If there’s one certainty in the denim business, it’s change.
The category is defined by booms and busts. Trends — in silhouettes, stretch and fit — come and go. Brands too closely tied to a particular aesthetic can quickly become obsolete; the once-hot, skinny-centric J Brand, for example, liquidated in 2021, though parent Fast Retailing still sells its wares. It’s also a hard business to grow. Making jeans is technical, more like a bra than a T-shirt. And between stalwarts like Levi’s and a steady stream of upstarts, the space is competitive.
“I can only guarantee whatever we’re wearing right now, we won’t be wearing forever,” said Jane Herman, the writer of the newsletter Jane on Jeans and founder of The Only Jane, a range of jumpsuits and jeans.
The generation of denim start-ups that sprang up in the 2010s, however, have proved themselves to be adept at navigating denim’s ups and downs. The decade saw the launch and rise of celebrity-favourite Frame, the brainchild of Skims co-founder Jens Grede and Erik Torstensson, upcycled Levi’s label Re/Done, Mother (7 for All Mankind founder Tim Kaeding’s second act), e-tailer Revolve’s Grlfrnd, arty Blk Dnm, Citizens of Humanity’s youth-centric Agolde line and direct-to-consumer AYR. Their arrival shook up the market, bringing a more fashion-centric take on the category and new approaches to selling that relied less on traditional wholesale channels.
Being in tune with fashion has helped many of these brands navigate a complex environment: while denim is struggling overall, premium brands are outperforming, according to research firm Circana. Now, as these businesses emerge out of the start-up stage, they’re looking to chart their next stage of growth by moving beyond their identities as pure denim brands: digging into new categories, expanding their store count and strategising wholesale.
“There are so many different trends, it’s chaotic and confusing,” said Kristen Classi-Zummo, director and apparel analyst at Circana. “Brands have to figure out the next step to distribution, scaling and growing the assortment. No one is in a silo anymore.”
The New Look
In a post-pandemic world where athleisure is often the go-to, putting on jeans is considered dressing up. That’s shifted what type of jeans shoppers are buying.
“Denim has become a bigger part of what people are wearing, it used to be just about having black denim, now it’s a statement piece, you use it as part of your outfit,” said Toni Collin, chief executive of Sweden-based Blk Dnm, which former Diesel executive Johan Lindeberg launched in 2011.
More interesting, eye-catching pieces are driving growth for many brands today. Five-year-old New York-based brand Still Here’s ‘Cool Jean,’ which has no traditional waistband and features a toggle tie, has been its breakout hit, while fellow New York label DL1961′s Lucila jeans, which feature an ultra wide-leg flare, provided it with a viral moment after Anne Hathaway was spotted in them last year.
That trend is lifting entire brands’ assortments, too: Citizens of Humanity’s Agolde, which opened in 2014 in order to target a younger, more fashion-conscious shopper, currently makes up the majority of the group’s revenue.
This desire to create standout items has meant that there are more options on the market than ever, even as certain silhouettes — baggy and wide leg — have dominated the recent denim conversation.
“I see it on the runway and I see it at the airport, there’s a lot of variety. There’s no single, pervasive trend,” said Herman, unlike 10 years ago, when skinny jeans were by far the dominant look.
While that creates opportunity, it can also make running a denim business more complex, because brands need to carry a variety of styles from season to season, said Collin. “Ten years ago, you had one or two shapes; now, you need to be present in all shapes,” he said, which can also put “financial pressure on development and stock.”
The Next Stage of Growth
Standout pieces have helped businesses develop stronger brand identities, and in turn, grow — but so has having DTC a part of their selling equation from the get-go.
“Wholesale is no longer the only way to go to market,” said Maggie Winter, founder of direct-to-consumer line AYR, which started as a subsidiary of Bonobos before becoming independent in 2015. “It actually just added a lot of complexity and slowness.” Being DTC allowed AYR to stay close to customer demand, take in feedback, turn around products quicker and introduce more sizes.
Plus, after recent turbulence in the sector, wholesale feels even riskier. So instead of just increasing their number of wholesale doors as they grow, these brands are doubling down on connecting with consumers directly, opening stores and driving shoppers to their sites. Most of Still Here’s sales come from its two Manhattan storefronts and its site; it works with just a few wholesale partners, including Bergdorf Goodman and Shopbop.
Less reliance on wholesale has also given Still Here freedom to make bets on the unexpected products that end up becoming signatures, said Sonia Mosseri, co-founder and creative director, which she thinks has created an advantage for the small brand in a competitive landscape. For example, buyers weren’t interested in the now-bestselling Cool Jean when Mosseri first proposed it; but she made it anyway and “it changed the business completely,” said Mosseri.
Still, wholesale will always be necessary to some degree. “You’re never going to have enough stores on your own to build a huge, international, successful denim business,” said Maurice Mosseri, Still Here co-founder. The key is to balance exposure and restraint, said Amy Williams, CEO of Citizens of Humanity Group. Agolde, for example, is in some department stores and specialty retailers like Aritzia.
“The vast majority of brands are over-distributed … we look at Toteme or Khaite and designer brands because there’s a quality and focus to what they do. Those are the people we want to sit with, not people who are churning things out,” said Williams. The brand is looking to open its first store soon, she added.
As they look to grow their footprint, these brands want to be known for more than their jeans. Part of that comes from category extensions: Agolde sells jackets, tops and bodysuits; Still Here launched the first product of its new “Colors” line of basics, a T-shirt in eight colours, over the summer, while DL1961 is also pushing further into ready-to-wear, launching leather pieces last fall.
But it’s also about positioning: Frame calls itself a ready-to-wear brand and has rolled out celebrity-driven marketing efforts, like a campaign with TikTokker Alix Earle this fall and ads starring supermodel Gisele Bündchen last year. Blk Dnm hired a new creative director and announced a repositioning as “entry-level luxury” last year, part of a bid to try to rebuild cachet and reach profitability under a new investor, said Collin.
“Apparel is more about lifestyle than set wardrobes for separate parts of your life,” said Classi-Zummo. “If they have a loyal consumer that loves how their denim fits, they want to dress them head-to-toe.”
