No. 14: Reformation is sexy, snarky, and I guess sustainable too 🍒
plus, pretzel perfume, matchbook collections, and for the love of K-Beauty
🧲 OBSESSION OF THE WEEK
Makeup brand Urban Decay is relaunching their Naked Palette, which was the eyeshadow palette of millennial women in their late teens and early 20s (IYKYK). It’s so iconic that many of us have never thrown this one out, per TikTok.
According to WWD, one Naked Palette was sold every six seconds until it was discontinued in 2018, which according to the brand, amounted to over $1 billion in sales. (Why did they ever stop selling it?!)
I love that the brand is bringing back and old favorite, clearly identifying a trend for nostalgia and a longing for the 90s.
I would have liked to see them have fun with the launch campaign, but it feels pretty much like any old product launch. Missed opportunity, IMO.
🍿 BRAND NEWS
Crown Affair launched their Finishing Spray and this interview with Creative Director Dani Allin on
is SO good, a must read.Auntie Anne’s is launching a pretzel-scented fragrance called Knead. Does anyone really knead it?
Pitbull makes history as the first musician to have a college athletics stadium named after him in a $1.2 million deal — Florida International University’s (FIU)’s stadium is now Pitbull Stadium. No comment.
E.l.f. strikes again with a fun campaign featuring influencer Mikayla Nogueira, who takes over as “CEO for the day” to promote her new “Marriage Material” collab, which is already sold out
Reddit may be the new Google. With 51% global daily active user growth in Q2, they are crushing competitors like Meta and X (albeit with a much smaller overall user base). Partnerships with OpenAI and Google definitely help.
This is a great profile of a Greek restaurateur you’ve probably never heard of, Costas Spiliadis, founder of Estiatorio Milos restaurants, which is 100% family owned, does $100 million annually, and has plans to take on Nobu and Carbone. I’d watch the movie version of this.
Heaven Mayhem continues to be on fire and is launching brooches tomorrow. I love that this is an untapped category and think they are onto something given all the vintage/grandmacore we’re seeing out there.
Apparently the founder of Sporty & Rich is getting into sexual wellness with a brand called “Sensual Sport.” Will definitely keep an eye on this…
🎯 DEEP DIVE: Reformation knows you don't care about sustainability, but that's fine
Context
Reformation is a California-based clothing brand that sells somewhat expensive but very chic clothes for fashion girlies. It started in LA in 2009, selling vintage deadstock (aka “excess inventory”) cashmere. The brand is now known for everything from special occasion dresses to denim, linen, vintage, and even shoes and bags (and taking all my money).
In 2019, they sold a majority stake to London-based P.E. firm Permira. That same year, Founder & then CEO Yael Aflalo stepped down after allegations of racism.
The company has been profitable every year since 2016, which is no small feat. Today, they are doing $350 million in revenue under CEO Hali Borenstein’s leadership.
What are they doing right?
brand tone: Ref is famous in the marketing world for their copy. I would venture to say they have the best brand voice on the internet: snarky, refreshing, unapologetic, and above all else, consistent. Their tagline is a great example: “Being naked is the #1 most sustainable option. We’re #2.”
collabs: Ref does collabs incredibly well. Recently, they’ve collabed on a voting and brand campaign called “You’ve Got the Power” with Monica Lewinsky, a buzzy eyewear capsule with Jimmy Fairly, and with the New York City ballet to launch balletcore. They’ve also done past product collabs with heavy hitters like Canada Goose for outerwear and Veja for sneakers.
owning the customer: 90% of Ref’s sales come from their own channels, which is kind of insane in this omnichannel world! This means that they collect a ton of data about who is buying that allows for tight feedback loops that can be quickly funneled to marketing and product.
product rollouts: Ref does an amazing job of rolling out new products. I distinctly remember the way they rolled out handbags for the first time, with a beautifully shot campaign featuring it girl Camila Morrone. But it’s more than aesthetics. According to Alison Melville, Chief Innovation Officer, they produce super small runs of initial product lines, sell them out, and then produce more. This helps alleviate waste (and, conveniently, means they won’t have a lot of deadstock). The downside? It can often seem like everything customers really want is sold out, or on preorder.
in-store experience: Ref has been commended for their incredible use of technology in their fitting rooms, and with good reason. They feature giant iPads for selecting new sizes, lighting you can alter to fit the mood, and magic closets that literally bring you a new size. And they convert; apparently, 65% of customers who try something on buy something. I don’t know the benchmark, but that is CRAZY high.
source: Reformation’s quarterly Sustainability Report
commitment to sustainability: this one is last for a reason. Ref’s mission is “to bring sustainable fashion to everyone.” However, in an interview with Puck, CEO Borenstein admits: “When we look at the data, customers do not buy us for the first time because we are sustainable.” That allegedly changes on the second purchase, but the unfortunate truth is that customers aren’t going to pay a premium for sustainability alone — yet. I have faith that we’re on our way there and Ref does too — committing to using 100% recycled, regenerative or renewable materials by 2025.
Hot Take 🌶️
Reformation is a really interesting brand, because I think they are full of contradictions:
Sustainability is in their DNA, but they know it’s not what customers care about — so it can feel like a bit of a footnote.
They are technically inclusive, but they also create clothes that feel like they’re made for size 0 and often don’t carry plus sizes in store.
They’re expensive, but there’s an entire side of TikTok that questions their quality.
It’s been rumored that the company will want to IPO soon, which makes sense given their majority sale to Permira. They’ll need to continue to grow organically, and do so in ways that address customer feedback while staying true to themselves.
That said, I think we can agree that Ref is doing a lot of things right. Their growth is impressive, and has been hard earned through strategic planning & decision making, customer feedback loops, and showing up authentically from a brand perspective.
So what can brands learn?
get clear on your tone, and use it wisely
use collabs to further a narrative & reach new audiences
use IRL experiences to connect with customers in a deeper way
make your fitting rooms better!!! They are a moment to surprise & delight (Zara, I’m talking to you)
milk product rollouts for content and as a way to further the brand’s narrative and mission
Free Ideas ☁️
(trying something new)
Here are some fun free marketing/product ideas for the Ref team as they’re thinking about growth and a possible IPO:
Ref Milestones. Now that Reformation is no longer a “new” brand, it would be fun to see how its clothes have been a huge part of customer’s lives. I think this would really resonate with millennials, many of whom have donned their outfits for some of their most important moments (weddings, birthdays, parties). Would also help tell the story of sustainability over time.
Making of Ref. I would love to see the BTS/origin story of Reformation, featuring founder Yael Aflalo. It feels squarely in the girlboss era and that feels like such a departure from where we are today? Would be great for brand lore, especially for new audiences that are new to Ref, but obviously feels a bit controversial since she was forced to step down.
Reftaurants. This one takes inspiration from the Ref brand trip to Ibiza called Ref in Residence, but I’d love to see the brand get into restaurants, hotels, or a community space, taking a page out of the playbooks of brands like Jenni Kayne, Flamingo Estate, and Sporty & Rich. Can you imagine a Reformation-themed restaurant with waiters head to toe in Ref? Sustainably sourced, carbon-neutral cuisine? Secret dinner parties & programming? They already win IRL, so this makes sense to me.
Last week, 95% of you though E.l.f.’s marketing strategy is amazing, while 5% of thought it was just okay. They’re killin’ it.
🆕 TREND REPORT
A new section, to keep you guys cooler & more informed than everyone you know.
People are once again collecting matchbooks. Per the WSJ, this is a fun trend and definitely feels in line with all the nostalgia we’re seeing across the board. Plus, matchbooks are chic. My cousin (hi if you’re reading this!!!) collects them, writes a quick memory from the meal on the back of each one, and stores them in a bowl, like a journal on display. Love.
Stylist chatbots are becoming more mainstream. Resale company ThredUp just launched AI-powered chatbot technology to make search better & occasion based (I.e. “help me find a dress for my best friend’s Cabo wedding”). this is definitely a trend we’re seeing and one I’ll be diving deeper into in my ongoing Future of Fashion series.
Korean Beauty is exploding on TikTok. I get into this a bit below, but it’s estimated that global spending on K-Beauty is expected to double in size to $143 billion in the next 6 years (!) Brands like Anua, COSRX (snail serum, anyone?), and Laneige are driving a ton of this growth.
🎲 ONE LAST THING
I’m reading the most interesting book I’ve read in a while, called Flawless by author (and fellow Substacker!) Elise Hu. It talks about the $10 billion Korean beauty industry and Hallyu, or the “Korean Wave” of culture exports since the 90s, comprised of K-Beauty, K-Pop, K-Dramas, and Korean food and fashion — worth an estimated $76 billion.
The book covers a lot, but what really stood out to me was the way that beauty is so much more than “skin deep” for South Korean people — partially due to government interest and its investment in the export of “medical tourism.” There’s a ton to take in, and it definitely makes you question beauty standards in South Korea and globally, how far we’re already gone as a culture, and where we might be headed…
Anyway, if you’re into beauty, brands, and culture, I recommend reading (or listening) to the book. If you do decide to read it, let me know so we can discuss!!! It’s juicy 🍑
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- Sabena
I swear I learn so much from this newsletter. It feels like my guilty pleasure every week because I devour it, but not so guilty because it's so educational and entertaining. OBSESSED.
Loved this one too!! I’m obsessed with Ref and your deep dive was sooo good!! Thank you