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The online space doesn’t have a lock on new retail concepts, but with its lower start-up costs and potential audience reach it has proved itself a great breeding ground for disruptive retailers.
Here’s a look at four innovative e-tailers that are generating buzz and revenue increases — enough to place them among the top 15 fastest-growing e-retailers in a recent study.*
Casper
Less is more for Casper, which launched a little over two years ago with only one SKU: a mattress made out of memory and latex foams. The material allows the product to be shipped inside a surprisingly small box (small enough to be delivered by bicycle courier in New York City). The mattress springs to life after the packaging is removed.
With sales estimated between a reported $100 and $150 million, Casper is credited with reenergizing the staid $14 billion mattress industry by making purchasing a mattress as painless as possible. Free shipping and a 100-day free trial period — Casper will pick the mattress up and give customers a full refund — go a long way in adding to the brand’s appeal. So do clever marketing and a strong focus on social media. Videos of customers “unboxing” their mattress are viral on You Tube.
Casper recently signed a deal with West Elm to sell its mattress in the home furnishing retailer’s 77 stores nationwide and on its web site. The upstart brand has opened an office in Berlin for European expansion, and it’s also expanding its product line. So far, it’s added pillow and a sheet set (both in one style only) to the mix.
Casper’s success has sparked increased interest in the category. One of the newer players to join the fray is Leesa, which donates one mattress to a shelter for every 10 it sells. Similar to Casper, it offers one mattress, which also comes in a box.
Everlane
A curated collection of in-house designed, modern basics for men and women. And “radical transparency.” That’s the offer at Everlane, which has been on upward trajectory since it launched five years ago. Sales grew 100% in 2015 — not bad for a company that does almost no advertising and offers no discounts.
With a tagline of “Know your factories. Know your costs. Always ask why,” Everlane is upfront about pricing. On its site, the retailer discloses how much it costs to make each item, breaking it down by materials, labor, duties and transport. It then compares its price to what the item would likely cost at a “traditional” retailer. Everlane is also transparent about the factories where its products are manufactured, taking a hands-on-approach to ensure each factory’s integrity.
The online retailer has made small forays into the physical space, opening pop-up “studios” and, most recently, a permanent showroom (complete with personal stylist) at its San Francisco headquarters. Currently, it is focused on expanding into new product categories and spicing up its minimalistic style aesthetic with some fashion elements.
Harry’s
Specializing in men’s razors and shaving items, Harry’s has been on an upward trajectory since it was launched in 2013 by two college friends (one, Jeff Raider, was a co-founder of Warby Parker). Customers can either sign on for a monthly subscription service or buy products at their own pace.
In a competitive niche, Harry’s stands with a vertically integrated business model. The company manufactures its products at a razor factory it purchased in Germany.
From its sleek packaging and product design to its overall messaging, Harry’s trades in sophistication. And quality. The company says its vertical model allows it to offer higher quality items at a good value. With a reported nearly 1 million subscribers, the company’s sales grew 400% in 2015.
Touch of Modern
Think flash sales are over? Think again. Launched in 2012, flash-sale ecommerce site Touch of Modern did an estimated $100 million in sales in 2015 — up 233.3% from 2014 — and claims 7 million customers.
Unlike most flash-sales sites, Touch of Modern is aimed mostly at men. It has a membership model and offers a curated selection of cool, one-of-a-kind in-season products from both well-known brands and up-and-coming designers. The selection ranges from clothing and watches to tech accessories and home goods, all with a cool edge.
*Internet Retailer 2016 Top 500 Guide