Wearable Art: Why Unprofitable Tictail Market Is Actually Totally Worth It

Here’s a kind-of-a-shocker: Ultra-hip social marketplace Tictail‘s brick-and-mortar flagship is that it’s not profitable.

Tictail Market is the brand’s one and only storefront, located in Manhattan’s Lower East Side — and surprisingly, the IRL store makes less in revenue than even many of the e-commerce site’s online independent sellers.

“The [brick-and-mortar] store makes about $50K a month; rent is $17K. Salaries and expenses bring us close to $8K, and that about covers it,” co-founder Carl Walderkrantz admits to Forbes readers.

So why is it important for an e-commerce site that pulls in millions of shoppers a week to offer an in-person experience that doesn’t generate significant profits?

Is it just to be able to flaunt kickass storefront gifs? (Courtesy of Tictail NYC)
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Walderkrantz says that while the “future is moving toward online, the joy of shopping is still synonymous with an in-person experience” for many customers.

And in the tradition of other successful sites like Warby ParkerBonobos and Away and less-that-lucative storefront was the best way to guarantee local awareness.

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Photo courtesy TicTail

“Tictail Market literally put us on the map in this city,” says Walderkrantz, adding that it gives the brand “street cred.”

Originally, the DIY e-commerce site was developed as a means of giving entrepreneurs the ability to build online shops.

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Photo courtesy of Tictail

It is now touted as the ‘easiest platform for discovering emerging brands around the globe’ — a gateway to thousands of under the radar brands from over 140 countries via an easy-to-navigate social marketplace. Brands include By Far (Bulgaria), Orphée (France), Humanscales (Sweden), and Lina Michael (Sweden)

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Photo courtesy of Lina Michael/Tictail

And while mobile tools like Pinterest Visual Discovery continue to accelerate the switch from in-store browsing to online purchasing as we know it, Walderkrantz still believes that an IRL store is the best way to engage with a community of potential brand ambassadors.

“It’s a way to connect the brands and shoppers, and make the shopping experience feel a lot more personal” he says.

And the merits of a brick-and-mortal extend to larger brand partnerships, added social media activity through in-person events and flashy storefront art. “For each individual who visits your store, you should aim to reach another 50 through their extended network.”

Sounds worth it, eh?