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In a session on disruption at the conclusion of this year's VM Global Leadership Summit, a surprise guest brought the theme to life, appearing on stage in much the same way that the company he co-founded appeared on the scene a few short years ago, unexpected and unannounced.



The session got underway with the editor of Inc. Magazine and Inc.com, James Ledbetter, discussing disruptive innovations that have proven to blindside traditional businesses with their innovations. "We are living in a time of disruption," he said, and disrupters "are going to change the world whether the world wants to change or not."

On cue and in keeping with this presenter's theme, Neil Blumenthal, co-founder of Warby Parker, one of eyewear's most disruptive companies in recent memory, then appeared as a surprise guest.

In an interview format with Ledbetter, Blumenthal candidly and humorously shared information about the e-tailing start-up that has grown incredibly fast and has already begun venturing into brick-and-mortar stores. Blumenthal credited getting the price point right and creating a brand that speaks to Millennials as two primary reasons for the company's remarkable growth. Still, he said, "We deliberately kept the throttle down because we believe in sustainable growth, not growth for the sake of growth."

Vision Monday's Marge Axelrad welcomed surprise guest, Warby Parker's Neil Blumenthal, to the stage.
"An articulated mission of caring has a bigger impact on the bottom line," said Warby Parker co-founder, Neil Blumenthal, about the company's Buy-One-Give-One policy.
"We are living in a time of disruption," and disrupters "are going to change the world whether the world wants to change or not," said Inc. editor, James Ledbetter.
Happiness Breeds Success
Another reason for the company's success that Blumenthal cited was "simplifying the practice of buying glasses. A typical optical shop is confusing and not fun," he observed. "It should be fun," he added, describing some of the reasons he believes it's not: "What about it doesn't make it fun—pricing, access to eyewear, and upcharges. The consumer just cares if overall this is a good experience or not. We came at it from a culture-centric viewpoint—How can we make the customer happy?"

To gauge whether the company is growing at the right pace, Blumenthal cited the company's high Net Promoter Score (NPS), a statistic that measures how likely a consumer is to recommend a particular company. He said that in a competitive landscape, Warby Parker's NPS in the 80s compares to the larger optical chains that he said have Net Promoter Scores below 25.

Much of the conversation revolved around Warby Parker's Buy-One-Give-One policy that provides a pair of eyeglasses to someone in need for every one the company sells. Starting off with a compliment, "The optical industry has a very proud tradition of giving back to the community," he added, "It's a smart way to run a business long term. What kind of business do we want to build, to be excited to go to all day that has a positive impact on the world?"

He then explained that although it might appear that the younger Millennial generation is more socially conscious than previous ones, it's not necessarily true. "This is the first generation that has this level of access to information. What compels people to act is information. This generation is not any more ethical than other generations. People have always cared, but now they are able to act on that caring." Ultimately, this impacts the business. "An articulated mission of caring has a bigger impact on the bottom line and on recruiting and retaining talent," he said.

What's In Store for Warby Parker
When Ledbetter asked whether Warby Parker would become a lifestyle brand and begin offering "sweaters and sandals," Blumenthal said, "We're still trying to figure it out. We want permission from our customers to go into other categories." He did cite collaborations that resulted in books as well as LPs and CDs with music by Beck.

About whether the company would ever go public, Blumenthal said, "People who run public companies don't seem to have as much fun. I'd like to stay private as long as humanly possible. A lot of activity that used to take place only in the public market is now taking place in the private market." He cited changes in the venture capital market. "There are opportunities in the private market for early investors to get out without going public or acquisition," he said.

Questions from the audience concluded the session and the day's events. When asked about new products that are above the company's initial price point of $95 for a pair of eyeglasses, such as progressives selling for $295, he said, "Progressives elsewhere would be well over $800. The hope is that we master one area before moving into a different area."

When asked who's gotten it right, Blumenthal said that "nobody's gotten it right in e-tail and brick and mortar." However, he did flatter Apple's Genius Bar, saying that it was the influence for the reference desks in Warby Parker's brick-and-mortar locations.

"The future is an intersection of bricks and mortar and e-tail," said Blumenthal. "We're still figuring out how many brick-and-mortar stores."

jsailer@jobson.com