E024: Aggregator Models Thrasio, Diversification, Ecom Acquisitions, Brand Value Longevity & More
Oct 4, 2023
auto_awesome
Discussion on Thrasio and holdco model, flaws in aggregator investment thesis, leveraging media machine on Amazon, valuable characteristics of holdco and conglomerates, avoiding distractions as a leader, admiration for conglomerates like LVMH, technology's impact on scaling, questioning pursuit of revenue doubling
Building enduring consumer brands requires patience, focus, and a long-term perspective.
Scaling too fast can result in losing focus and effectiveness within specific categories.
Enduring brands that have stood the test of time deliver more value than brands that experience rapid growth and then fade away.
Deep dives
The importance of focus and patience in building consumer brands
Building enduring consumer brands requires a patient and focused approach. It takes time to establish a brand and develop loyalty among customers. Many successful consumer brands have grown steadily over years or even decades, rather than experiencing rapid growth in a short period of time. Entrepreneurs in the consumer space should prioritize patience and focus on building their core brand, rather than trying to expand too quickly or diversify. Longevity and staying power are key factors in creating lasting consumer brands.
The dangers of scaling too fast and losing category focus
Scale and growth are important, but scaling too fast can result in losing focus and effectiveness within specific categories. Successful consumer brands often have a clear category focus, allowing them to understand and cater to their target customers better. Trying to expand too quickly or across too many categories can lead to a loss of expertise and dilution of brand identity. Entrepreneurs should prioritize quality growth and mastery within their chosen category before considering expanding into new areas.
The value of enduring brands over quick growth
Enduring brands that have stood the test of time often deliver more value than brands that experience rapid growth and then fade away. Building a brand that lasts requires patience, resilience, and a long-term perspective. It's important for entrepreneurs to prioritize building a sustainable and enduring business rather than focusing solely on immediate growth metrics. Brands that have successfully weathered economic cycles and consumer shifts demonstrate the importance of long-term thinking and building lasting customer relationships.
The power of compound growth and building wealth over time
Warren Buffett's success is a testament to the power of compound growth and building wealth over time. Buffett accumulated the majority of his net worth after his 50s and even after qualifying for Social Security benefits. This highlights the importance of long-term thinking, patience, and a commitment to compounding returns over time. Entrepreneurs in the consumer space can apply this principle by focusing on sustainable, long-term growth rather than chasing quick wins or immediate results.
The need for a patient and focused approach in the consumer space
Entrepreneurs in the consumer space should prioritize patience, focus, and a long-term perspective. Building enduring consumer brands takes time, dedication, and a deep understanding of the target market. Avoiding the pitfalls of scaling too fast, maintaining category focus, and embracing the value of longevity can lead to sustainable success in the consumer market. By staying true to their brand vision and delivering consistent value to their customers, entrepreneurs can build lasting consumer brands that stand the test of time.
[00:03:09] Discussion on Thrasio and holdco model.
[00:03:42] Thrasio's business model: acquisition, consolidation, profit.
[00:07:36] Flawed aggregator investment thesis; only public markets.
[00:13:06] Leveraging media machine, scaling brands on Amazon.
[00:15:10] Value-driven growth on Amazon requires synergy.
[00:20:01] Holdco and conglomerates have valuable characteristic.
[00:23:09] Hesitant about holdco, distractions and lack of diversification.
[00:26:11] Leaders must avoid shiny object syndrome.
[00:28:26] Acquiring brands, liking consumers, admiring conglomerates.
[00:33:33] Leading, team, pioneer, models, human element, business.
[00:38:45] LVMH: European brands show patience, longevity.
[00:41:40] Technology enables quick scaling but also quick downfall.
[00:44:32] Limited revenue growth, questioning the pursuit of doubling.
Operators Exclusive Slack:
https://join.slack.com/t/9operators/s...
Operators Job Board:
https://operators.niceboard.co
In the world of eCommerce, a legendary WhatsApp group is rumored to hold the secrets to unimaginable success. The catch? You must have nine figures in revenue to gain entry. The world's biggest brands have denied its existence for years, until now. Three titans known as "Operators" are leaking the secret contents in an effort to share their wealth of knowledge with people like you.
Powered By:
Northbeam.
https://www.northbeam.io/
Sendlane.
https://learn.sendlane.com/operators
Fulfil.io.
https://bit.ly/3pAp2vu
Visit Our Website:
https://www.9operators.com/
Follow us on Twitter:
Sean (Host) https://twitter.com/SeanEcom
Jason (Host) https://twitter.com/JasonPanzer
Matt (Host) https://twitter.com/mbertulli
Mike (Host) https://twitter.com/mikebeckhamsm
Finn (Producer) https://twitter.com/finn_radford
Northbeam (Partner) https://twitter.com/northbeam
Fulfil.io (Partner) https://twitter.com/fulfilio
Sendlane (Partner) https://twitter.com/Sendlane
We Rise Together.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
