E-Tailor startups are trendscending the traditional brick and mortar retail industry by eliminating stores from the distribution cycle and shipping straight from the factory to the customers. By cutting through the “middle-men”, E-tailors are able to charge lower prices, yet still generate higher margins. Bonobos and J. Hilburn are two rising stars with potential for meteroric growth.
Like most start-ups, Bonobos was founded with one simple mission: to create pants that fit perfectly. Ready to wear pants are either too tight or too baggy. With innovative design changes, Bonobos has turned its simple mission into the largest U.S. clothing brand that was started online. With estimated sales of $15 million, the Company raised more than $38 million from 2 prominent investors, Accel and Lightspeed Ventures. The Company also closed a recent distribution deal with Nordstorms that will grant Bonobos retail space in 100 stores. Aside from an IPO a few years from now, I foresee an acquisition by Nordstroms, J. Crew, or Ralph Lauren in the future.