The Modern Retail Podcast

Better & Better is taking an unconventional approach to oral care.The startup makes a toothpaste infused with vitamins -- a way to kill two daily-needs birds with one stone. But educating shoppers about how the product works is easier said than done. On the Modern Retail Podcast this week co-founder and CEO Vladimir Vukicevic spoke about how he's been positioning the company."I [wanted] to build something that's really personal and near and dear to my heart," he said. "Better & Better stems from my personal desire to not have to take any more vitamin pills or supplement pills ever again."The big question for Vukicevic was, at first, whether or not Better & Better could make a product as he imagined. The second was if people would buy it. It took a few years, but both questions were answered. After hundreds of test formulas, Better & Better's first vitamin-infused toothpaste went to market. The company manufactured 20,000 units in early 2021 and sold out within six months.With that under its belt, the company has expanded into new products like toothbrushes and floss, and raised a $4 million round of funding last March. Better & Better is now using that to expand its product offerings and toothpaste varieties as well as to go into new sales channels.For example, Better & Better entered Amazon after focusing initially on its DTC website. According to Vukicevic, the company realized that it needed to be sold at the places customers most often bought their essentials. "Amazon is the starting point for a lot of people -- for most people -- when it comes to these types of products," he said. Since launching on Amazon earlier this year, it has become one of Better & Better's fastest-growing channels.The focus now, according to Vukicevic, is to continue expanding Better & Better's product line as well as get into retail stores. The last few years, he said, have been a test to see if people want such a unique oral care product. Said Vukicevic, it's clear that people do.With that, he said, "hopefully we'll be in retail by the end of this year."

Grocery and CPG are certainly hot areas for startups, but it hasn't always been that way. Brooklyn Delhi, a company that makes Indian-inspired sauces and condiments, has been in the business since 2014. This week on the Modern Retail Podcast, founder Chitra Agrawal talked about growing the business -- and the current DTC landscape.Brooklyn Delhi began as a predominately local company. Agrawal got laid off from her marketing job but had already been building a following as a food blogger. It seemed only natural to try her hand as an entrepreneur. In its early years, Brooklyn Delhi made its achaar products, an Indian pickled condiment, and mostly sold it locally in New York City.The brand started getting on shelves in small grocers, as well as became featured in trendy Brooklyn restaurants. "We always pictured our product on store shelves one day," said Agrawal. "But to get there, I think we first knew that we needed to start at this very local market level to kind of understand what was it that people thought about the product."It took some time, but the strategy worked. Today, Brooklyn Delhi is available nationwide in stores like Whole Foods, as well as available on its direct-to-consumer site and with meal kit services like Blue Apron. And it's expanded its products beyond its hero achaar product to simmer sauces.There have been some road bumps. For example, Agrawal said Trader Joe's was in talks with Brooklyn Delhi for a potential private label partnership, and then she noticed that the retailer ended up making its own achaar product that looked suspiciously similar to hers. Agrawal decided to go public about what she viewed as blatant product copycatting."I wanted to say something because I wanted people to know that we did not pack the watered-down version of Trader Joe's," she said. "Because so many people had come to us and they were just like, 'this doesn't taste right, is this your product?'"Even so, the company has moved on and moved up. The focus now, said Agrawal, is to grow the DTC arm as well as expand its product line. Currently, Brooklyn Delhi has 11 SKUs, but Agrawal hopes to have as many as 15 launched in the next year."There's going to new a lot of new product coming out for Brooklyn Delhi," she said.

Evite has big plans to be more than just a free digital invitation service.The online platform has been around since 1998, providing essentially the same service: online invitations. But the business has had many ups and down. Two years ago, David Yeom and George Ruan purchased the business -- Yeom hails from e-commerce businesses like the Honest Company and eBay; Ruan co-founded Honey.Yeom joined the Modern Retail Podcast this week and spoke about the company's transformation. "Evite, from a user activity standpoint [and] from a financial standpoint, has never been healthier, more profitable in its history," he said.The two believed Evite was in need of fundamental changes. For one, the company's revenue was long ad-based. But, as Yeom said, that was "too much compromising on the user experience." Additionally, Evite's look wasn't current -- it looked dated, he said. "For a brand that has the history that it has -- is it still cool to the younger millennials and younger moms?" Yeom said.With that in mind, Yeom implemented some major changes. For one, he wanted to focus more on commerce than ads. Now, the company both facilitates gifting -- it has become Amazon's biggest gift affiliate -- as well as earns revenue from premium digital invitations. True, 90% of Evite's customers still opt to use free cards, but 10% now shell out for a nicer design.In addition, Evite changed its entire look and feel. Before, the company had outsourced most of its design. "The priorities were just a little baffling," Yeom said. Now, it's all done in-house and the company has a more up-to-date look and feel. The hope is to attract more younger users -- Yeom said that one-third of the invites sent today are for children's birthday parties.With all this, Evite has been able to grow its business. It turned a profit in 2021 and now has big international ambitions. The company plans to expand to other English-speaking countries like Canada, Australia and the U.K."We're a party company, and Americans aren't the only ones that want to party," said Yeom.

Nearly five years ago, Aaron Luo co-founded the DTC luxury bag company Caraa. Now, his latest venture zeroes in on Spanish meats.Luo and fellow Caraa co-founder Carmen Chen Wu launched charcuterie brand Mercado Famous this past summer. Both Luo and Chen grew up in Spain, and have fond memories of tapas hours with friend and family."The mission behind Mercado was to bring not only the best we can find in Spain when it comes to charcuterie, but change the narrative around charcuterie a little bit," Luo said on the Modern Retail Podcast. "We just felt that there's a newer and younger audience that's somewhat neglected."The company sells meat products ranging from an $11.99 serving of sliced jamón to a $300 entire cured pork leg. While the company is selling predominately through its website right now, Luo said he has ambitions to grow other channels too. "I think wholesale will have a bigger play in Mercado Famous than Caraa, for sure," he said. "The goal for the brand is to go mass to a certain extent, if we can."True, handbags like Caraa's are made from leather -- the same material many meat products come from -- but the businesses are very different. Still, Luo said the earlier experience helped prepare him for this latest one."The reason we felt very confident starting Mercado Famous back in 2018 is all the scar tissues and the learnings we've had in the DTC world," he said. That is, through Caraa he learned the ropes of brand storytelling and customer acquisition. And he's using all that knowledge to help grow Mercado Famous.Some things are very different, however, than they were when Caraa first launched in 2014. For one, the VC environment is very different. That being said, Luo has long believed that most retail brands are not best for venture investing -- and that thesis, he said, is being proved today. "I think it works for tech," he said, but "this is not a tech company."For now, Mercado Famous is still figuring things out. Luo has big plans to ink wholesale deals and other types of partnerships. But, he admits, the brand is still a baby; "we're not even crawling, just moving our heads."

For the Swiss athletic apparel company On -- known by many as On Running -- the focus has always been on being both premium and exclusive.According to co-founder Caspar Coppetti, the concept when it first launched in 2010 was "we want to be the most expensive product on the market." On's shoes retail for between $130 and $200 a pair. It took a few years, but the strategy worked out. In its most recent earnings report, On's quarterly revenue hit around $307 million and direct-to-consumer sales represented 38% of its business.Coppetti joined the Modern Retail Podcast this week and spoke about how the brand, best known for its running shoes, has tried to focus on growth while maintaining its brand integrity."When you have a strategy, and it's a premium strategy -- it's a very simple strategy," said Coppetti. "You have to always keep supply below demand. Nothing builds desirability, like scarcity, right? And you have to be 100% buttoned up and prepared to walk away from things that could be good for business in the short-term but would hurt the brand long-term."For the first few years, this made things difficult. On walked away from some retail partnerships that likely would have jumpstarted business. But now, Coppetti said he's happy the company was so selective because it cemented On's name as a premium product.That helped make it a brand that athletes sought out. Tennis star Roger Federer, for example, is not only a spokesperson for the brand but an investor. And even beyond Federer, On is trying to take its athletic partnerships even further by offering new types of sponsorships and contracts. "The sponsorship model is broken," he said. "It's basically a duopoly, where two large brands control the market and they play very ugly games at the cost of the athletes."Despite the brand's early focus on exclusivity, Coppetti also spoke about the need to leverage key wholesale partners. The company is sold in thousands of individual running boutiques, as well as larger retailers like REI and Foot Locker. "We felt we needed the validation, not just [from] the best runners but also of the specialty shops," he said. Even with DTC representing over one-third of On's business, the company still focuses on growing retailer partnerships. What's more, Coppetti said that the two businesses aren't antagonistic; "they are very complementary and additive to each other," he said. "When we start working with a retailer, our online sales will go up in that area."Now, On is on an upward trajectory and expanding into new products and regions. According to Coppetti, this success was thanks to the company holding true to its values and keeping the big picture in mind. "It took a lot of discipline. But, you know, we're Swiss -- we're known for discipline," he said.

Fernish co-founder Michael Barlow discusses the growth of his furniture rental service for young professionals, focusing on convenience, sustainability, and flexibility. He highlights the challenges of traditional furniture ownership and the company's expansion to the East Coast. Barlow emphasizes the company's commitment to sustainability through a circular economy model and strategic marketing partnerships with real estate operators.

Express was a ubiquitous mall retailer, but it's now trying to become much more than that. CMO Sara Tervo gave some insight into this brand.This week, on the Modern Retail Podcast, Tervo spoke about the Express's evolution. The apparel retailer first began in 1980, and was known as a mall mainstay. Now, Tervo has spent the last three years trying to refresh the retailer's image."When I joined the brand, we were needing a transformation," she said. Slowly but surely, that change has started to happen."What we really had to do was rebuild our approach to content, understand what was most relevant and connected across all the different platforms, rebuild our budgets and constantly iterate, learn and generate more content -- in an effort to connect and create conversation [as well as] to create a more relevant brand," Tervo said.Much of this focus was about livening up the company's social presence, as well as figuring out the types of inventory that worked best with Express's customers. Additionally, Tervo realized the company couldn't be considered a retailer dependent on promotions."We needed to pull back and drive value in different ways than just discounting," she said.So far, said Tervo, things have been going well. At its second-quarter earnings released last May, net sales increased 30% year-over-year to $450.8 million and e-commerce revenue grew 21%. Right now, said Tervo, the company is focused on growing its e-commerce revenue to over $1 billion. "We have bold goals for that channel," she said.Beyond that, Tervo is laser-focused on figuring out customer acquisition in this wonky marketing environment. The big thing she's learned over the last few years is to be authentic -- even tapping store associates -- and to try out everything. "We're always curious about beta partnerships and different ways to test and try new ways to connect with customers," she said.In the end, Tervo has unveiled a new Express -- one that's focused on digital and resonating with customers. Even so, Tervo doesn't think malls or in-store retail is dead. "I'm sure you've heard a lot of different people say that you can never replace an in-person experience. There's just absolute value in that," she said. "What's dying is probably bad in-store experiences or malls."

The coffee business changed overnight when the pandemic first hit, and Counter Culture Coffee has been rolling with the punches.This week on the Modern Retail Podcast, Counter Culture founder and president Brett Smith spoke about where the industry is going and how his company has evolved over more than two decades.Counter Culture, which first launched in 1994, was one of the first roasters to focus on direct trade, meaning it took great pride in working directly with coffee growers and suppliers. "What we felt was important was to go down that supply chain and really understand the source, the farmers," Smith said. "Because we felt like there was an opportunity to, in essence, have a conversation with the suppliers."At the time, roasters directly sourcing from growers and including them in their consumer-facing marketing was unheard of. But it's now become commonplace, and Counter Culture was one of the early businesses doing such practices.According to Smith, the fact that coffee companies like Counter Culture have become known for their ethical sourcing is a nice after-effect. he didn't intend for it to be such a big marketing hook. "The litmus test is are we going to do this if no one knows about it, will we still do it?" he said.Now, the market has changed. It's table stakes for most higher-end coffee roasters to tout their direct supply chain relations. What's more, the way people buy coffee has changed. Counter Culture first grew by partnering with restaurants. Then, it expanded to coffee shops. And it evangelized its business via local training centers it opened around the country. Here, baristas can stop by to learn about the products, and even average customers can stop by to get a sense for what the business is about. Today, Counter Culture has over a dozen training centers in cities like New York, Los Angeles and Chicago.When the pandemic hit, Counter Culture's wholesale business cratered by 90%, but its direct-to-consumer revenue soared. Now, things are leveling off. But Smith said that he is focused on new areas of growth -- including airports and grocery.All of this means the company is still growing, but Smith is trying to figure out how to handle the growth sustainably. For example, he's expanding his facilities to better handle grocery and DTC orders -- which were straining the business due to their different packaging sizes."I think that the growth question is, ultimately, it comes down to working hard to grow sustainably. Would we all like to double every year? Yeah, in a certain way. But you got to understand what that means," he said. "You got to understand where is that going to create pressure? Where's that going to potentially compromise a long-term relationship?"

The eyeglasses industry is very competitive, but EyeBuyDirect is focused on cornering the market via affordability.The EssilorLuxotica-owned company has been around since 2005 and its primary focus has been on value: a pair of frames from EyeBuyDirect can be as cheap as $6. This week on the Modern Retail Podcast, CEO Sunny Jiang spoke about the company's trajectory and how she's been steering the ship.Jiang has been at EyeBuyDirect for 15 years -- she first took a job there when she was fresh out of university as a finance controller. She's risen the ranks ever since, going from operations director to general manager and then ultimately becoming CEO in 2017."Since I've become CEO the company has grown nearly 300%," she said.EyeBuyDirect was one of the first online-only glasses players. Though Zenni is a few years older, Warby Parker is much younger. And, according to Jiang, the way the company is able to sell glasses so cheaply is because of its business model. "we manage everything from the beginning to the end," she said. This includes manufacturing, logistics, even returns. "This allows us to have the ability or possibility to forward a lot of profitability directly to customers."When EyeBuyDirect first launched, there were hardly any digital competitors out there. Now, the playing field is a lot more intense, thanks to leaders like Warby Parker and America's Best. Over the last two years specifically, Jiang said that a number of competitors have also been upping their digital games. Still, she's confident that the company can continue to grow. According to her own competitive analysis, the top three or four eyeglass players only account for about half of the market. To her, that means she can continue taking market share and finding new customers.To do that, EyeBuyDirect recently underwent a rebrand, upgrading the look of the website and the company's marketing materials -- including its logo, fonts and overall imagery. On the program, Jiang described the entire process. "One of the reasons why we were thinking to rebrand is that we found the brand or the company didn't have a clear purpose," she said.With that done, Jiang is currently crafting a five-year plan for EyeBuyDirect's growth. This means boosting its customer service options and also trying to up its delivery speed."The category will continue to grow, and I will make sure that EyeBuyDirect will beat the benchmarks."

The next billion-dollar brand probably won't be a DTC startup.That's according to Jason Bornstein, principal at Forerunner Ventures. He's out there trying to look for the next big business to invest in, and he's not so sure online-only brands are the best way to go. Instead, he's focused on bigger innovations.Bornstein joined the Modern Retail Podcast this week and spoke about his background, investing thesis and the areas on which he's focusing right now. "What we're really looking for here are new business models -- innovations -- on the tech side," he said. "So is there technology underpinning the business?"Bornstein has been in digital retail for decades, hailing from early DTC entrants like Bonobos. And while those brands caught investors' eyes and were able to grow using a direct-to-consumer-only model, Bornstein isn't sure that will fly anymore."To be successful as a brand -- as a digital brand… there's going to be fewer venture dollars going into those businesses," he said.In his eyes, VC doesn't work well with most consumer-facing brands unless they have a real differentiator that the market has never before seen. And the tricks that earlier brands used to grow customers aren't enough to merit billion-dollar valuations.Instead, Bornstein is looking at new ways traditional business models are being upended. He named digital health care as one example, along with the rise of resale.But beyond that, Bornstein said he's also interested in the ways companies find customers and keep them. In the past, he said, 'there was very little focus on loyalty and on retention." Now, "I think we're going to see the next generation of brands be successful by focusing on that."Does that mean Bornstein and Forerunner aren't going to invest in any of the new digital-only retail brands? Not exactly. But, he said, "it's going to be fewer companies than we've done in the past."