Advice Line with Chieh Huang of Boxed
Digest
This podcast features advice for entrepreneurs from founder Che Wang and host Guy Raz. Che Wang shares his experience with Boxed, an online bulk retailer that went public and later filed for bankruptcy, discussing the contributing factors and his personal reflections. He then introduces his new venture, Pelgo, which offers outplacement services for those affected by AI job displacement. The podcast also includes advice for three callers: Alec of Surfing Cow Skincare, seeking to scale his natural skincare line; Jessica of TailSinch, who offers reusable tail ties for horses and needs help with market expansion; and Eli of McCore Coffee, an organic coffee blended with spices, who needs advice on brewability and distribution. Key advice points include finding contract manufacturers, securing working capital, exploring new sales platforms, and focusing on product innovation and sustainable competitive advantages. Che Wang concludes by emphasizing the importance of embracing the entrepreneurial journey and positively impacting people.
Outlines
Introduction and Che Wang's Journey with Boxed
Guy Raz introduces "The Advice Line," featuring founder Che Wang. Che discusses the rise and fall of his company, Boxed, an online bulk retailer that went public in 2021 and filed for bankruptcy in 2023, sharing personal reflections and lessons learned from the experience.
Challenges and New Ventures: Boxed's Bankruptcy and Pelgo
Che Wang delves into the macroeconomic factors and market conditions that contributed to Boxed's bankruptcy. He then introduces his new company, Pelgo, which provides outplacement services to help individuals displaced by AI find new employment.
Scaling Natural Skincare: Surfing Cow
Alec from California presents his natural skincare brand, Surfing Cow, which uses beef tallow. He seeks advice on scaling his business, particularly regarding production and market reach.
Advice for Surfing Cow: Manufacturing and Brand Growth
Che Wang and Guy Raz advise Alec to find a contract manufacturer, secure working capital, and finalize formulations for Surfing Cow. They also suggest collaborations and potential retail expansion into stores like Whole Foods.
Niche Innovation: TailSinch Equine Products
Jessica Dubin introduces TailSinch, offering reusable tail ties for horses as an alternative to traditional tape. She seeks advice on scaling her niche business and expanding its market presence.
TailSinch: Market Expansion and Financial Considerations
Advice for TailSinch includes listing on platforms like Chewy and Valley Vet for brand awareness, while also cautioning about the implications of thin margins and working capital needs. The discussion highlights innovation opportunities in the equine market.
Health-Infused Coffee: McCore Coffee
Eli Mash presents McCore Coffee, an organic coffee blended with anti-inflammatory spices. He seeks guidance on balancing the health benefits with the brewability of his unique product.
McCore Coffee: Brewability, Distribution, and Sustainable Moats
Che Wang and Guy Raz discuss optimizing McCore Coffee's formula for easier brewing and suggest office distribution and single-serve pouches as growth strategies. They also touch upon creating sustainable competitive advantages through product innovation.
Keywords
Boxed
An online bulk retailer founded by Che Wang, specializing in household essentials. It experienced significant growth, went public, but ultimately filed for bankruptcy.
Pelgo
Che Wang's new venture focused on providing outplacement services to individuals impacted by AI-driven job displacement, offering resume help and retraining.
Beef Tallow Skincare
A natural skincare approach using beef tallow, valued for its skin-similar composition and potential benefits for hydration and repair.
Contract Manufacturer
A third-party producer essential for startups like Surfing Cow to scale production beyond their initial capabilities.
Equine Products
A market segment for horse-related items, noted for potential innovation due to a lack of recent advancements, with TailSinch being an example.
Anti-inflammatory Coffee
Coffee blended with ingredients like turmeric and cinnamon, offering wellness benefits. McCore Coffee is a brand in this niche.
Outplacement Services
Support for laid-off employees to find new jobs. Pelgo aims to make these services accessible in the face of AI-related job changes.
Niche Market
Specialized segments of the market, such as unique equine products or health-focused coffee blends, offering opportunities for targeted businesses.
Q&A
What led to the bankruptcy of Boxed?
Boxed faced macroeconomic challenges, a tough post-COVID e-commerce environment, and a declining stock price, which impacted vendor confidence and led to the sale of its software business and eventual shutdown.
What is the purpose of Che Wang's new company, Pelgo?
Pelgo offers outplacement services to assist individuals who have lost their jobs due to AI, helping them with resumes, retraining, and job searching.
Why is beef tallow used in Surfing Cow's skincare products?
Beef tallow is used because its natural composition closely mimics the skin's barrier, allowing for excellent absorption and potential skin benefits.
What advice was given to Surfing Cow for scaling its business?
The advice included finding a contract manufacturer for production, securing sufficient working capital, and ensuring product formulation consistency.
What are the suggested growth avenues for Jessica's TailSinch business?
Listing on platforms like Chewy and Valley Vet was suggested for increased brand awareness, with a careful consideration of the associated margins and working capital requirements.
How does McCore Coffee address potential brewing issues with its spice blend?
Solutions being explored include adjusting the coffee grind or formulation for larger brews and considering single-serve pouches for convenience and wider trial.
What is Che Wang's core philosophy for entrepreneurs?
He advises entrepreneurs to embrace the entire journey, find enjoyment in problem-solving, and focus on making a positive impact on people, acknowledging both the successes and failures.
Show Notes
Today’s callers: Alec from California wonders if it’s time to bring production for his beef tallow skincare brand out of his kitchen to a co-manufacturer. Then, Jessica from California has a hit horse care product on her hands: is a major pet distributor a dream partnership or a brand-killer? And Eli in Minnesota is curious if he should tweak his signature anti-inflammatory coffee blend for bulk brewing or protect the original taste?
Plus, Chieh reflects on his exit from Boxed and how his latest venture, Pelgo, helps people through similarly significant career transitions.
Thank you to the founders of Surfing Cow, Tail Cinch, and Makor Coffee for being a part of our show.
If you’d like to be featured on a future Advice Line episode—where Guy and former show guests take questions from early-stage founders—leave us a one-minute message that tells us about your business and a specific question you’d like answered. Send a voice memo to hibt@id.wondery.com or call 1-800-433-1298.
And be sure to listen to the founding story of Boxed as told by Chieh on the show in 2021.
This episode was produced by Rommel Wood with music by Ramtin Arablouei. It was edited by John Isabella. Our audio engineer was Robert Rodriguez.
You can follow HIBT on X & Instagram and sign up for Guy's free newsletter at guyraz.com and on Substack.
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