Jeremy Cai - Manufacturer to Customer – [Founder’s Field Guide, EP. 33]

My guest today is Jeremy Cai, founder, and CEO of Italic, a subscription marketplace for consumer goods that works directly with manufacturers. I was introduced to Jeremy by my friend Blake Robbins and was dying to better understand the Italic business model. In our conversation, we discuss the Italic business model, the evolving role of manufacturers in supply chains, and the concept of building the next generation “everything store.” I love learning and discovering new business models, and this was fun to dig into. Please enjoy my conversation with Jeremy Cai. For the full show notes, transcript, and links to mentioned content, check out the episode page here. ----- This episode is brought to by Dell Technologies. Dell Technologies and Windows can help you upgrade your business tech with its Small Business Month specials. Save up to 45% on PCs with Windows 10 Pro— plus business docks, monitors & more. To learn more, call a Dell Technologies Advisor at 877-ASK-DELL or check out the deals at dell.com/en-us/work/shop/deals. ----- This episode is brought to you by Eight Sleep. Eight Sleep's new Pod Pro Cover is the easiest and fastest way to sleep at your perfect temperature. Simply add the Pod Pro Cover to your current mattress and start sleeping as cool as 55°F or as hot as 110°F. To embrace the future of sleep and get $150 off your new mattress, go to eightsleep.com/patrick or use code "Patrick." ----- Founder's Field Guide is a property of Colossus, Inc. For more episodes of Founder's Field Guide, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @patrick_oshag | @JoinColossus Show Notes [00:02:45] - [First question] - Overview of Italic’s business model [00:04:51] - Why comparing Italic to Costco isn’t completely accurate [00:10:06] - His initial experience with manufacturers and how that world works [00:15:21] - Direct to consumer commerce and the power of a brand’s story [00:20:06] - Where manufacturers find the cash to effectively manage their inventory [00:25:26] - How design and R & D are handled by manufacturers in the current era [00:29:36] - Educated consumers and emotional versus rational buying decisions [00:31:12] - Analyzing Italic’s five-step master plan and what needed to be built first [00:35:42] - Becoming more than just an aggregator and a platform [00:38:01] - Lessons learned from building Italic so far [00:39:02] - Other modern business models he finds interesting [00:43:26] - What Not Pot is and lessons learned from building it [00:44:51] - Observations about consumer behavior in his managed marketplace [00:48:07] - The kindest thing anyone has ever done for him