The Modern Retail Podcast

'Most products out there don't need to be subscription': Cloud Paper's Ryan Fritsch on the state of subscription businesses


Listen Later

Cloud Paper is trying to get more people -- and businesses -- to try its products.

The company makes bamboo-based tree-free toilet paper. When it first launched in 2019, co-founder Ryan Fritsch said the goal was to grow via business-to-business partnerships by selling to businesses like corporate offices and hotels. Its first major account was a Seattle WeWork. But then the pandemic hit, and office buildings shut down. As a result, Cloud Paper had to pivot its business to be consumer-facing.

Two years later and the company is continuing to see year-over-year growth. But it's no longer a business focused solely on supplying toilet paper to other businesses. "Consumer sales are still driving the majority of our sales today," Fritsch said on the Modern Retail Podcast.

The idea behind Cloud Paper was to make an environmentally conscious toilet paper. "Toilet paper hasn't changed much for many, many decades -- and it hasn't changed much, especially in terms of sustainability," said Fritsch. "It's very much lagging behind other household goods." With this in mind, the company decided to use bamboo as its source since the plant is both abundant and renewable.

In addition, Cloud Paper decided that its consumer-facing business needed to be subscription-only when it first hit the market as a way to rope in repeat shoppers. The bet seems to be working out, even after the coronavirus-induced toilet paper mad dash. The company recorded a huge sales bump in 2020, but didn't see much churn after inventory leveled out. "We actually didn't see much change at all kind of once things got back to 'normal,'" Fritsch said.

But even though the subscription business is healthy, Fritsch is dubious of it as a one-size-fits-all model. He's seen many subscription companies come and go -- and it's usually because the product didn't fit with the business plan. "Everyone wants to launch a subscription box or a product on subscription," he said. "But it was our idea early on that most products out there don't need to be subscription."

Luckily for him, toilet paper does seem to be working -- at least for now.

...more
View all episodesView all episodes
Download on the App Store

The Modern Retail PodcastBy Digiday

  • 4.6
  • 4.6
  • 4.6
  • 4.6
  • 4.6

4.6

76 ratings


More shows like The Modern Retail Podcast

View all
Shopify Masters by Shopify

Shopify Masters

376 Listeners

The Digiday Podcast by Digiday

The Digiday Podcast

104 Listeners

Digiday Live by Digiday

Digiday Live

7 Listeners

How I Built This with Guy Raz by Guy Raz | Wondery

How I Built This with Guy Raz

30,235 Listeners

The Glossy Podcast by Glossy

The Glossy Podcast

256 Listeners

The Business of Fashion Podcast by The Business of Fashion

The Business of Fashion Podcast

582 Listeners

9 to 5ish with theSkimm by theSkimm

9 to 5ish with theSkimm

1,869 Listeners

Second Life by Second Life

Second Life

2,852 Listeners

Career Contessa by Career Contessa

Career Contessa

457 Listeners

RETHINK RETAIL by RETHINK Retail

RETHINK RETAIL

51 Listeners

The CMO Podcast by vYve & Jim Stengel

The CMO Podcast

350 Listeners

Morning Brew Daily by Morning Brew

Morning Brew Daily

3,002 Listeners

The Hustle Daily Show by Hubspot Media

The Hustle Daily Show

236 Listeners

The Debrief by The Business of Fashion

The Debrief

44 Listeners

OPERATORS by OPERATORS

OPERATORS

48 Listeners

Fashion People by Audacy | Puck

Fashion People

228 Listeners

Everybody's Business by Bloomberg and iHeartPodcasts

Everybody's Business

91 Listeners