The secrets to Posh Peanut’s multimillion-dollar success
Inside the rise of Posh Peanut, which began as a one-woman start-up and quickly grew into a cult children’s brand loved by parents worldwide.
Fiona Sahakian has grown Posh Peanut into a success. Here’s how:
- Lessons in e-commerce.
Despite knowing little about e-commerce, Sahakian taught herself the basics – and quickly made sales.
- A unique selling point.
Posh Peanut pieces are soft, affordable and feature bold prints.
- Using Facebook as a focus group.
Early on, Sahakian launched a Facebook group, which quickly became a competitive advantage.
Fiona Sahakian knows a thing or two about doing business in uncertain times. Not only is her children’s brand Posh Peanut thriving despite the current gloomy outlook, but it was in the midst of another financial downturn – the recession of 2008 – that she launched Posh Peanut in the first place.
Back then, Sahakian was a successful Beverly Hills hairstylist. But when the recession hit, and customers pulled back on luxuries like haircuts, Sahakian – a keen sewer – started making and selling handmade children’s items on Etsy — dresses, coveralls, pajamas, the like.
At the time, Sahakian knew very little about e-commerce or digital marketing. “[But] I [was] like ok, let me try it. We just bought a house, I needed to pay my mortgage.”
Within 18 months, not only had she made her mortgage repayments, but after teaching herself SEO and digital marketing, Sahakian had brought in a million dollars. There was just one problem: “I was a one woman show. I quickly realized you can’t scale a handmade business, it’s extremely hard,” she says.
The 2010 and 2013 births of her children proved to be the inspiration Sahakian needed to launch Posh Peanut, a line of family lifestyle items.
“When I had my daughter there was nothing on the market like what we made which was really bold, really comfortable, really soft fabrics and prints to really shine and to really make you feel good while you’re in the hospital, to match your kid back,” Sahakian explains.
"I quickly realized you can’t scale a handmade business."
Today, Posh Peanut has transformed from its beginnings as a one-woman show, and the brand employs 54 people in its Los Angeles headquarters and 50 more in its distribution center. Another 20 staff members are based overseas. The line is currently sold in Saks, Bloomingdale’s, Nordstrom and Hudson’s Bay as well as hundreds of boutiques across the US.
Finding a unique selling point
Sahakian is very focused on maintaining the qualities that distinguish Posh Peanut from competitors. “I always say I make the softest clothes in the world. We’re really known for our bold sophisticated prints,” she says. Florals, kitsch-y and fantastical, all in luxe, buttery fabrics.
On top of that, Posh Peanut pieces are priced affordably. “The [pieces] last a really long time. Unlike other brands, cotton bamboo is 30 percent more stretchable so it stays with your kids a long time rather than you going through it every week that your kids are growing.”
Developing a focus group via Facebook
Posh Peanut’s growth has been guided by input provided by customers in the company’s VIP Facebook group.
The group began as a place where customers would ask questions about products, but quickly morphed into a community of new parents. “When you’re going through the whole [parenting] process, it’s very lonely if you’re the first to get pregnant and you don’t have people around you,” explains Sahakian, adding that it’s the Facebook group that has “set the brand apart from the rest and disrupted the industry”.
Rather than having to pay for research or focus groups, Posh Peanut has direct access to its customers via the Facebook group, which now has 50,000 members.
“We launch products in there, we get concept ideas, women share their stories. Sad stories, happy stories. Really, products of Posh Peanut, what their kids are wearing, how to style stuff. Anything you can think of is asked in the group and that’s how we built it,” said Sahakian.
Using tech to add a human touch
In addition to paid media and social media, Posh Peanut offers conversational text messaging which Sahakian likens to an online concierge service.
“Just really any way we can elevate the brand and really touch point with our customers and really speak to them. I’m a true believer in having a human behind a computer or customer service and not outsourcing it to bots. I feel like it makes it really special,” Sahakian explains.
Using tech to drive sales
Afterpay has been a particularly critical tool. “I think it really helped scale the business because we are a more premium brand. People weren’t used to paying $42 for one footie [or onesie] and I think Afterpay really gave people the opportunity to test the product without paying the premium up front and garner that relationship and trust.”
Sahakian adds: “It’s very loud in every single category online so you have to really differentiate yourself with everything and be competitive, whether that’s having Afterpay or offering anything else. That’s one of the biggest things I think people don’t do. They’re scared of fees or different reasons. I’ve talked to founders who are like they charge too much. I’m like you are missing out on huge sale numbers."
Future plans
Next up, Posh Peanut plans to add luggage, travel and other categories. “We’re a lifestyle brand so we’re really coming out from the children’s [category], going more into family, going into home, curating around what has already been super successful and just adding to whatever customers are asking for,” Sahakian says.
“In our five-year plan, we want to be a product that you will see in most homes or children wearing. We’re already seeing the traction. I was just in Hawaii and this mom came up to me and her daughter was wearing our swimsuit so it’s really cool to see the brand grow.”
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