Since launching on the campus of Miami College in Oxford, Ohio, Mad Rabbit has modified the sport within the tattoo aftercare market. They’re doing so by bringing change to an trade that’s 1000’s of years outdated however one which has been largely proof against innovation till lately. I sat down with Oliver Zak, co-founder of Mad Rabbit, to speak about their journey, community-driven product improvement course of and distinctive retail technique that enables them to take a distinct strategy to model constructing.
Dave Knox: How did you give you the thought for Mad Rabbit
Oliver Zak: My co-founder Selom and I received began in enterprise throughout our sophomore yr in faculty. Selom launched me to the idea of e-commerce, and we spent the subsequent six months exploring the best way to construct a model on-line. We started with dropshipping, which taught us useful classes about constructing a model and differentiating ourselves by way of customer support and ambassador packages. We could not compete on product differentiation, however we discovered how to reach different methods. After a couple of months, we offered that enterprise for $7,000, which was a giant win for us as faculty college students. It confirmed us that we had a possible curiosity in pursuing any such enterprise additional.
Throughout our senior yr, we had been between jobs and in search of a brand new alternative. I had a tattoo appointment, and I used to be pissed off with the suggestions for therapeutic tattoos. Most of them concerned petroleum jelly, which I felt was outdated and unhealthy. I requested my tattoo artist if there have been any pure options, and there weren’t. That is when Selom and I made a decision to create our personal pure tattoo care merchandise.
We ordered substances from Amazon and native apothecaries and commenced experimenting with totally different formulations. Our first product was an all-natural tattoo balm made with seven pure substances. We used it for aftercare, and it labored nicely. By advertising and marketing these merchandise with Fb adverts, and that summer season alone, we had been in a position to generate $300,000 in gross sales. We later in 2021, developed a soothing gel that was extra particular for tattoo therapeutic, which continued to skyrocket the model. This success confirmed us that we had discovered a necessity within the trade and that we had a viable product-market match.
Selom and I discovered quite a bit about constructing a model by way of our dropshipping enterprise. This expertise helped us develop the talents we wanted to create and market our personal pure tattoo care merchandise. We’re proud to supply a safer, more healthy different to conventional tattoo aftercare, and we’re excited to proceed rising our enterprise.
Knox: You launched each of these companies whereas college students at Miami College. What benefits did this offer you to attach together with your target market?
Zak: Miami will not be identified for being a very tattooed college. Nonetheless, it does have a robust entrepreneurial ecosystem that helps and champions startups. Selom and I had been in a position to leverage this ecosystem to launch our pure tattoo care merchandise enterprise. Our lately launched faculty ambassador program focuses on metropolitan areas the place tattoos are extra prevalent. This has helped us attain a wider viewers and construct our model.
One of many sources that helped us get began was a enterprise fraternity that we joined freshman yr. This speaks to the sources accessible on campus for these inquisitive about entrepreneurship. Exterior of my finance diploma, which helped me be taught the language of enterprise, the most important worth add for Miami whereas I used to be there was positively the entrepreneurial group of scholars, college, and alumni from the college of enterprise. This vibrant entrepreneurial group that helped us launch our enterprise. We’re grateful for the sources and assist we obtained from the Farmer College and the bigger group, which helped us flip our concept right into a profitable enterprise.
Knox: What has been the driving power behind the success of Mad Rabbit?
Zak: I by no means thought I would be the tattoo man, however I’ve at all times been good at figuring out areas of alternative. I observed that tattoos had been rising in popularity, regardless that they have been round for 1000’s of years. In 2012, solely 20% of US adults had a tattoo, however now in 2023, it is nearer to 50%. That is a variety of progress in a brief time period. This development is not simply within the US, it is international. Japan and South Korea simply legalized tattooing, and self-expression is being championed by way of tattoos.
The tattoo trade was ripe for disruption. It is traditionally been a cash-only, under-the-table enterprise. There was by no means any formal coaching for tattoo artists, so that you needed to persuade a store to take you below their wing. This made it a fairly slow-to-adopt and unique group. These days, there are tons of sources accessible on-line, and Mad Rabbit is keen about serving to aspiring artists.
Our success at Mad Rabbit got here from addressing a ache level within the trade. Tattoos do not at all times heal nicely, and a giant motive for that’s the advice of utilizing petroleum jelly. It is nice for scrapes and cuts as a result of it helps construct up a scab, which protects towards micro organism and grime. Nevertheless it’s horrible for tattoos as a result of the ink will get caught within the scabs, and once they fall off, your tattoo can look terrible in week two. That is irritating once you’ve spent 1000’s of {dollars} and hours of ache in your tattoo.
We noticed a chance to innovate and provide a greater resolution for tattoo aftercare. Folks resonated with our clear and pure tattoo care merchandise as a result of they labored, and so they addressed an actual downside. We’re proud to supply a safer, more healthy different to conventional tattoo aftercare, and we’re excited to proceed rising our enterprise.
Knox: Why did you resolve go on Shark Tank and what’s been the affect on the enterprise since then?
Zak: I wasn’t the one who utilized to Shark Tank, it was truly my accomplice Selom. I grew up watching the present with my household each Friday since I used to be 13 years outdated. My dad is an entrepreneur, and I at all times knew that I wished to do my very own factor sooner or later. So after we received the decision that Shark Tank was , it was like a childhood dream come true.
Being on Shark Tank gave us entry to an enormous viewers, even when they weren’t essentially our goal buyer. The individuals who watch the present aren’t essentially closely tattooed, however they could have nieces, nephews, or grandkids who’re inquisitive about tattoos. That goes a great distance for gifting through the vacation season and total model consciousness.
It was an incredible expertise, and we discovered quite a bit from the sharks. We had been in a position to safe a cope with Mark Cuban, who has been an incredible accomplice for us, and nonetheless is. He is been very supportive and has helped us navigate the retail panorama. We’re grateful for the chance that Shark Tank gave us, and we’re excited to see the place Mad Rabbit goes from right here.
Knox: Since launching the unique therapeutic balm, you have got expanded throughout a number of merchandise. What drives that product innovation technique in deciding one thing’s the fitting product to launch below Mad Rabbit?
Zak: At Mad Rabbit, we’re proud to say that a variety of our product concepts come from our group. We have turn out to be an umbrella for a bunch of various subcultures who’re keen about carrying their hearts on their sleeves. We have now surfers, cooks, hairstylists, tattoo artists, and extra. All of those individuals are introduced below the Mad Rabbit umbrella, and so they join on issues like sharing tattoos, greatest suggestions and methods.
Most excitingly for us, we get to leverage conversations between the model and our shoppers. Most of our merchandise have truly come from ideation inside our on-line communities. They’ve requested for soaps, lotions, and different merchandise, which is actually thrilling as a result of it extends past the aftercare interval. We’re in a position to concentrate on day by day care and upkeep, which is actually essential for long-term care of tattooed pores and skin.
A number of the CPG giants on the market are formulating for the mass client, and till the variety of US adults with a minimum of one tattoo passes 51%, they do not see it as a market value formulating for. However we’re small and nimble, and we hearken to our prospects. We will ideate and innovate accordingly.
As soon as we’ve got these concepts, we transfer on to the prototyping and product improvement stage. We get samples from our chemist and our producer. After which one in all our closing checks is with Dr. Elliot Love, who’s on our advisory board. He is a tattooed dermatologist and pores and skin most cancers surgeon. He is a robust level of authority that we’re in a position to leverage from a scientific ingredient perspective to place the cherry on prime, if you’ll.
Knox: Your retail technique can be distinctive in that you just promote not solely by way of direct to client but additionally locations like City Outfitters, GNC, and tattoo retailers throughout the nation. What led you to this technique versus chasing a mass retailer initially?
Zak: We positively need to be wherever our prospects need to purchase us, together with mass retailers. However our preliminary technique was direct-to-consumer on-line solely, by way of Shopify, Fb, and Amazon. That is how we reached our million prospects at present.
As soon as we gained some model consciousness, we began launching in “model accretive” retailers, like City Outfitters. A lot of our prospects are below 35 years outdated dwelling in metropolitan areas are passionate younger folks, which is precisely City Outfitters’ buyer base.
We additionally noticed a chance within the well being and wellness trade. Well being followers care about what they put in and on their our bodies, and so they need their tattoos to look good too. That is why GNC noticed an incredible alternative for us to broaden past dietary supplements and into skincare.
The tattoo parlor channel is actually essential for us. It is level of care, billboard area. We promote aftercare merchandise the place they’re wanted and once they’re wanted, and most significantly, we get the artist’s advice on our facet. The tattoo artist is the authority on the best way to heal a tattoo, so profitable over their advice is essential.
With the tattoo trade approaching 51% of US adults having a minimum of one tattoo, the artist is actually the bread and butter for us. We even have the chance to promote in different fragmented retailers like surfers, skate boarders, cooks, hair stylists, and barbers. Tattoos are the frequent hyperlink that may promote throughout numerous channels.
Knox: Together with your current Collection A funding from Lucas Model Fairness, what are the plans for the enterprise as you carry on this funding?
Zak: A part of the funds we raised are for constructing out our boots-on-the-ground gross sales workforce. There are about ~30,000 tattoo parlors within the US, and it is a actually essential area for us to win over. We have at all times been a strictly digital model, so constructing a giant gross sales workforce is a brand new enterprise for us.
We’re additionally trying to up our content material manufacturing. We’re opening a headquarters in Los Angeles this spring/summer season that may function a content-enabled tattoo studio. Our professional workforce artist will likely be tattooing there, capturing 360 content material, and offering product testimonials. We’re additionally giving them an area to file and develop their very own private model, which is an thrilling alternative for us to empower them and supply mutual worth.
Lastly, we’re specializing in extra product improvement. Most of our merchandise at present are consumer-facing, however we’re engaged on improvements that may give the artist a greater tattoo expertise. It will go a great distance in profitable over their advice for aftercare and day by day upkeep.