How I Built This with Guy Raz
How I Built This with Guy Raz

Advice Line with Vicky Tsai of Tatcha (September 2024)

Tatcha co-founder and former CEO Vicky Tsai joins Guy on the Advice Line, where they answer questions from three early-stage founders. Plus, Vicky explains her decision to briefly step back into, and then out of again, the CEO role. First we meet Jessica in Newport Beach, who’s wondering how to incr

Featured Speakers

Guy Raz | Wondery HostVicki Tsai Guest

Topics Discussed

Episode Summary

Executive Summary: Guy Raz and Vicki Tsai coach three founders on early-stage brand building, emphasizing that strong intentions, clear positioning, and storytelling matter more than broad distribution or paid promotion. Advice centers on leveraging craftsmanship, identifying a narrow audience, using low-cost content and community to build buzz, and delaying risky retail expansion until demand is proven.

Main Topics: Vicki Tsai’s career pivot and leadership lessons (Priority: 5/5): Vicki explains how she left corporate life with no safety net, started Tatcha after a life-changing trip to Japan, later stepped down as CEO due to imposter syndrome, and ultimately returned to lead during a difficult period before handing off to a diverse leadership team. Brand building through craftsmanship and community (Priority: 5/5): For jewelry founder Jessica Liu, Vicki and Guy stress showing the making process, highlighting handmade quality, and targeting customers who value artistry and identity over mass-market product shopping. Positioning a femcare/skincare brand before retail (Priority: 5/5): Brittany Lowe of BEA is advised to focus on mission, social storytelling, and product-led buzz before chasing retailers like Sephora or QVC, because retailers are more likely to come to brands that already have traction and a clear consumer pull. Launching a food product with local proof first (Priority: 4/5): Devin Clymer’s Muggsy Bakes is urged to build buzz locally in Cleveland through demos, events, and social content, then reverse-engineer a path to grocery distribution rather than chasing scale too early. Using content and low-budget virality as growth engines (Priority: 4/5): Across all callers, the conversation returns to the power of TikTok, humorous videos, product demos, and relatable use cases to create attention cheaply and authentically. The psychological cost of entrepreneurship (Priority: 4/5): Vicki reflects on self-doubt as a major burden for founders and argues that confidence is not just motivational but operational, because internal doubt can slow or distort company growth.

Key Arguments: Founders should not wait for perfect certainty; Vicki left corporate life because staying had a 100% chance of unhappiness, while trying something new gave at least a chance at fulfillment. Handmade or highly crafted products should be marketed through process and provenance, not compared directly to mass-produced alternatives. For premium, high-touch products, customer advocacy and community can substitute for expensive mass sampling. Before entering retail, a brand must generate demand; otherwise the retailer can become a costly failure that hurts future fundraising and credibility. Low-budget, highly shareable content can create awareness more effectively than traditional PR for early-stage brands. Retail channels like QVC and Sephora can amplify brands, but they also impose inventory, returns, and margin risks that self-funded founders may not be able to absorb. A clear bullseye customer is essential; early-stage brands should aim for a small number of ideal buyers rather than broad appeal. Entrepreneurial self-doubt is often internalized from external criticism and must be actively managed to avoid undermining execution.

Data Points: Tatcha founding year: 2008 - Vicki describes starting Tatcha after her trip to Japan and career burnout. Tatcha ownership: Owned by Unilever - Guy references Tatcha as now being a large company under Unilever. Return to CEO role: 2021 - Vicki says Unilever asked her to come back in 2021 during COVID-era challenges. Private equity involvement: 2018 - Vicki stepped down after private equity entered and recommended a seasoned leadership team. Jewelry price range: $195 to $1,600 - Jessica Liu describes Petit Anjou’s product pricing. BEA revenue: About $1 million - Brittany says the brand is expected to end the year around this figure. BEA team size: 1 full-time employee, 1 part-time employee, and freelancers - Brittany describes the current staffing structure. Muggsy Bakes location: Cleveland, Ohio - Devin says the company is being soft-launched locally before DTC. Muggsy Bakes format: Single-serve stand-up pouches - Devin explains the packaging format used for the mug cake mix. Bilo Cosmetics order minimum: 2,500 mascaras - Brittany recounts her teenage mascara startup experience. QVC repacking cost: $4 to $5 per kit - Vicki warns about reselling costs if QVC inventory does not sell through. Caller engagement number: 1-800-433-1298 - The show’s call-in number for founders seeking advice.

Pivotal Quotes: "I quit my day job without any safety net because I was just, I felt that corporate life was so soul-crushing." — Vicki Tsai: Explaining the emotional catalyst behind leaving corporate finance to pursue a new path. "People don't buy products these days, they join brands." — Vicki Tsai: Advice to Jessica Liu and a central thesis for early-stage brand marketing and community building. "Don't make it harder on yourself by carrying around self-doubt. It's like carrying around a backpack full of boulders." — Vicki Tsai: Her closing reflection on what she wishes she knew when starting Tatcha.

Implications: The episode suggests founders should prioritize authenticity, customer intimacy, and content-driven proof before scaling. For consumer brands, community and clear positioning can unlock retail and distribution later, while self-doubt and premature expansion are major risks.

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About How I Built This with Guy Raz

Guy Raz interviews the world’s best-known entrepreneurs to learn how they built their iconic brands. In each episode, founders reveal deep, intimate moments of doubt and failure, and share insights on their eventual success. How I Built This is a master-class on innovation, creativity, leadership and how to navigate challenges of all kinds.New episodes release on Mondays and Thursdays. Listen to How I Built This on the Wondery App or wherever you listen to your podcasts. You can lis...

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