Warby is one of several direct-to-consumer brands, such as AllBirds and Fabletics, set to debut in the coming months. The companies aim to take advantage of high valuations for tech companies and strong interest in consumer names. Neil Blumenthal And Dave Gilboa, Warby’s co-founders and CEOs talk about how the brand got here and what comes next, reports the DealBook newsletter.
On development during a pandemic
Warby sales up 6% in 2020, outperforming rivals like its parent ray ben, EssilorLuxottica, whose sales fell in double digits in the same period. “Warby’s mix of online and in-store sales enabled us to take market share, even during the year we were budding,” Blumenthal said. But it came at a cost: The company’s marketing spend grew to 19% of sales in 2020, up from 13% the previous year.
On marrying a digital business with a growing physical presence.
Warby was one of the first brands born online that sought to combine the brand awareness that came from stores with the reach of digital sales. (It was founded in 2010, opened its first dedicated store in 2013 and now has 145 retail outlets, with plans to open more.) Warby generated about two-thirds of its revenue in stores before the pandemic, But due to the mix of in-person and various restrictions, online sales are now closer to 50-50. For the ideal mix, the company is “channel agnostic,” Gilboa said.
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On the rush of direct-to-consumer brands going public
“Clearly, a lot of companies that have raised money are looking to reach a wider investor base,” Blumenthal said, seeking to separate Warby — whose direct listings will not raise new funds — from others. . According to Renaissance Capital, 12 Internet retail companies have gone public so far this year, compared to nine last year. These and related retail names have had mixed performance: Shares of Jessica Alba’s wellness brand, The Honest Company, are down 53% since listing, while upmarket scrub company Figs is up 29%.
This story originally appeared in The New York Times