Lo & Sons defied the venture-backed DTC norm by building a profitable handbag brand through bootstrapping and a focus on product innovation. This episode unpacks their journey from an "accidental DTC" company to a long-term, sustainable business, offering valuable lessons for founders aiming for profitability over hyper-growth and external funding.
Key takeaways
Prioritize profitability and sustainable growth from day one; Lo & Sons was profitable within three years without external funding.
Differentiate your product through unique, problem-solving features; Lo & Sons’ signature shoe compartment was a key innovation.
Embrace an "accidental DTC" mindset by focusing on direct customer relationships and product value rather than relying on traditional DTC growth playbooks.
Build a brand with longevity and positive impact in mind, similar to Patagonia, by focusing on core values and customer needs.
Leverage family strengths and diverse skill sets when building a business, as demonstrated by the Lo family’s collaborative approach.
Lo & Sons launched as a direct-to-consumer brand in 2010. That's practically prehistoric as far as the recent crop of DTC companies is concerned.
"We were kind of an accidental DTC company," co-founder of the brand, which makes high-end handbags, Derek Lo said on the Modern Retail Podcast. "We started before the term even existed."
The idea to start a family business came from Derek Lo's mother, Helen Lo, who despite her frequent travels couldn't find a bag that was easy on her back. She started a blog about light-weight bags -- Derek's brother Jan helped set it up on Tumblr -- before convincing her sons to quit their jobs and give their own company a shot.
The company became profitable in 2013, according to Lo, and it did so while eschewing the typical playbook of so many DTC brands that came after -- outside investment, millennial-focused subway ads and the inevitable expansion into brick-and-mortar stores.
The company's independence has helped Lo & Sons survive, in Lo's estimation. "We want to be a brand like Patagonia that's going to be around for decades, that's making a positive impact on the world," Lo said.
Lo talked about the company's origins, marketing strategy and product innovations -- like a separate compartment for shoes.
Prioritize profitability and sustainable growth from day one; Lo & Sons was profitable within three years without external funding.
What does this episode say about founder & leadership?
Differentiate your product through unique, problem-solving features; Lo & Sons’ signature shoe compartment was a key innovation.
What does this episode say about brand & content?
Embrace an "accidental DTC" mindset by focusing on direct customer relationships and product value rather than relying on traditional DTC growth playbooks.
What does this episode say about finance & fundraising?
Build a brand with longevity and positive impact in mind, similar to Patagonia, by focusing on core values and customer needs.
What does this episode say about dtc strategy?
Leverage family strengths and diverse skill sets when building a business, as demonstrated by the Lo family’s collaborative approach.
