The fashion industry is currently undergoing profound change. Classic retail and sales models are coming under pressure, many established concepts are floundering, while consumers are placing increasing demands on price, quality and sustainability. Against this background, Kerstin Bernecker founded the You Too label.
As the sole managing director of the newly founded Club of Quality GmbH based in Frankfurt am Main, Bernecker launched her new project at the end of last year, which is based on experience as well as setbacks. Their previous brand Funky Staff ceased operations in November 2023 after Funky_Care GmbH filed for bankruptcy. Even back then, the designer focused on a basic line with short delivery times in addition to the fashion program. With You Too, Bernecker now goes one step further.
No classic sales representatives, no minimum orders and flexible ‘short term’ cycles – could this very concept be the answer to the industry’s current challenges? Uwe Bernecker, freelance consultant for You Too, provides strategic support for the brand and monitors production in Portugal.
FashionUnited spoke to him about the founding, the business and delivery model and the opportunities in a turbulent market.
Mr. Bernecker, what led to the founding of You Too after Funky Staff went bankrupt?
You Too was created from two hearts – and that became the heart in the logo. The two designers, Kerstin and Sabine, have been working together since 1993. They are literally one heart and one soul, understanding and complementing each other perfectly. After Funky Staff went bankrupt, they were faced with the question: “What happens next?” They both still felt a lot of energy and drive, so they took a few weeks and finally decided to move on.
What did Ms. Bernecker gain from the bankruptcy?
Kerstin wanted to realize the new project in Portugal. She wanted to avoid the mistakes of the past. Issues such as unreliability, fluctuating quality, lack of transparency and sustainability played a central role. Of course, she knows from experience that for many consumers the issue of sustainability ends at the checkout. But if you’re starting a new brand, you should pay attention to these values right from the start.
Why did you decide on Portugal as a production location?
Kerstin has had productions in many countries in her career – from the Far East to Poland, the Czech Republic, Lithuania and Italy up to 15 years in Prato and Naples. Especially with Funky Staff, it was a constant ups and downs – short-term production rhythms, great sales successes, but equally major quality problems. She often didn’t want to see the deliveries anymore because she was so afraid of defective goods.
What goals are you currently pursuing with You Too?
I have learned from past experiences. In the past I often completely exhausted myself, but today I approach new projects with more calm. I will never sit still – I’m a doer – but I’m more careful about enjoying life and not overloading myself. I also only work as a consultant. Kerstin and Sabine also want to run You Too defensively and in a manageable manner.
The goals for this year are to make digital marketing more professional and to specifically involve young talent who understand the concept and can improve brand presentation. The imagery and content should be prepared to be more valuable and product-friendly in order to better address premium customers and support sales. At the same time, the already highly professional logistics should be maintained, which enables quick delivery of goods and can easily handle higher volumes.
What does this specifically mean for You Too’s growth?
You Too is aiming for seven-figure sales this year; you can realistically expect around 600,000 to 700,000 euros. In the long term, sales should increase significantly within the next five years without giving up the company’s family structure. Increasing sales are also supported internally by team members with sales savvy to ensure sustainable growth. Overall, the focus is on a combination of professional marketing, efficient logistics and controlled growth.
With You Too you forego a classic sales structure, why?
The experience with Funky Staff has shown that only a few sales representatives really take their job seriously. Many people think about themselves first and less about the brand they represent. Conflicts with customers often arose precisely because of this misunderstanding.
It was completely different when we ran our own showrooms with Sulu (editor’s note, another brand from Uwe and Kerstin Bernecker’s portfolio) for ten years – in Hamburg, Düsseldorf, Munich, Eschborn and Zurich. There we had direct contact with customers and there were hardly any problems. Complaints were resolved easily because there was no “representative filter” in the way.
Another advantage is that the prices can be set differently. Representative commissions of 15 percent, costs for sample collections and agencies are eliminated – that makes a significant difference.
How big is the resulting price advantage for retailers compared to the classic model?
If you sell the same item with the same calculation factor, the price will be 119 euros instead of 159 euros. That’s a difference of 40 euros – a huge advantage. Especially now, when there is price sensitivity in the market, inflation is high and purchasing costs are rising, this makes a big difference.
You also mentioned that sample collections are no longer available, why does that happen?
The fact that sample collections are no longer necessary is due to the structure. You Too produces in selected factories in Portugal. I have been living in Porto for almost two years and I have an eye on quality at all times.
For the presentation, there is still a collection that is photographed and with which individual customers are approached. Especially when it comes to fashion, which is sold largely based on quality and cut, being able to touch the goods is important. That’s why we personally visit those who are seriously interested.
They do not rely on classic seasonal cycles, but rather on their own timing for purchasing and delivery. How does this system work?
The You Too system is designed so that retailers can order four times a year and then flexibly buy more from stock. New customers usually start very carefully, with small quantities. As soon as they see that the goods are doing well, they increase the budget significantly. Some are shifting their ratio from 30 percent order and 70 percent inventory to 50 percent order and 50 percent inventory. We still recommend pre-ordering a maximum of 70 to 80 percent and adding more flexibly.
Furthermore, there are no limits and no minimum quantities. Dealers can simply order individual parts from stock, try them out and build trust. The mere fact that You Too does not require a minimum order shows that the company is convinced of the very good quality of its goods. Many retailers enter flexibly via the B2B shop from the warehouse. This is the best way to gain initial experience in handling the goods.
Another plus point for You Too is that retailers pay immediately with a discount or within 30 days. Before the next delivery arrives, the previous one has already been paid for. This improves cash flow enormously, especially for a start-up.
It’s still not a classic never-out-of-stock program, right?
No, but via a short-term system. Let’s take a certain pair of pants as an example. This was reproduced three times in one season – from March to May. As soon as there was demand, You Too informed its customers via newsletter and WhatsApp. Orders were received within a very short time, production was started and the goods were available again within a few weeks.
How do retailers react to this new timing?
Although the fashion industry is considered forward-looking, its processes are often conservative. Some retailers first had to get used to the different timing. The legacy of the Funky Staff insolvency was particularly difficult at the beginning.
A buyer who had bought Funky Staff for ten years initially came to the You Too stand very upset: “You left me hanging and didn’t even call!” It took a conversation to clear up the misunderstandings. When she saw the You Too collection, she was thrilled – better quality, more casual style, familiar handwriting. In the end she wrote an order at the trade fair.
What’s behind the Magic Tuesday ‘Drop’ concept?
The Magic Tuesday concept arose from the need to maintain regular contact with retailers even without sales. Instead of just relying on showrooms, You Too consciously also provides end customers with content – weekly or bi-weekly. New parts are introduced, simultaneously for business-to-business and business-to-consumer. There is only one camp. Retailers and end customers have access to the same goods – an absolute knockout criterion if it were otherwise.
How well are sales of the collection going?
Not all retailers keep accurate lists, but the trend is clear. Fast repeat orders show that the goods are running. If nothing follows, there is usually something wrong. Overall, we hear very often: “That sold really well.” This is exactly the best proof of the success of the You Too model.
How important is it for retailers to plan part of their budget for new, untested concepts?
Fashion thrives on having courage, daring to try something new and giving brands a chance. Of course, retailers have to rely on proven bestsellers – but why not use 20 percent of the budget as play money for new concepts? That would be refreshing, also from the customer’s perspective. Because fashion was never intended for everyone to buy, make and wear the same thing.