. So we have four labels. We have Chinese Laundry, which has been around for 43 years.

Yeah.

You know, like I said, such rich, rich history. You know, it's kind of that perfect shoe for prom, for the special occasions that you're having. It's, you know, a. More. More elevated from your, you know, the shoes you might. Right. Buy at a Target. My. My. My eyelid lace, ballet flat. And we're really. It's really focused on trend reactionary to what we're seeing in the market, addressing it from a quality perspective as well. And I think it's something that we really do well. It's been our bread and butter throughout the. Throughout the brand story. Yeah, it's like we're. We're a dress shoe company. Right. Like, we, like, want you to feel beautiful and. And feminine in. In that brand. And then we also have Dirty laundry, which I'd say is. It's kind of like you. Your graduating shoe from a hot topic. Right. It's a little bit funkier. It was launched as a juniors line, but really, I feel like it spans. Spans the demographic now. And you've got, like, your more classic, like, leg boots. We have an awesome crochet package. Yeah. It's kind of where we, like, play, and it's a little funkier than a. Than a Chinese Laundry, which really does lean on a dress. Right. You know, you're not going to find like a glitz package in our. In the dirty laundry label. But it's so, it's so fun and like a little bit more raw. Yeah. Kind of like funky. A deeper dive. A double click on self expression. And. And then we have CL by laundry, which is one of my favorites because it's just so comfortable. I like to say that CL by Laundry, your shoes for life, because you really can wear them all day if you're, you know, when you drop the kids off at school and then you're running around and you're going to work. We were, we're really making an effort to put additional comfort features in them and rol out some new arch support technology in that line. And you're going to find your, like, core basics and silhouettes in that line. And then you're going to find that you'll be able to then get that shoe that is so comfortable that you love and in. In more of the trend colors and fabrics that are coming out by season. So I know for me, when I find something that works, I like to get it in every color. Yeah.

Honestly, a lot of people do. That's so true. So talk to me about the first time. Let's talk about the first time. Shoe selling retailer. Is that how I would say that? If I'm new to selling shoes and I'm wondering, gosh, I just don't know if this is right for me. Maybe I don't have enough space. Maybe I'm worried about the case pack size. What are some early tips and ideas and strategies of why people should be selling shoes in the first place and how to overcome some of those maybe misconceptions or obstacles that you see?

Yeah, I mean, I think space is generally in a, you know, in a boutique is the thing that people are most concerned about and buying a case pack and, and not wanting to be left with, you know, the kind of smaller sizes or the larger sizes or how do you kind of manage that? And so I always, I like to recommend that. Right. I love to test things. Right. I'm a marketer. So, like, I want the data and I want to know if it's going to work. And I like a light test. So I think that something that I found that's helpful is like even just asking your customers and if you have, if your store, if your boutique is online, going ahead and using your email list and send out a survey to be like, like, would you be open to you know, footwear, like, what kind of footwear do you like? And kind of extrapolate and hear exactly from your customers what it is they're looking for, and then you can kind of find the footwear that's right for them. You can also go, like, go even further and survey your. Your customer base to find out their shoe size to kind of mitigate some of that risk so that you're. By that you're able to buy and plan exactly for your customer base. Right. And every, every boutique is different. That's what makes a boutique so special is, you know, everyone's addressing it from a different point of view. So being able to understand this, I think is like a great first step. And then just like, you don't go lightly into it. You don't have to go. You don't have to expand and have, you know, 20 different styles. You can just have a couple that follow the trends and that match with the apparel that's on the floor or in your online store.

Yeah, I would. I love that you were talking about the email list, because one of my dear friends, Jane Casper, she's an expert email marketer, she's a huge shoe retailer, and she always talks about those of you that are listening. And you're using Klaviyo. The opportunity to segment your list based on size and sales history is, Is massive. So if I'm really going to push this pair of shoes, but I'm like, oh, man, I only have sixes left. That sucks. Right? But you probably, through Klaviyo, have been able to segment people based on size. And so if I really want to push the sixes, I have a list of people who are sixes to send out. So there is so much opportunity to do segmenting across time. What about, really specifically, if people are wondering, you know, what about opening orders and spreading that over time, I don't have to place my opening order and have everything deliver in this one season. Right. With shoes, I have a little more flexibility to spread it over time.

You do. You can. So you can place your order and you can. Essentially, at least the way we work is we're having footwear that's being delivered, right. That's landing for us at different times throughout the year. And so say you have an appointment with us and you're meeting with somebody from our team. We're going to show you what's available to ship right now. We're going to show you what's coming in in the fall, and we're going to start to show you what's coming in in the spring. So when you're creating that opening order, you have the ability to, to kind of plan ahead because we're also talking about different trends. You, you can kind of even let the shoes start to be the starting point to direct the rest of your buying. And you can absolutely space it out. You essentially just say, oh yeah, I want, I want this to hit here because I've got, you know, this other crochet thing coming in and, and you can kind of map it out. But we're happy to work with you guys on that.

Have you ever wondered if someone else in business is going through the exact same thing you are right now? Whether it's an obstacle to overcome or a new opportunity you aren't sure if you should pursue or not. Or maybe just some of those same questions about man, am I really getting the most out of my inventory or my Facebook ads or my team? How can I do business just a little bit better and enjoy life just a little bit more? Well, those are a lot of the questions that we answer on a day to day basis inside of our community at the Boutique Hub. If you're listening and you aren't yet a member of our community, I want to invite you to join us. We have 14 different niche Facebook groups to connect you with store owners at the same level. And just like you, no matter what, you sell home and gift apparel, children's specialty, we've got groups for all of that. Plus we want to get you up to date with the latest training, the latest information and strategy on what's working right now in our industry. With our weekly education plus our max out training library, we also have hundreds and hundreds of vetted, amazing wholesale brands who have been proven to do business in boutiques. We don't like trademark infringement. We don't like brands with poor customer service. We handpick the best of the best and the best of the best. Love working with Boutique Hub members as well. So they offer numerous discounts and free shipping, whether it's at market, inside of our groups or on our own wholesale platform hubventory.com with thousands of dollars in savings just for Boutique Hub members. So if you aren't yet a member, we'd love to invite you to join us at theboutiquehub.com backslash join to be a part of our community on a daily basis. I can't wait to see you inside and I can't wait to see you connect with amazing business owners who are serious about their business. Just like you it's super helpful and I think that's common across shoes. Just so everyone knows like, ah, you're not just stuck with this massive investment all at once. But it can be a year long opportunity for you that you can dabble in and then start to go deeper as you want. The other misconception I hear a lot, Sarah, is that shoes are just for brick and mortar retailers. But I would bet that you have a lot of customers that are online that are doing live sales, that are doing traditional E commerce. Tell me more about that.

We have a really large online business both for the boutiques that we deliver to and service and also even our own website and then some of the major retailers like an Nordstrom and Zappos, we have a healthy business online. And I think where I see a lot of success on the boutique side is when people are really highlighting what's coming in with the live sales or going live on Instagram and previewing. And I think that's also a really great way to test if you're, you know, if you say you come and see us at Magic, right, or at Dallas Market Week, you could come in and you can even start to show and get feedback and kind of start to live sell while you're discovering the product and get, and get that feedback. So I think that live selling like do it. Those audiences I think want to hear from, want to hear from the boutique owners and it's also just such a great way to engage and again and collect that data because you can easily ask the K, like what size shoe. I think that like four shoes, like understanding like that that part of your customer is just going to help you plan more. So any way that you can get that information, whether it's through a live sale or whether it's through a survey via email so that you can do that segmentation that you mentioned, I think is really, really powerful and I love it when I'm watching a live sale and people are pairing things together. Yeah, that's the game of like showing like, hey, this is how you put it together. And then you're bringing so much value, you know, to, to that audience of like how you're going to wear that footwear, what does it look like? I think there's something that's really special about seeing shoes on feet rather than even just holding them up. Yes. So that you can see like, is this going to make my butt look good in these jeans?

It's a question we all have for sure. Oh my gosh. Yeah, I love that. And really that's, that's the game of retail is how do I intimately know my customer? How do I know her so well that I know what problem she has that I can solve? How do I amp up her confidence? Right. And when you pair things together, when you merchandise really well, whether it's in store, whether it's online, whether it's in a live sale, that's what boosts your average order value. And really, that's what's solving her problems. People are coming to you for your ability to merchandise and put a full styled outfit together, not just. Just one piece at a time.

Exactly. And when you are trying to get that AOV up, adding. Adding shoes to cart is such a. Such a simple, easy way to do it. Yeah.

How about just. Let's talk about merchandising in store for a second. I want to double down on that because early in my early, early days of working in retail, one thing we always did were shoes, always were by the dressing room. So if somebody came out and they're, you know, they're looking in the mirror outside the dressing room doors, it's a quick, easy way to train your staff as an upsell.

Oh, my gosh.

Hey, just so you get the full picture of how this dress is going to hit or how these jeans are going to fit, whatever, try it on with this shoe. And more often than not, the person's like, oh, I actually really like this shoe. They have a shoe they've gravitated toward. Even though they haven't touched it yet, they've already noticed it as they've walked by and they've entered the dressing room. And now it's a quick and easy upsell. What other merchandising strategies would you say are really helpful to getting a shoe in someone's hand?

Yeah, I mean, I think when somebody's going into the dressing room, like, I love. And what. What size shoe are you? Right. And. And go ahead. And if they, if there wasn't a pair that they saw or that they haven't mentioned absolutely bringing it to them. But I think, like, and I think it's. This is also good if you're trying to deal with the space issue in your boutique is like, put the shoes out on the floor with the, with the outfits.

Right.

Like, when you're dressing your mannequin, go ahead and add the, Add the footwear. And I think, you know, even I've seen what I think some major retailers do really well is when they then also put the shoes, they're not just on the Floor that on like a little pedestal, essentially, so that it's not so far down that you're able to kind of your eye is catching it, and then you're not just forcing people to look down when they might not necessarily be looking down if you can elevate them. It's like such a simple, silly thing to know, but I think that showcasing it in that, in that way for that owned retail experience is really powerful. So any way that you can incorporate the footwear with the outfit so that you're not. So you're making it so your customer doesn't have to think, right, they want to come in, they're shopping, they're having like a moment to themselves. You know, they're coming to the boutique because they're doing something nice for themselves. So don't make them work for it.

Yeah, that's really good advice. I really like that. And I just want to add on to it. I love the pedestal idea. And when you're also then merchandising that piece online, if you're doing a flat lay and you've got, you know, an outfit you're putting together, even if you don't sell shoes yet, put a piece of footwear in there, like, tell the story. And you'll be amazed at how many people say, oh, is that for sale? Oh, where can I get those? And you're going to start to answer the own question of like, ah, if I should sell shoes, when I should sell shoes. You'll know when you're ready that way.

Another, another interesting. Or way that if you have an online store you could test is if you start a wait list.

Yes.

Before you even buy it. Right. Like, okay, I'm just gonna add, you know, depending on how you merchandise online.

Yeah.

If you're, you know, you could add kind of that page and be like, oh, yeah, like, add the picture and wait list it. And. And then you can start to actually, like, really collect data on specific products and say, like, oh, this is gonna hit even if it's in two months. I feel like a lot of. There's a lot of retailers that you're not necessarily able to get the product right then, like, even when you're shopping on Revolve, for example, there's a lot of stuff that's like, oh, yeah, this will be in. In August. And I think that that's a strategy that can be implemented, you know, kind of across the Internet, across E commerce, and it gives you so much opportunity to not have to invest so heavily or just trying to start you know, kind of this new vertical or new product category.

Yes, for sure. All right, let's talk trends. I love talking shoe trends. Shoe trends are a part of all trends. They all go well together. So what do you have planned? What do you see in your crystal ball coming for fall?

Oh, this is such a fun question. Can you talk, like, paper bag boots for a second? So love, like, a slouchy with a lot of texture paper bag boot. We're seeing kind of a lot of it. Our designers actually travel through Europe and around the world to get to have a really deep understanding of kind of what's happening globally in footwear. And so we are seeing kind of these, like, slouchy, textured boots, which I think really, you know, can make a very simple outfit extremely exciting while being able to pair right with your jeans, your skirt, a dress, and whatever it might be and can really make the outfit. So seeing some of that look out also, we're seeing a lot of different, like, heel shapes and toe shapes. Right? Like, we're getting really. Trying to get really creative with it, and it's a trend that I think is really powerful in fall and then also carries into spring. So square toes are coming back. We have some really darling, darling, darling heels that are coming up that have, like. Like, a little heart at the. You know, at the bottom of the heel instead of just that, like, basic stiletto. And that's so helpful, I think, in many ways, because then you're not worried about, like, walking on a deck and it's sliding in. So we're really playing with that where there's, like, different, you know, where the heel kind of tapers into a shape or into a little bit of a wider bottom, which gives you more support. So that's a trend. And ballet flats are continuing. We have them coming out in multiple different skus. People are going crazy for red this year. It's like, people are just loving it, right? It's, like, one of the colors for the season, and we've got a lot of kind of, like, really rich, fun red styles. Also mesh like that, the mesh ballet flat. And we're seeing a lot of. We have it coming out with different stones and kind of some different accents, which is really fun. And our. Actually, our mesh flat was also worn. It was. It was requested by Vogue and worn by all of the backup dancers at the Met Gala. So that was really fun. And. And it's really special, in fact, because I think that it's, like. It's, like, so sexy. It's so sexy. To, like, see, like, you're like, pretty little foot. You can, like, show off your pedicure while, like, like not wearing a sandal. It's like, it feels like, I don't know, like, kind of wearing a little mesh flat, but. And so we also are having them in different heels, so. And really, like, doubling down on that. I mean, there's. Yeah, the loafer. The loafer is continuing. Yeah. It's also so comfortable.

Yeah.

Kind of hits that. That day to night moment, depending on what you wear it with. So lots of fun trends.

I love it. Such a statement. All of them are such a statement. And there's nothing like, you know, we talk about boosting our average order value, but at the end of the day, it's also. When we're talking about fall anything denim, sweaters, shoes, we're also really talking about boosting margin.

Right.

People are used to spending a little bit more in the fall and going into winter, so that's really helpful. All right, Sarah, last question. This has been so good. What do you think when you look across all of your retailers who carry the line, any of the lines, big and small? I'll ask it in two ways. What do you think your most successful retailers have in common?

Oh, that's a great question. I think that the most successful is really when. When retailers will take a risk, Right. And they're buying something and carrying something that they're not seeing in other stores and, you know, and getting on those trends early so that you can be first to market. And so if you see something at market week and you're like, oh, I haven't seen that. And it. And it brings emotion in you. Right. It's going to do that to all of your customers as well. So, like, following kind of that intuition as you're looking at footwear and as you're looking at trends, like, will transcend across your customer base. Right. Your customers are coming to you because they love you and your style and your aesthetic. So, like, when you have that emotional reaction to a. To a product, like, don't wait. Just go ahead and, like, be the first to market with that product. That might feel a little bit. A little different.

Yeah. Oh, the old Ricky Bobby strategy. If you ain't first, you're last. I like it. Well, Sarah, this has been so awesome. We will certainly link up all the information in the show notes. Many of you guys who have been to market before at whether it's Dallas, Atlanta, Vegas, anywhere, we work with you guys a lot, and you guys have a great presence in our showroom a lot of times as well. So this was really great. Helpful to hear all these trends and all the insight today. I appreciate you.

Thank you so much, Ashley. It's such a pleasure. And we're so grateful to Boutique Hub and all the value that you bring us as well. It's so fun to get to connect with you always and the entire customer base. It's just. It's so fun to get to play in this lane with you guys.

Absolutely. All right. Thanks, Sarah. Thanks for listening, guys. I hope you took away all kinds of nuggets and new ideas from this week's episode. Don't forget to subscribe and leave a rating and review. We love to hear your feedback and give you a chance to be featured on the show each and every week. For more information on our spirit of community over competition and to access guest downloads and bonuses and all the resources we about talk talked about on the show, head on over to the boutiquehub.com and join the community. We'll see you next week.