Going beyond gender binaries might not mean much to the average shopper. But to those who have frequented The Phluid Project’s store in New York City, or its online site, it means everything.
CEO and founder Rob Smith entered the gender-free space just two years ago when he opened his first (and only) store in NoHo, New York. For him, retail was a way of having a conversation about a marginalized section of society—and it has brought him a fiercely loyal following from the LGBTQ, and wider, communities.
Experiential retail—as touted by many large corporations today—was central to The Phluid Project from the moment the 6,000 square foot shop swung open its doors in March 2018. The difference was that its concept brought more authentic and meaningful experiences to its users.
Smith tells Forbes.com: “We launched without me really knowing it was the world’s first gender-free store. My friends in retail said I was crazy to open it, but I wanted to get to know the customer—and to run events. You can avoid something online but you can’t avoid a physical presence. It was about opening people’s minds.”
Analytics and data aren’t everything
The Macy’s veteran of more than twenty years and a board member of Steve Madden believes the retail business model is broken. “Physical stores can continue to exist if they are more than just about selling. For me it wasn’t about the clothes but about a community space where people could gather—and not just for Instagram moments either. I’m old fashioned and I like to get to know my customers in person and by name, not just look at analytics and data. After two years I can tell you their individual stories.”
The community idea—or perhaps the specific community Smith was targeting—did not appeal to investors. “I did it solo because people didn’t get it,” he explains. Today, in the wake of Covid-19 there has been a revival in the notion of safety and a cooperative spirit so attitudes may be changing. XpresSpa turning its attention to airport employee Covid-19 testing is a good example.
In NoHo, The Phluid Project was selling fashion lines—accessibly priced with T-shirts starting at $35 going up to more than $100 for partner brand collections. But one-third of the space was reserved for events, and some 250 took place on the premises in just under two years.
A different mood this Pride
The physical store built awareness for the brand and was the springboard for The Phluid Project website. It launched in May 2018 but did not really take off until the company tied up with Shopify last June 2019.
That surge was helped by the brand developing product for WorldPride in New York last summer. “It was an unreal moment for sales so we can’t compare that with this year. But I would say we’re holding our own right now,” Smith says. “The beginning of 2020 was good but from mid-March things came to a screeching halt. People just panicked—they weren’t thinking about fashion but about food and jobs.”
Added to that was the overnight resurgence of the Black Lives Matter movement following the death of George Floyd on May 25. “Pride activity never really kicked off this year because of Black Lives Matter. We were respectful and didn’t want to take away their momentum or visibility,” explains Smith. “Last year was a very different story: we were beating the drum starting in April.”
He is keen not to divert attention because one of his personal aims rests within the black community. “The group that I have always spent most time on is the intersectionality between being black and being queer. I see this community as the most under-represented and the most in need of lifting. That’s been the focus from the day I started. We’re dedicating 20% of all of our sales from May to July to organizations and people who are trans, non-binary black and brown,” he says.
Shockingly, the average life expectancy for a transgender woman of color is 35 “primarily as a result of violence” according to the University of North Carolina. Typical life expectancy across the entire U.S. population is more than double that at 78.6 years.
Smith says: “They will be murdered, they will die of a drugs overdose, they’ll die the most horrific deaths. They are painfully under-represented so that’s where I like to lean in and spend time.”
Another connected campaign, just launched, comes from a collaboration with organic tampon and pad maker, This is L., about what periods mean to people with different gender identities. By shining a spotlight on these rarely-discussed topics, The Phluid Project continues to win the trust of directly-affected communities, as well as a wider public that is sympathetic to these issues.
Online reach and a future in pop-ups
Smith admits the NoHo store never broke even before he decided to close it. Last week he vacated the premises. “I lost money but I built a brand,” he says. “Without a physical store I don’t think The Phluid Project would have got as much attention. It was on a very busy street and people got to know about it internationally. The goal was to make a stand. I didn’t spend any money on marketing; I spent it on events and in that process I established a deep relationship and trust with the consumer.”
Smith is now in the process of taking his next steps to spread the gender-free word, first with the website. He is raising the working capital needed to build out the site to be more like a community center just like the store was. “I can reach a whole lot more people that way,” he says, adding: “In hindsight, with Covid-19 hurting retail, closing the Broadway store was the best thing I could have done. Retail stores will continue to suffer so I’m putting all my energy into e-commerce.”
Moving into 2021 Smith is convinced there is an opportunity to connect people with The Phluid Project through physical retail: “in-store shops in department stores using pop-ups that we create ourselves”.
His plan is to show up in towns that aren’t a typical target. He cites the U.S. south—safe bastions like Charlotte and Atlanta, but also some conservative cities. “I’d be happy if there were protesters outside,” he says. Internationally he has an eye on London and urban sprawls in Asia like Seoul and Tokyo.
Adding diversified revenue streams
Fashion retail is not The Phluid Project’s only revenue generator. A crucial other source is consultancy work with companies that are launching, or plan to launch, products in the gender-neutral space. “They are mainly retailers and consumer brands and I help them understand the community, the language, and how to get the message across. We also run a certification process called Get Phluid where we train people within these companies,” Smith says.
Product categories are also being expanded. Just before the holidays, the brand launched three fragrances from a collection of five, with the final two debuting next month. Made by Edge Beauty, a company started a year ago by former chief marketing officer at Coty, Stephen Mormoris, one of the line-up called Transcend is a finalist as fragrance of the year in the 2020 awards from The Fragrance Foundation.
The two-tone oil and water scents transform into a moisturizing emulsion when shaken and are being sold on The Phluid Project’s own site, as well as with Sephora and Ulta according to Smith.
As well as fragrance, Smith is looking at other new categories. “Shoes is the next one, then beauty and then perhaps swimwear,” he says. “We are also exploring eco-friendly products and looking to build more collaborations and partnerships with brands that will help to spread our message.
Activism and making collaborations count
The Phluid Project has already built multiple partnerships with other fashion brands “where it makes sense”, It has tied up with Champion, Fila, Nicopanda, and non-profits like Born This Way Foundation and Planned Parenthood.
The latest collaboration— tied to Pride for the second year running—is with Happy Socks, a brand that has been expanding globally in all channels including travel retail. The range features six new designs with Pride-infused rainbow colorways.
“So far the collection is not listed with any travel retailers,” a Happy Sock spokesperson tells Forbes.com. “We usually focus on our core assortment of seasonal bestsellers. But I am sure it would sell in the channel. Since buying departments are working on reduced hours and hesitant to list anything new at the moment, this could be something for next year.” Smith is keen on that idea: “Airport shopping can reach so many people we might otherwise not get access to.”
But before going down that mainstream route, Smith is focusing on his four pillars of fashion, community, activism and education. He has noticed that among existing lines, the more ‘out there’ T-shirt lines such as Trans Lives Matter, Protect Trans Kids, and Marsha P. Johnson (an outspoken gay rights advocate and prominent figure in the 1969 Stonewall Riots), have been selling out.
“There’s definitely a sense of activism which is evident from our sales. This year is not about light, fluffy and sweet. We’ve made adjustments accordingly and moved further into that space,” says Smith.
Yesterday was the 50th anniversary of the first Gay Pride March, yet the first ever National Trans Visibility March in Washington, D.C., only took place a year ago. Perceptions of gender are changing, but slowly. She/her, he/him, they/them personal pronouns are now popping up, not just in Generation Z chat rooms, but on business social networking sites like LinkedIn as more individuals who have changed gender feel confident enough to express themselves openly.
For Smith, these advances are what his fashion business is about, and in the post-lockdown world of retail, bona fide values and trusted relationships, like those he has nurtured, are becoming more important. “It’s never been about the dollars and cents; it’s about authenticity and doing the right thing. People will look back and remember—it’s a long game.”