It takes a strong vision for a newly launched apparel brand to turn down distribution offers from well-known retailers such as Macy’s, Hot Topic, Urban Outfitters, and Nordstrom, but Johnny Cupcakes’ founder Johnny Earle has grown his company with a unique and unwavering strategy. While his brand may pale in comparison to multi-billion dollar giants, his business model can prove instructive to brands chasing the elusive “cool” label among teens and young adults.
Maintain Total Control. The decision to remain relatively small in size derives from the desire to control the experience and brand’s image, he says. “I know the feeling when I first saw my favorite underground clothing line at a chain store. I thought to myself, great, now everyone will know about it. People appreciate what not everyone has and longevity is built upon appreciation.” Also, he believes cool products are not easily accessible. “When a person recognizes Johnny Cupcake’s iconic crossbone and cupcake logo, it’s almost as if they are a part of a secret club,” he says. He further cultivates the cult appeal of his brand by making everything limited-edition. When a specific design sells out, it will never be reproduced.
Create And Maintain A Tight Community. Johnny Cupcakes generates more than $3 million in sales each year with little to no advertising. Its growth is almost entirely built upon word-of-mouth. In fact, Earle spends almost as much time communicating with fans as he does designing products. Johnny Cupcakes primarily reaches out to consumers via social media with a blog, Facebook, and Twitter accounts. He frequently will send out a tweet or Facebook posting inviting fans to hang out. At a recent stop in Phoenix, for instance, he posted a Twitter message inviting everyone to his hotel lobby for a free Shirley Temple. With less than six hours’ notice, 60 people showed up to mingle past three a.m. Similarly, some 300 people showed up at a Los Angeles ice cream shop to be treated to free dessert.
Small Doesn’t Mean Unsuccessful. It took more than four years for Earle to launch his first retail store, and even today he only operates three physical locations. Johnny Cupcakes is “not trying to be everything to everyone.” However, that’s not to say the company doesn’t have long-term goals. Earle has slowly expanded his product line with accessories and handbags, and is exploring opening up a London shop in the next few years.
Separate Online And Retail Experiences. Although the Web is the backbone of Earle’s business, he wanted to ensure that both the Internet and retail experience complement — not cannibalize — one another. In other words, he didn’t want someone only to shop online or only to visit the retail store. Hence, he attracts shoppers to the retail stores with in-store exclusives and events. Web shoppers also are able to purchase exclusive products, but each order is treated as a prize or a treat, with each receiving random surprises, such as vintage Teenage Mutant Ninja Turtles trading cards. Select orders receive free overnight shipping or an extra t-shirt or hat at zero cost.
Little Details Matter. In order to create a “memorable experience,” Earle emphasizes little details, such as outfitting his retail stores as bakeries that trade on the Cupcake brand imagery. T-shirts are displayed in refrigerators and numerous vanilla scented car fresheners are hidden throughout the store. Each purchase comes in a custom pastry box, and a nutrition label is used as the hangtag. To Earle, first impressions are everything.
Collaborate With Like-Minded Brands. Johnny Cupcakes is currently looking to collaborate with brands on limited-edition lines, as it has done with Warner Bros. In addition, Earle is in the middle of a cross-country “Suitcase Tour” in which various businesses, such as art galleries, bakeries, design studios, and boutiques host him for an evening in exchange for Earle bringing in hundreds of his customers to their stores. Footage shot at every stop on the “Suitcase Tour” will be uploaded to Earle’s website; at the end of the tour it will be packaged and sold as a complete documentary.
Source: Johnny Cupcakes, Johnny Earle, Founder, 106 Finnell Dr., Weymouth, MA 02188; johnny@johnnycupcakes.com; www.johnnycupcakes.com.
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