Adika Pops Up in SoHo

WWD Digital Daily - - News - BY LISA LOCKWOOD

Adika, a pub­licly traded Is­raeli e-com­merce busi­ness cater­ing to Gen­er­a­tion Z, has landed in the U.S.

The web site, which has 600,000 unique vis­i­tors a month, will open a pop-up shop to­day at 508 Broad­way in SoHo, on the same block as Bloomingda­le’s, MAC and Al­lSaints.

Dedy Schwartzbe­rg, chief ex­ec­u­tive of­fi­cer of Adika, was in New York Tues­day dis­cussing the com­pany’s plans to cul­ti­vate the U.S. mar­ket. The pop-up, which will stay open for three months, fol­lows a strat­egy Schwartzbe­rg em­barked on in Is­rael where he opened eight pop-up stores through­out the coun­try which even­tu­ally be­came per­ma­nent lo­ca­tions.

“We didn’t want our clients to think it was a re­tail com­pany,” said Schwartzbe­rg, who founded the e-com­merce busi­ness in Tel Aviv, Is­rael, in 2012. He noted that 75 per­cent of their or­ders are from mo­bile, and 85 per­cent of their cus­tomers who go to their web site come from their mo­bile site. “The stores are like the legs of the on­line,” he said.

Schwartzbe­rg said that he’s tar­get­ing a young woman be­tween the ages of 15 and 25, “but it’s not by age, it’s be­hav­ior.” He caters to a young woman look­ing for trends and who wants to be sexy and cool. Schwartzbe­rg said he is of­ten con­sid­ered “the sexy sis­ter of Brandy Melville.” Ev­ery­thing is made in China (where he’s now pay­ing 40 per­cent in tar­iffs), but he says he’s not rais­ing prices.

The com­pany’s big­gest as­sets, he said, are twofold. Ev­ery­thing is de­vel­oped in-house and they pro­duce fast fash­ion. While he ad­mits he’s not a fash­ion de­signer, he said that if Gigi Ha­did wears some­thing red on In­sta­gram, his cus­tomers want it now. He can de­velop a new prod­uct in 10 days and have it avail­able on the web site or sell­ing floor the next month. He said it’s a four-week process from scratch to sales floor or the home page.

Schwartzbe­rg said he de­liv­ers fresh prod­ucts every sin­gle month.

In the SoHo shop — where pink is the dom­i­nant color as far as decor — he is of­fer­ing cus­tomers 30 per­cent off every pur­chase in the next three months if they go to the web site and put in their e-mail. He an­tic­i­pates the av­er­age price point will be be­tween $25 and $30, and an­tic­i­pates best­sellers will be the over­size hood­ies, the leop­ard looks, tie-dyed sweat­shirts, denim items and streetwear.

The Is­raeli e-com­merce site’s pop-up shop is on the same block as Bloomingda­le’s, MAC and Al­lSaints.

Over­all, the store’s mer­chan­dise as­sort­ment, which spans cloth­ing, shoes, bags, ac­ces­sories, phone cases, pass­port cov­ers and dog ac­ces­sories, re­tails from $3 to $80, be­fore the 30 per­cent dis­count.

Cus­tomers will be greeted by a sign that says, “Hello NYC,” as they en­ter the 1,500-square-foot store. The space has four to five dress­ing rooms.

Right now, Is­rael is its largest mar­ket, fol­lowed by the U.S., Eng­land and Spain. In the U.S., Los An­ge­les is its top mar­ket, fol­lowed by New York and Austin. If the pop-up is suc­cess­ful, which he is very hope­ful about, Schwartzbe­rg in­tends to make it a per­ma­nent lo­ca­tion and will then open pop-ups in L.A. and Austin.

Schwartzbe­rg said that once he started open­ing stores in Is­rael, the com­pany’s re­turn rate went from 25 per­cent to 10 per­cent. He said now the cus­tomer can pick up in stores, re­turn it in stores, try it on, and if it doesn’t fit, can switch it for some­thing else.

Asked if he in­tends to of­fer men’s wear even­tu­ally, Schwartzbe­rg said, “I want to sell. I don’t want to waste time.” So that would be a no.

Schwartzbe­rg said one of his im­me­di­ate goals is to start whole­sal­ing his col­lec­tion (and that’s why he’s putting down some roots in New York) and he’s cur­rently in dis­cus­sions with a ma­jor re­tailer.

Dedy Schwartzbe­rg and his new Adika pop-up shop at 508 Broad­way in New York.

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