Ivory Ella's rise to a nine-figure brand is a perfect example of how powerful it is to combine clever online marketing, a commitment to a good cause, and a deep understanding of what young people care about. Starting off as a simple idea among friends, this clothing brand quickly grew big by using social media smartly to reach out to its audience and help save elephants. They've shown the world that it's possible to earn big while making a positive impact. By catching on to trends like Twitter and TikTok early, they've built a huge community that supports their mission. Ivory Ella's story proves that with the right mix of innovation, purpose, and community, even a small startup can become a major player in the business world, making a difference and achieving financial success.
Richard Henne: Absolutely, Chris. I'm Richard, now hitting the 30 mark, which feels surreal. Nearly nine years ago, Ivory Ella was born out of a collaboration between six founders, myself included. Interestingly, many of us hadn't met before this venture, bringing a diverse mix of ideas and personalities to the table. My journey into this started at Temple University, where I connected with two of the co-founders, John Allen, a close friend, and Jacob, a new acquaintance. Together, we explored the potential of social media marketing, particularly through themed Twitter accounts—anything from puppies to travel spots.
Our previous venture, Boho Outfitters, was our initial experiment with e-commerce, dealing in bohemian-themed apparel without a solid brand identity. It was a wholesale model, selling bulk purchases online for a modest profit. However, the desire to create something meaningful led us to join forces with Ryan, Matt, and Esma, who were also exploring social media's potential.
Our breakthrough came when we noticed a trend in elephant-themed products selling out, coinciding with growing awareness around elephant mistreatment highlighted by an HBO documentary on the Ringling Brothers circus. This sparked our concept to not just sell, but to stand out with a purpose—pledging to donate 10% of net profits to elephant conservation for the life of the brand. This commitment became our brand's foundation.
Leading up to our launch on April 18, 2015, we utilized our Twitter network to build anticipation, teasing the brand's mission and upcoming products. The excitement we generated was palpable, setting the stage for our official entry into the market. This initial phase was about more than selling; it was about laying the groundwork for a brand with a lasting impact.
Richard Henne: Our strategy hinged on creating a buzz without revealing too much too soon. We strategically teased our brand's unique proposition and launch date across our social media platforms, fostering anticipation. This method allowed us to gauge and build consumer interest progressively, ensuring that when we finally launched, there was a ready and eager audience. This approach wasn't just about marketing; it was about starting a movement toward a cause we were deeply passionate about, setting Ivory Ella apart from the beginning.
Richard Henne: Diving into the apparel industry was a strategic move, fueled by our previous success with Teespring campaigns. These experiences taught us the importance of trend-based designs and the power of social media marketing. Initially, we kept our product line simple—just a few designs in different colorways. The real test came when we launched; we sold out our inventory of 500 shirts in about five minutes, a testament to our marketing efforts rather than traditional paid advertising. This instant sell-out was exhilarating but also a reality check. We were suddenly out of stock, grappling with the challenge of meeting demand.
In response, we opted for a pre-order model, which allowed us to manage the unexpected surge in orders. This phase was all about improvisation and quick thinking. We relocated to Connecticut to consolidate our operations around one of our founders, Matt, transforming a storage unit into our initial fulfillment center. The logistics of producing and shipping shirts became a hands-on learning experience, from sourcing tees across the eastern seaboard to setting up a makeshift print and fulfillment center in a rented used car dealership.
Our grassroots approach extended beyond logistics; it was about building a community. Working with local high schoolers and being deeply involved in every step of the process created a unique company culture. Remarkably, this scrappy start-up phase led to $28 million in sales in our first year, primarily through Twitter, allowing us to donate $850,000 to elephant conservation. This journey wasn't just about creating a successful product line but about embedding our mission into every aspect of our business. It underscored the potential of small teams to make significant impacts, a lesson that has stayed with us as we continue to support various causes through our platform.
Richard Henne: Our marketing journey has indeed been guerrilla from the start, especially leveraging our Twitter network for initial brand awareness. The loss of access to those Twitter accounts in 2017 was a pivotal moment, forcing us to rethink our strategy beyond just leveraging social media followers. We embraced a mix of traditional digital marketing techniques, including email, SMS, and Facebook ads, but quickly realized that the essence of our brand couldn't thrive on those channels alone.
We decided to engage more directly with our audience through partnerships with up-and-coming creators and passionate customers, particularly targeting the Gen Z demographic. This approach was not just about promoting our products but also about amplifying our mission for social change and elephant conservation. The strategy extended to influencer partnerships, offering them a platform to align with meaningful causes rather than just another product endorsement. This genuine connection with our mission has made our marketing efforts more impactful.
Additionally, we've been proactive in responding to global issues, such as the Australian wildfires in 2020, by launching targeted products to support relief efforts. This agility has allowed us to not just sell products but also mobilize our community for broader social impact. Our efforts have spanned various causes, from conservation to childhood cancer prevention, demonstrating the potential of our brand to make a difference. The recognition at the World Wildlife Conference, with figures like Jane Goodall, underscores the significance of our work and the role of impactful marketing in driving our mission forward.
Richard Henne: Our journey through operational challenges was indeed unique. Initially, our cash flow was strong, which is a fortunate position, but it introduced us to a different set of problems. For example, we had little knowledge about third-party logistics (3PL) services and the infrastructure available to support growing brands. This lack of awareness led us to take a hands-on approach, deciding to manage logistics in-house.
We found ourselves moving buildings multiple times across Rhode Island and Connecticut to accommodate our growing inventory and operations. We established our own distribution center, handling everything from sourcing and printing t-shirts to shipping them out. This transition saw us evolving from using a shared space with an aqua massage bed company to setting up a 45,000-square-foot facility dedicated to our operations. The move was significant enough to warrant a ribbon-cutting ceremony officiated by the governor, highlighting our commitment to local employment and operational excellence.
However, managing these logistics internally, while rewarding, proved to be a distraction from our core mission of growing the brand. It presented a steep learning curve, with challenges ranging from reallocating physical resources like conveyor belts to optimizing production costs. Eventually, this experience contributed to our decision to merge with Nadham, leveraging the distribution center we built as a shared resource for multiple brands within their portfolio. This transition not only validated our efforts in building a robust operational backbone but also taught us valuable lessons in scalability and focus.
Richard Henne: Indeed, our distribution strategy has evolved significantly since our inception. Initially, we were purely DTC, but as we've grown, we've found a harmonious balance between DTC and wholesale, now split roughly 50/50. Coles, for instance, has emerged as a key wholesale partner, brilliantly extending our reach into the Gen Z market. This collaboration has proven invaluable, enabling us to connect with families and promote our cause on a larger scale. Additionally, we've ventured into platforms like Amazon, although our priority remains strengthening direct relationships with our customers through social media channels, particularly TikTok. Our early adoption of TikTok significantly bolstered our demographic engagement, exemplifying our commitment to staying ahead of digital trends and leveraging new platforms to amplify our message and mission.
Richard Henne: My motivation stems from a deeply personal place. Coming from a blue-collar background, the conventional path seemed most logical—secure a high-paying job and lead a comfortable life. However, witnessing others carve their own paths during college ignited my desire to forge my own legacy. This ambition, coupled with my love for video games and their intricate economies, fueled my entrepreneurial spirit. Today, every day feels like a privilege. The opportunity to mentor over a hundred employees, to see them grow alongside the company, and to contribute meaningfully to their lives and careers is incredibly fulfilling.
Moreover, the ability to support significant causes, such as our work in Kenya and contribution of $2.5 million to various charities, underscores the potential for businesses to make a real difference. This belief is not just a personal mantra but something I actively share with other entrepreneurs. In today's world, where profit often trumps purpose, I advocate for a balance—using success as a platform for positive change. This philosophy is at the heart of Ivory Ella and is what keeps me driven every single day.
Richard Henne: Currently, Ivory Ella is in a solid position, balancing well between our direct-to-consumer efforts and our thriving wholesale relationships. We're also playing a key role in supporting the brands within our holding company. On a personal note, I've shifted my focus towards mentoring other founders. This isn't about broad-scale marketing of my services but rather offering targeted guidance to entrepreneurs I've encountered over the years. My aim is to help them navigate the complexities of building a brand, leveraging my experiences to prevent them from stumbling into the same pitfalls I encountered. Beyond problem-solving and financial strategizing, I'm passionate about integrating charitable initiatives into business models, using my network of influencers to enhance brand impact. As I venture into this next chapter, my goal is to support those who are genuinely passionate about their work and are seeking meaningful growth.
Richard Henne: The most crucial advice I can offer is simply to start. Many potential entrepreneurs are hindered by the fear of failure and are concerned about judgment from others if their venture doesn't succeed. However, the biggest hurdle is often inaction. Without taking the initial step to launch your idea, you'll never receive the valuable feedback necessary for growth. It's important not to wait for the perfect moment or the perfect partnership; just begin, seek out opinions, and be prepared to iterate based on that feedback. Particularly in today's environment, where there's a strong focus on venture capital, I encourage founders to embrace a hands-on approach. You don't need a massive budget to start an e-commerce business; what's more important is your commitment to your vision and willingness to adapt. Start small, learn as you go, and take each day as it comes. That's the essence of true entrepreneurship.
Chris Choi: Really inspiring to hear your story. Thanks for sharing with us.
Richard Henne: Happy to share. I'm here to help anyone on their business journey. Thanks for letting me talk about it.
