Jewelry designer Kendra Scott joins Yahoo Finance Live to talk about the retail industry, the state of the consumer, philanthropy, empowering women to become leaders, and the importance of social media for brands.
Video Transcript
SEANA SMITH: It's International Women's Day, and we're honoring the achievements of women in business. Our next guest is an icon in the fashion world. She started by selling her jewelry designs out of her spare bedroom and built that business into a billion dollar brand. Not only is she known for creating unique and bold jewelry designs, she's also devoted much of her time to supporting women's and children's causes. Kendra Scott, founder and executive chairwoman of Kendra Scott, is here with us now. Kendra, great to have you.
Thanks so much for having me. Thrilled to be here today.
SEANA SMITH: So we have a lot to get into with you, but let's start with what you're announcing today, the launch of the Kendra Scott Foundation. What can you tell us about this foundation and its mission to change the lives of women and children across the world?
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KENDRA SCOTT: You know, since I started this business, philanthropy has really been at the center of my business. Jewelry has actually been secondary to us wanting to really make a difference in the lives of women and children. And so since 2010, we've actually donated over $50 million to women's and children's charities across the country. And after 20 years in business, this was the perfect time to really say, hey, let's start a real true foundation that we can use all these things that we've been doing and just have a central place where we can really make that giving even more effective and powerful than we have in the past. And here we are now, having the Kendra Scott Foundation and launching it on this remarkable day.
SEANA SMITH: So, Kendra, women supporting women, obviously, a huge importance to you, something that you are a true believer in. I know you've built your business from the ground up. How does this mentality apply to your business model today?
KENDRA SCOTT: You know, I think for me, starting literally out of the extra bedroom of my house 20 years ago, and to be able to build a business and see how the power of empowering other women really make such a difference. We are 96% female at Kendra Scott with over 2,500 employees across the country. And for me, it was really important that we continue to empower women, the next generation of women, that they can also lead and build businesses just like mine.
I founded the Kendra Scott Women's Entrepreneurial and Leadership Institute at the University of Texas just a few years ago. And that program is designed to teach the entrepreneurial mindset to women in any background. So any major of any school that you're in, you can learn the entrepreneurial mindset at the University of Texas through my program. So it's really just that foundation of continuing to empower women for the future.
SEANA SMITH: Kendra, let's talk a little bit more about your success because up until this point, you have over 100 stores in pop-up locations. You have a thriving ecommerce and also a wholesale business. What can you tell us just about the trends of the consumer, what you are seeing spending wise, when we have so much uncertainty out there and this fear that consumers are going to continue to pull back their spending?
KENDRA SCOTT: Yeah, you know, I think what we've really been so excited to see, that brick and mortar is not dead, as many were worried about during the pandemic. You know, at Kendra Scott, we had to also close our stores during the pandemic. And we were worried, will shoppers going to want to come back out? And what we realized is community is so important. And that has always been the focus of our stores, is bringing community into our stores, through our Kendra Gives Back events and other things. So we really had the most successful year. 2022 was our most successful year at Kendra Scott.
And I think a lot of it was because people are so happy to be back together again, having that community spirit within our stores, and then also really meeting her wherever she might be. And if that's digital, at home, we've really kind of ramped up our ecommerce and ability to give her a really easy shopping experience. So you know, the key for us is meeting the customer where she is, wherever that might be in that day. And it really is kind of that trifecta of retail stores, e-commerce, and wholesale, and how we really bridge those all together to give the customer the absolutely best experience.
SEANA SMITH: Yeah, Kendra, you've also had a heck of a lot of success on social media. I know you capitalized on the popularity of the Bama rush videos on TikTok. I got sucked in. I heard your name numerous times on those videos. You have certainly developed a very devoted fan base. How much of that do you attribute to social media? And walk us through just why do you think you've been so successful on those platforms.
KENDRA SCOTT: You know, it's been so funny because, obviously, I am a mom-- I don't know if you know this-- to six, a bonus mom and mom to six children. And so they've introduced me to TikTok. So they were actually the ones that first saw this trend happening and saying, mom, you are all over TikTok. And I'm like, what are you guys talking about? And then of course got the call from our media team as well.
But I think what makes us different is that we are such an authentic brand and authentic connection to our customer. We have brand ambassadors. We have a gems program that is in universities across the country. And these gems are out there, meeting with the sororities and different leaders within the universities and making a human connection, not just about the product, but they're really getting to see who we are as a brand.
We're inviting students to get involved in some of our philanthropic outreach events. And that connection, I think, has made us so different and one of the things that excites our fans to show that wherever they want to. And it just so happens that social media, TikTok, and some of those others were ways for them to express their love of Kendra Scott. And let me tell you, I sure loved it as well.
SEANA SMITH: I definitely loved all those videos. They're so entertaining. It's so addicting. It's hard to get off TikTok once you get sucked in.
Kendra, you also have a strong presence here among celebrities, Jessica Alba, Kate Hudson, just to name two that have certainly sported your jewelry on multiple occasions. When you partner up with a celebrity or decide that a celebrity wants to represent your brand, how do you decide that? And what has that done for the growth in your business?
KENDRA SCOTT: So what's so funny about a lot of these times is we don't even know that it's happening. These are, a lot of, in times, authentic connections, again, that the celebrity may have made with our brand, loving the things that we represent, wanting to be an engaged and involved, because our jewelry brand really is more than just beautiful designs, which obviously it is, but it also has that component of giving back to women and children and I think you see the celebrities that have worn our jewelry consistently share my core values.
We share the same heart. We care about the same things. And it's almost always the case. You know, when I see a celebrity, I'm like, yep, that's a giver. She's got a giving and loving heart. And I think that's where you see us pairing with the best celebrities, is, it's an authentic connection.
SEANA SMITH: Well, Kendra, a lot of people turn to you, I'm sure, for entrepreneurial advice, what they should do when they're looking to grow their business. You have been a recurring shark on "Shark Tank." First, just, what is that like, being in that seat, trying to decide which business of many to invest in?
KENDRA SCOTT: It is an absolute blast. Let me just tell you, I have so much fun being in the tank. I love my other sharks. But what I've really loved is being able to see all these fantastic founders and so many of them female founders, coming in with such passion and drive and excitement. And when we-- I first was on season 13. When I was on that season, it was so crazy because we were in COVID.
And we were thinking, is the entrepreneurial spirit still alive? Is it still going to be out there? And when these amazing entrepreneurs entered the tank, gave us their pitches, I think all of the sharks, we looked around with huge smiles and saying, the entrepreneurial spirit is not dead. If anything, it is more alive than ever. And I think for all of us, we love that. We feed off of it in a good way, and it's just been something I love being a part of. It's really phenomenal.
SEANA SMITH: And Kendra, some of the teams-- or some of the businesses, I should say, that you have teamed up with Booty Bag to name one, Sienna Sun, OpulenceMD. What's the common thread among those entrepreneurs or among those businesses or that one trait that you look for?
KENDRA SCOTT: A passionate founder. You know, I think if somebody is just doing something to make money, if that's their only goal, they're never going to be successful. Entrepreneurship is so difficult. There are so many peaks, but there are so many valleys. And if you don't have that passion, that drive, that love for what you're doing, you're never going to be able to survive those valleys. And so I looked for those passionate founders who are really finding white space in a market, and I know that they'll be able to get through anything that heads their way because of that drive and passion inside of them.
SEANA SMITH: Certainly is inspirational. Kendra Scott, great to have you, founder and executive chairwoman of Kendra Scott. Thanks so much.