Fredrickson: 40% of Stowaway's revenue came from repeat purchasing
Julie Fredrickson · EP 391: Why Gary V Led $1.5M Round In This Cosmetics Company · Aug 19, 2016 · at 6:07
Julie Fredrickson, CEO of Stowaway Cosmetics, shares key retention metrics demonstrating repeat purchase behavior for her company's makeup products.
0:00 / 0:03exact quote · 3.5s
720p mp4 · rendered on demand · StarZero watermark
“40% of our revenue last month came from repeat purchasing.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Julie Fredrickson
Fredrickson: Founders should price early rounds and treat current cash as last
“If you can price something and price it now, it gives you something to work from and gives you more stability because you never know when your next financing round is going to come. And you should always assume that you're on your own with the cash you have al…”
Fredrickson: Mid-2016 startup fundraising valuations dropped 50% from prior levels
“The prices that the market will bear now are about 50% lower than they were when we fundraised.”
Julie Fredrickson: 75% of women never finish purchased cosmetics
“It turns out, 75% of women don't finish the cosmetics they buy, not just before they expire, but at all.”
Fredrickson: Beauty incumbents sell unfinished products and face high re-acquisition costs
“Gary sees trends farther out than anyone I know, and I think what was appealing to Gary in this case is that the beauty industry is heavily entrenched, heavily consolidated, and is selling a product that people don't finish, and it's very expensive to acquire …”
Fredrickson: Independent DTC cosmetics brands achieve 90% margins versus 50% incumbents
“So if you go into the 10 K's of these companies, they're looking at about 50% margin, whereas typically when you're independent and don't necessarily need to leave room for these resellers your margins in cosmetics can get up to 90%.”