360 Degree Branding for the 1%
Entrepreneur Adam I. Sandow launched the national consumer travel magazine Honeymoon when he was just 25 years old. He sold it then helped built the Internet start-up and wedding media company The Knot in 2000. The Honeymoon might be over but Sandow is still playing matchmaker. The “serial entrepreneur” recently acquired the worldwide rights to the edgy upscale Fred Segal brand, so expect to see an LA-inspired Fred Segal retail store near you (Tokyo first, Las Vegas second). Don’t believe it? Just look at his track record with Material ConneXion. The textile library once known only by New York interior designers just opened its eleventh library in Tokyo, and eight more locations are scheduled to open in China by 2015.
So how does Sandow do it? With lots of money of course. In May 2013, Prospect Capital gave Sandow Media $60 million to continue to grow. And he has plans to grow, quickly. Sandow doesn’t just acquire luxury lifestyle magazines like NewBeauty and Worth, he also buys the newsstands they sit on (including a network of 185 private airports nationwide), and is one of the first publishers whose magazines have been updated for iOS 7. Worth is certainly the most expensive business, finance and luxury magazine on newsstands with a cover price of $18.95. But don’t worry, its 125,000 American readers can afford it; 92% have a minimum net worth of more than $5 million. And if they need help decorating their homes and can’t decide from the array of luxury brand ads in Worth, they can also sign-up for Sandow’s LuxeBox. Delivered to the doors of homebuyers (spending $1 million or more), it’s an elegantly linen-wrapped package filled with top-notch designers, contractors, architects, engineers, landscapers; home goods goodies (monogrammed stationery and a limited edition Fred Segal cashmere-mix throw), and a two-year subscription to Sandow’s other magazines Luxe Interiors and Design.