It's a sweltering, summer afternoon and Manhattan is under grips of a heatstroke; iced-coffee at Amaranth with online retail princess Stephanie Phair is an irresistible invitation. The new face of discount shopping begins with Phair, an elegant blonde in white jeans and simple tee nestled coolly at the chic Fifth Avenue eatery. An oversized, Cartier Balon Bleu dangles from her delicate wrist, a gift from the acclaimed Net-A-Porter's Natalie Massanet, complete with a personalized inscription. With over a million unique visitors monthly and a new site design to match the face of its discerning clientele, The Outnet is no longer merely Net-A-Porter's discount sister site, but a giant force in its own right dominating the internet's retail market. Business of Fashion reports The Outnet's annual turnover at an estimated $50 million, and the unaffected Phair shares, "The new design reflects our customer. We had initially assumed online discount shopping attracted a young clientele looking for a great bargain. . . what we have discovered is that our customer is smart, fashion savvy, with an annual household income exceeding $200,000. They don't just want a great price - they want Alaïa, Célin, Balmain, and Christian Louboutin." The UK based company has made that dream a reality, and Phair is the visionary who made it happen. Launched in 2009, the site has grown at a rate of 90 percent each year with the US currently topping its market.
"We have over 250 brands and offer designer women's apparel and accessories at up to a 70% discount. And a new iphone app, "Style Cred," which allows users to create and share looks with friends."
The unaffected Phair leans over the table, grins, and adds, "You can earn points which translate to store credit on our site. Share looks on Facebook and Twitter, and become the ultimate fashion stylist! It's synced with our website's 'Just In' latest product arrivals, which is updated every Monday, Tuesday and Thursday."
It's free. Another unexpected concept in the world of luxury retail.
"The internet is democratic and accessible, which I love," Phair continues, "You can shop around the clock. And the leaders are often mere kids who have grown up amidst the creation and rise of this incredible space. I find everything about it fascinating."
How did Phair take a new site and create such a staggering business and reputation, separate of Net-A-Porter?
"Well, having Net-A-Porter's backing was invaluable," she acknowledges, "The Outnet was a start-up, but within an established company. But if I had to pick one thing, it would be our editorial point of view. It defines us. We provide the full-price merchandising experience at a discounted rate. We don't just put up a label because they have overstock and are offering merchandise at cheap prices. Liquidation is not our game. We are very cautious. Trends do not dictate us. The Outnet's editorial team carefully consider each product that is pitched to us and we place a premium on selecting the right merchandise versus offering a mass quantity of bargain merchandise. Our customers turn to us because we don't just offer great prices - if merchandise is on our site, it's because we love it. It's not just about uploading next season's trends. It's also about paving new paths - suggesting new looks and pieces that challenge, suggest and surprise. If you want to know what is available for the season, you can go to a department store. Why do consumers turn to a magazine like Vogue? For that edited lens. The Outnet does the same for the discount luxury world. "
A background in marketing and public relations at Vogue - at the time of the CFDA/Vogue fashion fund launch and The Devil Wears Prada fever - and as creative director for Issey Miyake during which she spearheaded the public relations effort for monthly, co-branded in-store events at its Tribeca location with global titans Sony, Steinway, Moet-Hennessy and beyond anchors her selective vision for The Outnet. An honors BA from Oxford University in Philosophy, Politics and Economics come into play as well - Phair laughs gamely as I suggest it's an essential degree if you want to be a power player in the social media realm.
"Yes, that is true. Philosophy, politics, and economics all come into play. And great relationships with bloggers - a company must never underestimate the importance of online relationships."
How did The Outnet attract bloggers?
"One very successful campaign was our Dress Up With the Outnet. We held a professional editorial shoot in our office, and invited select bloggers to direct and star. These kind of cross-overs were instrumental in getting our site's name and brand 'out there.' To approach the internet with the mindset that you can do it on your own is naïve. We are extremely grateful to the bloggers who have supported us, and always cognizant of their role in The Outnet's growth."
I cannot resist asking Stephanie which blog she loves. "Manrepeller comes to mind immediately," she muses, "I just love it." As per fashion labels she personally adores, it's all about simplicity and clean lines. "Celine. Narciso Rodriguez. Michael Kors. Luxury simplified. Never fussy."
What's next?
"A baby," the mother-to-be confides, "In December. AG makes the best maternity jeans! US offices. And well-edited expansion. The online world, like fashion, is constantly creating and offering new, enticing products."
She pauses thoughtfully.
"Novelty for the sake of novelty, however, does not merit attention. We're constantly wading through the waters of innovation in search of providing the best of what's out there at the best price. Discount can be a scary word for a luxury brand. Earning their trust is a responsibility The Outnet does not bear lightly."
Edited growth and a measured approach have been the secrets to Stephanie Phair's success. And despite online domination in her sector, the finish line is still far from sight. When the playing field is the worldwide internet and today's trailblazers can just as easily become tomorrow's forgotten url, Phair's dedication to continued excellence anchors The Outnet firmly in untraversed waters.