In today's dynamic world of entrepreneurship, we had the pleasure of speaking with Chris Stine, a visionary entrepreneur who ventured into the competitive sunglasses market with his brand, Foldies. Coming from a 20-year career in finance and banking, Chris's journey began amidst the uncertainties of the COVID-19 pandemic. His story is not just about adapting to change but also about identifying and capitalizing on unique opportunities. In this insightful interview, Chris shares his experiences, challenges, and the strategic decisions that have shaped Foldies' journey. From balancing a day job to navigating the intricacies of e-commerce and branding, his insights offer a valuable perspective for anyone looking to make their mark in the entrepreneurial world.
Chris Stine: My career in the finance banking industry, spanning over 20 years, took an unexpected turn during COVID. That uncertain period made me question our jobs and future roles, leading me to explore businesses that aligned with my entrepreneurial spirit. I've always been drawn to the concept of creating something from nothing, building a legacy or even a billion-dollar public company. This passion initially led me to commercial banking, where I enjoyed working closely with business owners.
In my search, Foldies caught my attention as a unique venture in the sunglasses market. Before discovering Foldies, I had looked at various businesses, including Pop-a-Shot in Salina, Kansas, but nothing resonated until I came across Foldies. Its uniqueness in the market, especially as a product not widely explored by major players, presented an exciting opportunity. Owning Foldies for three years has been a significant hustle, balancing it with my day job. The sunglasses industry is extremely competitive, and there have been numerous lessons along the way. If I could start again, I might choose different paths, but these experiences have been integral to my entrepreneurial journey.
Chris Stine: Taking over Foldies involved a steep learning curve. The original founder, a skilled branding expert, had done much of the groundwork. He established the brand, set up the website, and handled manufacturing and product creation. When I took over, the business was in a state where it could virtually run itself. However, the challenge was integrating my expertise in sales and finance into this new venture.
The initial strategy focused heavily on marketing and advertising, pouring substantial funds into growing the brand. But after a year, I realized competing with giants like Ray Ban or Oakley in advertising spend wasn’t practical. This led to a shift in strategy towards organic growth, leveraging social media, influencers, affiliates, and, notably, corporate sales. Targeting companies for incentive trips and gifting programs proved fruitful, creating a successful B2B element. This approach not only brought our product into many hands but also fed back into our B2C segment. A recent deal where we distributed 1200 pairs of sunglasses is a testament to this strategy’s effectiveness. It’s a straightforward way to expand business, reaching new customers and fostering organic growth.
Chris Stine: I think if I had an unlimited supply of capital, I would purchase as much inventory as possible from overseas, lock it down, and experiment with pricing through sales and Amazon pricing. However, I am limited by the amount of inventory I have. It doesn't make sense for me to offer crazy sales on a limited inventory because the effort and time it takes to buy inventory and ship it isn't worth the return. It's become a bit of a headache because I handle everything from sales to shipping. We don't have any employees right now, but I hope to hire some in the future to help take the business to the next level.
Chris Stine: Absolutely, the vision for Foldies can take two distinct paths. One possibility is to build the brand to a point where it becomes attractive to larger players in the market, such as private equity firms looking to compete with giants like Luxottica. While it's uncertain if Luxottica would be interested in a brand like ours, there are certainly other entities in the market that might see the value in what we've created.
The other path is more personal and focuses on legacy. I could continue to build Foldies into a self-sustaining business, one that could be passed down to my children. I have four kids, and I'm passionate about not pushing them towards traditional education unless they pursue specific professional degrees like medicine, law, or accounting. My hope is to offer them a business that provides for them, a venture that they can choose to lead if they wish. This way, they have a secure foundation, either from the sale of a successful business or from inheriting a thriving company. The ultimate goal is to ensure they don’t have to worry about their financial future.
Chris Stine: What really keeps me going every single day? It's when those big sales roll in, when I see folks actually buying and bragging about Foldies on Instagram. It's something else, really. Being here in the Midwest, in Overland Park, Kansas, it's super cool to see someone local pick up a pair of our sunglasses, someone I haven’t personally reached out to. They're finding us on their own, you know? We're doing really well on the coasts – California, New York, and also big states like Texas and Florida. It's pretty cool to see our brand catch on in these major areas.
I find it kind of hilarious when people think I came up with this foldable sunglasses idea. It kind of points to the biggest thing we’re working on – getting people to understand what Foldies is all about, why it's different. Brand recognition is a real challenge. People often weigh whether to spend more on big names like Ray Ban or give a new player like Foldies a shot. It’s tough because a lot of sales slip through our fingers due to this. And the thing is, most people don't realize, but the sunglass industry, it's pretty much monopolized. You've got these big names like Oakley, Ray Ban, all under this giant like Luxottica. They're the big fish, and they pretty much set the market. Keeping up with them, trying to carve out our own space in this industry, that's what gets me up in the morning. It's a challenge, but it's also a huge opportunity for us.
Chris Stine: 2023 has been a standout year for us, marked by significant growth over 2022. Purchasing the business during the uncertain COVID times was a leap of faith. There was so much unknown about the future of businesses and the economy. Despite these challenges, we've managed to see consistent growth each year, which has been a huge source of encouragement. It's reinforced my belief that I invested in something with real opportunities. As we approach the end of the year, I'm confident 2023 will close on a strong note. Our business model splits between Amazon and our website. Amazon is set to grow by about 15% to 20%, but it's our website that's really taking off, with growth projected around 60%. While Amazon involves more costs like commissions and warehousing fees, everything on our website is more profitable as I control the advertising spend. The only fixed cost is manufacturing the sunglasses, but then we have shipping and email costs, along with other expenses for organic growth.
Looking ahead, the focus on corporate opportunities is set to be a game-changer for us in 2024. I believe this will drive our most significant growth, especially as we tap into reactive growth from these large-scale deals. For instance, getting our sunglasses into the hands of a thousand people through a corporate deal can lead to a substantial repeat purchase rate, estimated at around 15% to 20%. That's the power of putting Foldies in as many hands as possible – it sparks interest and drives sales. So, my primary goal for 2024 is to target the corporate sector aggressively, getting in front of event coordinators and HR professionals who can make big purchase decisions. I'm planning to attend several conventions, particularly targeting the golf industry, which is ripe for our product. Getting Foldies noticed by the right people at these events is my ultimate goal, and I'm optimistic about the impact this strategy will have on our business.
Chris Stine: Absolutely, I wouldn't discourage anyone from starting their own business. It's crucial, not just in America but globally, to step out from under someone else's control. The freedom to make your own decisions daily, without a boss dictating your schedule, is incredibly empowering. Enjoying what you do is vital. Many people dislike their jobs but stick with them for financial security. If you're considering entrepreneurship, research is key. Find an industry that's in need of more competition, but be wary of entering overly saturated markets, like sunglasses.
Today's branding has evolved into something more viral, dominated by platforms like Instagram, TikTok, and Facebook. It's no longer just about putting your product on TV; it's about engaging with consumers in new, dynamic ways. For those looking to start their own brand, I suggest developing a unique concept. There's a strong need to support small businesses, even though it can be more challenging due to higher costs associated with smaller manufacturing orders. America was built on this spirit of independence and self-support, and I believe it's crucial to return to those roots, supporting ourselves and smaller enterprises, rather than just the large, established companies.
