Twelve Days of Commerce: #9 Hugz

In 2022, shortly after launching Igloo Media, a team reached out to us through a mutual recommendation, called Hugz. This was a true “starting from scratch” project with a long direct-to-consumer roadmap planned ahead. The wonderful ethos of the brand bundled with incredible operators (Shoaib Kabani & Rohan Thakkar), was amplified by the powerful voice and creative powerhouse of its remarkable founder, Lexi Hensler.

As Steve Jobs once said, "The most powerful person in the world is the storyteller. The storyteller sets the vision, values, and agenda." What I loved about Hugz is that, at its core, it’s Lexi’s story. It’s a brand that addresses the mental health challenges of the modern age, a topic close to Lexi’s heart, while using Lexi’s loyal following as its primary driver for awareness.

Lexi’s Mission & Hugz

Lexi isn’t just the founder of Hugz; she’s also a passionate user of her own product. Having openly shared her struggles with anxiety, depression, and mental health, Lexi connects deeply with her loyal following, particularly younger followers facing similar challenges. Hugz combines the simple elements of weight and comfort while emphasizing its core ergonomic benefits of being portable and, of course, super cute. Each animal weighs 3.8 lbs and can be warmed in the microwave or cooled in the freezer.

The trigger for Lexi’s idea dates back to 2018, when a friend gifted her a weighted blanket, which completely transformed how she managed her anxiety levels. A Penn Medicine study highlights how weighted blankets stimulate relaxing biological responses, including activating one’s parasympathetic nervous system and releasing serotonin and oxytocin, similar to the comforting effects of a hug. Inspired, Lexi began testing her idea with a weighted llama (named Lexi), and after its immediate success (without any PPC), she decided it was time to expand her collection and gradually launch a broader roster of furry friends.

Leveraging your biggest weapons

The impact of content creators and influencer marketing goes without saying, and needs little introduction. However, it’s the method behind the madness that we see vary a lot with creators launching their own product lines and for every creator that “win” is defined differently, some of which I’ve written about before (Chasing wins not value in e-commerce). Notably, it’s not uncommon for venture-backed influencer brands or celebrity-led projects to focus on racing toward an exit (or a win), often burning as much cash as possible to fuel top-line growth while neglecting fundamentals.

When Hugz approached us a couple of years ago, their approach stood out for being far more refined and pragmatic, with a clear focus on building long-term value by prioritizing profitability and efficiency - an ethos we shared as founders. Over the past twelve months, Hugz has seen incredible growth in both paid acquisition and organic sales, up 240%. Every aspect of their e-commerce engine is starting to compound, driven by the immense platforms Lexi has built over the years.

With 5.58 million followers on YouTube, 2.4 million on Instagram, and 10.4 million on TikTok, Lexi’s presence on social media is truly impressive. However, maintaining a steady flow of high-value content across all channels is a demanding process, especially when taking on the responsibilities of a creator to a brand that requires constant iterations and a robust creative strategy. Not to forget executing responsibilities as an ambassador for other brands as well. Hugz exemplifies the benefits of a creator-led business, with Lexi acting as the creative force behind both paid media (supported by other talented creators and designers) and organic social efforts to drive awareness and traffic to the website.

Exploring new waters in 2025

Hugz represents a landscape of opportunity beyond D2C. While smaller competitors and cheaper, lower-grade alternatives have emerged, Hugz’s growth is a testament to the rising search volume for weighted toys and natural methods to combat stress and anxiety among young adults. This trend not only positions the brand as a leader in its niche but also unlocks significant potential for one channel in particular: Amazon.

With its mass-market appeal, competitive pricing, and growing brand equity, Hugz is perfectly suited for platforms like Amazon and third-party retailers (less so online resellers). The product's strong private-label margins and easy packaging also make it a compelling option for B2B opportunities. Both components remain under close discussion as Hugz looks to push the limits of its growth next year and surpass expectations another year running.

As Lexi’s reputation as a leading advocate for metal health awareness continues to compound, I’m excited to see how far Hugz can go in 2025 with Lexi at the wheel of all things creative, while the management teams strive to execute on even more ambitious goals for the new year.