Jewelry Business on Maternity Leave

This is the tale of business success by Kendra Scott, who founded a jewelry business worth one billion dollars while on maternity leave. Before achieving success, she faced a setback with a failed business venture called The Hat Box, which she launched in 1993.

The concept behind this project was to create hats for women who lost their hair due to chemotherapy. Her passion for hats and desire to help those undergoing chemotherapy inspired her to combine the two and create something unique. Scott opened stores selling hats for women experiencing hair loss.

The business initially thrived but eventually faced a downturn. Although the idea seemed promising at first, sales started declining, leading to financial losses. Kendra had to close down her stores. However, she refused to give up and declared that this was not the end of her entrepreneurial journey, a statement that later proved true.

The Journey to Building a Billion-Dollar Business

In 2002, Kendra Scott received news that she and her husband were expecting a child. However, this came at a challenging time as her husband lost his job, and she was advised not to work during pregnancy. Kendra had to find ways to pass the time and turned to making jewelry as a hobby. She had started dabbling in jewelry making even before her first business failure and found she had a knack for it.

She believed there was a place for her jewelry in the market and decided to invest the last $500 from their family budget into her second business. To convince her husband, she promised to double the amount in return. Eventually, this led to the breakdown of their marriage. With that money, Kendra created the first batch of her jewelry. Looking back, she acknowledges that seeking investors from the start would have accelerated her business growth. However, in 2002, Kendra believed in achieving success on her own. She assembled her jewelry in the bedroom and packaged them in the dining area. Though initially earning little, she was determined not to falter from her goals and persevered through various methods.

Upon the birth of her son, Kendra remained unwavering. She even carried her jewelry package made from a tea box while visiting numerous shops in town, offering her pieces. She also sent out numerous collaboration proposals daily, with only a few responses. Rebuffed with remarks like, "There are plenty of designers; you won't make it," she persisted in pursuing her dreams.

The First Success

It took Kendra Scott several months to achieve her first success. Her jewelry was purchased by someone from Dallas and then sold in New York, marking a significant milestone. Subsequently, Kendra's jewelry sold out within days. Building on this popularity, in her first year, she initiated partnerships with Nordstrom department stores, signifying her path to greater success.

Kendra crafts her jewelry exclusively from semi-precious stones, keeping their prices under $100. By sourcing materials directly from suppliers rather than agents, she maintained affordable pricing. Due to rapid business growth, Kendra eventually invested in creating her own stone-cutting forms.

Building an entire collection often took about a year, but she managed to create one within 36 hours once. A call from Oscar de la Renta pushed her to work swiftly. He demanded she deliver within two and a half days. Agreeing to the challenge, forty-five of her pieces were featured in his new show shortly after. This propelled Kendra Scott's jewelry into the limelight, eventually gracing the events of renowned celebrities.

Establishing Own Stores and Revenues

During a sales slump amid the 2008-2009 crisis, Kendra Scott made a pivotal decision for her business by establishing her own stores. At that time, her company only had seven employees. She decided to either take a risk by staking everything or abandon her business. With the support of her team and relentless efforts, Kendra Scott unveiled a showroom in New York and a full-fledged jewelry store in Austin in 2010, demonstrating her vision.

Kendra had a different vision for jewelry stores. Disliking how traditional stores presented jewelry under glass, she aimed to create an atmosphere where customers could freely access and try on pieces. She envisioned an ambiance akin to a festive celebration where people could have a relaxed shopping experience.

In Kendra Scott's chain of stores, each outlet resembles a bar counter displaying jewelry, where presentations are made to customers. Typically, these stores offer a variety of jewelry designs and stones for selection. This concept, referred to as the Color Bar, exudes openness and inclusivity rather than strict security. Due to this inviting atmosphere, people are drawn to her stores, with queues forming outside the first outlet.

In 2012, as Kendra embarked on realizing her vision of owning her store, her company's revenue was around $1.7 million. By 2016, with forty Kendra Scott stores, about eight hundred department store locations, and online sales, she amassed approximately $400 million in revenue. Experts estimate Kendra Scott's rapidly growing business to be valued at around one billion dollars.

A happy, popular, successful, and wealthy mom-entrepreneur now resides in a thriving new marriage, raising three children.

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