Episode 297 mit Luca Faloni (Founder, Luca Faloni)

00:00:00: Guys, we have a very special episode today.

00:00:01: We have Luca Falloni on the show!

00:00:04: He told us all about his fashion brand how he built it over the last twelve years... ...he started in consulting, lived in London moved to San Francisco and then went back to Italy talked to all these amazing people there.. ..and learned all about different regions ,the different materials And All About Fashion.

00:00:23: This is really great story.

00:00:24: so I really advise you to listen through the whole episode, this one's going be in English since Luca doesn't speak German.

00:00:32: I hope that is fine!

00:00:33: Please leave me a review and subscribe.

00:00:36: if you like these English episodes let know.

00:00:38: maybe we can do more of them.

00:00:40: So now lets go with Luca Falloni.

00:01:21: Luca, welcome to the show.

00:01:23: Thank you for having me!

00:01:25: So, how's being in fashion these days?

00:01:30: It is a rocky world.

00:01:31: The last five years particularly since I started the business ten years ago... ...the first five years were relatively smooth.

00:01:40: obviously it was difficult to get a business off-the ground.

00:01:43: so you have normal challenges and they are fun days.

00:01:48: then Covid came And the past five or six year has been fairly challenging.

00:01:56: every year is a bit different.

00:01:57: First was COVID, lockdowns then it's difficult to produce the goods.

00:02:01: for couple of years there were inflation and wars.

00:02:06: consumer confidence affected tariffs in America.

00:02:10: so as always something new I guess.

00:02:15: entrepreneurs that grew up business industry.

00:02:18: they learned how be resilient and always be ready for the next challenge.

00:02:23: Okay, we will go into that a little bit more in detail later on this show but give us quick introduction.

00:02:29: who are you?

00:02:30: And what is your current building?

00:02:32: Yeah so I'm building basically The first direct-to-consumer brand from Italy.

00:02:39: In the elevated case of space We're focused on five materials.

00:02:45: So all nice things like cashmere linen brush cotton, silk cashmere all the nice blends and everything is made in Italy.

00:02:55: We build what we call a permanent collection of very well-made luxury pieces but differently from other fashion labels... ...we don't change their collections every season because we don't sell to buyers I mean to the wholesale channel.. ..we sell it for the final user.

00:03:14: so We need to give them what they want, not what the buyers wants.

00:03:22: Yeah so this is where you've been for a living.

00:03:24: Okay it's super nice.

00:03:26: I mean i drive by your store in Munich almost every day because of my bike there and live in the area And its really nice!

00:03:34: I like fashion.

00:03:37: So when we say luxury What does that means?

00:03:43: For me, luxury is the intrinsic quality of pieces we produce.

00:03:47: The quality of material and manufacturing for other brands or industry may be more about high prices exclusivity or perceived exclusivity scarcity.

00:04:06: We work in a different way and make them available to the highest possible people globally.

00:04:17: So, in a way we are... I have different view of luxury more let's call it democratic but real focus on product rather than psychology of it.

00:04:27: Okay that makes sense!

00:04:29: And so my personal goal.

00:04:33: when comes fashion then you can say if i achieve with Luca Falloni okay?

00:04:38: I usually, think of fashion.

00:04:40: Um...I'm not the most fashionable guy i'd say but like a good style and really like material.

00:04:47: so always want to be that guy who can go to pool party.

00:04:51: okay he's dressed well maybe little bit overdressed.

00:04:55: then also in business meeting people will be like ok he is dressed well it looks chic but maybe could have worn suit or something my style should fit every occasion.

00:05:06: I'm rather overdressed and underdressed, but also fine with being undressed a little bit on chic events.

00:05:13: Can i do that?

00:05:14: Yeah!

00:05:16: I really like how you describe yourself because this is what our customers look at the world.

00:05:23: They don't want to be the most fashionable guy in the room.

00:05:28: First of all it's about dressing.

00:05:30: being comfortable you know, being confident have nice materials that are also good for the time of year cash.

00:05:39: So all our materials what I call fine materials are great for the season.

00:05:44: Cashmere keeps your body temperature.

00:05:47: Linen keeps you fresh in summer etc.

00:05:50: and so look men shop.

00:05:53: usually when we're looking at a market man-woman shopping different ways.

00:05:57: women want something different every time they go out something, they like novelty when they go shopping.

00:06:03: Men to solve a need.

00:06:06: and what you said is exactly our market.

00:06:09: we'd like to be in the what I call the elevated casual space so something between casual and formal.

00:06:15: by the way after COVID also before there was already trend where that wardrobe was becoming less formal especially for work.

00:06:25: the kind of concept of business casual was more accepted in more industries and is going more that way.

00:06:32: And also, the lifestyle of people has changed over the years.

00:06:36: it's more dynamic, people travel more.

00:06:38: People might work a little bit at office or home A little bit they travel.

00:06:42: So obviously you cannot change every time your setting changes.

00:06:48: The clothes we try to build are dynamic.

00:06:52: What I like about products is like you can dress them up or down based on the needs.

00:07:00: Let's say a denim shirt, if you wear it over a pair of chinos

00:07:08: etc.,

00:07:09: I can be more casual but If you were under a suit You are basically creating and more modern look than wearing formal shirts Under a suit.

00:07:18: And so again as your point where in the business meeting being cool guy rather then the standard risk averse person.

00:07:29: Okay, understood makes sense very cool.

00:07:31: um can you give us a little bit of some facts like where are you located?

00:07:35: Um West Headquarter whether you have stores?

00:07:37: if you have like lots of stores just say something about that.

00:07:41: so all the production is in Italy.

00:07:43: So we have an office that runs basically all the products in Bergamo and their relationship with suppliers.

00:07:50: All our factories that make the product tend to be North Italy, but we went around every region of Italy.

00:07:56: To see what they're good at in Italy.

00:07:58: each region specialized and different products.

00:08:00: for instance.

00:08:02: Toscan is better for leather goods.

00:08:04: The Lombardia it's better for shirts.

00:08:06: Veneto era It was very good for jackets outerwear.

00:08:09: so We have factories all over there the countries that laboratories made a product And then materials as well?

00:08:15: We bought them from their regions of Italy that are good for those materials.

00:08:20: For instance, we buy textile from Piedmont and cashmere from Le Marc etc... We also have an office in London where it works more about the soft skill of the brand.

00:08:31: so finance marketing this sort of area not related to the product.

00:08:37: So everything related is followed by Italy.

00:08:40: The non-product areas follow from London And then there's a retail presence which at the moment is twelve stores.

00:08:49: We have mostly there in Europe, eight are in Europe and four are North America.

00:08:54: The Europe one cover basically all of the major capitals.

00:08:57: so Milan.

00:08:59: we started from the fashion capital.

00:09:01: So Milan Paris London New York And then we expanded in other major capital or city that We believed are important to build Great distribution and a great brand.

00:09:14: So if you have Munich Zurich Miami Toronto, any some of the cities with double down like obviously The big cities like New York and London Are very important for us in terms of revenue.

00:09:27: so?

00:09:28: The good thing as well that is interesting, it's the relationship between online and retail.

00:09:38: We started a brand online selling globally.

00:09:41: we never restricted their shipping areas from day one actually And so you could see really clearly okay people in this city like our product People in that region Like our products.

00:09:53: So we followed with stores In places where new customers And what do you see at the beginning when you open a store in a location where we already have online customer?

00:10:04: Some of those online customers start to shop in the store.

00:10:07: So, The Store in the short term cannibalizes their online channel let's say and then they grow together because the brand awareness In that region is goes up

00:10:15: a lot Interesting.

00:10:18: well Congrats man.

00:10:19: I mean ten years building being a fashion pride sounds doesn't sound easy for me.

00:10:24: i think That's something that You can just you know.

00:10:26: Start from from your room or maybe you can give us a little bit of context.

00:10:32: How did you start?

00:10:32: What was the first time that idea raises in your head when it was there?

00:10:38: and then,

00:10:40: I don't come to be honest with fashion industry some people study fashion they want design something different.

00:10:51: I came from...I was a customer of other brands, I always bought the product like every other man on the planet.

00:10:59: and then I grew up in Italy, I studied in Italy.

00:11:04: Then after university i was doing my master's in London , I remained to work at London in consulting strategy consulting at Bain And in that period, I was living and working abroad.

00:11:18: I noticed never buying clothes abroad but only during my trip back to Turin when visiting my family.

00:11:30: The reason is it's very simple and logical.

00:11:33: In Turin where I knew the quality of a product... which small shop or artisan does the nice shoes and the nice trousers.

00:11:44: And everything is a style I wanted, it was fairly prized.

00:11:47: when i was living abroad first in London then moved to San Francisco still with consulting...I couldn't find that same ease of finding the design and product quality prize I want..and never thought about as business for long time years.

00:12:07: Then one day in around two thousand twelve, twenty thirteen I was in San Francisco and those were the years where The first direct-to-consumer brand started.

00:12:19: iIwas always entrepreneurial In my mind ,i always wanted to start a business And uh... I Was Always Keeping My Eyes Open For Something Innovative And Interesting.

00:12:29: So..The First Direct-To-Consumer Brands Were Starting And basically, before that year brands were mainly what I called wholesale brands.

00:12:40: A wholesale brand let's say produces with their own design.

00:12:43: they find a manufacturer to produce the product and then they sell the products for third-party retailer Let's say it was department store or a multi-brand store Or an online retailer.

00:12:57: And this third party then sells to the customer, but obviously there is an extra step which increases the product price by two point five times roughly.

00:13:07: I never knew about these models and when i was in San Francisco learned about it because they were the first direct-to-consumer brands that were disrupting This old business model.

00:13:18: and they weren't basically saying you know what we're not gonna sell to retailer We are going to sell directly to the customers using their online channel.

00:13:26: And that was a very innovative model because you could essentially charge almost one third of the comparable product.

00:13:34: That is sold to a retailer, not only that but you have direct relationship with customers so get their email and know what they're buying.

00:13:40: You can recommend products.

00:13:42: my like ask them hey how did your product do?

00:13:45: Get feedback on improving it.

00:13:48: The improvement cycle is fast when there's direct relationships to improve our product over time.

00:13:57: And so, To make a very long story short because it is a long story It's now over ten years of my life I understood that this direct consumer model could be used to basically Make those products that i knew from Italy Available through the world at prize.

00:14:20: And so, you know essentially we would take the best quality products available in Italy like they are very famous brands offer and we make it available to their internet at a fair price globally.

00:14:32: We started with a subset of our collection today over time every time we improved up enough category we added another category.

00:14:42: So we grew where we're now.

00:14:43: Okay Understood but still can I go back the first piece, how did that happen?

00:14:51: Did you travel back to Italy and then like went into fabrics or what... How did you come through this piece in the first set.

00:14:58: It's actually a funny story.

00:15:00: um I obviously when i wanted to start in the industry ,I don't come from fashion.

00:15:06: so uh not coming from fashion.. I didn't have network of people who create these products.

00:15:13: So but I remember starting from, uh...I started in Bocconi Milano where there are many-many sons of some of the families that do business in the area north and Italy.

00:15:24: And you know they come from all different backgrounds!

00:15:27: One of these people had a family business that produced belts..and he....I remember here the business was quite successful.

00:15:37: I saw asking some question like, uh...I wanted to learn how producing belt works and um..how the industry works.

00:15:46: And we talked for a long time.

00:15:47: then i said like great why don't you start making belts?

00:15:50: For me obviously I always want it too.

00:15:53: create total look with all categories over time but you have to start somewhere.

00:15:58: so I thought maybe accessories on the internet, it's easier at the beginning because sizing is less complicated than a shirt and etc.

00:16:06: So i thought okay let see if belts could be an area so... And we talk in long time and say ok lets produce belts!

00:16:15: He was like no but wait for second..I produced women's belt!

00:16:19: Clearly that must have been same right?

00:16:22: And he said completely different industry product.

00:16:26: We don't make men's belts.

00:16:28: And he was like, but I know that the person in Italy makes the best man's belt.

00:16:34: So he introduced me to this other fantastic person who now is retired from Bergamo and spent his whole life making belts for men.

00:16:43: And also, then he introduced me to the people that make the best leather from Tuscany.

00:16:50: So I went to Tuscanya to explore this town called Santa Croce where people make full grain leather.

00:16:56: they've been doing leather literally.

00:16:59: this town made leather for hundreds of years and so after that They introduce me to someone in the area that makes wallet and someone who makes bags.

00:17:09: In that journey you start driving into a small town never heard off.

00:17:15: Everyone knows everyone and you know, you start hearing the stories.

00:17:21: And then we started actually selling... The first product was a travel bag but obviously it's quite expensive compared to a shirt or pair of trousers.

00:17:32: so he wasn't selling that much.

00:17:34: Also when I launched Bells he wasn' t selling too much.

00:17:38: But along our journey we bumped across someone in Lombardia that made shirts his whole life and I was like, ah but selling shirts online would be difficult sizing will be complicated slim regular many sizes.

00:17:59: But then These products, I mean we developed something that was so beautiful and like okay let's try.

00:18:04: And we launched these shirts which is still today one of our best selling product.

00:18:09: We made this shirt with a one-piece collar That became really iconic of our brand.

00:18:16: Then over the years Prince William started wearing in his shirt.

00:18:20: No way!

00:18:20: Okay...

00:18:21: And that was like Our first major piece of PR that we really took us off.

00:18:27: And in parallel, still once I started gravitating around the area of Bergamo and Brescia which is like just outside of Milan.

00:18:35: a lot of laboratories are in that area on that areas already re-entrepreneurial.

00:18:41: So uh We started making knitwear with one of the guys in the area who has been making knitted for couple generations and you know little by little used to understanding the details of every product, every category.

00:18:55: And then gradually you spun the collection after that was quite natural developing a collection because for instance we became really good at linen shirts and in the process We understood Linen as material.

00:19:07: so The next question was okay What do we do with linen?

00:19:09: Okay!

00:19:10: So we developed linen trousers.

00:19:13: look At that point we didn't know anything about trousers but when you're about linens it's what is a good start as standing in trousers was more natural.

00:19:24: Again, linen led us into linen suits.

00:19:27: Everyone was buying this shirt and they were asking do you have a blazer to sell with it?

00:19:31: I'm like no we don't.

00:19:32: but since everyone asked... We started thinking okay maybe we should sell the blazer.

00:19:37: And one thing leaded on let another.

00:19:39: and again having developed leather learning about leather from day-one.

00:19:49: Then we bumped across some people in Veneto that create amazing, amazing outerwear.

00:19:55: And it is expensive to make this outerwear.

00:19:59: even if you sell through a direct-to-consumer channel the customer still pays high price.

00:20:05: but with all look these are so beautiful and then people bought them.

00:20:12: So I remember early days when renting the cheapest car I could rent, every time i got to Tuscany or wherever and was travel from early a.m.. To the evening meeting you know in random town never been meeting interesting people.

00:20:29: it was those still were other days

00:20:31: Super interesting.

00:20:32: did she do that while still working consulting no probably job.

00:20:36: right

00:20:36: now.

00:20:37: look II was in San Francisco at the timing consulting as soon thought, okay.

00:20:45: This direct to consumer model can be applied too high end Italian luxury product let's say.

00:20:50: I went back to Europe and I quit my job.

00:20:53: And it took me a year where there was an ear from idea to launch because i'm perfectionist and really...I remember the first three months..i made at least of like one hundred brands or something that i respect.

00:21:11: And then Brandon made it in the, in the parallel fashion industry and I started studying each of them.

00:21:17: Why they made how they made what makes him different from other brands?

00:21:21: I don't respect.

00:21:22: or other brands that didn't make it over the years.

00:21:27: a plan that could work or could increase the chances of success.

00:21:35: And then after that, I'm like okay now we have kind of a plan.

00:21:38: how do we create the product?

00:21:39: and i remember the first prototype of The Bag.

00:21:42: it took us months to get it right!

00:21:44: There are dozens of that laboratories still remember me because there was this guy who didn't produce many volumes at all but he was annoying them the most... It just started with every producer.

00:21:57: Even the producers now produce a lot of units for us.

00:22:01: They still are scared to meet me because every time they meet, I come up with new ideas to change the product again and what we like to keep things stable.

00:22:15: but we always try to learn from our customers.

00:22:19: over these years you hear something that you want to implement.

00:22:23: That's when i love that.

00:22:24: sorry you know why.

00:22:25: because today or these days lots of companies and startups they build a deck, There's no real product, not really customer.

00:22:55: So you did it.

00:22:55: probably this sounds like you do the other way right?

00:22:59: Yeah so I made a point of...I don't want to raise money until i have live website with at least couple products and use my few savings ad and max out couple credit cards.

00:23:14: And we launched first product then raised little bit more from two or three friends In two thousand fifteen and set and I said, I'm not gonna raise bigger amount of money until have some revenue to show to invest.

00:23:29: I've always been You know in Silicon Valley they do big rounds or revenue be grants financing with relatively Big dilution for investors for current Investors And i've Always done it differently.

00:23:43: every couple Of years I raised a tiny bit of Money just enough To Be safe for another Couple of Years.

00:23:51: I've always looked at dilution as, you know in Silicon Valley people celebrate when they raise money.

00:23:56: to me is actually the opposite.

00:23:59: When you raise money... Yes!

00:24:02: In a way people are happy to invest and it's validation for your concept but there isn't really much to celebrate.

00:24:08: It still means that other people need more money to make their business viable.

00:24:13: So basically selling part of your kid And I still retain majority control of the business, which have been very capital efficient in developing the business.

00:24:32: We launch retail only at a later stage where because obviously retail is great way to increase brand awareness and add additional revenue but it requires a lot up front investment in the store, and so I already launched retail after five or six years.

00:24:50: And i've always done it anyway which is very gradual.

00:24:53: every year open a couple of stores and then last there was three stores.

00:24:58: now we're trying to do four stores per year.

00:25:00: but I know if you keep consistently over time and also because of a long term mindset.

00:25:11: Um, I don't want to sell the company in two or three years.

00:25:13: I probably don't wanna sell the companies full stop in my lifetime.

00:25:16: um And so If you have that long-term i know then In the long term we could have two hundred stores maybe two fifty three hundred.

00:25:25: But You can try To get there in ten Years diluting yourself A lot and Probably getting a heart attack on The way.

00:25:34: Or you open three, four per year and then five or six.

00:25:37: And it might take you twenty-five years to get there.

00:25:41: Thirty years but that's okay!

00:25:44: Also like a brand needs... You cannot just push with force the creation of a brand.

00:25:51: A brand is to grow organically.

00:25:53: You need to weigh that.

00:25:54: Prince William buys randomly your product?

00:25:57: And you need to weight at friend of that person who never heard about their brand tells him that, oh I've been wearing this brand for a while.

00:26:06: It's quite nice of ago and maybe they find it in Brinnerstrasse where you see the store but never thought there would go into them.

00:26:15: You need to push many channels gradually consistently over time.

00:26:20: Also another reason why i don't recommend any founder or product based business To really push for growth Or very high-growth early years is because The product I believe is the key Output of their business before the brand and before the service.

00:26:38: obviously services very important And brand it's very important, but you cannot create a great Brand if the product is not great.

00:26:45: You're lying to your customers.

00:26:46: If you trying to do so and eventually they lie will catch up.

00:26:51: But so first you need to improve the products, but he takes time, you know Your launcher product?

00:26:57: You get feedback.

00:26:58: next Next production batching prove with the beat you might spot things that break after two or three years.

00:27:04: So, uh... You don't want to have a lot of inventory with bad products and um.. Or let's say not perfect product.

00:27:11: so to me A LOT OF my work now yesterday was in Bergamo the whole day reviewing products That we've reviewed a million times already And uhh We always find something new.

00:27:23: Now were going more niche about what we tried improve.

00:27:26: After how many washes does the The button break or something like that.

00:27:32: You know, we try to test things through their streams and It's quite fun.

00:27:37: it becomes more niche.

00:27:40: But in the same way when you raise a kid first need to teach him how to walk And then What career to start?

00:27:48: Sure different things at different time

00:27:50: makes sense.

00:27:51: so Like he said your spending a lot of time with the product I think even in there in the ten year video.

00:27:56: He'll say you spent two days a week Doing product.

00:28:00: What does that mean?

00:28:03: Can you tell me how a day looks like in your life and maybe one of those days also?

00:28:07: I'll tell

00:28:07: you, i'll tell You How A Week Looks Like Because I've Structured My Week In A Way That Allows Me To Push Each Department Consistently A Little Bit Every Week.

00:28:18: If You Start So There Are Two Ways to Work On Thing.

00:28:21: Either You Go By Priority Okay Product Is The Most Important Thing.

00:28:25: so You Only Do Product or you try to go by department and at least do some priorities.

00:28:31: Even for the departments that are seemingly non-important, okay?

00:28:36: So my week is as follow... And btw the weekend goes into the weekend.

00:28:40: but so Monday I always start with strategy.

00:28:45: So i have a two hour meeting in my second most important person of business after me.

00:28:53: there are like handfuls very important people that this person follows strategy and growth.

00:28:59: So then we discuss how the previous week went, And if there is any learning for the immediate future although obviously We have long longer term strategy but like would try to learn from any small things That happened a week before.

00:29:12: Then I work on finance.

00:29:15: Obviously Finance.

00:29:16: it's an area where you Have To Be Sharp.

00:29:18: so your brain Is Fresh.

00:29:19: On A Monday You Can Focus On That.

00:29:26: Okay, retail involves thinking how to improve each store.

00:29:30: You know the retail experience.

00:29:32: Tuesday is always about brand and website.

00:29:35: I try after a hard Monday let's say i tried To have a creative tuesday.

00:29:41: uh to rest my brain A little bit.

00:29:44: so um these two areas are quite creative And very important.

00:29:48: Wednesdays Always production usually Which Is different from product design.

00:29:54: It related but different.

00:29:56: So I want to learn, uh...I wanna make sure in our business effectively a fashion business.

00:30:03: the reason why many people that come from fashion don't succeed is because they don't understand their design part as important.

00:30:11: and keeping cash flow order having product on shelf at right time not too much or little which sounds easy especially when you work with Italian laboratories.

00:30:24: Things are not like in Germany.

00:30:27: So sometimes you have to, make things happen.

00:30:33: and so when's this production?

00:30:35: And some product design.

00:30:36: Thursdays also again a product design and some HR and logistic and Friday is basically everything else.

00:30:48: I haven't had time to finish on the week all the loose ends And whatever other things come to my mind.

00:30:56: Saturday rest Sunday prepare the week in.

00:30:59: In the second half of that I try too.

00:31:01: I tried to never Be home later than four p.m.. So have i basically do?

00:31:06: My first day of the week is a. I try to put eight hours on a sunday after an evening night.

00:31:12: so I like to start the week already kind of Knowing what are the priorities and being prepared?

00:31:21: And how about like everything that comes up?

00:31:23: Like, you know during the week.

00:31:25: That's trying to interrupt this schedule.

00:31:28: How do you take care of these things?

00:31:30: yeah so does.

00:31:31: that's them The usual.

00:31:34: You have a to-do list over certain amount of tasks Plus doing the week three times the month of task show up somehow and you end up with we can only half the things he wanted to Do.

00:31:46: luckily there is an X week.

00:31:52: If I could do, you know...I have a very long list of things we are working on and through.

00:31:59: And if i look where were now compared to five years ago?

00:32:05: We made a lot progress!

00:32:10: Every smaller period of time.. I always wish that we've done more but you can't accelerate things.

00:32:18: Look, the brand could be bigger by now probably if I was a bit more aggressive or If i dress more capital.

00:32:25: I'm happy where we are And and when doing things like you know slowly with passion You know?

00:32:31: Like to go Saturdays as I did say it to you II don't work but that's not true.

00:32:36: actually I Wherever cities I am I got in this store and they try to speak tutorial for customers Or uh, you know it's interesting.

00:32:46: going to stores or your own website as a founder is always important but also stressful because I go into the store with eyes of finding what doesn't work.

00:33:03: Now over these years, more and more people are like actually this story was nice!

00:33:08: i'm happy about everything that they see give to the manager and I tell my team.

00:33:17: And i always come up with new ideas that we can apply it.

00:33:20: all the stores globally, next day... It's quite stressful!

00:33:25: You know like..I don't.

00:33:26: if you watch a movie The Founder about McDonalds story when at the beginning the guy goes visit one of their first franchisee and he starts picking trash and all those things is pretty much like that.

00:33:40: It's pretty much like that.

00:33:43: I see a lot of commonalities on, um... On the movies.

00:33:46: very cool.

00:33:48: so one Of my last questions.

00:33:50: So i think in other videos you also said when You think too Much about some things?

00:33:55: You don't do them.

00:33:56: yeah

00:33:58: Can you can you elaborate A little bit on That?

00:34:01: look i mean i have people that are Like oh but this wouldn't work.

00:34:05: This Wouldn't Work Often You know, I didn't want to give us a few examples.

00:34:11: First when you start the business if some people...I don't think that started businesses are smarter than those who don't.

00:34:20: or there's other stories where they come with no education background and start great business Or people drive their truck at Walmart then become CEO twenty-five years later.

00:34:32: My point is either being a funder requires Insane level of intellectual capacity, but it does require the very first difference that some people start.

00:34:45: Some people don't start okay?

00:34:47: That's a very first different and The people they don't star usually are very worried about what could happen if you start.

00:34:54: Oh I need to give up my job.

00:34:56: I need two.

00:34:57: this might not work.

00:34:58: People may think come crazy or And And that did happen to me the first few years.

00:35:05: By the way, all my friends thought I was crazy right?

00:35:08: But but the first thing is like if you if you are not... If you over analyze something You always find something doesn't work.

00:35:14: so when i started this business I analyzed other brands But I didn't do a very little business plans about.

00:35:21: I analyze other brands and then I analyze how To make a product but it didn't study How to get to market or How you know, otherwise it would have been very complicated to figure out all in one go.

00:35:35: So first thing is to start.

00:35:37: You shouldn't ask too many questions.

00:35:38: if we ever passion like If you have an idea just go for what can possibly happen?

00:35:43: It doesn't work at the very least as a fun project.

00:35:48: And you learn something and then look a million times over there.

00:35:52: Our journey, you know.

00:35:53: The first time we opened the store right with I never wanted to do retail Right.

00:35:58: i wanted to only online direct-to-consumer and not retail direct to consumer, because retail require a lot of capital.

00:36:07: And I thought all line alone was enough.

00:36:10: but then one of our customers was um uh a retail agent.

00:36:17: his job was to find stores for brands and he told me... He made an excuse to meet me ...he wants to give me feedback about the product.

00:36:29: pretty soon was obvious that he wanted to convince me to open stores and And I said look Let's In.

00:36:36: he said, look there is this pop-up opportunity.

00:36:38: Do you want to try it?

00:36:39: Look why not?

00:36:40: It wasn't three months.

00:36:41: pop up in a major street in London and we tried to pop up and To my surprise people were come people they never heard about the brand We're coming in and buying.

00:36:52: okay.

00:36:52: so very interesting.

00:36:54: and two people that heard about the brand or bought online, they were coming in and they're happy to see something physical.

00:36:59: So we thought okay this channel is also interesting.

00:37:02: And then I remember another time was like instead of opening more stores in Europe The second store I opened in New York, which for us was something crazy.

00:37:17: First you know we were a small very small company and as the brand makes sense or has a company makes some people think make sense to first scale nationally rather than internationally.

00:37:29: because obviously when it go internationally You double your structures?

00:37:34: They're more complexity...you don't know geography but i went to new york several times And It Was Very Spensive Very Complicated To The Business There If You Come From Europe Um, but eventually we found the stores and it was a start of our US journey.

00:37:50: And us is uh, forty percent about volumes now online or line up online and offline.

00:37:56: But if you didn't understood American customers with that opportunity he would have taken longer.

00:38:06: um all the times they were like okay Uh We started being successful let's say smaller priced items like shirts and knitwear.

00:38:17: And I thought, look it's crazy to launch jackets that cost much more than those products they will not sell online.

00:38:24: our customers will perceive as different in the store but we started creating this beautiful outerwear and sold!

00:38:33: Suddenly it completely changes the stores economics because you don't need add some revenue to that specific stores, and also it completes the look.

00:38:47: It's more beautiful to create an outfit on a mannequin.

00:38:51: there is something else to

00:38:52: show.".

00:38:53: And so that's another example.

00:38:55: or often like we test new things in your software then I'm not... Or new initiatives.

00:39:03: they were never done before.

00:39:04: New channels have been ever done things like that.

00:39:09: And what I've learned over the years is, as a founder or business CEO you always need to kind of have foot on accelerator and foot on brake Like pilot formula one.

00:39:25: You need to accelerate when it's time to accelerate but be ready to break And everytime there an idea try it.

00:39:32: If doesn't work That's ok.

00:39:35: Try smaller.

00:39:36: Give example.

00:39:37: Now we launch shoes.

00:39:39: We don't know much about shoes in complete honesty.

00:39:43: I mean, i know about shoes as a customer though and Don't forget the experience that people develop is a customer Is very very valuable?

00:39:50: I never run a restaurant But I can tell you what other things are important to me As someone who eats in restaurants.

00:39:57: And if one day want open a restaurant which something would like do Um...I'll have couple of inputs.

00:40:04: but my point is Shoes.

00:40:05: we've launched them a few stores at the moment, they're not online.

00:40:09: They are only available in small selections and we are testing them And it's going well.

00:40:17: We will improve a couple things then launch them online.

00:40:20: But my point is there also way to rather than doing a lot of analyzing up front just Launched best output you can do on shorter time Then improved along.

00:40:31: that way

00:40:32: Makes sense.

00:40:33: Very good advice.

00:40:35: I like how you always have a story when you say something or share learning, advice.

00:40:42: Last question... So probably heading to your store in the next two-three weeks I think because i need some new stuff and I love cashmere and all sorts of things.

00:40:53: You heard it?

00:40:54: What should be exploring?

00:40:56: anything that is new for me particularly point at.

00:41:04: Recently, we started adding a lot to the categories of outerwear and layers.

00:41:14: Which I like them a lot because A it allows us build an outfit but also some people going back.

00:41:19: your point about dressing up or down for meetings etc.

00:41:23: Layers allow you be more creative And i love over time work with leather because in outerwear, it completes kind of the cycle all the learnings we've done over ten years.

00:41:38: We know about shirts and now we just launch a straight-over shirt.

00:41:45: It's a fantastic piece.

00:41:47: So that would be one.

00:41:49: The razor jacket again is probably one of the best little jackets on market.

00:41:53: I like to tell stories which are always... If people ask me describe my razor jacket In very simple way the leather jackets Tom Cruise would wear if he was driving a motorcycle.

00:42:08: So that's my simple explanation, but I love look.

00:42:14: generally I love old... We don't put something on the shelf If we do not believe there is need and yes our business very similar in way to to Costco.

00:42:34: We don't try, even if Costco is a grocery chain and they sell a bit of everything but there are very few options for each category If not one option.

00:42:43: And that gives you the possibility To have scale in that option and rotate inventory faster than another distributor.

00:42:54: For us we produce our own product.

00:42:57: it give us an opportunity.

00:42:58: Make it as good.

00:42:59: As we believe should be and if you only sell once rate of a shirt, You might well make it the best design.

00:43:05: that I think is should be in the best quality.

00:43:07: everything.

00:43:08: so Yeah every thing.

00:43:10: i recommend having a little exploring Everything

00:43:13: okay?

00:43:13: I do.

00:43:14: Well this has been fun.

00:43:16: Thank you So much for doing It.

00:43:17: i Think there was an A lot of advice a Lot Of cool stories And In The whole The Whole Conversation.

00:43:23: so thank you so Much For Doing This.

00:43:26: I'm looking forward to speaking again or seeing you in one of your stores.

00:43:55: Travel to nice places and you know in this I go now every year to Munich for the tennis tournament And it's a good open to see the store as well.

00:44:04: Amazing.

00:44:05: I'll

00:44:05: meet

00:44:06: you next week.

00:44:07: I'm at the Open as Well, um i have tickets for that for the time.

00:44:09: so okay very nice.

00:44:12: I love it.

00:44:13: looker Thank You so much.

00:44:14: perfect thank you for having me on a great day.

00:44:17: Yes, everything from here.

00:44:18: If you guys want to explore Luka Faloni You can check the show notes.

00:44:21: there will be links.

00:44:22: There would be links to our website and what I do connect with us.

00:44:26: It's always worth trying To get in contact And looking forward to next episode.