When Florence first came on the scene, we didn’t hear much buzz about the brand from retailers or many others.
Boy, has that changed.
We are increasingly hearing that the brand is making inroads at surf shops with Florence becoming popular with core surfers, and the Florence brothers are putting in the hard work of showing up at stores and meeting with shop owners and their staffs, and signing autographs for customers.
And Florence just scored another big coup: Volcom co-founder Richard Woolcott is now an investor in the brand.
Woolcott has loads of experience in brand building and navigating tricky growth decisions. Volcom started in 1991, went public in 2005, and sold to French luxury company PPR (now Kering) in 2011 for $607 million. In 2016, Woolcott exited the brand to take time off and has not worked in the industry since.
Woolcott answered questions for us about why he wanted to back Florence, what he thinks of the state of the surf industry, and why he sees reason for optimism.
I’m sure many brands have asked you to invest over the years. What is it about Florence that attracted you to the brand?
Richard Woolcott: I have always liked the Florence brand and what it stands for. They are focused on building innovative, performance driven products for surfing and other ocean and water-based sports and activities. It’s a modern, utilitarian outdoor brand that fits my lifestyle and product needs.
The first product I bought from them was their hooded rash guard a few years ago and I’ve been hooked ever since. I also like the fact that the company was started by two well-respected surfing families, the Florence family and Hurley family. With everything going on in the industry, they have been a breath of fresh air, a positive light in a sea of chaos.
When Florence approached me at the end of February about getting involved, I was really struggling with the Liberated bankruptcy and all the turmoil surrounding Volcom. It was extremely hard for me emotionally to see the brand that I had dedicated most of my life to being torn apart. I was in a dark place. With the support and encouragement from my dad, I decided to take the meeting with Florence and see where things would go.
After that initial meeting and a few follow up calls, I knew it was time for me to try something new. Plus, I had run into the Florence team about a year ago at the We Are Ocean fundraiser in Newport Beach, which they sponsor. I ended up winning one of John John’s surfboards and some Florence gear during the live auction. Then in November, my family and I happened to share the same week on Tavarua with John (Florence) and his entire family along with Bob and Shelley Hurley. We spent some quality time together talking about business and the industry which I thoroughly enjoyed. I have been friends with these guys for a long time so when they reached out to me with the opportunity, I just went with the flow. It felt like the universe was talking to me, so it wasn’t a hard decision to make.
How involved will you be in Florence? Will you sit on the board?
Richard Woolcott: I am not on the board. I’m an investor and just getting to know the business. I’m doing what I can to give input and support the team. They have a very talented group of people working at the company. They are on it. It’s early in the relationship so I’m still learning and finding my place in the mix. It’s all good. Florence is growing and there is a lot of excitement around the brand.
Have you delved into any business ventures since you left Volcom?
Richard Woolcott: I stepped down from Volcom at the end of 2016. It was time for me to take a break and focus on my family, surfing and snowboarding. This allowed me the freedom to raise my son with my wife and be there for my mom when she got sick and slowly passed away.
I’ve worked on some personal projects and real estate ventures but nothing in the industry. I wasn’t ready to jump back in and I was satisfied with my relationship with Volcom even though I didn’t work there anymore. Florence is the first real business investment I’ve made since I stepped down from Volcom.
You have an outside perspective now on the surf industry. What do you think the industry is doing right and what do you think could be improved?
Richard Woolcott: It has been interesting being on the sidelines for a number of years now watching the industry evolve. I know that business has been tough and there are plenty of headwinds but from my perspective, I think we are entering an exciting time, a new chapter in the industry. The stress and unknown of what was going to happen to the heritage brands that are now licensed is starting to become more clear. The Liberated bankruptcy is done and people are moving forward. There is still a lot to be determined with the heritage brands and their future, but at least the madness has settled down.
As the dust continues to settle, we are seeing some of the smaller brands gaining momentum and more people are investing in the future. Brands that come to mind include Florence, Outerknown, Vissla, Roark, Former, I-SEA, Tenore, Katin, Salty Crew, Seager, Rhythm and Howler Brothers. There is a lot of good energy out there and I think it’s only going to get stronger.
I’m stoked to see the changes the WSL is making to the tour with the final stop at Pipeline in December. This is good for surfing, the industry and Hawaii. I like what Travis Rice is doing with the Natural Selection Tour and how it now includes events in surf, ski and mountain bike along with snowboarding. Shaun White is building his new brand, WhiteSpace and just launched a new contest series, The Snow League. Even X Games is working to reinvent itself.
The other area that is blowing up is women’s action sports. I can’t believe how well the women are surfing and skateboarding these days. There is a new generation of girls taking their sports to the next level. Then there are all the new wave parks popping up around the world. The air game in surfing is unbelievable thanks to these pools. The latest Stab event in Japan was amazing, a serious look into the future of where surfing is going.
If you step back, there is a lot of exciting stuff going on. That’s what gets me pumped. Like the event Hobie just had in San Juan Capistrano – what a beautiful store and vibe.
In terms of what can be improved, one thing I keep hearing is that it’s hard to make money whether you’re a retailer or brand manufacturer. All the discounting and excess inventory has had a negative impact on the business so this needs to be figured out and cleaned up. The industry needs healthy, profitable businesses to survive. It needs brands to keep investing in infrastructure and people, sponsoring athletes and events, building innovative products, and executing creative marketing ideas.
The other concern is what will the heritage brands look like in the future? What channels of distribution will they be in and how will this affect the rest of the industry? The license model and its royalty payment structure is different than what we are used to. We have never seen a change of this magnitude before, so time will tell how this all plays out.
Overall, we can always be better and learn from our mistakes. The industry is full of smart people and I’m confident we will figure it out.
Do you think the surf industry should strive to grow in size and influence again, or is it better to focus on participants rather than chasing the mainstream mall shopper?
Richard Woolcott: I’m more in the camp of focusing on the core customer, participant, and true outdoor enthusiast. The industry has been through a lot since the great recession back in 2009. It never fully recovered from the boom years of the mid 2000s. Even Vans, which became a massive powerhouse peaking with sales of over $4 billion, has come back to earth.
We have seen that “big is the enemy of cool” time and time again. I think it’s better to focus on running a healthy, profitable ship. The days of billion dollar brands are over for now. There will always be the exception, but overall, it’s better to live within your means and do what’s best for the brand, the customer, and industry long-term.
I still hear people talk about the Stussy model; stay small, protect your distribution and focus on profitability. We have many examples in the industry of what works and what doesn’t. So in this next chapter, maybe we can do things differently. The good news is there is plenty of business out there; surfing, skateboarding, snowboarding and skiing are not dead. Plus, we have brands like Burton and Patagonia that have stood the test of time.
Do you have any words of wisdom for those still trying to make careers in the surf industry?
Richard Woolcott: I think it’s a good time to be in the industry. We are currently in a recovery, build back mode. From the big brands like Quiksilver and Volcom, to the smaller up-and-coming brands, there is something for everyone. My wish is the industry finds a good balance. I have a lot of respect for the heritage brands and I hope they can still prosper, create new jobs and invest back in the industry.
On the other hand, I’m excited to see the newer brands compete for market share and grow. This is what it’s all about – clean, healthy competition. Just like competing on the world surf tour but in business. My advice would be to follow your heart and listen to your gut. It’s a fun industry and if you’re passionate about it, then get involved and stick with it.
I’ve had friends leave the industry to try something different and find out that the grass isn’t always greener. They want back in, they miss it! We are lucky to have a surf industry and its future depends on the people in it and the choices that we make. I think we are going to see a lot of change in the next five years so it’s a good time to get involved.
It’s not an easy industry, but the lifestyle, the products and people are awesome. We are fortunate to be surfers and to have an industry that can support our needs. I love the industry and the lifestyle, and appreciate being a part of it.
