How I Built This with Guy Raz: Tatcha’s Vicki Tsai on Perseverance, Passion, and Purpose

In this compelling episode of How I Built This with Guy Raz, host Guy Raz delves into the inspiring journey of Vicki Tsai, the founder of Tatcha, a renowned skincare brand. Vicki’s story is one of resilience, passion, and unwavering dedication, showcasing how she transformed personal struggles into a globally recognized beauty empire.

1. Introduction

Guy Raz introduces Vicki Tsai, highlighting her remarkable journey of building Tatcha from her parents’ garage over seven challenging years without a salary. Despite numerous setbacks, Vicki’s perseverance led to Tatcha’s acquisition by Unilever for an impressive half-billion dollars in 2019.

Vicki Tsai [02:39]: "We ran out of money over and over and over again. I couldn't afford a salary, my partner couldn't afford a salary, I couldn't afford rent anymore..."

2. Early Life and Education

Vicki’s entrepreneurial spirit was nurtured early on while working for her mother’s small cosmetics shop in Houston. Her academic journey took her from UT Austin to Wellesley College, where she faced the challenges of a predominantly female environment. It was at Wellesley that Vicki met her future husband, Eric Tsai.

Vicki Tsai [06:33]: "I loved my experience at Wellesley, but it was very, very small... I wasn't expecting to meet men there."

3. Early Career and the 9/11 Incident

After graduating, Vicki and Eric moved to New York to work in finance, landing positions at Merrill Lynch. Their careers were abruptly interrupted by the tragic events of September 11, 2001. Vicki recounts the harrowing experience of being separated from Eric during the attacks, leading to profound personal and professional reflections.

Vicki Tsai [08:37]: "We were in one of the world financial centers... I was in a meeting when the first plane hit... I walked out and waited outside, hoping to find him."

4. Personal Challenges

The aftermath of 9/11 led Vicki and Eric to reassess their lives. Shortly after, Eric was diagnosed with a severe autoimmune disease, plunging the couple into financial and emotional turmoil. Concurrently, Vicki battled acute dermatitis, a debilitating skin condition exacerbated by her hectic lifestyle.

Vicki Tsai [15:00]: "It's very painful... when the barrier function of your skin has become disrupted... everything would start irritating it."

5. Transition to Business School

Determined to change their paths, Vicki and Eric enrolled in Harvard Business School. While there, Vicki interned with Procter & Gamble, refining her understanding of the beauty industry. This period was marked by relentless dedication, even amidst ongoing personal health struggles.

Vicki Tsai [14:05]: "I was working on SK II... I treated my face like a science experiment and gave myself acute dermatitis."

6. Discovery in Kyoto

In 2008, amidst financial strain and personal challenges, Vicki embarked on a pivotal trip to Kyoto, Japan. Seeking specialized blotting papers to manage her dermatitis, she encountered traditional geisha beauty practices. This discovery not only healed her skin but also ignited the spark for what would become Tatcha.

Vicki Tsai [27:43]: "I created Tatcha just as a way of sharing these things I was finding when I go there."

7. Founding of Tatcha

Inspired by the geisha’s skincare rituals, Vicki decided to bring these authentic, food-based ingredients to the U.S. market. Despite skepticism—from both Japanese insiders who deemed the products outdated and American beauty experts who dismissed Asian beauty trends—Vicki persevered. She named her brand Tatcha, embodying the essence of Japanese beauty simplicity.

Vicki Tsai [36:52]: "I saw this vision in my head of sharing these beautiful little treasures... I created Tatcha to share these things I was finding."

8. Overcoming Early Challenges

Launching Tatcha was fraught with challenges. Operating out of her parents' garage in Millbrae, Vicki struggled with financial constraints, managing inventory, and fulfilling orders while juggling motherhood. Her relentless efforts eventually attracted significant press coverage, including features in Vogue and an appearance on the Today Show.

Vicki Tsai [47:18]: "Pretty much everyone. Vogue did a spread. Oprah. It was on the Today show pretty quickly."

9. Strategic Decisions and Growth

By 2012, Tatcha began to gain momentum through strategic initiatives like appearing on QVC, which significantly boosted sales. Despite facing constant financial pressures and the temptation to sell the company, Vicki remained steadfast in her vision, ensuring that Tatcha’s growth was aligned with her core values and purpose.

Vicki Tsai [64:09]: "I was on a high wire act where the wire was getting moved higher and higher... forming a partnership with Room to Read helped solidify my commitment."

10. Private Equity and Leadership Transitions

In seeking stability, Vicki secured a private equity investment, which provided much-needed financial support but also introduced pressures to scale rapidly. This led to a pivotal moment where Vicki recognized the need for a dedicated CEO, allowing her to focus on product development and client relationships.

Vicki Tsai [73:18]: "I didn't have a model of female leadership... I needed to be liked too much. I didn't believe in myself."

11. Acquisition by Unilever

In 2019, after years of dedication and overcoming numerous obstacles, Vicki made the difficult decision to sell Tatcha to Unilever. This acquisition ensured that Tatcha would continue to thrive under a "forever home," allowing Vicki to focus on her passions while ensuring the brand’s longevity and purpose-driven mission.

Vicki Tsai [78:37]: "I created this thing to share what I was learning because I needed it in my life... I want it to live 100 years."

12. Reflections and Insights

Reflecting on her journey, Vicki attributes Tatcha’s success to unwavering persistence, the support of a dedicated team, and the pivotal role of luck. She emphasizes the importance of believing in oneself, especially as a female entrepreneur, and the value of aligning business goals with personal purpose.

Vicki Tsai [82:42]: "If I can do it and it's in the cards for you, then anybody can do it."

Conclusion

Vicki Tsai’s story is a testament to the power of resilience, authenticity, and purpose-driven entrepreneurship. From battling personal and financial hardships to founding and scaling a globally acclaimed beauty brand, Vicki’s journey with Tatcha offers invaluable lessons for aspiring entrepreneurs: never lose sight of your vision, embrace challenges as opportunities, and stay true to your core values.

Notable Quotes:

• Vicki Tsai [08:15]: "I'm not totally sure. I think I just wore him down. We've been together over 20 years now."

• Vicki Tsai [27:43]: "I created Tatcha just as a way of sharing these things I was finding when I go there."

• Vicki Tsai [73:18]: "I needed to be liked too much. I didn't want to come across as a difficult female leader."

• Vicki Tsai [82:42]: "If I can do it and it's in the cards for you, then anybody can do it."

Vicki Tsai’s How I Built This episode serves as a profound example of turning adversity into advantage, highlighting the importance of perseverance, cultural appreciation, and maintaining one’s integrity in the pursuit of entrepreneurial success.