Rareform isn’t just your average bag company; it’s a sustainable fashion powerhouse that has carved a unique space for itself in the eco-friendly market. Founded in 2013 by visionary brothers Alec and Aric Avedissian, Rareform set out on an inspiring journey to transform one man’s trash into another’s treasure. During a trip to El Salvador, Alec noticed locals utilizing discarded billboard vinyl as roofing material.
This sparked an idea that would soon evolve into a groundbreaking business model. Understanding the robust, weather-resistant nature of these vinyls, the Avedissian brothers realized their potential beyond traditional uses. Thus, Rareform was born, dedicated to upcycling this otherwise non-recyclable material into chic, durable bags and accessories. From totes and backpacks to wallets and cooler bags, each Rareform product carries a piece of history, making it uniquely one-of-a-kind. As we follow Rareform’s journey, from its Shark Tank debut to its current business ventures, it’s clear that this brand isn’t just about selling bags—it’s about pioneering a movement towards a more sustainable and environmentally conscious future.
Rareform Pitch and Deal at Shark Tank
The opportunity to pitch to the sharks was a pivotal moment for Rareform. In Season 8 of “Shark Tank,” Alec and Aric courageously stepped up, seeking a $300,000 investment for a 10% stake in their unique business. They showcased their creation, emphasizing not only the environmental benefits of repurposing billboard vinyl but also the uniqueness of each product. Despite having amassed $1.1 million in sales over three years, the previous year’s loss of $130,000 raised some eyebrows among the sharks.
The Avedissian brothers faced tough scrutiny regarding scalability, valuation, and product uniformity from most of the sharks. Nonetheless, Kevin O’Leary saw potential in their venture. O’Leary proposed a $300,000 loan with 8% interest, coupled with a 10% equity. Though negotiations were challenging, the brothers opted for O’Leary’s offer, opening a new chapter in their entrepreneurial story.
Negotiations didn’t stop at the tank. After the cameras stopped rolling, the deal morphed into a $150,000 loan for a 5% stake. This revised agreement reflected the dynamic nature of business deals and how initial terms can evolve to better suit both parties involved.
Is Rareform Still in Business?
Yes, Rareform is very much still in business, thriving and growing as it continues to push its sustainable agenda. Since gracing Shark Tank with their vision, Rareform has expanded far beyond its humble beginnings. The company’s dedication to sustainability and innovative design has resonated with consumers who seek both style and responsibility in their purchases. The company has demonstrated resilience and adaptability as it navigates the ever-changing fashion landscape. Rareform’s products are not just sustainable; they’re also fashion-forward, appealing to a diverse audience of eco-conscious consumers.
A key indicator of Rareform’s continued success is its solid presence both online and in physical retail spaces. Available through its own website, Amazon, and in more than 500 stores nationwide, including prominent retailers like REI, Rareform has carved out a robust niche. This widespread availability is a testament to its growing popularity and market demand.
Rareform Net Worth
As of July 2024, Rareform is projected to boast an impressive $5 million in annual revenue. The company’s journey from seeking investment on Shark Tank to achieving such high revenue is a testament to their hard work and innovative business model. This growth didn’t happen overnight; it was the result of strategic decisions, leveraging market trends, and connecting with the right partners.
The brand has formed lucrative partnerships with major billboard companies across the U.S., recycling over 80% of billboards in prominent cities and highways. This not only boosts their production capabilities but also aligns them closer with their core mission of sustainability. Repurposing approximately 20,000 pounds of vinyl per month is no small feat and reflects their dedication to environmental stewardship.
Furthermore, Rareform has worked with big-name brands like Delta, Nike, Disney, and Patron, further solidifying its place in the market. These collaborations have not only helped bolster their revenue but have also enhanced brand credibility and recognition, adding to their growing net worth.
What’s Happened Since Shark Tank?
The aftermath of Rareform’s Shark Tank experience has been nothing short of transformative. The visibility from appearing on the show catapulted the brand to new heights. Within hours of the episode airing, Rareform experienced a surge in online sales, eclipsing their previous two months’ worth of sales within a mere three hours.
This newfound exposure translated into tangible growth, with Rareform witnessing a 50% increase in online orders over the weekend that followed their Shark Tank appearance. Such momentum underscored the importance of visibility and the powerful platform the show provides to budding entrepreneurs.
With increased capital and guidance from Kevin O’Leary, the Avedissian brothers were able to expand their product line significantly. They ventured into creating a diverse array of items, including duffel bags, cooler bags, and other accessories. This strategic diversification has helped cater to a broader market segment, expanding their customer base and fulfilling varying consumer needs.
Seeking to enhance operational capacity, Rareform opened a second facility in Nashville. This venue supports their California operations, ensuring they can meet escalating demand efficiently.
Rareform Business Overview
At its core, Rareform is a business built on sustainability, creativity, and innovation. By ingeniously repurposing billboard vinyl into fashionable bags and accessories, Rareform offers products that are not only functional but also environmentally friendly. Each item is unique, featuring different colors, patterns, and designs drawn from various sections of the billboard.
Rareform’s partnerships play a critical role in their business strategy. Collaborations with billboard companies nationwide ensure a steady supply of raw materials. This not only promotes sustainability by preventing vinyl waste from ending up in landfills but also supports the company’s operations consistently.
The brand’s commitment extends beyond environmental consciousness. Rareform partners with influencers and athletes, blending eco-friendly messages with lifestyle branding. This strategic marketing enhances their brand image and connects deeply with their target audience—the socially responsible, trend-aware consumer.
How Shark Tank Helped Shape Rareform’s Future
Appearing on Shark Tank was a significant turning point for Rareform. The exposure and investment they received on this platform radically altered their trajectory. Obtaining financial backing from Kevin O’Leary not only bolstered their capital but also gave them crucial mentorship from a seasoned investor.
The show facilitated a narrative that reached millions, helping Rareform capture the public’s imagination and resonate with eco-conscious consumers. This exposure has been invaluable in positioning Rareform as a forward-thinking, sustainable brand in the competitive fashion market.
Additionally, the feedback from the sharks was instrumental in helping the Avedissian brothers refine their business model. The questions and insights from the panel helped them address potential scalability issues and focus on streamlining their operations.
Conclusion
Rareform’s journey from its inception in 2013 to becoming an industry leader is truly inspiring. The founders took an innovative idea and successfully transformed it into a thriving business. Their Shark Tank experience provided not only financial investment and crucial exposure but also vital insights that helped them refine their vision. Rareform exemplifies how passion for sustainability combined with clever business acumen can result in substantial success.
As they continue to innovate and expand in the realm of eco-friendly fashion, Rareform is a shining example of entrepreneurial spirit driving positive environmental change. Their story continues to inspire both new and seasoned entrepreneurs—showing that with the right mix of innovation and determination, a startup can indeed make a significant impact.