Sisterly Tribe founder Kristin Hars on building a yoga lifestyle brand based in Europe

0:02Hello, everyone, and welcome to the Modern Retail Podcast.

0:30Because I know that Cicely Tribe is new, figuring out its sales channels, it has a DTC channel. I want to talk about how that all works, especially in Europe, because we talk so often about what it means to be direct consumer in the United States. And so I want to sort of expand that outward. But I also just want to know what it's like growing a brand nowadays, because it's only a few years old. They recently raised a round of funding. They're clearly in growth and expansion mode. But Kristen, how are you doing? Thanks for joining. Thank you for having me. I'm really good. Thank you. Excited to be here.

0:58So first, can you just tell a little bit about your background? I was doing a little bit of research and you've worked at some pretty well-known brands in the past, right? Yeah, that's right. I mean, I was born and raised in Sweden. But when I finished studies, I moved straight over to the UK. I've always been very passionate about fashion and retail. So, you know, I wanted to go over there and start working with that field. There's so many more opportunities and exciting brands over there. So I moved over there. I worked in London for about 12 years for some very exciting, fast-growing brands and learned so much by doing that.

1:39And then, yeah, I moved back to Sweden because of love, basically. So I moved back home. So, and then, yeah, then I also worked back in Sweden. I was working for a pure e-commerce player because in the UK, I worked for a lot of global brands where retail was a big part of it and global expansion. I was doing a lot of also international work when I was there. So it was very exciting to learn more about the e-commerce space, but I've always had a very much passion about creating a brand that I truly believe in that has values that I share. and I always be very passionate about like yoga, well-being, sisterhood, and also about how can we make the industry more sustainable.

2:19So I wanted to bring all of those values and create a brand that I really believed in and build it in a way that I thought was authentic and also, yeah, in a good way, basically. So when did the idea first start? And because Sisterly Tribe is focused specifically on yoga apparel right now, correct? Yeah, that's right. And so how, like, was it just that you yourself are an avid follower of yoga or was did you find there was a white space in you know the Swedish market what made you decide to go down that route yeah I mean a couple of things a you know I am very I love yoga I love well-being I found yoga 15 years ago and I think it's a great way of like both mentally and physically you know exercise but I also found moving back to Sweden that I was missing this kind of brand that was very Scandinavian, minimalistic, sophisticated, like premium brand.

3:12But it was also very much about being sustainable and ethical and having all these values around it. So I kind of found a white space around that kind of brand carrying those values and also that aesthetic. And I also saw that there was a global opportunity for that kind of brand, because obviously Sweden is a quite small market at the end of the day, and I want to build a global brand. And I thought that this is kind of missing in that space, having that kind of the aesthetic, have the values and also the sustainability and ethical side of it. So yeah, so I kind of write space there. And I thought this is something that I really want to go for.

3:49And I believe in. Walk me through just the initial steps of when, like, what year was it when the idea first happened? How did what was the launch plan? Like, how did you devise the entire business plan? Of course. Well, so I've actually had the concept for quite a few years growing inside me. But I was also very happy at my previous role. I was learning a lot, growing a lot within the role. And then COVID came. And basically, you know, I'm sure everyone had this kind of experience, you know, during COVID. It was different for everyone. But for me, it was very much also in the beginning, a reminder that, you know, you never, it's so easy to take things for granted.

4:27And it's easy to, you know, take life for granted. And it was a reminder that you'd never know what waits around the corner, like anything can actually happen. And, you know, what's important for me, you know, it's my health, it's my family, it's my well-being. But for me, it's also important to kind of, you know, follow my passion and follow, you know, my dreams. So, and I've had this dream for so many years. So I was like, okay, well, why should I not go for this? Because I don't want to live 20 years and have this idea in my head and think, you know, what if, what if I've done this? So it was just kind of a trigger.

5:01The COVID situation was a trigger for me to just remind me of like, I really, I believe in this. I want to go for this. So basically, yes. So initially, obviously I was kind of more thinking about what the concept, what should it look like, really clarifying for myself, like, what is Cicely Tribe? You know, what does it mean? How should it feel like, How should I position the brand? And then also find a supplier that could work with smaller minimums because initially I founded this myself. So it was my own money, so I had to find a supplier that I could work with. I also did it alongside my role, and I was a CCO for a company.

5:39So I had to obviously get the agreement for my boss that it was okay for me to kind of start it as a passion project. So I got the okay to do that. And that was also very good for me to be able to kind of do this on the side rather than just, you know, throwing myself into it. But yeah, and then obviously I started like an Instagram channel really early, like maybe six months before I even launched anything to kind of build a community and talk about our values and just kind of get them to come along on the journey. And then the plan was to kind of, you know, I launched, you know, through my own website, but I was also looking to find authentic collaborations with other people within the, you know, community, like yoga and wellness space.

6:24So we've been doing, you know, a launcher collection, but I also had collaborations with other yoga studios or yoga teachers. We've been having several events to kind of meet in, even though it was COVID, we were able to have like small, at some points we were able to have like small, like intimate events. And we We were also doing some, you know, digital like yoga classes and events and things like that. So it was very much initially to kind of get the brand out there, launch it, get the reaction and had a really positive reaction, you know, from the community and people buying the products and, you know, it was selling out.

6:59So I then had to, you know, obviously invest more into inventory and just kind of grow it from there. so that was kind of the plan to build you know more of a community driven brand and you know collaborate together with other people in the industry and also to lift them up you know we have things called like sisterly stories and ambassadors so the thought was very much like how can we collaborate because we share similar values and similar wishes and how can we collaborate together to share message about you know female empowerment and sisterhood and supporting each other to live a sustainable life.

7:36So yeah, so basically, initially, I did that alongside my job, which was also was very nice to be able to do that, because I think it's important also not to stress something and build something takes time. And I was doing it on my own. So I wanted to build it authentic and not being stressed about, you know, getting sales or rushing things, but for it to be authentic and build things slowly, but in a good way. And then after a few months, you know, things started to take off. And so I made a decision to leave my role to fully focus on building Sicily Tribe and start doing it full time. So that was December 21 that I left my other role to be start full time working on Sicily Tribe.

8:18Wow. And so a couple of questions I want to ask. First, was it like, how did you go about talking with your company about doing a side project, a passion project? Was that a difficult conversation to have? Were they completely understanding? What was that like? I mean, it was difficult, but I needed to do it because I know I can't start this thing without having the okay from them because, you know, that was also in fashion retail, e-commerce brand. And even though they were not doing yoga where specifically, you know, it could still have been seen as some kind of competition. But obviously, you know, went to spoke to my boss and said, you know, you know, this is my passion.

8:58I'm very passionate about creating this brand, but I would also frame it as a way of like learning because I was a CCO, but my background was very much also in kind of product like merchandising and sales. So I'd never kind of gone the whole route of like, you know, low entry level roles within marketing. So I would also say to him that it would be a great opportunity for me to learn really hands on, you know, what's it like to grow a brand what's it like to you know create email and flows and talk you know yeah working on kind of those skills and get hands-on experience to for me to be even better at my role at at my company and obviously I mean yeah I was it he it was before the summer of of 2020 and then he was like okay let me think about it during the summer and let I'll get back you after the summer.

9:53So and then basically, I kind of already planned because I really wanted to do this. So I got everything in row and I kind of like pulled into register the company and everything. And then after the summer, we had a dialogue and he said, well, it's okay for you to to start doing this. And but if it starts taking off, let's you can maybe work part time. So I did go down to 80 % once it starts to take off. But I think for them, it was also an opportunity to have me for longer. Because at that time, you know, we were planning to do an IPO. So, and I was actually part of the IPO and then I did the exit.

10:28So, you know, it was an opportunity for them to also be able to have me there for longer. I've been there already for five years. So it was an opportunity for them to get a little bit more of me and then to do a good plan of like how, you know, my exit and who would come. Because otherwise they would also have lost me and they didn't want that. So it was a two-way dialogue. I wanted to ask, because sustainability is a major facet of the brand. You talk about it on your website. You mentioned it, especially in the early days when you were trying to find a supplier who would be able to make your first line of clothing.

11:02How did you go about making sure that that still fit with the whole sustainability mission? And how does the manufacturing overall, how do you ensure that that follows the ethos that you talk about in your branding, in your marketing, etc.? Yeah, of course. Well, I mean, first of all, like a main bolt is for us is also very much about like slow and mindful design to create products that are premium quality, that has a design that lasts for many, many years because the most sustainable garment is obviously something that is loved and worn for a long period of time. But secondly, I was doing a lot of research and, you know, finding a good like supplier or manufacturer that shared similar values than me.

11:42so I was doing research looking at like what are other brands who are they working with and then I found a really good supplier in Bali actually that works with a lot of like sustainable and ethical brand and that is kind of like their niche and they work with a lot of startup brands so yeah so I basically started working with them and I also have like a code of conduct that I would share with them so that we kind of also outlining all the parts of it but But then it's also, yeah. So I found a supplier that only work with more recycled materials, but they also work a lot with charities, supporting women and children in Bali, because obviously also during COVID it was very challenging for them.

12:28So they would donate money and also leftover fabrics so they can create new things, et cetera. Did you think about growth in terms of your first supplier? Like, you know, if you need to suddenly, you know, triple your PO size, will your supplier be able to handle this? Or how are you thinking about that in terms of going from startup to something potentially bigger? Yeah, no, so I think that is kind of the challenging part. And I found that because obviously in the beginning, because the MOQs were very low. But then when I started increasing my MOQs, the lead times were getting longer and it was more challenging for them to kind of work with that.

13:03So I did also a lot of work. So from the spring, I'm producing in Portugal. So I moved my production. So that was also very challenging to find, obviously, because it was last August, a year ago, I went to visit a new supplier in Portugal. And obviously, that takes a lot of time and energy. But from the spring, I moved the production to Portugal, which is also closer. So it's in Europe, it's closer to home. And I'm able to visit them more frequently. But that was one of the reasons to move, to be able to scale up the production. Because now I'm with a partner that has more capacity to scale up and they work with bigger brands.

13:44But I wouldn't have been able to do that initially because my new partner obviously has higher MOQs. And in the beginning, I didn't want to tie up too much stock, too much inventory, because I wanted to test the concept. So for me, it was better to have, like being able to have like smaller quantities so that I can test and see what, you know, what customers would want and what works and what is Sysley Tribe and what is the design rather than having loads of inventory that then isn't shifting. Now that you've moved to this other supplier that can do things more at scale, just walk me through how the business has grown specifically in the last year and a half since you went into it full time.

14:23So what have you focused on in terms of channel expansion and how has the demand grown Were you seeing demand? All of that stuff. Yeah, no, I mean, so we're growing a lot since we moved and since it's such a difference to being able to do it full time. And now I also have one employee. But we've been very much focusing about, I mean, Instagram has been a really important channel for us, growing our following, growing our community on Instagram. We're spending a lot of time there connecting with our community and also other people within the space. We've also been doing product development, improving the product, figuring out what designs are working, what is Sistely Tribe, and how can we develop the product.

15:05But also we've expanded the category. So initially we would just do matching sets, and now we've expanded into sweatshirts, we'd have a sit-through jacket, we have candles. So we're kind of expanding the category as well within the assortment. and yeah we've been you know also email is also a very important channel for us growing you know our email subscribers but we'll also be doing different pop-ups and different events just to you know connect with the community and get the feedback from the customers and learning also you know having conversations about the brand and the products and what they like and what they're missing so we're very much focusing on that we've also been growing not just in Sweden So we actually shipped to over 35 countries since we launched, mainly obviously in Europe.

15:55But it's very exciting to build more of a global presence. And the first focus is obviously Europe. Can you actually talk about the community building aspect? So correct me if I'm wrong, but sort of like, especially for a brand that's focused on yoga, I imagine the way you grow a brand is you go to your local yoga studios and you sort of form people there. but you're trying to do something a little bit bigger, a little bit more international. And, you know, you're connecting with people on Instagram or others. So like, how have, you know, A, where is your community? Like predominantly, is it mostly in Sweden?

16:31Or is it around the world? And how are you expanding it from there? I mean, I would say the biggest part is in Sweden, because most of our events and most of our events has been in Sweden and Stockholm. but we also have you know a large following in Europe and we've had an event in in Germany and we're kind of thinking how can because how can we do things local but also global so obviously Instagram is important we know we have more but then it's also more of a two-way dialogue between us and the person unless we also you know share things on our stories and our reels but otherwise it's very much of a dialogue between you know on DMs so we're thinking how can we do that more global but very much it has been you know having events in stockholm having events in in gathenburg having pop-ups um and then we've been also doing some yoga like bigger yoga events that other people arrange we will be part of that to kind of like because there's also the yoga community coming there um but yeah it's there but then i think also within yoga and wellness is it is quite open and it's quite a community around those values and sharing those values.

17:46But I think I would say Instagram is probably in the most important channel to reach out as well. Are most of your sales on your website? Because I know you've had these pop-up events, but also, correct me if I'm wrong, but I think I read that you're also in a few retail stores, I think in Sweden, right? And at different yoga studios. So where is DTC the biggest majority of your sales right now? Yeah, so now the majority is through our e-commerce space. I mean, the first year actually was 50-50. We were really small then, but we were 50-50 like yoga studios and e-commerce. And then obviously as I've been spending more time growing, like, you know, doing better on the e-commerce site and also building a stronger following.

18:30And now the majority is on our website, but we also are in some retail spaces and mainly yoga studios, both in Sweden, but actually also in Europe. And we had some artists from the US as well. Oh, really? That's awesome. I wanted to ask, given that you're a Swedish company, Sweden uses the Krona currency. And I know that, correct me if I'm wrong, but I think with Shopify, it can get kind of annoying when you're dealing with a lot of different currencies and you're dealing with a lot of different countries. How are you approaching just the nuts and bolts, really boring e-commerce aspects, given that you're focused on global expansion and selling to all these different countries?

19:07and a lot of them use the euro, but Sweden doesn't, and the US uses the dollar. So has that been a difficult nut to crack, or have you used the right plugins that have made it more simple? How are you approaching that? I mean, I think basically what we're doing, because we are a Swedish company, we have SIEC, and we've actually had that as our main currency in Shopify, which I'm considering changing. But Shopify also has Shopify Markets, because they have Shopify Markets. So in Shopify markets, you can set, rather than Shopify just converting prices randomly, you can actually set the price points.

19:46So we've selected a few of our, like, the most important regions, which is mainly Europe. So we've set them as having specific euro prices. So at least for the customers when they come in, like, it's clean euro prices that we've kind of set to where we think they should be. And then we have free shipping, which is in Europe as well. But it is more, for example, for the US, like the conversion would just be like a bit random. So we are looking, obviously, but we're a small team. So now it's like, okay, we're focusing on Europe. We can do that. And then if we're happy for getting orders from, you know, outside of Europe, basically.

20:23Would you ever consider, because this is something that I've talked with other founders about, where, you know, Shopify is good with creating a good website, but it's not good with the backend stuff often. Would you ever think about getting off of Shopify or is it just because it's where everyone is and it's so easy? How are you approaching what kind of e-commerce platform you use? I mean, I work with other platforms. And what I love with Shopify is that it's just so easy and it's easy to get started. We're a very small team. I don't want to – I mean, it costs a lot of money to like a lot of time often to like A, create a new website, go somewhere else.

20:58It's also a lot more issues. You might need like a CTO or someone who is very much focused on that side and all the integrations. And with Shopify, you have it's very easy integration. It's just very easy to start. We can focus more on building the brand, building, you know, developing the product, building a community. And then the backends. Yeah, I mean, probably the pricing, they charge you a little bit more like it. But I think for now and for a while, I think Shopify is a good platform to be on. so we can focus on the right things. Yeah, exactly. That's what people generally say. And that's, you know, I'm just always interested to hear how it works in other geographies.

21:38Like how, as you're growing, as you add more people to your team, are you thinking of any new marketing strategies? You've talked a lot about pop-ups, you know, throughout Europe. You know, you mentioned how Instagram's an important one. Are there any other places that you're expanding into or testing out? Yeah, anything along those lines? Yeah, I mean, obviously, I think TikTok is super exciting. And I think that is a platform that we're testing and trying. Like, how can we work with that? Because obviously there is a platform where you can get a lot of organic reach still, like how Instagram used to be back in the days.

22:13And then we're also, I mean, considering more about how we can increase our awareness mainly outside of Sweden now. So it's kind of like, how can we build even stronger relationships outside of Sweden and maybe with different kind of collaborations or partnerships and who would the right partner be? Because we still wanted to feel authentic. And obviously, I think retail or like wholesale is an interesting aspect. But then for us, it would also be then to be in the right spaces, because I think it's important to be, yeah, it should be feel authentic and be correct alignment with the brand. And then we're also considering, I mean, we're going to have a pop-up now in Gothenburg coming up for two weeks.

22:56So that would be exciting to have our own pop-up for like two weeks. And we're also considering finding like a space here in Gothenburg where we can have a combined office and showroom to kind of also create, build more in the community here and have like a showroom and yoga events and a space for collaborations. As you continue, like, thinking about wholesale, that kind of thing, who would be, like, the ideal retail partner to work with, at least in Europe? Like, is there one store that you think would be completely aligned with Sisterly Tribe? Or what are you thinking about in terms of as you try to form these partnerships?

23:30Well, I mean, I would love to be obviously in spaces like, you know, Net-A-Porter or Matches or in the big kind of, say, like Harvey Nicks or Selfridges or like those kind of big department stores within more like premium brands, either if it's digital or in a physical space. But also, yeah, so I think those would be dream. But it would also be nice to be in more niche kind of yoga studios wellness spaces. Because even though maybe the revenue wouldn't be very big, it would be a great partnership to have and to also be able to create different types of events together and, you know, promote well-being and sustainable lifestyles, basically.

24:13Absolutely. You mentioned a little bit about product expansion that you've expanded into different collections and sweatshirts. Do you have any other expansion in mind? How are you thinking? What does that look like? What are new products might we see on the horizon in the next few months to a year? Yeah, I mean, we have loads of ideas of what to bring. It could even be digital experiences. It doesn't all need to be a physical product. But no, so now it's more kind of also building the range, introducing some new fabrics, and also expanding on the kind of like soft essentials side to it. And that could be more sweats or hoodies or T-shirts or loungewear because we're also building kind of more of a studio to street.

25:02So it's not just about the yoga wear, but it's kind of like more of a lifestyle. Well, we're just about running out of time, but I wanted to ask a few more questions. One is what are your major goals for the rest of the year? and then even going into next year, like as you're growing and expanding, what are the things that you're hoping to accomplish in the medium to short term? So, I mean, for us, it's mainly to continue to deliver strong top-line growth, to build the brand, but it's also about moving into profitability. Because obviously, you know, at the moment, we're a small startup, we're not yet profitable, but we have a really big goal of like going to profitability, you know, as soon as possible, basically.

25:43So to deliver growth, but also to do it in a profitable way is the goal. Actually, I want to dive into that because that's something I'm talking with a lot of people about, specifically given the economy, etc. Like we go all into that. But like, has your business model changed in the last two years that now you're taking more into account profitability? Like what have you changed in terms of your margin structure and your entire business model now that maybe was different than what you were planning in 2022? I would say the overall goal hasn't changed. But I think obviously now with raising funds has become much more challenging.

26:22I think it's even more important that the money that you have is invested even smarter. And it's more important to be profitable than it was maybe for two, three years ago. So I've always wanted to build a profitable company, but it's got even more important to be there. And I also think it's important because when you have a profitable company, you can decide the destiny of where the company is going. You don't have to constantly be out raising funds. And you can focus on actually building the brand, building the community and doing what actually I'm excited about. rather than just, okay, next year we're running out of money.