“On May 1st we booked the Amazon homepage”

Within just five years, the Mannheim start-up Snocks climbed from zero to 32 million euros in sales. In the 2021 financial year alone, the company was able to almost triple its sales. And above all with basic products that are by no means exciting in terms of fashion: socks and underwear.

It all started with distribution via Amazon Germany, Snocks now uses all online channels, has set up an Amazon consulting agency, a Snocks café, a podcast series and organizes events as offline touchpoints for the Snocks community. Now the pure DTC label is planning the next big step: internationalization. Just a few days ago, an investor invested a two-digit million amount. We spoke to the two cousins ​​and founders of Snocks, Johannes Kliesch and Felix Bauer, about their early years and future plans, their definition of social commerce and the importance of offline touchpoints.

Many fashion brands arose from the founders’ own needs: They had the impression that a certain product or design was missing on the market, and that other people might feel the same way. What was it like with you? Why socks?

Felix Bauer: We are both business graduates, we were particularly interested in the business model and e-commerce. And the product socks had potential. In addition, Johannes was a sneaker fan at the time and was always looking for suitable socks. That’s how the idea came about. It wasn’t that we both had a passion for socks.

JK: The fact that we started with socks was probably also due to our naivety at the beginning. We started with our idea on Amazon and were of the opinion that there was no real range of socks there. Either there were the expensive well-known brands or the products from China. But there weren’t any cool brands.

What was your goal? Did you intend to develop quickly from the start or was snocks more of a hobby alongside your studies?

FB: Everything was designed from the start to work. We started in August 2016 with starting capital of 4,000 euros and we took out the first loan in October. First 50,000 euros, a little later another 200,000 euros. So we were very quickly at risk and knew that we could only go in one direction.

When did you know it could work?

JK: The first week sucked, but by the second week we had advertised on Amazon and we could see the sales taking off, we knew it was working. From then on we believed in it. That’s why we went straight to the bank the next month.

And the bank believed in it too?

FB: We are often asked whether our studies have brought us anything: well, of course we knew very well what the bank wanted to see from us. Right from the start, we had the right know-how on how to get outside capital at such an early stage.

When it comes to packaging, Snocks uses environmentally friendly materials. Photo: Snocks

Snocks only makes basics, on the outside your socks hardly differ from others. How did you build Snocks as a brand?

JK: Right from the start, we thought about how to emotionally charge a product. People are interested in the story behind a brand or a business idea, which is why millions of people watch the lion’s den. That’s why the story of Snocks was part of our marketing strategy from the beginning. We’ve shown people the faces behind Snocks and told them who we are and how Snocks is evolving and they care.

We also told Amazon right away that we are two cousins. Our story has always given us momentum. This may be known today, but five years ago such an approach was not normal. With big brands like Falke or Burlington, nobody knows who is behind them, there are no faces. But in social commerce, this is an enormously important factor.

In the meantime, the product range has grown, for example there is also underwear and sportswear. Do you see yourself as a fashion label?

FB: We don’t actually see ourselves as a fashion label, but as a basic label. Even if we want to expand the product range even further, we will certainly not become a label that attracts attention with its crazy designs. Initially, all products were only available in black, white and grey! We want to remain a basic label, even if there is a special from time to time. By the way, we now even make ski socks and thermal underwear, because I’m a keen skier! I’m always happy when I can wear the things!

How do you plan to expand the collection further?

FB: We have started testing sportswear for women and want to expand the sportswear and activewear segment further.

Do seasons matter to you?

FB: Not really. From time to time there are specials and the sneaker socks are of course better in summer than in winter. But we also want to consciously move away from fast fashion, where 70 percent of the collection was not sold and then has to be disposed of. We’ve never had a product thrown away because it wasn’t sold.

You probably don’t have a high return rate either, do you?

FB: No, it’s in the single-digit percentage range. Mostly women’s underwear is returned, men’s underwear and socks almost not at all.

Snocks is more than just a collection. You run an Amazon consulting agency, there is a Snocks Cafe, you do events. Now you want to keep growing with the new finance sprite. What’s next?

JK: We’re pretty well served with that, so we won’t be opening a new kebab chain as well. But we want to deal even more intensively with our “Snocksulting Podcast” and expand it further. We just had our own podcast studio built into the office.

What are the podcasts about?

JK: We talk to other founders about founding a company and have already had great guests with us, such as the Munich start-up Air Up, Koro Drogerie, Marc Gebauer. We’ll be talking to Joko Winterscheidt soon. It’s about having cool conversations at eye level with other founders and in this way helping those who are interested and giving tips.

What tips, for example?

JK: For example, relying on TikTok for online marketing and not only doing email marketing, but also WhatsApp marketing. Incidentally, the podcast also helps us to grow: Many listen to our podcasts before they apply here. They have become a tool to find great people.

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The Snocks Cafe in Mannheim. Photo: Snocks

What skills are you currently investing in?

FB: We just hired someone new for CSR/sustainability, so we’re not as far along as we’d like to be. We also have to set up new teams for the planned internationalization. The next thing we want to do is start in France, so we’ll definitely need people on site for that.

Sustainability is extremely important in the fashion business right now. How do you go about offering more sustainable products?

FB: For example, by working with certified companies. Before Corona I looked at them myself and I hope that will be possible again soon. My own impressions are important to me, for example to be able to assess whether social standards are guaranteed. We are also looking for better alternatives when it comes to raw materials and packaging. But we want to get even better. The plan is that we first analyze the status quo and then see where we can make improvements. Since we are really manufacturing something, we will always also produce CO2, which we have to compensate for in the end. But it’s not just about the supply chain. It’s also about creating awareness among people. We’re already doing a lot, but we’re not actively promoting it yet. In Berlin, for example, we are currently doing a pilot project where customers can decide whether the product should be delivered by bike.

Where do you produce?

FB: We work with two German sourcing agencies. Production takes place in China and Pakistan. In the long term we want to produce closer to Europe.

What are your plans for the next six months, now that you have new money available?

JK: There’s a lot of different things. On May 1st we booked Amazon’s home page. We want to signal that we are now making the big moves. Now the big steps are coming, now we will tackle the big decisions. Maybe we used to be shy. Then we have different events on the list.

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A Snocks 5th Birthday Promotion. Photo: Snocks

How do you have to imagine a Snocks event?

JK: There will be cool locations, we invite big influencers, there will be a couple of 100 people. We have also held a number of start-up meetings that cost admission – which is then donated. But that shows that people want to come. This is our offline strategy. It is important to us to offer offline touchpoints in addition to the pure online presence. You can build up emotions in a completely different way offline.

Is wholesale an issue for you? Especially with regard to touchpoints and brand building?

JK: Yes and no. We still have so much potential in the area of ​​internationalization that wholesale is not yet an issue. It is currently easier for us to internationalize than to build a sales team. If the brand and the product range are big enough, I can also imagine wholesale and stores.

Of course you need offline touchpoints. But they can also look completely different, we just do events and parties.

Where do you see yourselves in five years?

FB: We want to be the leading basic fashion brand in Europe and beyond. But we can’t say that exactly. We wouldn’t have said five years ago that we want to be where we are today in five years. It is clear that we want to significantly expand the product range and internationalize. That’s why the banks and investors said we wanted to be part of the great party.

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