The Dallas-based startup was founded in 2007 by former Wall Street retail analyst Hil Davis, who functions as its CEO. He saw an opportunity to cut the retailer -- and its markup -- from the sale and distribution of menswear apparel.
"A Zegna shirt costs $35 to make, is sold to a retailer for $125, and then sells for $325 at Neiman Marcus," Davis explains. "We go to the same Italian mills, the same factories, wrap a personal touch and service into the product, and sell it directly, without the retail markup," he says. J. Hilburn's custom-fitted shirts typically cost about $100.
Instead of a retail store or ecommerce website, J. Hilburn recruited a salesforce of 800 personal style advisors who operate in 43 states and every metropolitan market. Style advisors meet with clients at their homes and offices, record measurements and offer style advice, taking a significant cut of sales generated in the process. The company also uses its referral program to reach new customers, rewarding $20 to clients whose referrals spend more than $100 with the company.
J. Hilburn sold 60,000 custom-tailored shirts and 12,000 custom trousers through these methods last year, more than doubling its revenue from $3.25 million to $8 million, says Davis.
This year, the company plans to bring in $20 million in revenue, driven in part by its new ecommerce offering, launched Wednesday. Jhilburn.com will make it easier for existing clients to refill orders, as well as place new orders that harmonize with their existing purchases.
The company is working to develop a "My Closet" feature that keeps track of previous acquisitions and suggests new items that complement the cuts, colors, patterns and textures of a customer's existing wardrobe.
New customers will be able to learn more about the brand, design shirts using the company's web app (above), schedule a consultation with a style advisor, and order items from J. Hilburn's line of ready-to-wear cashmere sweaters, polos and accessories, which currently make up about a third of sales.
The company does not plan to start aggressively marketing online until the fall, when it will optimize the site for customer acquisition through search, and leverage its network of style advisors to build and maintain customer relationships through social media.