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Why has The Honest Company been so successful?

First, you have to take in account the influence of Jessica Alba as one of the co-founders of the company, acting like CBO or Chief Brand Officer of the company.Just take a moment to see the large quantity of followers that Jessica has today in Social Media platforms:Facebook: 5 162 375 followersInstagram: 11.7 Million followersTwitter: 9.64 Million followersTaking just 10% of that audience (approximately 2.650.000 million), she could create a business and sell almost anything.But, she used her influence in another great way, co-founding a company which makes products she believes and uses everyday, made from natural products.She didn’t start a company, she started a new “movement”.What Jessica and her crew have made in a so short time (the company was founded in 2012) is for admiration, and it could be an excellent use-case for MBAs schools like HBS and Stanford Business School, which teach to their students using real cases of great business strategies.But, let’s take a deep look to The Honest Company.Good Design is Good BusinessThe company has invested heavily in the design of its products, and of its website (which I love), to attract more users with a serious visual appealing.If you have any doubt of that, just read the post about the work they did with the photographer Jin Woo for the new Clean Collection of the company:You can watch the interview that Jessica did with Jin at Facebook.Everything is part of Brand BuildingThe wallpapers used for the images of the bottles can be downloaded from the website.Smart use of capitalThe Honest Company has raised $297 Million USD until this date (Nov 20th, 2017), for a valuation around $860 Million USD according to PitchBook.With this capital, they have recruited amazing executives and have created key partnerships with well known retailers in U.S:Besides, they have created a very interesting business model based on subscriptions called Bundles, which are adjusted in a perfect way depending of the needs of the users.Key investments in technologyI have to say it: as a Web Performance fanatic, one of the primary things I always do when I’m researching a company is to test this. I did some tests to the main website of the company, and I have to say it: the website loads fast in Mobile devices and PCs, but they should work more on this:This is super important nowadays, because a delay of 2 seconds in the web page, could cause that million of USD could not be collected.Let’s analyze the case of The Honest Company with a simple analysis.According to Alexa, the website is the 14.316th more popular in the United States, with an approximate numbers of 60K visits every month, which results in approximately 2K users per day.Let’s make some calculations with these estimates: 2K daily users, with a purchase time frame of approximately 16 hours in the day, results in 125 users per hour or 2 users per minute.Let’s suppose that the ARPU of The Honest Company is $49 USD, and they have a convertion rate of 5%: from 125 users per hour, there are 6 users who buy something or subscribe to a Bundles. This could be $294 USD per hour if the users decides to buy something, or adding 6 new subscriptions every hour.Now, the company page loads in approximately 2.48 seconds, which is an amazing time, but just imagine if they could load the page in just 2.0 seconds, the direct impact in revenue could be dramatic.HTTPS EverywhereNext step here? Migrate to HTTP/2They have invested in tools like Optimizely and New Relic to gather analytics and make decisions to improve user experience.Incredible marketing strategyJessica and The Honest Company use several strategies to reach to more users, using a combinations of promotions in Social media platforms, putting a big emphasis in Facebook (they use heavily Facebook Live and videos) and Instagram (where you can buy anything in the feed with the help of Have2Haveit).They use an influencer program called Honest Brand Ambassador with recognized people in U.S like Kerri Walsh Jennings.Just watch of the videos at Facebook and you will see why I’m saying this.

How is the digital divide in Mexico?

I find this question particularly interesting because I ran government-funded computer learning center a couple of years ago, called “Punto Mexico Conectado.” The plan behind the PMC called for 32 centers across the country, 1 in each state. In these centers, people ages 8 and up take basic computer lessons, basic Robotics lessons, basic English lessons and short courses on innovation and enterpreunership. The next part of the plan was to build more centers, especially in rural areas, but apparently the program rapidly ran out of funds and resources so the second phase simply stalled.Since our job basically consisted of addressing the digital divide in Mexico, we had updated stats on the subject. Over 90% of the Mexican population owned a cell phone, aorund 45% had a desktop, 35% had a laptop, and some 20% owned a tablet-type device. When it came down to proficiency, the digital divide is highly notorious: most people could work their away around social networks, but less than 20% were proficient in the proper use of office software suites, 78% of the population had access to the Internet but they mostly used it for a) social networks, b) games, and c)porn, only around 15% of the users actually learned from the Internet.At PMC Monterrey, we were highly successful in appealing to people ages 50 and up for taking our courses. Since they could take the courses as many times as they wished or needed, some 80% of these senior people ended up acquiring a solid knowledge on basic computing for browsing the Internet efficiently and skills for the use of office software in small business.The initial success of this project in closing the digital gap lost momentum because of a number of circumstances:Additional centers have not been built yetThe project ran out of fundsMost Mexicans still rely on more traditional media, like radio and TV, to get relevant information, and PMC has failed to advertise its services, free of charge, in the mainstream (somone ought to be hanged very high for that blatant lack of vision)The academic coordination of courses is in the hands of people lacking the proper expertise in the field, plus they seem to be blind to the regional differences among the country so they stubblornly stick to standardization when is not recommendableThe chain of command within the project is chaotic, and many decisions are made in a board of coordinators in such a way that they harm the efficiency of the PMC centersEven though the program is endorsed by the Depatment of Communications and Tansports of Mexico, in actuality, Punto Mexicop Conectado is virtually unknown to nearly all other governtment departments, offices and the like. The latter makes strategic alliances very difficult, and sometimes it felt like were conducting “black-ops”: we had missions to accomplish, but if something went wrong, the government would deny any knowledge of our existence

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