http://www.bonobos.com/welcome/h7a
Andy Dunn, the co-founder and chief executive of Bonobos, fondly recalls hanging up 400 pairs of pants on the walls of his Gramercy apartment in 2007, when the Internet retailer was just getting off the ground.
Bonobos launched with the promise that it offered a better-fitting pair of men’s trousers. The Bonobos line has since expanded to include an array of colorful shirts, suits, swim wear, shorts and accessories.
Then, it was all about the pant — or, more specifically, the company’s signature, curved waistline designed for men with athletic builds.
Today, Bonobos is a full-fledged fashion label, operating from an office in the Flatiron district. It has 25 employees and a full menu of menswear, including fitted oxford dress shirts, wool cashmere suits and boat shoes.
“Feedback we’ve gotten from a lot of male shoppers since Bonobos started has indicated they wanted to know more about the clothes and how they fit before making a purchase,” said a Bonobos spokeswoman of the plan to open a Chicago showroom.
The company, started by Mr. Dunn and his Stanford Business School roommate, Brian Spaly, is also raising legitimate capital. On Thursday morning, Bonobos announced it had raised $18.5 million in a financing round, led by the venture capital firms Lightspeed Venture Partners and Accel Partners.
Jeremy Liew, a managing director at Lightspeed, and Sameer Gandhi, an Accel partner, will join the Bonobos board.
Although the first pair of Bonobos pants was sewn in Silicon Valley, the company’s success is rooted in Wall Street. The pants have found a cult following among young finance types who want something between the traditional Brooks Brothers cut and the thigh-hugging, slim-fit European style.
Mr. Dunn, a former private equity associate, said several customers from New York’s financial industry invested early. Prior to this latest round, the company had raised $7.75 million in angel funds from 75 individuals — with Wall Streeters representing 20 percent of the investors and 30 percent of the funds.
“Part of it was the downturn in the economy in 2008 and 2009 — they saw Bonobos as possibly a more interesting place to put their capital to work than some of the traditional investments,” Mr. Dunn said.
“I would meet with guys for coffee, and see what their enthusiasm was for the company, see what kind of advice they might have to be able to offer, based on the type of experience they had. A select few we invited into the company to become not only customers but investors, which was pretty cool.”
Although Bonobos are now sold throughout the country, Manhattan remains its largest market, accounting for one out of five pairs of pants sold.
Now, Bonobos, which sells exclusively online, will have to prove it has a truly scalable e-commerce business model.
As with some of its more successful counterparts, including Zappos, Mr. Dunn said that — beyond a flattering fit — his company if focused on obsessive customer service. The company, for example, offers free shipping and free life-time returns.
While those perks erode margins, Bonobos saves money by limiting its marketing budget. The company is heavily dependent on word of mouth, online ads and loyal customers.
Mr. Dunn says Bonobos currently has 32,000 customers, with a 50 percent rate of repeat purchases. After racking up $1.3 million in revenue last month, the company said it was on pace to reach $15 million in 2011.
Mr. Liew of Lightspeed — who has led investments in Kim Kardashian’s ShoeDazzle and LivingSocial, a Groupon competitor that recently raised $175 million from Amazon — said he was investing in companies like Bonobos because of the momentum in e-commerce.
While several years ago American customers were hesitant to buy most of their wares on the Web, today it has become de rigueur. For businesses, the online component is now seen as an essential tool for customer acquisition and retention.
“In fashion, having a direct relationship with customers, and being able to track it all the way through allows you to spend on marketing with confidence and you can’t do that tracking without that online experience,” Mr. Liew said.
Andy Dunn, the co-founder and chief executive of Bonobos, fondly recalls hanging up 400 pairs of pants on the walls of his Gramercy apartment in 2007, when the Internet retailer was just getting off the ground.
Bonobos launched with the promise that it offered a better-fitting pair of men’s trousers. The Bonobos line has since expanded to include an array of colorful shirts, suits, swim wear, shorts and accessories.
Then, it was all about the pant — or, more specifically, the company’s signature, curved waistline designed for men with athletic builds.
Today, Bonobos is a full-fledged fashion label, operating from an office in the Flatiron district. It has 25 employees and a full menu of menswear, including fitted oxford dress shirts, wool cashmere suits and boat shoes.
“Feedback we’ve gotten from a lot of male shoppers since Bonobos started has indicated they wanted to know more about the clothes and how they fit before making a purchase,” said a Bonobos spokeswoman of the plan to open a Chicago showroom.
The company, started by Mr. Dunn and his Stanford Business School roommate, Brian Spaly, is also raising legitimate capital. On Thursday morning, Bonobos announced it had raised $18.5 million in a financing round, led by the venture capital firms Lightspeed Venture Partners and Accel Partners.
Jeremy Liew, a managing director at Lightspeed, and Sameer Gandhi, an Accel partner, will join the Bonobos board.
Although the first pair of Bonobos pants was sewn in Silicon Valley, the company’s success is rooted in Wall Street. The pants have found a cult following among young finance types who want something between the traditional Brooks Brothers cut and the thigh-hugging, slim-fit European style.
Mr. Dunn, a former private equity associate, said several customers from New York’s financial industry invested early. Prior to this latest round, the company had raised $7.75 million in angel funds from 75 individuals — with Wall Streeters representing 20 percent of the investors and 30 percent of the funds.
“Part of it was the downturn in the economy in 2008 and 2009 — they saw Bonobos as possibly a more interesting place to put their capital to work than some of the traditional investments,” Mr. Dunn said.
“I would meet with guys for coffee, and see what their enthusiasm was for the company, see what kind of advice they might have to be able to offer, based on the type of experience they had. A select few we invited into the company to become not only customers but investors, which was pretty cool.”
Although Bonobos are now sold throughout the country, Manhattan remains its largest market, accounting for one out of five pairs of pants sold.
Now, Bonobos, which sells exclusively online, will have to prove it has a truly scalable e-commerce business model.
As with some of its more successful counterparts, including Zappos, Mr. Dunn said that — beyond a flattering fit — his company if focused on obsessive customer service. The company, for example, offers free shipping and free life-time returns.
While those perks erode margins, Bonobos saves money by limiting its marketing budget. The company is heavily dependent on word of mouth, online ads and loyal customers.
Mr. Dunn says Bonobos currently has 32,000 customers, with a 50 percent rate of repeat purchases. After racking up $1.3 million in revenue last month, the company said it was on pace to reach $15 million in 2011.
Mr. Liew of Lightspeed — who has led investments in Kim Kardashian’s ShoeDazzle and LivingSocial, a Groupon competitor that recently raised $175 million from Amazon — said he was investing in companies like Bonobos because of the momentum in e-commerce.
While several years ago American customers were hesitant to buy most of their wares on the Web, today it has become de rigueur. For businesses, the online component is now seen as an essential tool for customer acquisition and retention.
“In fashion, having a direct relationship with customers, and being able to track it all the way through allows you to spend on marketing with confidence and you can’t do that tracking without that online experience,” Mr. Liew said.
No comments:
Post a Comment