How Digital Native, Bonobos Grew into a National Brand
Photo of a Bonobos Guideshop
If you have ever been on the hunt for a nice fitting pair of pants either for yourself or for a loved one you may have shopped at menswear retailer Bonobos. Like many brands Bonobos started from humble beginnings by selling just pants, pants that fit better than most. The founders, Andy Dunn and Brian Spaly sold pants designed by Spaly out of the back of their car and at house parties in the beginning. “So here we were running around school having guys try on pants. Guys are like dropping their pants behind parked cars and trees, giving us checks and cash to buy the product. At some point we woke up and we had tens of thousands of dollars from selling pants and that's when you can kind of humbly say to yourself, 'Maybe we're on to something.'”
After selling thousands of dollars in merchandise in a haphazard fashion the co-founders launched Bonobos’ direct to consumer website in 2007. Within the first six months online the brand projected it would make a million dollars within the first year alone. After a year and a half of growth Bonobos started to think about expanding into new categories. One of those categories was men’s shirts.
While men’s shirts sounded like a logical next step Bonobos found it wasn’t having the success it expected in selling that product online. Bonobos realized it might be easier to move the product by having a physical presence. Bonobos then opened a small fitting room within the lobby of its headquarters where customers could try on shirts. Sales picked up after customers were able to touch, feel and try on merchandise.
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Building on the success of selling out of its headquarters in 2011 Bonobos opened its first physical store location called a “guideshop”. Guideshops carry all sizes and colours offered within each style of merchandise sold by Bonobos. The store is essentially a clothing showroom where customers can look at and try on merchandise for size and fit. If a customer likes what they try on they can have their purchases shipped to their home. Customers shopping at a guideshop are also provided with the assistance of a stylist who helps the customer find the right item with the right fit.
Speaking about its guideshops, Dunn has said: “you don’t have anyone manning a stockroom or playing defense against changing rooms where customers are dumping inventory in a corner. You don’t have the same folding nightmare or visual presentations nightmare.” Bonobos now has more than 60 guideshops.
Not too long after moving offline, Bonobos struck a deal in 2012 to sell its merchandise at Nordstrom. Speaking about the need to have a physical presence Dunn said the brand's "most profitable business" is its partnership with Nordstrom where Bonobos clothing is sold in Nordstrom stores. In the past Dunn has said that Nordstrom and its guideshops fund the losses from Bonobos’ eCommerce business. Dunn has also said that e-commerce is a "tremendously challenging, frequently unprofitable business." Bonobos was purchased by Walmart for $310 million in 2017 and now Bonobos clothing can also be found at Walmart.