Footwear marketer Steven Madden Ltd. has added a new twist to its online retail strategy. The company wants to sell directly to the consumer and to be the fulfillment partner for Madden products with all online retailers that sell the Madden brand.
To that end, the marketer has created Madden Direct. This new subsidiary will take charge of all company e-commerce operations. This includes orders from wholesale and business-to-business partners. Among its first clients are Nordstrom.com and Shop@AOL.
“It’s a new distribution channel for the wholesale business as well as direct to consumer via catalog and online,” said Rhonda J. Brown, previous president and chief operating officer at Steven Madden, New York. “So in essence, I’m actually conducting two types of business online at the same time, leveraging the existing [fulfillment] infrastructure.”
The new subsidiary will take advantage of Steve Madden’s existing fulfillment infrastructure. Additionally, it will seek new business from online retailers that want to maintain direct contact with customers but outsource the shipment of Madden products.
For instance, Nordstrom.com gets an order for a pair of Madden shoes from a customer. Right after the customer completes the transaction on the site, information is relayed to Madden Direct’s fulfillment center. In turn, Madden Direct picks, packs, and ships the order, all under the Nordstrom.com label.
In this case, Nordstrom.com gets the benefit of the sale without the risk of holding inventory, Brown said.
“Nordstrom gets the retail sale, and I bill Nordstrom at wholesale plus a service fee,” she said.
Additional Retail Sites on the Horizon?
For now, Nordstrom.com and Shop@AOL are the only two retail sites whose product orders are fulfilled by Madden. But Brown did say her company was in talks with online retailer shoebuy.com.
In addition to the fulfillment of Madden products for partnering online retailers, Madden Direct also will assume responsibility for its Web site, stevemadden.com. This will cover site design and interface, back-end systems, online marketing, customer service, and order fulfillment.
The site’s revenues last year were up 700 percent to $1.2 million. Plus, first-quarter sales for this year have reached $600,000, up 400 percent from the same period in 1999.
Another charge of the direct arm is stevies.com, a recently launched site geared to girls and preteen customers.
To underscore the new e-commerce strategy, the company has named Stuart Schwartz president of Madden Direct. Schwartz joined the parent company in August as vice president of business development in charge of the brand’s Internet efforts.
Site Traffic
Under Schwartz’s watch, traffic to the site recorded 80,000 unique monthly visitors. The marketer claims an 8.9 percent conversion rate — the percentage of shoppers who become buyers.
Besides footwear, the site sells pants, shoes, accessories, and sunglasses. This mirrors what is sold through Steve Madden stores and department stores and at footwear and apparel outlets.
For the moment, all focus within Steven Madden is on the new subsidiary and the revenue opportunities from e-commerce. Brown said her company’s aim is to become the fulfillment partner for all online marketers that retail the Steve Madden brand.
My instinct tells me that no one out there is thinking about how to leverage their online experience with the infrastructure that is already in existence, with the fulfillment inventory that already exists, and how to leverage that in another way,” Brown said.
About the Steve Madden Brand
Steve Madden is a well-known and influential fashion brand that has made a significant impact on the footwear and accessory industry. Founded by the eponymous designer, Steve Madden, the brand is synonymous with bold and trendy designs that cater to a diverse range of consumers. This article will delve into the history, evolution, products, and cultural significance of the Steve Madden brand.
History and Background
The Steve Madden brand was founded in 1990 by its namesake, Steve Madden, an entrepreneur with a passion for designing unique and fashionable footwear. The brand’s journey began with just $1,100 in capital and a small factory in Queens, New York. Plus, a vision to create distinctive shoes that would resonate with fashion-conscious individuals.
Madden’s initial focus was on women’s footwear, and his designs quickly gained attention for their edgy and trendsetting style. The brand’s commitment to creating high-quality shoes with a distinctive flair became its hallmark.
Evolution and Expansion
Steve Madden’s innovative approach to design and marketing helped the brand grow rapidly. By the mid-1990s, it had become a well-established name in the fashion industry. The brand’s expansion included the introduction of men’s and children’s footwear, as well as a wide range of accessories, including handbags and jewelry.
One of the defining moments in the brand’s history was its initial public offering (IPO) in 1993. This move allowed Steve Madden to raise capital for further expansion and solidify its presence in the fashion market. The company continued to grow through a combination of strategic acquisitions and collaborations.
Product Range
Steve Madden offers a diverse product range, including:
- Footwear: Steve Madden’s footwear collection includes an extensive array of styles. This includes from classic pumps and boots to trendy sneakers, sandals, and espadrilles. The brand’s shoes often feature bold patterns, unique materials, and eye-catching embellishments.
- Handbags: Steve Madden’s handbag collection includes a wide variety of styles, including totes, crossbody bags, clutches, and backpacks. These bags often mirror the brand’s footwear designs, featuring bold colors, textures, and trendy details.
- Accessories: In addition to shoes and handbags, the brand offers a range of accessories such as belts, scarves, hats, and jewelry. These accessories complement the brand’s footwear and handbag offerings.
- Men’s and Children’s Lines: Steve Madden expanded its product lines to include men’s and children’s footwear. This provided stylish options for individuals of all ages.
- Collaborations: The brand has collaborated with various designers and celebrities to create limited-edition collections. These collaborations have included partnerships with influencers like Winnie Harlow and fashion labels such as Disney.
Cultural Significance
The Steve Madden brand holds cultural significance for several reasons:
- Trendsetting Designs: Steve Madden is known for setting trends in the fashion industry. Its shoes and accessories often reflect the latest styles and cater to consumers looking for unique and fashionable options.
- Affordability and Accessibility: While offering trendy designs, Steve Madden also emphasizes affordability and accessibility. This approach has allowed the brand to reach a broad customer base.
- Iconic Styles: Some of the brand’s shoe designs have achieved iconic status, such as the “Troopa” combat boot and the “Sneaky” platform sneaker. These styles have become synonymous with Steve Madden’s aesthetic.
- Pop Culture References: Steve Madden has been referenced in popular culture, including in movies, TV shows, and songs. This recognition reflects the brand’s influence and appeal.
- Fashion Shows: The brand has participated in New York Fashion Week, showcasing its latest collections and reinforcing its position in the fashion world.
- Fashion Evolution: Steve Madden’s journey from a small Queens factory to a globally recognized brand reflects the entrepreneurial spirit and creativity that define American fashion.
- Inspiration to Aspiring Designers: Steve Madden’s success story has inspired many aspiring designers and entrepreneurs in the fashion industry, demonstrating that innovative ideas and hard work can lead to great achievements.
Corporate Responsibility
In addition to its fashion-forward approach, Steve Madden is committed to corporate responsibility and sustainability. The brand has implemented initiatives to reduce its environmental impact, including responsible sourcing and ethical manufacturing practices.
About the Creator – Steve Madden
Born on January 1, 1958, in Far Rockaway, Queens, New York, Steve Madden’s journey from a modest background to becoming a prominent fashion figure is a testament to his entrepreneurial spirit, creativity, and determination.
Early Life and Inspiration
Steve Madden’s upbringing was rooted in New York City, where he was exposed to a vibrant urban culture that would later influence his design aesthetic. As a young man, he developed a keen interest in fashion and was particularly drawn to the eclectic street style of the city.
After completing his education, Madden began his career in the footwear industry by working at various shoe stores and learning the ropes of the business. It was during this time that he developed a deep appreciation for the art of shoemaking and started to dream of creating his own line of shoes.
Personal Life
Steve Madden’s personal life has been marked by both triumphs and challenges. In 2001, he faced legal troubles related to securities fraud, resulting in a period of incarceration. However, he later returned to the fashion industry with renewed determination and continued to lead his eponymous brand.
Conclusion
The Steve Madden brand has left an indelible mark on the fashion industry with its trendsetting designs, accessibility, and commitment to innovation. Founded by an entrepreneur with a passion for footwear, the brand has grown to encompass a diverse range of products, including shoes, handbags, and accessories. Steve Madden’s cultural significance extends beyond its products, as it has become an icon in the fashion world, inspiring both designers and consumers alike. With its focus on style, affordability, and corporate responsibility, Steve Madden continues to be a prominent and influential name in the fashion industry.
Updated as of September 6, 2023.
Featured Image Credit: Unsplash
