The Economics Of Jessica Alba

December 2, 2015 in Daily Bulletin

Derek Blasberg wrote about Jessica Alba and why she’s in the same league as those who created Facebook and Uber:

  • After Alba’s first child broke out in hives the actress looked into the ingredients that go into children’s products and learned that multiple toxins are sometimes labelled as “fragrances”.
  • She decided to launch a company, now called Honest, which sold baby products that parents could trust.
  • One tech investor showed little interest in the idea, until he had a child, and his wife started desperately searching on the internet for information about safe children’s products.
  • The company launched in 2012 and saw sales of $10 million in its first year.
  • This year sales are over $150 million and the company is valued at $1.7 billion.
  • This makes it a “unicorn” – the term for a startup that is valued at over a billion dollars within five years of its launch. Jessica Alba managed to do it in three.
  • Part of the secret seems to be redefining people’s relationship with celebrity. Instead of representing the unattainable Alba’s products are about connecting with every day consumers.

Read more about Alba’s success, how her acting career helped build an entrepreneurial character, and her hands on approach to things over here.

Source: Vanity Fair