Photo: Luciana Scarabello
I recently spoke with Luciana Scarabello, a fashion entrepreneur who is determined to succeed right here, in South Florida. She is the founder of her namesake fashion line Scarabello that features sexy party dresses. An Agrentina native and Miami Beach resident now, Luciana shares here how she has been growing her business steadily since 2007, step by step. Today she sells her line to over 100 stores, not only in South Florida and nationwide, but also in Argentina, Mexico, Canada, Japan, Australia and South Africa.
Irina: Hi, Luciana. Let's start with your background and how you arrived to this point.
Luciana: I'm originally from Buenos Aires. We moved with my family in the year 2000 to Boston, Massachusetts because my father was transfered there from work. While in Boston I went to school in Suffolk University where I graduated with a bachelor degree in Marketing and a Minor in Management.
I was drawn to business studies because my father had always been a business man but another side of me loved design and fashion, and that came from my mother's creative side. She taught me how to sew since I was a little girl but up to this point I wasn't sure if that was something I wanted to do for the rest of my life though I had a strong incline towards fashion. So, I decided to move to New York City to go to school in Parson's School of Design. I obtained there an associate degree in Fashion Merchandising and while going to school I did two internships: one in Ann Taylor and the other one in Armani Exchange.
While working for these two companies I realized that even though they were big players in the fashion industry they were too corporate for me simulating an executive office rather than a creative environment. After I completed my studies and my internships I flew to Miami to visit my parents [that was about 5 years ago].
The change in weather was great for me because I really don't like the cold and just decided to stay here in Miami for a while. At this point I had no plans.
Irina: Now, take us to the starting point of your fashion design company?
Luciana: After realizing that I did want to stay in Miami for a while I decided to explore the fashion industry in Miami. Unfortunately, there are not a lot of opportunities here work wise because most of the companies are either based in NY or in California.
I started working for a small boutique on Lincoln Road in Miami Beach to gain some experience in retail while I figured out my next move. I eventually went to a fabric store and with my credit card purchased some fabric. I made with that fabric two dresses and printed my hang tag at Kinkos to put it on the dresses. I then walked to a boutique here in Miami Beach because I knew the owner and asked him if I could put the dresses in on consignment.
He agreed and after a week he called me to tell me that he sold them and to please make more! With the money I earned from those dresses I made four dresses this time, and that has been the way I started, only with two dresses and growing in small steps.
To this day I have not yet taken any partners and have been financing the company with its own growth even though it is very hard when it comes to cash flow and this only allows you to take small steps.
Eventually, I will be looking at taking a partner but to take the company to a different level that I cant do by myself. I'm waiting for the economy to get back in track and for me to gain more experience in order to make as many mistakes now that I can afford it and not in the future when I might not be able to.
I have maintained the infrastructure of the company small as well due to the unstable economy and prefer to have variable costs associated with the product rather that fixed costs.
My father that has retired from his previous job runs the office and is in charge of all the logistics while I am in charge of the design and communication between the office and our contractors. These contractors we work with are in the area of distribution and in production as well, and their pay is based on how much product we produce and how much we sell.
I think this is a smart model to live by when things are unstable to ensure the survival of the company in its growing steps.
Irina: How did you finance your company?
Luciana: It all started with a $300 charge in my credit card! As I started to grow more and more I applied for a line of credit with the bank for $15,000. I have also in occasions run to my father for help when I needed money for production or for a show when I have cash flow issues due to late payments made by clients.
We will need financing to take the next big step. But I'm not just looking for a partner that can only provide capital but for someone that has the expertise and vision to take our line Scarabello to the next level. I have refused several offers waiting to find the right match.
Irina: What are your daily challenges?
Luciana: There are so many. I would have to divide the challenges in two different categories: design and business.
Regarding design its a challenge to offer a product that the consumer wants to purchase with all the competition out there. If I have a bad season because I wasn't inspired into making great designs or I didn't understand what my costumers want i can be out of business in a heartbeat. Its important to be unique, creative and the best out there to stay alive.
Besides the fact that we are selling a product based on its design, this is a business and it faces the same problems any other business could face. There seems to be always a problem with cash flow due to late payments by the clients. Logistics are also very important in trying to have the product ready and shipped in time.
In a larger scale I find that the biggest challenge we will have to take this company to the next level is economies of scale. It is very hard to compete with companies that are already producing millions of times more than you are and get their product manufactured 1/5 cheaper for this reason. Let's not forget about their big adverisitng and marketing budgets. It makes me feel like a small fish in a tank full of sharks!
Irina: What is your target market?
Luciana: My clients are small high end boutiques that are trendy and carry the latest labels. Their look is young and fashion forward. My final consumer are women in their 20's 30's that have a busy social lifestyle. They go to trendy restaurants, events, lounges, and nightclubs and are looking for something to wear that is unique and feminine yet edgy and modern.
Irina: What are your distribution channels?
Luciana: I'm currently working with "Allure showroom" that represents my line Scarabello in the United States. The idea is to eventually start working with other showrooms in different locations to increase our sales. I want to still keep this as a contractual agreement between two companies rather than invest the money in having an in house sales department.
Irina: Tell us more about your marketing efforts. Do you do anything special to build your brand and to get your name out there?
Luciana: Hiring a PR company is still too expensive for us to engage in. Social networking is an accessible way to get your name out there. We do a lot of viral marketing through these sort of websites. We also try to participate in any events we can locally to try to get the name out there. PR is very important for a fashion brand to mark its identity in the consumer's eyes. Eventually, we want to come up with a solid marketing strategy that will help us create brand awareness, but we will have to be patient for now.
Irina: Do you sell on line?
Luciana: We don't sell online but some of my clients do sell online. We have created a link from our website to those online shops so if a person goes to the Scarabello website wanting to purchase an item they are still able to do so through our clients.
Irina: How many hours a week you work?
Luciana: I make my own schedule so it really depends on how much work needs to be done. Usually it is pretty regular hours but right before deadlines I might be up working till 2 or 4 a.m trying to finish whatever needs to be finished.
Irina: Did you work with any fashion organizations in Miami?
Luciana: I have worked from time to time with The Fashion Group International and Funkshion Fashion Week in Miami Beach.
Irina: What would you say some key ingredients of your success so far?
Luciana: Determination, strong work ethics and believing in myself.
Irina: In conclusion, what would be your advice to others entrepreneurs?
Luciana: I think the smartest advice I can give to an entrepreneur is to start with the letter A. You see, we usually envision the big picture, what we want to be, where we want to get and that is usually the last letter of the alphabet. When we think like this we sometimes give up because the goal is too big and too difficult to reach. We should start small and set small objectives that will take us through the whole alphabet towards that last letter. Unfortunately, there are no shortcuts and only hard work and determination will take you to that final goal.
This blog is a part of my volunteer efforts to build a strong entrepreneurial community in South Florida and worldwide.
About me: I am Irina Patterson, was a Medical Doctor and tech PR executive in the past, My current passion is entrepreneurship. I'm a volunteer for the Silicon Valley-based Global Initiative 1M1M that offers free online guidance to entrepreneurs worldwide. Feel fee to ask your quesitons below in the comments.
Reading this really gave me some inspiration. My bestfriend and are studying fashion retail and merchandise in college now. It's our first year, and we both have the dream of having our own plus size clothing line. Excpet the only thing is, we didn't know where to start. So by reading this, I really have gotten inspired to design and get our names out there. Thank you!
Posted by: Ashlei | 01/25/2011 at 08:29 AM
Ashlei,
You are welcome, I encourage you to go for it.
You can also read this interview:http://www.sramanamitra.com/2010/05/25/the-1m1m-incubation-radar-la-grande-dame/
and ask me any questions.
Regards -- Irina
Posted by: Irina Patterson | 01/25/2011 at 10:02 AM