Hollar Inc. is a start-up company that was founded in 2015 and is located in Santa Monica, CA. The company’s founders include David Yeom, Eddie Rhyu, Jonathan Um, and Thanh Khuu. The company’s headquarters are located in Suite 306 at 2800 28th Street, Santa Monica, California 90405. They offer low-cost merchandise like you would find in a dollar store but are doing it via a mobile app.
The Start of Something Big
Between David Yeom, a former The Honest Company VP, and Brian Lee, who was that company’s CEO, the concept for Hollar was born. Now, although Lee is not involved in the day-to-day running of Hollar, he does still serve on the board of directors of the one-year-old company.
New $30m Round of Series B Funding
They recently raised an additional $30 million in financing for growing their business. Led by Kleiner Perkins Caufield & Byers, the new round of Series B funding puts their funds raised to date at $47.5 million. Their previous rounds of funding included Series A at $12 million, as well as seed money rounds in the amount of $5.5 million total. Those previous rounds actually were closed within only four months of each other.
The most recent round of funding includes some well-known new participants/investors like Greycroft Partners and Comcast Ventures. In addition, several already participating investors who ponied up part of the $30m include Index Ventures, Forerunner Ventures, Lightspeed Venture Partners, and Pritzker Group. Eric Feng, who is a General Partner at Kleiner Perkins Caufield & Byers, became a Hollar Inc. board member as part of the negotiations.
Low-Cost Merchandise via Mobile App
Hollar is taking on a fascinating area of eCommerce, and that is merchandise at super low prices. In fact, most of Hollar’s merchandise is at a $2 price point. The site didn’t have anything listed at more than $5 at the onset. However, their prices are now expanding to include $10 items for the upcoming holidays.
This means that they now have the ability to offer higher-quality gifts and toys, which should increase their business exponentially although it removes them from that true “dollar store” category. On the other hand, though, this dollar store hit $1 Million per month in sales in just five months! That’s a whole lot of $2 items, right?
Bet You Can’t Buy Just One!
According to David Yeom, people initially didn’t really believe that a dollar store online could possibly be successful and they outright dismissed the entire idea. Most people felt that there was no possible way that selling $2 items could possibly make any kind of money. What everybody seemed to be overlooking was the fact that anybody who has ever shopped in a dollar store is well aware of. Have you ever shopped in one and bought just one item?
Of course not. I can attest to the fact that a trip to the local neighborhood dollar store can often result in buying 50 or 60 items. It’s just human nature that, if it’s cheap, you just gotta have it! That’s what makes it so easy to fill up your cart at the dollar store when you may have just gone in there for one or two items. After all, it’s only a dollar, right? Wrong! It’s often around $50 or even more before you even realize it.
Shop Anywhere With the Hollar Mobile App
And, that’s the same way that Hollar works. Everything is sold at such a great price that consumers feel compelled to fill up their online shopping cart just like they would at a local brick and mortar dollar store. But, this dollar store shopping can be done in your pajamas from the comfort of your own home. Or, you could shop at Hollar while waiting in traffic, standing in line at the DMV or your bank with the mobile app. It’s the dollar store that comes to you no matter where you are.
Buy Smart for a Huge Profit Margin
So, what’s the secret to their success? Well, according to David Yeom again, it’s buying smart. One of Hollar’s co-founders was once with the major dollar-store chain, 99 Cents Only. This means that he came to the table with some excellent supplier relationships that meant great deals on products that have proven to be desirable to consumers. Those products include name-brand cosmetic items like Revlon nail polish, which would normally sell for about $6 at drugstores, as well as other online retailers.
But, Hollar sells it for $2. And, Yeom continues on to state that there is a 60 percent profit margin on any item such as that little bottle of nail polish. And, since the average Hollar customer purchases about $30 or more worth of merchandise, it all adds up quite quickly through the use of judicious stocking.
Competing With Ross and TJ Maxx
And, the boys at Hollar don’t see their competitors as being websites like Jet, which was recently purchased by Walmart, or even the king of all online selling, Amazon. What they see as their real competitors are actual brick-and-mortar stores like Ross and TJ Maxx. They look at it that way because those particular stores actually do some major business in sales of inexpensive home goods and toys rather than just clothes. In fact, they feel that those stores are thriving on the segment of retail sales that are unlike Amazon.
They involve consumers going into their stores not just for that single item that they already know they need, but for the purpose of browsing and finding things that they didn’t even know they wanted.
Browsing is Half the Fun
And, that’s just like shoppers at Hollar. Browsing is half the fun and you’d be surprised how many things you find that you just can’t resist putting in your shopping cart. Every item adds up to a nice total amount of money saved by shopping at Hollar and free shipping on your first order to boot! Check it out at Hollar.com and see for yourself.
Five Smart Guys Who Listen to Their Wives
The majority of Hollar shoppers are women, so when Yeom was asked how a company founded by five guys was going to have their fingers on the pulse of female buyers, he responded by saying that all of them are married with children and they all listen to their wives. Smart guys, those Hollar men.