24. The Launch Mirage: The Seduction, The Carnage, and What Nobody Posts About

You've seen it.

The Ulta launch party. The Target end cap. The Costco pallet photo.

And something inside you lit up.

That's the seduction working exactly as intended.

But here's what nobody in your founder community is going to say:

The launch moment is not the win. It's the starting gun.

Jim Sinegal—founder of Costco—once called retail "war without the blood."

He's not wrong.

I spent 15 years as a Fortune 50 buyer managing a $4B portfolio. And I'm breaking down exactly what happens after the launch reel ends — the promotional cycles, the retail media spend, the rep group reality, and the details that blindside even the most prepared founders.

Because the brands that win long-term in retail didn't just get there.

They architected their way there.

Ready to know if your brand is actually ready—not just excited?

Book a Viability Call. 15 minutes and we’ll see!

Resources & Links
 🎓 Ready to grow your retail business? Check out Kristin’s freebie → Get Retail Ready Course

If this episode made you think "finally, someone who gets it"—you def need my Retailish newsletter in your life.

 📲 Hang out with Kristin on Instagram → @kristinaengen

Transcript

SPEAKER_00 0:04

Welcome to the Retail Edit, where I'm giving you the real story on what actually happens when your brand makes its move into retail. I'm Kristen Engen, and I spent 15 years as a top Fortune 50 buyer managing a$4 billion portfolio with the biggest brands in the world, where I was the gatekeeper deciding which brand made it to the shelf and which didn't. Each week, we're discussing DTC strategies that actually deliver, because they're the same strategies I use with brands landing retail deals today. We talk about what buyers actually care about, why your brand story alone isn't working for you, and how to position your brand as a revenue generator to top retail buyers. So whether you're building something exceptional and know your product is ready for retail, or you're simply done with the surface level retail advice that is leading you nowhere fast, welcome. This is the space for you. Hey, welcome back to the retail edit. I'm Kristen. If we haven't met before, and consider me your DTC to retail translator for today. And today we are talking about something that I see playing out every single day out here in Founder World. And honestly, it needs its own episode. So today we are talking about the launch mirage and more specifically the seduction that leads you straight into it. And so here's what I mean. Every single one of us has done this, by the way. Like you're scrolling, you see a founder that you love, or a product or a brand you've been following since they were like DTC, early DTC. And suddenly, like, there it is. The Ulta Launch Party, the Target end cap reveal, the full-blown Costco palette photo, the Walmart case display, or even like a Home Depot quarter palette, right? And that thing is beautiful. And listen, I am completely not immune to this. Like, not even a little. Like, for example, I am a huge Bloom FX fan. Like, love the brand, love the story, love the product. And the second I saw that they were launching an Ulta, I literally ran to Ulta, like that day. And I asked the girl who was stalking the shelves where to find it because I could not find it anywhere. And so she ended up going to the back and brought out the actual box for me. And I shopped right out of that box and I walked out with three products. And that right there, my friends, is literal seduction working exactly as intended. And as a consumer, absolutely be excited, run to the store, buy all three products. But here's where I put my other hat on that I literally wear 95% of the time. Because when I see that same launch moment as someone who spent 15 years as a Fortune 50 buyer managing a$4 billion portfolio, my first thought isn't, oh my goodness, how exciting. My first thought is, hmm, Bloom Effect's problems are literally just beginning. And I say that with so much love. Because, and wait, it gets better. Jim Senegal, the founder of Costco, once described retail as war without the blood. And I promise you, he is not wrong. So let's talk about what actually happens after that launch moment, after the party, the founder content, the big email blast, the SMS messages, after everyone in your community loses their mind with excitement. This is what I call the carnage. Because the second your product hits that shelf, the clock starts. And I mean literally, because now that product has to sell and not just sit there look beautiful, sell. Which means you are now joining every single one of their promotional cycles in some way, shape, or form. And if you think you can opt out, I mean you can, but you can't really. Not if you want to be a long-term partner. So you are now driving your own promotions on top of theirs. You are now responsible for making sure your product is never just sitting there collecting dust because slow-moving product, that is 100% how you lose your spot. And then there's the paid retail media piece, the part that didn't make the launch real. With Ulta, for example, we're talking Critio. So now you're investing heavily in their retail media network on top of everything else, on top of your own marketing, on top of your own DTC, on top of your own team. Okay, are you seeing how this adds up? But then because retail always needs something new, something exciting, something fresh, you are now in the cycle of what's next? New launches, new displays, new fabrications, working with vendors to make sure your presence on that shelf stays relevant and premium. And the brands that struggle the most in retail, it's not always because their product isn't good. And matter of fact, I'd probably argue that their product is even better, more effective. No, it's actually because they walked in without brand equity, without a consumer base ready to show up for them, and without a culture that drives excitement, and without the operational capacity to sustain what retail actually demands. And for example, another part that is left out of that founder's journey to target email are things like the MSDS sheets. Because every retailer requires them. These are the manufacture safety data sheets. And I cannot tell you how many times I've watched a brand find out in the absolute 11th hour that their product requires these. Usually that's when they're coming to me because they had no idea because nobody told them, or they were working with a rep group who just had this assumption that you should just know this, which is a lot of rep groups, by the way. Which, okay, we might as well jump into it. There is a whole rep group conversation to be had because this is also where I see brands getting really tripped up. With a lot of bigger sales representation firms, you're not the priority. You are a name on a page. Maybe you were hitting quota that month. And I'm not saying that to be harsh. I'm saying that because that is a reality and you deserve to know it. Pareto's principle is very much alive in retail. 20% of the product is doing 80% of the sales. And those bigger firms, they are lasered in and focused on that 20%. They're big names, they're big budgets, and they're big brands. So you, as the newer emerging brand, you're not where their energy is going. And so if you are a newer emerging brand or a newer to retail brand, or maybe a brand that isn't coming in with a Haley Bieber level or Selena Gomez level of brand equity, I would recommend going with more of a boutique rep group. And yes, they might have a percentage point more, be a little bit more expensive, but here's what you get. You are important to them. They are in it with you. A lot of these boutique groups are run by ex-buyers, people like me, frankly. They understand how buyers think. They understand the systems, they have the relationships, and they're not going to sign you and go silent because you're not just another name on their roster. You are their roster. And listen, I've seen this play out firsthand. I had a client who was locked into a contract with a larger firm. Nothing was moving. I came in, identified a relationship we could leverage and saw a real opportunity, and we were locked in. Contracts can be broken, by the way, and there is an ethical way to do it, but it costs time, it costs energy, it costs money and momentum. And so here's what I want you to take away from this episode. Retail is not this magic vending machine. It's not a get on shelf and watch the money roll in. It's what I like to describe as a proof and positioning at the right time to the right person and then doing the work to stay there. Getting on the shelf is not the finish line. It's literally the starting gun. And I want to be really super clear about something. I am not telling you to not want this. I am not telling you to shrink your vision. I am not telling you to take bloom effects off your vision board, keep it there, seriously. What I am telling you is go in with your eyes wide open. Because the brands that win retail long term, they didn't just get there. They architected their way in and they were ready for what came next. And so if this episode feels slightly exposing, first of all, awesome. I'm not sorry about that. That actually is the goal. Because if you're building at the level where retail is a real conversation, you don't need me to soften the truth. You need me to name it for you. And if you're at the point where you're evaluating your retail path and you want to know whether your brand is actually ready, not just excited, but ready, then let's talk. You can book a viability call. It's 15 minutes. We'll assess your revenue, your margin, your operational maturity, and your strategic alignment. And if it makes sense for us to continue to talk and work with each other, then we totally can have that conversation. And if it doesn't, I will point you in the right direction. And either way, you will know. Either way, you will know. And you won't spend the next six months trying to figure this out the expensive way. So I've got the link to that call in the show notes. Go ahead and check it out below. And all right, go make margin, not excuses. And I will see you next week. Oh my gosh, you made it to the end. I'm so freaking proud of you. Screenshot this, tag me, let's pretend Instagram engagement is still a thing. And until next time, make margin, not excuses. And remember, retail doesn't need to be complicated, but it does require strategy. Okay, I'll see you next time.