The sock brand Bombas is known as one of the OG DTC brands of the 2010s. But in the last year, new CEO Jason LaRose has been pushing the brand in new directions, opening three brand stores and striking deals with big retailers like Target and DSW.
For LaRose, it’s part of an overall shift toward a more omnichannel-focused strategy, in which physical stores and wholesale accounts bolster the direct business. It’s also a growth period for the company, as it has launched new lines like the performance-focused Bombas Sport, partnered with athletic leagues like U.S. Figure Skating and hit over $500 million in sales.
LaRose, speaking at Glossy’s E-commerce Summit in Miami last week, told Glossy that expanding into new channels is a necessity for the brand’s growth these days.
“Your multi-channel customers are your most valuable customers,” he said. “And the stores open up interesting new opportunities. Our kids’ business is a relatively small portion compared to other categories, but in-store, the kids’ business actually spikes because it’s exposed. You see it even if you’re not looking for it. When you see the baby socks in the store, it’s hard not to think of someone you know who might like them. So it helps us expose more of our assortment.”
LaRose also said that establishing a healthy direct business online and in-store first is great reassurance when entering negotiations with large retailers.
“We have 93% direct-to-consumer [sales],” LaRose said. “If a retailer comes to me and says, ‘We need you to do 30% off discounts every day,’ I can say, ‘Great, send me my stuff back.’ We can walk away.”
LaRose said that, whether it’s through discounting or another form, brands always have to invest their own money into a retail partner. Brands can’t always avoid investing, but they can influence where they put their dollars.
“There are only so many dollars to go around,” he said. “So are you investing them in store discounting, in-store fixtures dedicated to your brand or margin assistance? You will have to invest in your wholesale partners. We choose to spend it on things like co-marketing and fixtures, things that will enhance the brand from a premium perspective.”
Bombas has stuck with its “buy-one, donate-one” model for over a decade, even as companies with similar promises like Toms have pulled back. Bombas has a vp of giving, Kelly Cobb, who reports the amount of socks donated alongside the rest of the company’s internal financials.
Bombas just surpassed 200 million pairs donated earlier this year. LaRose said that, unlike many companies where the brand’s mission is secondary to the product, 73% of Bombas consumers are aware of the brand’s donation model.
“It definitely plays a role in acquisition,” LaRose said. “If a customer is on the fence, they might try our socks because we’re also donating them to people experiencing homelessness. Obviously, the product still has to be good. We don’t hit people every day with an email about it, but as we keep crossing milestones like 200 million, we plan campaigns around them, and it does contribute to our CRM.”
