Before gaining traction in major US department stores, Faherty received unsolicited interest from prestigious Japanese boutiques. This early international demand provided critical validation and accounted for 40% of their initial wholesale business.
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While VCs pushed direct-to-consumer, Faherty's founders blended wholesale, retail, and online sales. This diversified revenue, managed cash flow via wholesale factoring, and built brand presence in a way a pure-play DTC model couldn't.
Getting into one local Whole Foods wasn't just a sale; it was a key. Travis immediately leveraged that single, high-credibility placement to persuade other local retailers to carry his product. He understood that one prestigious "yes" acts as powerful social proof, creating a domino effect for distribution.
After years of steady growth, the brand launched a flannel-sweater hybrid that "evaporated" from shelves. The success of this single item gave them the confidence and clear signal needed to build a true direct-to-consumer business around it.
In 2015, Faherty made a counterintuitive marketing bet by launching a print catalog precisely when industry giants like J.Crew were discontinuing them. This classic, tangible medium cut through the digital noise and became their first successful paid media channel.
While surrounded by high-growth, venture-backed DTC brands, the Faherty founders learned from those same founders that their slower, more controlled growth was an advantage. This perspective reinforced their decision to avoid the "grow at all costs" pressure of VC funding.
Facing limited capital, Faherty leaned on wholesale. They used factoring—getting advances on purchase orders from established retailers like Nordstrom—to manage cash flow and fund production, a capital-efficient alternative to dilutive venture rounds.
Mike Faherty's deep engagement with overseas factories while at Ralph Lauren built strong personal relationships. These factory owners later became his new brand's first investors and manufacturing partners, a crucial advantage for a startup.
For Numi's novel undershirts, a major challenge was educating the market on the problem and solution. When competitors emerged, they didn't just steal market share; they helped validate the category and shoulder the burden of customer education, ultimately expanding the total addressable market.
To compete in department stores, Alex Faherty personally visited all 10 initial Nordstrom locations. He told the brand story directly to salespeople, recognizing they were the ultimate gatekeepers to customers and their buy-in paid long-term dividends.
Placing products in non-traditional venues like hotels or airports serves as a powerful discovery and sampling mechanism. This builds brand familiarity and trial, creating a flywheel effect where customers later recognize and purchase the product in traditional retail stores, boosting sales.
