Monday, June 27, 2016

The Chubbies Startup: A newer brand that is taking ecommerce practices and social media by storm

 The San-Francisco based Chubbies brand became an ecommerce startup company in the summer of 2011 with humble beginnings and a unique path. The men’s shorts and swim trunks company, that produces all of its products domestically for around $60 a pair, was founded by four former Stanford fraternity brothers who initially designed the first soon to be Chubbies merchandise for an upcoming Lake Tahoe trip in July of 2011. The four founders decided to create another 20 pairs of the shorts during the vacation period to see if they could realistically sell the potential product, and the cofounders sold out immediately with a price tag of $50 each. Within the next few months the cofounders who had a variety of skills in different fields ranging from corporate retail to finance, were able to work together to create prototypes, start manufacturing, develop a “fratty branding technique,” and launch their online website in September of 2011. (Colao, 2014)

Today, the company has over 120 different designs for men’s shorts and swim wear, including designs known as the Pina Quadlatas and the ‘MERICAs, “That kind of web copy, and the company’s unabashedly fratty branding, has earned Chubbies legions of loyal customers, including millions of Facebook fans. Even former President George W. Bush owns a pair,” (Colao, 2014). 

The retro and fraternity inspired men’s shorts is also not the only product the company has in stock today. With a steady growth curve, Chubbies now has created a line for women’s shorts and swim wear as well as men’s shirts, windbreakers and sweatshirt tops. The ecommerce retailer also opened their first physical retail store earlier last year in San Francisco. The manifesto for the brand found on the company’s website, which can offer an important insight into the customer appeal, still enforces however that the brand image and company purpose remains built around the shorts merchandise:

To us, pants are a necessary evil - built for the work week because your boss just doesn't get it. You see a Chubster in pants or cargo shorts and he looks like a fish out of water; a radical fish that's probably krumping on the beach, but nonetheless OUT OF WATER. But this exact passion for shorts is why Chubbies are so righteous. We don't do pants. We don't do cargos. We don't do capris. We do shorts and only shorts. We have put painstaking effort into these shorts. We have engineered them for the toughest shorts critics - ourselves. (“The Manifesto,” n.d.)

Even with a legion of followings on social media and what is known as a growing  “Chubbies’ Community,” the Chubbies brand still faces stiff competition with large scale brick-and-mortar retailers like Gap and the Vineyard Vines brand. However, it is the way the brand has managed their presence online and their customer tracking that has largely made this startup stand out from the very beginning. Chubbies put into practice a popular online sale promotion that is hosted annually in July and can be compared to, “a summertime version of Cyber Monday,” (Kosoff, 2015). With this annual online promotion known as the "Fourth of Julyber Monday,” the company expects to produce over $1 million in sales on this day alone. The website today has a video tutorial where customers can view information on the upcoming 4th of July sale. 



 In fact, the brand offers several unique online promotions leading up to the 4th of July sale for its customers, as even today on June 27, 2016, Chubbies is hosting a “Giftapalooza,” where customers will receive a free gift with every purchase.
The Chubbies brand also has a unique customer loyalty program that was recently automated last year to reward customers with gifts for first time purchases. Since automating their program, revenue from repeat purchases has increased 70%, “Chubbies, which doesn’t disclose its revenue and declined to give order volume numbers, has used the automated system to cycle through 200 gifts aimed at rewarding customers’ first and subsequent purchases, up from the two gift options it offered for the past four years,” (Guy, 2016). Chubbies worked with ecommerce design firm Rocket Code to set up the program that runs on Stich Labs software to continue putting gifts and notes into customers’ orders. The programming interface automatically tracks who receives the gifts, “In Chubbies’ case, the API connects customer orders that come in through Chubbies’ e-commerce platform, Shopify, to the retailer’s third-party logistics provider. The API connects multiple pieces of software. It lets us test new gifts, change gifts when we want, add a certain gift in a customer’s first order, a different gift in the second order and keep updating the gifts,” (Guy, 2016). 
The Chubbies brand also has a unique customer loyalty program that was recently automated last year to reward customers with gifts for first time purchases. Since automating their program, revenue from repeat purchases has increased 70%, “Chubbies, which doesn’t disclose its revenue and declined to give order volume numbers, has used the automated system to cycle through 200 gifts aimed at rewarding customers’ first and subsequent purchases, up from the two gift options it offered for the past four years,” (Guy, 2016). Chubbies worked with ecommerce design firm Rocket Code to set up the program that runs on Stich Labs software to continue putting gifts and notes into customers’ orders. The programming interface automatically tracks who receives the gifts, “In Chubbies’ case, the API connects customer orders that come in through Chubbies’ e-commerce platform, Shopify, to the retailer’s third-party logistics provider. The API connects multiple pieces of software. It lets us test new gifts, change gifts when we want, add a certain gift in a customer’s first order, a different gift in the second order and keep updating the gifts,” (Guy, 2016).

Another portion of the online site that is a stand out for customers would be the interactive help desk and facts about the shopping experience. When entering the help desk the customer is presented with an easy to use search bar and also readily available portals for help and information such as facts on Julyber Monday, Shipping, Placing Orders, and even a quite random yet brand relatable section on Dad Jokes. 



Although the brand has proven customer engagement, a large social media following, a high regard for catering to customers through their ecommerce purchasing platform and a new age software program in place to track customer orders and activity, their SEO efforts may be lacking. When performing a search on the key phrase “men’s shorts” in Google, the Chubbies brand did not even make the first four pages of the Google search. The search phrase of “men’s swim shorts,” also did not produce results on Google. A known competitor however, Vineyard Vines, did populate on this search in the second page of Google results. Vineyard Vines is a well-known brand and after finding it listed on the second page, I am led to believe that popular brands such as Vineyard Vines and now Chubbies, relies more heavily on customer awareness through social media efforts and word of mouth popularity.

Upon further research into the Chubbies brands SEO and analytical efforts, a report on their Alexa traffic ranking (a combined measure of unique visitors and page views) shows their US ranking to be 13,304. For a comparison, Alexa traffic ranks Gap at 147. An SEO audit of the company shows that the Text/HTML ratio is at 12% which is relatively low. A total of 59 different links were found on the site, 50 of them being internal and linking to contact information, the cart etc., while the external links mainly linked to social media sites. Chubbies also does not use meta keywords, yet this can be viewed as a positive effort being that meta keywords no longer help SEO efforts and are considered by most a black hat practice,“…Meta tags, for instance, have a negligible SEO value and don’t influence a company’s position in search engine results,” (“Reasons Why You Should Stop Using Keywords Meta Tag,” 2014).

Overall Chubbies has proven to be a well-known and highly engaged brand with its customers. It is unclear at this point in their young brand life whether they need to focus more on SEO efforts, as they already have such a uniquely successful platform and strong following for a 5-year-old company. Yet for the potential customers who do not know of the brand, this is where SEO practices can become imperative. In my opinion relying on popularity methods and social sharing is simply not enough. Chubbies needs to tie in more on site text and product keywords in order to better optimize visitor searches. At the very least the key phrase of “men’s shorts” should yield a result for Chubbies within the first two pages of a Google search. Chubbies is tracking their customer orders and monitoring their revenue and retention rates, yet where are they promoting their brand online other than through their own channels? An analytical tool I would therefore recommend for the company in the future would be ChartBeat, a real time solution that monitors traffic, where it is coming from and when and where it is leaving from. With this information, Chubbies can further make an informed decision on what keywords would be best used for SEO and possibly venture into using Google AdWords or additional advertising methods depending on where the traffic is entering the website from.

References:
Ali, F. (2016, June 15) How Chubbies uses social media to build its brand. Internet Retailer (Online) Retrieved from: https://www.internetretailer.com/2016/06/14/how-chubbies-uses-social-media-build-its-brand
Colao, J. (2014, May 6) Meet The Stanford Bros Conquering Men's Shorts: Inside The Frat-Empire Of Chubbies. Forbes (Online) Retrieved from: http://www.forbes.com/sites/jjcolao/2014/05/06/meet-the-stanford-bros-conquering-mens-shorts-inside-the-frat-empire-of-chubbies/#179b5cc0727a
Guy, S. (2016, May 17) Men’s casualwear e-retailer Chubbies boosts its loyalty game. Internet Retailer (Online) Retrieved from: https://www.internetretailer.com/2016/05/16/mens-casualwear-e-retailer-chubbies-boosts-its-loyalty-game
Kosoff, M. (2015, June 20) This startup is getting frat guys across America to wear short shorts — and they love it. Business Insider (Online) Retrieved from: http://www.businessinsider.com/chubbies-founders-on-why-they-started-a-mens-short-shorts-company-2015-6
N.A. (n.d.) The Manifesto. Chubbies (Online) Retrieved from: https://www.chubbiesshorts.com/pages/manifesto
N.A. (2014, January 5) Reasons Why You Should Stop Using Keywords Meta Tag. Cohlab (Online) Retrieved from: http://cohlab.com/blog/stop-using-keywords-meta-tag.html

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