Key Takeaways:
- Aloha Collection’s VP of Sales Matt Davis said its wholesale business is on pace for strong growth this year, driven largely by repeat purchases from existing accounts.
- The brand is expanding its licensing lineup with a Disney collection launching in May, building on earlier partnerships including Hello Kitty and collegiate programs.
- California is emerging as a key growth market for the brand, both in retail growth and new customer acquisition.
Aloha Collection was one of the busiest booths at Surf Expo, and VP of Sales Matt Davis said the wholesale numbers back that up. In an interview at the show, Davis talked through the brand’s growth, its new Disney license, and where the retail side is headed next.
A Busy Show for a Growing Brand
Davis said the brand has been “really blessed” by the level of retailer support at this year’s show, the payoff of roughly three and a half years spent building relationships in the region. For Aloha Collection, Surf Expo has become a chance to get face to face with retailers who don’t always get to handle the product in person.
“It’s a nice time to actually connect with them,” Davis said.
Regional accounts include Ron Jon Surf Shop, Diver’s Direct, Island Water Sports, West Coast Surf Shop, and Red Dog, among others.
Disney License Headlines New Product
The big news at this year’s show was Aloha Collection’s new Disney license, launching in May. The collection had been teased about a month before Surf Expo without physical samples, so this was buyers’ first look at the actual product.
Disney adds to a licensing lineup that already includes Hello Kitty and a couple of collegiate partnerships. Back in June, the brand also launched a collection tied to the live-action “Moana” movie, which took off at its Disney Springs store in Orlando.
Bags and Back-to-School Lead the Categories
Bags remain Aloha Collection’s top category. Tyvek, the brand’s signature material, still makes up the majority of that business, with a newer nylon line, introduced about two and a half years ago, also gaining ground. Within Tyvek, the Day Tripper tote is the top seller, followed by a small pouch style.
Backpacks are pulling more weight too. Davis said the category, built on in-house hand-drawn prints, is now in its second season and has grown into one of the brand’s top two or three categories during the June-through-August back-to-school run.
“It really created, and I think added a lot more life to back-to-school,” Davis said. “That was otherwise sort of this forgotten-about category and season, and it’s proven extremely successful for us.”
Aloha Collection had one of the busiest booths at the show. Photo by SESO.
Wholesale Growth Fueled by Repeat Orders
Davis said wholesale revenue should be up 40% to 50% this year, with much of that coming from existing accounts ordering more often than they used to.
“We’re seeing our average accounts that maybe bought with us one and a half to two times last year are buying with us more than five times now,” Davis said.
California and Florida Drive the Next Push
The brand is putting more resources into California and Florida, from grassroots marketing to retail partnerships. Davis mentioned talks with Ron Jon Surf Shop about building out a dedicated Aloha Collection shop-in-shop as one example.
Over the past month, Davis said, California became the brand’s top state for new customer acquisition, based on data collected both online and in stores. He said the brand’s business with California retail accounts is set to double this year, with its own direct-to-consumer stores also performing well.
Hawaii Roots Remain Core to the Brand
Hawaii is still central to Aloha Collection’s identity, backed by a program that gives 5% of proceeds to Hawaiian Island Conservation Funds.
“I’ve never seen what we’ve been able to do in Hawaii, and maintain in Hawaii,” Davis said, pointing to the brand’s staying power with local shoppers even as tourist demand has grown alongside it.
Aloha Collection runs seven owned retail stores, three in Hawaii and four on the mainland: Encinitas, Calif., Newport Beach’s Lido Marina Village, Calif., the Malibu Country Mart, Calif., and Disney Springs in Orlando.
Independently Owned and Still Growing
Aloha Collection is still independently owned and operated, with no outside money in the mix. The company brought on its first CEO about two years ago, and Davis said that’s when net income really started climbing.
Davis said the decision by the brand’s leadership to invest in building a wholesale team is really paying dividends for Aloha Collection.
“We were able to structure a sales team, build sales reps, and create a sales management structure and in-house sales support,” Davis said. “We’ve really been able to see the efficiencies of supporting our wholesale accounts, in addition to building those relationships, work for us.”
