The most important part of building a sustainable business is having a great product, according to ettitude founder and chief Phoebe Yu.
Revenue for the Australian-founded sustainable homewares business has grown 16 times over the past three years since launching in the US, Yu says.
Ettitude spent years refining and testing its textile to create an evolved and improved bamboo fabric. The fabric is produced in a closed loop system that recycles and reuses water.
The company hired Clean Agency, an American sustainability consulting firm, to compare the carbon and water footprint of ettitude’s organic bamboo fabric with cotton. It found an ettitude sheet set saves 52% in greenhouse gas emissions and contributes up to 500 times less water depletion.
Bamboo bedding. Source: ettitude
But its environmental credentials don’t end there. Ettitude is on the way to becoming a certified BCorp; has eliminated virgin plastic from packaging; donates 1% of its sales to environmental not-for-profits; is committed to becoming Carbon Neutral Certified; and is investigating textile recycling.
Yu says consumers are becoming more conscious about sustainability, but the product remains key, and entrepreneurs looking to build businesses focused on sustainability should remember that.
“First and foremost they pay for a product that works better,” Yu says.
“Sustainability is an add on, it is good because it makes them more willing to take out their wallet. But the product has to work, so you’ve got to focus on that.
“I’m more confident (our product) is going to sell, because functionally, it’s just a better product. It’s something consumers want because the fabric is so soft.”
That’s not to say there aren’t benefits when you get the product right and you’ve thought about sustainability — across the entire lifecycle of the product — from the moment you started designing it. Yu says customers who buy sustainable products are loyal to the brands they trust. Ettitude has customers who bought from the company six years ago, around the time it was founded, and are still customers today.
“You win the customer through a working product, but then you can make them a loyal customer with your sustainability efforts,” Yu says.
Some of those long-time customers still ask to speak with Yu when writing customer support. And even though Yu now has a team of around 30 employees, she still answers a support ticket or two.
“It’s good to look at those tickets to get customer feedback, I think that’s the beauty of the direct-to-consumer model — you’re so close to your customers,” Yu says with a laugh.
While those customers might be loyal once you’ve won their trust, they’re also quite sceptical, Yu says. As a result, sustainable businesses have to find ways to educate consumers on their sustainability efforts, and prove that they’re not hoodwinking people with greenwashing. Ettitude tackles this cynicism with “radical transparency”, Yu says.
“You can’t just talk the talk, you need to show the consumer what you’re actually doing to be sustainable,” she says.
One of the ettitude’s highest converting content marketing pieces is a lengthy read breaking down the different types of bamboo sheets on the market, and how Ettitude’s sheets are different.
“When I wrote that my marketing team were like ‘Phoebe! You’re writing an essay, that’s so long! Who’s going to read it?’ But consumers want to know more. They want to get educated,” Yu laughs.
The Ettitude team is constantly looking at ways to minimise environmental harm, and that hasn’t changed since the business was founded.
Yu, who spent 15-years producing homewares for large US retailers, found a supplier with the right technology to help create Ettitude’s bamboo fabric. With a lot of trial and error — and while freelancing to pay the bills — Yu finally had the right product.
She says businesses looking to develop sustainable products need to be able to sell their vision to suppliers. These suppliers need to believe you can sell the product for them to take on the risk of producing it.
“I’m lucky, because I was in that industry, I knew a lot of people, so there was trust there,” Yu says.
“It’s hard for a supplier or vendor because they don’t know if they’re going to be able to sell it. So it’s kind of risky. They have to trust your ability to bring the product to market and sell it.”
Phoebe Yu. Source: supplied
Last year, Ettitude raised $2.5 million, which will be used to continue to grow the company.
While sustainable businesses are appealing to impact investors, ultimately, Yu says, one attribute looms large.
“Fundamentally, it’s got to be a good business. Grow fast and turn a profit.”
Yu says the “key” to Ettitude’s American growth has been its collaborations with other businesses, specifically subscription businesses focusing on sustainable products.
Ettitude actively seeks out partnerships with other businesses to raise awareness of its products in the market, both overseas and in Australia.
“We’ve collaborated with brands way bigger than us — it’s been very key to our growth,” Yu says.
Notably, it struck a deal with US-based Causebox, an ethical product subscription service with a large and loyal following.
The company has dedicated an entire section of its website to collaboration opportunities, actively encouraging businesses to get in touch with them.
This one is unavoidable, Yu says, particularly when also running a company in Australia at the same time.
“Prepare for long hours,” Yu says.
Alongside this, having capable and trustworthy team members is a must, particularly because founders can’t be in two places at once.
Yu operated her American arm remotely for several months before hiring local managers.
Social media is global, which helps raise a profile, but the American e-commerce market is much more sophisticated and competitive than in Australia, which necessitates a market-leading offer.
“It’s so competitive here that you absolutely need things like free shipping,” Yu says.
Ettitude works through a 3PLwarehouse in California and Yu says it’s much easier to deal with day-to-day problems and ensure the business is running smoothly if she’s based over there.
Kye began his career at a Fairfax daily on the North-West Coast of Tasmania. He has since taken his belongings, and keen interest in technology, to Melbourne. He has a bachelor of Arts majoring in Political Science from the University of Tasmania and a Graduate Diploma in Journalism from RMIT University.
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