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A seemingly endless number of startups has attracted funds in recent years to make life easier for people with money to spend. They sell beautiful clothes, chic shoes, offices, on-demand car services, on-demand laundry services, on-demand cleaning services, anti-aging therapies. And it continues, again and again.
The vast majority of Americans are overlooked in the process. In 2015, the first percent of the United States accounted for 25 times more than families in the bottom 99 percent, a widening gap. Most families do not spend money to make their lives easier or more glamorous for themselves because they can not afford it. In addition, they are often too busy to think much about it.
There are rare exceptions for startups that address wealthier populations. One of the companies that comes to mind is Propel, a New York-based start-up whose application helps recipients of food stamps to improve their financial health. Yenko, a for-profit organization dedicated to improving graduation outcomes, is another example.
Now, an even more recent actor has come on the scene and his proposal makes sense for the many harbaded, overworked and budget-conscious families. Called Kids on 45th, the almost This two-year-old Seattle-based company bundles what it describes as being almost new clothes and adapted to the current season, and sends them to blind customers for a price much lower than what's expected. they would pay elsewhere, and require much less time. .
The company was linked to a Seattle mail store of the same name, in operation since 1989. Entrepreneur Elise Worthy describes it as a "cornerstone" of the local parent community, and she would know it. She decided to buy back the company two years ago, not only to keep it when she was about to close, but also to better understand how she could make it a scalable business. She also learned a lot, including that when mothers entered the store because their children had grown up too much in their clothes, they were not looking for anything specific. "They were just trying to solve a problem. They did not care if it was that pair or that pair; they just needed trousers.
This observation led to a revelation that Worthy could create an online business without creating an elaborate website with pictures and descriptions of clothing. In fact, she decided to create an anti-navigation experience that allows the customer to tell what sizes are needed, and what types of items (coats, pants, shirts), a phrase about her child's style, and what is all. This is quite counterintuitive to the current landscape of e-commerce. But a customer usually clicks on a few boxes and then waits for the number of items ordered to be received. Since each item costs between $ 3 and $ 4, he can only donate.
In fact, what makes Kids on 45th a business is that it saves a lot of money. In addition to not creating and maintaining a sophisticated and content-rich website, the company does not accept returns, which can prove to be an overwhelming expense for other concerns related to e-commerce . According to the National Retail Federation, clothing return rates are around 40% when products are purchased online.
The start-up, which offers clothing for newborns and children under 16, has also put in place systems that should allow it to adapt, including an exclusive distribution relationship with one of the rare aggregators of clothing economy of the country. After paying for clothes that this partner believes to be in a high quality condition – he has plenty of options, thanks to the more than 20 billion pounds of clothes that Americans donate each year – Kids on 45th puts his staff of 15 stylists at work. "We optimize for the mother who keeps both her mobile phone and her child," says Worthy. "We want her to check in in less than two minutes, then give us that hunting experience."
The children of the 45th have other goals. First, it's not charged per subscription, unlike some other startups that sell children's clothing, like Rockets of Awesome and Kidbox, and he insists it's not necessary. "We do not want to trap moms," says Worthy. "We'll send them reminder emails," she says, and they'll come back. "Our retention is comparable to that of companies that charge subscriptions. Moms return at the same rate on their own. "
The idea of ordering lots of children's clothing is also making its way. Just yesterday, Walmart announced its partnership with Kidbox to allow buyers to buy up to six different boxes each year. Each will include four to five items and will cost $ 48, the company said. According to Worthy, this is about the same average number of orders at Kids on 45, although the startup sends between 12 and 15 items for the same amount.
Not the last one, while Kids on 45th is unbridled, it is one of the biggest trends in the world at the moment: growing awareness of landfills across the United States is packed with textiles that can to be easily recycled, if there were more places. for that to go.
Admittedly, the young company has gained momentum. He says he has already shipped over half a million items just one year after launching his online business. She has also raised $ 3.3 million in seed funding. Yes VC, among its sponsors, Maveron, SoGal Ventures, Sesame Street Ventures Collaborative Fund, Liquid 2 VC and Brand Foundry Ventures. No doubt they are looking for returns, as VCs do. But it's also an investment for which they can feel good. After all, if Kids on 45th can intercept more and less used products around the world and use them wisely, more power.
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