How I Built This with Guy Raz – Episode Summary: "Advice Line with Vicky Tsai of Tatcha"

Podcast Information:

• Title: How I Built This with Guy Raz
• Host: Guy Raz | Wondery
• Episode: Advice Line with Vicky Tsai of Tatcha
• Release Date: February 6, 2025

Overview: In this engaging episode of How I Built This, host Guy Raz sits down with Vicky Tsai, co-founder and former CEO of the renowned skincare brand Tatcha. The episode focuses on the "Advice Line" segment, where budding entrepreneurs call in to seek guidance on their business challenges. Vicky shares her profound insights from her entrepreneurial journey, providing invaluable advice to three inspiring callers: Jessica Liu of Petite Anjou, Brittany Lowe of Beya Bea, and Devin Clymer of Mugsy Bakes.

1. Vicky Tsai’s Entrepreneurial Journey

Introduction and Background ([00:00] - [09:35]): Guy Raz introduces Vicky Tsai, highlighting her pivotal role in building Tatcha from its inception in 2008 to its status as a multimillion-dollar brand now owned by Unilever. Vicky recounts her transition from a corporate career in finance and Starbucks to founding Tatcha after a life-changing trip to Japan inspired her passion for skincare.

Key Insights:

• Career Pivot: Vicky discusses the moment she decided to leave her corporate job without a safety net, driven by a 50% chance of happiness if she pursued her passion versus a 100% chance of unhappiness if she stayed ([05:31]).

  “I quit my day job without any safety net because I just felt that corporate life was so soul-crushing.” – Vicky Tsai ([05:31])

• Stepping Down and Returning as CEO: In 2018, Vicky stepped down as CEO following private equity investment, which introduced a seasoned leadership team. She later returned in 2021 to lead the company through a challenging period marked by COVID-19 and rising anti-Asian sentiment, ultimately establishing a diverse leadership team ([06:04] - [07:47]).

  “It was an honor to step back in and lead in a different way that I never thought possible.” – Vicky Tsai ([07:47])

• Overcoming Imposter Syndrome: Vicky candidly discusses battling imposter syndrome despite evident success and a proven track record. She emphasizes the importance of self-belief and resilience.

  “I have to become my own hype machine in my head. Every day I have to be like, I can do it.” – Vicky Tsai ([08:21])

2. Caller 1: Petite Anjou with Jessica Liu ([09:43] - [20:16])

Business Overview: Jessica Liu, founder of Petite Anjou, designs and handcrafts demi-fine and fine jewelry characterized by a playfully sculptural aesthetic. As a self-taught metalsmith transitioning from a corporate legal background, Jessica seeks advice on increasing visibility and brand awareness in a saturated jewelry market.

Challenges:

• High Price Point Products: With prices ranging from $195 to $1600, Jessica finds it challenging to market without relying on samples or influencer gifting.

  “Jewelry is a super saturated industry... it's tricky because I can't give them samples to try in person.” – Jessica Liu ([12:10])

Advice Provided:

• Showcase Craftsmanship: Vicky emphasizes the importance of highlighting the craftsmanship and the story behind each piece to attract clients who value quality and uniqueness.

  “Allowing people to see the work that goes into crafting your products... TikTok is a really great place for that.” – Vicky Tsai ([13:44])

• Inventory Management: Suggests transitioning to a limited production model to manage capital effectively, such as producing only a few pieces per design based on demand.

  “Only make one of each design, show it to people, and then if they want it, then you get... scale from there.” – Vicky Tsai ([13:44])

• Leveraging Existing Clients as Advocates: Instead of broad sampling, turning passionate customers into brand ambassadors can organically increase word-of-mouth recommendations.

  “Talking to your best clients and asking how you can serve them more to become your ambassadors.” – Vicky Tsai ([14:35])

Jessica’s Reflections: Jessica acknowledges the value of building a community and enhancing storytelling on her platforms, expressing excitement about implementing the suggestions.

“I do try to showcase the craftsmanship on my Instagram page. But you're right, I do think I could do more of that.” – Jessica Liu ([15:35])

3. Caller 2: Beya Bea with Brittany Lowe ([23:59] - [35:58])

Business Overview: Brittany Lowe, founder and CEO of Beya Bea, offers premium vegan skincare targeting intimate concerns such as sweat odor and body blemishes. Starting her entrepreneurial journey at 16 with Bello Cosmetics, Brittany pivoted to Beya Bea amid the pandemic to focus on femcare.

Challenges:

• Navigating a Saturated Market: With a saturated beauty industry, Brittany seeks strategies to break through and land major retailers like Sephora and QVC while building brand awareness.

  “If people don't know about your brand and don't understand your mission, it's not going to succeed in store.” – Vicky Tsai ([29:34])

Advice Provided:

• Focus on Building a Strong Brand and Client Base: Vicky advises Brittany to concentrate on creating a compelling brand story and deepening client relationships before pursuing retailer partnerships.

  “Focus on your client and make sure she understands why she needs this, why to believe in you, and why you care so much about her.” – Vicky Tsai ([29:34])

• Collaborative Partnerships: Suggests partnering with complementary brands to co-market and share audiences, thereby expanding reach without significant financial outlay.

  “Partner with a complementary clothing brand or bag brand to share lists and conduct joint trunk shows.” – Vicky Tsai ([33:40])

• Creative Marketing Strategies: Encourages leveraging social media with authentic storytelling and potentially humorous, relatable content to resonate with the target audience.

  “Build the storytelling in a really fun, relatable way.” – Guy Raz ([35:29])

Brittany’s Reflections: Brittany appreciates the advice, recognizing the importance of aligning storytelling with her brand values and maintaining focus on empowering women.

“I love that. It's very valuable insight for me to really implement.” – Brittany Lowe ([30:01])

4. Caller 3: Mugsy Bakes with Devin Clymer ([38:39] - [51:56])

Business Overview: Devin Clymer, co-founder of Mugsy Bakes, introduces a line of single-serve, gluten-free mug cake mixes that offer convenience without the mess. Targeting modern millennials, Mugsy Bakes aims to provide a quick and enjoyable dessert experience.

Challenges:

• Generating Buzz and Building Community: As a pre-launch brand with minimal following, Devin seeks effective strategies to create buzz and cultivate a supportive community around her product.

  “How to generate buzz and more importantly, build a community when we have essentially, you know, no following or a very little following.” – Devin Clymer ([42:45])

Advice Provided:

• Local Engagement and Demonstrations: Vicky recommends focusing on local markets first by showcasing the product in real-time settings like farmers' markets, allowing potential customers to see the product in action.

  “Start really showing people how this works… have a microwave oven at a farmer's market and just make these.” – Vicky Tsai ([47:58])

• Social Media Content: Encourages creating engaging and relatable content on platforms like TikTok, including storytelling and humorous videos that highlight the product's convenience and unique features.

  “Create lighthearted, funny videos that resonate and have the potential to go viral.” – Guy Raz ([32:11])

• Strategic Partnerships and Packaging Innovations: Suggests innovating packaging, such as reusable mugs or themed kits for special occasions, and exploring co-marketing opportunities with dating apps or other relevant brands.

  “Partner with platforms like Tinder or Bumble and create themed kits for occasions.” – Vicky Tsai ([49:38])

Devin’s Reflections: Devin expresses excitement about implementing the creative marketing strategies and acknowledges the importance of community building.

“These are wonderful recommendations, so thank you for that.” – Devin Clymer ([50:16])

5. Final Thoughts and Reflections

Vicky Tsai’s Closing Advice ([52:03] - [53:12]): As the episode concludes, Vicky shares heartfelt advice for aspiring entrepreneurs based on her experiences.

“The entrepreneurial journey is so thrilling but so intensely difficult. Don't make it harder on yourself by carrying around self doubt.” – Vicky Tsai ([52:25])

Inspirational Quote: Vicky emphasizes the importance of decisiveness and confidence in the entrepreneurial path.

“Let go of the idea of can I do it? And you just say I will do it.” – Vicky Tsai ([53:12])

Guy Raz’s Final Remarks ([53:38] - [54:04]): Guy wraps up the episode by encouraging listeners to check out Vicky's original How I Built This episode and highlights a poignant moment from Vicky’s journey when she overcame financial struggles to build her high-end clientele.

“We ran out of money over and over... I couldn’t afford a salary, my partner couldn’t afford a salary... we had this really, really incredible high end clientele.” – Vicky Tsai ([53:38])

Key Takeaways:

• Authentic Storytelling: Building a strong, relatable brand story is crucial for standing out in saturated markets.
• Community Building: Engaging with and nurturing a loyal customer base can drive organic growth and brand advocacy.
• Strategic Partnerships: Collaborating with complementary brands and leveraging local markets can enhance visibility and reach.
• Confidence Over Doubt: Overcoming self-doubt and maintaining unwavering belief in one’s vision are essential for entrepreneurial success.
• Adaptability: Pivoting strategies based on market demands and maintaining flexibility can help navigate challenges.

Notable Quotes:

• “I quit my day job without any safety net because I just felt that corporate life was so soul-crushing.” – Vicky Tsai ([05:31])
• “Let go of the idea of can I do it? And you just say I will do it.” – Vicky Tsai ([53:12])

Conclusion: This episode of How I Built This offers a treasure trove of insights for entrepreneurs at various stages of their journey. Vicky Tsai's experiences with Tatcha provide a compelling blueprint for overcoming adversity, building a passionate community, and maintaining the integrity of a brand’s vision. Combined with the real-world challenges and solutions presented by the callers, listeners gain a multifaceted understanding of what it takes to build and sustain iconic brands.

Listen to the full episode on the Wondery App or your preferred podcast platform to dive deeper into these inspiring entrepreneurial stories.