Jessica Alba, a mother who was in search of nontoxic products for her babies, in the quest of an ideal product that is indubitably safe, effective, eco-friendly and affordable. The idea to safeguard children from toxic risks came to Alba in 2008. Cynics tried to convince her to become the face for a new perfume or do something else but not business. They didn’t support her idea in the beginning and tried to persuade her not to start any business. However, Jessica Alba’s possessed entrepreneurial spirit in her motivated her to take the step and she founded ‘The Honest Company’. The brand has estimated revenue of more than $150 million in 2014. The company now has a stated value of $1 billion and is heading towards an Initial Public Offering (IPO).
At the initial time, Jessica Alba faced a lot of problems like all other entrepreneurs face, the need for more funds, better partners, a really good team with passion and integrity to alive the idea into a successful entity.
Jessica Alba has co-founded The Honest Company in the year 2011 with Brian Lee - Chief Executive Officer (CEO), Sean Kane - Chief Operating Officer (COO) and Christopher Gavigan – Chief Product Officer (CPO), with the mission to provide exclusive product line that is non-toxic for babies and homes.
In an interview to Inc.com, Jessica Alba said, “I founded The Honest Company on this idea: Everything that touches you and your family--everything in your home--needs to be nontoxic, needs to be effective and beautiful to look at, and needs to be affordable.”
She further said that she wanted an ecommerce model. She succeeded in achieving an ecommerce goal as currently Honest Company is able to generate 80 percent of sales revenues from Honest.com website. She understands the needs of all parents that is diapers and wipes should be a mix of cleaning and personal care that give a toxic free environment at home for kids to grow up. According to CEO Brian Lee, “For better business growth and sustainability of our production we will go for vertical integration.”
Currently, the product line includes: A wide range of Diapers, training pants, wipes and baby care like Healing Balm, Diaper Rash Cream, Organic Baby Powder and Soothing Bottom Wash. They also offer gifts and accessories for babies like Diaper Caddy, Baby Arrival Gift Set, guide for parents like Healthy Child Healthy World, Honest Carryall Satchel (A bag with six exterior pockets) and others.
For Feeding, they have products like Lactation Plus, Baby DHA, Organic Nipple Balm and Silicon Bottles, other formula feeding and combination feeding products. Bath & Body care includes Deodorant, Sea Salt + Sugar Body Scrub, Aromatic Soy Candle, Organic Shave Oil, Hand Sanitizer Spray, soaps, sun cares and oral washes. Honest Company also offers a wide range of cleaners, laundry, dish care products and a lot more.
He further said that its company’s mission and vision that kept them aligned with their core purpose. He spread light on Jessica’s courage, “Honest started with Jessica’s passion for creating a non-toxic home and we’re always going to stay true to that.” The success of Honest Company is totally based on the desire to go beyond with the team of professionals that are working hard and are integral with the business.
To make the productivity strong and to make the product publicly available, they will definitely go for strengthening their supply chain management, Jessica Alba told Yahoo in an interview. On the whole, the company is seeking for funds therefore, they are going for an IPO soon. It would be great for consumers who can directly contact Honest Company for monthly subscriptions, they can select five to six products pay minute shipping cost and get the products at their doorsteps. Isn’t it great? Yes, it is, by providing the convenience at affordable price for protecting their children from harmful chemicals is the motive of Honest Company.
The enterprise sales data demonstrates the very strong position of the company, the proposed revenue for 2014 are likely to reach $150 million and Honest has seek funding of $122 million making it a company nearly valued at $1 billion.
The question that most of the people asked is how did Alba achieve such success so quickly? The answer is simple; she is a true entrepreneur and a true leader, she knows her way and is aware of the fact that how to direct her team. Her idea is unique and is the basic topic of concern for all the mothers who are in search of product that is not dangerous to their kids. Parents want a secure and safe place protected from unhealthy means or toxic products that are risky for their babies’ health. As the kids are too sensitive, they need care like their mothers do.
The idea is unique, but it is Jessica Alba’s courage and motivation to take the step. She wanted Honest Company to be a whole lifestyle brand.
Among all the Honest products, diapers is the cash cow. They do shipment of more than 10,000 products daily out of which almost fifty percent sales are of diapers, which are fashionably patterned, simple and clean. The company also has a complete range of cleaning and personal care products. To let the customers try it first, Honest offers free trials for this customers for which they just have to pay $6 shipping cost; this is the major point that turned customers into their permanent buyers.
Jessica Alba supports charity and actively participates in charities like Safer Chemicals Healthy Families, Project HOME, ONE, Habitat for Humanity, and a lot more. Other than that, Honest Company engaged in good work for society like employees volunteer for Los Angeles beach area cleanup and donate baby supplies to local diaper banks. Even, Jessica Alba invited 100 teenage girls at Honest Headquarter for an open house and offered internships to 20 of them.
Honest is famous because of its brand quality, unique style and with the motive to protect from toxic risks. They have succeeded in delivering their promise, products with superior quality and commitment. The products have increasing demand and to cater that, they need huge investment so that they don’t go out of stock. There are multiple challenges to come and the company has to strategically plan proactively to combat them.
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