Now in their mid-thirties and married, Susan Gregg and Eric Koger began in 2002 with some used clothes and an idea. Susan had always had a love for vintage clothing but eventually came to the point where her passion outgrew her closet. As college students, she and Eric were always looking for ways to make money, and so they had the idea to begin an online vintage clothing shop, naming it ModCloth.
ModCloth had very humble beginnings, with one part-time employee working out of their basement, but over the next couple of years they began expanding rapidly. By the time that Susan graduated college, she realized that ModCloth could be her full-time job. In 2007, ModCloth had one million dollars in sales and raised one million in capital. From there ModCloth continued to expand its sales, bringing in $150 million in revenue during 2014. They grew to the point where they were selling styles from designers all around the world.
One impressive way that they measured demand was through a program called “Be the Buyer.” This program allowed potential buyer to view sample products, vote on them, and give input on each product’s price, style, etc. “Be the Buyer” really helped Susan to understand her customers and what they were looking for in ModCloth.
I think that ModCloth is a wonderful example of a passion made profitable.
Susan and Eric with their beloved pug.
ModCloth has since been sold to WalMart. Their website and YouTube channel can be viewed here.
I agree with you it is built from passion, I think someone without that would not have continued through the hard times of the business.
Being an avid thrifter myself, I LOVE this idea! Vintage clothing is a great niche market and it is so cool to hear how much they’ve grown in just 10 years! This is a great idea!
I love Thrifting and even though I’ve never used ModCloth, the idea is super interesting and one that I could see myself using. I love the premise of this service. I also love that they founded this in college. It’s encouraging to think that just ten years ago college students were creating successful business and that they still can to this day.