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December 14, 2023

Riding the Tide of Success: Chris Manley and the Story of Surfside Supply Co.

A Tale of Sand and Success: The Entrepreneurial Journey Behind Surfside Supply Co.

Introduction:

Feel the beach breeze and hear the waves crash? That's the heart of Surfside Supply Co. It's a brand for those who love the coastal life, no matter where they live. Chris Manley started it in 2012, celebrating all the best beach moments – from chilling on the sand to enjoying cool evenings with friends. Though this easygoing vibe extends way beyond the beach - these are clothes that go from casual office to parties to BBQs to couch.

Chris has loved shores since he was a kid and wants to share that love through his brand. We're about to get the full scoop from Chris himself, hearing how he turned his beach dreams into clothes we can all enjoy anytime, anywhere.

Chris Manley - Founder and CEO of Surfside Supply Co.

Interview with Chris Manley, Founder of Surfside Supply Co.

Can you share with us how your early experiences shaped your passion for apparel and led to your current entrepreneurial venture?

Chris Manley: Yeah, so I've been doing this about 30 years. I started at a very young age, probably 13 years old. I worked for a tailor in the Bronx, where I kind of picked up my passion for clothes and apparel and how things are made. After graduating from FIT, I began my career at Barney's as part of their training program and spent around six years there before moving on to various roles in merchandising and product development. 

Over the years, I've worked for many reputable brands such as Benetton, Lacoste, Hugo Boss (where I was the head of product for North America), and Nike (GM of Apparel, accessories and licensing at Converse). Thirteen years ago, we started this company because we wanted to create a product that was easy to wear and all about a soft, cozy lifestyle. After spending years in the corporate world, I wanted to focus on something closer to my heart. Although I had a background in contemporary fashion, this new product was more personal to me. It was inspired by my love for the beach, the ocean, and the whole coastal lifestyle. This was my chance to create something that represented my own personal journey. And that's how we ended up where we are today.

Reflecting on your transition from working in large corporations to founding your own company, how did this shift influence your approach toward product development and business management?

Chris Manley: It's true that every business faces challenges. When you work for a large company, there are many challenges that require a team to solve. However, with a smaller company, you rely more on yourself and your team. We have a great small team, and we don't have the outside pressure from corporate boards or other entities to do certain things. We run the business the way we want to, and every penny we save is every penny we spend and every penny we earn. We're much more cost-conscious than at a corporation, but we can make decisions based on what we want to do rather than what someone else wants. 

For me, the last 13 years have been a time of growth and learning. When you work for a corporation, you can get stuck doing just one thing. However, with our small team, I've been able to touch everything from color and material to sales plans and other important aspects of our business. I've become much more involved with the product and have come to appreciate the importance of a good product and what it can bring to the market. It's a representation of how you feel and what you want to do, rather than someone else's brand.

Over the past decade, how has the marketing strategy for your brand evolved, especially in adapting to the shifts in consumer behavior and the retail landscape?

Chris Manley: When we started, our primary focus was on wholesale, and we sold our products through big department stores like Nordstrom, Bloomingdale, and Saks Fifth Avenue. Gradually, we shifted our attention towards establishing a DTC model and working with specialty stores that were a better fit for our brand. Although department stores helped us initially, our brand has evolved, and now it's more suited to specialty stores and direct-to-consumer sales. Our marketing strategy was centered on being present in 75 department stores, and it worked well in creating brand awareness. Nowadays, we rely on digital advertising through Meta and Google to reach our target audience. We also have partnerships with 300 specialty stores, which are mostly small businesses. We've built strong relationships with them, and we believe in mutually beneficial growth. We don't just sell our products and leave; we help our partners grow with us. Our mentality has changed significantly since our early days.

In terms of sales distribution, how do you balance between wholesale and direct-to-consumer channels, and how has this balance shifted over time?

Chris Manley: We definitely spend more now than we used to, as capturing customers has become more expensive due to the new algorithms. It's not as easy as it was seven or eight years ago when starting a company and selling online was a lot simpler. Nowadays, you need to be a lot more creative in the way you handle things, and the challenges with e-commerce are far greater. So, it's important to have a good balance between brick-and-mortar and e-commerce.

Reflecting on your decade-long journey, what have been the top three challenges you've faced, and how have you navigated these obstacles to sustain and grow your business?

Chris Manley: The marketplace has been affected by the shrinking and closing of department stores, which has been a major challenge. The cost of acquiring customers has also increased significantly. While supply chain challenges were common in the past few years, we are fortunate to have good factory partners that enable us to maintain lower minimums than most. Despite this, the challenges with the consumer remain significant. There is a lot of fast fashion available in the market today, with brands like SHEIN, UNIQLO, and H&M offering trendy-looking products at cheaper prices. However, these products are often of inferior quality. Consumers get bombarded with ads that promote such products, but they may not be aware of the quality difference. Our brand faces challenges in marketing and market spend, making it harder to reach potential customers who are looking for quality products.

From an operational perspective, could you offer any advice on managing cash flow and hiring the right people?

Chris Manley: When it comes to hiring someone, I prioritize their decency as a person over their talent. While I believe that I can teach people about the business, it's difficult to change someone's character, especially when they're already an adult. That's why I focus on assessing their work ethic, communication skills, and personality during the interview process. I try to identify if they can communicate effectively, both verbally and written, and if they're not solely reliant on texting. The value of someone's personality is important to fit in with our culture. However, talent is also a factor that we consider. It's just not the top priority. Our company is a small group that works hard together for eight to ten hours a day. So, it's crucial for new hires to fit in with our culture and understand our common goal. We've had good hires, and we've also made a couple of not-so-great hires. But, for the most part, we've been lucky to have very few people leave.

In terms of cash flow management, we work with factory partners who give us good terms, so we don't have to wait too long to receive payments. For small businesses, credit card payments are common and quick, unlike department stores where we have to wait net 60 days for payment. However, specialty stores mostly pay within net 30 days, and some even pay cash on delivery. To ensure we always get paid, we work with a financing marketplace called Fair. It costs us some money, but we get better financing terms and never get stranded. We try not to overextend ourselves and buy only what we can sell, keeping some extra stock for future sales. Although cost-cutting is important, we focus on being smart about our exposure to risk to avoid losses.

Looking ahead, what strategic steps do you envision for your company to achieve significant growth and expansion in the coming years?

Chris Manley: Yeah. We have a meeting next week with my head of merchant, CFO, and head of marketing to decide the direction of our business for the next five years. It's becoming increasingly difficult for small brands to compete with bigger ones who have more money to spend. Even if you have a great idea, it's almost impossible to start a brand without a couple of million dollars. There are many expenses, such as purchasing products, attending trade shows, marketing, and building a website. These expenses add up quickly. I would like to find a retail partner who wants to invest with us in brick-and-mortar stores because it's essential to tell the full story and create a unique shopping experience. We pride ourselves on the softest, coziest fabrics, and a physical presence allows for experience the fabric firsthand which is what makes people fall in love with the brand. While we have wholesale, we don't have our own brick-and-mortar stores. One of my goals over the next few years is to change that.

What makes you stay motivated every single day?

Chris Manley: I love working on a product, and we have a very young team here, so I love mentoring young people and bringing them along and watching them grow and helping them get to the next level. So if during that period I can change some people's perspective on work and life, that's very important to me. In the meantime, if we can grow the brand where it becomes a bigger brand and makes more money and we can help more people, that would be ideal. But every morning I get up, I come to work because I work with great people and they do great work. And I'm happy and proud that we work together because that's been the most satisfying thing. It's not a very big company. We do a lot of private label, which is where that kind of supports the whole company, and that's the nuts and bolts of what we do. But the brand side is really what we're all passionate about because it's really the fun part of what we do. So balancing those two things is super important.

What advice would you give someone about starting their own brand?

Chris Manley: You’ve got to find what sparks your interest every day. It might not be the right path if you’re in it just for the money. It's crucial to combine your work with your passion. Everyone needs money, but if you can align your work with something you love, that's key. Bet on yourself—it’s your most valuable asset. I started this journey at 45, with nearly three decades in the business behind me. It’s about timing and surrounding yourself with the right team. If you're a product person, partner with a finance expert, and vice versa. Variety in skills is vital; otherwise, everyone's pushing their own agenda, and that can lead to problems. The right mix of talents is essential for growth.

Chris Choi: Cool. That's all I have for today's interview. Thanks for sharing your insight and your story.

Chris Manley - Founder and CEO of Surfside Supply Co.

Key Takeaways:

  • Transition from Corporate to Entrepreneurship: Embracing new challenges and a hands-on approach to product development.
  • Evolving Marketing Strategies: Adapting to changes in retail landscapes and consumer behaviors.
  • Importance of Balancing Channels: Strategic distribution between wholesale and direct-to-consumer models.
  • Navigating Business Challenges: Adapting to market shifts, managing costs, and maintaining product quality.
  • Hiring Philosophy: Valuing personality and cultural fit over talent.
  • Cash Flow Management: Smart partnerships and cautious financial planning.
  • Future Growth Strategies: Exploring brick-and-mortar retail opportunities.
  • Personal Motivation: The joy of mentoring and nurturing a passionate team.
  • Advice to Aspiring Entrepreneurs: Combine passion with practicality and surround yourself with diverse talents.

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