When building enterprise software for HR departments didn’t satisfy young programmer Jeremy Cai’s ambition, he returned to the decades old family manufacturing business, but with a new twist to ignite his passion. Now just 25 years old, Cai is the founder and CEO of the international online retailer Italic, bringing high end luxury consumer goods straight from the manufacturer to the customer at a fraction of the cost, while still retaining high quality products and services. With a subscription-based membership style, asking $10 a month or $120 a year, Italic provides consumers with access to exclusive deals and low-cost products, that will save them countless dollars in the end.

The high middle ground

For Cai and Italic, the secret to success is tapping into the consumers that the other big online retailers miss. There are numerous stores that sell direct-to-consumer goods at a cut rate from in-store brands, such as Ali Baba and Wish, but with little to no quality control or assurance, making every purchase a gamble for the consumer. Likewise, on the other side are name-brands, known for their quality and service, who carry an enormous markup by the time the product hits the shelves. That middle ground, where the consumer gets the quality they pay for without breaking the bank on brand names, is where Italic excels.

Bypass the brand, build it yourself

To a manufacturer, it doesn’t really matter at the end of the day who they are selling their products to, only that there is a satisfied client and a completed sale, high or low end. They have their manufacturing costs to build an item, and a relatively low markup that they pass along to whatever company is next down the line, who pass that cost on to their clients, and so on until you reach the frontline consumer, who pays a ridiculous mark up. Remove the brand name from the product they make, be it athletic wear, kitchen accessories, or tech, and it’s still the same highend, high selling goods, but now at a dramatic fraction of the cost.

Mutually beneficial business

Selling high-quality products to a consumer is the easy part of online retail. The real challenge is selling services like Italic to retailers, and for Cai that means empowering those manufacturers to become merchants themselves, to make the factory itself the brand. While these companies have been around for years, few if any own the product they manufacture, building a set number of products for a contract, and shipping them out. By choosing a selection of products they could manufacture for their own inventory, they can sell directly to customers, with all profit flowing directly back to that manufacturer.

Seize the means of consumption

With no brand names to interfere with direct sales, the manufacturer themselves become the brand, and Italic capitalizes on this by selling the factories themselves to the consumer as businesses they want to buy from. With details of ISO certifications, environmental profiles, product or labour histories, consumers feel more engaged in the mercantile process on a personal level, choosing to buy from manufacturers who meet their own personal standards.

Passing costs, savings and information onto the consumer

The key to that level of involvement, explains Cai, is honest transparency with savvy, well educated customers about the products. While price comparisons are old hate for any market, Italic provides not only the price a consumer would pay at another retailer, fully marked up, but also the actual factory cost to build the product, along side the asking price. This empowers consumer to make an informed choice of who to support, and gives them a more realistic idea of the entire factory economy. Italic is likewise upfront with members that the subscriber fee covers their operating costs, allowing them to interact with the...