Beardbrand, the direct-to-consumer business founded 15 years ago, has encountered a period of stagnation. Revenue has declined from its peak, and mistakes have been made.
In the realm of beard care, the landscape has become less fertile. The business has transitioned from a blue ocean of growth to a red ocean of intense competition. As Beardbrand grows, competitors lose, and vice versa.
This episode deviates from the usual interview format to outline the plans for propelling Beardbrand forward. The aim is to assist other merchants facing similar challenges.
The entire audio narrative is available below, with the transcript edited for clarity and conciseness.
Growth Strategies
While the name “Beardbrand” may pose a challenge in a stagnant market, the company offers more than just beard products. It also provides colognes, deodorants, bar soaps, shampoos, conditioners, and hair styling products, establishing itself as a comprehensive men’s grooming company.
Focus. By tightening their focus on effective strategies, Beardbrand is prioritizing Meta as a top customer acquisition channel. Despite the volatility and rising costs of advertising on Meta, there are still opportunities to explore and enhance the promotion of product categories.
They are considering partnerships with Meta content creators to reach new audiences and plan to triple their ad spend on Meta.
Social media. While organic social media efforts have been challenging, collaborating with content creators on platforms like YouTube and TikTok is proving to be more effective. Sending product samples to TikTok creators through the affiliate network has shown early signs of success.
Product development. Beardbrand is focusing on improving existing products rather than launching new ones. However, they are contemplating the introduction of a premium beard trimmer, aiming for a high-end market segment.
Packaging. Despite a misstep in altering packaging for a potential partnership with Target, Beardbrand plans to retain the distinctive aluminum packaging while offering a more affordable glass-and-plastic option on Amazon.
Cross-border selling. The recent launch on OpenBorder facilitates product distribution in European countries with fewer regulatory hurdles, potentially contributing an additional 10% to 20% of revenue.
Amazon. Despite the competitive nature and rising fees on Amazon, Beardbrand is committed to leveraging higher-priced ads to acquire new customers and sustain profitability.
Strategies to Avoid
Barbershops. While Beardbrand operates a successful barbershop in Austin, expansion is not on the agenda due to the substantial capital investment required.
Wholesale. The focus remains on smaller independent retailers rather than mass retailers like Target or Walmart, as the latter would necessitate significant preparation.
Google Search ads. Beardbrand has refrained from utilizing Google Search ads for the past two years without adverse effects.
YouTube advertising. While there is potential for success with YouTube ads, Beardbrand is currently concentrating on optimizing organic content to engage and convert potential customers.
Connect with Us
Explore Beardbrand’s offerings at Beardbrand.com. Join the D2C community on X and follow @bandholz for updates and discussions. Share your ideas, successes, and setbacks as we navigate this journey together.
