Vastrm Is the Warby Parker for Shirts

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Sept. 5 (Bloomberg) –- Vastrm CEO Jonathan Tang discusses how his company helps you personalize the perfect polo shirt and the growth of customized online retail. He speaks with Deirdre Bolton on Bloomberg Television’s "Money Moves." (Source: Bloomberg)

This is "money moves," where we focus on innovative alternative investments.

I am deirdre bolton.

Welcome back.

James vernon, cofounder of europe's second-largest hedge fund, returning to the firm that he quit two years ago.

He takes on the role of group coo this week.

Griffin howard has struggled with employee retention after its master fund suffered losses in june and july.

For more headlines, we want to bring you out to our newsroom.

Adam johnson has the top headlines.

Mario draghi says the ecb is ready to act as rising money market rates threaten his efforts to reassure investors that borrowing costs will stay low.

He urges caution on the recovery, saying, "it is still very, very green." in the u.s., jobless rates declined more than forecast, with fewer americans filing for unemployment benefits last week.

A separate report showed companies adding 176,000 workers last month.

Both of those data points are good news ahead of the important unemployment rate that comes out tomorrow morning at 8:30. linkedin is boosting its timeshare sale to $1.2 billion.

The world most popular networking site is selling 5.3 million shares of class a stock at $223 a share, and offering that is expected to close on september 10. just ahead on "street smart," boy band hanson is back and all grown up.

They have a new album and a new label.

These guys are serious businessman and we are talking about it.

It is hard to hear that song, adam -- maybe we can get them to sing.

Very good proposition.

Adam johnson, thanks for the much.

As you just heard, his show starts at 3:00 p.m. in the meantime, if you want to make it easier for your team to stay connected with one another, the goal of our next guest company, unison -- its main competitor was purchased by microsoft last year.

The ceo of the new york-based unison is with me now.

Tell us about this history.

I know intermediate was the -- intermedia was the first business cloud company and what you're doing now started as a part of that.

Unison started as the r&d lab at intermedia.

It gave us a unique vantage point as being one of the largest sellers of e-mail, with everything that was wrong with e-mail.

You guys were frustrated and you needed this, or were you guys just saying, this is cool and if we build this am other people will want to use it as well?

A little bit of both.

We had a distributive team that was buried in work.

It was a deeply frustrating process -- annoying.

You spend more time managing your inbox than you do getting results.

You are meant to improve business e-mails and now it seems the focus is getting rid of them altogether.

It is fundamentally broken.

Rather than try to fix it, we have built a new system that rectally radically improves upon it.

I was playing around with it before.

You can leave audio messages as well.

What features are you most proud of?

The core of unison is rooms, rooms for each project an issue that your team is working on.

It functions as a central repository for all the discussions and files related to those projects and issues.

The really neat things we do with those rooms -- we show you instantly who was in there working alongside you on your team.

We of value to reach out instantly by text, audio, -- we allow you to reach out instantly by text, audio, or video.

I referenced this earlier, but a competing company two euros was purchased by microsoft.

-- competing company to yours was purchased by microsoft.

Do you see yourself one day as being part of a larger corporation?

What we are intensely focused on right now is our product and the customers.

We are solving a vital problem, and that is getting the attention from us right now.

You mentioned your customers.

What kind of industries are using your product the most?

We are seeing a great deal of activity in financial services, professional services in general, creative firms, and so forth.

You just came out of beta this summer so this is new, but what kind of claim growth are you seeing?

We have had a great summer, up to 20,000 users, a number of strong midmarket companies on board, like one of the larger independent mortgage banks in the country, virtually replaced their internal use of e-mail with unison.

Wonderful education institutions like morehouse in atlanta getting the same results.

Mostly u.s.? we are also seeing ice roads in europe, u.k., australia -- nice growth in europe, u.k., australia.

How does this change the way that you work?

It gives us the freedom to do what is right for the customer, do what is right for the product.

We have been laser focused on that since the inception, and when you are tackling a problem as big and complex as replacing everything that is broken with e-mail, it is a vital workflow, vital collaboration tool, it has been critical to our journey to have the freedom to that.

Is in some cases a luxury -- it is in some cases a luxury.

The ceo of unison technologies.

If you are tired of polo shirts not fitting, you might want to hear from our next guest.

The company started as a design company, allowing customers to pick colors and details, but it found that fit was the biggest problem for men.

? welcome back to "money moves" on bloomberg television and screaming all day long on your tablet, your phone, and

If you are frustrated by ill fitting polo shirts, know that our next guest is working on your problem.

The company's name means "cloth" in sanskrit.

I spoke with the founder about how fit trumped even style.

We let our users personalize the style of the shirt so that they can decide on different collar types and buttons.

We ran it through our supply chain and factories and deliver the shirts and we started to get e-mail back from our customers saying that, "gee , i love the fabric, the construction, the quality of the shirt, but i wish it were shorter.

I wish the sleeves were longer." slowly we made adjustments for customers and those customers started to order more shirts.

We knew that fit was a fundamental problem to many of our customers.

Many people wanted to tweak the style and the colors and details and it was about fit;. uf 24 sizes to choose from and all are made to order.

Do you ever hear that there are too many choices and your customers are overwhelmed, or do you do your best to organize it?

We organize it.

We have slim fit, accustomed to a european-style, sport fit, and a relaxed fit for people who are more well fed.

We scale from extra small all the way -- we have done some shirts that are seven xl.

Do you have an algorithm, do people send measurements?

Great question.

We try a bunch of different technologies, standards, using the iphone, but we found that what works best is letting the consumer decide on the size that they think they are.

They may be between medium and large.

Great, select medium, slim fit, and sport fit, and we send them to your home or office and you can try on the shirts.

That is why you said you are the -- you can order a few and try them on at home and then send back the ones that aren't working.

Shopping for clothes is a tactile experience.

People love to feel the fabric and try on the shirts.

This endless way for us to do that, and being an online site, is to send customers the shirts.

Once they receive the shirts -- they can send it back.

What is it like as far as shipping?

All that has to cost you money.

Shipping is a high cost of the business, as well as the production capability of producing one shirt.

We want to be -- from a pricing level we want to be on par with some of the affordable luxury brands in the market today -- for example, ralph lauren, or the brands that are sold at nordstrom.

We are doing quite well at keeping costs down for our customers.

As we increase the efficiency, we hope to lower the price further.

Ok, as far as your customers, how many repeat customers do you have right now, jonathan?

Since the launch of our home try-on program, we have seen repeat customers at a corrosion rate of 40%, and that is only in the last month -- conversion rate of 40%, and that is only in the last month.

We expect that to get even higher.

Once we are able -- people come back once we are able to nail a perfect fit for them.

To what extent is inventory management hassle?

So we don't carry any finished product inventory, which is the great thing about our model.

We store raw materials -- different colors, different patterns, but essentially we operate on a no-inventory model.

What are you finding as far as raising money to get to the next apps?

-- next steps?

So we decided to raise $1 million to validate the model and get us to the next level.

We brought in money from qwest venture partners, will smith's tentpole investors -- ventures invested in this round as well.

What is it like working with them?

They are very supportive, very helpful, great group of guys that have the same problem as everyone else, shirts that don't fit.

What about will smith?

Did you meet him in person?

Will smith is great and we hope to leverage his celebrity as soon as we can.

What is his favorite shirt?

We just released a new collection, san francisco and san diego, and we sent him the san francisco collection, which i am wearing today.

He loves the tether great that i'm wearing.

So will smith's favorite shirt and also jonathan tang's favorite shirt.

The vastrm cofounder and ceo.

When we come back, bob's buzzword of the day addresses an important gauge of economic health.

We are back with bob rice in just two minutes.

? welcome back to "money moves ." time for our daily buzz word, one investment term to improve your alt folk capillary.

Bob -- alt vocabulary.

Bob, this is enabled in gauge of economic -- an important gauge of economic health.

This is not a genie like robin williams in "aladdin." this formula describes the inequality of income distribution in a society.

It has become very widely followed, lots of organizations from the cia to the st.

Louis fed tracking and producing this information.

You prepared a chart that we are going to pull up which actually shows going back to 1965 essentially to the present day, and these shaded areas indicate u.s. recession.

Quite a few of them, as we can see.

Essentially, this line is going in the wrong direction if you want to say the u.s. economy is healthy.

It is, and what is interesting is to zoom back and see how long this trend has been going on.

A lot of people assume that this is a recent phenomenon or just a bad recession -- unemployment, of course the gini ratio got worse.

But if you zoom back, you see it has been going on a long time indeed.

It is pretty steady.

It is pretty steady, so why is the question.

Why not is almost more important.

People say it is tax policy -- we need to tax capital gains because all of the money is going to rich people, or it is republican or democratic administration, or whatever.

You can see that the trend has powered right through all of these tax regime changes and democratic and republican administration changes.

I don't think that the reasons that are commonly bandied about are actually the reasons.

What do you mean, politicians are not always right?

What is your take?

How can someone who is trying to invest or just get a handle on different parts of the economy use it?

What it tells you is that the technology revolution is having fundamental impacts on the way our society is functioning.

Economists traditionally said no, that is not really right, or tech creates new jobs and doesn't eliminate jobs.

I don't think that is true anymore.

For proof, it is exactly coincidence -- almost exactly coincident with the growth in this index is productivity and wage growth.

This could be developed into a tech story.

I really think it is a tech story, it has been a tech story, because it was never true before that tech displaced workers, i think it is different for you have a whole bunch of middle-class jobs wiped out and not coming back.

Well-placed in the ahead of tomorrow's all-important jobs report.

We are going to take a quick break.

When we come back, an update on the markets and what is coming up tomorrow on "money moves." ? tomorrow on "money moves," hedge fund manager, merger specialist, he will tell us where he has made the most on his long and short positions.

If you are a sports fan, you know that fall sports are here.

Our guest has just released an app that allows health-care pros to make on the spot conclusion -- concussion diagnoses.

In a little fun for friday -- this allows users to discover and buy wine just by taking a picture of the bottle.

The founder will be one of my guests tomorrow as well.

In the meantime, it is 56 minutes past the hour.

That means it is time for "on the markets." we will take you to the newsroom.

Matt miller is there with all you need to know on trades.

Markets have been up all day , another rally, third day in a row.

Not huge, but the s&p adding .25%. sears holdings is rocketing up in trading, along with retailers , despite being cut to a sell rating.

Ford, america's second largest automaker, had its largest hybrid sales ever.

On that note, for today's sector report we will talk about cars.

Jamie, let's talk about the surge in hybrid sales.

I was out at the toyota event in detroit.

They are pushing hybrids big.

All the new cars at the frankfurt auto show will be hybrids.

Is it the era of the hybrid now?

Are we there finally?

It seems like if you -- it seems like it if you spend enough time with toyota and ford.

Toyota has been the dominant player for so many years with hybrids and ford is offering so many different variants.

It is funny, when he mentioned the frankfurt show, it seems that for the last several years, everything the -- everything is been about electric cars, and they are just starting to get out in the market, especially in telefonica.

The hybrids -- especially in california.

By the hybrids are making the push.

Toyota and ford are the thing out there hybrid lineups.

We had great numbers yesterday, and a lot of carmakers are having problems with thin inventory, sold-out models.

Cars selling every 50 or 60 seconds.

Have we come to a new place for the auto industry, where they

This text has been automatically generated. It may not be 100% accurate.


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