Mathebe Ngwenya (Beauty on TApp): Redefining South Africa's Beauty Industry | Mashstartup Podcast
Audio Brief
Show transcript
In this conversation, Mathahle Dlamini shares her journey scaling Beauty on Tap from a self-funded e-commerce startup to a multi-store omnichannel powerhouse, highlighting customer-driven innovation, leadership evolution, and building a sustainable legacy.
There are four key takeaways from this conversation.
First, product innovation should stem directly from customer feedback and observed needs. Beauty on Tap successfully launched in-house brands by noticing how customers used existing products and identifying clear market gaps, creating unique value and improved profit margins through exclusivity.
Second, a physical retail presence can significantly amplify e-commerce, rather than cannibalize it. Beauty on Tap experienced surprising growth in online sales after opening brick-and-mortar stores, as these locations built brand awareness and customer trust.
Third, scaling a business demands a personal evolution from a hands-on founder to a strategic leader. This involves delegating, trusting the team, and making uncomfortable decisions. Mathahle Dlamini's journey highlights how new motherhood shifted her motivation from personal ambition to building a sustainable legacy, driving this leadership transformation.
Fourth, build brands with unwavering intention and a clear ethos, resisting the temptation to chase every trend. This strategic approach ensures long-term value, customer loyalty, and integrity for each product line.
This episode offers valuable lessons on customer-centric growth, strategic scaling, and leadership transformation in the retail sector.
Episode Overview
- Mathahle Dlamini discusses her journey scaling the beauty retail brand, Beauty on Tap, from a self-funded e-commerce startup to a multi-store omnichannel powerhouse.
- The conversation highlights a core business strategy of using direct customer feedback and observed needs to develop successful, purpose-driven in-house brands.
- Mathahle shares how balancing new motherhood with entrepreneurship fundamentally shifted her motivation from personal ambition to building a sustainable, long-term legacy.
- The episode explores her personal evolution as a leader, detailing the transition from a hands-on founder to a strategic CEO who must delegate, trust her team, and make uncomfortable decisions.
Key Concepts
- Customer-Driven Innovation: The creation of in-house brands (Pastry, BARE, FOR ME) was a direct response to customer feedback and observing how the community used existing products in unintended ways, effectively filling clear gaps in the market.
- Omnichannel Synergy: The expansion into physical retail did not cannibalize online sales as feared; instead, the brick-and-mortar presence built brand awareness and trust, leading to significant growth in the e-commerce channel.
- Bootstrapping and Financial Discipline: The business's rapid, self-funded expansion required intense cash flow management, prudent spending, and strategic negotiation with suppliers and landlords, drawing on the founder's accounting background.
- Strategic Brand Building: Each brand is created with a specific intention and ethos, avoiding chasing trends to maintain integrity. A strategic decision to make these brands exclusive to Beauty on Tap created a unique value proposition and improved profit margins.
- Leadership Evolution: Scaling the business, particularly during maternity leave, forced a shift from a founder involved in every detail to a CEO focused on building systems, delegating, and embracing the discomfort of making tough strategic decisions.
- Building a Sustainable Legacy: The founder's perspective on legacy evolved from simply creating a business to hand down to building an authentic company with a positive culture that supports the well-being of its team.
Quotes
- At 1:07 - "Your whole purpose changes... It's not for me anymore, for somebody else. It's a legacy thing now." - On how motherhood shifted her entrepreneurial motivation.
- At 9:33 - "I thought that online would completely die... and the direct opposite happened. We saw this huge growth in online." - On her initial fear and the surprising synergistic effect of opening physical stores.
- At 26:04 - "Every brand has intention. I don't just start a brand for the sake of starting a brand." - Highlighting her core philosophy of purposeful creation rather than simply capitalizing on market trends.
- At 43:01 - "I've had to unlearn being comfortable." - Reflecting on her personal growth as a leader and the necessity of making difficult decisions for the business to scale.
- At 1:00:48 - "I wish I knew that I'm a bad... you know? Like, damn girl, you're bad. I wish I knew that much earlier." - Expressing a wish that she had believed in her own capabilities more from the beginning.
Takeaways
- Use direct customer feedback and observed behavior as your primary source for product innovation; your community will show you the gaps in the market.
- A physical retail presence can serve as a powerful marketing tool that builds trust and amplifies, rather than replaces, your e-commerce channel.
- True business scaling requires a personal evolution from founder to leader, which involves letting go, trusting your team, and embracing uncomfortable but necessary decisions.
- Build brands with a clear, unwavering ethos and resist the temptation to chase every trend, as intentionality creates long-term value and customer loyalty.