Branding Lessons from Parachute’s Founder, Ariel Kaye
Who Gives a Sheet?
As entrepreneurs, we often dive headfirst into building our dreams, neglecting the crucial step of understanding our potential customers. The origin story of Parachute, a premium home goods brand, and its founder, Ariel Kaye, is a teachable moment.
Launched in 2014 as a direct-to-consumer brand, Parachute initially focused on selling premium bedding. Kaye wanted to work with startups as a first-time founder, but she wasn’t confident she had what it takes to be the founder and lead the charge. An advisor with startup experience told her you have what it takes to be a founder. Go for it!
And she listened to his encouragement.
Parachute’s revenue grew 58% year-over-year to about $150 million in 2021. She raised about 46 million dollars. The company has experienced accelerated growth over the last few years, prompting a hiring spree and rapid growth.
I’ll share three key marketing and branding learnings from observing the founder’s journey. Ariel took a leap of faith, but her plans were anchored in keen insights and observations.
From Frustration to Flax:
Kaye, a self-proclaimed “design enthusiast,” was frustrated with the bedding market. The options were either low-quality, affordable, or luxurious but with hefty price tags. This gap ignited a spark – a chance to bridge the divide with accessible, high-quality bedding. However, before plunging in, Kaye embarked on a crucial step: customer research.
Kaye had some key insights. 40% of consumers don’t use a top sheet. Ads and photos on websites rarely show people in bed – just the bed. She also recognized that an “unmade bed” or California relaxed style was not prevalent in competition. And, instead of a military-style bed being made, her sheets would show wrinkles and imperfections, exemplifying the casual life.
Lesson #1: Listen Deeply, Iterate Fearlessly
Kaye conducted extensive customer interviews, uncovering a goldmine of insights. One revelation? 40% of Americans ditch the top sheet. So, instead of the traditional sheet set, Parachute offered individual pieces, allowing for customization and eliminating unnecessary costs. This customer-centric approach resonated with buyers and challenged industry norms, setting Parachute apart.
Beyond Thread Count: Another discovery: Thread count, a common bedding marketing tactic, confuses most consumers. Recognizing this, Kaye made a bold decision – de-emphasize it. Parachute focused on fabric quality, craftsmanship, and the end-user experience, highlighting the feel and benefits of their products rather than relying on an arbitrary number.
Lesson #2: Know Your Value Proposition, Ditch the Jargon
Don’t get caught up in industry jargon that alienates your audience. Focus on communicating your product’s actual value in clear, concise language. By prioritizing user experience and ditching confusing metrics, Parachute built trust and established its brand as one that prioritized quality over empty promises.
From Humble Beginnings to Soaring Success: Launched in 2014, Parachute started online, catering to a niche market. Ariel realized there wasn’t an established luxury brand in the U.S. in bedding. Her vision extended beyond e-commerce. She recognized the power of physical experiences and opened brick-and-mortar stores, creating immersive spaces where customers could touch, feel, and connect with the brand. This omnichannel approach fueled growth, with Parachute expanding its product range to towels, robes, and home decor, all maintaining the core values of quality and sustainability.
She recognized that the typical bedding buying experience was miserable – particularly in department stores where you can never find someone with product knowledge to guide your purchase.
Lesson #3: Don’t Be Afraid to Evolve
Starting small doesn’t mean staying small. As your business grows, be prepared to adapt and expand, but never lose sight of your core values. Parachute’s journey from online-only to a multi-channel brand with a diversified product line demonstrates the power of strategic evolution while staying true to the brand’s identity.
Today, Parachute boasts over 200 employees, multiple physical stores, and a thriving online presence. Its success story exemplifies the power of deep customer understanding, a clear value proposition, and fearless evolution. As you embark on your entrepreneurial journey, remember these three marketing lessons.
Three Key Marketing Lessons
Listen: Conduct thorough customer research to understand their needs and pain points.
Communicate: Ditch industry jargon and focus on clearly communicating the value you offer.
Evolve: Don’t be afraid to adapt and expand while staying true to your core values.
Following these lessons from Parachute’s founder, you can shed the unnecessary and build a brand that resonates deeply with your audience, paving the way for a successful and sustainable venture.
Go ahead and leap into becoming an entrepreneur.
Connect with Jeff at The Marketing Sage Consultancy. Interested in setting up a call with me? Use my calendly to schedule a time to talk. The call is free, and we can discuss your brand and marketing needs. If you want to learn more about my new offering, The Trusted Advisor Board, you can click here to learn the details. Feel free to email me at jeffslater@themarketing sage.com or text 919 720 0995. Thanks for your interest in working with The Marketing Sage Consultancy.
Photo by Sienna Wall on Unsplash
