🔍 The Madhappy Playbook To Become The New Supreme

Starbucks has more than 1 billion in revenue sitting in unused gift cards (article link at the end). By not using up the gift cards, apparently the norm, consumers are loaning money to Starbucks interest-free. Learning from this? Offer gift cards.

And…You can also learn from today’s case study on Madhappy. Enjoy!

So, what do companies like Super Coffee, Imperfect Foods, Care/of, and Topicals all do exceptionally well? 

They leverage UGC to fuel their paid media and organic social. 

And they use MiniSocial, and here's why: 

• All the content from their campaigns is fully licensed right out of the box. 
• Campaigns are fully managed and designed to take 10 minutes or less to spin up. 
• Activations on Instagram or TikTok match or beat traditional influencer activations in terms of reach and engagement. 
• MiniSocial is accessibly priced, starting at $1.7k, thanks to your Marketing Examined discount 

You can get converted here.

Madhappy is a Los Angeles streetwear label founded in 2017, selling apparel like hoodies and t-shirts. It has attracted $1.8 million in funding from the LVMH group (its first investment in a streetwear brand) while having Gigi Hadid and Cardi B among its many famous fans.

What made Madhappy stand out in the crowded streetwear space? It’s undoubtedly contributed to the brand’s relentless focus on mental health issues.

De-stigmatizing mental health is not an afterthought or a nice-to-have initiative, it’s embedded in the brand DNA from day one. The brand was created from the emotion “mad happy”, products were then designed to express that emotion, uplift people, and build positivity. Other than making statement wears with cheery slogans like “Local Optimist,” Madhappy also launched its original mental health resources, such as the local optimist blog, the Madhappy podcast, and even its own counseling hotline. 

Through these endeavors, more than selling its products, Madhappy fostered a community standing behind its mission. People respond to the brand on a deeper level, well beyond apparel, because Madhappy is built on the value of inclusivity and optimism. The brand represents a relatable lifestyle. It is a vessel for identity signaling.

By wearing Madhappy, consumers signal their belonging to a community that promotes de-stigmatizing mental health. This is especially important for a brand targeted at Gen Z and millennial shoppers.

For Gen Z, their purchasing decisions are an organic extension of their self-identity, not just for expressing taste but more for reflecting their values. 

Other beloved brands by the cohort, like Starface (celebrates imperfection) and Parade (embraces body positivity), also distinguished themselves for what their products stand for.

Having attracted a fair share of celebrity followings, Peiman (one of the Madhappy co-founders) says they've never paid for influencer marketing. Celebrities and influencers come to them organically.

Celebrities & influencers construct their self-image by using brands with associations they wish to attach to themselves. The proof of their stance on the mission to make the world a more optimistic place is the Madhappy sweatshirt they wear. Madhappy gives them a voice in a new and creative way.

Madhappy gained exposure to a bigger audience also from its series of brand collaborations. It has launched limited drops with brands like UGG, VANS, Beats, and Columbia Sportswear. 

Jen Rubio, Co-Founder of Away and investor of Madhappy, said that she was attracted to Madhappy because it’s growing into a movement focused on spreading positivity that feels like they are saying “hey, we’re making it… come along for the ride”.

Through collaborations with Madhappy, other brands joined the ride —  signaling they are allies of the movement even though their own brands were not built around the mission.

The Madhappy playbook might remind you of another streetwear brand, Supreme. 

Valued at $1 billion dollars, Supreme also built a loyal fanbase through exclusive brand collaboration, celebrity endorsements, and identity signaling. 

However, Madhappy takes a completely opposite stance to Supreme.

While Supreme fueled its brand with hype and exclusivity with emptiness at its core, Madhappy adopted the opposite position of promoting an inclusive lifestyle and optimism. 

While Supreme stayed in the realm of selling fashion, Madhappy transcended into their community’s personal lives and how they feel.

Wearing Supreme signifies that you belong to an exclusive club with edgy fashion taste; wearing Madhappy signifies you are in a community that promotes de-stigmatizing mental health.

Madhappy is the new Supreme. But unlike Supreme, which has lost its edge, Madhappy will “stay cool.” Because hype fades, fashion tastes change, and the movement focused on spreading positivity endures.

• Starbucks has 1 billion sitting on gift cards
• FYPM, an app for creators to review and compare brand deals, has a list of the Top 10 Best (& Worst) Brands to work with in 2022
• More on FYPM (F*ck You Pay Me) — great name!
• The ‘Enshittification’ of TikTok
• Resale program might actually be a lucrative sales opportunity

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And just like that, we've wrapped up the week.

We got a lot of more coming your way.

Alex & Chi