Investors believe that Warby Parker‘s future is so bright that it needs to wear shades–stylish, affordable shades.
Take for instance the Winston, a frame that “ties ’60s cool with 21st century bold” that can be fitted with prescriptive lenses for a price of $95. Compare that to retail prices that range into the hundreds.
Launched online early last year from scratch, Warby Parker leverages e-commerce to eliminate much of the overhead involved in operating a brick-and-mortar retail store and passes those savings on to customers. It’s a model that demonstrates the efficiencies that can be achieved in retail with an online model. And, the company’s early success shows that consumers have warmed to shopping for items online that they traditionally only would have been comfortable buying at a brick-and-mortar location.
Keen on the model, investors have just placed $12 million in Series A capital for the company in a round led by hedge fund Tiger Global, with participation from Menlo Ventures’ Talent Fund and previous investors First Round Capital, Lerer Ventures and Thrive Capital. The company previously raised $1.5 million. The funding was earlier reported by The New York Times.
Co-founder and co-Chief Executive Dave Gilboa said.
“One of our goals is to be the first major fashion brand to launch online while offering great value to customers.”
The trend is growing, as a few other fashion brands have also launched exclusively online, including menswear makers Bonobos, Indochino and J. Hilburn.
For a fashion brand, Warby Parker thinks a lot about technology. Gilboa said.
“We view ourselves as a technology-enabled brand.”
The new funding will be used to hire engineers who can build “the best e-commerce functionality out there.”
The site currently allows customers to use a webcam or upload a picture to virtually try on glasses. Gilboa said shopping for eyewear is by nature a social experience and the company is working on tools for customers to share different looks with friends to get feedback.
Warby Parker also offers a home try-on program in which it sends a customer five pairs of glasses to try on at home.
The company has plans to use the new funding to bolster its supply chain to keep up with great early demand.
“It’s been a really wild ride,” Gilboa said. “We’ve grown faster than we could have ever imagined.
COMMENTARY:
A New Concept in Eyewear
Warby Parker was founded with a rebellious spirit and a lofty objective: to create boutique-quality, classically crafted eyewear at a revolutionary price point.
A collaboration between four close friends, Warby Parker was conceived as an alternative to the overpriced and bland eyewear available today. Prescription eyewear simply should not cost $300+. The industry is controlled by a few large companies that have kept prices artificially high, reaping huge profits from consumers who have no other options. By circumventing traditional channels and engaging with our customers directly through our website, Warby Parker is able to provide higher-quality, better looking prescription eyewear for under $100.
Warby Parker meticulously crafted their first collection of 27 limited run styles, plus one monocle, using only the finest custom acetates and materials. The Warby Parker aesthetic is vintage-inspired, with a fashion forward twist - and every pair is custom fit with anti-reflective, polycarbonate prescription lenses. Available exclusively through the Warby Parker website for $95 a pair.
Eyewear with a Purpose
One billion people don’t have access to glasses, which means that 15% of the world’s population is unable to effectively learn or work because they can’t see clearly.
Glasses Increase One’s Income By 20%
That’s the equivalent of creating an extra day’s work each week. Glasses are one of the most effective poverty alleviation tools in the world.
Warby Parker Has Distributed Over 50,000 Pairs
Glasses distributed by Warby Parker to people in need enable them to become productive members of their families and communities.
Warber Darby believes that everyone has the right to see. Unfortunately, millions of people around the world today don’t have access to proper vision care. To help address this problem, Warby Parker partners with renowned non-profits, such as RestoringVision.org, to deliver one pair of glasses to someone in need for every pair that we sell. In doing so, we enable you to share the gift of vision with someone who can’t see today and give them the opportunity to read, to work and to live a fuller life.
Why Was The Company Named Warby Parker?
The company was inspired by the master wordsmith and pop culture icon, Mr. Jack Kerouac. Two of his earliest characters, recently uncovered in his personal journals, bore the names Zagg Parker and Warby Pepper. We took the best from each and made it our name.
The company hopes their new glasses will provide all the style they need to travel their road with class, and their price will leave them with some extra cash to use on their journey.
Virtual Try-on
I tried o9ut Warby Parker's Virtual Try-On feature, and after uploading an image of myself and adjusting the frames on my face, this is the result:
The Virtual Try-On feature automatically sets the eyeglass frame in the right place, but you are able to adjust the placement slightly so that it rests properly. My only complaint about Virtual Try-On is that it can be a bit time consuming compared to a regular eyewear shop, where you can view and try-0n as large variety of frames very quickly.
Limited Selection
Warby Parker presently provides only 25-30 frame styles (men and women) to choose from. Frames come only in plastic and there are no metal or wire frames. Sunglass frames come in only 6-10 styles (men and women).
Marketing Strategy
I like the social cause-related marketing strategy of "buy a par, give a pair". The low $95 price per pair (including the lenses) plus FREE shipping is going to be popular once the word gets out. Going direct-to-consumer via their own ecommerce website, the Virtual Try-On feature and eliminating the middle man is a great strategy.
Still, Warby Parker customers have a very limited selection of frame styles (no metalic frames) to choose from, customers still need to go to an optometrist and obtain a prescription. Warby Parker has to prove they can provide personalized service equal to that offered in a store or optometrist office. The company will have to sell in large volume to make any money.
Their website claims they have given away 50,000 pairs of glasses, which means they have sold an equal number. That's not a lot of volume, but the concept appears to be promissing. Having said this, I am surprised that the three venture capital firms forked up $12 million. It's a bit too experimental and there are competitors, and the one-stop eyewear chains may do the same thing and kick the crap out of them with their broader selection and personalized service
Courtesy of an article dated September 22, 2011 appearing in The Wall Street Journal's Venture Capital Dispatch
The try on program sounds like a great idea.
Posted by: retro vintage eyeglasses and frames | 01/06/2012 at 10:11 AM
The wayfarer frames are sweet! Great eye wear collections you have here. Good luck with business!
Posted by: Yasmin Jane | 09/28/2011 at 09:48 PM