Bonobos trousers chairman and co-founder Brian Spaly, left, and CEO and co-founder Andy Dunn at their company's headquarters in New York.
Andy Dunn doesn't seem like the usual suspect to lead a fashion revolution. At 31, the energetic MBA from Stanford has experience at Bain & Co., but never worked in the apparel industry. He studied economics and history, but has no background in design. He's as passionate about falafel, beef jerky, and premium South American rum as he is about clothing, and, most of all, he hates to shop. "When I'm in a retail store I feel like my soul is getting sucked out of me," says Dunn, who believes most men feel the same way.
Dunn and his Stanford housemate and best friend Brian Spaly co-founded Bonobos — whimsically named after a particularly promiscuous primate — in 2007 with a vision to do men's clothing differently. The company is firmly focused on fit (Spaly designed the pants with a curved waistband and slimmer thighs to prevent the bunching of fabric in the rear, or "khaki diaper butt"), but the slacks, which come in a rainbow of colors beyond khaki, cannot be tried on in stores. Everything is done through the Web, though this isn't just Zappos for nice pants. Bonobos is now launching a plan to bring "mobile fit pods", or portable, collapsible, dressing rooms to airports, train stations, corporations, college tailgates, beach parties, and farmer's markets — wherever the potential customers are — to get guys measured by its experts (so-called style ninjas), who will then direct them to the website.
Bonobos's web site and pop up fitting rooms have entirely eradicated the brand's need for leases, sales staff, and distribution. "The concept has such validity in today's world," says Maxine Martens, the CEO of fashion industry search firm Martens & Heads, and an investor in the company. In 2009, a retail environment that saw shrinking sales, reduced traffic, store closures, and bankruptcies, Bonobos tripled its business, earning $4.9 million in gross sales. And even though the pants aren't cheap, ($88-$195 a pair), Dunn says there's enough appeal to double business this year.
Once spurned by venture capitalists and industry experts as unwise to launch a new clothing venture entirely online without a bricks-and-mortar presence to help bolster the brand, Bonobos's unlikely idea is receiving vindication. In the past two months, the New York-based outfit raised $2 million from angel investors and Joel Peterson, the chairman of JetBlue, joined the board, saying Dunn "has the same sort of creativity, commitment and confidence that David Neeleman showed in launching JetBlue." The 24-person company has wooed key hires from Club Monaco, Old Navy, and Apple, who also see promise for the new way. "The traditional retail model is broken, says Steven La Guardia, the former the CEO of Bally, who recently signed on as chief merchandising consultant. "Andy being 31 with a lack of industry experience is probably fortuitous. Not knowing all the rules means he can break all of them."
Dunn has bent the rules when it comes to what men will wear. In addition to promoting a more snug fit, Bonobos has amped the traditional pants palette with "mint julep," and "pink party starters". ("They go with just about everything that khakis do... they just start with a lot more fire.") But it's really customer experience that may be the biggest change in the game. Customers are encouraged to buy several pairs and try different sizes. There's nothing to lose: Bonobos picks up all shipping costs and offers lifetime returns. In addition, the ninjas, college-educated fashionistas who are invested in the brand (literally, everyone in the company has equity), are available by e-mail, telephone and video chat. (The ninjas also call every new customer after the shipment is received to ensure the pants are loved.)
Troy Hooper, 27, Minneapolis based financial analyst, and owner of 19 pairs of Bonobos pants (including the mint ones), says he emails or tweets with the ninjas several times a week on both Bonobos and non-Bonobos related business (such as the ninjas love of the fast food restaurant chain Chipotle). "It's almost like they are my friends. These guys they make me feel like I am part of the company even though I am just a customer," says Hooper. Another devotee, Michael Loughman, 43, of Grand Rapids, Mich., who has five pairs of Bonobos, says he has visited the Ninjas in the office — twice.