Warby

The Warby Parker articles were very interesting.  I think there is a common problem when we look at "Internet Based" companies.  Style is great, but it's personal.  What looks good in a picture may not look right on you.  When I was in middle school I saw a picture in a book at the place I went to get my hair cut.  I decided I wanted it.  My mom didn't try and talk me out of it, but did inform me that it would require me getting a perm.  I thought, "that guy looks good with it, why won't I"?  I looked like an IDIOT!!!!  What was right for the 45 year old man in the picture looked remarkably stupid on my 13 year old head.  Luckily I was captain of the football team or it could have gotten uglier than it already was.  After the second person said, mam, what can I get for you while at a restaurant, I walked in and had them cut it REAL close to the skin.  It's probably the closest I have ever had a hair cut and the happiest I have ever been to get my hair cut.  Great lesson mom!

Seriously though, I go to Brooks Brothers, get measured, and wait for sales.  I buy them shirts on sale and rarely go into the store.  This strategy of show rooming will be vital.  As we look at Best Buy struggling with becoming the showroom for Amazon and other Internet retailers you wonder what the right balance is between the virtual and brick and mortar?  I would not want to run a REIT that focuses on retail space right now.  As we see this show rooming continue, real estate will be less and less valuable.  It's a very interesting problem.  As far as Warby Parker is concerned, they have addressed the issue of not being able to touch, feel, and try on the product by shipping five options.  They have taken the next step to open some show rooms.  The Internet is great, and maybe one day it will work to virtually try product on, but right now we still need the bricks, just less of them.

Where I think there is almost more value is in a company like Hointer (I think of value in risk/reward).  Everyone is trying to move to the Internet, but Hointer has figured out a way to make the shopping experience unique through technology.  These types of businesses excite me.  They are disruptive, but in a way that is more evolutionary vs revolutionary.  I would love to spend some more time understanding businesses like this.