Cotopaxi focuses on incorporating social impact and sustainability into its business model, making a positive impact throughout its supply chain.
Cotopaxi differentiates itself by creating unique marketing strategies and events that align with the values of their target audience.
Despite initial rejection, Cotopaxi secured investments from backers who believed in their mission and persevered to make a difference in the outdoor apparel industry.
Deep dives
Building a Brand with Impact
Cotopaxi, a digital-native outdoor brand, was founded by Davis Smith with the aim of creating a brand that connects with the younger generation and gives back to communities in need. The brand's mission includes incorporating social impact and sustainability into its business model. For example, Cotopaxi sources lama wool from communities in Bolivia and involves factory workers in the design process, aiming to create a positive impact throughout its supply chain. Although raising initial funds for a social impact business was challenging, Cotopaxi secured investments from Kerson Green and other investors, allowing them to launch their outdoor apparel and backpacks line.
The Practice of Giving Back
Cotopaxi's commitment to giving back is evident in their unique marketing strategies and events, such as the Questival. The Questival is a 24-hour adventure race that engages participants in various challenges to win gear and trips with friends. By creating experiences that align with the values of their target audience, Cotopaxi successfully connects with consumers who prioritize experiences and value brands that make a positive impact. Their approach to giving back sets them apart from traditional outdoor brands and establishes them as a brand that cares about people and the environment.
Challenges and Growth
While Cotopaxi faced initial rejection from impact investors and traditional investors who were cautious about investing in a business focused on social impact, they persevered and found investors who believed in their mission. The co-founder, Stephan Jacob, joined Davis Smith to build the business based on their shared commitment to making a difference. Cotopaxi differentiated itself by being digitally native, incorporating sustainability into its supply chain, and prioritizing the well-being of factory workers. With their unique approach and dedicated team, Cotopaxi raised seed funding and started making an impact in the outdoor apparel industry.
Building a Brand in Brazil
The podcast episode discusses the challenges and opportunities of building a brand in Brazil. The speaker shares their experience of connecting with a celebrity couple, who became the face of their brand, resulting in increased organic traffic to their website. However, they also highlight the bureaucratic nature of doing business in Brazil, mentioning the lengthy process of obtaining a business license and the complications involved, including potential bribes.
Navigating Growth and Challenges
The speaker recounts the rapid growth of the business, with a celebrity endorsement and a significant increase in employees. However, profitability remained elusive. Investors saw the potential in the growing brand and the driven founders, leading to substantial venture capital funding. The speaker also shares the personal challenges faced within the co-founder relationship due to different management styles and cultures. Eventually, the speaker made the difficult decision to leave the business in order to pursue a new venture with a focus on making a positive impact.
By his mid-30's, Davis Smith had co-founded two businesses. The first ended well, but the second was such a disappointment that he wondered if he should even bother trying again. But he did. In 2014, he launched Cotopaxi, an outdoor gear company with two fluffy llamas as mascots and an expressed mission to do good in the world. The brand is now making tens of millions of dollars a year, and Davis hopes that the current pandemic will not slow its ambitions to grow and to give back generously.
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