Gorjana's founders on growing a profitable jewelry business: 'No home runs here'
The Glossy Podcast · with Gorjana Reidel and Jason Griffin Reidel · March 18, 2020 · 41 min
Summary
Gorjana, a jewelry brand, shares its journey of achieving profitability and growth through a bootstrapped approach. The founders discuss their strategic shift from 90% wholesale to 80% direct-to-consumer sales, emphasizing steady growth over rapid "home runs." This episode offers valuable insights into building a resilient brand, navigating retail partnerships, and successfully transitioning sales channels for long-term self-funded success.
Key takeaways
Transitioning from wholesale to DTC can significantly boost profitability and control, as shown by Gorjana's shift from 90% wholesale to 80% DTC, increasing direct customer relationships.
Bootstrapping a business allows for greater control and sustainable growth, enabling the brand to weather economic downturns like the 2008 financial crisis by focusing on steady, incremental progress rather than rapid, unstable expansion.
Strategic retail partnerships, such as Gorjana's initial collaboration with Nordstrom, can provide crucial early market access and brand validation, even while planning a long-term DTC transition.
Pioneering and capitalizing on emerging trends, like delicate layering jewelry, can establish a brand as a market leader, but requires continuous adaptation as the market evolves.
Diversifying sales channels and being agile in strategy (e.g., expanding physical stores alongside e-commerce) creates resilience and new revenue opportunities, especially during uncertain economic climates.
Jewelry company Gorjana is growing, self-funded and profitable, but its founders insist that it was a slow and tricky road. "No home runs here," Gorjana Reidel said on the Glossy Podcast.
She and her husband, Jason Griffin Reidel, first sold their jewelry in small boutiques before partnering with Nordstrom in 2014. "We were kind of the pioneers of the category that you see so many people getting into now, of gold, delicate, layering jewelry," Griffin Reidel said. Early on, Nordstrom partnered with the brand, launching it in 25 stores at a time (the Reidels got to pick which ones), and Gorjana Jewelry is now available across the chain's approximately 120 outlets.
But despite its success with Nordstrom, in recent years Gorjana has made the shift to selling direct-to-consumer via its own stores and e-commerce site. Three years ago, 90% of Gorjana’s sales were coming through wholesale channels and only 10% from DTC. Today, 80% of sales are direct-to-consumer.
Gorjana has nearly 200 employees and, by the end of May, the company plans to have 16 stores across California, New York City and Arizona -- the coronavirus pandemic notwithstanding.
Gorjana Reidel and Jason Griffin Reidel talked about the benefits of boot-strapping a business, their secret to growing steadily even through the financial crisis of 2008 and their advice for entrepreneurs.
Transitioning from wholesale to DTC can significantly boost profitability and control, as shown by Gorjana's shift from 90% wholesale to 80% DTC, increasing direct customer relationships.
What does this episode say about retail & omnichannel?
Bootstrapping a business allows for greater control and sustainable growth, enabling the brand to weather economic downturns like the 2008 financial crisis by focusing on steady, incremental progress rather than rapid, unstable expansion.
What does this episode say about founder & leadership?
Strategic retail partnerships, such as Gorjana's initial collaboration with Nordstrom, can provide crucial early market access and brand validation, even while planning a long-term DTC transition.
What does this episode say about finance & fundraising?
Pioneering and capitalizing on emerging trends, like delicate layering jewelry, can establish a brand as a market leader, but requires continuous adaptation as the market evolves.
What does this episode say about dtc strategy?
Diversifying sales channels and being agile in strategy (e.g., expanding physical stores alongside e-commerce) creates resilience and new revenue opportunities, especially during uncertain economic climates.
