Charles & Keith Brand HistoryStarting out as a ladies’ footwear store in Singapore’s Amara Shopping Centre in 1996, brothers Charles and Keith Wong ran the store just like any other shoe store – procuring China- and Malaysia-made shoes from the same wholesalers as their competitors and then retailing them in-store. However, just after a few months of running the business, they quickly observed that while selling wholesale shoes provided a cost advantage, the lack of uniqueness meant limited growth.This made them realize the potential of designing their own in-house products and creating a brand that consumers could identify with – leading to the creation of the Charles & Keith brand.The brothers opted to design their own shoes while selling them at affordable prices. Keith was responsible for designing the shoes while Charles managed sales. The brothers also made the business cost-efficient by buying directly from manufacturers instead of wholesalers. To retain the exclusivity of their products, the brothers ensured that these manufacturers would not produce and sell their shoes to other retailers. By 2000 and within just 4 years, all its products were designed in-house. As the business grew, the company cut out the middleman and began working directly with production factories.The brand also strategically planned and rapidly executed its global expansion strategy. In 1998, just 2 years after its store opening, it began its international operations by opening its first overseas store in Indonesia. In 2001, it opened its second overseas outlet in the Philippines. In 2004, Charles & Keith started expanding into the Middle East: first with Dubai, followed by Bahrain, Oman and Saudi Arabia. By 2008, Charles & Keith was already gaining revenue of USD 97 million, and this was expected to grow by 30% for the next 5 years before its acquisition.The company’s big break-through came in 2011. Amidst offerings from various private equity funds and high-net worth investors, the brand sold a 20% stake in the company for more than USD 23.5 million to L Capital Asia (later change name to L Catterton Asia), a private equity group owned primarily by French luxury conglomerate LVMH Group and Groupe Arnault, the private holding company of Bernard Arnault, LVMH’s chairman and CEO. Founded in 2001, L Catterton Asia is currently a USD 70 billion luxury conglomerate managing brands such as Christian Dior and Bulgari, with a recent leadership mandate to invest in “affordable luxury” below the price points of LVMH’s brands. The deal valued Charles & Keith at almost USD 158 million. When this sale was completed, the world has started to take notice of Charles & Keith.(Adapted from: https://shorturl.at/wNwhR)What can be inferred if Charles & Keith had continued to rely on wholesalers instead of manufacturers …