Queenly: A New Marketplace for Formalwear

Queenly, a platform dedicated to formal attire, entered the market facing a significant challenge: the widespread cancellation of events due to the global pandemic. This impacted the demand for dresses and gowns, traditionally purchased for occasions like award shows, proms, and weddings.

Navigating Pandemic Challenges and Achieving Growth

Despite the circumstances, Queenly’s co-founders, Trisha Bantigue and Kathy Zhou, reported impressive results. Last year saw $500,000 in sales, and the website consistently attracts over 100,000 daily visitors.

Bantigue explained that many women purchased dresses simply to feel a sense of normalcy while at home during a period of widespread disruption. This desire for self-expression and a return to routine contributed to the company’s success.

Events adapted to the new reality, evolving into formats like Zoom weddings, virtual pageants, and socially distanced celebrations. Content creators on platforms like TikTok and YouTube also contributed to demand by purchasing dresses through Queenly.

Securing Funding and Vision for the Future

Currently participating in the Y Combinator winter cohort, Queenly has secured $800,000 in funding. Investors include prominent figures like Mike Smith (former COO of Stitch Fix), Thuan Pham (former CTO of Uber), and Kelly Thompson (former COO of Samsclub.com and Walmart.com).

The founders envision Queenly becoming the leading marketplace – akin to StockX – specifically for formalwear.

How Queenly Operates

Queenly functions as a marketplace where individuals can both buy and sell formal dresses, encompassing everything from wedding gowns to pageant attire.

The platform currently features a catalog of over 50,000 dresses, including both new and pre-owned items. Sellers receive 80% of the final sale price.

Leveraging Technology for Enhanced Search

A key differentiator for Queenly is its sophisticated algorithm designed to connect buyers with their ideal dresses. Kathy Zhou, formerly a software engineer at Pinterest, applied her expertise in data-driven search and development to create this feature.

Unlike typical dress searches on sites like Macy’s, which primarily focus on size, color, and cut, Queenly’s search engine offers more nuanced options. It considers a wider range of sizes, silhouettes, and color variations.

Queenly is currently beta-testing a feature allowing users to search for dresses based on skin tone, specifically options with sheer fabrics suitable for medium or darker complexions. This demonstrates a commitment to inclusivity and addressing specific customer needs.

Zhou emphasized that this feature stemmed from the founders’ personal experiences as women, recognizing a gap in the market that a male-led company might overlook.

Platform Details and Logistics

The Queenly platform offers dresses priced between $70 and $4,000, with sizes available up to size 32.

Queenly claims its search capabilities enable dresses to sell within two weeks, a significantly faster turnaround compared to the five months some users reported on the Poshmark platform.

The platform’s diverse selection, encompassing a wide range of prices and styles, positions it as a competitive alternative to established retailers like Nordstrom.

A Lean Inventory Model

To minimize capital expenditure, Queenly operates without maintaining a physical inventory. Instead, it relies on a user-driven system where sellers ship dresses directly to buyers.

For dresses priced under $200, Queenly provides sellers with prepaid shipping labels. For higher-value items (over $200), dresses are shipped to Queenly for light dry cleaning, authentication, and then onward to the buyer.

This approach introduces a degree of risk, relying on user participation for successful transactions. However, sellers are incentivized with an 80% commission on each sale.

Shipping and Return Policies

Shipping costs represent the startup’s largest expense. To mitigate these costs, Queenly currently does not accept returns, except in cases where the received dress does not match the original product description.

While this policy is a pragmatic business decision, it could potentially deter some customers, given the complexities and inconsistencies often associated with dress sizing.

Bantigue noted that, surprisingly, the company has received very few complaints regarding sizing issues over the past two years.

Buyers are often willing to have dresses tailored post-purchase, and sellers are required to provide detailed photos to ensure accurate expectations. Furthermore, there have been no reported instances of counterfeit brands on the platform.

Future Expansion and Industry Impact

Queenly’s future plans include onboarding boutique stores and dress designers through a new partnership program. This initiative aims to help small businesses digitize their inventory and expand their reach through the Queenly platform.

“For years, the formalwear industry has been mostly offline, with only big name players being available online,” Bantigue stated. “We want to change this.”