Off the Hook
Hanger Network turns wire hangers into eco-friendly marketing products
In 2003, JD Schulman had one of those ideas that are often followed by, “It’ll make a million” when relayed to friends. His brainstorm? Sell advertising on the ubiquitous wire hangers that every dry cleaning customer picks up with their clothes. It was a flash of entrepreneurial creativity that would eventually develop into the second largest distribution system in the United States (behind the U.S. Post Office). But rather than seeing dollar signs and jumping right in, Schulman added an eco-friendly twist that added to the appeal – and the savings – of his new company.
Hanger network makes clothes hangers entirely out of recycled and coated paperboard, then prints logos, ads, coupons or even product samples on them on behalf of national advertisers like Dunkin’ Donuts, L’Oreal, and Revlon. Then the hangers are distributed to 35,000 dry cleaners nationwide and end up greeting customers in the privacy of their bedrooms each morning while they dress. Obviously, advertisers see value in the unique marketing strategy. Dry cleaners love the idea since they receive the hangers for free. And Schulman likes the idea of providing a green alternative to the traditional wire hanger – not to mention the dramatic income growth the products have brought.
After being established in 2005, Hanger Network received an $8 million round of capitalization. Sales have sustained it since with 2007 projections reaching into the multimillions.
And there is plenty of room for growth. According to Hanger Network’s advertising agency, 3.5 billion wire hangers will be sent to landfills in the U.S. this year. That equates to 200 million tons of steel that, of course, won’t decompose for centuries.
But the clean alternative that started Schulman’s quest is much more the domestic kind. Schulman said he first considered an alternative to wire hangers while doing some house cleaning at his mother’s house over Thanksgiving 2003. He had thrown away some of the hangers and when he went to carry out the trash, he realized that the hangers had punched a hole in the bag and leaked the juicy remains of Thanksgiving dinner on his mother’s carpet. Now that’s innovation.
Tuesday, June 19, 2007
