HippyTree is a relatively newer brand that has gained some attention in the last few years. Started by Andrew Sarnecki and Josh Sweeney in their garage, the brand has managed to break into some key outdoor and surf shops.
We caught up with marketing and sales director Josh Sweeney to talk about the brand’s growth and how they are moving from an at-once to more of a pre-booking business.
How is business going these days?
Business is good. HippyTree is growing rapidly, even in this challenging economic environment. We continue to expand and elevate our product offerings and have streamlined operations in our new office and warehouse facility.
The strategy to combine the surf and outdoor sports markets through our “Surf & Stone” platform is resonating with our retailers and customers. We’re excited about the future.
Last time we checked a few years ago you guys were a $100k company. How big are you now and in how many doors?
We’re a seven-figure company now. You can find HippyTree in over 400 doors spanning 28 states and 13 countries.
At the time, in 2008, you and Andrew were living and work in a small apartment, with inventory stored in the garage. Is that still the case?
Thank goodness, no. We are sad to have left the comforts of our cozy beach house, but it’s a relief to no longer be sleeping in our offices. We moved the business to a new office and warehouse in Torrance last September.
In 2008, you were self-funded with bank loans and revolving loans from family. HippyTree produced two seasons a year, and borrowed money to fund production, then paid family back with interest as soon as stores paid for the clothes. You didn’t take pre-season orders, and instead hit the surf shops one or two months before the clothes, which were produced domestically, were ready. Is that how you are still doing business?
To date, the partners have funded HippyTree; we’ve also received some family loans from time to time.
We still produce two collections per year. We manufacture some items domestically and have moved the majority of our production out of the country. Starting with the trade show circuit this August, HippyTree will transition to the standard pre-book selling model. This is a key event; HippyTree will be included in retailers’ seasonal purchasing budgets and shelf space allocations going forward. In addition, this will facilitate more accurate forecasting and inventory management.
See page 2 for more on HippyTree’s push in outdoor market, more
I know the outdoor market has been really important to the brand. Have you guys grown in this market? What key shops are you in?
First and foremost, HippyTree will always stay true to our surfing roots. The HippyTree brand has been built around surfing’s strong connection to nature. Outdoor enthusiasts have a similar relationship with nature; hence, the outdoor sports market was a natural extension of the brand. Combining these two markets through our “Surf & Stone” platform is how we differentiate ourselves from competitors that generally follow the surf-skate-snow model.
HippyTree has been well received in the outdoor sports market and we see tremendous opportunity for continued growth. Some key outdoor retail partners include Adventure 16, Half Moon Outfitters, Outdoors Inc Paragon Sports, and Whole Earth Provisions.
Where else have you expanded?
We have expanded in both the surf and outdoor industries in several territories, domestically and internationally. Key areas for expansion have been the Southeast, Texas and Northwest domestically. Canada, Australia, Japan and Brazil have been key territories internationally.
You guys started with sustainable products and in 2008, said more than 75 percent of the line was made with sustainable materials. Is that still the case?
HippyTree cares about the environment and will continue to find ways to soften our environmental impact by using recycled and sustainable materials in our manufacturing. This season, every t-shirt style is offered in organic cotton. Our Chrome boardshort is made from 100% recycled polyester from discarded plastic bottles. Over 50% of our headwear styles are made from organic or sustainable materials.
I remember your calendars were your most popular selling items and were a key tool for you to gain entry into certain shops? Are you still making them?
We have not made the HippyTree calendar in three years. After many emails, phone calls, and written letters we have decided to bring back the calendar for 2012. The calendar format will change from past years by being centered on our t-shirt graphics instead of photography.
Are you sponsoring any athletes now?
We do have a little crew of people we sponsor. We call them our Tribe. HippyTree’s Tribe consists of surfers, rock climbers, kayakers, and musicians.
Have you implemented any new categories in the last few years that are working?
We are no longer primarily a t-shirt company. We now offer a full cut and sew line including wovens, sweatshirts, jackets, pants, walkshorts, boardshorts and headwear. For Spring-Summer 2012 we are introducing some accessories – belts, wallets and chalkbags for climbing.
What have been some of the best lessons you have learned about starting a new brand?
1. Be passionate – you need to eat, drink and sleep your brand.
2. Put meaning behind your product designs and graphics. Your products should represent your brand philosophy.
3. Building a brand is a lengthy process. Nothing is built overnight.
4. Product quality is of utmost importance. Never ship poor products.
5. Make sure your back office (e.g. finances, operations) is well managed.
6. Be organized. You can never be too organized.
7. Be prepared to work harder than anyone you know.
