Nau is an interesting one. I’m a bit biased as I’m about to be diving into a really similar space myself and well they are sort of going to be competition. I went out to the Chicago store last summer and left with a mixed response. The clothes were pretty mediocre really, design seemed like outerwear trying to be urban, but ending up more student projectlike. Lots of details and odd seems for the sake of being a little different, not a little better. They certainly looked better online then in person. Fabrics also seemed to have been chosen based on being “environmental” rather then wearable. But that was the first season, so it’s hard to judge. I’ll check out this sample sale thing for sure and see how things have evolved.

The store itself was pretty vacant and very middle of the road, they are not going for fashion trendsetters here, more Banana Republic then Barney’s. The neighborhood they were in was damn boring, closest NY comparison is maybe that stretch of 5th avenue above 14th and below 23rd where all the mid level clothing chains have shops. The barcode scanners instead of labels is a bit gimmicky, but the ability to choose a charity at purchase was nice. The ship to home option was pretty nice as an out of town customer, but I’m curious as to how many people are going to prefer that route.

The online store is going to be a growing trend with clothing companies, but not for environmental reasons, the margins are just way higher when you cut out the middleman.

The most interesting thing with Nau is probably the fabric development they are pushing. But again some of the fabric companies are doing similar stuff anyway, Schoeller, Nikwax and the national merino orgs in NZ and Australia come to mind. There also are some smaller companies in this space that strike me as more interesting. Finistrerre, Rapha and Swrve all are building strong brands based on very similar principals, but without the $20 million or whatever that is behind Nau. Then again the fact that there is so much cash behind them is interesting in it’s own right.

Gonna check out where they are at that sample sale, but for now the verdict is better on paper (or blog) then in person. Be really curious to know some sales figures on them though…

Nau = Starbucks (in a best case scenario)

that’s the conclusion after visiting the sample sale. Or really a pop up shop, fully branded and absurdly staffed, loads of dudes in suits, full security, tons of computerized registers, (were they expecting a stampede?) and a handful of outnumbered customers. Most of whom, like me seemed to be there to scope out the brand not shop.

Clothing still is pretty disappointing in real life, looks way better on the web. From the scan of it the ‘made in china” labels seem to be multiplying too, although they were all overseas from the start anyway. I’m sure it’s sellable, not bad stuff, but it’s as much the Limited as it is ‘eco’. The irony is that they would have come off way better to new yorkers if they were in some 2nd floor loft with no branding like a real sample sale. Location was pretty ideal for trapping tourists though.

If anything I think this brand might be overcapitalized, they have all the eco clothing rhetoric down (although I don’t think they realize that made in vietnam or whereever looks better then made in china even if it doesn’t really mean anything.) Yet the shops are too glossy, slick and realized to really match up with the image. The niche they are hitting is real, but I think they might be too big to fit into it now. What that means in terms of sales is beyond my abilities to interpret. The image gap between reading their blog and visiting their shops is huge, which seems to spell a problem, but at the same time I could totally see them in the mall next to A&F and the Apple store, which is probably pretty profitable.

Have you looked up Nau recently? Go to the homepage and you will see a notice of their “winding down” of business operations. Looks like all that popularity was short lived and not able to sustain them as a business…

They were actually exceeding their own sales projections, the issue was finding enough venture capital to continue. They put up a pretty good fight given the current economic situation. I believe that if they had been able to open the ten-ish more stores planned for 2008, sales and growth would have been even higher. With only 5 locations plus an e-commerce site as of closing, it would be a challenge for any company to produce investor favorable results in the first year.

I have been to two of their stores and own several garments – and I only have good things to say. The designs were smart, sleek, and classic. They custom manufactured all of their synthetic fabrics made from renewable and recyclable materials. Most of the garments are made of recycled polyester, organic cotton, merino, and lambswools. The fits are also great. Having tried on most of the lines, the fits were almost all excellent. As for the comment above about the garments being made in China…

The reason why most apparel is manufactured in China, among other places – rather than the US, is because China has the best and most cost effective production. China’s apparel manufacturing facilities are much more sophisticated than those in the US, giving companies greater freedom in design. The garments produced overseas are some of the best quality out there. Nau’s website has a section called “grey matters” about issues surrounding their lines such as overseas manufacturing.

I was really sad to hear that they are winding down their business. The death of a brand wouldn’t normally phase me, but Nau was a brand I loved and admired. Hopefully they will be able to revive themselves in the future when economic conditions are more favorable.

They are selling the remaining product at 50% off through their online store. The five retail stores closed on Saturday, May 3rd immediately after the decision to wind down operations.

Wow, all the buzz but “winding down.” A classic pre-VC round press tour… When China can churn out commodity T’s that sell wholesale for less than $1 (big volume buys), does economics trump eco-brands and “made in U.S.A.” approaches? Nike & adidas operate huge factories in Vietnam and other locales in Asia. Nary a environmental angle in their apparel lines? But huge margins and steady sales.