Bold Moves: Weaving Heritage and Creativity into a Global Fashion Brand, featuring Josie Cruz Natori

Key Concepts

• Cultural Identity as Strength: Josie Natori consistently emphasizes her Asian heritage and being a woman as assets, not disadvantages, in her career and business.
• Adaptability & Innovation: The Natori brand’s longevity is rooted in its ability to adapt to changing consumer preferences and market conditions, particularly the shift towards versatile clothing.
• Brand Building Through Strategic Investment: Natori’s initial investment in a Paris boutique, despite years of losses, proved crucial for elevating brand perception and securing key partnerships.
• Importance of Core Competencies: Focusing on design and marketing, rather than expanding into areas like retail operations, has been a key to Natori’s success.
• Navigating Global Challenges: The company has successfully navigated challenges like tariffs and supply chain disruptions through strategic adjustments and collaboration.

Josie Natori’s Entrepreneurial Journey & Brand Evolution

The fireside chat, hosted by Dan Wang and Lulu Chow Wang, detailed Josie Natori’s remarkable career path, from a childhood pianist to a Wall Street executive and ultimately, a successful fashion entrepreneur. The discussion, part of the Sir Gordon Wu Distinguished Speaker Forum and the Lulu C. Wang Asian Leadership Program at Columbia Business School, highlighted Natori’s unique perspective on navigating cultural identity, entrepreneurship, and a changing global market.

Early Career & Entrepreneurial Beginnings

Natori’s journey began unconventionally, transitioning from a musical prodigy to becoming the first female VP of investment banking at Merrill Lynch. She emphasized the serendipitous nature of her entry into the fashion industry, sparked by a suitcase of embroidered blouses she brought back from the Philippines. A Bloomingdale’s buyer suggested lengthening the blouses, leading to the accidental beginnings of the Natori Company. Natori underscored that she would have pursued her business even without financial reward, driven by a deep passion for the creative process. She noted her lack of a formal MBA was not a hindrance, attributing her success to a lack of “preconceived ideas.”

Embracing Cultural Identity & Challenging Stereotypes

A central theme throughout the conversation was Natori’s unwavering belief in the power of embracing her Asian heritage. She actively refuted the notion of being disadvantaged due to her background, stating, “I always said that my biggest asset is being a woman and second being an Asian.” Lulu Chow Wang reinforced this point, emphasizing the importance of self-belief and rejecting a “defeatist mentality.”

Brand Evolution & Adapting to Market Shifts

The Natori brand initially gained recognition for its lingerie, but Natori recognized a shift in consumer behavior. Consumers began seeking versatile clothing that could transition seamlessly between activities, moving away from distinct “daytime,” “evening,” and “sleep” wear categories. This prompted an expansion into ready-to-wear collections, reflecting a commitment to understanding and responding to evolving consumer needs. Interestingly, the durability of Natori products – with customers retaining items for decades – presents a unique challenge for driving repeat purchases, but also demonstrates strong brand loyalty.

International Expansion & Brand Positioning

Natori’s strategic approach to international expansion involved opening a boutique in Paris’s Place Vendome, despite incurring losses for 12 years. This seemingly counterintuitive move was a deliberate branding exercise, elevating the brand’s prestige and ultimately leading to partnerships with major US department stores like Bloomingdale’s and Bergdorf Goodman. This demonstrates a long-term vision focused on building brand equity.

Financing, Supply Chain & Operational Challenges

The Natori Company began with personal savings and initial orders totaling $500,000. While initially self-funded with family support, later growth required external financing, which Natori found challenging and undesirable due to bank constraints. More recently, the company has faced challenges navigating tariffs, particularly a 17% increase on goods from the Philippines (where 70% of production takes place) and disruptions from China (previously 30% of production). This necessitated margin adjustments and collaboration with retailers, and prompted a shift in production to Vietnam. An attempt to enter the outlet store market proved unsuccessful, reinforcing Natori’s belief in focusing on core competencies – design and marketing – rather than venturing into retail operations.

Design Philosophy & Empowering Women

Natori’s design philosophy centers around creating clothing that empowers and respects women. She believes femininity should be about enhancing, not degrading, and prioritizes a lifestyle concept that understands consumer needs. She views her business as being about “clothes,” not specifically lingerie, despite its initial success in that category. Her piano teacher’s lesson that “everything in your life connects” underscores the importance of recognizing how past experiences contribute to future success.

Conclusion

Josie Natori’s story is a testament to the power of embracing one’s cultural identity, adapting to market changes, and prioritizing passion and innovation. Her journey highlights the importance of strategic brand building, focusing on core competencies, and understanding the evolving needs of the consumer. The conversation underscored that success isn’t solely about financial gain, but about creating something meaningful and enduring that resonates with customers and empowers individuals.