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Start for freeThe Rise of True Classic
True Classic has become a major success story in the e-commerce apparel space, growing from zero to over $500 million in revenue in just a few short years. Founded in 2019, the brand has found tremendous success selling high-quality, well-fitting t-shirts and other men's basics at affordable price points.
In a recent interview, True Classic founder Ben Yahalom shared insights into how the company achieved such rapid growth without relying on celebrity endorsements, venture capital funding, or revolutionary product innovations. Instead, their success has been built on a foundation of great products, smart marketing, and flawless execution.
Starting with Product-Market Fit
Yahalom emphasized that True Classic's initial success stemmed from identifying a clear gap in the market - affordable, high-quality t-shirts that actually fit well. As he explained:
"There was a gap and the gap for guys was that nobody really made t-shirts that fit them really really well and felt really good and when it did when they did they charged an arm and a leg for it."
The company spent significant time on research and development, iterating on fabric and fit to create a t-shirt that truly delivered on customer needs. This focus on nailing product-market fit before scaling was crucial.
Marketing That Resonates
Beyond just having a great product, True Classic's marketing has been key to their growth. Yahalom noted that their marketing goes deeper than just describing product features:
"It's going deeper into like what is this consumer inside that we build this whole company around and how do we speak to them in a way that would really resonate with their problems and in the way that will make them feel the way they want to feel with our product in hand."
This consumer-centric approach to marketing has allowed True Classic to create ads and content that truly connect with their target audience.
Leveraging Customer Feedback
True Classic places a huge emphasis on gathering and acting on customer feedback to continuously improve their products and overall experience. Some key ways they do this include:
- Closely monitoring product repurchase rates
- Reading and analyzing every negative product review
- Conducting post-purchase surveys
- Bringing customers into team meetings for in-depth discussions
- Engaging with customers in-person to get unfiltered feedback
This obsession with customer feedback allows True Classic to maintain product quality and identify opportunities for new products and improvements.
Balancing Performance and Brand Marketing
Yahalom shared insights on True Classic's approach to balancing performance marketing and brand building:
"I think you can absolutely do branded content in a way that that drive direct response you just have to be thoughtful about all parts of it."
He emphasized focusing on what they want consumers to know, remember, and do when it comes to the True Classic brand. Their goal is to create memorable content that resonates emotionally with consumers, whether through humor or education.
While harder to measure than pure direct response, True Classic sees brand marketing as crucial for creating loyal customers and driving word-of-mouth growth.
Focusing on Core Channels First
For brands just starting out, Yahalom recommends focusing intensely on just one or two core marketing channels before expanding:
"I would focus on just meta if I had to pick one channel and if you want to add a bit more maybe throw in there like Google right I would not touch any of the other shiny objects despite how appealing they might seem right now."
He emphasized that brands can reach $100 million+ in revenue just through Facebook/Instagram if executed extremely well. Only once that core channel is maximized should brands look to expand to other platforms.
The Importance of Email and SMS
Beyond paid advertising, Yahalom highlighted email and SMS as crucial parts of True Classic's marketing stack:
"Think about it is like you have meta to drive a out of the PID traffic you want to capture those lead into leads so you want to capture their email and SMS and that to me is like a absolute core stack of keeping kind like people coming to the website and coming back through the welcome flow."
Building a strong owned audience through email and SMS allows True Classic to bring customers back to the site and drive repeat purchases.
Conversion Rate Optimization
Yahalom emphasized the importance of conversion rate optimization, but with a focus on maximizing net revenue and gross profit per visitor rather than just conversion rate alone.
He recommends brands focus on nailing the basics of e-commerce really well:
- A strong homepage
- Well-designed product listing pages
- Detailed and compelling product pages
- A smooth cart and checkout experience
Only once those core elements are optimized should brands look to add more advanced features and optimizations.
The Power of Customer Service
True Classic views customer service as a key differentiator and opportunity to create loyal customers:
"We are affordable but our customer service is nothing short of like a Ritz Carlton or Nordstrom or emx we take those opportunities to make people like remember us cuz if they talk to our agents like we want to go above and beyond we want to surprise and Delight we want to turn this interaction into a story that they're going to tell around the table on Friday night."
By going above and beyond to delight customers, even at a short-term loss, True Classic creates brand advocates who drive word-of-mouth growth.
Focusing on First Order Profitability
One of True Classic's key advantages has been their focus on achieving profitability on first orders. As Yahalom explained:
"That is a huge superpower and I recommend for all of you to absolutely try and figure out how to be first order profitable that is a huge competitive advantage in being able to scale because if you're breaking even on the first order and you can continue to press the the budget and generate more Break Even orders guess what happens you bump a lot of net revenue up you get a lot of more customers into the door."
This allows True Classic to scale aggressively without burning cash or relying on venture funding. Yahalom emphasized the importance of brands knowing their P&L inside and out to achieve this.
Expanding Product Lines Strategically
True Classic has expanded beyond just t-shirts into other apparel categories, but Yahalom cautioned against expanding too quickly:
"Don't touch all product categories all at once you don't have to start with a core solidify a core and then continue to expand kind of slowly but with the rhyme and reason of why you do that."
He recommended brands focus on nailing 1-3 core products before expanding. When True Classic does launch new products, they ensure they align with the brand's core values of comfort, quality, and affordability.
International Expansion
True Classic has found success expanding internationally, with Yahalom noting the international apparel market is 4x larger than just the US.
He recommended brands start by simply making their products available internationally through partners like Global-e, without investing in local distribution or marketing initially. This allows brands to identify which international markets resonate most before investing further.
Building the Right Team
Yahalom emphasized that having the right people in the right roles is crucial as a company scales. He recommended the Entrepreneurial Operating System (EOS) framework for thinking about team building.
Key elements include:
- Defining clear company values and hiring people who embody them
- Ensuring team members are in roles they understand, want, and have the capacity for
- Being willing to evolve the team as the company grows and needs change
Focus on Profitability
As a final piece of advice, Yahalom emphasized the critical importance of brands having a firm grasp on their financials and path to profitability:
"Get a really really good handle on your p&l like really really good handle as in like make sure you have daily visibility we actually have hourly visibility within true classic because all your decisions ultimately lad up to that and this is a tough environment where you are going to get destroyed if your p&l is not in good tiptop shape."
In today's environment, he stressed that profitability is no longer optional - brands need to have a clear understanding of their unit economics and path to sustainable growth.
Key Takeaways
True Classic's journey from zero to $500 million offers valuable lessons for e-commerce brands looking to scale:
- Start with a laser focus on product-market fit
- Create marketing that truly resonates with your target customer
- Obsess over customer feedback to drive continuous improvement
- Balance performance marketing with brand building
- Master 1-2 core marketing channels before expanding
- Leverage email and SMS to drive retention
- Optimize your website experience relentlessly
- Use customer service as a key differentiator
- Strive for first-order profitability
- Expand product lines and geographies strategically
- Build the right team and culture as you scale
- Maintain a relentless focus on unit economics and profitability
By following these principles and maintaining a data-driven, customer-centric approach, emerging e-commerce brands can set themselves up for sustainable, long-term growth.
Article created from: https://www.youtube.com/watch?v=ZvOYC4Z3rKI
