The fashion industry is abuzz with news that the ultra-fast fashion giant Shein has acquired Everlane, a brand once lauded for its commitment to radical transparency and sustainability. This development, which broke on May 17th and was confirmed three days later, has sent ripples through the consumer base who felt a personal connection to Everlane’s ethos. However, this sale did not occur in a vacuum. Following a period of substantial growth since its 2011 inception, Everlane faced significant challenges, exacerbated by the COVID-19 pandemic. A majority stake was acquired by private equity firm L Catterton in 2020, followed by the founder’s departure in 2021, leadership transitions, layoffs, and mounting debt, culminating in this surprising $100 million acquisition.
The Founder’s Perspective
Michael Preysman, the visionary behind Everlane, who has recently been focused on an electrolyte brand named Drink Magna, is now re-entering the fashion discourse. In his own words, he addresses the unforeseen trajectory of his initial venture and unveils his future plans.
“When it was announced that ultra-fast-fashion brand Shein had acquired Everlane, the clothing company I founded in 2011, I quickly realized that the most viral thing I’ve ever done was something I didn’t even do,” Preysman reflects.
Genesis of a Vision
Preysman recalls the early days, stating, “When I started Everlane in 2011, I was 25 years old and had the fortune of growing it to a significant size with an amazing group of people. We built something really meaningful, deeply rooted in an idea which challenged companies that had zero transparency and zero understanding of where their products were made. They make the product mostly in China, ship it to Italy, do the final steps in Italy, and say ‘Made in Italy.’ It was completely dishonest.”
Drawing inspiration from his West Coast upbringing, Preysman aimed to democratize fashion through the internet. “I grew up on the West Coast in Northern California, which is the epitome of democratization, and I felt we could use the internet to bring that level of democratization to the most basic product: a white t-shirt. It struck a chord, and we were able to move from the t-shirt into a full set of beautiful merchandise. It was always about selling quality and the simplicity of that, while focusing on the story of sustainability and transparency.” The brand experienced significant growth, particularly after investing in design and bringing on its first creative director around 2015, leading to a period of substantial advancement.
Navigating Market Shifts
The onset of the pandemic marked a turning point. “During the pandemic, though, shifts in the market and attitudes toward sustainability changed the business. We saw it in the data. Everlane was about sustainability, but it was also about transparency as a whole, and I think people still cared about that. But Everlane’s challenge was a lack of product-market fit.” By 2021, Preysman recognized the need for a leadership transition, stepping down as CEO while remaining on the board. However, after the departure of CEO Andrea O’Donnell, his influence diminished, prompting him to step away entirely. “At that time, I didn’t see the company heading in a way that reflected the original vision. It’s like parents with their children; sometimes you can’t tell them what to do,” he explains.
The Acquisition and a New Beginning
The finalization of the Shein deal on May 22nd came as a surprise. “On May 22, when the Shein deal finalized it was a shock; I found out 20 minutes before. I knew nothing about it, and I felt very disappointed. The idea that this would happen wasn’t something I ever imagined. They’re the opposite of what I wanted. It’s clearly ironic, and in some ways, it’s sort of like life is stranger than fiction. I felt let down by Everlane, but also like I let people down. I knew that what we built at Everlane came from a lot of heart and soul and created a movement. And yet at the same time, it felt like that movement had sort of dissipated in its own way. But then, seeing the kind of visceral [negative] reactions people had to this news gives some hope that many people still care. I realize Everlane gave people the idea that companies could do better. We weren’t perfect, and there were times when we definitely made mistakes, but that’s part of being human.”
Preysman believes that the core principles of ethical business are still relevant. “Today, the customer is looking for that hope again. The world has changed, and we’re in a period where capitalism is in full force. There isn’t quite the balance between capitalism and equity, and between capitalism and creativity.” He maintains his conviction that ethical business practices are viable: “I really believe it’s possible to be transparent, sustainable, and run a good business. The part about Everlane that wasn’t working was not the sustainability part. It was that the product wasn’t landing or resonating in the way that it needed to and was not marketed in the way that it needed to be. And that’s that.”
The current situation prompts reflection. “Now, it’s a little strange to see that it’s forever gone away into a different world. It’s one thing when it’s run by investors and a new management team, but it’s another when it’s owned by somebody else entirely. Over the weekend, after I let the news marinate, I sat there, I meditated, and I thought, ‘You know, what would be radical?’ What if we try to find a new way to do something like this again, but not as a company in the same way, but perhaps more of an experiment, a project, and see what comes of it.”
This introspection has led to a new venture. “So after learning this news, I decided to start over with stillradical.com, launching today. We’re bringing back the vision of Everlane but with a new take that meets the moment. The consumer today still wants honesty.”
Business Style Takeaway: The acquisition of Everlane by Shein underscores the complex interplay between market realities, investor pressures, and the enduring consumer desire for authenticity. Preysman’s relaunch with “Still Radical” signifies a potential recalibration of ethical direct-to-consumer models, challenging established norms and exploring innovative approaches to transparency in a competitive luxury landscape.
Source: : www.vogue.com