Michael Preysman, the founder of Everlane, shares his journey from finance to fashion, driven by a passion for transparency. He taught himself the entire production process and challenged industry norms by revealing the true costs behind his T-shirts. Michael discusses the impact of ethical practices on brand growth, as well as the hurdles faced during the COVID era. He emphasizes the balance between profitability and sustainable practices, showcasing how consumer advocacy fueled Everlane's rapid success.
Everlane gained success by offering radical transparency and affordable, high-quality products.
Everlane faced challenges with micromanagement and learned to trust experts and build a sustainable bottom line.
Everlane prioritized sustainability and ethical manufacturing practices, connecting products to factories and promoting responsible practices.
Deep dives
Everlane's Radical Transparency
Everlane, an online retail platform, gained success by offering customers radical transparency. They started by selling t-shirts at a fraction of the cost of luxury brands and disclosed the true cost of manufacturing. Customers were attracted to the idea of ethical consumption and getting high-quality products without exorbitant markups. Everlane expanded its product line to include backpacks and other basics, all while maintaining transparency around the factories and materials used. The brand's growth was primarily driven by word-of-mouth and organic buzz. However, Everlane faced challenges with micromanagement and learning to lead as the company grew.
Narrowing Ambitions and Learning from Failure
As Everlane experienced rapid growth, the focus shifted towards scaling the business rather than profitability. The company raised $25 million in funding and achieved revenue milestones. However, in hindsight, the founder, Michael Praiseman, acknowledges the need to transition from growth-oriented strategies to building a sustainable bottom line. Building a strong culture of entrepreneurship within the company allowed for experimentation and learning from failure. For instance, the hiring of a renowned designer led to micromanagement issues, highlighting the importance of trusting experts and allowing them to do their jobs.
Expanding Radical Transparency and Environmental Consciousness
Everlane's commitment to radical transparency expanded beyond pricing and encompassed factory conditions and environmental impact. The brand undertook factory visits, live-blogged their experiences, and connected specific products to the factories where they were made. The tragic events in Bangladesh reinforced the need for transparency and ethical manufacturing practices. Everlane's move towards sustainability and environmental consciousness began with the launch of denim and the discovery of a factory that detoxifies and repurposes denim dye. While consumer behavior might not always align completely with sustainability, there is a desire to support brands that prioritize responsible practices.
Building Everlane as a Direct-to-Consumer Brand
Everlane, a direct-to-consumer fashion brand founded by Michael Praisman, focused on offering high-quality products at fair prices. The company initially started with t-shirts and used a transparent pricing model to communicate the costs of production. They faced challenges and criticisms from competitors, but continued to innovate and expand their product line. They introduced ties and bow ties, which didn't perform well, but learned from the experience. Everlane also prioritized sustainability, tracking greenhouse gases, reducing virgin plastic use, and using recycled materials. The company navigated through the COVID-19 pandemic and made adjustments to remain profitable and ethical.
Leadership Changes and Challenges
After experiencing significant growth and reaching profitability, Praisman stepped down as CEO of Everlane to become executive chairman. The company faced internal challenges regarding transparency and unionization. Everlane responded by addressing issues and implementing changes to improve employee satisfaction, such as tracking greenhouse gases and working towards fair wages. Praisman reflects on the journey, acknowledging the need for clearer expectations and a balance between doing good and achieving profitability. He shares personal struggles and emphasizes the importance of allowing companies and employees to adapt and evolve.
When Michael Preysman founded Everlane, he knew nothing about fashion–he just wanted to see if he could build an online platform that would generate buzz around anything. He started with a cotton T-shirt, and taught himself every stage of production, from sourcing the fabric, to cutting, dyeing, and finishing. When Michael realized that some luxury brands charged as much as seven times the actual cost of a T-shirt, he decided to sell his for $15, and soon caused a stir by telling the world exactly what it cost to make. Eventually the brand shifted its focus to sustainability and social responsibility, a strategy that invited harsh criticism, especially during the Covid era. Today, Everlane is a multi-million dollar business that has expanded to sweaters, denim, outerwear, and accessories.
This episode was produced by J.C. Howard, with music by Ramtin Arablouei
Edited by Neva Grant, with research help from Sam Paulson.
