Four Trending Retailers to Watch
New York -- Blue Apron. Dollar Shave Club. Real Real. Honest Company. All start-ups, all relative newcomers to the retail scene, and all generating big buzz and sale increases — enough to place them among the top 20 fastest-growing e-retailers in a recent survey. What’s more, they are all pure players (at least for now).
Here’s a brief snapshot of these four up and comers:
• Blue Apron: A subscription service that helps busy consumers get a home-cooked meal on their table in no time, Blue Apron delivers boxes of perfectly-portioned fresh ingredients (with accompanying recipes) for three meals per week right to their customers’ doorsteps. (It also sells kitchenware.)
In June, the company, which delivers some three million meals per month, landed $135 million in Series D funding from Fidelity Management and Research Company, valuing the company at $2 billion. It plans to use the funding to enhance its supply chain and fulfillment logistics, which includes growing its network of farms, throughout the country.
• Dollar Shave Club: Think of it as a Birchbox for men. This monthly razor delivery service offers proof positive that a viral YouTube video can indeed launch a brand—and that clever use of social media and smart marketing can help create an online community.
Since attracting 12,000 subscribers in the 48 hours after its YouTube debut in 2012, the company has grown to some 1.5 million active subscribers. Along with razors, it now offers shaving cream, aftershave, wet wipes, and, most recently, hair care products.
Other new ventures: a men’s lifestyle site and expanded print product. Currently, it sends a small magazine, “The Bathroom Minute,” in its monthly package to subscribers. Dollar Shave Club also has a blog where it answers customer questions on health and hygiene. Founder and CEO Michael Dubin recently live-streamed his colonoscopy to raise cancer awareness.
• The RealReal: Authentication. That’s what helps luxury goods (think Chanel and Christian Louboutin) consignment retailer The RealReal stand out from competitors. The company inspects and authenticates its merchandise — women’s and men’s apparel, fine jewelry, watches, and art — before selling the goods, ensuring that customers don’t end up with designer knockoffs.
In addition, The RealReal, which claims 3.5 million members, offers “white glove pick-up” in major cities where associates will come to sellers’ (or “consignors”) homes to pick up their items. Claiming 3.5 million members, the company recently closed on $40 million in Series D funding, its largest round of financing to date, bringing its total raised to $83 million.
• The Honest Company: Actress Jessica Alba’s non-toxic, eco-friendly product brand is on fire. Starting out with diapers, the company’s wares now include baby formula, bath and body products, household cleaning products and more, with a feminine care line in the works. High quality standards, community outreach, educational and charitable initiatives have helped Honest Co. a mass a dedicated, almost cult-like following. Alba’s high-profile — she even lobbied before Congress to make the testing of children's clothing and toys for chemical inputs more stringent — is another plus.
While the bulk of sales occur on its website, Honest Co. also has a growing brick-and-mortar presence, with distribution in such retailers as Whole Foods Market, Destination Maternity and Nordstrom. And some reports have it scouting out its own store location.
The company has a current valuation of $1 billion, and reportedly will file to go public this year.