... [+]The last thing consumers needed in 2016 was another kids fashion brand. But former Gymboree CEO Matt McCauley came out of retirement when he saw an opportunity for classic, heirloom clothes that would be passed to the next generation, rather than the landfill. He insisted the clothes be made of organic cotton to reduce impact of chemicals and pesticides. Plus the product needed an attractive price point, like $24.95 for a girl’s skater dress or boy’s separates.
, estimated at $6.3 billion in annual revenues and growing at 6.8 percent versus the larger “fast fashion” industry of $3 trillion.was a fully digital company with low overhead and no brick-and-mortar presence. “Broadband helped us get the best talent. People want to work where they live,” he explained, noting that the chief clothing designer is based in Vermont. However investors balked at the idea that employees would only Work From Home and wanted to see the corporate office.
Hope & Henry’s employees, many who came from Gymboree, worked for sweat equity for two years until the company was up and running. There was no need to transition when Covid-19 lockdown took hold; Hope & Henry had been pioneering WFH for years. Broadband was also critical to get to customers. “If the vast majority of our customers did not have broadband, our business model wouldn’t work,” says McCauley, noting that many customers buy with smartphones using mobile networks.
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