Distribution Channels

Three stories, the same message.

How Glen Powell ended up with the role of Hangman in Top Gun: Maverick.

How Estée Lauder ended up in Harrods.

David Senra tells the story in Founders #217. First Lauder goes to Harrods. No one talks to her. So, she thinks a little media attention will help. She does some interviews, goes back to Harrods, no one talks to her. She returns to America.

Lauder returns a year later. She asks. ‘No’. More media, she asks again, ““she talks to the same buyer. This is a year later. She was not as quite as hostile, but she says, let me tell you, I have no room here as I told you before, she said, but perhaps I could take a tiny order and put it in with the general toiletries.”

More media, and the customers started to show up.

How Kind Bars ended up in Walmart.

Daniel Lubetzky’s path to starting Kind was long, wandering, and full of two-steps forward one-step back moments. One was the first time Kind got into Walmart. It wasn’t in the bar section. It wasn’t in the health foods. It was in the candy bar section.

This was disappointing but a blessing in disguise. Kind lacked the organizational structure required for serving large customers. The bars took a long time to take off – which was good. Once they did Walmart and Kind ended their partnership. It was too much too soon – but a lesson in what the company needed next.


Everyone is a genius in a bull market, but is it easier to choose bull markets than be a genius?

The economics of iPhone cases

I tried, and failed, to get a photo of this issue.

For Christmas my youngest daughter got an iPhone. It was BOGO when you add a line, so I got a new iPhone too. For simplicity sake I ordered us Apple cases with the phones. And my case sucks. The silicon marigold iPhone 13 case is the worst I’ve ever owned.

But why?

Apple products are good. The computer I’m typing this on is an Apple product. If it’s read on a phone odds are one-in-three it’s an iPhone. Apple is one of the most valuable companies in the world – and has been for many years. What’s going on?

Well first, value is relative. If something is bad, it’s bad relative to what? My previous Smartish and Speck ($12 & $8 respectively) cases were more durable and provided prolonged protection on earlier inferior designed products. I think Apple cases are bad because they lack competition.

Apple, like Aldi, competes in a special way. Both are A+ companies and both compete outside the store. The goal is to get people inside, and if customers come in, they’ve got them. So Apple doesn’t convince me to buy the silicon marigold case rather than the leather case. No, Apple just wants me to buy Apple.

Aldi cereal is a visual example of this model, the boxes are bland (here in B&W) because they don’t have to grab the customer’s attention in the store. Contrast this with Walmart or Amazon where the competition is both inside and outside.

Smartish or Speck compete in the bedlam of Amazon. These cases have to throw sharp elbows in the arena of good, fast, and cheap. I found the Smartish case via a Wirecutter review, so it has to stand out as well. Ditto for Speck.

That said, I don’t know if the Apple case should even be good. Apple’s advantage is packaged hardware and software, not being best in class on accessories. Apple doesn’t sell a great phone case, instead the JTBD is ease and brand.