2020 was a tumultuous year for most businesses, but for modest fashion e-tailer The Modist it marked the end of a short road. Demand for a one-stop-shop for modest clothing was high, but the company’s model of buying and holding stock was unsustainable. Founder and chief executive Ghizlan Guenez closed the site that April, less than three years after it launched.

Two years on, The Modist has returned and this time it is a marketplace, holding no inventory. Guenez, who is now co-founder and co-CEO alongside the platform's former chief commercial officer, Hajar Ouhsine, calls it “The Modist 2.0”: “Our vision is to create the largest marketplace for modest fashion in the luxury space,” she says. “We know that there is still a big gap in this $44 billion dollar market that no one is serving in this luxury space. We decided to come back to the market and speak to the same customer, but in a completely different way.”

Connecting modest consumers to luxury fashion is still a priority and the new site follows the standard multi-brand retailer playbook: the design is sleek, and includes editorial content, as well as an emphasis on the community. However, the new model will see The Modist partner with indie boutiques that carry luxury brands such as Dolce & Gabbana and Burberry. It is launching with over 100 contemporary and luxury brands, including new categories such as activewear.

However, it faces competition from other multi-brand retailers with a strong presence in its biggest markets, such as Ounass and Farfetch. In March, Farfetch and multi-brand boutique Browns unveiled an exclusive capsule collection for modest dressing customers, in an attempt to push further into the Middle Eastern market.

Ouhsine says the marketplace model will allow The Modist to broaden its offer. “One of the main learnings from The Modist 1.0 is that our customers were seeking a wider modest selection across categories rather than a small curation,” she explains. “That is exactly what we are offering them in the new iteration. We have also expanded the price point to range from super brands into accessible contemporary price points through including a selection of beautiful and sought-after up-and-coming designers [such as Dubai-based designer Dima Ayad and German brand Talbot Runhof], while always maintaining the luxury positioning.”

Categories have been reworked to better suit the audience. For example, eveningwear has been updated to give customers an option to filter through modest and regular options, something the previous site did not allow. “We used to have a lot of women from the region say that when it comes to eveningwear, sometimes, amongst friends she [the customer] would wear any dress,” she says. “So, we want to leave that optionality there.”

The founders were keen to incorporate activewear. UAE’s rising sportswear brand The Giving Movement has been an early champion of The Modist and welcomes its return. “The Modist has a great vision and hopefully they are able to take the business to the next level,” says Layal Akouri, CEO of The Giving Movement. “The Giving Movement fits into modest fashion as well so we found ourselves collaborating with them… These guys have been there before, but were affected big time by Covid-19, and this is us supporting each other as a homegrown brand.”

A ‘double-edged sword’

Modest fashion’s potential remains high. Spending on modest fashion increased by 5.7 per cent in 2021 to $295 billion, according to the 2022 State of the Global Islamic Economy Report. It is expected to grow a further 6 per cent this year reaching $313 billion, with the largest markets for modest fashion including Iran, Turkey and Saudi Arabia.

The Modist is available across the Middle East and will later extend to the US, followed by other international markets. It expects its two largest markets to remain the same as before: previously, 35 per cent of The Modist’s customers were in the GCC — specifically Saudi Arabia and the UAE — and 35 per cent from the US. However, the modest dressing community is present elsewhere, points out Guenez: “We've seen markets everywhere for modest fashion. It's relevant in Asia just as much as it's relevant in Europe and other parts of the world.”

A recent seed funding round led by international and regional angel investors raised $1.8 million, some of which will go towards improving the back-end technology as the business scales, says Guenez.

While demand is still there for a luxury modest fashion e-tailer, resurfacing as The Modist is a “double-edged sword”, says Guenez. There is an expectation for the platform, which built a strong reputation and resonated with thousands of modest dressers, to be a mirror of its former self. “There is this expectation of what The Modist is. Back then we were in control of the entire customer experience: from the purchase all the way to receiving the package, which is no longer the case.”

Under its previous model, The Modist was investing in stock up-front but it didn’t have the data and insights to accurately predict demand, admits Guenez. As the pandemic hit and customer behaviour rapidly shifted, The Modist struggled to sell all of its stock. “Very quickly, you find that you are putting a lot of money into buying stock and not necessarily getting the ROI [return on investment] on it,” she explains.

Connecting with the community

To better connect with modest fashion consumers and bring this audience into digital spaces, Guenez and Ouhsine have launched the Queen Mode, a separate, member-only website that allows customers to access exclusive NFT drops, merch and engage with other community members in the metaverse.

Thousands of NFTs of artworks will be available, created in collaboration with Alejandra Michel, a Mexican artist — who the co-founders picked as part of efforts to empower women in digital spaces — and creative agency Apropos. Prices are yet to be disclosed. The technology is built on the Ethereum blockchain and has been developed with The Modist’s US-based tech team. The perks are only available to Queen Mode NFT holders.

“We wanted to make it interesting and do something special for our community where we can connect with [them] on another level,” says Guenez. “When we were introduced to NFTs, it became so clear to us that this is exactly how we can build a stronger relationship with our community.”

The aim is also to attract more women into the Web3 space. “Right now, The Modist community on Instagram is not aware of NFTs,” she says. “One of our missions is to reduce the barriers of women accessing Web3 and creating awareness in this space in a manner that is easy to understand.”Read more at:formal dresses perth | white formal dresses