How a Pet Supplement Brand Is Taking Over TikTok Shop — Transcript
Full transcript
- 0:00I'm sure you guys are seeing it in the
- 0:01US side. I stopped being treated like
- 0:03babies over here.
- 0:04>> What was your big big breakthrough
- 0:05moment? Like what was that one moment
- 0:06where you're like, okay, like we're
- 0:07really onto something here?
- 0:08>> We realized that the cat treats are
- 0:10huge. And this format hasn't changed
- 0:12much over last, I think, 20 years. And
- 0:14there's a lot of additives. I'm like,
- 0:15maybe we can elevate this.
- 0:17>> With Groomes, you know, a year and a
- 0:19half in business and then sold for it
- 0:20was like 1.2 billion dollars.
- 0:22>> We I traveled the world to find our
- 0:23manufacturer. I went to New Zealand,
- 0:25Vermont, South Korea, Thailand. For
- 0:28every win you get, there's probably like
- 0:30100 setbacks. And everyone around you is
- 0:32like, you're you're a bit crazy. But
- 0:34it's just it's going [music] to take it
- 0:35takes time and a lot of patience.
- 0:38>> Just you know, go go go big, go all in.
- 0:43And back here with episode 7 of the Join
- 0:46Brands podcast. And we are joined today
- 0:48by Brian Tsang from Holy Cap. Brian,
- 0:51really appreciate you hopping on here.
- 0:52How are you doing?
- 0:53>> Good. Good. Thank you. Thanks for having
- 0:55me.
- 0:55>> Yeah, I know it's been some time. So I
- 0:56know we met at a at Expo West. It was
- 0:58you know, walking through the the
- 1:00endless aisles there and stopped by your
- 1:01guys' booth. Anything that's pet
- 1:02related, I'm automatically attracted to.
- 1:04I've got a I've got a dog and a cat here
- 1:06at home. So anything pet related, I'll
- 1:08always worth a visit. And you know, that
- 1:10conversation turned into a one much
- 1:12longer than I was originally
- 1:13anticipating. You know, had a great
- 1:14conversation with you and your team. Got
- 1:16a couple samples that I gave to my dog
- 1:17and they absolutely loved it. And yeah,
- 1:19I know you guys have your have your
- 1:20first Join Brands campaign that's up and
- 1:22running right now. But would love to
- 1:23talk to you about about your brand. So I
- 1:24know you guys are are a bit of a newer
- 1:26brand. So just kind of talk to me and
- 1:28you know, tell the audience about about
- 1:30Holy Cap. What was the inspiration
- 1:31behind that brand? You know, why the pet
- 1:33space? You know, what was the what was
- 1:34the motivation behind this?
- 1:35>> It's been a long long journey so far,
- 1:38but I'll take you back to the beginning
- 1:40and see just to let you know where we
- 1:41came from. So actually, we came from a
- 1:43branding agency. Um me and my partner,
- 1:46we ran a branding agency in Hong Kong
- 1:47for the past 10 years. We worked with
- 1:49everything from startups to heritage
- 1:51companies looking for a rebrand to
- 1:53bigger brands like Lululemon and Porter
- 1:55looking for like seasonal campaigns. And
- 1:57then at the same time our pets were
- 1:59getting older and we were transitioning
- 2:01them from feeding a very high commercial
- 2:03based diet recommend by all vets, you
- 2:05know, feed the kibble, feed the meds.
- 2:08So then we were transitioning them to
- 2:10see what we else we can feed them. So
- 2:11like we wanted to raw, we wanted to
- 2:13fresh. And then the more we looked into
- 2:15it, we're like, you know, there's
- 2:16seriously a lack of good pet food
- 2:19options and especially in our part of
- 2:20the world because it's there's a huge
- 2:22lack of pet food regulations that that
- 2:24kind of regulate what goes on the shelf.
- 2:26So we spent a lot of time just looking
- 2:27at the labels and like what's in this
- 2:29what's in this bag of food. Determined
- 2:31that like our pets deserve better and
- 2:32there should be a brand that actually,
- 2:34you know, has ingredients and
- 2:35formulations that benefit our dogs and
- 2:37cats. And at the same time we're like,
- 2:39you know, we're seeing that our dogs are
- 2:41getting older, you know, our pets are
- 2:42also living very long now compared to
- 2:44before, but there's not a lot of
- 2:46commercial food that support longevity
- 2:48or preventative health. I'm not sure I'm
- 2:50I'm sure you guys are seeing it and pets
- 2:52are being treated like babies over here.
- 2:53Dog prams everywhere. And more and more
- 2:55so. So like this whole pet humanization
- 2:58trend is is definitely a huge thing. And
- 3:00what what's interesting from that is
- 3:01that a lot of people that are feeding
- 3:03themselves better like I'm I want
- 3:05mushroom supplements or I want superfood
- 3:07supplements. Connecting the dots and
- 3:08doing the same for their pets. So I'm
- 3:10like, you know, that's that's an
- 3:11interesting angle for us. Another side
- 3:13is like the whole we're seeing a huge
- 3:15growth in the cat cat ownership in Asia
- 3:18cuz they're like more and more people
- 3:19are having cats over dogs. And there's
- 3:21not as many brands or products out there
- 3:23that cater to them the cat category. All
- 3:25that combined and from a branding
- 3:27perspective we saw that there was like a
- 3:28huge hole that there's like a space for
- 3:31a brand that could be loud and fun but
- 3:33also have clean labels and like
- 3:34transparent sourcing. So we're like,
- 3:36okay, maybe maybe let's bite the bullet
- 3:38and give it a try. So in 2021 we
- 3:41actually started Holy Cap. We came
- 3:43across after researching a lot of
- 3:45different ingredients we came across
- 3:46functional mushrooms. And this is a
- 3:48ingredient that we use in a lot of uh
- 3:50Chinese medicine and in our part of the
- 3:52world. So we're you know, it could be
- 3:53easy for us to source and give it a try.
- 3:55Yeah, so we worked with a holistic vet
- 3:57and we created our first product line,
- 3:59which is a small tub. This is like a
- 4:01functional extract powder, superfood
- 4:03powder, and green-lipped mussel. And we
- 4:05created our first product line as a
- 4:06powdered supplement and you can top it
- 4:08onto whatever you're eating, just, you
- 4:10know, enhance their food that way. The
- 4:11whole angle for what we were trying to
- 4:14do is how do we integrate healthier
- 4:16ingredients into our pets? So, adding
- 4:18functional mushrooms, superfoods, and
- 4:20clean protein. The main thing is to not
- 4:22have pet owners change their feeding
- 4:24habits, change the way that their their
- 4:26lifestyle is. And that was like it
- 4:28doesn't that was pretty much the big
- 4:29hole that we're trying to to bridge.
- 4:31There's a huge gap between commercial
- 4:34pet and very high barrier, high entry
- 4:37points for like holistic food, like raw
- 4:40raw food, cooked food, fresh food. What
- 4:41what do you feed your your dogs and
- 4:43cats?
- 4:43>> Yeah, so right now my dog is on he's on
- 4:46a I just give him a Purina Pro Plan.
- 4:48He's been Thankfully, I got got lucky.
- 4:50He's like the least picky eater in the
- 4:52world, so he's been eating that, you
- 4:54know, three times a day for the last,
- 4:55you know, four and a half He's on He's
- 4:57almost five. And then I started putting
- 4:59I've got one of those like a like a
- 5:01salmon topper that I put on there just
- 5:03for some extra, you know, healthy fatty
- 5:05acids. And then I've been starting him
- 5:07on like a like a joint supplement. So,
- 5:09he's kind of getting to that age where,
- 5:10you know, definitely need to start, you
- 5:11know, taking you know, taking that a
- 5:13little bit more seriously. I mean, I
- 5:14look look out for his health better than
- 5:15better than I do my own. And then and
- 5:17then my cat is on um Hill's Hill's
- 5:20Science Diet, I think it's called. Um
- 5:22yeah, same thing. He's been been eating,
- 5:24you know, the same kibble for for years.
- 5:25But I know there I know there's
- 5:26obviously, you know, way way better
- 5:28options out there and that's, you know,
- 5:30up to me to go out there and find them,
- 5:32especially living in Austin. This is
- 5:33like the most friendly the most
- 5:34pet-friendly city ever. So, you know,
- 5:37definitely a great place to
- 5:38>> Yeah, I think that's like in a way
- 5:40that's that's where we started. So,
- 5:42like, we were 5 6 years down the line my
- 5:44dog was having kibble the entire time
- 5:45and like, what else how can I make it
- 5:46more interesting for him?" So, I I would
- 5:48highly recommend adding like
- 5:49blueberries, eggs, yogurt. Kefir is a
- 5:51huge Yeah. So, that's that's pretty much
- 5:53where we started.
- 5:54>> Yeah, and it all came out of our
- 5:55product.
- 5:56>> Mainly for our pets, and then yeah.
- 5:58>> I I I always love talking to brands that
- 5:59have more of like a personal story
- 6:01behind behind behind the start of their
- 6:03brand. So, as you as you were going
- 6:04through this, like what was your like
- 6:06what was your big big breakthrough
- 6:08moment? Like what was that one moment
- 6:09where you're like, "Okay, like we're
- 6:10really onto something here."
- 6:11>> So, our first product line, the powders,
- 6:13like we launched this in Hong Kong. We
- 6:15got into Singapore and Malaysia. Powders
- 6:17are I would say this is like a
- 6:18concentrated We've got a lot of good
- 6:20feedback from pet owners that are like,
- 6:22"Oh, the skin is great. The poops are
- 6:23great. This old my old cat is like
- 6:26eating and jumping around again." So,
- 6:28we're like, you know, there's something
- 6:29here with the mushrooms and superfoods.
- 6:31With this form factor, we're like, you
- 6:32know, there's there's limitations.
- 6:35Powders are great and it's fun, but how
- 6:37do I make this even better? We looked
- 6:39into the category. I'm like, you know,
- 6:40how do we elevate this and make it in
- 6:43more into like a reward-based product
- 6:45instead of a supplement. So, when we
- 6:47looked into the treat category, we
- 6:49realized that the cats cat treats are
- 6:51huge, and the biggest biggest product in
- 6:54the cat category are the lickable
- 6:56treats. That's where I was like, you
- 6:57know, this format hasn't changed much
- 7:00over last 20 years, and it's a lot of
- 7:02additives, synthetics, usually single
- 7:04protein. But, cats love it. It's like
- 7:06cat crack. I'm like, how do I like maybe
- 7:08we can elevate this. What if we pump our
- 7:10functional mushrooms, superfoods, and
- 7:11like use nice protein, and just cut out
- 7:14all the fillers?
- 7:15That translated to like a whole new
- 7:17segment of creating a new product line.
- 7:20We We reached out to Dr. Barbara Royal,
- 7:22an amazing integrative vet in Boston.
- 7:24She actually inspired us to start Holy
- 7:26Cow with her her documentary Pet Fooled.
- 7:28I highly recommend watching it cuz it's
- 7:31it really changed our perspective of how
- 7:33we feed pets and why why we're feeding
- 7:35them the way we want to feed them. So,
- 7:36she helped us formulate the products,
- 7:38and it took us a long time to find a
- 7:40manufacturer that was willing to create
- 7:42the product for us from scratch. A lot
- 7:44of manufacturers that we speak to,
- 7:45they're like, you know, here's a
- 7:46templated formula, but you have to use
- 7:48it because, you know, it has good
- 7:49results. But, we finally found one,
- 7:51very, very good one in Thailand, and
- 7:53they were willing to work hand-in-hand
- 7:55with us to build it from the ground up,
- 7:56like our own formulation. But, we
- 7:58managed to create a product that we're
- 8:00very happy with. Um so, it's like treats
- 8:03for dogs and cats, but it's just pumped
- 8:05with superfoods, functional mushrooms,
- 8:07and and clean proteins. So, it's it's
- 8:09been a journey, and that's that's what
- 8:11we were showcasing in Expo West when
- 8:13when you had met us. So, so that was our
- 8:15big entry point for the US market, just
- 8:18to debut our new product line of these
- 8:20Ollie Cap Squeezies.
- 8:21>> It's a that's the place to do it for for
- 8:23for debut. And if you're if you're going
- 8:24to do a big, do it as big as you can
- 8:26with with Expo West. So, yeah, really
- 8:28glad we we bumped into each other there.
- 8:30Now, going more on to like the business
- 8:32side of things, so as you started to to
- 8:34grow this brand, what did you do to
- 8:37first like how did how did you first get
- 8:38your first customers? Were you more
- 8:39retail focused? Were you more online
- 8:41focused? Like what was your guys' a
- 8:43sales strategy as you were getting
- 8:44started off?
- 8:45>> Um back in Hong Kong, we were definitely
- 8:47more retail focused. Now, it's I think
- 8:49with the US segment is it's a bit
- 8:51different. We want to go
- 8:52direct-to-consumer, and and I think
- 8:55learning from our experience in Hong
- 8:56Kong, going direct-to-consumer is the
- 8:58way to go because, you know, you have
- 9:00more control your customer data, you get
- 9:02much more direct com- communications
- 9:04with with your clientele as well. So,
- 9:07that's that's our main strategy, like
- 9:09we're on Amazon. Shortly after Expo
- 9:11West, we're now on Amazon. It's going
- 9:12well, like things are picking up. We're
- 9:14very excited for for with the growth.
- 9:16Next steps is solidifying our TikTok,
- 9:18getting onto TikTok Shop, and doing
- 9:20launching our Shopify 3PL. At the same
- 9:23time, we're talking to brokers and
- 9:24retailers that might be interested, but
- 9:26the main main piece for us is how do we
- 9:28build and build on TikTok?
- 9:30>> Absolutely. Yeah, I think Tik- TikTok is
- 9:32is such a huge lever these days. Um so,
- 9:34I don't know I don't know if if if we
- 9:35talked about this. I actually come from
- 9:37a Tik Tok background, so I worked at Tik
- 9:38Tok shop for for two years starting back
- 9:40in in 2023. So I've been seeing the
- 9:43growth and evolution of not only the
- 9:44platform, but a lot of the brands. Like
- 9:46seeing some of these these brands that
- 9:47came on a Tik Tok back in, you know,
- 9:50early you know, early mid-2023, early
- 9:522024 and seeing, you know, it it's a
- 9:54completely new business now. I think
- 9:56what Tik Tok has done is it's showed
- 9:58that you can like the kind of
- 10:00accelerated growth that you can get as a
- 10:01business in such a short period of time
- 10:03is very possible. Because with like the
- 10:06old model before social media, before
- 10:08social commerce, it was just like super
- 10:10long, lengthy, you know, took years and
- 10:12years and sometimes decades to to grow
- 10:14to, you know, a certain valuation or if
- 10:16you wanted like to exit and to sell. But
- 10:18now we just saw with with Grooons, you
- 10:20know, a year and a half in business. I
- 10:22think it was like I and and then sold
- 10:24for it was like 1.2 billion dollars.
- 10:26Yeah, I mean they're like they were they
- 10:27were super super heavy in Tik Tok shop,
- 10:29you know, that was a huge lever for
- 10:30them. So in terms of Tik Tok becoming,
- 10:32you know, a priority for you, like how
- 10:33do you see you guys how do you see Holy
- 10:35Cap leveraging Tik Tok moving forward?
- 10:38>> Yeah, it's going to be a big piece for
- 10:39us. I mean coming from Hong Kong, it's
- 10:40banned over here. So we never really
- 10:42used the platform too much or built on
- 10:44it too much. Our focus more is more on
- 10:45Facebook and Instagram, but now it's the
- 10:48whole game has changed. And our
- 10:50learnings from XTool USA is like no
- 10:51one's talking about IG anymore. Every
- 10:53single brand, everyone that we're we've
- 10:55spoken to, all the up and coming brands,
- 10:57focus on Tik Tok shop. That's the
- 10:59biggest thing. Definitely leveraging
- 11:00that. Um I think like working with you
- 11:02guys was great. I think you guys have a
- 11:03great platform to use get UGC content
- 11:06and that's biggest component for Tik Tok
- 11:08right now. Especially for our type of
- 11:10product, you know, who doesn't like
- 11:11watching their pets use use this and
- 11:13then and I think pet related content
- 11:15works really well on on social media as
- 11:17well. And from what we've been seeing is
- 11:19that like it's it's a whole new era of
- 11:22UGC like pet based UGC content creators
- 11:25coming out. Kind of think that's a huge
- 11:27huge category.
- 11:28>> Absolutely. I know but pet talking I
- 11:29mean that's a majority of my feed right
- 11:31there. I mean well my dog is a chocolate
- 11:32lab and I follow all these other
- 11:34chocolate lab pages and it's just like
- 11:35just this non-stop of just a bunch of
- 11:38bunch bunch of little Mavericks on my on
- 11:40my page. It's a very tight-knit, very
- 11:41trusting community because obviously
- 11:43like like you were talking about before,
- 11:44how people are taking their dog health
- 11:45much more seriously. And people at the
- 11:47end of the day, like people aren't
- 11:49necessarily, you know, listening to TV
- 11:50commercials. They're listening to each
- 11:52other. They're listening to, you know,
- 11:53other pet owners. And TikTok, with how
- 11:55with how viral and how shareable and how
- 11:57social and interactive it is, allows pet
- 12:00owners to to interact with each other.
- 12:01So, definitely excited for, you know,
- 12:03for for the campaign you've got with us.
- 12:04I think that's going to continue doing
- 12:06well. In terms of what you guys kind of
- 12:09look for initially, um what are some
- 12:11things you guys look for with a creator?
- 12:13Like what is like what is a good video
- 12:15look like for for your brand?
- 12:17>> I think coming from like a branding
- 12:18background, it's even for ourselves, we
- 12:21have like very high standards in terms
- 12:22of like appealing with connects with the
- 12:24audience. But definitely makes a good
- 12:26video for us is more like if the creator
- 12:29understands our product and brand and if
- 12:31they can align themselves with the
- 12:33narrative, like to tell their story of
- 12:35how they use a brand or product and why.
- 12:37Obviously has to be like well-shot,
- 12:39well-lit, has a good hook and all that
- 12:41all of the creative aspects of it. But I
- 12:44think the narrative and storytelling is
- 12:46is a lot more important these days as
- 12:48well.
- 12:48>> Yeah, absolutely. And I know with the
- 12:50like with the relationship between a
- 12:52brand and creator, like there's always
- 12:53kind of like a a debate that you see
- 12:55back and forth. In terms of in terms of
- 12:57making the content, like who who kind of
- 12:59steers the ship? Brands, obviously like
- 13:01there like there's the brands out there
- 13:02that want to have like full 100%
- 13:04hands-on control. They want to control
- 13:05every single word that gets said. And
- 13:07then there's some brands that like to
- 13:08give the creators a little bit more a
- 13:10little bit more creative freedom and
- 13:11kind of, you know, let let them go with
- 13:13it. Because obviously like the creator,
- 13:14they have they've got their own brand.
- 13:15They've kind of got their own niche that
- 13:17you built their audience that their
- 13:18audience knows them for. I'm so curious
- 13:20to hear how you've been going about
- 13:22this. Like how much how much how much do
- 13:23you like to control the narrative and
- 13:25how much do you like to kind of give the
- 13:26creator some freedom to work with it?
- 13:28>> that's yeah, to be very frank, that's
- 13:30been one of the the things that we've
- 13:32been working on as a brand, letting go
- 13:34of branding. We like having things like,
- 13:37oh, you know, it has to look this way,
- 13:38all that stuff. But when it comes to UGC
- 13:40content, we're very open. We're very,
- 13:42very open to the creators taking the
- 13:44lead, like, here's the branding
- 13:46foundations and go, go run with it. Be
- 13:48as creative as you like. I think the
- 13:50creativity aspect of it is something
- 13:52that we really value as well. I guess
- 13:54it's always exciting to see what the
- 13:56creators will come back with, our
- 13:57foundational prompt. See what you can
- 13:59make with it and create a fun, fun
- 14:01video. I would love to see that.
- 14:02>> At the end of the day, you're hiring a
- 14:03creator for their creativity. Like if
- 14:05you just want someone just to, you know,
- 14:07to read off of a script, I mean, you can
- 14:08you can hire, you know, you can hire
- 14:09anybody to do that. Yeah, I know that
- 14:11that's always tough as a brand. Like you
- 14:12obviously like you build up your brand
- 14:14with, you know, a certain a certain
- 14:15image in mind. You want to make sure
- 14:16that's represented properly. And I think
- 14:18there definitely is a balance of making
- 14:20sure that there is that there are those
- 14:22points like, hey, like you're like
- 14:23you're hitting on the key benefits, you
- 14:24know, you're you're representing, you
- 14:25know, the product properly, you're
- 14:27making sure you're going over, you know,
- 14:28the different, you know, the benefits
- 14:29that it offers and kind of like hitting
- 14:31on the main points cuz you do want some
- 14:32sort of some sort of consistency across
- 14:34the products making sure that, you know,
- 14:36are getting articulated in each video,
- 14:37the way that that's presented. Like I'm
- 14:39not a creative person at all. I'm very
- 14:41like I don't know if it's like right
- 14:42brainer or left brainer, whichever one
- 14:43is like the mathy numbers, like 1 + 1 =
- 14:462 kind of stuff. Like that's me. I'm I
- 14:48don't have a creative bone in my body.
- 14:49And some of the stuff that you see
- 14:50creators make is something that I
- 14:52wouldn't even think of in a million
- 14:54years. And I think that's I think that's
- 14:55something that that that brands enjoy,
- 14:56too, cuz, you know, if it's, you know,
- 14:58whether it's kind of more like comical
- 15:00or more, you know, in a in a creative
- 15:01sense, like whatever whatever it is. I
- 15:03think there definitely is is some
- 15:04benefit to kind of kind of letting go to
- 15:06the creators.
- 15:07>> Yeah, and it's I would say just like
- 15:08jumping back to our
- 15:10the use of your platform, the campaigns
- 15:11that we're running, we're seeing a huge
- 15:13range of variety, which is fun. And it's
- 15:15it's fun because I guess within the pet
- 15:18category or that pet treat category,
- 15:20it's fun to see that interaction between
- 15:22owner and dog, owner and cat, and seeing
- 15:25how different people interact with their
- 15:26pets as well.
- 15:27>> Now in terms of in terms of building
- 15:29building this brand, obviously there's
- 15:31there's a lot that goes into building a
- 15:32brand from zero. As you've been building
- 15:34this brand, what is something about
- 15:36building a brand that you might not have
- 15:38anticipated that was kind of like a
- 15:39shock?
- 15:40>> There's a lot of challenges with
- 15:42building a brand. I think everyone has a
- 15:45dream vision that they're like, "Oh, I'm
- 15:47going to make this product and it's
- 15:48going to go well, like everyone's going
- 15:50to buy it." But the amount of steps in
- 15:52between create till you get to that
- 15:55product, like the amount of iterations
- 15:57that we had to make to get to the
- 15:58product or even just like finding the
- 16:00right ingredients, making sure their
- 16:02sourcing is good, and the certifications
- 16:05are right, and then finding the
- 16:06manufacturer, traveled the world to find
- 16:08our manufacturer. I went to like New
- 16:10Zealand, Vermont, South Korea, Thailand,
- 16:13and there's so many in between that
- 16:16aren't great. So I think it's finding
- 16:17the right partners that align with your
- 16:20values and your brand values as well and
- 16:22your own core personal values, making
- 16:24sure you can trust them. There's there's
- 16:26a lot that I have learned throughout
- 16:27this journey, but biggest thing is you
- 16:29have to have like an endless pit of
- 16:31optimism that and like you just have to
- 16:33keep pushing forward cuz for every win
- 16:35you get there's probably like a hundred
- 16:37setbacks that you will get and everyone
- 16:39around you is like, "You know, you're a
- 16:40bit crazy. Like you're risking a lot."
- 16:42>> Probably one of the most common themes
- 16:43that I hear talking to like brand
- 16:45owners, agency owners, entrepreneurs,
- 16:47like there's there's a couple common
- 16:48themes that you see across you know,
- 16:50people who have you know, kind of paved
- 16:52their own path and started their own
- 16:53business, brand, agency, whatever it is.
- 16:55And one of those is kind of like a
- 16:56healthy amount of for lack of a better
- 16:58term delusion. It's just like that
- 17:00there's like that unphased optimism that
- 17:02like, "Hey, I'm going to get knocked
- 17:03down a million times, but you know, as
- 17:04long as I keep getting back up and you
- 17:06know, whatever something happens, just
- 17:07know, you know, hey, that's you know,
- 17:09that's part of business. That's just
- 17:10part of the day. You know, let's you
- 17:11know, instead of you know, getting you
- 17:12letting it consume you, let's figure out
- 17:14how to you know, get past it and move
- 17:15forward."
- 17:16>> Yeah, totally. It's I mean if it was
- 17:18easy everyone would create an amazing
- 17:20product, but if you can get through it I
- 17:22think there's there's a massive reward
- 17:24on their side, but it just it's takes
- 17:26time and a lot of patience, a lot of
- 17:28dedication. But we are I mean a part of
- 17:31what we're building and what we're
- 17:32trying to do is I'm out to prove that it
- 17:34is possible to create a product that is
- 17:36that has good margins, but at the same
- 17:38time you're using nature's best
- 17:40ingredients. It just shows that all the
- 17:42other brands are out there that are, you
- 17:44know, making sub par products. Imagine
- 17:46the margins that they make. It's insane.
- 17:48Yeah, hopefully hopefully we can do
- 17:50something big.
- 17:51>> Speaking of Speaking of margins, that's
- 17:52one of the kind of the interesting parts
- 17:53of the conversation that we have around
- 17:56around TikTok cuz I feel like TikTok
- 17:57Shop is a very unique sales channel when
- 17:59it comes to margins cuz obviously like
- 18:01we all know we all know, you know,
- 18:01Amazon keeps on increasing their fees,
- 18:03so they're kind of squeezing margins.
- 18:05TikTok fees in and of itself aren't that
- 18:07bad, but there's, you know, there's, you
- 18:08know, the fees that you have to pay to
- 18:10to to creators, you know, for a good
- 18:12campaign you're paying, you know, 15,
- 18:1420, 25%. So there's definitely, you
- 18:16know, some fees with TikTok that kind of
- 18:18that that that kind of stack up. But a
- 18:20lot What a lot of brands I think I think
- 18:22missed the mark on, I'm not sure if this
- 18:23is something you guys are you guys are
- 18:24doing, but something I want to share.
- 18:26TikTok is not so much just a commerce
- 18:28stream, but you're also going to notice
- 18:30that it's a major market. So a lot of
- 18:32I've heard a lot of a lot of big brands
- 18:34talk at massive expos, massive trade
- 18:36shows talking about how they use TikTok
- 18:38essentially as kind of like a break even
- 18:40platform. At the end of the day like
- 18:41with with the virality of TikTok like
- 18:43you guys obviously have other streams if
- 18:44you want to focus on your retail DSC,
- 18:46the kind of halo effect that you're
- 18:47going to see from TikTok Shop once you
- 18:49guys get started on that is something
- 18:51it's it it's kind of tough to measure,
- 18:53but I can promise you you're for sure
- 18:54going to notice that. So I just want to
- 18:57say like make sure you're ready for
- 18:58that. You know, you'll see, you know,
- 18:59Shopify sales will go up, Amazon sales
- 19:01will go up. A lot of brands that kind of
- 19:03started on TikTok became, you know, a
- 19:05TikTok brand and that was able to get
- 19:07them into, you know, Target, Walmart,
- 19:09all that. Do you guys have plans on
- 19:10getting into retail or what is the next
- 19:122-3 years look like for you guys?
- 19:14>> I mean, yeah. I think going back to your
- 19:16point about the TikTok and marketing
- 19:17spend, I think I do agree like in the
- 19:19same same sense, you pick your demons,
- 19:21you pick your battles as well. Like if
- 19:23you go Shopify direct to consumer, you
- 19:25don't have social media, you have to
- 19:26spend a lot of money onto, you know,
- 19:28digital marketing, all that kind of
- 19:29stuff, too. And then on the other side
- 19:31of spectrum, if you're going to Target,
- 19:33Sprouts, or Whole Foods and stuff, you
- 19:34have to make sure your product sells.
- 19:36So, the amount of marketing that you
- 19:37spend into it is the same if not more.
- 19:40So, I thought Yeah.
- 19:41>> Yeah, how do you decide where to go?
- 19:42>> Yeah, I mean, you just have to figure
- 19:44out where how to target your demographic
- 19:46best, I think. So, for us, we have been
- 19:49We are fairly I would say we're very new
- 19:50to the US market after debuting in Expo
- 19:52West in March, but we have big ambitions
- 19:55and and the the momentum has been
- 19:56building and we're very excited. Like
- 19:58Amazon's good. I want to double it down
- 20:00and strengthen it with TikTok and TikTok
- 20:03Shop. At the same time, we're talking to
- 20:05brokers that believe in what we're
- 20:07doing. I want to get into national
- 20:09grocers. I feel like
- 20:10>> So, the angle that we've been kind of
- 20:12going down is like I would say like
- 20:14Target, Whole Foods, Sprouts, that kind
- 20:16of angle would be amazing for us because
- 20:18what we find is that pet owners are
- 20:20buying the modern pet pet owners are not
- 20:22just shopping for themselves, you know,
- 20:24but they're shopping for their pet as
- 20:25well. So, if I'm in Whole Foods on in
- 20:27the supplement aisle looking for
- 20:28mushroom powders or mushroom
- 20:30supplements, uh superfood supplements
- 20:31for myself and I go to the pet aisle, I
- 20:33see something similar like, oh, you
- 20:35know, it'd be a much less hesitation to
- 20:37try that for my pet. Because I would say
- 20:39the level of
- 20:40>> knowledge and understanding of pet
- 20:42wellness and nutrition for the modern
- 20:44pet owner today is is crazy. They feed
- 20:46their pets better than they feed
- 20:47themselves. They're looking at the
- 20:49ingredient list much more carefully than
- 20:52for the food that they feed themselves,
- 20:54you know. That's that's been the
- 20:55the direction that we've been trying to
- 20:57take. We're we're a very very early on.
- 20:59So, I'm more than happy to have these
- 21:01conversations just like to see how we
- 21:02can build and expand in the US.
- 21:05>> Yeah, absolutely. And and you and I will
- 21:06continue to work together, especially as
- 21:07you get rolled out on Tik Tok. I would
- 21:09say like working with a brand that is
- 21:11brand new Tik Tok shop like that excites
- 21:13me so much just because there's so many
- 21:15like there's so many creative avenues
- 21:16you can go down in terms of like create
- 21:18like creating social proof. Like Tik Tok
- 21:20the cool thing about Tik Tok shop now
- 21:21versus a couple years ago is like back
- 21:23when I first started there it was like a
- 21:25total wild wild west. Like no one really
- 21:27knew how it worked. No one really knew
- 21:28how to grow. You know, you know, someone
- 21:30would get a viral video and then
- 21:31suddenly you know, they're selling
- 21:32online courses saying you know, I oh,
- 21:34I'm you know, the Tik Tok shop expert
- 21:36and I've got my own thoughts about it,
- 21:37you know, those course sellers, but but
- 21:39with Tik Tok shop now has enough social
- 21:41proof, has enough case studies and has
- 21:43enough, you know, platform credibility
- 21:45where there's much more of a a refined,
- 21:47you know, cold start strategy. So we'll
- 21:49we'll we'll definitely be be working
- 21:51with you guys very very closely hand in
- 21:52hand with that because I think this is
- 21:54something that can definitely be be
- 21:55really big. There's still a lot of
- 21:57opportunity on Tik Tok shop for brand
- 22:00like there we we've got a like there's a
- 22:01there's a bunch of brands. I'm sure you
- 22:02know the ones that are that are selling
- 22:04on Tik Tok right now, but there's really
- 22:05there there's definitely still a lot of
- 22:07opportunity for for new players to come
- 22:09in and really take a big part of the
- 22:10market share. So I definitely see this
- 22:12being being one of those. So you know,
- 22:13we're kind of coming up on on our time
- 22:15here. Just had one final question here
- 22:17from my end. If you had a message that
- 22:19you'd give right now, if there's someone
- 22:20watching right now who is looking to
- 22:22start a brand or is you know, thing is
- 22:24in the works of it in the very early
- 22:26stages, what's one piece of advice that
- 22:28you would give to someone starting a
- 22:29brand?
- 22:30>> I'd say go big. Make your mistakes early
- 22:32and just keep going. Go for the biggest
- 22:34market, I think. For us, we were so
- 22:36focused on perfecting the product and
- 22:38perfecting the brand. And then we we did
- 22:41our test pilot was in Hong Kong, but I
- 22:43think if we launched in the US from the
- 22:45get-go, I think it'd be a different
- 22:47story, but it's all learning. The
- 22:48biggest thing is just believing in
- 22:49yourself and go big cuz any hesitations
- 22:52will set you back. And if you're not
- 22:53100% in it, people will feel it.
- 22:55Customers will feel it. It shows in your
- 22:57brand and product as well.
- 22:58>> Absolutely. I feel like I feel like Tik
- 23:00Tok Tik Tok users have become like as
- 23:02people have been been on the platform
- 23:04longer and have seen you know brands
- 23:05come in and out. I feel like people can
- 23:07much more easily tell which brands are
- 23:09authentic versus one that just kind of
- 23:11like threw together an idea on chat GPT
- 23:13and are just in it just to you know make
- 23:14a quick buck and get out. So I feel like
- 23:16there's definitely more of a more of a
- 23:18more more of a desire for those those
- 23:20authentic brands with you know good
- 23:21quality products, a good story, like a
- 23:23good cause behind it. So I I think you
- 23:25guys you guys definitely fit that.
- 23:26>> Authenticity aspect is a big thing
- 23:29nowadays. Like especially with AI,
- 23:30right? Like what we're seeing brands
- 23:31like I feel like people are getting a
- 23:33bit exhausted with AI seeing AI content,
- 23:37AI captions, all that kind of stuff.
- 23:39That's why I think UGC is huge. I think
- 23:40it's it's not going to go anywhere. If
- 23:42If anything it's it's only going to grow
- 23:44cuz people want to see how authentic
- 23:46people are or like their real reactions,
- 23:48use cases, and whatnot. So it's it's an
- 23:51exciting I think it's an exciting era.
- 23:53Navigate it properly is it'll be huge.
- 23:56>> Absolutely. I love that. Yeah, just you
- 23:57know go go go big, go all in, be
- 24:00confident, and and don't look back. It's
- 24:02It's It's easy to write an idea out on a
- 24:03board and you know talk about stuff with
- 24:04your friends, but actually taking action
- 24:06and you know taking that first step and
- 24:08and not being afraid to to fall flat on
- 24:09your face is that's how you make it.
- 24:11>> I know a lot of people that have like
- 24:13great ideas, but you know taking the
- 24:14plunge is is not easy.
- 24:16>> Well, definitely excited to see to see
- 24:17the continued growth of of Holy Cap. You
- 24:19know you you me you and the team will
- 24:21will continue to work very closely
- 24:22together on on your current campaign and
- 24:24any kind of future campaigns. You know
- 24:25I'm excited to to work hand in hand with
- 24:27you and in helping you guys go. Well,
- 24:29Brian really appreciate that you hopping
- 24:30on. Hope you have an awesome rest of
- 24:31your day and we'll we'll chat real soon.
- 24:33Awesome. Thanks, Brian.
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