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How a $60 Tote Transformed Bogg Bag into a $100 Million Annual Business

Photo credit: www.cnbc.com

Kim Vaccarella’s closet once served as a repository for numerous discarded beach bags.

In 2008, while frequently visiting the Jersey Shore with her two sons, she found herself in a continuous search for a practical bag. Straw and mesh options proved inadequate against the beach’s sand and moisture, while canvas bags quickly became soiled.

“I needed something spacious enough to hold all our essentials that I could simply rinse off and hang up after our outings,” she shares.

It became clear to Vaccarella that a bag crafted from EVA foam—a water-resistant material akin to what Crocs are made from—was necessary. However, she encountered a significant issue: no such bag was available in the market.

“When I realized there was nothing like this at the time, I sketched out a concept on paper,” recalls the 54-year-old founder. “My drawing depicted a square bag with holes and handles, and I have no artistic talent whatsoever.”

Having immersed herself in various entrepreneurial ventures before, including selling items on eBay and speculating on website domain names, Vaccarella had always looked for profitable opportunities to support her family.

“I often fancied myself the Lucille Ball of entrepreneurial ideas,” she reflects. “I was always dreaming up outrageous schemes to become the next big sensation.”

Ultimately, it turned out that Vaccarella had located an unfulfilled niche for a bag that was not only spacious and easy to clean but also capable of standing upright.

Sixteen years after her original concept for the ideal beach bag, Bogg Bag is projected to achieve $100 million in revenue this year.

However, the path from an initial concept to securing a unique collection at Target was fraught with challenges, including a significant setback when her first production order went awry.

Here’s a look at how Vaccarella transformed the Bogg Bag concept into a flourishing nine-figure enterprise.

An Accidental Business Venture

Bogg Bags are available in several sizes and a vibrant array of colors, priced from $55 to $100.

At the time she envisioned creating the bag, Vaccarella was well-established in her commercial real estate career, having dedicated 16 years to the field without any manufacturing experience.

Inspired by Crocs’ remarkable acquisition of Jibbitz for $10 million, a figure that she found astonishing, Vaccarella aimed to either create the bag herself or sell the concept to the highest bidder.

“If they could sell Jibbitz for that amount, I thought I should be able to secure $50 million for my Bogg Bag,” she explains, reminiscing that back then, such figures felt almost fictional.

Vaccarella spent years obtaining a patent and sourcing a factory in China. When she finally received a prototype in 2010, she was captivated. Despite her initial struggles to find a buyer, she firmly believed she had a winning concept.

Her first order comprised 300 units, and she collaborated with a local shop in New Jersey to sell the lively pink bags. Attending trade shows further exposed her to the necessary industry knowledge and potential retailers.

Today, Bogg Bags are sold in multiple sizes and shades, but the initial pricing strategy was a challenge. Vaccarella admits there was much uncertainty involved in determining her first price point of $60.

“I had no clear understanding of wholesale versus retail pricing. I ended up improvising based on my costs and assumed a typical markup,” she recalls.

Determined to invest further, Vaccarella utilized her children’s college savings for a substantial $30,000 order in 2012, fearing it felt like an astronomical risk.

“Starting this business meant I was gambling with their future,” she admits.

Upon receiving her shipment, Vacarella discovered a myriad of defects—the vibrant yellow bags were marred with dark streaks.

“It was disheartening,” she recounts. “I envisioned Bogg Bag belonging alongside brands like Nordstrom or Bloomingdale’s.” Realizing she could not sell the flawed products with integrity, her business faced a standstill, and it would take four years before she could sell a Bogg Bag again.

Rebuilding from Setbacks

Kim Vaccarella and her husband, Rosario, distributed care packages containing the imperfect bags after Hurricane Sandy struck the Northeast.

In the wake of her failed shipment, Hurricane Sandy hit the region, prompting Vaccarella and her husband to donate the defective bags as part of relief efforts. They established a Facebook page to inform the community about their distribution of essential resources.

As recovery unfolded, Vaccarella began receiving inquiries through the Facebook page from individuals expressing gratitude for the bags and asking how they could purchase more. Although she was thrilled about this unexpected interest, she knew she needed to rework her business strategy for a second attempt with Bogg Bag.

“The thought of starting over felt just as daunting as the first time around,” she admits.

The process of reviving her company, which included finding a new facility in China and securing a $120,000 investment from a family friend to settle existing liabilities and build a new inventory, took a number of years. Orders resumed in 2016, and the company began a steady upward trajectory.

“I dedicated my evenings and weekends to Bogg Bag,” she reflects. “My husband supported me, and my son would help as well. My first employee, who remains with us today, joined in after high school. We packed and shipped together, which was truly challenging at first.”

By 2018, Bogg Bag’s revenue surpassed $1 million, compelling Vaccarella to leave her 26-year real estate career to devote herself entirely to the burgeoning brand.

Surge in Popularity During the Pandemic

Bogg Bags are designed with an emphasis on customization, offering accessories such as decorative elements and functional attachments, including dividers, pockets, and robust cupholders that can accommodate larger drink containers.

While Bogg Bag was experiencing moderate growth—achieving $4 million in revenue in 2019—it was the onset of the Covid-19 pandemic that propelled the brand’s expansion.

“During the Covid lockdowns, we recognized the multitude of practical applications for our bags,” she explains.

Health professionals and educators quickly embraced the bags, appreciating their durability and antimicrobial properties during a time when wellness was paramount.

“Being able to safely transport items to and from work was a key priority for them,” Vaccarella acknowledges.

With accessories enhancing their appeal, Bogg Bags attracted attention as versatile solutions. The company garnered significant traction, reaching $54 million in revenue last year and projecting a crossing of $100 million in 2024. Yet, Vaccarella’s ambitions do not stop there.

Recent partnerships have allowed Bogg Bag to offer products adorned with official sports team logos. Moreover, Vaccarella envisions expansion into the Midwest and West Coast markets while dreaming of opening retail locations and establishing an international presence.

“We have just begun to explore what Bogg Bag can become,” Vaccarella asserts. “It feels incredibly surreal.”

Source
www.cnbc.com

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