Direct-to-consumer retail companies have become all the rage, with companies

like Warby Parker (eyeglasses), Harry's (razors), Glossier (makeup), and Casper

(mattresses) all disrupting established industries. These companies have used

e-commerce to bypass traditional retail sales channels, allowing consumers to

purchase high-quality goods for extremely low prices. Luggage manufacturer Away is

poised to become the next prominent example of direct-to-consumer e-commerce.

Away manufacturers carry-on luggage in China and sells it online. Away's

founders, Jen Rubio and Stephanie Korey, both previously worked at Warby

Parker; Korey also spent time at Casper. The two sought to use their experience

at these companies luggage brand in the same vein that would excite

consumers and inspire loyalty. Both felt that the existing luggage marketplace, expected to be as large as $34 billion by 2020, was not doing enough to serve

their customers, creating an opportunity for Away.

Away's flagship carry-on costs $225, far less than the $525 price tag of a similar

model from Tumi, a high-end brand owned by industry leader Samsonite. The

carry-on features a hard polycarbonate shell with 360-degree spinning wheels,

high-quality YKK zippers, a compression pad to help squeeze in extra items, and

even a removable lithium-ion battery for charging phones. The low price point for

such a high quality item is only achievable because of the company's direct-to-

consumer model, allowing Away to avoid splitting revenues with department stores

and other middlemen.

Away is on track to earn $150 million in revenue in 2018, and the company is already

profitable, often a rarity among start-up companies. Away has raised $81 million

in venture capital to date and its latest funding was secured at a valuation of $700

million, bringing Away very close to the coveted $1 billion "unicorn" milestone. The

company has 200 employees and expects to add over 200 more jobs in the next five

years. Away has also opened several brick-and-mortar stores in major metropolitan

markets, such as New York, Los Angeles, San Francisco, and Austin, with plans to

open more overseas in London, Berlin, Paris, Milan, and Copenhagen. To date, the

company has sold over 500,000 suitcases. Away's revenue and sales statistics are

impressive for a relatively new company, and investors have taken note.

Away has found that establishing physical stores in high-traffic locations improves

online sales in those markets, just as it has for Warby Parker and other similar direct-

to-consumer brands. Away is also very active on social media channels, including

Instagram, where the company has hundreds of influencers that market the product.

Away has also launched several innovative marketing campaigns, including a pop-up

hotel in Paris, a travel magazine, and a podcast, all of which furthers the company's

goal of creating exciting travel experiences for its customers.

1. What event inspired the founders of Away to create their company?

2. How did Away's founders determine whether or not there was a market for the

company they hoped to build?

3. What is the objective of Away's customer experience team?

4. Does Away see itself as purely a luggage company?

5. How does CEO Korey's attitude towards expertise differ from that of other

CEOs, in her own words?