Citizens of Humanity Expands into Menswear: A Strategic Move for Growth

Table of Contents

1. Key Highlights:
2. Introduction
3. The Shift Toward Menswear
4. Diverse Offerings: A Closer Look
5. Retail Strategies and Expansion Plans
6. The Importance of Fabric Stories
7. Lessons from the Women’s Market
8. Competitive Landscape and Future Outlook
9. Conclusion
10. FAQ

Key Highlights:

• Citizens of Humanity, a prominent player in the premium denim market, is focusing on expanding its menswear offerings, which currently represent just 5% of overall sales.
• The company is seeing significant growth in its Agolde brand, with sales doubling month-over-month, as it targets a younger, fashion-forward demographic.
• High-quality fabrics, including cashmere denim, are central to the brand's strategy, with plans to broaden the men's category to include more versatile apparel.

Introduction

The menswear segment of the fashion industry has emerged as a fertile ground for growth, and Citizens of Humanity, a Los Angeles-based premium denim brand, is poised to capitalize on this trend. Under the leadership of CEO Amy Williams, the company is actively investing in its menswear offerings to better cater to a demographic that values quality and versatility. With an impressive lineage in women's fashion, Citizens of Humanity is now strategically shifting its focus to men's apparel, recognizing the untapped potential that lies within this sector.

Founded in 2003, Citizens of Humanity initially carved its niche in the premium denim market, quickly establishing itself as a leader in women's fashion. The brand has expanded its offerings over the years to include a wide range of products, from embroidered tops to maternity wear. However, despite having a menswear line since inception, it has historically underperformed, contributing a mere 5% to overall sales. Williams and her team are determined to change this narrative by enhancing both the quality and variety of men’s products offered.

The Shift Toward Menswear

Over the past two years, Citizens of Humanity has intensified its focus on menswear, believing it to be a significant opportunity for their brand. Williams describes the Citizens label as a “quiet, luxurious” option that prioritizes quality and versatility, appealing to men aged 30 and older who are willing to invest in timeless wardrobe staples. Conversely, the Agolde brand, which launched its men's line about a year and a half ago, caters to a younger, trend-conscious audience seeking bold fashion statements.

With Citizens being four times the size of Agolde, the latter's rapid growth—dubbed as experiencing monthly sales increases of over 100%—indicates a shifting consumer preference towards more fashion-forward menswear. Retailers such as Mr Porter and Ssense feature Agolde, while Citizens is available at more traditional outlets like Bloomingdale’s and Selfridges, which resonate with a classic men’s customer base.

Diverse Offerings: A Closer Look

Denim remains the cornerstone of both Citizens and Agolde. However, the companies are diversifying their product lines to include more than just denim offerings. According to Williams, Agolde is particularly focused on fashion bottoms, presenting a variety of styles from ‘80s-inspired fits to knits. Currently, 70% of Agolde's business revolves around bottoms, while 30% is allocated to tops.

In comparison, the Citizens brand dedicates an even higher percentage—85%—of its sales to bottoms, showcasing a robust focus on both denim and alternative fabrics. These offerings span various materials, including canvas, linen, and sateen, catering to a broad spectrum of style preferences and occasions.

A standout innovation from the brand is their cashmere denim, launched last year. This unique fabric, sourced from Italy and Japan, is manufactured in Turkey and positioned at a higher price point than traditional denim, retailing between $258 to $278 compared to a standard denim jean's average of $198 to $228. This premium pricing reflects the brand's commitment to quality and its strategy of catering to a customer willing to invest in high-end fashion.

Retail Strategies and Expansion Plans

Currently, Citizens of Humanity operates a single retail store in Aspen, Colorado, a location chosen for its affluent customer base. Williams sees potential for expanding the retail footprint in select markets, emphasizing the importance of finding the right locations that align with the brand's financial goals.

Despite the limited number of physical stores, the company has been successful in its direct-to-consumer channels, where menswear accounts for about 40% of business. This success has prompted plans to expand product categories to include polo shirts, thermals, and outerwear, ensuring a comprehensive offering that meets diverse consumer demands.

In the wholesale arena, the company is actively pursuing partnerships with both department stores and specialty retailers, which Williams identifies as critical to their growth strategy. By enhancing the in-store experience through events, pop-ups, and trunk shows, Citizens of Humanity aims to deepen its relationships with retail partners and better serve the menswear market.

The Importance of Fabric Stories

A significant element of Citizens of Humanity's strategy is the emphasis on storytelling around their fabrics. Williams notes that customers are increasingly drawn to brands that offer compelling narratives about their materials and production processes. This approach not only enhances the perceived value of the products but also helps establish a deeper connection with the customer.

The use of cashmere denim exemplifies this strategy. By introducing such a unique fabric, the brand not only differentiates itself from competitors but also aligns with a growing consumer trend that favors quality over quantity. This focus on fabric innovation is anticipated to play a crucial role in maintaining momentum as Citizens of Humanity expands its menswear line.

Lessons from the Women’s Market

The success of Citizens of Humanity in the women's sector has provided valuable insights that the brand is now applying to menswear. Williams believes the industry is shifting away from being solely a “denim destination,” with consumers increasingly interested in full outfits that reflect their personal style. This shift underscores the importance of offering a well-rounded collection that allows customers to curate their looks from head to toe.

The company is keenly aware of the evolving landscape of men’s fashion, and the lessons learned from their women’s division are informing their approach. By creating a cohesive collection that includes a variety of apparel, Citizens aims to capture the attention of a broader audience and enhance customer loyalty.

Competitive Landscape and Future Outlook

As Citizens of Humanity ventures deeper into menswear, it faces competition from established brands and emerging designers alike. The menswear market is vibrant and diverse, with consumer preferences continually evolving. To navigate this competitive landscape successfully, the company will need to remain agile and responsive to market trends while staying true to its core values of quality and craftsmanship.

Looking ahead, Williams envisions a future where Citizens of Humanity strengthens its presence in menswear through both brick-and-mortar expansion and enhanced online offerings. The company plans to showcase its collections at industry events, such as the Chicago Collective, which serves as a pivotal platform for engaging with key retailers and expanding its network within the men's specialty market.

Conclusion

The strategic expansion into menswear represents a pivotal moment for Citizens of Humanity. With a strong foundation built on quality and a commitment to innovation, the brand is well-positioned to capture a larger share of the growing menswear market. As it continues to evolve and adapt to consumer demands, the focus on versatile, high-quality offerings will be essential in building a loyal customer base and driving long-term growth.

FAQ

What types of menswear does Citizens of Humanity offer?
Citizens of Humanity offers a range of menswear, including denim, casual wear, polo shirts, and outerwear, with a strong focus on high-quality fabrics.

How has the Agolde brand performed in menswear?
Agolde has experienced rapid growth in menswear, with sales reportedly doubling every month since its introduction to the male demographic about 18 months ago.

What is cashmere denim, and why is it significant?
Cashmere denim is a premium fabric that combines the softness of cashmere with the durability of denim. It is significant due to its unique quality and higher price point, reflecting the brand's commitment to offering luxurious products.

What are the company's future plans for retail expansion?
Citizens of Humanity plans to open select stores in additional markets while focusing on enhancing its wholesale presence through partnerships with department and specialty stores.

How does Citizens of Humanity differentiate itself from competitors?
The company differentiates itself through a strong emphasis on fabric innovation, storytelling around its materials, and a commitment to quality craftsmanship in its product offerings.