YouSaid · the spoken record

Tim Armstrong

lines on the record: 102
first: 2019-03-23
most recent: 2019-03-23
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Yeah, yeah. Like dozens of TV. Yeah, so people are really starting to experiment off digital. But I would say this also in the digital landscape just for one second. I think there are some fairly Big platforms that people haven't paid close enough attention to or haven't taken the time to look at them. So I think there's a whole bunch of offline stuff that's possible. There's also some digital platforms probably that they could be using.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I think one of the things that we've been talking about is you should go to whatever channel works the best the fastest and get you first party data and a relationship direct relationship with the consumer. So right now it feels like maximizing the digital channels is a really good strategy. Once you've done that, I think a lot of the brands we're seeing are going to TV. What?”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“No worries. You touched a little, it sounds like on moving the marketing mix off of paid social and some of the more digital platforms, obviously with experiential. But when you think about, because it sounds like you're looking for DTC brands to move more traditional and offline, where do you see those dollars going? Do they have scale to invest? And does programmatic TV play a role in enabling that?”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Free opportunity So, people, I think that's what people are. People are really trying to be thoughtful, I think, about what they do now with Amazon, but that's definitely a topic that comes up.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, here's what I hear them say they have to be on Amazon for part of their business, and then part of the business they're being careful about what they're putting on and not putting on. And I think that's very true across the board for most of the people we're talking about. Amazon's too big to ignore, and there's very benefit. Amazon has a great platform. They've done a really good job making commerce really easy. But the question is, if you're away luggage, you know, can you bet your whole farm on that? Sounds like no. I haven't done.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“I don't love everybody. But the thing that's interesting is if you think about it, is those two brands being across the street from the All Birds maniacal differentiation around their products? I think they've done a really good job. I think they have more coming. Amazon, when we hear from DTC companies about the away luggage example, they start to get described as the retail tensions that you used to hear about from the CPG companies with the big traditional retailers about who owns the data. They're launching white label products, those things. So when I sit in those meetings, having spent a lot of time, a lot of the big CPG companies and a lot of the retailers, I hear some of those same things coming, and that might be the natural state where Amazon is doing a really good job. They're scaling their white label solutions with Amazon.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“We're on four stars. So out our window, I see the Amazon flag at the top of it's in our window and right across the street is the Allbirds. And I'm very good friends with the Allbirds founders. I love them and I love the Amazon people too. I love everyone, too.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I think that is another topic that comes up. One, I should just say we have an office in Soho, so we're above the Amazon store and across the street from all birds. So in my chair where I sit, we all sit at one.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Landscape, a lot of companies are really starting to think about that. And part of the reason they're thinking about is when Facebook changed some of the algorithms, people pop their heads up and said, whoa, you know, this has been a great vehicle for me. But if I'm going to be relying on them and they're going to make tweaks, I need to make sure I have other places to advertise. I think Facebook's, by the way, I think another credit to Facebook and Instagram, they've done a really good job of building an industry around DTC abilities for these companies. And I think that's another, I think Mark and team get a lot of credit for a lot of things that they've done. This is another area where they've really helped an industry get off the ground. But now continue to change.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“And Google did it, and Google, when I was there, right before I left Google, we did the panda release that changed all the algorithms on the index. And we also changed the ads quality. And that put a giant ripple effect through all the customers. I see some of that happening now in the social media landscape. And people will adjust. But the biggest advice we tend to spend time with people is you're going to have to adjust to those changes all the time, but you also have to start thinking about where else you can go to get growth. And that's why I said that the CR and the AC instead of just CAC, a lot of people running out saying, oh, my CAC is changing. This are all issues. You have to also be super aggressive about being a scientist on the revenue side. Like where are the other things, places you can go to basically interact with consumers so they'll love your brand, you'll get first party data with them and you'll be in a good experience with them. And I think that's what I see in the detail.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so I think what's happening today, again, this is the experiences only we've had, so this may not apply more broadly, but the changes that have been happening on like, you know, Facebook and Instagram have done a great job, I think, helping these companies get off the ground. I think Facebook and Instagram, just like Google did when I was at Google, tend to change their algorithms of what works and what doesn't work. So I think recently in the last period of time, there's a number of changes. It might be happening because Facebook's innovating their product, it might be because they're using data differently, those things, but those platforms are going to continue to change their structures. And then if you're a DTC company latched onto those every time they change, it's like a wave.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Commerce, but also you could come up with a model where you paid consumers got a payment from companies based on what data they used for the consumer. In our landscape today, everyone, consumers have, companies have consumer data and the consumers aren't savvy about it, but I think all these changes eventually will have consumers getting a bigger benefit.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Got the economics, and again, I've said this probably before my long term, the fact that consumers aren't getting a benefit financially out of advertising other than getting products delivered, I think somebody will innovate a product that gives consumers back money for their data while they're using media properties and while they're using advertising. I think there's a lot of value that can”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Building, innovating, competing. I think that's one. I think two is the data issues are real. I think that when you go back five years ago and talk to general consumers, they didn't really understand how ads were using data and those things. And not that everyone still understands it, but I'd say it's a topic now. Consumers want to know where the data is, how it's getting used. And I think it's also hitting country by country, state by state now. And we haven't been in a recession yet. And when there is a recession and people are more desperate for tax money, for those things in general, you're also going to have people examining how all these companies are making money and all these different things. So you're going to have a combo of privacy, data, and economics drive what I think, I don't know, I'm not going to say it's a breakup of the companies. I think it'll be more focused on the economics and who's”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Just to be real, so there's a few things on advertising right now. One is a lot of people are questioning advertising, almost like after the dot-com bubble where like, oh my God, it doesn't work or there's all these issues with the privacy things, you know, it's a little bit of that. My general sense is it's a good time to go in and invest and innovate in advertising right now because everyone's so fearful. I think very few people share that viewpoint, but I believe the companies that really triple down on advertising now because there's going to be a lot of people getting out of it or trying to get out of it is a good time for that. That's number one. Number two is I think the data”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Lot of pressure on those companies about what they're doing around people's data They dominate everything, possible government breakup of these businesses essentially. How do you look at the space now? Someone who's been in it, and you're away from Google, you're away from the big.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Right now, the data issues around them Your companies will need advertising. I just saw Warby Parker on a national television ad first time I saw one. How do you look at right now the ad space, especially the digital ad space where Jason was saying you're going to do a lot of your advertising on Facebook and Google essentially?”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“I think there's going to be a lot of consolidation in the future. We're not going to be the ones to consolidate them. But I think if you take the beauty category or any category and you dig into all of the DTC brands and micro categories within, if you went to a proctor gambler, Unilever and look at all of their products, and then each one of their products has multiple DTC companies trying to innovate that space. So I think you'll end up seeing the recreation of really large consolidated companies. It may not happen for years, but I think it will happen. And the reason is not because they were cheaper than what happens in the Unilever or Procter Gamble. It's because the product innovation, it's hard having spent so much time out with ATC companies, the amount of product innovation that happens at those companies with direct consumer interactions seems to me to be deeper and faster than it is at most.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“And to what Jason said, You could have a lot of small businesses, like a lot of smaller, do you ever knit them together in some way? Because what he was saying, these could be a lot of 10, 50 million.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“I think there's categories, again, if you go back to Olive in June, there's a lot of beauty. Well, there's a lot of beauty stuff, but nail salons, for instance, what they're doing in nails hasn't really hit the household. Like I live in a household with my son and my wife and two daughters. My daughters and my wife will go get Manny Petty type things in general, but my daughters really like to do it at home. They want to experiment with it. And every place I've been, I've seen that. I think all of in June are going to bring”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“And again, it's going to be for the reasons that these companies all talk to their consumers all the time. The amount of product innovation that's happening is truly tremendous.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“The issue I see in having not been in this industry and then coming into commerce more now, there's two things that stand out to me. One is every major press article around traditional commerce tends to be negative. Not all the time, but there's like so much angst around what's happening in retail overall, which a lot of it's deserved, but there are a lot of interesting things happening in traditional retail that are interesting. The second one is the DTC categories that are super hot, the four or four or five super hot categories, get 90% of the coverage in press. And what we're seeing, because we have people coming into our offices all day doing DTC, there's just an amazing amount of ingenuity, invention, and innovation happening in different categories. So I think, again, it's one of these things you're going to wake up five, seven, ten, 15 years from now and say, wow, this was like a really amazing transformation of how these industries happen.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“One of the concerns in some of the DTC categories are, wow, these companies, they're growing faster than any company in their space or category before them, but they're not necessarily growing their market. And so do they just, you know, are they getting pumped with venture capital and then they're going to hit their ceiling after four or five years? I think we've seen it a little bit in the mattress category, actually. It sounds like you're saying there's just there are many, many more categories.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“So, I think what's going to happen, like people ask us all the time isn't there a DTC ceiling these companies can only get so big? That may be true. I don't think it's true, but what will happen is the aggregate of all these things together. If you have 10,000 DTC brands and they're $10 million or $50 million or $500 million, they may not add up to look like Google and Facebook right now, but when you add up all of them together over time and what's likely to happen with the condensing of the market in the next 10 or 20 years, DTC, I think, is going to end up being a very significant part of the future in the future of commerce.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“The overall trend. I wouldn't comment individually. I'm not an expert enough, but I think if you see more than 10 products in one category and they all look almost identical and there's 10 different venture capitalists going after the exact same space, I'd say that there's probably going to be a few winners there. By the way, I think the same thing is true on the OTT content space. There's a bunch of spaces online now you can look at where people are piling money and where there's probably overinvestments. DTC overall, if you went product by product, category by category, industry by industry and DTC, there's so many companies you've never heard of and seen. Rightly so, the Caspers, the Warby Parkers, those are amazing companies and they get a ton of notoriety. There's also about 10,000 other categories that don't have 10 people. They might have one or two, but they're doing interesting things in them.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“No, I think you hit first of all when you tweeted that, and I think I tweeted back at you about it, which is I think there's categories that are probably overstuffed with DTC brands and investments and those things.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“No, no, no. The investment, by the way, wasn't there, and she said, but when we're investing in the companies, we're investing in, we tell them up front, we're going to be doing a whole bunch of stuff in this space. You don't have to use any of it. So you do whatever you want. We want to invest you because we love you and we want to do your stuff. If our stuff works for you, great. If it doesn't, don't worry about it. So it's other partners.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Not the first person who just brought that up. We go to meetings and we're like, hey, this is what we're doing, and people say. So, no, we're also hiring people who are experts at it. I watched the Fire Festival to both of them documentaries and incredibly entertaining and also a case where there felt like there probably could have been different people on the teams to help think about what the setup and structure was.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Choice for my family and my kids and my friends' kids and other families or people that I know, I'd rather have them spend some of their time offline interacting with brands and services they've probably heard of know it could be digital brands but then having the experiences online and I think the enhancement that will happen from offline to online is as big as”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“In my case, there's money in the rest of the country. And by the way, there's not only money, there's really good relationships that will be built. And I just spent a week in China and Shanghai, and one of the things I spent a bunch of time knew I was studying what's happening in new retail with Alibaba, things like that. The interesting thing of what's happening in China and what you see here is all of the statistics look very similar. And a lot of people are talking about 020, which is online to offline. We're thinking about offline to online. And I think when you look at the data and statistics, having someone have a physical interaction with brands or experiences and what it does to their online or mobile consumption is really important. And the second thing, this is another long-term thing, I think society will continue to change where people are starting to get really smart about the time and energy they're putting online versus they're putting offline.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Well, if a billion consumers show up, we have $8 billion in revenue, we'll be happy. We are going to bring direct to consumer brands to what I would say our first tier consumer markets and second tier commerce markets. And what I mean by that is if you watch what's happening in DTC and you watch what's happening in commerce, everybody's launching a flagship store in New York, San Francisco, Los Angeles, London. There are tremendous consumers in other parts of the country and in the world who would benefit greatly from having direct interactions with those brands.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“The other piece that you've talked about a little bit when you made your announcement about the company was hosting, I think hosting or producing sort of these experiences. And I think you described them as a cross between CES and Coachella.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Media side was all two way relationships, and the more time I started to become really what happened, one of the reasons I thought about DTC is I started to go back to those memories based on meeting a lot of the DTC founders. I'm coaching a few CEOs for DTC founders. And when they started talking to me about it, I started to think about things like GDPR and some of the things that are happening underneath the surface that I think are going to change long term. I thought, wow, this might actually re-engineer the entire way commerce is done and this is a really interesting opportunity. So I don't know. I'd spent almost 10 years at AOL and doing oath in Verizon and all that other stuff. And they were going to integrate it into Verizon. And I'm like, you know what? What's the next thing that I would be interested in doing? And I've been really passionate about it for the last couple years thinking about it, studying it and DTX was an opportunity for us to, I don't know, for me to just 100%.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, do you know what it is? No, it was a record store. They used to sell records and CDs and things like that. But there were a whole bunch of advertisers in that that were in Harvard Square and Cambridge that used to put coupons in the newspaper. And the results were that consumers would basically use the coupons constantly, but they would build up relationships. And at one point, the Newberry Comics people said, we're going to cut our marketing budget and we're stopping advertising in your newspaper. And we knew from dealing with all the people who used our newspaper that were like, wow, they really like your Newberry Comics. That's probably not going to go over well. And they pulled it out, and one week later they came back and we're like, put it back in. And the reality was that the relationships that they had built up with all these consumers mattered a lot. And then if you fast forward when I was at Starwave, Paul Allen's company, you know, we did, I did Snowball, did Google. In the last 20 years, I've only done Google and AOL, really. But all of those experiences, basically, all the stuff I did.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so again, just to go back probably before I met you in 1993 or 1994, I had a newspaper in Boston and the newspaper was I had one and then we ended up buying another one that was in Harvard Square. And that was my first lesson in commerce and how direct to consumer works. We used to have like a coupons page and that and Harvard students used to take like Newberry Comics. And does anyone know what Newberry Comics is asking people earlier? Yes, those are people. Thank you.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“So, one, let me just talk about Verizon and Oath for one quick minute. One is, I think Verizon, again, I've been involved in a while there, but this is my outside perspective having been there when the stuff was starting. I think 5G is going to be revolutionary. And for Verizon, that's really, I think Verizon's, from the outside, just reading what they're talking about now, and it was when I was.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“We have a lot of functioning people on our team that are experts at different areas and we're able to offer them the services. We'll invest. We also offer them services. I say we're also helping a number of other startups without investing just basically being, we like to call ourselves very founder friendly. And I think the terms we do in terms of how we invest, what we invest are very founder aligned. And so I think that's why people are letting us in their deals or coming to see us.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Most of the companies weren't in or oversubscribed. Like they already had, their investors would give them all the money they could. So we've gotten into deals because the following reasons one is the team we've put together at DTX2 people here, David and Olivia are here. I don't know where they are, but they're in the back of their hands. We have hired head of talent, somebody who's like an excellent recruiter who helps the companies recruit. We have marketing Olivia, who's one of the best social media marketers and marketers in the world. David, who runs operations and one of the best operations in data people, we have a retail analyst from Goldman Sachs on the team. So when people come to our offices, I'm putting up the money for all this. The partners we have and the companies we're investing in get to use those resources. And I think they're kind of actually really surprised when they come in to meet with us.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Yes, we're not creating companies. We're getting behind founders. Right. So we're putting in hundreds of thousands to millions of dollars and a couple cases more than that.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“And so we've had a lot of people approach us to put money into the company already, and we've turned everybody down. And the reason is going back to the unit economics was I didn't want to take anyone's outside money until I felt like the money we were using was used correctly. And we may raise money in the future, but as of right now, we're...”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Founders themselves, like we're looking for people who are obsessed with the categories they're in. Everyone talks about that, but there's a big difference between meeting with founders who are in it for the money and in it just for a financial purpose versus the founders that are in it because that's like they can't help themselves. They're so obsessed with what their product is, their category, and they typically have been doing it. Some of the people we've invested in have been doing it since they've been really small children. Like they've been interested in that category. So that's what the threads have.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Distribute it on the street to consumers and the relationship there all in June is an amazing company that's coming out with some really cool products shortly that really is in the kind of beauty industry. The founders ran essentially nail salons and beauty salons in Los Angeles for really super celebrities. So they understood how to deal with customers. Then they decided to go to DTC and try to distribute all over the country with products. And because they had a small business or small businesses that they were very successfully, they were able to take their mentality in that business running the business successfully, learn DTC and translate it, but they have done an amazing job of really thinking through what the unit economics are going to be for doing some of the salon, someone at home, and being able to compare those. And the last thing, as I would just say, is really the”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, they work or they know why they don't work and what they're testing to make them work. But I would say all the companies we've invested in have really, really deep understanding of what a single unit and what I like to say is the net, net, net cost, all of the costs are loaded into that. And I think they have really, real clarity on that. And I'll give you an example of one of the investments we did in Olive in June, which is, and third love is the same. We also invested in Third Love. The founders of Olive in June and the founders of Third Love, they understand to such an incredible extent, basically, the unit economics. If you look at Third Love's example, all the way back to what the manufacturing process cost the phone they develop for their garments at the factory level all the way through what it's costing them to distribute.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“System, he's incredibly thoughtful about the relationship and taking all the friction out, but also about product development and the science behind how he's developing more and more products in the future. So I say that's thread number one. Thread number two is the companies we're investing in know their unit economics at an incredibly deep level. And I think one of the things that's striking is when you...”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“And what similarities do those companies have? And maybe you can tell us a couple of them. Yeah. So all of them have the following characteristics. One is that they're all two-way companies and they have very deeply thought about how deep in the two-way relationship they're going to go. One I would just pull up is Dirty Lemon and the founder of that stack. It's called Dirty Lemon. It's a drink. It's Irish Nova is the corporate name, but Dirty Lemon's the brand name that people know about. And it's a beverage company, a drink company. And one of the things that struck us when we met, when I met with Zach was, you know, Dirty Lemon does transactions on text commerce, and they've gotten pretty well known for it in the commerce industry. But when you listen to Zach, how he talks about the company, how he talks about testing product with consumers, you know, from the front end all the way through the payments.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“It's customer revenue and acquisition cost and having the balance on the equation of those two things. We're going to be testing things in 2019, some experiences and other things that will hopefully bring put the R back in the CAC equation. What we're working on Have another project out in Santa Monica I'm working on which is separate more of an engineering Specific project We'll talk about later With the investment. So you've made, I think you've made about six, is it six already or announced six already? We've announced six, yeah.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“And the last thing was just, I think, from a. From how the relationships between consumers and companies are going to change, this seems like a really important trend And probably there's a really big opportunity here. There may not be, but that's what got me interested in it. And then what we're doing right now is really kind of two simple things. One is we're putting investments directly into DTC companies. So we've done a number of those and we'll do a few more. The second thing we're doing is spending a lot of time. There's a lot of acronyms in commerce. I didn't spend as much time in commerce, but I've learned a lot of them. One that I hear all the time is when we got into this was CAC, customer acquisition cost. And really on the operating side of the business, what we're doing is not CAC, it's CRAC, which is an unfortunate acronym.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“And much deeper than what was happening in kind of the normal channels of product development. And I think that's another thing that over 5, 10, 15, 20 year period, these companies are going to have a real advantage in terms of how they develop products and distribute them. The third thing was just the two-way communication. At DTX, we have a growing team, but one of the things we say is two way or no way. And I think the two-way...”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“So probably about a year and a half ago started spending a lot more time just on where the kind of sort of underlying infrastructure in the world was changing around the internet and mobile and all the things that we talked about for years. And one of the things that stood out to me was there's been a couple times in my career where there's been what is basically a fundamental platform shift. And I felt like direct to consumer was something that was going to be a platform shift, not for probably the obvious reasons, but some of the reasons that were less obvious, but things that I thought were important for the future. One was data management just in terms of like things like GDPR and things like that were happening. And I think the power and data is going to shift back more towards the consumer side over the next 10 or 20 years. Thought that would fuel direct consumer. The second is that the product development cycles that were happening at the direct-to-consumer companies were much faster.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT
“I thought going to the commerce business would not, the red chairs wouldn't show up when Kara had emailed me and said, hey, are you going to be around March 3rd? Could you come out to Las Vegas? And I was like, that's really weird. It's at the same date as Shop Talk. And little did I know that you guys are at Shop Talk. Well, thank you. Good to see you here as well as there.”
2019-03-23 · Decoder with Nilay Patel · Recode Decode: dtx CEO Tim Armstrong and Poshmark CEO Manish Chandra (live at An Evening With Code Commerce) · IDENTIFIED FROM THE TRANSCRIPT