The Row and Its Journey to Becoming the Perfect Symbol of ‘Quiet Luxury

Over two decades of dedication, The Row, founded by the Olsen twins, has gradually built its own ’empire’ and emerged as a new icon, redefining the concept of quiet luxury in fashion.

“The Row” – a name that exudes lightness and mystery, inspired by Savile Row. This heritage street, located in the Mayfair district within the City of Westminster in central London, is renowned for its tradition of world-class bespoke tailoring. Perhaps this served as the guiding principle for Mary-Kate and Ashley Olsen – Hollywood’s most powerful twin sisters and the founders of the brand – as they set out to create their own fashion empire.

THE ROW – EXCLUSIVE LUXURY WRAPPED IN HUMILITY

Starting with a single rack of T-shirts and leather leggings, satin pieces, and cashmere wool dresses during fashion week in a Manhattan apartment, the talented twin sisters confidently priced a seemingly simple T-shirt, crafted from premium materials with impeccable stitching, at $200. This sparked significant debate within the fashion community at the time, as the industry was dominated by the extravagant maximalism trend with bold patterns and designs. Nearly two decades later, those two seemingly basic and uninspired items became the foundational stones of one of the most successful American luxury brands of the decade.

Not following any fashion trends, avoiding logo-heavy designs, and refraining from loud, attention-grabbing promotions, The Row quietly delivers designs that exude “the scent of money” without overt displays of prestige. The brand’s fashion is so understated that only those who truly love fashion, possess genuine taste, are cultured, and are truly successful can perceive the exquisite allure hidden behind its simple appearance.

Mary-Kate and Ashley Olsen are not just creating expensive minimalist pieces; they aim to build a wardrobe that embodies privacy, humility, and a lifestyle where clothing is the sole medium through which they convey their mission. While other luxury brands engage in flashy campaigns, splashing massive billboards across prestigious streets or competing in extravagant spending to appoint brand ambassadors from regional to global levels, The Row has chosen the quietest yet most effective approach to promotion. True to the ethos of “quiet luxury”: “If you know, you know.”

THE MARGAUX BAG – THE “HOLY GRAIL” OF QUIET LUXURY

Alongside its understated yet expensive clothing, the remarkable success of The Row today can also be attributed to the Margaux bag. This seemingly simple bag, offered in neutral tones, is priced between $3,650 and $6,810 and has been hailed as the “new generation Birkin.” Despite its hefty price tag, it consistently sells out within a week of hitting shelves at retail locations and distributor websites.

In just the past two years, this seemingly simple bag, infused with an irresistible allure, has captivated the hearts of top global stars like Zoë Kravitz, Jennifer Lawrence, Elle Fanning, Rosie Huntington-Whiteley, and BLACKPINK. Notably, the moment Kendall Jenner was spotted on the streets carrying a brown Margaux bag set the fashion world ablaze. Fashion enthusiasts immediately launched a fervent hunt for this elegant crescent-shaped bag.

The Margaux bag is a distillation of the Olsen sisters’ most refined aesthetic sensibilities. When it was first launched, it didn’t garner much attention. This understated handbag struggled with being “phased out” and took a considerable amount of time to establish its place in the market. It wasn’t until 2018 that The Row reintroduced the design with a simple premise: to create a luxurious, valuable, durable, and above all, fashionable bag that could be used for years. This concise yet powerful introduction also served as a unique invitation to devoted followers of the minimalist lifestyle.

Staying true to its understated and mysterious spirit, The Row’s Margaux bag adheres to its core principle: no external branding or logos are allowed to appear. Designed in a crescent-shaped bowling bag style, with sharp, precise cuts down to the millimeter, the Margaux is handcrafted with flawless stitching, leaving no room for error. It also features side straps with buckle details, allowing the bag to be cinched for a sleeker look, reminiscent of the clasps on the timeless Hermès Birkin.

What’s most impressive about the development of the Margaux bag isn’t tied to radical innovations in its design. While other brands often rely on “reviving” past It-Bag models, The Row created a product and repeated it consistently across every season. The same bag comes in four size options—10, 12, 15, and 17—catering to a variety of user needs. Additionally, each season, The Row refreshes the Margaux by introducing new, high-quality materials. The brand has even produced limited editions in crocodile leather, which, if sold at retail, would be priced at no less than $50,000—rivaling the exclusivity of the Hermès Birkin. Thanks to its distinct design language and unique DNA, the Margaux has quickly garnered a loyal customer base.

However, owning a Margaux bag remains a challenging feat. While The Row introduces new highlights each season, it continues to maintain scarcity by keeping the quantity sold at low levels, even though exclusivity is not the brand’s primary goal. According to Edited, when The Row decided to increase the number of bags available on the market, retailers reduced discounts. In January and February, searches for the keyword “The Row” increased by 185% compared to the same period the previous year. As of February 1, only 1.9% of Margaux bags were discounted on websites analyzed by Edited, compared to 5.7% in 2021. Searches for this bag on the resale platform Vestiaire Collective rose 170% in January 2024 compared to December 2023. On The RealReal, Margaux is currently resold at an average price up to 80% higher than its original retail price, marking a 62% increase since 2019. This resounding success is a testament to the relentless creativity of the Olsen sisters and The Row’s design team, achieving well-deserved recognition.

FROM A $200 T-SHIRT TO A BILLION-DOLLAR “UNICORN” BRAND

In a market where there are increasingly fewer independent fashion brands with the potential to scale globally, it’s no surprise that major luxury conglomerates are starting to take notice of The Row. This interest stems partly from the brand’s limited presence in major markets like Europe and Asia, as well as its gradual development of a men’s fashion line with long-term growth potential. A large conglomerate like LVMH could easily incorporate The Row into its portfolio. However, this move would be more challenging for Kering, as The Row’s customer base likely overlaps with that of Bottega Veneta.

Of course, the calculations by major conglomerates must be accompanied by swift and decisive actions. Last year, the twin sisters officially announced their search for a new investor to help develop and expand The Row’s global market presence. Seizing the opportunity, on September 15, the Wertheimer family—behind the legacy brand Chanel—invested in The Row through their investment company, Mousse Partners, alongside Françoise Bettencourt Meyers of L’Oréal, via her family fund, Téthys, valuing the brand at approximately $1 billion. Additionally, entrepreneurs like Natalie Massenet, co-founder of Net-a-Porter, through Imaginary Ventures, and Lauren Santo Domingo, co-founder of Moda Operandi, also invested via the private equity fund St. Dominique Capital. With this valuation, The Row positions itself on par with luxury giants such as Hermès, Chanel, and Dior.

To confidently value itself on par with industry giants, The Row has meticulously built a portfolio showcasing impressive sales performance. Over the past 18 months alone, The Row generated approximately $50–$75 million in revenue through e-commerce platforms. This figure is estimated to account for about 30% of the brand’s total annual revenue of $250–$300 million. In an era of exceptional growth and logistical advancements, The Row’s embrace of digital transformation and its bold move to offer luxury items through online channels reflect its adaptability.

The growth of The Row’s e-commerce sales also signals the brand’s potential and sustainability, while highlighting the willingness of its customers to spend generously on high-priced clothing and accessories via online platforms—an area where many luxury brands have struggled. For instance, comparing September 2024’s online revenue to the same period in 2023, The Row achieved nearly 175% growth—a staggering increase.

These figures provide a strong foundation for investors to believe that the $1 billion valuation is well-justified. Given the current economic climate, The Row presents an attractive opportunity for long-term investors seeking a reliable and growing luxury brand.

While most indicators suggest that The Row is on the right track and poised to achieve a $1 billion valuation, there are significant risks that both the brand and investors must anticipate. The Row, like other luxury brands, faces challenges from evolving fashion trends and shifts in customer shopping preferences. Although “quiet luxury” is currently in vogue, with The Row being one of the most promising brands in this space, this trend could change in the future.

Moreover, The Row’s production costs are exceptionally high. Notably, last year, the brand had to discontinue over 10 product lines. Additionally, it has significantly adjusted its pricing. For instance, the starting price of the Margaux bag has risen from $3,490 last year to $3,650 this year. Similarly, a sweater previously priced at $1,420 now costs around $1,750. These price increases suggest that the brand is striving to strike a balance between maintaining quality and ensuring sustainable pricing in the future.

Another challenge lies in the inherently competitive nature of the luxury market and The Row’s reliance on a niche customer base—successful, ultra-wealthy individuals. Competing with century-old brands as an 18-year-old company requires The Row to remain committed to its original aesthetic and ethos while preserving its unique DNA. This will demand unwavering effort and perseverance to carve out its place in a market dominated by long-established luxury giants.

In summary, The Row has been creating a historic shift in the race among luxury fashion brands. The Olsen sisters have successfully laid the foundation for redefining the meaning of luxury in the modern era, paving the way for future designers and emerging brands to follow.