Kate Middleton's Engagement Dress Led To The Downfall Of The Fashion Company That Created It

Catherine, Princess of Wales, helped Issa, a clothing brand, make a mark in the global fashion world when she wore a dress from its collection during her engagement announcement interview with William, Prince of Wales, in 2010. The "Kate Effect" was born, highlighting Kate Middleton's influence on thousands of consumers to purchase her fashion choices, among other things. Kate's engagement dress — a blue silk jersey wrap frock — was sold out just five minutes after the public learned where the then-bride-to-be purchased it. But it was that same popularity is what was the beginning of the company's downfall. 

Daniella Helayel, the Brazilian-born designer behind the brand, said several Hollywood celebrities had already worn her collection, including Madonna, Scarlett Johansson, Eva Mendes and Jennifer Lopez, but Kate had the biggest influence in her company. "Issa was a niche brand, we had a loyal following, but in 2008 and 2009, we were in serious financial trouble," Helayel told Daily Mail. "When Kate wore that dress everything changed."

Worn #onthisday in 2010 by Kate Middleton when she and Prince William announced their engagement. The silk jersey wrap dress–by Brazilian designer Daniella Helayel for Issa–sold out within minutes. The label soon foundered, a casualty of the "Kate Effect." #OTD @KensingtonRoyal pic.twitter.com/Vtov9SXDXK

— Worn On This Day (@WornOnThisDay) November 16, 2018

​​The fashion designer said Kate's engagement frock was her "bestselling dress" and was reordered "countless times." Unfortunately, the same "Kate Effect" brought the company down because while their sales doubled, the company could not sustain the large-scale production cost. Banks turned down Helayel's credit request, forcing her to find an investor. She admitted that she was compelled to sell a portion of the company to support its growth, but the move led to its eventual demise.

Kate Middleton's style has changed through the years, but her engagement look was iconic, hence the increased demand for it. Daniella Helayel sold a 51 percent stake in her business to Camilla Al-Fayed, whom she had known since Al-Fayed was 19, to fund the production. The partnership started well and she loved how organized Al-Fayed was. However, when a new CEO was hired in 2012, the business moved in a direction that didn't work for the founder. In May 2013, she quit as Issa's creative director. Two years later, the business was closed.

Helayel said she was so stressed at the time that her hair was falling, and she was "broken" after witnessing how the business she had built for over 10 years ended the way it did. "To watch it evaporate was heartbreaking," Helayel added. She stopped designing for two years and only returned to her craft when she regained her inspiration, which gave birth to her new line Dhela.

In 2017, Al-Fayed sold the Issa label to the House of Fraser. The brand's collection has been relaunched at a more reasonable price, but its signature silky drape that gives it a touch of sophistication remains.

Aside from Issa, fashion line Reiss also enjoyed the benefits of the "Kate Effect." David Reiss, the brand's founder, said they received tons of inquiries when Kate Middleton was photographed wearing their Nanette and Shola dresses. The interest in the Shola dress was so intense that their web traffic surged and their site crashed. Jet Shenkman, the founder of Eponine London, also said the first time the Princess of Wales was spotted wearing their design was unforgettable because it "put our tiny business on a broader map," per Woman Magazine. 

Whatever Middleton wears, be it a pair of jeans, casual dresses or ball gowns, many have shown interest in her fashion choices. For instance, the sequined dress she wore at the "No Time To Die" premiere prompted an 809% increase in "gold sequined dress" searches. The "Kate Effect" is transformative because the public is interested in the Duchess of Cambridge's fashion choices and approves of them most of the time, which is favorable to the brands behind her outfits. "When someone like the Duchess of Cambridge wears your brand, it fills you with immense pride," Francesca Kelly and Marianna Doyle, founders of Soru said (via Woman Magazine). "She opened our brand up to the international market and gave us great exposure around the globe."

The "Kate Effect" is formidable and her children have seemingly inherited the same influence. Prince George and Princess Charlotte are also seen as fashion icons for having the same effects on the consumers.