Introduction

I’d first like to introduce myself. My name is Lotte Johannessen, I am a fourth year Marketing and Finance Student at The University of British Columbia, Sauder School of Business. I have had the privilege to work with the Canadian Finance Gal team this summer, working on their own brand and making sure they are staying true to their values. I am writing to reflect on the importance of a small business brand and how staying in your lane is crucial for your company.

A Reflection on Etsy

The topic of brand dilution and the importance of staying in your lane struck a chord with me while listening to a podcast today: “Etsy: Big Commerce or Crafter’s Community”. As a publicly traded company, Etsy’s growth is its top priority, but it seems to be coming at the expense of its original mission. Once a haven for small business artisans, Etsy is now taking a large cut of profits from its sellers, with many mass-produced items overshadowing the handcrafted products that originally set it apart.

“Etsy used to be my go-to spot for unique, handcrafted items made by passionate artisans. I remember buying custom monogrammed baby dishes for friends and family, and hand-painted espresso cups for my son when he was becoming a coffee aficionado. But now? I’m inundated with mass produce items attempting to mask as handmade. Etsy is losing its way, and it’s a stark reminder of how easily businesses can stray from their original purpose.”

Shanalisa Keller, The Canadian Finance Gal

As a small business owner, myself, who creates hand-printed tote bags and apparel, I can relate to the frustration of being overshadowed by mass-produced companies. When Etsy first started, it was all about fostering a community of local crafters. They even sponsored local crafting markets! But now, with their focus shifting toward growth and profitability, it’s becoming something entirely different.

The Risks of Straying

It’s vital to stay in your lane. Etsy is at risk of brand dilution.

• Brand dilution: When a brand diminishes its value. In this case by going against its mission statement of “Keep Commerce Human”. By adding products that are mass produced, they aren’t following their true core values.

Etsy has changed CEOs four times in four years, making it hard to stay loyal to their values and original brand identity. What they’re doing now might provide a short-term growth boost, but it’s costing them their unique competitive advantage: A platform of creatives to showcase their work under company support. Etsy was once the go-to platform for buying from local artists. Now, they’re entering a new industry where Amazon dominates, and Etsy simply doesn’t have the scale to compete.

Master Your Niche

Your brand identity is what sets you apart.

Customers choose your business not just for the products or services you offer, but because your values resonate with theirs. Even though cheaper alternatives exist, they opt for you because they trust your expertise and share your values. Diversifying into areas outside your niche might seem tempting for quick gains, but it can dilute your brand and weaken the trust you’ve built. Your expertise is your strength; maintaining it preserves your brand’s credibility.

Time is a precious resource for small business owners. With limited hours each day, focusing on refining what you excel at is crucial. Enhance your core offering to be more efficient, profitable, and replicable, rather than stretching yourself too thin. This focus helps you deliver high-quality products or services consistently, solidifying your brand’s reputation and maintaining customer loyalty.

Staying in your lane is about ensuring your growth is aligned with your core values and strengths. Success lies in depth, not breadth; avoid letting short-term opportunities steer you off course.

To your continued success;

Lotte Johannessen is our Marketing Maven. She is a fourth year Marketing and Finance Student at The University of British Columbia, Sauder School of Business. She has been working with the Canadian Finance Gal team this summer. When she’s not typing along on the computer, you will find her cuddling with her 3 dogs! If you would like to connect with her, you can find her on LinkedIn!