The Cloakroom: 'the UK to become our largest market'

Curated shopping is the latest trend to make the jump online, and the founders of the Cloakroom feel that their customized formula targeted at men will ensure they stand out from the crowd. Founded in 2013 by Kasper Brandi Petersen and Asbjørn Jørgensen, the duo moved to Amsterdam, the Netherlands to set up their business. Now after successfully setting up their personal shopping stop in Denmark, they have expanded their service to Belgium, Sweden and the UK. FashionUnited sat down to talk with Petersen about the Cloakrooms' successfully formula and their international expansion plans.

Where did the idea for the Cloakroom come from?

Petersen: “We first noticed the online personal shopping concept in the US and Asbjørn loved it. It saves so much time when it comes to shopping, something which I always postpone as much as possible haha! I got so excited about the idea straight away that we decided to introduce it to the European market.”

“We're creating a new job category that helps fashion lovers make a living out of their passion. Our personal shoppers are able to shop for other people and connect with their customers on Facebook all day. Brands want to work with them and their customers really appreciate them. For a lot of people, it is much more attractive than working in a store or a office. It is an amazing development for us to spearheading.”

You first launched the Cloakroom in March, 2013. How has the last year and half been for you?

“Hands down, it has been the most bizarre period of my life. Together with Asbjørn, I moved to the Netherlands and set up residence in a tiny apartment in Amsterdam. And it was from there that we started our company up. At one point we had one of those moments when we thought 'okay, the money has to start coming in now.' Then, about two months and half months after we sent out the first boxes, things started to move along really fast. In the mean time we have started working with brands like Hugo Boss, Scotch & Soda, Tiger of Sweden, Filippa K and Tommy Hilfiger.”

What makes the Cloakroom such a success among its customers?

“Traditional retail has failed, much like traditional sectors such as taxis and hotels. When an industry is failing to be innovate, there's always a 'rebel' like Uber, AirBnb or the Cloakroom to step in and make a change. I believe that we offer a service that takes care of everything our customer may need. All he needs to do is select his personal style via our online style guide and then wait for the personal shopper to contact him, who is individually matched to each customer. She will then call him and ask a series of questions which focus on the his individual personality, taste and lifestyle. The personal shopper is matched to the customer according to the online questionnaire, but she is not given the answers the customer filled in; she is starts off with a clean slate to get a proper feel for the customer's style and needs.”

“After the initial talk, she then sends a 'box' of clothing to the customer, which is usually worth a total of 1,000 pounds. Then it is up to the customer to decide which garments he chooses to keep and which he wishes to send back. The average customer keeps 4 articles of clothing worth 300 pounds per 'box.' The customer is asked to give feedback on the articles of clothing they send back, so their personal shopper can get a better feel and become more responsive to their needs.”

“We have noticed that the personal approach really resonates with our customers. Therefore we also ensure that each of our personal shoppers has a maximum of 500 clients in her portfolio. The bond which develops between customer and personal shopper is very intimate. Recently one of our personal shoppers celebrated her birthday and a number of her customers sent her well wishes and congratulations through Facebook, which highlights the closeness of the relationship.”

This fall you announced that the Cloakroom has received an investment of 1.2 million euros, funded by British investment vehicle Connect Ventures, Kees Koolen the director of Booking.com and Hein Pretorius. What do you plan to do with the funding?

“We plan to use our investment to take on new IT developers. We currently have four, but we aim to double that number. We once started with a CRM system, but since it was unable to provide all the options we needed for our platform we decided to build our own, new platform from scratch. As we continue to expand we need more programmers but so far it has proven difficult to find good programmers.”

You recently launched the Cloakroom in Belgium, Sweden and the UK. Why did you decide to enter these markets?

“Well, we expanded to Belgium, because the country is similar to the Netherlands. Many of our 'neighbors' already knew about us so there was a demand for our services there. In addition, being a Dutch company gave us extra confidence to launch in Belgium. Then Sweden was a logical choice for us after we expanded to Denmark. Plus Sweden is three times larger, so we will have a larger market to succeed in. In addition, online shopping is crazy in Sweden.”

“However, our decision to launch in the UK is slightly different. There are already a number of companies active in the UK that do what we do, but none of them are really as successful as we are in our home market. The largest competitor there is still a lot smaller than us, so we saw a gap in the market for us. We hope that the UK will become our largest market.”

When did you first launch in the UK?

“We first launched our UK site on November 1, so not too long ago. We usually use a six month pilot to test a market to see if it has high probability of success. During the first few months we start off slow and begin to build a loyal customer base. Then we look at how many orders we are taking in and if there is a substantial growth to continue the business. If all goes well, we open up a local office and showroom.”

“We are currently in the first stage of our launch in the UK and have two local personal shoppers working for us there. They were both trained in our main office in Amsterdam, in order to get a feel for the company and our service. However, we hope to open a local showroom in Shoreditch, London by the end of our first quarter so customers can get a feel for our services first hand and have up to 20 personal shoppers.”

What brands do you currently offer in the UK?

“One of the main labels we work with in the UK is Paul Smith. We also carry French Connection, HYMN, Ben Sherman and Hackett London. We are currently searching for new brands to partner with, but we are selective with what brands we offer. We only offer brands that are well known, not mass market labels but middle to higher end market brands. They need to have a premium appeal. We want to offer only the best, brands that are not readily available in every store.”

Is there a big difference between customer preferences in the countries you are active in?

“Yes, there is a big difference in styles throughout the countries. For example, men in Copenhagen prefer simple jeans, usually in dark blue or black, no fancy washes, with a slim or tapered fit. However, over in the Netherlands its the opposite, men prefer loose denim jeans paired with loud, glowing sneakers. The minimal Scandinavian look is not very popular with our Dutch clientèle.”

“In the UK, our customers tend to be very brand focused. They have specific tastes when it comes to what brands they want. Brand heritage is very important in the UK, whilst men in the Netherlands are more technical when it comes to trends and want to make sure their personal stylist is up to date. Each country has its own style and within each market there are different subcultures. So we ensure that we have different personal shoppers per country who understand the different tastes and styles and are able to effortlessly tap into them.”

“British men also tend to be straight to the point when it comes to shopping, they know what they want and have a busy lifestyle, so there is not much room for small talk. However, they also have more experience when it comes to working with a personal shopper or stylist, so they are less wary and more open to our service.”

Finally, what are your plans for the future?

“Well, we will hold a new round of investment during the first quarter of the new year and we aim to raise between 5 to 10 million euros. We are currently in discussion with a number of potential, foreign investors, but there isn't much more I can reveal about that at the moment.”

“We will relocate to a new head office in Amsterdam next month, on the Regulierstraat. Then we want to open our office in Sweden. Ultimately we want each country to have their own showroom and at least 10 employees within the next 24 months. Over the next five years we aim to have showrooms around the world in Asia, USA, South America and Europe. We want to establish co-working spaces, where our personal shoppers can work together. Ultimately we want to make it as easy as possible for our personal shoppers to do their work build up the largest personal shopping community in the world.”