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Masters of Scale

The beauty of emphasizing the obvious, w/Birchbox's Katia Beauchamp

Masters of Scale

WaitWhat

Startups, Business, Mindset, Management, Bob Safian, Entrepreneurship, Diversity & Inclusion, Reid Hoffman, Jeff Berman

4.64.4K Ratings

🗓️ 27 July 2021

⏱️ 37 minutes

🧾️ Download transcript

Summary

Unconventional ideas define entrepreneurship: They fuel dreams but also spur naysayers and obstacles. Katia Beauchamp, co-founder and CEO of Birchbox, has repeatedly found ways to recast the unconventional as something obvious, enabling ongoing growth through repeated challenges. When Katia and her co-founder introduced Birchbox, its novel business model went against many beauty-industry norms. Then, as it caught on, competitors from Amazon to Sephora took direct aim by copying Birchbox's approach – and crushing margins in the process. To navigate the ups and downs, wooing investors, suppliers, and customers, Katia discovered how describing an industry-flipping idea in conventional terms could both accelerate and extend Birchbox's appeal. The road to differentiating the brand, it turned out, required emphasizing the obvious.

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Transcript

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0:00.0

Hi, it's Bob Safian. You've been hearing me as the host of rapid response in this feed for a few years now,

0:07.8

with short newsy interviews alongside the deeper dives of Masters of Scale. Well, I'm excited to share that rapid response is expanding into its own feed.

0:17.0

We'll be putting out shows twice a week, focusing on the urgent issues that business leaders are dealing with in real time.

0:24.7

So search for rapid response in your podcast player

0:28.0

and subscribe to make sure you get all our episodes.

0:31.2

I'll see you on the other side.

0:34.0

We always kid that Mr. Hershey in

0:48.0

in 1905 creates a town with streets are

0:55.0

named for chocolate-making regions and cities of the world.

0:57.0

So, his crossroads in this town are chocolate and cocoa,

1:01.0

his streets are Trinidad, Bahia, Granada, and so on and so forth.

1:11.0

And so, Mr. Hershey creates a town based upon a vision that he has that he wants to

1:15.8

immerse people into chocolate.

1:20.1

That's Don Papson, president of the MS Hershey Foundation, and he's helping us

1:27.0

picture the town of Hershey, Pennsylvania. It was founded by the famous

1:31.1

chocolate maker as a place for his employees to work, rest, and play. It was nothing but

1:35.0

nothing but farmland, which is exactly what Hershey wanted.

1:42.0

He decides that because milk is a key ingredient to milk chocolate,

1:50.0

he's going to basically place his factory here, so he's closer to fluid milk.

1:58.0

And he's creating an advantageous situation for the farmer and for himself.

2:05.0

But what about the workers that Hershey needed to turn that milk and cocoa into bars, kisses, and cups. Well for them, the draw included

2:16.2

modern homes with electricity, heating, a transit system, and great schools for their kids.

...

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