Here is a short summary of Tommy Knapp’s talk at the Industry Boot Camp this week.
Tommy founded Club Sportswear, a beach volleyball line, in the 1980’s while a student at USC.
He also was a co-founder of Honolua stores and clothing line out of Hawaii, which is now owned by Billabong.
Tommy is now an Assistant Professor of Clinical Entrepreneurship in the Lloyd Greif Center for Entrepreneurial Studies at the Marshall School of Business at USC.
New brands
Tommy shared what former Hobie owner Dick Metz told him when Tommy first tried to sell Dick his Club Sportswear line:
– Do you have something unique?
– Have you created demand?
– Can you show a benefit to customers for your brand?
Tommy said a brand must know what have a “secret sauce” and needs to ask itself:
– What is our secret sauce
– What is our differentiation?
“If you don’t know, you are in trouble,” he said.
One of the biggest problems for new brands is the overrated value of “bro,” he said.
Tommy said he doesn’t think there’s any value in giving your product away for free.
“You get BS feedback,” he said, and people don’t value what they get for free.
“If you are a premium brand, why are you giving it away for free?” he said.
He also said it hurts retailers, because all those people who are getting stuff for free are not going in and buying your brand in a store.
See Page 2 for his retail observations, more
Retailers
Tommy said as he visits shops in different cities, he’s come to think there’s not enough differentiation between core shops, especially as more brands do similar buildouts on store floors. (Sanuk’s John Vance echoed this sentiment on a different panel.)
While it would be crazy not to sell big brands, Tommy said stores should try to keep their unique vibe and look.
Stores should also:
– Be regarded as a leader in their area
– Provide an authentic customer experience
– Have a willingness to be different
Tommy said if he was dropped in front of a shop in some random town, he should be able to go in that shop and know where he is.
Maybe at this point, carrying snow is a point of differentiation given how so few retailers are carrying snow these days, he said.
The corporate life
For those who work at companies, Tommy said they need to switch their mindset and realize they really are working for themselves.
Research shows most people today will have 11 careers, and Tommy thinks that number will be even more.
Takeaways
– Be willing to get dirty. Get out and away from the computer.
– Authenticity is key
– Take risks to gain rewards
– Benefit your customers
– What’s your secret sauce?
Words of wisdom
From Tommy’s grandmother, who recently passed away at 102:
“Be kind and have fun.”
