Peter – interesting company. I haven’t purchased too many custom shirts, but when I have gone the custom route: price, turnaround time and fit have all often disappointed. I’ll give Stantt a whirl to test it out, and if they can deliver, they’ll definitely have a repeat buyer.
After learning about Bonobos, however, I worry about the market size and path to profitability for these fit-focused companies that are targeting urban young-professionals. The value proposition resonates well with me, and I am willing to pay a premium for style and fit. However, I wonder about their ability to expand beyond a core demographic and appeal to the ‘general population’ who might value convenience and price over fit. Even if they can capture the market, I wonder whether Stantt has the operational foundation remain differentiated as fit captures the minds of the masses. I am curious how much of their process is labor vs. capital intensive and whether they will be able to find a more operationally efficient way to produce 75 sizes than a better capitalized competitor (say GAP) might if they decided to make a move into custom sizing.
Ranime, Rob here. I also love Pinkberry and enjoyed thinking about the drivers behind the Company’s success. I am slightly more bullish than David and Ching-Ching on their long-term viability. I think that the Company’s simplified menu and premium posting have allowed them to create a very strong brand behind a consistent customer experience. Unlike Cupcake stores, ice cream stores have been a staple of many an American town for decades. I believe that Pinkberry has repackaged this guilty pleasure into a hip, healthy indulgence and the stores ubiquity and operating elegance will give them staying power.
Amanda – Great read, thanks for posting! I very much admire the Company for its consistency in purpose through promoting a sustainable product and creating it with sustainable manufacturing practices. Like many early moving consumer products companies, I have to admit I’m fearful that they will not be able to sustain their fantastic growth over the long-term. They were lucky to time their expansion with greater consumer awareness and affinity for sustainability and managed to differentiate through attractive design. I worry that the product penetration can be copied. Their brand ethos and authenticity, however, might be able to drive their continued success. Prak mentions advertising, and I wonder if we will start to see the Company commit to more advertising to sustain growth, develop the brand and stave off competition.