Modern Retail Podcast artwork

Rocco co-founder Alyse Borkan on making mini-fridges a conversation piece

Modern Retail Podcast · with Alyse Borkan · March 14, 2024 · 30 min

Summary

Rocco is disrupting the appliance market by transforming mini-fridges into desirable home decor pieces. Co-founder Alyse Borkan shares her strategy for building a DTC brand that prioritizes design and aesthetic appeal, directly challenging traditional appliance manufacturers. The company successfully launched with a rapid sell-out, demonstrating strong product-market fit, and is now strategically expanding into omnichannel retail with partners like Nordstrom to offer experiential purchasing.

Key takeaways

Themes

dtc strategybrand & contentretail & omnichannelproduct & merchandising

Topics covered

dtc brand buildingappliance market disruptionproduct design and aestheticsomnichannel retail strategystrategic wholesale partnershipsinventory management for startups

Episode description

Rocco is a DTC mini-fridge company that wants to make people care about the big hunks of steel electronics they have in their homes. "Appliance brands don't actually have a brand," said Alyse Borkan, co-founder of Rocco. "I really saw an opportunity to do things differently than [what] the rest of the category was doing." Borkan joined this week's Modern Retail Podcast and spoke about her new brand and how she's hoping to compete with the big players like Frigidaire. Rocco launched last November with one product: a colorful fridge meant to showcase beverages. It works for both wine bottles and cans, and Borkan said the intention is to have an appliance that could complement a home's aesthetic. "People really kind of think about it as a little bar in their living room," she said. It's still early days, but the product does seem to be resonating. Rocco sold out of inventory two weeks after launching. Ever since, the company has been playing catch up with fulfilling orders, but plans to be fully stocked and ready for more expansion in the next few months. But Rocco isn't only direct-to-consumer. The brand launched in Nordstrom shortly after going live. "We really think this is something that people are going to want to experience in real life before they purchase," Borkan said. Rather than being one of hundreds in an appliance store, Rocco opted to be the only fridge in Nordstrom's furniture section. The plan now is to continue growing -- ideally adding more wholesale partners over the next year. That could mean launching in an appliance store, but it could also mean partnerships with other brands -- especially drinks brands. "We're hoping to grow pretty quickly just based on the initial interest," she said. Get more from Modern Retail with the daily newsletter, sent out each weekday morning. Visit modernretail.co/newsletters to sign up.

Frequently asked about this episode

What does this episode say about dtc strategy?
Focus on brand and design in traditionally utilitarian categories to create unique market opportunities, as Rocco did in the appliance space.
What does this episode say about brand & content?
Implement an omnichannel retail strategy that balances DTC efficiency with strategic wholesale partnerships, especially for products where physical experience is crucial (e.g., Rocco in Nordstrom's furniture section).
What does this episode say about retail & omnichannel?
Leverage initial product-market fit and strong demand to inform and accelerate inventory scaling and future expansion plans.
What does this episode say about product & merchandising?
Differentiate your product by positioning it as a lifestyle or decor item, rather than just a functional object, to appeal to a broader consumer base and command higher perceived value.
What does this episode say about dtc strategy?
Select wholesale partners strategically to enhance brand perception and user experience, rather than simply aiming for broad distribution.

Listen