In the heart of Kansas City, Hayley Besheer Santell, the founder and designer of MADI Apparel, has crafted a brand that transcends the norm of the fashion industry. Her visionary approach, born from a deeply personal connection to domestic violence and a startling realization about the urgent need for underwear in shelters, has propelled MADI Apparel into a beacon of hope and empowerment. At MADI Apparel, every item sold carries a promise - a donated pair of underwear to a woman in need, echoing Hayley's dedication to comfort, confidence, and change. Beyond this core mission, Hayley's commitment to ethical production and community engagement shines through. MADI Apparel's products, meticulously crafted in Kansas City by a team of skilled artisans and local businesses like KC Fashion Tech, are a testament to the power of sustainable fabrics and responsible manufacturing. With over 9,000 donations across multiple countries, MADI Apparel is not just a clothing brand; it's a movement, championing change in all aspects, from environmental responsibility to empowering local women with valuable skills through their MADI Makes program. It's a story of inspiration, impact, and the relentless pursuit of making a difference in every area possible.
Hayley Santell: Sure, Chris. I'm Hayley, and I founded MADI Apparel in 2013. My journey began with a realization – underwear is the most needed but least donated item of clothing. It's something most people aren't aware of, and I wasn't either. Initially, I didn't set out to be an entrepreneur; my background is in fine arts and journalism. After university, I stumbled upon this fact and felt compelled to address this need. Around the same time, a family member's experience with domestic violence highlighted the dire need for new underwear in shelters. This inspired the creation of MADI Apparel, which stands for 'make a difference'. We commit to donating a pair of new underwear for every item sold.
But my vision went beyond just donation. I noticed some buy one, give one companies might compromise on ethics or sustainability in their production. We chose to be different. We use sustainable materials, mostly biodegradable, and source overruns from larger companies. Importantly, we ensure living wages for our sewers, joining a small percentage of brands globally who do this.
When I started at 25, I was new to business, sustainability, fashion, and design. I've had to learn about everything from product design to manufacturing. Ten years on, my journey has been about immersing myself in learning and growing. This year, I wrote 'The Art of Ethical Fashion' to share what I've learned. It's been an incredible journey from knowing very little to gaining a wealth of knowledge and experience in these fields.
Hayley Santell: That's a great question, Chris. Back in 2013, the landscape was different. There weren't many sustainable brands, so we didn't have much to model ourselves after. We had our brick-and-mortar store from the start, which allowed for direct interaction with customers. Early on, many people were unfamiliar with concepts like bamboo fabric, organic cotton, or what it meant to produce something ethically. Now, the industry is more aware, but it's also facing challenges like greenwashing. The market has shifted, becoming almost saturated with ethical, sustainable brands.
Our initial marketing challenge was to educate customers about what we were doing and why it was unique. We stood out not just for our donation model but also for our focus on making a difference in all aspects. Today, our strategy has shifted towards differentiating ourselves in a crowded market. We've been focusing on storytelling, seeking grants and partnerships to increase media attention. We've partnered with an impact media firm, Imagin5, to create a film about our work, emphasizing transparency and authenticity, which sets us apart from other brands.
Social media and email marketing, particularly through Klaviyo, have been pivotal in building personal relationships with our customers. Our brick-and-mortar store continues to be crucial for maintaining person-to-person connections, with some customers being with us for over eight years. Despite the challenges of 2023, we're constantly trying and experimenting. It's been our toughest year yet in retail, echoing a sentiment shared by many small businesses. With economic challenges and market saturation, it's a continual learning process, but we remain committed to our mission and values.
Hayley Santell: That's a good question. When we started, the advice I got was to use as many avenues as possible: wholesale, brick-and-mortar, online, partnerships, and even pop-ups. That was our original strategy, and it still is to some extent. Initially, we focused heavily on wholesale, but being a small business, we couldn't expand into large companies immediately. We did get carried in Von Maur, a Midwest department store chain. But a significant turning point for us was our wholesale relationship with the newly renovated Kansas City International Airport, which opened in early 2023. That presence has been pivotal for us, especially since our products are comfortable basics ideal for travel. The travel market has really been a blossoming area for us.
In the beginning, we launched a Kickstarter in 2014, raising over $20,000 to start debt-free. This led to the establishment of our online store and a brick-and-mortar location about six months later. I believe having a brick-and-mortar store from the start, especially if you have a unique business model, is crucial. It allows you to tell your story more effectively and engage with the community. I've seen many online-only businesses struggle to gain traction without significant funds.
Now, a decade later, the focus on the travel market via wholesale, specifically our airport presence, has been a key strategy this year. Before, our approach to wholesale was less directed, but now we're more strategic, targeting larger partnerships that make sense for our brand. It's about finding the right fit rather than trying to be everywhere. We learned this the hard way, but it's been a valuable lesson in focusing our efforts and understanding our market better.
Hayley Santell: Sure, Chris. Cash flow is definitely our number one challenge, like many other companies. We've tried various things to manage it. When we started, we only had six styles of underwear – that's all we could afford for our first manufacturing run. As the years went by, we introduced one to two new products annually. At some points, we even launched up to ten new products in a year, expanding our range to over 25 variations.
But last year, we scaled back to just the basics. Having a larger inventory for a while was necessary for growth and getting our brand out there, but it also locked up our cash. This is a common issue for businesses – needing to expand but also needing to manage resources. Our wholesale partnership with Kansas City International Airport has been a lifesaver in this regard. They place regular large orders, which turns our inventory quickly and gives us a steady cash flow every month or two.
For any small business owner, I'd recommend having a mix of direct sales and wholesale. It helps you not get too locked up in one area. But scaling is still a challenge. We've managed with small personal investments, keeping us mostly debt-free. However, we don't have a lot of cash for significant scaling moves. We're exploring options – maybe investment, a partial sale, or grants. If we do get more funding, we'd likely invest it in expanding our presence in the travel market. With the current economic climate, where people are cutting back on spending, targeting the travel industry seems like a smart move for us next.
Hayley Santell: For me, the motivation has always been rooted in why I started MADI Apparel. It's not just about making money; it's about something bigger, involving other people, and addressing a need. This sense of purpose is vital, not only in business but in life. If your only goal is making money, you'll find it's not enough for true happiness. The real driving force for me is knowing that every sale means we can donate underwear. There's a long list of organizations waiting for these donations, and seeing the impact on the recipients is incredibly motivating. It might seem simple, but it can profoundly affect someone's life, giving them a fresh start in various situations.
Another source of motivation is our team. The wages we provide help them support their families. For many of our cutters and sewers, we are their biggest or only client. There's also the educational aspect that motivates me. Through my book and potential future writings, I aim to inform people about things they often don't know – like the process of ethical manufacturing or the effects of different materials on the body. Most people walking into our store don't have this knowledge. Sharing this information, educating consumers, and making even a small difference in someone's life, whether it's through our products, our donations, or our employment practices, is what keeps me going. It’s about creating a positive impact in whatever way we can.
Hayley Santell: 2023 has been a rough one. I've been upfront with our customers and friends about it – it's been our hardest year in retail yet. After dealing with Covid and everything that's been happening in the economy and inflation, it's been challenging. We try not to get too discouraged, though, especially after talking with other small businesses who are facing similar issues. A key highlight for us this year has been our partnership with the Kansas City International Airport. They opened a new version in February, and that's when we began being carried there. This partnership has essentially saved us in 2023 and, without it, our sales would be significantly lower.
Reflecting on our journey, the pre-Covid years were full of momentum, but post-the pandemic really set us back. This year felt like a period of recovery, like putting our feet back on the ground after a fall. Heading into 2024, there's this feeling of change, though I can't quite put my finger on what it might be. Whether it's considering new investments, changing our business model, or altering how we operate, something new is definitely brewing. The best approach, I've found, is taking it one day at a time – that's what I tell myself and advise others. It's about moving forward steadily and being open to those moments of sudden clarity and opportunity. That's my mindset for 2024.
Hayley Santell: Definitely, Chris, just get started, and don't be afraid. It's crucial to raise funds to start off debt-free and make a plan. Your plan won't necessarily unfold exactly as you envision, because things become clearer once you actually start. Having emergency funds for cash flow is essential. I'd advise caution with investors early on because your brand and direction might evolve, and you don't want to be locked into a partnership prematurely.
Another key piece of advice is to have a presence beyond the online world. Whether it's a brick-and-mortar store or even a section within someone else's store, it's important to have a space for in-person interactions in your community. These people become your supporters, help fund your business, and get behind your brand in a way that's hard to replicate purely online. Especially in today's world, where people crave genuine experiences and connections, having a place for one-on-one interactions is invaluable. It's about building a community connection, which is becoming increasingly important.
