Latest / Best of Business / Jacob Faull: Nature Baby co-founder on the company's planned expansion into the US

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Jacob Faull: Nature Baby co-founder on the company's planned expansion into the US · Best of Business

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  Speaker 1: You're listening to a podcast from News talks'd be follow
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  Speaker 1: this and our wide range of podcasts now on iHeartRadio. Heather,
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  Speaker 1: do for see how.
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  Speaker 2: Our nature Baby is going to have another crack at
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  Speaker 2: the US market. If you've had a baby in you know,
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  Speaker 2: the last couple of decades, you'll know these guys really lovely, organic,
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  Speaker 2: fancy expensive baby. We're founded in an Auckland Flatten ninety
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  Speaker 2: ninety nine are now worth millions of dollars. They did
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  Speaker 2: actually have a full range the US market. They had
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  Speaker 2: an online retailer that took them in about a decade ago,
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  Speaker 2: but then that retailer ran into trouble and so the
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  Speaker 2: thing ended. Jacob Fall is the co founder of nature
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  Speaker 2: Baby with his wife Gil journeys with me.
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  Speaker 3: Now, hey, Jacob, Hey, thanks for having your shows.
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  Speaker 2: Yeah, thank thanks for joining us. How's business going, by
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  Speaker 2: the way, Because it's a tough time out there, and
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  Speaker 2: I imagine that people when they trimly spending their trimly
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  Speaker 2: spending on nice stuff like yours.
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  Speaker 3: Yeah, it's tough. Nature Baby is not immune from the
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  Speaker 3: financial challenges that we've seen lights through the market, but
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  Speaker 3: we are seeing lots of green shoots. So I think
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  Speaker 3: Nates Baby is a market suffers. I think when interest
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  Speaker 3: rates go up, so the household spending comes down. But
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  Speaker 3: I think we're Nate's Baby. People are buying into that
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  Speaker 3: fact that, you know, maybe it lasts a bit longer,
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  Speaker 3: or maybe they can pass it down or there's a
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  Speaker 3: bit more value there. So we're still seeing strong sales
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  Speaker 3: and we're up on last year. So it's good.
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  Speaker 2: Oh that's brilliant. So you're going to go into the
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  Speaker 2: US with this company many moons? Who are these guys?
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  Speaker 3: These are a really interesting company. They approached us about
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  Speaker 3: four years ago, straight out of Columbia Business School, and
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  Speaker 3: they were mature students that were involved in other industries
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  Speaker 3: and they had this idea to set up at first
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  Speaker 3: higher business, so they would buy organic and natural baby
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  Speaker 3: products and they would hire it out, and then quite
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  Speaker 3: quickly they pivot to pivoted to reselling, and now they've
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  Speaker 3: set up a hub and they take baby products back
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  Speaker 3: and distribute them across the US.
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  Speaker 2: Yes, so is this what you're talking about? Is they're
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  Speaker 2: like re cycling of clothing, where they'll sell the product
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  Speaker 2: first of all in an affluent suburb and then when
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  Speaker 2: the family's finished having the babies, they bring it back.
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  Speaker 2: These guys will restore the product and then they will
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  Speaker 2: rent it out or seal it at maybe a less
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  Speaker 2: affluent suburb.
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  Speaker 3: Exactly exactly, So I think you hit the nail on
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  Speaker 3: the head. In terms of organic it's often seen as luxury,
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  Speaker 3: but they're turning that around and seeing it it's quality
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  Speaker 3: and that it can last up to eight times. And
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  Speaker 3: they tested other labels, so other labels were lasting about
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  Speaker 3: two weirs before they had to recycle them, whereas nature
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  Speaker 3: Baby was lasting up to about eight babies. So if
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  Speaker 3: you took a garment that costs, say ten dollars, and
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  Speaker 3: you could wear it once or twice, that's five dollars
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  Speaker 3: per use. Whereas you take nature Baby, which is a
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  Speaker 3: lot higher, let's say thirty five dollars, you can wear
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  Speaker 3: it eight times, so per use that was only four dollars.
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  Speaker 3: So it's long long term, it's actually cheap.
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  Speaker 2: At yeah, thank you. And are you doing a similar
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  Speaker 2: thing in New Zealand? Now did I read that where
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  Speaker 2: you're also going to sort of like recycle cloth then.
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  Speaker 3: Years So we were just about to launch it on
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  Speaker 3: Thursday this week where we're running a take back scheme
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  Speaker 3: where we will take pre Love Thaktu baby product back
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  Speaker 3: and then we'll give the customer recrudit to spend on you,
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  Speaker 3: and then we'll take that product and put it into
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  Speaker 3: a resale market.
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  Speaker 2: How much are you going to give me for my
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  Speaker 2: old products, Jacobs?
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  Speaker 3: I've heard how much you've got here that so we're
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  Speaker 3: trying to we're running it as a business model, so
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  Speaker 3: we're giving it's twenty percent. So we researched it. We
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  Speaker 3: looked at Noody Jeens, and we looked at Patagonia, and
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  Speaker 3: so we're going to give twenty percent back that you
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  Speaker 3: can use on you and then we're looking at then
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  Speaker 3: reselling that product. And so I think at the end
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  Speaker 3: we net out because the cost of running a pre
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  Speaker 3: Love recycled program actually has quite a high cost to it.
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  Speaker 3: But we're determined to look at how we can make
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  Speaker 3: that work so the customers are getting that just can't upfront,
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  Speaker 3: and then we're able to then take that into a
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  Speaker 3: resale market and make a busines that as well.
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  Speaker 2: You should have a lot you mean a lot of
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  Speaker 2: money when I'm finished selling all my stuff back to you.
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  Speaker 3: A lot of product. Yeah, to get it back I'll.
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  Speaker 2: Tell you what you made my month. The other day,
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  Speaker 2: I was walking down the down on the waterfront and
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  Speaker 2: I came across the Nature Baby sail like I hadn't
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  Speaker 2: seen the adverbs or anything like that. Mate. I just honestly,
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  Speaker 2: I am still on the dopamine high from all the
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  Speaker 2: stuff I got for ten dollars from you guys.
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  Speaker 3: Fantastic. Yeah, we love it. You love what we love
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  Speaker 3: those those events where we can we're we're getting front
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  Speaker 3: of customers, and I mean to be honest, it is
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  Speaker 3: a higher price, and we're trying to look at programs
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  Speaker 3: like that, which is essentially outlet stock, so that's over
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  Speaker 3: stocks for whatever reason and pre loved and so we
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  Speaker 3: can access give access to all customers. So rather than
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  Speaker 3: just having this organic as luxury, it's organic as quality
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  Speaker 3: that we can sell sell all the way through.
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  Speaker 2: Ye good stuff man. Best of luck with the forayeto
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  Speaker 2: the US market. I really hope it goes well for you.
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  Speaker 2: Jacob Jacob full Nature Baby co founder.
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