Founded in 1918, New York & Company is an established player in the women’s apparel category that has undergone several transformations over the years. Before New York & Company met the Ise AI team, they were generating over $800 million in annual sales but were facing significant challenges with profit margins. They had recently emerged from bankruptcy and were acquired by the private equity firm Saadia Group. With a mandate to quickly increase sales and margins, the brand turned to Ise AI for a transformative solution.

The Challenge

New York & Company struggled with slow-moving inventory and had to rely heavily on substantial discounting to clear stock. This approach not only hurt their profit margins, but also diminished the brand's overall perception in the marketplace. Recognizing the urgent need for change, New York & Company’s executives partnered with Ise AI to implement a comprehensive strategy to revitalize the brand's marketing and sales.

Solution 1: AI Editorials for higher pricing power and sell through

Our first project was to upgrade New York & Company's existing studio shoots into high-quality editorial-style shoots. By utilizing Ise AI's proprietary Gen AI commerce photography technology, the team created stunning, aspirational visuals that helped customers visualize the brand’s products in complete outfits and elevated settings. This shift not only increased conversions, but also elevated the brand's perceived quality, allowing for greater pricing power.

The results of this transformation were remarkable. The styles showcased in the new editorial shoots quickly became the bestsellers of the season when compared to those that were not included in this initiative. Additionally, the brand saw a significant reduction in markdown rates, with discounting dropping from an alarming 80% to a more manageable 30%.

Solution 2: Increase efficiency and margins

The second project was to increase efficiency and margins, by using Ise's generative AI product photography solution to convert on-mannequin sample photos at the factory directly to studio and editorial shoots ready for the consumer.

In the past, the brand needed to ship samples from factories in Asia to a centralized photoshoot location in Austin, Texas. Photoshoots could not be completed until all samples arrived, which meant products could not go live on the website for weeks. In addition to long turnaround times, there were also costs associated with booking a photoshoot location, models, photographers, makeup artists, and stylists. 

Partnering with Ise AI, the brand was able to create photoshoots digitally end-to-end with their in-house team. Products are able to go live on the website the same day that samples are ready at the warehouse. 

Result: Measurable impact on P&L 

Ise AI and New York and Company's collaboration contributed to a substantial increase in profit margins from 10% to 40%.

The success of New York & Company's partnership with Ise AI underscores the power of innovative technology in revitalizing established fashion brands. By leveraging AI to create compelling visual content, New York & Company not only boosted sales but also significantly improved its bottom line, positioning itself for sustained success in a competitive market.

If you are a P&L owner at a fashion brand, do not hesitate to reach out to michelle@ise-ai.com to partner with us.