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 trend business whereas David developed experience in promoting, advertising and marketing 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 ability units below their belts, the siblings determined to begin a direct-to-consumer model below 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 manufacturers),” 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 this time.”
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Rae’s work within the equipment area sparked her preliminary imaginative and prescient for the model. She had a deep understanding of leather-based merchandise and the way the business labored, however the price of high quality items remained a barrier for a lot of shoppers, together with herself.
“I discovered myself in my 20s, working lengthy hours within the trend business, and realizing that I might by no means afford the baggage that I used to be engaged on,” Rae remembers. “Worth level and high quality have been actually necessary to me. I believed that there (needed to be) a greater method.”
Picture Credit score: Courtesy of Leatherology
Rae wished Leatherology to offer high-quality, timeless leather-based designs at an affordable worth, on to shoppers, and she or he requested David if he might 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 outdoors funding, the founders can at all times make selections which can be within the enterprise’s greatest curiosity.
”We discuss it (like) we’re constructing the home we need to dwell in, not the home that we will flip after which attempt to promote for probably the most amount of cash,” Rae explains. “It implies that we make strategic selections and make investments very closely in issues that you simply would not should you have been on the lookout for an exit.”
Within the founders’ view, sensible development is “sluggish and regular”— and interprets to “absolute freedom.”
”We pleasure 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 selections which can be going to be good for our longevity.”
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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 completely different colours and font choices.
“We have been doing hand portray for years,” Rae says. “Lots of people within the area do digitally printed personalization. You normally solely see the luxurious homes nonetheless doing hand portray, however we have type of caught to our weapons — (and to) this concept of craft. So that is what we’re nonetheless doing. We now have artisans who paint every letter, and we’re really about to develop that assortment with extra fonts and letter sizes for the primary time shortly.”
The vertical integration mannequin makes that focus to element and stage of personalization attainable, the founders say. Leatherology can also be about to launch an possibility for customized artworks, permitting individuals to add their very own designs — for instance, a handwritten be aware — to characteristic on the merchandise.
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Picture Credit score: Courtesy of Leatherology
3. Do not underestimate the worth of diversified advertising and marketing
Leatherology did not depend on social media for its development within the early days; as a substitute, the founders laid the muse for the model, then diversified its advertising and marketing channels.
The model has a “sturdy” B2B enterprise, working with Fortune 500 firms and small companies alike to place their logos on merchandise that they present to shoppers and staff.
“ A variety of our shoppers 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 (development from) phrase of mouth, which is crucial and most cost-effective type of advertising and marketing you’ll find. 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 remembers one time when he met with a consumer whereas at Google and talked about his household’s model: A girl pulled out her personal Leatherology bag, mentioned she’d acquired it as a present and had been giving one to everybody — an ideal instance of that “snowball impact.”
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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 need to personal the personalization area,” Rae says. “I need to change into often called the go-to, that we’re doing issues higher than others in a method that’s extra accessible. We dwell in a really consumerist society, and I clearly would love for individuals 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 offers them a definite benefit, particularly as their long-term targets and pursuits have at all times aligned.
“It is humorous, our father says, ‘You guys can argue about something however do not ever combat about cash,'” David says, “(and) that is one thing we simply by no means argue about. We need to construct this firm, and we have now the identical drive and motivation to take action. As Rae mentioned, we need to construct this home. Finally, having that long-term alignment is difficult to copy with somebody who is not your individual sister.”
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