What are you working on? Can you give us a brief overview of your company?
BAOBAB is the maker of Performance Luxury Essentials for go-getters, strivers, thrivers, and business professionals. Our flagship product is the BAOBAB Polo shirt; a polo shirt made from premium materials and solves the many challenges that people have with the polo style shirt: Using sustainably grown organic Pima cotton, our shirts are resistant to fading, shrinking, blocks liquid stains, neutralizes odors, and are made with our Stay-Flat No-curl Curl™
What about you? Tell us a little bit about yourself and what inspired you to start this journey :)
We started BAOBAB and created the BAOBAB Polo Shirt to solve a real-life issue we were having specifically with the polo shirts and our desire to have clothes perform for us so we could focus on achieving our goals as busy professionals working and living in New York City. We needed efficiency, style, function, and durability. And we grew quickly frustrated when expensive clothes would fail after a few wears and washes. So, we set out on a mission to create premium, great looking, and functional essentials starting with the perfect polo. To get our marching orders, we surveyed and interviewed 500 would be customers to better understand their relationship with the polo shirt. We used those findings as our marching orders t to design our first product.
What's your background? What is the unfair advantage that will make you succeed in this industry?
My Background is in Product Management and Product Marketing. Specially developing and executing go to marketing strategies and acquiring new customers through digital channels. We leverage our technology product develop approach to design and production. First gathering our requirements through market research, and focus on both Form and Function as differentiator. In our first product you will see this in unique innovations like our stay flat no curl collar and the hidden microfiber cloth used to wipe lens, camera phones, other surfaces. We call our approach "Undeniably Better". Asking ourselves how we can make our products undeniably better than similar products on the market as it pertains to superior quality, function, design and value.
Secondly, we are developing a relationship with our manufacture that will give us preferred vendor status; positively affecting speed to market, and favorable payment terms.
The Business Model
What is your business model, and who are your customers?
We are a DTC company, therefore we make our products and sell them on our website. 2021 we are evolving our sales strategy to an omni channel approach. This will increase distribution, grow our customer base.
Did you already find a product-market fit? How do you acquire and retain your customers?
Yes, we have 5200 customers to date. And 1/3 of our monthly revenue come from repeat customer purchases. We acquire customers, organically (PR), paid social, search, and customer referrals. We appeared on ABC Shark Tank in October 2019 which gave us global exposure of 4 million people and continuous airing of our segment for years to come.
How big is your operating market? Could you provide some independent research/insights?
The polo shirt market is valued at approximately $5.71 billion by 2024 (up from $5.06 billion in 2019). - And the over menswear market in which we are selling is $33 Billion USD. (report).
What's your competitive advantage, and how are you going to build a sustainable economic moat?
1) Our approach to product development has proven to create loyalty among our customers. 2) Q4 we are launching a subscription program for our t-shirt. This will help us with predictive revenue. Having preferred vendor status with our production facility. 3) Our customer centric approach to introducing and making new products limits production waste and ensures greater success. 4) Finally our BAOBAB family this is our community of customers love and share the BAOBAB with others.
Who is on your team? Is there a fun story behind it? If so, We'd love to hear more!
The founding team of BAOAB is Brandon Davenport and Marcellus Alexander, III. We have been best friends for over 15 years. BAOBAB is the second company that we've founded together. Our first company, Vesta Mobile, a SaaS SMS marketing platform was sold to Aegis Mobile in 2010. We decided to start BAOBAB to solve real problems that we have with clothing. And we want to make magic happen again as entrepreneurs.
Where do you see you 5-10 years from now? What's your exit strategy?
We are considering SPAC IPO, in which we would purchase fashion technologies. Or acquisition by a conglomerate, like PVH
What do you believe is the biggest risk for the company?
The covid-19 pandemic and the velocity of our growth. We saw a change in human behavior and overall spending on apparel was down. While there are no eminent threats, geo-political conflicts could have an effect on global supply chain or production.
Did I Invest In BAOBAB?
I’m still in the process of writing a full deal report and decide whether or not I will invest in BAOBAB. I send my investment reports every week to subscribers of the Angel Notes newsletter (you can join through the form below). See you soon!