Nau or Later: Sustainable Businesses are Built to Last, or are they?

Over a year ago, I met with the marketing team at Nau, the sustainable outdoor fashion manufacturer/retailer.  I was amazed, and frankly, skeptical, of their altruistic vision and aggressive growth plans.   Unfortunately, I wasn’t able to provide search engine marketing services due to a conflict of interest with prAna, another client of ours.  Regardless, I followed the start-up through hair-raising rounds of financing through business rags, silently rooting them on.  They have survived, this far at least.  This week I attended a Portland Business Journal Power Breakfast featuring Nau’s CEO, Chris Van Dyke.  A very well-spoken and down-to-earth ex-Nike & Patagonia executive, Van Dyke came out of retirement (for the second time) to lead Nau.  He clearly articulated why being green is more than just good business, it’s great business.  He discussed how the Nau brand attributes (fashion, technology and sustainability) have actually created a larger market potential, by encompassing urbanites, outdoor enthusiasts, athletes and environmentalists.  Of course if you’ve ever been to one of their 4 stores, like I recently experienced in Bridgeport Village, you’d see a wide swath of humanity browsing with overt curiosity and amazement.  One intriguing aspect of the Nau business model is the groundbreaking philanthropic mantra of donating 5% of sales (not profits) to charities that customers choose from a select list.  While this may appear to add insult to injury when purchasing a $200 shirt, it’s actually a thoughtful marketing strategy; the charities are vested in Nau’s success and promote them vigorously to membership.  On the manufacturing side of the business, Van Dyke explained why Nau doesn’t patent unique sustainable fabrics it develops, as it is smart for business: it lowers Nau’s cost when other companies purchase the fabrics in bulk.  While not quite as sexy, but still revolutionary, Nau also minimizes it’s retail footprint by offering shoppers a 10% discount if they select the option to ship to their house instead of carrying out the items.  If I hadn’t just read Seth Godin’s new book, Meatball Sundae, I wouldn’t have understood the inverse curve of only low cost and high cost products surviving in the marketplace where formerly average product thrived.  I’ve come to the realization that Nau may just beat the odds and skeptics by living in a very special place in the socially conscious consumer’s heart & mind.