Bonobos (apparel)

Type	Private
Industry	Retail, Apparel, E-Commerce
Founder(s)	Andy Dunn and Brian Spaly
Founded	2007
Headquarters	New York City
Number of locations	11 (as of January 2015)
Website	bonobos.com

Bonobos is an e-commerce-driven apparel company headquartered in New York City that designs and sells men’s clothing. Bonobos offers a full line of pants, suits, denim, shirts, shorts, swim and outerwear. The company was founded by Stanford Business School housemates Andy Dunn and Brian Spaly, and launched exclusively online in 2007. In 2012, Bonobos' business model extended offline with the launch of their e-commerce stores called “Guideshops”^[1] and through a partnership with Nordstrom.

Bonobos was named “One of America’s Hottest Brands” by Advertising Age,^[2] “Best Men’s Pants” by New York Magazine,^[3] one of Inc. Magazine’s “20 Awesome Facebook Pages”,^[4] and was awarded Crain’s New York Business “Best Places to Work in New York City”.^[5]

History

The firm was founded by Brian Spaly who began designing men’s pants while at Stanford Business School. They featured a curved waistband, a medium rise and a tailored thigh that fit better and eliminated “khaki diaper butt.”^[6] As demand grew, he and housemate Andy Dunn^[7] decided to pursue the project as a business opportunity.

Initially, the brand was launched exclusively online.^[8] Dunn cashed in his 401K to build Bonobos.com and raised an angel round of investment. Initial investors included Wealthfront CEO and former venture capitalist, Andy Rachleff, and JetBlue Chairman and founding Bonobos board member Joel Peterson, both of whom had lectured Dunn at Stanford Business School. Dunn then moved to New York City with 400 pairs of pants that he picked, packed and shipped from his Union Square apartment.^[9] Within six months, the firm grew to five employees and a $1 million net revenue run rate. In its first three years, the company received over $7 million in funding from angel investors. In 2009, Spaly moved on to another venture, running the Chicago-based fashion commerce company Trunk Club.

In 2010, the company received its first institutionally-driven financing round, raising $18.5 million from Accel Partners and Lightspeed Venture Partners. As part of the round, Accel Partners’ Sameer Gandhi and Lightspeed Venture Partners’ Jeremy Liew joined Bonobos’ board.^[10]

As Bonobos expanded its assortment to include suits, dress shirts, outerwear and tailored pieces, more customers requested the opportunity to “try before they buy”. In fall 2011, the company tested an e-commerce store at their New York City headquarters, called The Guideshop.^[11] The purpose of the Guideshop was to provide a physical space for men to try on Bonobos prior to e-commerce transactions being placed. Within a year, the concept became an integral part of the firm's service and business model.^[12]

In 2012, Bonobos closed a $16.4 million strategic minority investment round led by Nordstrom,^[13] with participation from existing investors. In tandem, Bonobos partnered with Nordstrom^[14] to sell the brand’s clothing in their full-line stores and their website. Bonobos furthered its offline reach in May 2012, opening its first standalone Guideshop in Boston.^[15] By January 2013, Bonobos had opened additional Guideshops in Chicago,^[16] Georgetown^[17] and San Francisco.^[18]

Bonobos announced a $30 million round in 2013, with Glynn Capital and Mousse Partners joining existing investors Accel Partners, Lightspeed Venture Partners, Forerunner Ventures and Nordstrom. At this time, Forerunner’s Managing Partner Kirsten Green joined the Bonobos board and total funding to date reached nearly $73 million.^[19] Simultaneously, the company launched the golf brand Maide,^[20] which is the second brand launched by the Bonobos team. By August 2013, Bonobos had opened Guideshops on Crosby Street^[21] in New York City, Bethesda, MD,^[22] and Austin, TX,^[23] bringing Guideshop total count to eight. By August 2013 employee headcount reached 175.

Bonobos Ninjas

Bonobos ninjas are customer service representatives tasked with providing quality customer service for the company’s e-commerce site.^[24] Dunn conceptualized the name to attract college-educated qualified candidates to the job and to emphasize Bonobos’ desire to provide great customer service.^[25] Bonobos ninjas interact with customers through phone, email and social media.

Guideshops

The Bonobos Guideshop is an e-commerce store for men to shop the brand in person. Guideshops display the brand’s full offering of merchandise, with sizing samples available across categories for men to try on. Customers work individually with a Bonobos “Guide” who serves as a shopping and styling assistant. After each appointment, Guideshop visitors receive an email with their fit and style preferences. Customers can also purchase on-site at the Guideshop through the website. Bonobos Guideshops are located in Manhattans' Flatiron and SoHo districts, Boston, Chicago, Atlanta, San Francisco, Bethesda, Washington, D.C., Austin, Dallas and Houston and have been covered nationally and locally in The New York Times,^[26] USA Today,^[11] CNBC, WABC-TV,^[27] Crain’s New York Business,^[28] The Boston Globe,^[29] Chicago Sun Times,^[30] San Francisco Chronicle,^[31] among others.

Plans for a third New York City Guideshop location were announced in February 2014. The new location will be in the new Brookfield Place (former World Financial Center) development in lower Manhattan.^[32]

In October 2015, a new Guideshop opened in the newly developed River Oaks District^[33] in Houston.^[34]

Product

Bonobos designs, markets and sells multiple categories of men’s apparel for casual, business and formalwear occasions. Bonobos launched with pants and carries a wide selection of styles and fabrications such as denim, washed chino, wool, and corduroy. Today Bonobos’ categories include pants along with casual and dress shirts, suits and blazers, tees, knits, polos, outerwear, shorts, swim, ties, pocket squares and belts.

Technology

In early 2012, Bonobos opened a West Coast office to build a Silicon Valley-based technology team.^[35] After a year and half, Dunn realized that communication and efficiency would improve by eliminating bi-costal offices. In 2013 Bonobos, moved the technology arm to the New York City headquarters.^[36]

References