Inclusive-sizing brand, Universal Standard, was able to turn a 2019 operational crisis into a ... [+]
Universal Standard’s mystery box began as the response to an operational crisis in 2019, but has since become the inclusive-sizing brand’s leading revenue driver. This week the company will launch their annual mystery box for the fourth year running. Sales are expected to surpass Universal Standard’s Black Friday and Cyber Monday results, as they have for the past four years.
The 2019 dilemma that kicked off the inception of the mystery box was inventory related. “In 2019, we discovered thousands of dollars in unprocessed inventory in our Seattle warehouse,” says Universal Standard co-founder and CEO, Polina Veksler. “We found countless new and best-selling styles that were not accounted for in our system. Many of our fan-favorite pieces showed up as out of stock on the website and the never-before-seen styles had never gone live at all, meaning our customers couldn’t purchase the garments that we knew they would love. That same year, we were preparing to launch collaborations with Rodarte and Adidas and expand our own size range to 00 through 40, the most inclusive offering in the world. We needed warehouse space for these collections, so it was vital for us to move the unaccounted inventory quickly.”
Veksler says that the company considered hosting sample sales in Seattle and New York but ultimately ruled that out, as they didn’t want geography to be a barrier to access. “We needed an immediate solution, but not at the expense of the customer experience. We looked at this as an opportunity to do what we do best, and double down on our mission to democratize shopping.”
Fun was the goal, Veksler says, because many of Universal Standard’s customers have historically associated shopping with stress due to the lack of quality garments available in inclusive sizing. “We came up with the idea to curate boxes based on customer history, offer bundle savings on these pieces, and surprise the customer with what they would receive. The bundling would help to move more inventory per order and the mystery aspect would expedite the decision to purchase, eliminating the contemplation of whether or not to buy a specific product,” says Veksler.
At the time, the concept of a product of this kind had not yet been widely adopted by direct-to-consumer brands. Veksler says that this made the decision exciting but also risky. “Executing this idea required so much work,” reflects Veksler. “We flew the New York team to Seattle to hand-pick and pack styles for each customer based on purchase history, but it resolved our issue and put the customer first, which is what is most important to us.”
Originally the mystery box was primarily marketed to repeat customers because the company believed that only customers who knew the brand would be interested. “We were quickly proven wrong,” shares Veksler. The mystery box was immediately successful and got an overwhelmingly positive response from new and existing customers. With proof that there was demand for this type of experience, Universal Standard has launched a mystery box every year since. The company has automated the process to allow for maximum operational efficiency, customer savings, and thoughtful box curation and personalization. Customer feedback from previous years is applied to ensuring the quality of the mystery box, and new concepts and styles are launched to offer “the most exciting experience possible.”
From a business perspective, the mystery box model is ingenious. It allows Universal Standard to move quickly through excess inventory that might be more difficult to sell individually and enables the company to save on buy-ins by placing larger orders. Larger orders lead to bigger discounts for the customer. Further, Mystery Box is an easy way for new customers to experience the brand. They can test out styles in their size from various categories and purchase pieces at a fraction of the regular price.
Veksler says that the mystery box is so successful because it offers both a surprise and a compelling value proposition. “We design our clothes with only the best fabrics and spend countless hours fitting the styles on all sizes 00 through 40 to ensure the fit is exceptional for everyone,” says Veksler. “To save on premium clothes that actually fit, and have fun in the process of purchasing, is a truly unique shopping experience. To date, we’ve sold over 100,000 mystery boxes.”
The mystery boxes now are categorized by theme and include best sellers, archival treasures, and brand-new pieces made exclusively for the annual release. Customers can expect packages filled with new and best-selling closet staples that are a secret until delivered. This year Universal Standard is also “love bombing” customers with complimentary products from like-minded brands like Milk Bar, Heyday, and Noto Botanics.
