Citymouse

How Alexandra Rutkay Turned Citymouse Into a $635K Business in a Year

Founded By

Alexandra Rutkay

Monthly Revenue

$53K

Starting Costs

$8K

Founders

Employees

2 (est.)

Profitable

Yes

Year Started

2022

Customer

B2C

Founded By
Alexandra Rutkay: Monthly Revenue
$53K: Starting Costs
$8K

Founders
1: Employees
2 (est.): Profitable
Yes

Year Started
2022: Customer
B2C

Who is Alexandra Rutkay?

Alexandra Rutkay, founder of Citymouse, is a New York-based makeup artist who turned her personal frustration into a thriving business; she is a college dropout and cancer survivor aiming to build generational wealth for her family.

What problem does Citymouse solve?

Citymouse solves the problem of carrying toddler essentials stylishly, offering moms sleek and practical mini-diaper bags that avoid the typical bulky, unattractive designs.

How did Alexandra come up with the idea for Citymouse?

The idea for Citymouse began with a simple frustration that many parents can relate to. Alexandra Rutkay, a busy parent herself, realized one evening that her elegant Saint Laurent crossbody bag was too small to carry essential items for her toddler, while her diaper bag was bulky and inconvenient for a casual dinner out. This led her to dream up a more stylish and compact diaper bag specifically tailored for parents on the go.

Rutkay didn't just rely on her intuition; she researched and connected with a manufacturer through Alibaba to start creating samples. This involved a significant investment of her personal savings and credit, demonstrating her commitment and belief in the concept. Her initial design took into account fashion and functionality, and she paid attention to customer feedback, which helped her refine the product further, incorporating features like interchangeable straps for versatility.

Despite facing personal health and financial challenges, Rutkay was determined to succeed. Her experiences taught her resilience and the importance of listening to her instincts. This journey wasn't smooth, but it instilled in her a sense of purpose and urgency to create something lasting, particularly as she pondered the legacy she wanted to leave for her son. These challenges transformed into valuable lessons about perseverance and adaptation in the face of obstacles.

How did Alexandra Rutkay build the initial version of Citymouse?

Alexandra Rutkay built Citymouse by focusing on creating a mini-diaper bag that was stylish and functional. The development process began by sourcing a manufacturer through Alibaba, where she invested $8,000 to produce initial samples. The first prototype, made of shiny regenerated nylon, took more than six months to sell, but Rutkay used this time to iterate, adding features like interchangeable straps. The journey wasn’t without its challenges; balancing her time between a demanding career as a makeup artist and her budding business proved tough, and initial sales were slow. However, her dedication paid off when two reviews of her bags went viral on TikTok and Instagram, leading to rapid sales and necessitating a quick procurement of an additional 1,000 bags from her Chinese manufacturer.

What were the initial startup costs for Citymouse?

Product Samples: The founder, Alexandra Rutkay, spent $8,000 on ordering samples from a manufacturer, funding this with $3,000 from her checking account and $5,000 on a credit card.
Marketing: This year, $25,000 was spent on Facebook ads to maintain and grow Citymouse's presence on social media platforms.

What was the growth strategy for Citymouse and how did they scale?

Citymouse experienced significant growth primarily through social media platforms like TikTok and Instagram. Two glowing reviews of their bags went viral on these platforms, which led to Citymouse selling out its initial inventory of over 500 bags, generating approximately $53,000 in sales within three days. This momentum was maintained by leveraging the power of social media referrals, which contributed to about 90% of their business. Social media presence remains strong with Citymouse boasting 32,600 TikTok followers and 16,000 Instagram followers. These platforms are used not just for advertising but also for engaging with their community, which maintains high visibility for their products.

embed:tiktok

Why it worked: Social media platforms, particularly TikTok and Instagram, excel at rapidly increasing brand visibility through viral content. Citymouse's appeal lies in the visually engaging and shareable nature of user-generated content, as positive reviews from customers can spread quickly among users. The viral nature of these platforms helped Citymouse gain immediate and wide-reaching attention, directly translating to sales increases and customer engagement.

Facebook Ads

Citymouse also invested in paid advertising, spending $25,000 on Facebook ads in a year to sustain and amplify their online presence. These ads targeted potential customers who were likely to be interested in the fashionable diaper bags Citymouse offered, converting them into buyers by promoting the products' unique features and stylish design.

Why it worked: Facebook ads allow for targeting specific demographics, which means Citymouse could reach parents looking for stylish yet functional products. The ads helped not only to maintain a steady flow of new customers but also to increase brand awareness among a larger audience. Considering Citymouse’s growth trajectory, these ads supported the momentum initially generated by viral social media content.

Product Reviews and Word of Mouth

Product reviews played a significant role in Citymouse's growth. The initial major sales boost was triggered by positive reviews on social media platforms. Existing customers' feedback has been a continuous endorsement of the product, leading to new customer acquisitions through word-of-mouth.

Why it worked: Word-of-mouth marketing is powerful as it represents authentic customer experiences shared with potential buyers. Positive reviews and recommendations from fellow parents have a credibility that traditional advertising can't match, encouraging trust in new customers to make a purchase decision.

By leveraging these channels effectively, Citymouse capitalized on a combination of organic and paid growth strategies to create a strong and sustainable market presence.

What's the pricing strategy for Citymouse?

Citymouse prices its crossbody bags at $78.99 and mini backpacks at $179.99, targeting fashion-conscious parents with stylish, functional designs.

What were the biggest lessons learned from building Citymouse?

Power of Social Media: The viral moment on TikTok and Instagram was a game-changer for Citymouse, showing that social media can rapidly boost a business's visibility and sales. Aspiring founders should harness these platforms to reach a wider audience quickly.
Adaptability and Persistence: Despite facing initial slow sales and personal challenges, Rutkay persisted and adapted by leveraging social media feedback and trends, like the hot pink bags for the "Barbie" movie launch. This highlights the importance of flexibility and not giving up when sales are slow.
Support System Matters: Rutkay brought her husband into the business full-time, emphasizing the value of having a supportive team. Founders should consider the strength of their support network and involve trusted individuals to share the workload and foster business growth.
Resilience in Adversity: Rutkay's experiences with cancer and personal loss underscored the need for resilience in entrepreneurship. Her determination to build generational wealth despite challenges is a lesson in how personal adversity can fuel business ambition.
Focus on Core Values: Rutkay focused on creating a brand that aligns with her personal values and lifestyle needs, showing that a strong "why" can carry a business through tough times and resonate with consumers.

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