Executive Interview with Kevin Zhang, CEO and Founder Phoenix Technologies
Costco and Sam’s Club are best case examples of thriving retail membership clubs in retail. Kevin Zhang’s dream when founding Phoenix Technologies was to create a similar model for direct-to-consumer retailers. That dream has become a reality as his company help D2C ecommerce businesses turn their one-time sales into high margin, recurring revenue through digital consumer memberships.
Kevin moved to the United States when he was 4 years old and is the product of what he calls “hardworking, traditional Chinese immigrants”. After graduating from Vanderbilt in 2018, he landed, then declined a job with McKinsey, opting instead to satisfy his entrepreneurial urges after some initial success with an ecommerce site built on the Shopify platform. That business grew to over 150 million in online sales and was the springboard for what is now Phoenix Technologies.
Phoenix launched in October 2023 and has been growing at 35% month on month since May 2024. Kevin forecasts that merchants will use the platform to generate $350M+ in revenue for 2025. In this interview, you will learn about the dynamics of eCommerce today and get insights into the future of D2C. You’ll hear about the brutally competitive nature of eCommerce as Kevin talks about knife fights, cold sweats, and how the democratization of the supply chain has made it nearly impossible to create a sustainable competitive advantage.
This interview is part of the CMO Council / Wise Marketer interview series. The Chief Marketing Officer (CMO) Council, established in 2001, is a peer-powered network of more than 16,000 chief marketing executives in 10,000 companies across 120 countries. Membership requires demonstration of marketing expertise, a proven history of accomplishment, and leadership in marketing innovation and digital transformation.
Time Stamps for the Time Starved
1:07 – Kevin’s Founder’s Story
3:58 – Subscription Models in DTC Retail
5:58 – Stat: 80% of DTC Merchants Lack Recurring Revenue
7:55 – Democratizing the Supply Chain
10:34 – How Phoenix is Transforming DTC Retail
16:02 – The Future of eCommerce & DTC Retail
17:47 – Switching Costs & the Idiosyncratic Fit
19:48 – Wrapping Up