Jacob Faull: Nature Baby co-founder on the company's planned expansion into the US

Kiwi start-up Nature Baby is looking to expand into the US market again.

What started as a small business operating out of an Auckland flat has grown into a multi-million dollar business - and co-owners Jacob and Georgia Faull are looking to re-launch the brand overseas.

Jacob says the brand's not immune to the effects of the current economic downturn - but the 'green shoots' in the economy are giving them hope.

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Episode Transcript

Speaker 1 (00:00):
Ever do for see how now nature Baby is going
to have another crack at the US market. If you've
had a baby in you know, the last couple of decades,
you'll know these guys really lovely, organic, fancy expensive baby.
We're founded in an Auckland Flatten nineteen ninety nine, are
now worth millions of dollars. They did actually have a
full range the US market. They had an online retailer
that took them in about a decade ago, but then

(00:21):
that retailer ran into trouble and so the thing ended.
Jacob Fall is the co founder of nature Baby with
his wife Gil Journey's with me.

Speaker 2 (00:28):
Now, hey, Jacob, hey, they thanks for having those shows.

Speaker 1 (00:31):
I think thanks for joining us. How's business going, by
the way, Because it's a tough time out there, and
I imagine that people when they trimly spending their trimly
spending on nice stuff like yours.

Speaker 2 (00:41):
Yeah, it's tough. Nature Baby is not immune from the
financial challenges that we've seen lights through the market, but
we are seeing lots of green shoots. So I think
nature Baby is a market suffers. I think when interest
rates go up, so the household spending comes down. But
I think we're nate. Maybe people are buying into that
fact that, you know, maybe it lats a bit longer,

(01:03):
or maybe they can pass it down or there's a
bit more value there. So we're still seeing strong sales
and we're up on last year. So it's good.

Speaker 1 (01:10):
Oh that's brilliant. So you're going to go into the
US with this company many moons? Who are these guys?

Speaker 2 (01:16):
These are a really interesting company. They approach us about
four years ago, straight out of Columbia Business School, and
they were mature students that were involved in other industries
and they had this idea to set up at first
higher business. So they would buy organic and natural baby
products and they would hire it out, and then quite

(01:36):
quickly they pivot to pivoted to reselling, and now they've
set up a hub and they take baby products back
and distribute them across the US.

Speaker 1 (01:48):
Yeah, so is this what you're talking about? Is they're
like recycling of clothing where they'll sell the product first
of all in an affluent suburb, and then when the
family's finished having the babies, they bring it back. These
guys will restore them product and then they will rent
it out or salad at maybe a less affluent suburb.

Speaker 2 (02:04):
Exactly exactly, So I think you hit the nail on
the head. In terms of organic it's often seen as luxury.
By they're turning that around and seeing it it's quality
and that it can last up to eight times. And
they tested other labels, so other labels were lasting about
two weirs before they had to recycle them, whereas nature

(02:24):
Baby was lasting up to about eight babies. So if
you took a garment that costs, say ten dollars, and
you could wear it once or twice, that's five dollars
per use. Whereas you take nature Baby, which is a
lot higher, let's say thirty five dollars, but you can
wear it eight times, so per use that was only
four dollars. So it's long long term, it's actually cheaper.

Speaker 1 (02:45):
Yeah, thank you. And are you doing a similar thing
in New Zealand? Now? Did I read that you're also
going to sort of like recycle clothing.

Speaker 2 (02:52):
Yes, So we were just about to launch it on
Thursday this week where we're running a take back scheme
where we will take pre love thing Baby product back
and then we'll give the customer recruitit to spend on
you and then we'll take that product and put it
into a resale market.

Speaker 1 (03:09):
How much are you going to give me for my
old products, Jacob A lot.

Speaker 2 (03:14):
I've heard how much you've got here that so we're
trying to we're running it as a business model, so
we're giving it's twenty percent. So we researched it. We
looked at Noody Jeans, and we looked at Patagonia, and
so we're going to give twenty percent back that you
can use on you and then we're looking at then
reselling that product. And so I think at the end

(03:34):
we net out because the cost of running a pre
love recycled program actually has quite a high cost to it.
But we're determined to look at how we can make
that work so the customers are getting that just can't upfront,
and then we're able to then take that into a
resale market and make a business of that as well.

Speaker 1 (03:52):
So I should have a lot you mean a lot
of money when I'm finished selling all my stuff back
to you.

Speaker 2 (03:58):
A lot of a lot of product. Ye to get
it back.

Speaker 1 (04:00):
I'll tell you what you made my month. The other day,
I was walking down the down on the waterfront and
I came across the nature Baby Saale Like I hadn't
seen the adverts or anything like that, mate, I just honestly,
I am still on the dope of meine high from
all the stuff I got for ten dollars from you guys.

Speaker 2 (04:15):
A fantastic Yeah, we love it. You love what we
love those those events where we can we're getting in
front of customers, and I mean to be honest, it
is a higher price, and we're trying to look at
programs like that, which is essentially outlet stock, so that's
over stocks for whatever reason and pre loved and so

(04:37):
we can access give access to all customers. So rather
than just having this organic as luxury, it's organicas quality
that we can sell all the way through. Yeah.

Speaker 1 (04:50):
Good stuff, man, Best of luck with us, the FORERANGEO
the US market. I really hope it goes well for you.
Jacob Jacob for Nature Baby, co founder. For more from
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