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Business sends personalised outfits to men that hate to shop
Guys don't like searching for clothes.
That's the maxim inspiring start-up Trunk Club,[link widoczny dla zalogowanych], headed by CEO Brian Spaly,[link widoczny dla zalogowanych], who was formerly co-founder of online clothing brand Bonobos. Or at best men don't like going to the mall, locating the fitting room,[link widoczny dla zalogowanych], schlepping round the store,[link widoczny dla zalogowanych], and never finding something that like. However, a corner Club's target demographic does like clothes. However they generally don't think of shopping as entertainment, whereas a lot of women enjoy shopping as essentially a form of entertainment,[link widoczny dla zalogowanych], Spaly says.
This is where Chicago-based Trunk Club comes in. Trunk Club,[link widoczny dla zalogowanych], that has just raised $11 million in new venture financing, is an online personalized shopping service. When you sign up, you get a personal stylist, who will call or email you to identify out what you are thinking about. A couple days later, you'll get a trunk of clothes in the mail. You retain and purchase what you need and send the rest back without any shipping charges. Stylists are available to email or talk on Skype about what works and what doesn't, Spaly says. The personalization factor is important. The stylist will find certain brands that fit better for various body types,[link widoczny dla zalogowanych], he adds.
Trunk Club is one of a number of clothing-focused venture-backed ecommerce start-ups,[link widoczny dla zalogowanych]. Shoe Dazzle is another subscription business but targets shoes for ladies. Bonobos is really a men's clothing company best known for perfect fitting pants.
Trunk Club presently has a lot more than 3,500 customers. The style is "upscale casual" Spaly says,[link widoczny dla zalogowanych], items which work great quality but not luxury," in the same general economic category like a Nordstrom customer. Shirts might opt for $75 or $175 or $225 an item and can be tailored to each person's price. Brands could include Jack Spade, John Varavatos,[link widoczny dla zalogowanych], AG Jeans or Fidelity Denim. It is a subscription business, and Trunk Club will be sending a trunk on average every two or three months,[link widoczny dla zalogowanych], but can vary that based on what a customers needs.
Unlike other flash sales sites like Gilt Groupe, Trunk Club does not provide discounted items. It's essentially a retail clothing site with retail prices, having a personalized stylist on the top. The idea is that busy professionals can pay full price for that benefit of having precisely what they want sent to them. The organization does not have to pay for the costs of brick and mortar stores, and also the idea may be the company will discover more long-term loyal customers by developing a personal relationship with them,[link widoczny dla zalogowanych], Spaly says. "We're really hoping to develop a valuable relationship with this particular guy," Splay says. "And our experience continues to be that vendors really want to use us simply because they like the fact that we promote their brand to guys that are harder to locate otherwise."
Those difficult to find guys are the ones that don't go shopping, don't necessarily read magazines. The prospective is not early adopters who use sites like Gilt Groupe,[link widoczny dla zalogowanych], it's more doctors and lawyers, Spaly says.
The risks within this business are like other retailers, since the Trunk Club doesn't buy on consignment, it buys everything it sells to its customers. When I asked Spaly in which the company keeps all the clothing, he said it's on racks alongside his desk and all over the company's office. So the risk could it be gets tied to inventory.
That's scary to some venture firms. Venture Partners with participation from Greycroft Partners, Apex Venture Partners and Anthos Capital. The organization convinced these firms it has a differentiated product. "Inventory scares VCs," Spaly says. The funding will enable the company to develop its technology to do things like better analyze what clothing appeals to particular users.
Since Spaly previously co-founded Bonobos, he says its somewhat much like Bonobos in some of the marekting, customer acquisition,[link widoczny dla zalogowanych], logistics and operations,[link widoczny dla zalogowanych], but Trunk Club is not designing and manufacturing clothing.
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