Off-White’s Growth Strategy - How it Rose to the Top
Virgil Abloh, Founder of Off-White
The buzzy streetwear meets luxury brand Off-White has grown at rapid speed, finding itself within LVMH’s portfolio within less than a decade on the market. How did this brand seemingly come out of nowhere to take the reins at the top of one of the fastest growing segments of luxury clothing?
Off-White’s founder Virgil Abloh is no overnight success. He became a creative consultant to Kanye West when he was just 22 years old. Then in 2009 Abloh and West interned at Fendi. “We were a generation that was interested in fashion and weren’t supposed to be there. We saw this as our chance to participate and make current culture. In a lot of ways, it felt like we were bringing more excitement than the industry was,” said Abloh speaking about attending Paris Fashion Week in 2009. From there Abloh went on to found one of the most popular streetwear brands, Off-White. If you are curious about how he did it consider how Off-White has grown over time.
1. Before Off-White there was Pyrex Vision the brand Abloh launched in 2012. If you were a fan you would know that the brand consisted of Champion t-shirts and Ralph Lauren flannels with images Abloh screen printed on top of the merchandise. The Champion and Ralph Lauren merch could cost as little as $40 but after Abloh placed his signature touch on them he charged over $500 a piece for each item.
Pyrex Vision was popular, creating a cult following, but after only one year Abloh closed the brand down and opened up Off-White. "Pyrex allowed me to get a foot in the door," said Abloh. "It became an essential starting point. But it was more like an art project. It was a moment in time, just a vision that I had. And because there was interest in it, and because I saw that it was catching steam, I quickly wanted to rebrand and expand my vision on clothing. Take a more serious approach."
2. Part of Off-White’s success can be attributed to elevating streetwear to luxury status. “In a large part streetwear is seen as cheap. What my goal has been is to add an intellectual layer to it and make it credible,” said Abloh. “The consumer is already dictating what they prefer.” “Vintage Levi's are just as important as an Hermès bag and today they'll come together in the same outfit.”
As the Washington Post writes: “Abloh has made it clear that there is no longer a strict dividing line between high and low style, that the atelier can’t dictate trends and rules to consumers, and that consumers are not going to quietly accept a vision of style and beauty that feels limited or bound up in 20th-century demographics.” “In this century, the notion of aspirational fashion has changed and it is no longer defined as an haute couture dress or a bespoke suit. More often than not, shoppers long for limited-edition products, customization or under-the-radar merchandise.”
3. In 2014, just one year, after Off-White was founded Abloh was nominated for the prestigious LVMH prize for young fashion designers. He didn’t win the competition but was a finalist which gave Abloh broad exposure at the highest levels in the luxury fashion sector. By 2017 Off-White won the best Urban Luxe brand at London’s Fashion Awards over other hot streetwear brands like Supreme.
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4. Like many brands Off-White has also grown through collaborations. One of its most successful collaborations was with Nike. In 2017 Off-White redesigned 10 top selling Nike sneakers. The shoes quickly sold out and can now be found on secondary markets like StockX for thousands of dollars. Off-White has also collaborated with Kith, Vans, Levi’s, Ssense, Converse, Jimmy Choo, Ikea, Warby Parker, Rimowa, Champion and Timberland.
5. Earlier this year LVMH announced it is taking a 60% stake in Off-White LLC which owns the trademark for the Off-White brand. “LVMH brings to the table the additional firepower and scale to accelerate our momentum and evolve Off-White into a truly multi-line luxury brand,” said Abloh speaking about the deal. Abloh also became Artistic Director of Louis Vuitton menswear collections in 2018 setting him up for this new relationship with the storied luxury retailer. LVMH’s involvement will help to grow Off-White’s leather goods and housewares business and will help Off-White to expand into beauty. Another reason for LVMH’s interest in Off-White is Off-White’s customer base skews younger than the traditional luxury goods consumer giving LVHM more access to a younger yet influential demographic.
6. Off-White is LVMH’s first purchase of a streetwear brand and highlights the growing importance of streetwear to the luxury sector. Off-White is also one of few LVMH brands without European heritage. “What Virgil Abloh has infused in both [Off-White and Louis Vuitton] has a major halo effect. It’s about capturing the zeitgeist. [Abloh] is a modern-day Karl Lagerfeld, with a similar Midas touch,” said Erwan Rambourg, author of Future Lux.