Hanna Andersson, a 40-year-old kids apparel brand, successfully pivoted from brick-and-mortar to a 100% DTC model, significantly boosting profitability and customer intimacy. CEO Aimée Lapic is now focused on leveraging the brand's strong heritage to build a more formalized customer community and expand into new product categories while scaling their successful peer-to-peer resale program.
Key takeaways
Transitioning to a 100% DTC model can drastically improve profitability and direct customer understanding, as demonstrated by Hanna Andersson's strategic shift.
Implement a peer-to-peer resale program to tap into the circular economy, extend product lifecycle, and engage your existing customer base, evidenced by Hanna Andersson's growth from 2,500 to over 17,000 listings.
Actively foster and formalize existing organic customer communities to deepen brand loyalty and advocacy, rather than solely relying on unaided word-of-mouth.
Strategically expand into adjacent product categories that align with your brand identity and customer needs to unlock new growth avenues, like Hanna Andersson's move into children's athletic wear.
Leverage a strong brand heritage as a foundation for new initiatives like community building and resale programs, connecting with customers who have a long-standing relationship with the brand across generations.
Kids' apparel brand Hanna Andersson is four decades old but in the midst of a huge business transformation.
In 2019, it decided to close all of its stores and focus solely on its online business. The company says this strategic shift has helped stay focus and grow in new ways.
"We're 100% direct to consumer and are frankly much more profitable because of that -- and, honestly, much more attuned to our customers in anticipating their needs," said Aimée Lapic, CEO of Hanna Andersson.
She joined the Modern Retail Podcast this week and dove into her strategic mandates and the areas of growth she's most excited about.
Lapic has worked in retail for a long time now. She worked at both Gap and Banana Republic, helping lead their early online experiences and marketing strategies. She then moved to the tech sector at places like Pandora and GoPro. But she came back to apparel last summer when she accepted the role of CEO at Hanna Andersson.
"Honestly one of the reasons why this is such a fun moment for me is that it is full circle from how I started my career in apparel," she said.
With nearly a year under her belt, Lapic has been focused on launching new initiatives. For example, the apparel brand -- most well-known for its pajamas -- has expanded into children's athletic wear. Beyond that, Hanna Andersson also launched a peer-to-peer resale program. That first began earlier this year with 2,500 listings and has already expanded to over 17,000, according to Lapic.
But one of her big focuses has been on tapping into the brand's already robust community. Parents have bought Hanna Andersson for years -- Lapic said she's spoken with new moms who wore the clothes themselves as children. But much of this hasn't been fostered by the brand itself.
"There has been a very strong community for many years of Hanna customers that love our brand, that speak on behalf of the brand, that hasn't actually been fostered by the brand," she said. Lapic now is trying to find ways to tap into the
Frequently asked about this episode
What does this episode say about dtc strategy?
Transitioning to a 100% DTC model can drastically improve profitability and direct customer understanding, as demonstrated by Hanna Andersson's strategic shift.
What does this episode say about brand & content?
Implement a peer-to-peer resale program to tap into the circular economy, extend product lifecycle, and engage your existing customer base, evidenced by Hanna Andersson's growth from 2,500 to over 17,000 listings.
What does this episode say about customer retention?
Actively foster and formalize existing organic customer communities to deepen brand loyalty and advocacy, rather than solely relying on unaided word-of-mouth.
What does this episode say about dtc strategy?
Strategically expand into adjacent product categories that align with your brand identity and customer needs to unlock new growth avenues, like Hanna Andersson's move into children's athletic wear.
What does this episode say about dtc strategy?
Leverage a strong brand heritage as a foundation for new initiatives like community building and resale programs, connecting with customers who have a long-standing relationship with the brand across generations.
