Chewy - Why They're Successful

Summary

This video explores the remarkable success story of Chewy, an online pet retailer, highlighting its growth to a multi-billion dollar company despite initial struggles to secure funding. The video attributes Chewy's success to passionate founders, a promising market, strong customer relationships, efficient infrastructure, and a long-term focus on sales over profits. Viewers are encouraged to share their experiences and thoughts on the brand.

Takeaways

• 😀 The video is sponsored by S.A. New Eim, a service highly recommended by the speaker with a special offer for the audience.
• 🛍️ Chewy is an online retailer specializing in pet food and supplies, known for its personal touches and signature blue boxes.
• 📈 Chewy's growth is impressive, with over $2 billion in annual sales by 2017, attracting the attention of industry leaders like Petco and PetSmart.
• 💰 PetSmart acquired Chewy for $3.35 billion, marking the largest e-commerce acquisition at the time, and Chewy later went public with a valuation of nearly $9 billion.
• 🔑 The success of Chewy is attributed to passionate founders, Ryan Cohen and Michael Day, who pivoted from selling jewelry to pet products based on their passion and market potential.
• 🐾 The pet market is a consistently growing industry, with people spending more on their pets, which has contributed to Chewy's growth.
• 🚀 Chewy faced initial challenges in securing funding due to the failure of Pets.com and competition from Amazon, but eventually succeeded in standing out with strong customer relationships.
• 💬 Chewy's customer service is a key differentiator, offering a 24/7 line with knowledgeable staff and personalized touches like handwritten holiday cards.
• 🏗️ The company has invested heavily in infrastructure, building fulfillment centers to efficiently handle shipping of heavy pet food and supplies.
• 📦 Chewy offers a wide selection of 115,000 products from 3500 brands, catering to pet owners willing to spend on premium products for their pets' health and wellness.
• 🌐 The company's supply chain allows for fast delivery times, with the ability to reach 80% of the US population overnight and almost 100% within two days.
• 🎯 Chewy's long-term focus prioritizes sales and market share over immediate profits, inspired by successful retailers like Amazon and the founder's father's principles.

Q & A

What is the special offer for the audience mentioned in the video?

The special offer is a free 1 GB data plan from S by visiting s.com/compman, choosing the 1 GB data plan, and entering the coupon code 'company man'.

What is Chewy and what does it specialize in?

Chewy is an online retailer specializing in selling food and supplies for pets, known for its personal touches and signature blue boxes.

What were the significant milestones in Chewy's growth?

Chewy surpassed $2 billion in annual sales by 2017, was acquired by PetSmart for $3.35 billion, and later went public with an initial valuation of nearly $9 billion.

Who founded Chewy and what was the initial business idea?

Chewy was founded by Ryan Cohen and Michael Day, who initially planned to sell jewelry but switched to the online pet industry after realizing their passion for pets.

What was the impact of pets.com on Chewy's early funding attempts?

The failure of pets.com made investors nervous, leading to Chewy having a difficult time finding investors initially, but this later turned into a blessing as it left a gap in the online pet market.

How did Chewy manage to draw customers away from Amazon?

Chewy built strong customer relationships through exceptional 24/7 customer service, personalized touches like handwritten holiday cards, and a subscription program, leading to brand loyalty and high retention rates.

What role did Chewy's infrastructure play in its success?

Chewy's efficient supply chain and fulfillment centers allowed them to offer a wide selection of products and fast delivery times, contributing to customer satisfaction.

What is the significance of Chewy's long-term focus in its business strategy?

Chewy prioritized sales, market share, and customer base over immediate profits, inspired by successful retailers like Amazon, aiming to establish a strong position in the market before focusing on profitability.

How did Chewy's market grow over the years?

The pet market has consistently grown, with people in the US spending around $150 billion on their pets, almost three times higher than when Chewy started, allowing Chewy to capture a portion of this growing market.

What was Chewy's first annual profit reported?

Chewy reported its first annual profit in 2022, indicating a positive shift in its financial performance.

What is the sponsor's product, and how does it benefit travelers?

The sponsor's product is an eSIM service that provides constant internet connectivity without the need for local SIM cards or dealing with Wi-Fi issues, simplifying travel and reducing roaming fees.