Rae and David Liu, the brother-sister co-founders behind luxurious leather-based equipment model Leatherology, “had the entrepreneurial bug” from a younger age — however they did not make the leap to enterprise possession instantly.
Picture Credit score: Courtesy of Leatherology. David and Rae Liu.
Initially from Dallas, Texas, the siblings’ early work experiences took them to New York and elsewhere: Rae launched a profession within the vogue trade whereas David developed experience in promoting, advertising and gross sales.
In 2001, their father, David Liu, an entrepreneur himself, formally included the vertically built-in ecommerce firm DC Worldwide. With complementary skilled talent units beneath their belts, the siblings determined to start out a direct-to-consumer model beneath DC Worldwide’s umbrella: Leatherology.
“We personal our manufacturing in China, and it is actually distinctive as a result of it is ours, wholly owned, and solely produces for [our brands],” David says. “In order that makes us end-to-end. Leatherology is constructed on prime of that. [Entrepreneurship] runs in our blood, and it is introduced us to the place we’re at the moment.”
Rae’s work within the equipment house sparked her preliminary imaginative and prescient for the model. She had a deep understanding of leather-based merchandise and the way the trade labored, however the price of high quality items remained a barrier for a lot of customers, together with herself.
“I discovered myself in my 20s, working lengthy hours within the vogue trade, and realizing that I may by no means afford the luggage that I used to be engaged on,” Rae recollects. “Value level and high quality had been actually essential to me. I believed that there [had to be] a greater manner.”
Picture Credit score: Courtesy of Leatherology
Rae needed Leatherology to supply high-quality, timeless leather-based designs at an inexpensive value, on to customers, and he or she requested David if he may use his promoting background to assist. In fact, David agreed. The duo launched the enterprise in 2008.
Within the years since, Leatherology has grown into an 8-figure model, even amid provide chain volatility and financial uncertainty.
Entrepreneur sat down with Rae and David to be taught extra about their profitable development methods — and what’s subsequent for the model.
1. Self-fund and personal the method
Leatherology has been self-funded from day one; with out exterior funding, the founders can all the time make choices which are within the enterprise’s finest curiosity.
”We speak about it [like] we’re constructing the home we wish to reside in, not the home that we’ll flip after which attempt to promote for essentially the most amount of cash,” Rae explains. “It implies that we make strategic choices and make investments very closely in issues that you simply would not if you happen to had been searching for an exit.”
Within the founders’ view, good development is “sluggish and regular“— and interprets to “absolute freedom.”
”We satisfaction ourselves on sustaining a worthwhile enterprise,” David provides, “one that may climate ups and downs over time. We have been capable of flip a revenue yearly, and it permits us to actually take into consideration the enterprise choices which are going to be good for our longevity.”
2. Lean into high quality and what units the product aside
From the very starting, the founders prioritized high quality craftsmanship and monogrammed personalization in Leatherology’s merchandise.
The model first utilized blind stamping, the place initials are pressed into the fabric, then launched foil to its designs, increasing to incorporate totally different colours and font choices.
“We have been doing hand portray for years,” Rae says. “Lots of people within the house do digitally printed personalization. You normally solely see the luxurious homes nonetheless doing hand portray, however we have form of caught to our weapons — [and to] this concept of craft. So that is what we’re nonetheless doing. Now we have artisans who paint every letter, and we’re really about to broaden that assortment with extra fonts and letter sizes for the primary time shortly.”
The vertical integration mannequin makes that spotlight to element and degree of personalization attainable, the founders say. Leatherology can also be about to launch an choice for customized artworks, permitting folks to add their very own designs — for instance, a handwritten be aware — to characteristic on the merchandise.
Associated: How ‘V-Commerce’ Might Be the Subsequent Massive Pattern for Startups
Picture Credit score: Courtesy of Leatherology
3. Do not underestimate the worth of diversified advertising
Leatherology did not depend on social media for its development within the early days; as an alternative, the founders laid the inspiration for the model, then diversified its advertising channels.
The model has a “strong” B2B enterprise, working with Fortune 500 corporations and small companies alike to place their logos on merchandise that they reward to shoppers and workers.
“ Plenty of our customers who’ve been with us for years, their first time listening to about Leatherology was really [when] receiving it as a present,” David says. “That has actually yielded [growth from] phrase of mouth, which is a very powerful and least expensive type of advertising you will discover. So we’re leaning into gift-giving. We’re doubling down on that as we go into this vacation season, creating extra giftable, curated moments.”
David even recollects one time when he met with a shopper whereas at Google and talked about his household’s model: A lady pulled out her personal Leatherology bag, stated she’d obtained it as a present and had been giving one to everybody — an ideal instance of that “snowball impact.”
Associated: This Is Why Phrase-of-Mouth Referrals Ought to Be Your Quantity One Metric of Success
Now, because the model continues to develop, Rae and David are excited to pursue Leatherology’s worldwide enlargement and double down on its dedication to innovation and customization.
“ I actually wish to personal the personalization house,” Rae says. “I wish to turn out to be often known as the go-to, that we’re doing issues higher than others in a manner that’s extra accessible. We reside in a really consumerist society, and I clearly would love for folks to purchase higher and devour higher and never purchase a budget stuff, however purchase one thing that is going to last more from us.”
Picture Credit score: Courtesy of Leatherology
What’s extra, the founders say that working as a household enterprise provides them a definite benefit, particularly as their long-term targets and pursuits have all the time aligned.
“It is humorous, our father says, ‘You guys can argue about something however do not ever struggle about cash,'” David says, “[and] that is one thing we simply by no means argue about. We wish to construct this firm, and now we have the identical drive and motivation to take action. As Rae stated, we wish to construct this home. Finally, having that long-term alignment is difficult to copy with somebody who is not your personal sister.”
Need to learn extra tales like this? Subscribe to Cash Makers, our free publication filled with inventive facet hustle concepts and profitable methods. Enroll right here.
