The Glossy Podcast Episode Summary:
Title: True Classic CEO Ben Yahalom: 'Diversification is key to marketing success'
Host: Jill Manoff
Release Date: February 5, 2025
In this insightful episode of The Glossy Podcast, host Jill Manoff sits down with Ben Yahalom, the newly promoted CEO of True Classic, a prominent menswear brand that has achieved remarkable success in a short span. Ben delves into the company's journey from its inception to becoming a $500 million revenue powerhouse, emphasizing the crucial role of diversification in marketing strategies. The conversation explores True Classic's product innovation, marketing prowess, strategic expansions, and unwavering commitment to customer satisfaction.
1. Ben Yahalom’s Ascension to CEO
Timestamp: [02:41]
Ben Yahalom shares his transition from President to CEO of True Classic, highlighting the evolution of his role. He explains how his responsibilities have expanded to encompass broader strategic decisions and overseeing the company's global growth.
Quote:
"We started super narrow... expanding globally from being a US brand to a global brand in over 190 markets worldwide."
[02:54]
2. True Classic’s Product Philosophy
Timestamp: [04:23]
Ben discusses the foundational vision of True Classic: creating the best T-shirt in the world. The focus is on perfecting fit, fabric quality, and affordability to cater to a broad consumer base.
Key Points:
- Fit and Fabric: Development of a unique fit tailored for men, including larger sizes up to 3XL.
- Quality and Price: Custom fabric blends to ensure durability and softness without exorbitant pricing.
- Expansion Beyond T-Shirts: Introduction of activewear, jeans, chinos, jackets, and plans for women's apparel.
Quote:
"We wanted to provide a great quality shirt for a favorable price because the people who did try to create a premium T-shirt sold it for such crazy markups."
[05:00]
3. Marketing and Advertising Strategies
Timestamp: [06:22]
True Classic heavily invests in digital advertising across platforms like Facebook, Instagram, Google, and YouTube to convey their brand story and emotional benefits associated with their products.
Key Points:
- Emotional Connection: Advertising focuses on confidence and self-esteem rather than just the product.
- Performance Marketing: Initially centered on direct response but now integrating more brand-building efforts.
Quote:
"We are really big on digital advertising... we sell that good feeling, that sense of confidence."
[06:41]
4. Diversification Beyond Digital Marketing
Timestamp: [09:39]
Ben emphasizes the importance of diversifying marketing channels to counter diminishing returns from any single platform. This includes expanding into TV, podcasts, partnerships, and sports sponsorships with entities like the UFC and local sports teams.
Key Points:
- Channel Diversification: Moving beyond Meta and Google to explore new advertising avenues.
- Adaptive Budgeting: Allocating budgets based on channel performance and opportunities.
Quote:
"We try to maximize the opportunity on any given channel... whatever device somebody's preferred method is."
[10:38]
5. Retail Partnerships and Omnichannel Expansion
Timestamp: [11:42]
True Classic has successfully partnered with major retailers like Target and Kohl’s, complementing their primarily direct-to-consumer model with physical store presence.
Key Points:
- Omnichannel Approach: Balancing online sales with physical retail locations to enhance accessibility.
- Customer Convenience: Offering in-store purchases for immediate access and reducing wait times associated with online orders.
Quote:
"True Classic, as you mentioned, is just a great play for us because so many of our customers are loyal Target customers."
[11:42]
6. Community Engagement and Customer Loyalty
Timestamp: [27:59]
Ben highlights True Classic’s unique community-building efforts, including the Insiders Club and an active Facebook group where customers interact directly with the leadership team.
Key Points:
- Insiders Club: A membership program offering benefits like free shipping and cash back.
- Customer Interaction: Direct engagement through Facebook groups, where customers provide feedback and participate in company meetings.
Quote:
"We create this direct relationship between everybody who works at this company and the end consumer because we're here to serve them."
[32:14]
7. Challenges and Operational Strategies
Timestamp: [32:33]
Ben discusses the ongoing challenges of managing rapid growth and maintaining ambitious goals without compromising on product quality or customer satisfaction.
Key Points:
- Supply Chain Diversification: Mitigating risks associated with tariffs by manufacturing in multiple countries.
- Team Dynamics: Recruiting "business athletes" who thrive in a fast-paced, growth-oriented environment.
Quote:
"We manufacture in a lot of different countries... quality is number one for us."
[18:31]
8. Future Goals and Expansion Plans
Timestamp: [36:54]
Looking ahead, Ben outlines True Classic’s mission to serve over 100 million people worldwide. Plans include expanding product lines, enhancing physical retail presence, and potentially exploring IPO opportunities.
Key Points:
- Consumer-Centric Goals: Focused on expanding reach and enhancing customer experience.
- Scalability: Utilizing internal growth and strategic partnerships to scale without diluting brand values.
Quote:
"The 10-year target at True Classic is consumer-oriented and it is to serve over 100 million people worldwide."
[36:54]
9. Understanding the Male Consumer
Timestamp: [39:24]
Ben provides insights into male consumer behavior, emphasizing the desire for simplicity, reliability, and value in their apparel choices.
Key Points:
- Simplicity: Men prefer straightforward, high-quality basics without excessive options.
- Reliability: Seeking comfortable, well-fitting clothing that requires minimal decision-making.
Quote:
"Simplicity is just such an underrated concept... they just want to be taken care of so they can take care of other things."
[39:24]
10. Plans for Women's Apparel Line
Timestamp: [47:24]
Responding to consumer demand, True Classic is developing a women’s line, aiming to replicate the brand’s success in menswear by addressing specific needs and preferences.
Key Points:
- Research and Development: Extensive efforts to understand women's clothing requirements.
- Inclusive Design: Ensuring fit, style, and fabric meet diverse preferences without compromising simplicity.
Quote:
"We're trying to make sure that when we go out there with our women's line, we truly nail it by solving real problems."
[47:26]
11. Customer Service Excellence
Timestamp: [45:13]
True Classic prioritizes exceptional customer service, viewing it as a cornerstone of the brand rather than a cost center. This approach fosters deep customer loyalty and transforms customers into brand advocates.
Key Points:
- Proactive Service: Going beyond problem-solving to enhance customer well-being.
- Personal Touch: Agents engage with customers empathetically, addressing not just their needs but also contributing positively to their lives.
Quote:
"We believe in serving humans, making them look good, making them feel good."
[45:13]
12. Conclusion and Future Outlook
Timestamp: [50:28]
Ben wraps up by sharing exciting upcoming initiatives, including new product launches like the Pima shirt, further international expansion, and enhanced marketing strategies. He reiterates the company’s commitment to continuous improvement and customer satisfaction.
Key Points:
- Product Innovation: Launching new high-quality products to maintain market leadership.
- Global Expansion: Establishing local distribution centers to better serve international markets.
- Strategic Partnerships: Leveraging relationships with retailers like Target to accelerate growth.
Quote:
"2025 is going to be a great year for this company. It's still early days."
[50:28]
Notable Exclusions: The summary intentionally omits sections related to advertisements and sponsor messages, such as the promotional segments by Listrack and Christina Ko, to maintain focus on the core content of the interview.
Overall Insight: Ben Yahalom’s leadership at True Classic exemplifies how strategic diversification, unwavering commitment to product quality, and exceptional customer service can drive substantial growth in the competitive fashion industry. By balancing direct-to-consumer efforts with strategic retail partnerships and fostering a loyal community, True Classic is poised for continued success and expansion on a global scale.