Building a Minimalist Wardrobe and a Thriving Direct-to-Consumer eCommerce Business Kristi Soomer’s Journey with Encircled

How Encircled Found Success with Direct-to-Consumer eCommerce

When you think about the perfect wardrobe, you might imagine a collection of versatile, timeless pieces that are responsibly made. For Kristi Soomer, founder and CEO of Encircled, this vision became the foundation for a thriving direct-to-consumer eCommerce business. Encircled creates sustainable, high-quality clothing designed to simplify wardrobes and reduce waste, offering customers the confidence to wear what they truly love.

From humble beginnings in her 500-square-foot condo to running a growing business with over 10 employees, Kristi’s journey with Encircled is a testament to creativity, persistence, and a commitment to doing things differently. Here’s how it all began and how her business has grown into a favorite among conscious consumers.

The Idea That Sparked Encircled

Kristi’s inspiration for Encircled came from an unexpected moment of frustration. While packing for a last-minute yoga retreat, her suitcase broke, forcing her to cram her essentials into a much smaller bag. This experience highlighted two things: she had too much stuff, and none of her clothing was versatile enough to adapt to her needs.

Amid the chaos, a single idea emerged: what if one garment could transform into multiple looks? Back home, Kristi sketched out designs, brainstormed brand names, and even taught herself sewing to create the first prototype. Her vision became a reality with the Chrysalis Cardi, an 8-in-1 travel piece crafted from premium fabric and designed to effortlessly transform into various styles.

From Side Hustle to Full-Time Passion

Initially, Encircled was a side project while Kristi worked full-time as a management consultant. Balancing her demanding job with her fledgling direct-to-consumer eCommerce business meant working evenings and weekends, packing orders at odd hours, and even mailing products on the way to the airport. Despite the challenges, she persisted, using her limited time and resources to grow her brand.

Two years in, Encircled’s growth reached a tipping point. Kristi faced a life-changing decision: stay in her stable career or leap into entrepreneurship full-time. With a deep belief in her mission, she took the leap, quitting her job to dedicate herself entirely to Encircled.

Designing for the Modern Minimalist

Kristi’s approach to product development reflects her commitment to quality and versatility. Starting without a background in fashion, she immersed herself in learning, taking courses in illustration and sewing, and working with technical designers to bring her ideas to life. Her first production run was a small batch created by local manufacturers in Toronto, a practice Encircled continues to this day.

Customer feedback plays a vital role in Encircled’s design process. Kristi actively involves her audience by hosting pre-launch waitlists, gathering input on social media, and iterating on designs based on real-world experiences. A perfect example is their T-shirt dress, which was refined to include a reversible neckline and a non-clingy fabric after listening to customer needs. This collaborative approach ensures every piece is not only beautiful but also practical and loved by those who wear it.

Lessons from Launching a Direct-to-Consumer eCommerce Business

Launching Encircled wasn’t without its hurdles. Kristi faced challenges with unreliable developers and costly PR efforts in the early days. She learned the importance of controlling her website and eventually moved the business to Shopify, a platform that empowered her to manage and grow her online presence effectively.

Funding the business came from personal sacrifices, including selling her car and later using proceeds from the sale of her condo. Early sales were slow, but through persistence and strategic adjustments, Encircled grew from a modest $40,000 in its first year to several million annually.

Kristi emphasizes the value of having a clear marketing plan, rooted in data and realistic goals. She also advises aspiring entrepreneurs to retain their day jobs until their businesses are financially stable, minimizing the stress of early-stage cash flow challenges.

How Encircled Found Success with Direct-to-Consumer eCommerce Sales

In the fast-paced world of direct-to-consumer eCommerce, Encircled has charted its own path. The company, known for its commitment to sustainability, designs and manufactures all its clothing in Toronto, Canada. From humble beginnings, Encircled has made a name for itself by embracing the direct-to-consumer eCommerce model, cutting out the middleman to better serve customers while staying true to its values.

Embracing the Direct-to-Consumer Model

Initially, Encircled explored wholesale but faced challenges that led them to pivot toward online sales. This decision aligned perfectly with their agile production model, allowing them to focus on high-quality, sustainable clothing made with fair labor practices. With a premium cost base compared to traditional retailers, going direct-to-consumer eCommerce was a way to keep products affordable without compromising on the brand’s core values.

Through their Shopify store, Encircled handles 100% of its sales, avoiding dropshipping or listing on marketplaces like Amazon or Etsy. Pop-up shops and in-person events further strengthen their connection with their audience, offering a chance to engage with customers face-to-face.

Building a Strong Team and Expanding Horizons

Encircled’s team of 10 works across production/design, marketing, and customer service. With a focus on a positive customer experience, two dedicated team members handle customer inquiries and satisfaction, while others focus on production and marketing. The company’s sales are split between Canadian and US markets, with plans to further expand in the US.

Looking ahead, Encircled’s founder is excited about the prospect of opening a production facility in Toronto within the next year. This move will enhance production agility, reduce stockouts, and take the business to the next level. With plans for senior hires to support strategic growth, the founder also hopes to enjoy a better work-life balance by taking more time off.

Key Lessons Learned from Entrepreneurship in Direct-to-Consumer eCommerce

Running a business isn’t for the faint of heart. The emotional highs and lows, combined with the constant balancing act of time, money, and people, can be overwhelming. However, the founder of Encircled has learned valuable lessons that have helped her navigate these challenges:

• Support System: A network of like-minded entrepreneurs is crucial for surviving the ups and downs of running a business.
• Mentorship: An experienced mentor like Julie Cole has been pivotal in helping the founder navigate tough times and celebrate successes.
• Time Management: Protecting your schedule and focusing on income-generating tasks while ensuring self-care is essential.
• Resilience: Embracing failure and using it as a stepping stone toward growth.
• Consistency: The most successful businesses thrive by showing up and executing consistently, every day.

Tools and Platforms That Keep Encircled Running Smoothly

Encircled relies on several tools to streamline operations and enhance customer experience:

Influential Resources for Entrepreneurs in Direct-to-Consumer eCommerce

The founder of Encircled is a self-proclaimed podcast junkie, drawing inspiration from several sources:

• Being Boss: Offers advice on everything from managing a team to maintaining a healthy mindset.
• Online Marketing Made Easy: Covers digital marketing and productivity tips for online businesses.
• How I Built This: Features interviews with successful CEOs, offering valuable insights into the entrepreneurial journey.
• Books: Key reads include Blue Ocean Strategy, which guides businesses on positioning themselves in a unique space, and The Universe Has Your Back, a reminder to trust in the process.

Advice for Aspiring Entrepreneurs in Direct-to-Consumer eCommerce

For those looking to start their own direct-to-consumer eCommerce business, the founder of Encircled shares some valuable advice:

• Start Small: Begin with a minimum viable product and test the market before scaling.
• Test and Learn: Marketing investments may not always pay off, but they provide valuable insights.
• Hire Slowly, But Sooner Than You Think: Bringing on employees early can free up time to focus on growing the business. However, be cautious and ensure the hire is the right fit.
• Learn from Mistakes: The hiring process is crucial—take the time to find the right people for your team.

Current Hiring Needs

As of now, Encircled is looking to hire a passionate Marketing Assistant. The company is always open to new talent, especially in areas like paid advertising and copywriting.