Startup interview: James Storie-Pugh, Co-founder, mellow
RTIH: Tell us about mellow
JSP: Myself and co-founder Neil Tunbridge launched mellow earlier this year as a curated online marketplace for global CBD (cannabidiol) brands. We operate out of the UK and are focused on the emerging and frontier wellness sector offering UK and EU consumers access to leading global CBD brands.
We have a combined 40 years’ of experience working across marketplaces and e-commerce, specialising in brand development and cross-border expansion, so are well placed to provide global CBD brands in this nascent sector the technology and support needed to reach their growing customer base.
And for consumers, we’re providing the highest quality, regulated CBD products that they can trust.
RTIH: What was the inspiration behind setting the company up?
JSP: We could see the huge potential of CBD within the UK and Europe, and wanted to provide a space for consumers to be confident in the purchase process.
There can be confusion surrounding the CBD market and we are inspired to further educate consumers on CBD’s legality and wide-reaching applications and benefits.One way we ensure we’re legitimising the sector is by only partnering with brands that guarantee every product meets our high-quality standards.
We’ve also built this marketplace with the potential to expand into other (non-CBD) sectors that promote health and wellness as a key part of a positive lifestyle.
RTIH: What has been the industry reaction thus far?
JSP: Overall the industry reaction has been really positive – something we didn’t necessarily expect. As a startup, naturally we have a lot more to offer, including exciting plans to improve the user experience for consumers completing their shopping journey.
We’re also onboarding even more brands and products and supporting them to go live on mellow. The affirmative reaction from customers and our brand partners is really motivating, and we know what we have planned in the future will be even bigger and better.
“Launching a business during a global pandemic is probably the greatest challenge anyone can face. The uncertainty of the market, difficulty in forecasting trends, and availability of funding is challenging. Despite this, we have managed to double the number of brands selling on mellow since the launch and have experienced 100% week on week growth since April”
RTIH: What are the biggest challenges facing the omnichannel retail sector right now?
JSP: What isn’t a challenge right now? From the increases in rents and rates, decreasing footfall, and now more recently the Covid-19 pandemic, everyone in the omnichannel retail space has been having a hard time.
If retailers weren’t already considering the importance of e-commerce, the uptick in online shopping during the lockdown period should prompt businesses to refocus their attention, and explore new opportunities on this channel.
As the high street opens back up and the economy starts to move again, ongoing discounting due to excess inventory will offer customers increased choice from a range of different brands. One of the biggest challenges for the omnichannel retail sector will be finding ways to engage customers who have less desire and motivation to be brand loyal.
RTIH: What's the best question about your company or the market asked of you recently by a.) an investor and b.) a customer?
JSP: We’re regularly asked by investors; “how will you compete with Amazon?”. For those that aren’t familiar with the CBD sector and its existing regulation, there is a misconception that CBD products are available on Amazon already, and that we’ll quickly become irrelevant.
There is also a lack of knowledge around the e-commerce marketplace model, and the differences between mellow – a fully managed marketplace model – and a standard single brand Shopify site.
Customers often ask questions about what new products we can offer, or what products to buy for certain treatments. We’re committed to bringing consumers the latest brands, such as a fantastic new skincare brand we’ve onboarded from Switzerland called Virisens, which is available exclusively on mellow.
RTIH: What has been your biggest challenge/setback?
JSP: Launching a business during a global pandemic is probably the greatest challenge anyone can face. The uncertainty of the market, difficulty in forecasting trends, and availability of funding is challenging.
Despite this, we have managed to double the number of brands selling on mellow since the launch and have experienced 100% week on week growth since April. This gives us a sense of confidence that we have found a niche where we can provide a superior service for both our brands and consumers.
RTIH: What can we expect to see from mellow over the next 12 months?
JSP: With the European CBD market expected to reach £1.6 billion by 2023 we expect to grow rapidly in the next 12 months. We’re partnering with even more high-quality CBD brands from across the globe, and looking to raise £1 million of seed investment to help us further scale the business.
We also want to improve the mellow brand through increasing our educational resources, and build our reputation as a trusted learning space and the go-to platform to buy premium health and wellness products.
