Hey! Welcome to the Creator Economy NYC newsletter — the premier place for all things creator economy in the Big Apple.

This week, we’re exploring the story of Something Navy, the fashion brand founded by NYC influencer Arielle Charnas

From its meteoric rise as a beloved blog to its dramatic fall as an independent fashion label, Something Navy's journey is filled with valuable lessons for all of NYCs founders and creators alike.

Let’s dive into it.

Stops along the way:

• Upcoming events

• Community callouts

• Community perks

• News bits

• Job openings

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The rise and fall of Something Navy: lessons from a NYC influencer-driven brand

In NYC's creator economy, few stories are as compelling as the meteoric rise and precipitous fall of the fashion brand Something Navy, founded by NYC influencer Arielle Charnas. What began as a humble blog in 2009 transformed into a multimillion-dollar fashion label, only to face dramatic setbacks within a few short years.

From blog to brand

Arielle started Something Navy as a blog, sharing her personal style and lifestyle content. Over time, her blog amassed a significant following, eventually propelling her into the “influencer” stratosphere, amassing 1.3 million followers on Instagram. (I remember the Something Navy rise in 2017-2018, and she was arguably the first non-celebrity social media influencer with such a strong, leaned-in following).

In 2017, with all her following and influence, Arielle launched a clothing collection exclusively sold through Nordstrom — marking the first time the retailer teamed with an influencer to create a brand.

The collaboration was an immediate success. On launch day, Nordstrom sold over $4 million worth of Something Navy items. This initial success demonstrated the powerful intersection of influencer marketing and retail, arguably paving the way for the influencer-brand collaborations that dominate the market today.

Independent ambitions

The success with Nordstrom spurred Arielle to ultimately take Something Navy independent in 2019. She raised $17.5 million in funding, and appointed Matthew Scanlan, CEO of Naadam, as CEO (Matt actually worked with Arielle before, where Arielle promoted Naadam’s products, and the results were so good that Matt had a vision for Arielle launching her own brand, thus leading to his involvement with Something Navy). The brand initially thrived, expanding quickly into major markets like New York and Los Angeles and posting $32 million in revenue in its first year.

However, the rapid growth came at a cost. The onset of the pandemic, among other issues, led to cracks beginning to appear in the business's foundation in 2022. The company struggled with cash flow, quality control issues emerged, and Arielle found herself embroiled in various controversies, tarnishing the brand’s image.

Leadership changes and downward spiral

Despite Matt’s efforts to stabilize the company, the issues proved too deep-seated. His strategy to market across various channels and focus on sustainability couldn't counteract the operational and reputational problems Something Navy faced.

Customer dissatisfaction grew, and the brand’s financial health deteriorated. Missed payments to suppliers, internal turmoil, and a significant exodus of employees further compounded the problems. The pandemic also played a role, disrupting supply chains and altering consumer behavior in ways that hit the brand hard.

During this time, Arielle often posted on her Instagram wearing luxury designer brands rather than her own, raising questions about her commitment to the brand. This perceived detachment, coupled with operational failures, prompted scrutiny from media and customers alike. Katie Warren of Business Insider noted the evident issue:

Ultimately, the brand’s stores closed, production halted, and its online presence dwindled. When visiting the site just a few months ago, visitors would see a “be right back” landing page, like this:

Now, the website is nothing like before and just has this weird text page about the brand that presumably has nothing to do with Arielle or the team.

The final blow came when it was announced late last year that the brand was to be sold in a fire sale for just $1 to a group of investors, assuming ~$8 million in liabilities. However, no deal has been signed and in February, it was reported that the company looking to buy Something Navy, IHL Group, backed out of the deal. 

Recent developments

In a recent turn of events, Arielle has broken her silence on Something Navy by launching a Substack in May, following the trend of creators starting their own newsletters to maintain direct communication with their audience. This move allows Arielle to reconnect with her followers and share insights in a more controlled and personal way​. She kicked off her first newsletter by saying:

Lessons learned

Despite the dramatic downturn, there are valuable lessons to be learned from Something Navy’s journey:

1. Popularity isn't enough: While a strong following can launch a brand, it doesn't guarantee sustained success. Effective management, robust operations, and strong marketing are crucial.

2. Quality matters: Maintaining high product quality is essential for customer retention and brand reputation. This is partly why Mr. Beast recently shut down Mr. Beast Burger earlier this year.

3. Navigate controversy wisely: Public perception can make or break a brand, especially for influencer-led businesses. Navigating controversies with transparency and accountability is vital.

4. Live and breathe your brand: If you're not promoting or wearing your own brand, especially when it is so closely tied to your personal influence, it raises questions about its value. If you don't support your brand, who will?

5. Financial prudence: Sustainable growth requires careful financial planning and cash flow management. Overextending can lead to catastrophic consequences. This goes back to point one, about effective management.

The cautionary tale of Something Navy reminds us of the challenges and complexities of building and sustaining an influencer-driven brand. As NYC's creator economy continues to grow, these insights will be invaluable for aspiring entrepreneurs and established influencers alike.

While the competition is strong, NYC remains an ideal place to launch and grow a creator-led brand due to its vast resources, vibrant community, and unparalleled opportunities for networking and collaboration.

Upcoming events

VidCon Anaheim: No Cap Hour: Creators Off The Record - June 26, 4:00PM-7:00PM

We’re headed to the West Coast next week for an event at VidCon alongside our friends at Passionfruit, Teachable and Blanka.

We’re hosting an intimate gathering of creators, brands, and media at the JW Marriott Garden with an open bar and light bites. Expect time to connect with others and a panel focused on the “professionalization” of creators.

We’ll dive into topics like what it actually takes to be a full-time creator and how platforms can play a supportive role in enabling creators to do what they do best: create ~ while building sustainable businesses.

If you’re headed to VidCon, we hope to see you there! And if not, please share with people you know attending.

P.S. you can snag VidCon tix here.

Summer Mixer & Live Podcast Recording - July 29, 6:30PM-9:30PM

We’re excited to partner with Creator Economy Live for an exclusive summer mixer and live podcast recording at the Mariott Marquis in the heart of NYC.

​The Creator Economy Live podcast brings us lively conversations about everything in the world of influencer marketing and the creator economy, hosted by the industry’s top voices, Brendan Gahan (Creator Authority) and Keith Bendes (Linqia).

Drinks, food, and good people to meet. Shoutout to Teachable and Siftsy for their partnership.

RSVP below to join us!

• Congrats to AJ Eckstein on the launch of his LinkedIn influencer marketing agency, Creator Match!

• This podcast episode by Lindsay T., Lady Engineer®, titled TikTok Ban: Legitimate Threat or Political Theater? Interesting convo!

• Great video by Tejas Hullur on the marketing of our favorite “healthy soda.” I guess I’ll have to get my fiber from other sources now. Sad.

Got something to call out? Let me know here for a chance to be featured in a future edition.

• Newsletter: Enjoy 20% off your first 3 months on any beehiiv paid plan. This comes after a complimentary 30-day free trial, exclusively for our community members! Snag it here.

• Link in Bio: Get 3 months FREE on the Linktree PRO plan using the code creatoreconomynyc.

• Travel and Lodging: Enjoy 12.5% off the best available rates for business and personal travel at any CitizenM Hotel location. Just use code CRMY1!

Caspar Lee: from YouTube to the boardroom

Caspar Lee, once a YouTube sensation, is charting a new course as a serial entrepreneur. This CNBC article explores Lee's journey from creating viral content to launching ambitious business ventures. It’s a fascinating look at how digital fame can be leveraged into successful business opportunities, highlighting his strategic shifts and the broader implications for influencers looking to expand beyond their platforms.

Supreme court shapes social media's future

The Supreme Court's recent rulings could significantly impact how social media functions. This article provides a clear breakdown of the legal decisions and their potential effects on digital communities. It’s a solid read for anyone looking to understand the future landscape of online interactions.

New York tightens social media rules for minors

Governor Kathy Hochul recently signed legislation that mandates parental consent for minors using social media, aiming to protect younger users from addictive algorithms. This article details how the law intends to strike a balance between digital freedom and safe, responsible online engagement for teens.

• Social Media Producer @ Substack

• Director, Creative Strategy @ Whalar

• Creative Strategist @ Mighty

• 🎥 Our panel on audience ownership from NYTechWeek

• 📰 The rise & fall of Studio 368

• 📰 Why a 100K email list beats 1M followers on Instagram

View the full archive here.

Thanks so much for reading! Let me know what you thought by replying back to this email! Enjoy the weekend.

See you next week,

Brett