They say fashion is cyclical – is "hippie attire" staging a comeback? – and a recent move by Boston-based custom clothing company Blank Label proves that transcends what people are wearing, and could apply to how they find the clothing to begin with.
"Having a physical footprint is the most ROI effective form of marketing."
Blank Label CEO Fan Bi announced the company raised a $1.1 million round, a notable milestone in any startup's story arch. But it's what the money is for that caught my attention.
"Having a physical footprint is the most ROI effective form of marketing," Bi told me. "Take what you spend in online banner, search and email ads, and offline print, boards, etc., and place it into opening experimental stores where you can create demand, capture demand, and also create emotional connections, and you’ll have a better return on your investment."
Blank Label, that is, is going back to retail's roots, focusing its efforts on opening brick-and-mortar locations in the hopes of cultivating a more engaging experience. It's "a key part of our future," said Bi.
The company relocated from Back Bay to Downtown Crossing last year. This round will assist in expansion to Washington D.C., Charlotte, North Carolina, and Dallas, Texas, in 2016.
Ministry of Supply, the teched-out local apparel company, recently renewed the lease on its Newbury Street location, while also opening a second spot in San Francisco. This trend of e-commerce brands going physical, Bi said, is "driven by the most funded, fastest-growing startup brands: Warby Parker, Bonobos, Birchbox, Etsy, Rent the Runway, Harry's, and wait for it, even Amazon."
As for that $1 million, Bi told me it was a non-traditional raise in the sense there was no lead investor.
"The catalyst was AngelList, which sent us out in two email blasts and all of sudden we had over 100 messages from investors to learn more," Bi said. "That created good momentum for us to get picked up in the Boston scene."
Investors include: Jennifer Lum, Drew Volpe of Locately, Mike Salguero of CustomMade, Art Papas of Bullhorn, Roy Rodenstein of TrueLens, Jeremy Levine of Bridge Boys, and Seth Lieberman of SnapApp.
Bi said the company will achieve profitability with this round.
This week, Blank Label releases its latest line, the company's first formal seasonal collection.
