A new lens on CPG with the VCs. Kofi Ampadu Skud Ventures.
A post curated by Odile Roujol Founder of the Fab Fashion and BeautyTech community, now 7000+ founders within the fashion and beauty space, in 15 chapters.
“Most probably a new beauty brand will have an exit through a Merger&Acquisition by a corporation.”
“ Raising too much money is not a good idea. In this context (not all companies becoming unicorns), I don’t think CPG founders should raise past a series A.”
Kofi reminded all of us of the role of word of mouth to grow organically, and the necessity of planning a path towards profitability, with reasonable product
margins.
“To be successful and continue to grow, you need to have a great product. Product quality is fundamental.”
Kofi checks in the due diligence the NPS, the customers reviews, the retention rate.
“Distribution is essential to grow.”
Kofi reminded all of us that retailers are Partners.
You need to choose them according to your Values and positioning
(Ex organic, affordable, edgy…)
Don’t rush! “You want to support the first doors, manage expectations if they want you everywhere. Learn form the first doors with a limited distribution to have a unique experience for the customers.”
Strategic partnerships help people to find you.
Micro-influencers could also drive traffic to you.
“New customer trends? Selfcare and Gender fluidity.
Selfcare
Healthcare in the US is so expensive, people realize that their
lifestyle enable them to avoid seeing doctors. They use products having benefits
outside and inside.
Blurred lines of gender
GenZ have destigmatized a lot of things. They are shaping our new behaviors.
Q&A
How to grow your consumer brand?
Build a community first.
Use Platforms. Clubhouse. Reddit. Facebook group…
Build the community gradually.
Listen to the audience, their User generated content.
It’s not up to you its where your consumer ease. Where the demand is.
The mix D2C and retailers?
At least 25% in D2C to learn from your customers. But it’s not a science!
Yes, Fund raising is super hard!
“People discount what you are doing until you prove who you are.”
Use your network, consider platforms such as Republic for crowdfunding.
If the consumer really like the products, they are your best advocates, and can become investors.
Ask VCs you have chosen “What do you need to see to invest.”
Write the metrics, contact them again when you have achieved what they are looking for.
Thank you Kofi for the radical candor, and refreshing tone of voice.
Grateful for Megan to have co-hosted the conversation with us, moderating the conversation.
Thank you to the Fab founders in LA, NYC, London, Paris, for the super interesting questions,
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