California Apparel News

Disenchanted with the retail world and mass-produced merchandise, executives at Sanuk, a quirky sandal maker that caters to surfers and beach bums, are gearing up to launch a new company that will offer two lines of limited-run apparel and give shoppers a whole new retail experience.

Jeff Kelley, the company’s owner, and Vice President Ian Kessler have created The Electric Grapevine, which will be completely independent of Sanuk, based in Cardiff by the Sea, Calif.

The Electric Grapevine is something of a peculiarity, which is just what Kessler and Kelley intended. When the new company debuts later this year, it will offer Andoland and PLAH, two lines of limited-run surf-inspired apparel for men and women. “We wanted to create a company that made unique, limited-edition product,” Kessler said. “It’s disappointing [that] wherever you are in the country, you can walk into stores carrying the same product as every other store. The mass production stifles individuality and self-expression.”

Andoland and PLAH are their attempts to inject creativity and individuality into surf-inspired apparel. Kessler and Kelley tapped artist Andy Davis, known in the core surf community for his peaceful and childlike art, to design Andoland, a line of T-shirts, fleece and knits named after Davis’ artistic imaginary world. Bobby Knudtson, a former professional surfer and founder of Roial, a surf apparel company, was hired to design PLAH. This is a line of more boutique-oriented surf apparel. PLAH stands for peace, love and happiness.

“The concept behind each product we make begins with a piece of art designed by Bobby or Andy,” Kessler said. Each work can be put on everything from T-shirts and fleece to handbags and surfboards. T-shirts from both lines will wholesale for $18–$20, and only about 300–500 units will be made of each design.

To keep the lines feeling unique and exclusive, Kessler and Kelley decided not to sell Andoland and PLAH through traditional retail channels. “We did not want to go the traditional route of designing a line, hiring sales reps, hiring a surf team and then peddling our product to retail stores,” Kessler said. An idea struck them after Kelley wore a T-shirt that garnered a lot of curiosity from complete strangers. So they decided to sell their products by word-of-mouth and offer their clients financial incentive for spreading the word.

Here’s how it will work. On Dec. 5, The Electric Grapevine will launch a membershiponly e-tail Web site and open a retail store in Costa Mesa, Calif.

To purchase Andoland and PLAH items, shoppers must register as members of The Electric Grapevine Web site. Membership will be free, but if all goes according to plan, members stand to earn money if they spread the word. By referring people to the site, members can earn up to $3 for each item priced at $36 or more.

Kessler explained it this way: If a member-referred friend buys a Tshirt, the member gets a $3 credit. If a referred friend refers a buddy who buys a T-shirt, the original member gets a $2 credit and the referred friend gets $3. If a referred buddy tells another guy, the original member gets a $1 credit, the referred friend gets $2 and the referred buddy gets $3.

Credits can be cashed out, used to make purchases at The Electric Grapevine or credited to members’ credit cards, Kessler said.

It may sound like a pyramid scheme, but Kessler prefers to think of it as a way to thank shoppers and avoid the formalities of hiring sales reps and launching traditional marketing campaigns.

The unique retail scheme also offers clubs and charities a way to raise funds. Organizations can petition The Electric Grapevine to design their own T-shirt to be sold on the site. The clubs and charities would be entitled to the credits earned from the purchase of their own shirts as well as any other purchases made by their members and members’ friends. The Electric Grapevine will also offer members the opportunity to give their referral earnings to charitable organizations of their choice, such as the Surfrider Foundation.

Although The Electric Grapevine Web site and store will be the primary retail avenues, Kessler and Kelley plan to sell slightly different Andoland and PLAH products to a few select boutiques, including The Closet in Costa Mesa, Calif., and some local specialty shops. In such cases, the retailer will earn the referral dollars.

The idea takes a little getting used to, but Kessler and Kelley feel there’s room for change in the retail world. They’re betting the uniqueness of their apparel and the novelty of their marketing will appeal to shoppers looking for individuality (and maybe a little spare cash).