How Obvi Achieved $40M Revenue in Just 5 Years

Meet Obvi, the game-changing collagen supplement brand taking the world by storm!

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Originally a direct-to-consumer (DTC) brand, Obvi quickly garnered attention with its innovative products, distinguished by their vibrant packaging and delightful flavours, swiftly evolving into an omnichannel brand.

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In this article, we unveil all the secrets behind Obvi's success, including its thriving community, innovative marketing strategies, and exceptional user experiences.

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1. Obvi overview

1.1 Brand history and founding

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Founded in 2019 by e-commerce experts Ronak Shah, Ash Melwani, and Ankit Patel, Obvi aimed to shake up the collagen supplement market. They were familiar with the health industry and were running a marketing agency together. 

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They noticed most collagen products were boring, looking “old”, and not tasty. Seeing an opportunity for excitement, they launched Obvi with a fun brand identity and colourful packaging, standing out in the traditional health supplements market.

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1.2 Omnichannel expansion 

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Obvi started as a DTC brand, launching on Shopify and initially acquiring customers through Meta ads. 

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However, the founders quickly recognised the importance of an omnichannel approach and expanded Obvi's presence to include Amazon, The Vitamin Shoppe, and other retailers.

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In 2023, the company's DTC channel accounts for approximately 70% of its sales, with the remaining 30% coming from its B2B partnerships and retail channels. 

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In just five years, Obvi has grown massively, making over $40 million in revenue in 2023, selling in over 75 countries, and gaining 200,000 customers worldwide.

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2.Obvi’s marketing strategy and rise in popularity

2.1 Building a thriving community

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The cornerstone of Obvi's meteoric rise lies in its community-centric approach. 

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With over 82,000 members in their Facebook group, they mastered the art of community building. 

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Obvi cultivates a vibrant community by encouraging interaction across all channels. Whether you visit their website, engage with the chatbot, receive an email or an SMS, or interact on social media, they'll nudge you to join their Facebook community. This focus on accessibility fosters a space where users can connect and engage directly with the brand.

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The founders themselves actively participate in the community, fostering open communication. They engage in discussions and answer questions directly, building trust and transparency with users.

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Obvi prioritises genuine community growth, valuing both positive and negative feedback. They believe honest feedback is crucial, and to ensure authenticity, they don't edit out comments to maintain an unrealistic, overly positive image.

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Product launches are exciting news, not sales pressure. Obvi focuses on informing the community about new offerings. Announcements are phrased with an informative tone, inviting users to explore new products if interested, rather than pushing for immediate sales.

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This group has not only increased customer lifetime value (LTV) but has also become a place for feedback, product innovation and product launches.

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For instance, the introduction of their best-selling Caramel Macchiato collagen flavour was the result of direct community engagement. By allowing customers to vote for their preferred flavours, Obvi not only ensured product success but also deepened customer loyalty and involvement.

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They also launched a special “Club Obvi" with a $129 yearly subscription to get perks like a 25% discount, free shipping, early access to new drops, exclusive sales events, cash back, gifts at signup and weekly raffles. 

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2.2 Multi-platform advertising approach and influencer marketing 

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Obvi's multifaceted marketing strategy harnesses Google Ads, Meta Ads, and TikTok ads to maximise brand visibility and consumer engagement. 

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Starting with a modest budget of $100 per day on Meta Ads and a clear ROI target (three times Return on Ad Spend - ROAS), Obvi gradually scaled their ad spend as they achieved their ROI goal. As a reference, in April 2022, their ad budget was $18,000 a day on Meta and $2,000 a day on TikTok.

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Influencer partnerships, particularly with TikTok micro-influencers, have played a crucial role in producing content that authentically resonates with their audience, showcasing Obvi's agile approach to marketing across platforms.

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2.3 Optimising the digital experience to drive conversion

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Obvi's website stands as a model of user-centric design, facilitating easy navigation across a broad product range. Through quizzes and intelligently categorised products, the site guides users to solutions that fit their specific needs. You can also receive gifts during the checkout process! 

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The brand creatively encourages larger purchases through bundles and related product suggestions, successfully increasing the average order value.

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They also create a sense of urgency through limited-time offers, exclusive products, or limited stock to drive sales by encouraging customers to make quick purchasing decisions. 

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2.4 Personalised email campaigns and SMS marketing with cashback incentives

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Obvi has devised a comprehensive email and SMS marketing strategy aimed at acquiring, nurturing, and retaining customers effectively. 

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They strategically integrate email and SMS, viewing them as complementary rather than competing channels, and focus on personalisation and segmentation to optimise customer engagement.

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Their email and SMS campaigns spotlight new flavours, discounts, and product benefits, contributing to higher engagement and cost savings. 

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As Obvi grows, its dedication to top-notch collagen supplements and a lively community remains unchanged. 

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With smart influencer partnerships, precise ads, a user-friendly site, and imaginative emails, Obvi stands out in health and wellness. 

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What's next for Obvi? How will Obvi keep its fans engaged? Stay tuned to see Obvi's continued success!

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