I've been thinking of starting an online only clothing brand where we make/source the product ourselves and sell it only online without trying to get into brick and mortar chains. But I want to have a good look at the tombstones before I go down this path.
I know Bonobos and ModCloth both tried to do this but ultimately sold to Walmart. I understand the ModCloth sale wiped out the investors as they sold for less than the capital raised. I figure that by being vertically integrated you have much higher profit margins and can afford to acquire the customers on your own.