PinkCherry, which was founded by Canadian brothers Daniel and Nathaniel Freedman in 2007, has come a long way from its humble beginnings as a home business headquartered on a folding table. In 13 years, they’ve grown to be one of North America's largest e-commerce pleasure product powerhouses. With over 50 employees, a 70,000-square-foot facility in Canada, and a 40,000-square-foot state-of-the-art warehouse in Las Vegas, PinkCherry is on track to make 2020 its most successful year yet.
In a recent conversation with XBIZ, PinkCherry director of sales Erin Sue remarked that employees refer to the company as the “Disneyland of Adult Novelty.” While some may argue this relates to their tight-knit, lighthearted company culture, according to Sue it’s a nod to their incredible product selection. Whatever customers are into they'll find exactly what they need to make their bedroom the happiest place on earth.
Offering upwards of 10,000 items in both their retail and wholesale catalogs is what sets PinkCherry apart from the competition. Sue explains, “We really believe that pleasure is something that everyone should have access to. And that doesn't mean that something at a lower price point is a cheap item or is not good quality. We have the purchasing power to provide premium quality items at every price point for everyone.”
PinkCherry prides itself on making the customer experience top priority and believes this is the cornerstone of their success. Their wholesale and retail websites offer enhanced descriptions and detailed customer reviews for every product. As an e-commerce company, the goal is to mimic the in-person shopping experience as closely as possible “so that [shoppers] can make the most informed decision for themselves and for their partners.” According to Sue, “We want people to know exactly what they're getting; how to operate all the different functions; if it’s waterproof or rechargeable and what it's going to look like when it comes.” Additionally, customer service reps are available 16 hours a day to answer questions and troubleshoot issues.
Tracking sexual health trends helps PinkCherry keep its finger on the pulse of the novelty and lingerie markets. Their Canadian and U.S. consumer blogs are valuable adult sex-education hubs. With an emphasis on the often-overlooked importance of woman’s pleasure, these sites cover topics like exploring outside-the-box sexual curiosities, buying a first sex toy, understanding consent, and more.
“We want to have that outlet that customers can come to. Maybe they're not coming to us for sex toys, maybe they're coming for information, and then that transfers into a purchase,” adds Sue. “It's really about trying to give people the most well-rounded knowledge of the sexual health and wellness industry that we can, because we want people to know about their bodies [and] about each other.”
This same sex-positive sentiment inspired PinkCherry’s recent “Scream Your Own Name” advertising campaign executed in conjunction with WOW Tech Group. Garnering international recognition, Adweek said the outdoor ad located along Toronto’s busiest highway “might be the best-written billboard of 2019.” They later named it one of the top 25 ads of the year. That’s quite an accomplishment for an adult novelty company. It also aligns seamlessly with PinkCherry’s consistent messaging about prioritizing self-pleasure.
From a distribution standpoint, PinkCherry’s retail success is an advantage to wholesale customers. The company never buys items specifically for resale. Every product PinkCherry carries is available both wholesale and retail and tracked in real-time across their websites as shared inventory. Their deep catalog also benefits smaller retailers that have difficulty meeting minimum purchase requirements from brands directly.
Since its fledgling folding-table days, PinkCherry has grown at a tremendous pace and exceeded sales goals year after year. By 2019, they were well-established as an industry leader in Canada and primed to focus on dominating the U.S. market. That year the company reached its goal of matching Canadian sales numbers in the states — a trend that continues to this day.
Sue says, “We’re doing exceptionally well with our growth, our traffic to the site, and our overall revenue in the U.S. We recognize that the population is significantly larger than Canada so there's such an opportunity there for us. We're constantly driving ourselves and challenging ourselves to grow, and a lot of those efforts look toward the U.S. right now.”
In January of this year, CEO Daniel Freedman celebrated a well-deserved 2020 XBIZ Businessman of the Year Executive Award win. The pandemic shutdown a few weeks later didn’t knock PinkCherry off its game. The company’s eye for innovation and growth enabled them to adapt quickly.
“We've had to change, and I believe that we've changed for the better,” Sue said. “We've implemented so many new systems and some really cool new ways that we operate the company to make it more efficient, faster, to make it safer. That goes for our customers as well as our staff.”
The quarantine-prompted adult retail boom is paving the way for PinkCherry’s goal of U.S. growth. Sales have more than doubled thus far in 2020. In terms of new customer acquisitions, Sue sees a unique opportunity, “We recognize that a lot of those customers that are coming to our site are new and we think that it's a really amazing opportunity because it just goes back to our teaching roots and giving people information.”
To convert this burgeoning demand for pleasure products to sales, the company has amped up digital and traditional mainstream marketing. Radio spots are in heavy rotation plus they have a newly launched television commercial. Sue attributes PinkCherry’s quick market adaptability to the flexibility they have as an online-only company.
“I think the beautiful part about being an e-commerce company is if you try something that doesn't work you can change it. If it's great, we keep rolling with it and we make it better.”
Identifying upcoming sexual health trends and leaning into them is one of PinkCherry’s super-powers. What’s the next hot thing?
Sue speculates, “Right now, there's been such a rise in technology, toys and partner play at a distance. You might be in another room. You might be in another country. We're all in this and we've been separated from people and wanting to adapt with that. I think it's only in its infancy, we're only going to see more of this with the brands that we work with.”
