Marcia Kilgore on Beauty Pie and FitFlop with Guy Raz | How I Built This | NPR

TL;DR

Strong brands can become more resilient by returning to business fundamentals, sharing leadership burdens, and responding directly to changing customer behavior. FitFlop offset part of its lost wholesale demand through rising online sales, while Beauty Pie attracted more members with direct lab-to-warehouse pricing that offered luxury cosmetics at substantially lower prices.

Transcript

hello and welcome to how i built this resilience edition how is everybody doing happy monday um even though i've been wearing pajamas for the past eight weeks i decided to dress up today because it is fashion and beauty week here on the show um and who better to kick it off than marcia kilgore founder of too many companies actually to name but nota... Read More

Key Insights

• Business resilience is strengthened by returning to basic marketing and operating principles. Kilgore says a crisis can help leaders question whether their activities are genuinely important or merely noise, creating an opportunity to refocus attention on the fundamentals that matter most.
• Shared leadership is an important source of resilience. Kilgore contributes ideas, creative direction, and customer insight while other people lead her companies, and she argues that sharing either a work burden or an emotional burden makes difficult problems feel significantly lighter.
• FitFlop's wholesale exposure created a major inventory challenge when retailers and distributors canceled forward orders. Because the company had been enjoying strong momentum, it had purchased 30 to 40 percent more product in addition to inventory originally intended for those partners.
• FitFlop's online channel softened the impact of retail closures. Online sales approximately doubled as customers who could not visit retailers purchased directly from the company, while the share of sales associated with online activity shifted from about one-third toward roughly two-thirds.
• Beauty Pie's model is based on direct lab-to-warehouse pricing for luxury cosmetics. The company sources products from about 59 laboratories around the world and offers them at prices described as approximately one-fifth of what comparable luxury products would normally cost.
• Beauty Pie's direct-to-consumer structure made it more resilient when physical retail activity stopped. The company was already selling outside traditional stores, and its rate of new member enrollment rose to about four times the previous daily level during the crisis.
• Affordable beauty products can remain attractive during a crisis because customers may economize without abandoning desired quality. Kilgore also connects demand to video meetings, personal care, small treats, and the need for something positive to anticipate when days feel repetitive.
• Effective remote presentations depend on storytelling, pacing, audience awareness, and iteration. Kilgore recommends reviewing each online presentation afterward, recording what failed or could improve, and reorganizing the presentation deck when body language and in-person group energy are unavailable.

Questions & Answers

Q: How can entrepreneurs build resilience during a crisis?

Entrepreneurs can build resilience by returning to the basic principles of their businesses and separating essential work from noise. Kilgore recommends staying closely connected to customers, concentrating on what they truly need, and sharing both operational and emotional burdens with trusted colleagues. A difficult problem can feel lighter when responsibility is distributed among capable people rather than carried by one founder alone.

Q: How did retail closures affect FitFlop's business?

Retail closures caused many FitFlop retailers and distributors to cancel their forward orders, creating a substantial inventory problem. The company sold through retailers in the United States, the United Kingdom, and 65 countries, so wholesale disruption was significant. The timing was especially difficult because FitFlop had been having a strong year and had purchased 30 to 40 percent more product to support its momentum.

Q: How did FitFlop use online sales during the crisis?

FitFlop benefited from customers moving to the internet when they could no longer shop through physical retailers. Its online sales approximately doubled, showing that customers still wanted the brand's shoes even while spending less time outside. Before the disruption, about one-third of the business was online. With retail unavailable, online activity represented roughly two-thirds, limiting the overall loss to about one-third.

Q: Why was Beauty Pie resilient when stores closed?

Beauty Pie was already structured as a direct-to-consumer company rather than a brand dependent on retail stores. Its products moved from laboratories to the warehouse under a pricing model designed to reduce the cost of luxury cosmetics. Because customers could join and purchase online, store closures did not disrupt its core channel, and new memberships increased to about four times their earlier daily level.

Q: How does Beauty Pie offer luxury cosmetics at lower prices?

Beauty Pie uses direct lab-to-warehouse pricing and sources luxury cosmetics from about 59 laboratories around the world. Kilgore says its prices are approximately one-fifth of what customers might normally pay for the same kind of luxury product. The model appeals to people who want to reduce discretionary spending while continuing to purchase beauty products at the quality level they prefer.

Q: Why did people continue buying beauty products at home?

Kilgore suggests that beauty products remained useful because people still wanted glowing skin for video meetings and needed routines that reinforced a sense of normal life. Personal care could also provide a small, affordable treat and something to anticipate when one day blended into another. Beauty Pie additionally served customers who wanted to economize without giving up the quality associated with luxury cosmetics.

Q: How can creative teams improve remote presentations?

Creative teams can improve remote presentations by emphasizing storytelling, anticipation, energy, pacing, and close attention to the audience. Kilgore notes that online meetings do not provide the same momentum or body-language signals as in-person sessions. After presenting, she writes down what did not work, identifies what could have been better, and reorganizes the presentation deck before using it again.

Q: What role does a founder play when others run the companies?

A founder can lead through vision without handling every operating responsibility. Kilgore describes herself as the ideas person who contributes on the creative side and stays connected with customers to understand their needs. Other people lead her companies day to day. This division gives the businesses capable operational leadership while allowing her to focus on ideas, customer insight, and creative direction.

Summary

In this video, Marcia Kilgore, founder of several successful companies including Bliss, Soap & Glory, and Beauty Pie, discusses resilience and entrepreneurship during challenging times. She shares insights on how she stays motivated, the importance of connecting with customers, and the opportunities that arise from difficulties.

Questions & Answers

Q: How is Marcia Kilgore coping with the current situation as a serial entrepreneur?

Marcia explains that as a serial entrepreneur, she sees the current situation as an opportunity to focus on the fundamentals of her businesses and to go back to the basics. She believes that a crisis forces entrepreneurs to evaluate the importance of their work and to identify what truly matters in their businesses.

Q: How is FitFlop, Marcia Kilgore's footwear company, doing right now?

FitFlop is facing challenges due to the shutdown of retailers and the cancellation of forward orders. Marcia explains that the company has had to figure out what to do with the excess inventory and has experienced a decline in sales. However, she also mentions that online sales have increased, showing the strength of the brand and the loyalty of its customers.

Q: How has the COVID-19 crisis affected PewdiePie, Marcia Kilgore's cosmetics brand?

Marcia shares that PewdiePie, being a direct-to-consumer brand, has actually seen an increase in new members and online sales. She attributes this to people being more responsible with their disposable income and looking for affordable luxury products during challenging times.

Q: How can entrepreneurs create the same creative magic with teams or clients in the new remote collaboration landscape?

Marcia suggests that storytelling and anticipation are crucial in fostering creative magic in remote collaborations. She emphasizes the need to find new ways to communicate effectively and to be mindful of the audience. Additionally, she advises evaluating and enhancing presentations or materials based on feedback and the new challenges of remote communication.

Q: How can entrepreneurs find platforms or support to brainstorm ideas in the current situation?

Marcia suggests using platforms like Zoom to gather people for brainstorming sessions. She highlights the availability of online resources, such as museum tours and webinars, that can stimulate creativity and provide inspiration. Marcia encourages embracing technology as a means of connecting and supporting one another.

Q: How does Marcia Kilgore stay motivated when things are not going as planned or when her personal life is not particularly motivating?

Marcia explains that staying motivated is a habit that comes from realizing that negative moments are temporary. She advises developing the habit of practicing gratitude, being mindful of one's gifts and blessings, and focusing on personal growth. She also suggests maintaining a positive mindset, practicing self-reflection, and remembering that difficult times are opportunities for learning and growth.

Q: Will the current crisis change the way people consume cosmetics and beauty products?

Marcia believes that some cosmetic brands will likely shift towards a direct-to-consumer model but still charge retail prices to maintain consistency across channels. She points out that the crisis has accelerated the transition to direct-to-consumer shopping and highlights the convenience and affordability of online purchases. However, she acknowledges that the future of retail is uncertain and that product testing and trying on cosmetics may be impacted.

Q: How can entrepreneurs hedge their bets and approach big decisions more cautiously in this environment?

Marcia explains that hedging bets can involve developing a wide range of skills and knowledge within a business to ensure adaptability and flexibility. By being able to handle multiple tasks, entrepreneurs can respond effectively to changing circumstances. Marcia also emphasizes the importance of being open to seeking advice and help, as well as drop the ego to fully explore opportunities.

Q: How can entrepreneurs find points of light despite limited external stimuli during this crisis?

Marcia suggests reframing the idea of limited stimuli by using available technology and resources to seek inspiration and connection. She recommends exploring virtual museum tours, reliable online content, or organizing brainstorming sessions via platforms like Zoom. Marcia believes that opportunities and sources of inspiration can be found even during challenging times and encourages nurturing authenticity and personal connection.

Q: How can entrepreneurs translate lessons learned during this crisis into future success?

Marcia emphasizes the importance of connecting deeply with customers, listening to their needs, and building authentic relationships. As she views this time as an opportunity for reflection and learning, she encourages entrepreneurs to embrace the habit of evaluating and adjusting their approach based on challenges and feedback. Marcia also highlights the value of quality time with family and emphasizes the need to maintain a positive and grateful mindset.

Takeaways

Marcia Kilgore's key takeaways are the importance of connecting with people, focusing on what really matters, taking time to listen and understand, embracing technology to facilitate communication and collaboration, and maintaining a positive mindset. She also emphasizes the significance of authenticity, gratitude, and personal growth in navigating challenges and embracing opportunities.

Summary & Key Takeaways

• Marcia Kilgore describes resilience as a return to business fundamentals. A crisis forces leaders to distinguish essential activities from noise, reconsider whether their work matters, and concentrate on customer needs. She also stresses that sharing operational and emotional burdens with capable colleagues can make difficult problems feel lighter and more manageable.

• FitFlop faced a severe inventory problem after retailers and distributors canceled forward orders across its international wholesale network. The company had purchased 30 to 40 percent more product during a period of strong momentum. Online sales then doubled, helping compensate for closed stores and demonstrating continued customer demand for the footwear brand.

• Beauty Pie entered the crisis with a direct-to-consumer model based on sourcing luxury cosmetics from 59 laboratories and shipping through its warehouse. New memberships increased to about four times their previous daily level as customers sought lower prices without surrendering quality. Affordable personal care also offered comfort during repetitive days at home.