Latest / The SME Stream / 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 · The SME Stream

• 0:00
  Speaker 1: Heather do to see how now nature Baby is going
• 0:02
  Speaker 1: to have another crack at the US market. If you've
• 0:04
  Speaker 1: had a baby in you know, the last couple of decades,
• 0:08
  Speaker 1: you'll know these guys really lovely, organic, fancy expensive baby.
• 0:12
  Speaker 1: We're founded in an Auckland Flatten nineteen ninety nine, are
• 0:14
  Speaker 1: now worth millions of dollars. They did actually have a
• 0:17
  Speaker 1: full range the US market. They had an online retailer
• 0:19
  Speaker 1: that took them in about a decade ago, but then
• 0:21
  Speaker 1: that retailer ran into trouble and so the thing ended.
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  Speaker 1: Jacob Fall is the co founder of nature Baby with
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  Speaker 1: his wife Gil Journey's with me.
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  Speaker 2: Now, hey, Jacob, hey, they thanks for having your shows.
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  Speaker 1: I think thanks for joining us. How's business going, by
• 0:34
  Speaker 1: the way, because it's a tough time out there, and
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  Speaker 1: I imagine that people when they trimly spending their trimly
• 0:39
  Speaker 1: spending on nice stuff like yours.
• 0:41
  Speaker 2: Yeah, it's tough. Nature Rebby is not immune from the
• 0:45
  Speaker 2: financial challenges that we've seen lights through the market, but
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  Speaker 2: we are seeing lots of green shoots. So I think
• 0:52
  Speaker 2: Nature Abby is a market suffers. I think when interest
• 0:55
  Speaker 2: rates go up, so the household spending comes down. But
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  Speaker 2: I think we're nate. Maybe people are buying into that
• 1:01
  Speaker 2: fact that, you know, maybe it lasts a bit longer,
• 1:03
  Speaker 2: or maybe they can pass it down or there's a
• 1:05
  Speaker 2: bit more value there. So we're still seeing strong sales
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  Speaker 2: and we're up on last year. So it's good.
• 1:10
  Speaker 1: Oh that's brilliant. So you're going to go into the
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  Speaker 1: US with this company many moons? Who are these guys?
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  Speaker 2: These are a really interesting company. They approached us about
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  Speaker 2: four years ago, straight out of Columbia Business School, and
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  Speaker 2: they were mature students that were involved in other industries
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  Speaker 2: and they had this idea to set up at first
• 1:30
  Speaker 2: higher business, so they would buy organic and natural baby
• 1:34
  Speaker 2: products and they would hire it out, and then quite
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  Speaker 2: quickly they pivot to pivoted to reselling, and now they've
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  Speaker 2: set up a hub and they take baby products back
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  Speaker 2: and distribute them across the US.
• 1:48
  Speaker 1: Yeah, so is this what you're talking about? Is they're
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  Speaker 1: like recycling of clothing where they'll sell the product first
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  Speaker 1: of all in an affluent suburb, and then when the
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  Speaker 1: family's finished having the babies, they bring it back. These
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  Speaker 1: guys will restore the product and then they will rent
• 2:01
  Speaker 1: it out or salad at maybe a less affluent suburb.
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  Speaker 2: Exactly exactly, So I think you hit the nail on
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  Speaker 2: the head. In terms of organic it's often seen as luxury.
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  Speaker 2: By they're turning that round and seeing it it's quality
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  Speaker 2: and that it can last up to eight times. And
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  Speaker 2: they tested other labels, so other labels were lasting about
• 2:20
  Speaker 2: two weirs before they had to recycle them, whereas nature
• 2:24
  Speaker 2: Baby was lasting up to about eight babies. So if
• 2:27
  Speaker 2: you took a garment that costs, say ten dollars, and
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  Speaker 2: you could wear it once or twice, that's five dollars
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  Speaker 2: per use. Whereas you take nature Baby, which is a
• 2:35
  Speaker 2: lot higher, let's say thirty five dollars, but you can
• 2:39
  Speaker 2: wear it eight times, so per use that was only
• 2:41
  Speaker 2: four dollars. So it's long long term, it's actually cheaper.
• 2:45
  Speaker 1: Yeah, thank you. And are you doing a similar thing
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  Speaker 1: in New Zealand? Now? Did I read that you're also
• 2:50
  Speaker 1: going to sort of like recycle clothing.
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  Speaker 2: Yeares. So we were just about to launch it on
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  Speaker 2: Thursday this week where we're running a take back scheme
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  Speaker 2: where we will take pre Love each Baby product back
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  Speaker 2: and then we'll give the customer recrudit to spend on
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  Speaker 2: you and then we'll take that product and put it
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  Speaker 2: into a resale market.
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  Speaker 1: How much are you going to give me for my
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  Speaker 1: old products? Jacob has got a lot.
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  Speaker 2: I've heard how much you've got here that So we're
• 3:16
  Speaker 2: trying to we're running it as a business model, so
• 3:18
  Speaker 2: we're giving it's twenty percent. So we researched it. We
• 3:22
  Speaker 2: looked at Noody Jeans, and we looked at Patagonia, and
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  Speaker 2: so we're going to give twenty percent back that you
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  Speaker 2: can use on you and then we're looking at then
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  Speaker 2: reselling that product. And so I think at the end
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  Speaker 2: we net out because the cost of running a pre
• 3:38
  Speaker 2: love recycle program actually has quite a high cost to it.
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  Speaker 2: But we're determined to look at how we can make
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  Speaker 2: that work so the customers are getting that just can't upfront,
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  Speaker 2: and then we're able to then take that into a
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  Speaker 2: resale market and make a business of that as well.
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  Speaker 2: So I should have a lot.
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  Speaker 1: You mean a lot of money when I'm finished selling
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  Speaker 1: all my.
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  Speaker 2: Stuff back to you at a lot of product.
• 3:59
  Speaker 1: Yeah, to get it back, I'll tell you what you
• 4:02
  Speaker 1: made my month. The other day, I was walking down
• 4:04
  Speaker 1: the down on the waterfront and I came across the
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  Speaker 1: Nature Baby sail like. I hadn't seen the adverts or
• 4:08
  Speaker 1: anything like that, mate. I just honestly, I am still
• 4:12
  Speaker 1: on the dope of meine high from all the stuff
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  Speaker 1: I got for ten dollars from you guys.
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  Speaker 2: Fantastic. Yeah, we love it. You love what we love
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  Speaker 2: those those events where we can we're getting front of customers,
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  Speaker 2: and I mean to be honest, it is a higher price,
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  Speaker 2: and we're trying to look at programs like that, which
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  Speaker 2: is essentially outlet stocks, so that's over stocks for whatever
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  Speaker 2: reason and pre loved and so we can access give
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  Speaker 2: access to all customers. So rather than just having this
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  Speaker 2: organic as luxury, it's organicer's quality that we can sell
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  Speaker 2: all the way through.
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  Speaker 1: Yeah, good stuff, man, Best of luck with the foreuneto
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  Speaker 1: the US market. I really hope it goes well for you.
• 4:54
  Speaker 1: Jacob Jacob for Nature Baby, co founder,