PRINT THIS STORY:

CHANGE TEXT SIZE:

FASHIONABLY GREEN

Nau targets environmentalist shoppers with its eco-friendly apparel

By Jennifer Hopfinger

With sales of organic foods and fabrics surging, demand for forest-friendly furniture on the rise and the waiting lists for hybrid cars growing longer, it’s no surprise Vanity Fair magazine recently heralded “green as the new black” among “fashionistas.”

That is why new outdoor-apparel retailer Nau says this is the perfect time to open its doors. Nau (pronounced “now,” it means “welcome” in the language of New Zealand’s Maoris) is preparing to launch an “environmentally responsible” retail concept it says will satisfy the demands of socially conscious customers.

Nau says it will sell clothing made from organic and recycled fabrics and donate 5 percent of every sale to an environmental or humanitarian nonprofit organization of the customer’s choosing. Shoppers will be able to select from about a dozen charities. Nau will also work with an independent organization to audit the social and environmental practices of its manufacturers.

The company plans to begin selling apparel on its Web site, Nau.com, in January and expects to open its first four stores — in Chicago, Portland, Ore., Seattle and one other, so far unidentified, city — soon after.

Key to its business strategy is the blending of an online presence with brick-and-mortar stores. Nau has even trademarked the term “Webfronts” to describe its retail sites. On the surface, these Webfronts will appear to be like any other store: physical locations where shoppers can browse, try on garments, ask questions and purchase items. But the stores will feature computer kiosks to allow customers to research products and, if they choose, buy them online for home delivery at no charge. There will be a 10 percent discount on Internet purchases.

The online component is central to Nau’s business model. If purchases are made online, the stores can carry less inventory, thus reducing costs and, so the retailer asserts, reducing impact on the environment. Webfronts will require less square footage, about 2,000 square feet on average, cutting down on building materials and decreasing energy use.

The Webfronts will be placed in a variety of settings, says Miki Herman, Nau’s vice president of Webfronts, who is in charge of the company’s real estate and store development. “The Webfront concept works in any type of space — from street fronts to enclosed shopping malls,” Herman said. The chain will give those first four stores time to mature before it sets any long-term goal for growth, she says.

Nau is not the first apparel retailer to donate a percentage of sales to environmental causes, of course, nor is it the first to prefer organic materials. Outdoor-clothing maker Patagonia, for example, donates 1 percent of sales to environmental groups. And organic fabrics have become so popular that they are now mainstream; shoppers can find organic clothes in stores ranging from Barneys New York to Urban Outfitters. Even that archetype of American apparel — Levi’s — is going eco-friendly. The jeans maker had said in July that it would start selling organic jeans sometime this month.

Consumers are also making environmentally conscious purchasing decisions beyond what they wear, and companies are responding. Wal-Mart Stores is planning a big push into organic foods. The Home Depot and Ikea say they purchase only wood products that come from “responsibly managed” forests. And who has not heard about the frenzy for the Prius, Toyota’s gas-electric hybrid car? The automaker can’t seem to make them fast enough.

n fact, Patricia Pao, founder of Pao Principle, a New York City-based business consulting firm, says the interest in using less fuel provides the most telling insight into why consumers are becoming more concerned about the environment. “With gas prices through the roof and heating bills going up, environmental issues are directly hitting the pocketbooks of Americans,” Pao said.

Another reason Americans are jumping on the green bandwagon is that they are concerned about physical health, particularly as baby boomers age. “People are realizing that the food we ingest, the clothes we wear and the things we do to the air and water around us has a real effect on our health,” Pao said. “Until recently, green products had more appeal to younger people, but that appeal is moving up the demographic ladder.”

Interest in green products is here to stay, says Jocelyn Dimsey, executive vice president and general manager of design at Sterling Brands, a New York City-based brand strategy and design consulting firm. “This isn’t a short-term trend, but a cultural shift in values and attitudes,” Dimsey said. “September 11th forced people to reconsider what’s important and focus on community and family. And recent natural disasters like Katrina have made people aware of the power of nature.”

Dimsey says green issues are getting more attention than ever. Quality, style and price are other factors helping to boost sales of green products. “There used to be a perception that green meant uncomfortable or unstylish,” said Dimsey. “Consumers also had to pay a premium for it. But now organic has become associated with luxuriousness, and the prices are coming down.”

Nau’s product line will be competitively priced, says Ian Yolles, the retailer’s vice president of marketing. Items will range from $45 to $350, he says. The merchandise includes technical outdoor gear and casual sportswear for outdoor athletes and other active consumers as well as for those who simply appreciate Nau’s aesthetic appeal. The stores will carry only Nau brands. Yolles describes Nau apparel as classic and understated in style, and, most important, well crafted. Although its clothes are built to last, the company is working to develop recycling options for garments that customers may no longer want.

Green products and practices may be taking off in all corners of the business world, but Yolles says Nau is setting itself apart because of the breadth of its efforts, from its sales-percentage charitable donations to its emphasis on organic and recycled fabrics and materials to its environment-friendly Webfronts and so on. “The world doesn’t really need another technical apparel company,” he said. “But our undertaking is much more ambitious than that.” Nau’s headquarters are even located in a building that has Leadership in Energy and Environmental Design (LEED) certification and uses radiant heat and cooling, passive ventilation and recycled wood. So far the company consists of about three dozen employees who hail from some of the best-known firms in the apparel industry: Adidas, Cole Haan, Limited Brands, Nike, The North Face and Patagonia. The firm has raised $14 million in venture capital. “Many of us left secure, high-profile jobs to launch Nau,” Yolles said. “Our employees and our investors believe in our model.”

That faith is not misplaced, Pao says, though it may be tested. “Green retailing will face some challenges,” Pao said. “It is hard to change long-standing business practices. The great news is that more are jumping on the bandwagon as they are figuring out how to profitably execute a green strategy.”