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This is a great move by Walmart. It is targeted directly at competing more effectively with Amazon. I don’t believe either company is worried about dilution of

This is a great move by Walmart. It is targeted directly at competing more effectively with Amazon. I don’t believe either company is worried about dilution of their respective brands. What Walmart needs is to keep leveraging its existing strengths — logistics and supply chain, as well as immense amounts of capital — while invigorating its online retail division so that over the next 20 years, they can appeal and sell to their target demographics (which is what millenials will become) with the same stickiness that Amazon does. Bonobos is popular among young male professionals that are relatively fashion-conscious. There are many workplaces in New York where the majority of new grads and millenials buy most of their wardrobe from Bonobos. The key — Bonobos is often the first place they look at. Andy Dunn has demonstrated he knows how to build a business that’s both sticky and appealing. He’s joining an online retail division headed by Marc Lore, and a Walmart that is shifting gears to face the Amazon behemoth. Purchasing Bonobos is part of their strategy of capturing audiences and market-share in the short-term, and of building a portfolio of brands that they can continue to expand for the long-term. Bonobos (as well as other recent acquisitions), and Jet.com, which Walmart acquired August 2016, are brands that were born online and grew online. These acquisitions mean people like Marc Lore and Andy Dunn, well-versed in the art of courting a customer base through primarily-online channels, are now at Walmart. And I foresee this trend continuing as Walmart’s ship slowly but steadily steers towards the age of online retail.

rch 9y ago
The people you mention really dislike Walmart. Still a smart move as it lets Walmart snag some mid-america market share from Gap/Banana Republic/Old Navy (the last makes most of the money anyway).
- ajmurmann 9y ago
  Yes, as someone who almost exclusively wears Bonobos and is a relatively young professional I'm super worried about this. I've been to Walmart probably not more often than the times. I can only assume and hope that Walmart did this to get access to people like me and not to transform Bonobos to cater to people who wear three wolf shirts.
  - deleted 9y ago
    [deleted]
  - __derek__ 9y ago
    I wouldn't be very optimistic: > “Assortment is driving a lot of these acquisitions,” Wal-Mart Chief Executive Doug McMillon told investors last month before the ModCloth acquisition became public. “There are some suppliers that don’t want to sell on Wal-Mart.” To me, that sounds like a plan to make Bonobos (or Moosejaw) a Wal-Mart company rather than to apply Wal-Mart's expertise to the acquired company. [1]: https://www.wsj.com/articles/wal-mart-in-talks-with-bonobos-1492534209 https://www.wsj.com/articles/wal-mart-in-talks-with-bonobos-...
hn_throwaway_99 9y ago
Check out the "malefashionadvice" subreddit about this deal. There is a huge, "I'm burning my Bonobos" backlash. Fashion is as much about image as anything, and I think it will be very difficult for Bonobos to make this transition into Walmart smoothly.
- losteric 9y ago
  It's not just MFA/fashion, the same cycle repeats anytime a big corporation consumes a smaller brand... like my Amazon coworkers bemoaning "the end of Whole Foods" earlier today. Personally, I'm still happy with my Bonobos products but I'll use this as motivation to start supporting another retailer.
  - hn_throwaway_99 9y ago
    > the same cycle repeats anytime a big corporation consumes a smaller brand Perhaps, but I can't think of brand images that are more diametrically opposed than Bonobos and Wal-Mart, in a business where image is everything.
CodeWriter23 9y ago
You're saying in 20 years, the 50+ year old demographic will become relevant to mainstream retailers. What do you base this projected transformation upon? Other reports have said Walmart is seeking to move upmarket, because lower end consumers have no money to spend, with expenses like food and rent dominating their budgets...I think this is the motivation for this acquisition.

rch 9y ago

The people you mention really dislike Walmart. Still a smart move as it lets Walmart snag some mid-america market share from Gap/Banana Republic/Old Navy (the last makes most of the money anyway).

ajmurmann 9y ago
Yes, as someone who almost exclusively wears Bonobos and is a relatively young professional I'm super worried about this. I've been to Walmart probably not more often than the times. I can only assume and hope that Walmart did this to get access to people like me and not to transform Bonobos to cater to people who wear three wolf shirts.
- deleted 9y ago
  [deleted]
- __derek__ 9y ago
  I wouldn't be very optimistic: > “Assortment is driving a lot of these acquisitions,” Wal-Mart Chief Executive Doug McMillon told investors last month before the ModCloth acquisition became public. “There are some suppliers that don’t want to sell on Wal-Mart.” To me, that sounds like a plan to make Bonobos (or Moosejaw) a Wal-Mart company rather than to apply Wal-Mart's expertise to the acquired company. [1]: https://www.wsj.com/articles/wal-mart-in-talks-with-bonobos-1492534209 https://www.wsj.com/articles/wal-mart-in-talks-with-bonobos-...

hn_throwaway_99 9y ago

Check out the "malefashionadvice" subreddit about this deal. There is a huge, "I'm burning my Bonobos" backlash. Fashion is as much about image as anything, and I think it will be very difficult for Bonobos to make this transition into Walmart smoothly.

losteric 9y ago
It's not just MFA/fashion, the same cycle repeats anytime a big corporation consumes a smaller brand... like my Amazon coworkers bemoaning "the end of Whole Foods" earlier today. Personally, I'm still happy with my Bonobos products but I'll use this as motivation to start supporting another retailer.
- hn_throwaway_99 9y ago
  > the same cycle repeats anytime a big corporation consumes a smaller brand Perhaps, but I can't think of brand images that are more diametrically opposed than Bonobos and Wal-Mart, in a business where image is everything.

CodeWriter23 9y ago

You're saying in 20 years, the 50+ year old demographic will become relevant to mainstream retailers. What do you base this projected transformation upon? Other reports have said Walmart is seeking to move upmarket, because lower end consumers have no money to spend, with expenses like food and rent dominating their budgets...I think this is the motivation for this acquisition.