Theory chief executive Andrew Rosen sits on a couch in his showroom, holding the label's "T-Bar" replica handbags in his lap. The oblong shoulder bag, rendered in smooth calf leather, features an elegantly topstitched "T" across the body. That detail is incorporated into several of the styles that comprise the first delivery of Theory's first full-fledged handbag collection, which goes on sale this August in Theory stores and on http://www.handbagsreview.co.uk.
While approximately 50 percent of the Fast Retailing-owned company's global revenue comes from wholesale partners, and 70 percent of its US revenue is generated by wholesale, Rosen has adopted a different strategy for the launch of Theory's new accessories: a focus on direct-to-consumer distribution.
"As we continue to build our direct-to-consumer platform, not only in the US but around the world, we need to add to the lifestyle of Theory," he says. "Accessories are clearly an important opportunity in that regard. I want to create more emotion in our michael kors replica stores, more energy in our stores, and this gives us the permission and ability to do that," he continues. "The retail environment too has to be more curated. This allows me to do more business in the same square footage without adding more cheap evening dresses."
When asked which of the new bags he predicts will be a runaway hit with customers, Rosen points to the "T-Bar" and says: "This one." Indeed, it's this kind of instinct, along with his insight into the current market, that is driving Theory's first significant push into bags.