Next-Gen Retail? Hointer, Bonobos, And Dollar Shave Club

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Creativity abounds in today’s retail world. Whether online or in bricks-and-mortar, companies and people are creating new, innovative ways
to bring their brands and visions to life. More importantly, they are redefining how customer acquisition can be achieved, often completely changing the playing field.

One doesn’t have to look far to see creative, cutting-edge models that have merged the latest styles with technology to define the next
generation shopping experience while also building a brand.
Zara, H&M and Uniqlo showed us how very different retail models can have the same successful result.
Bonobos, Hointer and Dollar Shave Club are part of a new wave of retailers which are leveraging technology to turn the status quo upside down.
Let’s take a look at how each of these companies is creating a paradigm shift in the retail world:
Bonobos – Embracing Showrooming
Over the past year or two, “showrooming” has grown to be a formidable challenge for retailers. It’s gotten to the point where, just last week, a company in Australia posted a sign notifying customers that they would be charged $5 for in-store browsing if they left without buying anything.
But one company, Bonobos, has embraced the concept of showrooming, and it is now integral to their business model. Originally an online-only men’s clothing shop, and technically still is, Bonobos CEO and co-founder Andy Dunn was steadfast in his desire to remain strictly online. However, he realized that about half of would-be customers would not order apparel online because they wanted to feel the merchandise. The solution? Guideshop. The concept is simple: you make an appointment, try on what you want, place the order online while in the shop, and it shows up at your home. The space has minimal inventory and uses the website as a virtual back room.
Bonobos originally based its business on a technology solution it built in-house, which was focused on personalization. Today, the company is aligned behind the idea that it’s not a tech company that happens to sell pants; it’s a fashion company that sells through tech channels.
Hointer – Hi-Tech Jeans
There is a common perception that men simply don’t like to shop. Of course, one need only walk past an Apple store before the launch of a new product to see this theory blown out of the water. But clothing is a different story.
Enter Hointer. A mix of robotics, mobile technology, fashion and hassle-free shopping, all within a bricks-and-mortar store. Selling predominately men’s jeans, Dr. Nadia Shouraboura, former head of supply chain at Amazon, has merged technology with men’s fashion, in this case jeans, to make shopping painless and effortless.
Jeans are presented hanging from their belt buckle, and there are close to 150 styles to choose from. No bulky stacks of jeans to sift through here. But you see only one of each style. When you see a style you like, you pull out your smart phone and launch the Hointer app. After scanning the item you want, you are prompted to choose a color and size. The app sends a message over the internet to a robotic system in the stock room. The correct style and size is located, and tension cables drop it into a basket in one of the shop’s six large dressing rooms. The app tells you the specific dressing room in which you will find your jeans. If the jeans fit, you put them in a bag, scan your credit card and walk out the door.
Ms. Shouraboura is upbeat about the future of this model. “Soon, every item in the world will be sold like this,” she says. “It will be bigger than Amazon.” She plans to expand the assortment to men’s shirts and shoes. And yes, even some women hate to shop, so a sister shop is in the works called Hointress.
Dollar Shave Club – E-Commerce 2.0
Several online-only retailers have become household names over the last several years: Amazon, eBay and Dell are three of the biggest.  Considered first generation e-commerce companies, their goal was to move retail goods to online distribution.

E-Comm 2.0 brands represent a new movement in e-commerce, a generation that is focused on the vertical integration of manufacturing, branding, and distribution—while upending the traditional retail model in the process.
Dollar Shave Club exemplifies the emergence of the “Online-Only Brand.” This was the launch of a new brand; a competitor to the Schicks of the world; a new alternative to your trusty Mach III. The concept is simple. Select the razor you want and for as little as a dollar a month, Dollar Shave Club will send you new razors every month. If you haven’t seen their video, it’s a must see. Almost 20,000 people laid down their credit cards in the first week alone, proving the investors and inventors of this company were on to something.
Whether it’s underwear from MeUndies, retro glasses from Warby Parker or luxury soft t-shirts from Everlane, online brands with an irreverent disregard for retail are popping up in every category imaginable. Everlane CEO Michael Preysman told the New York Times “We are going to shut the company down before we go to physical retail.”
The rise of the online-only brand marks a new generation of e-commerce. For consumers, it represents the advent of more affordable, higher-quality brands that will come to replace many things previously purchased through traditional retail.
All of these new business models are examples of retailers listening to their customers and understanding how they want to shop.  Rather than trying to re-condition the consumer (e.g. JC Penney), they are embracing consumers and are using technology to build supply chains around their wants and needs.
Ultimately, if the retailer does not have what the consumer is interested in buying, their business model is worthless.
Even these “next generation” retailers still need to make buy commitments on new products before sales history is available.  Integrating technology into the design and buy process creates an opportunity for all retailers to distance themselves from their competition.