Shibumi: A Beach Umbrella Company That Solves a Common Problem

Shibumi is a startup based in Raleigh, North Carolina that has successfully created a unique and popular product that solves a common problem faced by many beachgoers: poorly-designed beach umbrellas that are difficult to set up, offer little shade, and blow away easily.

The Frustration That Sparked the Company’s Creation

The founders of Shibumi, brothers Dane and Scott Barnes and their best friend Alex Slater, experienced this frustration firsthand while visiting their parents’ beach houses on Emerald Isle, North Carolina. They decided to tackle the problem and in 2016 launched what became Shibumi, a company dedicated to creating high-quality and user-friendly beach shades.

Shibumi’s Rise in the Beach Umbrella Market

Since its inception, Shibumi has sold over 300,000 of its shades, with sales increasing by 75% year over year since 2019. Their signature product, the Classic Canopy, is sold for $275, resulting in cumulative sales of $82.5 million. The founders proudly claim that Shibumi has been profitable since its first year of operation.

Shibumi’s Growing Presence in the Beach Gear Market

Shibumi has expanded beyond its initial three-person operation to a full-fledged business that employs 22 full-time workers and operates from a 17,000-square foot warehouse in Raleigh. Their products are now sold in over 200 independent retail locations, including 140 stores of Dick’s Sporting Goods and REI.

The Company’s Success Story

The success of Shibumi can be attributed to a combination of factors:

• Solving a real problem: Shibumi tackled a common frustration shared by many beachgoers.
• High-quality product: Their beach shades offer features that are appealing to customers, including durability, ease of assembly, and shade coverage.
• Strong word-of-mouth marketing: The company has gained a loyal following through positive customer experiences and referrals.
• Focus on customer relationships: Shibumi prioritized direct interaction with customers, building strong relationships and fostering brand loyalty.

Shibumi’s Future Plans

The founders of Shibumi are looking to continue expanding their business. They have secured funding from a New York City-based private equity firm, Stripes, which has invested in companies like GrubHub and Erewhon. Shibumi is working on new product lines, including some that are expected to be released this summer.

The Impact of Shibumi on the Beach Umbrella Market

Shibumi’s success highlights the growing demand for high-quality and innovative beach gear. The North American beach umbrella market is valued at $143.1 million in 2022 and is projected to grow at a compound annual growth rate of 5.6% from 2023 to 2031. Shibumi is positioned to capture a significant share of this market with its focus on customer satisfaction and its ability to adapt to changing trends in the outdoor recreation sector.