Volver: How to Succeed in the US by Bucking Trends

Immigrant Business Statistics: Name: Natalia Konovalova | Country of Origin: Uzbekistan | Immigrated: 1995 | Companies Founded: Volver Design Group, Le’ Bulga | Co-Founded Volver: 2012

A beauty pageant got Natalia Konovalova out of the Soviet Union, but her trend setting designs have made her a success in America.

As a child in Uzbekistan, Natalia Konovalova was fascinated by apparel and how it was made — an interest that wasn’t encouraged during the repressive Soviet era. But when she was a teenager, she won a beauty pageant, an event that took her to the United States and led to a Ford modeling contract. But being a runway model wasn’t Konovalova’s dream; she wanted to be in business for herself. Since coming to America, Konovalova has launched two successful companies, and has her edgy designs featured in hip boutiques and the legendary department store, Lord &Taylor.

Climbing the Ladder, Rung-by-Rung

Like many immigrant entrepreneurs before her, Konovalova took the time to learn her chosen business from the ground up, first going to New York’s Fashion Institute of Technology (FIT) to learn ready-to-wear and then apprenticing herself to designers such as Alberta Ferretti and Narciso Rodriquez. She networked extensively too, forming relationships with New York City’s fashion-world artisans: the sample makers, hardware and materials vendors, and manufacturers. “I learned how fashion was designed, and why things were made one way and not another,” says Konovalova. Most importantly, she learned that clothing is not just a business; “it’s a philosophy of life.”

“I got the idea of draping the bag from my background in ready-to-wear. Because if you carry the bag throughout the day, it has to be comfortable.” –Natalia Konovalova

The Big Idea

Building a ready-to-wear brand is risky and expensive, requiring a designer to create an entire season’s worth of clothing to get in the game, but Konovalova took a more measured approach, taking risks with her designs rather than her bank account. In 2003 she launched Le’Bulga, specializing in designer handbags. At the time, the market was for structured handbags made of hard leathers in basic colors, but Natalia wanted to lead rather than follow, so she created a drawstring bag out of soft Italian leathers called the “butterfly”– a hip accessory for young women on the go.

“I got the idea of draping the bag from my background in ready-to-wear,” says Konovalova. ” Because if you carry the bag throughout the day; it has to be comfortable. So I picked the leather that was not used for the handbags at that time.” Soon celebrities and models such as Jessica Simpson and Miley Cyrus were photographed carrying her distinctive bags. “That put us on the map,” says Konovalova.

Volver means to give back, and we really wanted to … give back to the garment center and keep manufacturing here in New York.

Finding The Perfect Partner

It also attracted the attention of a former buyer for Saks Fifth Avenue named Nicole Ryder, who was then working for Daily Candy. “I was always in the market looking for brands, trends, what’s new, and new designers,“ says Ryder. “And I just felt that Natalia’s product would be the best for my customer.” What began as a business relationship evolved into a friendship, and several years down the road the two women founded Volver Design Group.

Although Le’ Bulga had done well, the market was changing. It was time to reach a wider audience, and Nicole Ryder had some fresh ideas about how to broaden their reach. Konovalova credits Ryder with the design aesthetic of the new Volver line. While Konovalova handles design, Ryder functions as the creative director of Volver, helping to edit the creative output and make it a cohesive, saleable collection. “Everything we do is a collaborative effort because my strengths might be her weaknesses and vice versa,” says Ryder.

While maintaining the edginess of Le’Bulga, Ryder and Konovalova have redefined their target market to make it slightly older, and more mature. “We envisioned a different customer when designing Volver,” says Ryder. “She likes classic pieces with a bit of an edge. She will be able to carry her laptop and her paperwork in probably all of the bags we design. She can go day to night, more of an urban professional.”

“We really wanted to be a lifestyle brand where you can wear our products every day and make it your own style.” — Nicole Ryder

Their plan was to move into ready-to-wear, but instead of putting out entire collections for every season, they created a core collection of basic pieces such as skirts, shorts and pants in soft leather — staples that everyone has in their closets. “We really wanted to be a lifestyle brand where you can wear our products every day and make it your own style,” Ryder explains. “We wanted to be very classic as well, to create timeless pieces.”

Financing and Manufacturing

Of course, great ideas are useless if you can’t produce your product and bring it to the marketplace. When she launched Le’ Bulga, Konovalova initially bootstrapped her operation, paying as she went along in the manufacturing process. “That was one of the reasons we were successful,” she says. “Not because of the price point, but because we able to self-finance.”

But self-financing isn’t easy, especially for start-ups. Konovalova recalls her first year in business when a $60,000 order came in from Nieman Marcus. “I was wondering, how am I going to produce this order,” she says. “I was mortified!” In the end, she was able to cover the manufacturing costs through incoming credit card orders combined with a personal investment, but it was touch and go.

In comparison, Volver Design Group had some initial investments from family and friends, and was fortunate enough to get a nice order from Lord & Taylor to get through their first season. On the basis on their initial orders, they went to Business Center for New Americans (BCNA) for a small bridge loan to help fund their season. They considered working with a “factor” — institutions that buy or provide financing (also called “invoice discounting”}on your accounts receivable, but liked their relationship with BCNA and felt it would save them money at their current size.

Supporting Manufacturing in New York

Volver Design Group has named some of their products after various districts and personalities in the city, such as the Bowery, the Essex, and the Village Shopper. Underscoring their commitment to New York, Ryder and Konovalova believe that supporting the local fashion industry makes good business sense too. “Volver means ‘to give back’,” says Ryder, ” and we really wanted to make sure that we did give back to the garment center and to keep manufacturing here in New York.”

So, Instead of sourcing their work overseas like so many businesses have done in recent years, Ryder and Konovalova have continued to buck trends by using the New York’s abundant resources. The sample makers, the manufacturers, the providers of fines leathers and hardware are already in New York, and that makes business a lot easier to manage and makes for better quality products. Says Ryder, “It’s nice to have that face time with the person that’s making your creation come to life.” Konovalova adds that the competition is also in New York and that helps to drive business forward. As she puts it, “there’s a saying that all roads go to Rome, but it’s the same with New York.”

Natalia’s Thoughts About Making it in America

1. In the beginning there’s a disadvantage not growing up in America and not understanding how the system works, but you can do it if you’re smart. Remember, no one is going to come and assist you and pay your rent.

2. In some ways, its actually easier here than in Uzbekistan. You see, I came from a country that had restrictions. Here in America, my challenge wasn’t overcoming restrictions; it was with myself, overcoming my fears.

3. You’ve got to be persistent to succeed. I’m very stubborn. I had to make it. There was no going back.

4. New York is not for everyone, but its a great place for fashion. You can go as far as you want to. It’s up to you.

5. Once in a while you’re reminded that you have an accent, but in the fashion world, it can be an advantage too!