This is another in the series of my talking about a business and the founder. I’m keen one day for Kate Morris of Adore Beauty to be a guest on this show – meanwhile here is my version of her story …
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Or read my version of Kate’s business startup story here:
How would you feel if you opened a cosmetic package you had ordered on line and inside the products were beautifully wrapped in tissue, with a bow – and there was also an extra treat, a chocolate furry friend or caramel koala included in the box?
My bet is you’d feel pretty special and you’d be pretty excited – right? – and you would probably tell your friends.
Well that is how Adore Beauty’s owner and founder Kate Morris, gave her online business an early edge.
Kate launched her company, Adore Beauty in 1999 at 21 years of age. 1999 was the very early days of the internet and this was the first attempt to sell cosmetics online in Australia.
At the time, online retail was regarded as the turf of discount goods – certainly not prestigious cosmetic brands.
While she was at Uni, Kate worked part-time behind the Clairins counter in a department store.
She saw that the experience of buying beauty products in department stores was often intimidating for women who may be fearful of buying the wrong products, and who also feel the pressure of the upsell.
Kate could see that it would be a more empowering experience for women to make decisions about cosmetic options from the comfort of their own home. Turns out she was right.
In the early days, cosmetic houses did not want a bar of the online world. Cosmetic brands liked the control they had through the department store channel because that was what they knew.
They needed to be shown how they could also control and deliver a really good customer experience online as well, and Kate did just that!
She says that raising funds for the launch was “impossible”. “There was not any kind of angel investor scene in Melbourne in 1999 – and certainly not for a 21-year-old.
Kate did her research – she was armed with a business plan and she tried a couple of banks and the response was a big fat no.
She borrowed $12,000 from the father of her then boyfriend to get started. That man, who is now Kate’s father in law, obviously saw the potential.
And so Adore Beauty began – the website was built by a company Kate found in a newspaper advertisement and the project cost around $8,000 and took six months.
Kate was surprised how difficult it was to get stock. She phoned all the brands and had many doors slammed in her face.
In the end she found two teeny tiny [brands] that were desperate enough for the cash to take her money.
Kate launched the Adore Beauty website and went to extremes to make customers enjoy the experience. She wrapped each product in tissue paper and bows and dropped a chocolate into the box.
Her theory was that if she made customers feel excited they would have to tell somebody. And it worked……
Back in the early days, Kate had no money to put into marketing her fledgling website but, there were some small e-commerce magazines that were happy to write about her new business. And of course, there was word of mouth from happy customers.
After two years, Kate started paying herself. “That was two very skint years,” she says.
After four years, she rented her first business premises.
After five years, she hired her first employee.
It took six years for the first well-known brand (Clarins) to come on board.
Kate said it was persistence – keeping the conversation going, building up a relationship, constantly demonstrating what she was doing in terms of creating an experience for the consumer and always about building trust.
Estee Lauder finally gave the okay in 2014. Now Adore Beauty has over 195 leading global brands.
Today Adore Beauty is based in Melbourne and the turnover is about $25 million a year, and employs 35 people.
A major milestone was the purchase of 25 per cent of the company by Woolworths in 2015, which boosted Adore Beauty’s sales by 70 per cent thanks to the greater ability to spend on inventory and new hires.
“It made a massive difference,” she says. “Being able to pick the brains of Dan Murphy’s or Big W and people whose experience online is different to ours is always really useful.”
Less than 2 years later early in 2017 Kate arranged to buy back the 25% from Woolworths saying “says her vision “no longer aligned” with the supermarket giant, and the share buyback allows the online beauty company to prepare for more growth and further expansion overseas.”
Adore Beauty has now started selling in China
Kate’s story is inspiring – she identified a real need for her customers based on her experience with them behind the beauty counter, listening to them and being really aware of their needs
Kate never gave up – even when many doors were closed and people said “no”.
She is a remarkable woman and has received many awards and accolades, including Telstra Young Businesswoman of the Year for Victoria in 2010, and the Business Innovation Award for Victoria at the Telstra Business Women’s Awards in 2014.
Kate was inducted into the Australian Businesswomen’s Network Hall of Fame in 2015.
What a remarkable woman and a terrific story
What are our takeaway learnings from Kate Morris and the Adore Beauty story?
Persistence – keeping going when people said “no”
Believing in herself and her business idea
Having really understood her customers fears and discomfort of shopping in store
Being able to see that internet shopping was going to grow
What lessons did you hear? As you create, start and grow your business, what actions will you take from this podcast?
Thanks for listening and if you are thinking about starting your own business I’ve written a book called “So You Want to start a business and you can grab a generous excerpt over at www you….
Remember: Ideas without action…. Well they are just that … ideas
What action are you inspired to take today?
My guess is that you are here because you are curious about what it might be like to start a business?
Perhaps you’ve been wondering if you have what it takes? If your idea will work or even how much it actually costs to build a successful business?
I’ve written a book that can answer pretty much all your questions “So You Want to Start a Business” and you can download the first 20 pages at www.thestartupsteps.com
15 years of experience working with start up businesses are condensed into this book.
It’s your step by step guide to launch your business smarter and faster and I’m so excited to be sharing it with you and can’t wait to hear about your progress.
Are you ready to grab your excerpt? Click here www.thestartupsteps.com
Happy reading! Now here is the transcript of the podcast.