The future of online business lies in the subscription service model and even tech giants like Microsoft and Google have realized this. Apart from the obvious benefit of assured revenue, subscription commerce mostly has low upfront costs.
The benefits of the subscription model are not only limited to Web 2.0 companies, even retail business can benefit. And Bombfell is steadily proving this.
When it comes to dressing, most men just don’t get it right. For those in the Valley, scenes of hippie males in dirty jeans and hoodies are familiar. It is something that has become a norm in the tech community. But this does not have to be the case and Bombfell is here to prove it.
Bombfell opened to the public in November 2012 and is steadily growing as a concierge services website that helps men to dress well. The concept is simple; sign up at the website, indicate your dressing preferences and body details, choose a type of subscription you want and wait for handpicked clothes on a regular basis.
Bombfell targets the male market and takes the guesswork out of fashionable clothing. The company is not just another discount online mart. Users get high quality clothes from well known brands such as French Connection, Ben Sherman and Original Penguin. There are also clothes from specialist brands like Farm Tactics and Descendant of Thieves.
Bombfell offers users three subscription options. These are the Essential (up to $69 per item), Premium (up to $129 per item), and Luxury (up to $19 per item).
a) Essential Option. Users who sign up for the Essential package receive high quality button-up, a pair of jeans or shorts, chinos tees, and polos from leading menswear designers every month. This is the perfect package for those looking to upgrade their wardrobes and test Bombfell’s subscription service.
b) Premium Option. This package entitles customers to premium brand selection and more variety of clothes. With a budget of up to $129 per item, users can get dress pants, sweaters and some outerwear from a range of premium brands.
c) Luxury Option. This option includes even more varieties in the form of designer jeans, jackets, blazers and other outerwear from leading menswear brands.
Bombfell uses complex algorithm to pick clothes that match your profile. The information that you indicate on your profile is used to determine the clothes you will receive. If you do not want clothes from certain brands, you can indicate that in your profile for them not to be considered during selection.
Before an order is sent, users receive a preview email of the shipment and have 2 days to approve or cancel the order and ask for another pick. The items are then shipped for free within 2 to 10 business days from the date of the presumed approval.
Bombfell offers free shipping both ways. Returns can be made within 10 days of receiving the clothes as long as they are unused, unwashed and unworn.
Churn is a metric that any subscription service company should closely watch and according to Bombfell’s co-founder Bernie Yoo, the company’s return rate is at the low end of e-commerce average. Initial reports also indicate that the average lifetime value of customers at the website is more than $500. This means on average customers are staying for six to seven months, assuming they are signing up for the low priced Essential package.
Incubated in the 500 Startups accelerator in 2012, Bombfell has expanded and moved to New York to be closer to the manufacturers. The company recently raised $730,000 in seed funding.