Latest / The Retail Podcast / How Be Athletica Built a Sustainable Sportswear
Transcript
- 0:00I felt like, you know, investing heavily in ads in our first year
- 0:04when we have so much to champion as a brand, whether that's in
- 0:07the way we source our fabric, whether that's in our design.
- 0:10I felt like just going digital and aggressively on digital was
- 0:13not enough to really bring that story out there.
- 0:26Hello and welcome back to another wonderful episode of the
- 0:30retail podcast. Now, it's a shame that we didn't
- 0:33get to do this in person because Gary, who you'll meet in one
- 0:37second and I were both at shock talk likes at the same time in
- 0:40the same region, but we just obviously this we didn't realise
- 0:45we're going to both be there. So Gary, before we sort of get
- 0:48into be Athletica, why don't you just give us an overview of who
- 0:51you are and and what led you to create or be a Co founder in
- 0:56this business? So I graduated from the London
- 0:59College of Fashion in 2021, so pretty recent.
- 1:02And then I started a career in e-commerce.
- 1:04So my background was super involved in working with luxury
- 1:09platforms. So I worked in the UK for two
- 1:11years at a very cool platform called Culp Mia, which champions
- 1:15leading emerging designers around the world.
- 1:18And then I moved back to the UAE and I worked at Shalu Group,
- 1:23which is the largest luxury distributors.
- 1:26Yeah, the largest in the GCC. And then I worked at Unas, which
- 1:31is the leading shopping portal for luxury goods in the GCC
- 1:35again. So it was really working at
- 1:38these three giants that are championing and leading luxury
- 1:42at a global scale that I was able to have that commercial
- 1:46acumen and get that front row seat to understanding what is
- 1:49really behind the scenes in the eyes of a buyer in terms of
- 1:53e-commerce strategy, what the customer in this region and
- 1:56across the world really want. And that's how I that's what
- 2:00really made me want to make the pivot and start my own business.
- 2:03And that's how the Athletica was formed in the coming years
- 2:07later. Sure.
- 2:08And how easy, how easy was it to get off the ground?
- 2:12You said you're on your second season now, right?
- 2:14So is it a year roughly about 18 months old then?
- 2:19So we are a year and three months, that is correct.
- 2:23So about 16 months old. So we launched with one
- 2:26collection and then we launched our second collection in drops
- 2:30from May last year. We're only launching our third
- 2:33collection now in March because of our business model, which is
- 2:37dead stock. So we're a season behind, but
- 2:39it's mainly because of of how we source our fabric, which I can
- 2:43touch base a little bit on. Yeah, I mean.
- 2:45Why don't we like dead stocks are really interesting sort of
- 2:48positioning and hence why I was very curious why dead stock?
- 2:52What made again? When did you hear about it and
- 2:54what made sense? Yeah, dead stock is a very
- 2:57interesting and I think it's like it's an umbrella term
- 3:00because when people say dead stock, dead stock is also for
- 3:02just leftover garments that are completely finished goods as
- 3:05well. So when we say dead stock, we
- 3:08mean just excess fabric yardage which are left behind in
- 3:12factories. So in this in summer 2024, I had
- 3:15a little bit of a break between and I was switching career and
- 3:20that's when I went to visit factories in India, Bangladesh,
- 3:24Sri Lanka, China. And something common in all of
- 3:27these factories was that there was always a stockroom full of
- 3:31excess fabric yardage just sitting there, piles and piles.
- 3:35One fabric rules is massive and imagine hundreds of them just
- 3:40sitting in a room discarded. So when I would ask these
- 3:44factories like, you know, what is it?
- 3:46They would say that oh, this is just excess fabric yardage.
- 3:48Like nobody wants it. It's just lying there.
- 3:50And that's when I realised that there was really an opportunity
- 3:54in using this waste fabric because though it was irregular
- 3:58in quantity, like, you know, they wouldn't be in a fixed
- 4:01quantity. There'd be like maybe 15 yards
- 4:03for a roll all the way to about 800 yards leftover.
- 4:06They were still really high quality and good fabrics that
- 4:09could be used again, and they were in these brilliant
- 4:12factories. The only problem was is that
- 4:15they were too irregular in their quantity for someone else to
- 4:17want to take it. So eventually this would just be
- 4:19discarded. And as we know, fashion and
- 4:22fashion industry is such a big pollutant.
- 4:24And I got to see that first hand.
- 4:27And I was like, why not pick up this fabric and do something
- 4:30with it instead of getting new fabric and buying it from the
- 4:33market like anyone else would? Yeah.
- 4:35That's really interesting. Does that then limit in terms of
- 4:38because this is fabric that's already sort of been produced,
- 4:42are they just like in stock colours or does it limit you in
- 4:45any way? Absolutely.
- 4:47It limits us in a lot of ways, to be honest.
- 4:49It's we wanted to build a brand that starts with something that
- 4:53already exists and it limits us in so many things.
- 4:57One, colours, we have to pick what's available and it limits
- 5:00us in the sense that we can't always scale.
- 5:03Even if we have a style and a certain colour that does really
- 5:07well, once it's out of stock, it's out of stock.
- 5:10We're not going to get that same style again.
- 5:12We can maybe try and recreate it eventually with a similar
- 5:15fabric, but you will really never get that same style again
- 5:19because we use a finite amount of fabric and we don't really
- 5:22know where that source of that fabric ever was from.
- 5:25It's going to be really hard to trace and place an order for
- 5:27that and it again goes against our business model.
- 5:30So we innovate every time we release a collection.
- 5:33You're never going to see the same style come back in the same
- 5:36colours or the same fabric. And we challenge ourselves a lot
- 5:40by picking up a a lot of colours that normally people wouldn't
- 5:43want to work with. Like last season we worked with
- 5:46a neon yellow, like a sunniest neon bright yellow.
- 5:50And the season before that we worked with a hot pink.
- 5:53And it really makes us like, it really puts us, makes us really
- 5:58use our creativity to the best of our ability and makes us
- 6:01really innovate in our design. But the range always ends up
- 6:04looking so colourful, bright and beautiful.
- 6:06I got you and obviously the well, I say obviously again, the
- 6:10the focuses sportswear in the first instance.
- 6:13So right now, I mean, look, we can I can share it with the if
- 6:17you're watching this, you'll be able to see this.
- 6:20This is your new season. And so like example, Cherry is
- 6:24the colour here that would have already been on a on a pallet
- 6:28somewhere that you then are creating designs for, right?
- 6:32Correct. And it's only females at the
- 6:34sorry females. It's only female wear at the
- 6:36moment. Any.
- 6:38Any any plans to expand beyond? So we do have the plans and and
- 6:43we're we're lucky to have the demand as well for it.
- 6:46Think paddle wear is a huge opportunity in menswear
- 6:49especially, but I think expansion to new categories will
- 6:55be potentially in the coming year.
- 6:57I think kids wear is definitely a great opportunity for us.
- 7:00There's so many kids getting into the sport and racket sports
- 7:03in general that we would love to cater to.
- 7:05So I see that on the horizon quicker than menswear to be
- 7:09honest. And I've noticed you've gone
- 7:11inclusive as in all body shapes as well, which sometimes is
- 7:14really frustrating for consumers, right, when it's just
- 7:17one when it comes to sports, you only produce for one body shape.
- 7:21But yeah, from from what I'm seeing, you don't, right?
- 7:23Exactly. We have, we try to be as
- 7:27inclusive in nature as possible, but it's not something that is
- 7:31super intentional. It's just at the core of our
- 7:33values. We do it very like naturally.
- 7:35It's just, it's just a part of our brand.
- 7:37It's not something that's super calculated or something that we
- 7:40plan to do. Right.
- 7:42And, and currently you're online only as in yeah, it's only an
- 7:46online brand Econ you were talking.
- 7:48About correct, we're online only.
- 7:50We are expanding into two new markets this year in Q1 of this
- 7:54year, which is the US and the UK with domestic shipping.
- 7:58So we've seen a lot of traction from the UK especially in Q4 of
- 8:03last year. So that's very quickly become
- 8:05one of the one of the biggest markets for us actually.
- 8:10So we are going to be having a domestic DC over there and
- 8:15similarly in the US as well. OK, interesting.
- 8:17Tell me a little bit more about women LED activations and sort
- 8:21of women's paddle in general. For for those who don't know,
- 8:24it's like tennis, but not tennis, right?
- 8:27Exactly, I play tennis, so I prefer tennis the one
- 8:32championing A paddle where Bran but paddle, the beauty of it is
- 8:35that it's so easy to adopt and it's a it's the fastest growing
- 8:39sport in the world. And and you know, luckily or
- 8:42coincidentally enough, where we're based in Dubai and where
- 8:46the brand was founded, paddle is, you know, the leading sport.
- 8:49People play paddle all the time and the investment behind the
- 8:52facilities here in the region has been immense.
- 8:55There's 250 paddle facilities in the UAE alone, not even courts,
- 9:00just facilities. So the community behind the
- 9:02sport is massive. Now when we think about be
- 9:06Athletica as a brand and how we've used women LED community
- 9:10activations to build our brand, we didn't rely heavily on paid
- 9:14ads in our first year. We wanted to build emotional
- 9:17brand equity first. So what we wanted to do, I'm not
- 9:20a creator. I didn't have a large following
- 9:22base when I founded the brand. We needed to embed ourselves
- 9:25with the community and we needed to get our brand out there.
- 9:29I felt like, you know, investing heavily in ads in our first year
- 9:33when we have so much to champion as a brand, whether that's in
- 9:36the way we source our fabric, whether that's in our design or
- 9:39in the general paddle ethos and how we are trying to build our
- 9:43brand. I felt like just going digital
- 9:45and aggressively on digital was not enough to really bring that
- 9:49story out there. So we have hosted over 35 events
- 9:53in just the last year, whether that's through collaborations or
- 9:55hosting our own 35 events in one year.
- 9:58And that was a mix of like whether that was Pilates or
- 10:02paddle. Last week we had a pizza and
- 10:04pyjama party. We include women from all walks
- 10:08of life to come and take part in our events and learn about the
- 10:10brand in person, whether it's through a small gift or whether
- 10:14it's through discovering the collection at a pop up.
- 10:16But this has really been the driving force in our growth
- 10:19organically. And I think in today's day and
- 10:22age, organic growth is so much more valuable because digital,
- 10:26digital is everywhere. But to be able to capture that
- 10:28audience and to be able to convey your message and your
- 10:31story regionally, community LED events have been super impactful
- 10:35for us. And what would you, what's the
- 10:37feedback from, from your customers or community?
- 10:40Because obviously I, I talk a lot about community led and how
- 10:43a lot of established brands get that wrong.
- 10:46What? Yeah, what, what do you feel?
- 10:47Is it the variety of what you do?
- 10:50Is it the depth of what you do, the authenticity in what you do?
- 10:53Why does it work? Why do you feel that it works
- 10:56well for you? So communities are growth
- 10:58engine. It's a non negotiable for us.
- 11:00We will definitely have say like four or five events scheduled
- 11:04per quarter. And what we do is we really add
- 11:07points that make us different in it apart from, you know, your
- 11:10traditional like have a pop up setting of people to come and
- 11:13discover your product because we're online only.
- 11:15So for people to come and see it, this is really their only
- 11:18chance. I think it's the way we connect
- 11:20with our customer. We make, we involve them in our
- 11:23social media posts, we're posting them.
- 11:25They are who they represent our brand.
- 11:28We, they make friends when they come to our events.
- 11:30They come there because they're not just here to be sold
- 11:34something or they're not just here for a photo op, but they're
- 11:37coming to make friends. They're coming to meet like
- 11:39minded people. They're coming to network and do
- 11:43this again. We see a lot of people come back
- 11:46repeatedly for our events too. So it doesn't mean that just the
- 11:49girls who love to play paddle, stick to playing paddle.
- 11:52They show up for the next event which has Pilates or they show
- 11:55up for that pyjama pizza party. So it's about being able to
- 11:59identify who your customer is and continuously speak to them
- 12:03through in a very fun and engaging way that's beyond by
- 12:06this. But here, this is what we stand
- 12:09for and this is how you can experience the Athletica without
- 12:12needing to purchase something to feel included.
- 12:15And that has actually driven our conversion way more than any AD
- 12:19would. I got you and and I'm sure you
- 12:21probably get this a lot, but you're, you've chosen to go into
- 12:24a really competitive market, right?
- 12:26The the sportswear market. It's it's a it's a global
- 12:30market. It's up through it's it's very
- 12:32difficult. I mean, what, what the lessons
- 12:35learned? What are you sick?
- 12:36Why are people, for example, with a famous brand or the
- 12:39traditional brands? Why would are you finding?
- 12:42Is it because the community, the people, are choosing you over
- 12:45the traditional? Brands, I think it's one of the
- 12:48factors, but you raised a very important point, which is that
- 12:52active wear is noisy. The barriers to entry in active
- 12:55wear are low. It's easy to start an active
- 12:58wear brand today. You just have to go to the
- 12:59wholesale market. You can buy a product and you
- 13:02can have your branding done on it and there you go, you have
- 13:05your product. So I feel like for sure there's
- 13:08a, there's no dearth of activewear brands and we have
- 13:11been able to carve out our niche in terms of our, how we source
- 13:14deadstock paddle community events.
- 13:16But honestly, everything comes down to the product.
- 13:19So we can, we can market as much as we want.
- 13:22We can have as many events as we want.
- 13:23If the product didn't work, this business is not going to work.
- 13:27So it's really been, I mean, community events let you let the
- 13:31customer convert 1, but they're not going to make you convert
- 13:33again. So I truly believe it's down to
- 13:36our product and how unique it is and the fact that when someone
- 13:39buys our product and it's out of stock, nobody's going to be
- 13:42getting that same piece again. She values it and she's excited
- 13:45to come back and get another one.
- 13:46I think that's, that's one huge aspect of it.
- 13:49You're not going to see 100 people wear the same generic
- 13:52piece of clothing and your daily activewear.
- 13:54And the other would be just the fact that it's made with a lot
- 13:57of love and care here locally in the UAE and we look into our
- 14:02product very much. So it's, it's not something
- 14:06that's generic with just a label on it.
- 14:08Our styles are genuinely unique because we have a very strong
- 14:11design language. That's fantastic.
- 14:13OK. Is there any questions I should
- 14:15have asked? Like if you've been on another
- 14:17podcast and someone who knew a lot about paddle and athleisure,
- 14:20is there a question that they would have asked you that I've
- 14:22not asked you? I think honestly the question
- 14:25that you asked about the activewear market and how much
- 14:28like and how saturated it is or how competitive is, how
- 14:31competitive is, I think I think maybe someone would have asked
- 14:33me like if there was no be Athletica, what would activewear
- 14:36be missing? But I think we kind of touched
- 14:38base on it anyway. I've got you.
- 14:40OK, Fantastic. And then in terms of looking to
- 14:43the future, what do you think are the sort of major hurdles in
- 14:47your business as you look to grow and scale?
- 14:50I do see quite significant challenges coming up ahead and I
- 14:54think it mainly has to do with scaling and our product.
- 14:57Now, while I talk about it so effortlessly, effortlessly that
- 15:01you know, we don't restock products and that's great.
- 15:04That's also not been great for our customers.
- 15:06They absolutely want to see some styles come back.
- 15:08So scaling when you don't have your best sellers replenished is
- 15:12very challenging and it's completely out of the ordinary.
- 15:16That is definitely 1 and 2. When we launch a new collection,
- 15:20we actually have to source fabrics from deadstock from the
- 15:23beginning again, and then we start designing.
- 15:26So it's different from traditional retail.
- 15:28Traditional retail, the designer decides what colour she wants,
- 15:31fabrics while she's designed it and then she sources fabric.
- 15:35Here we're doing the opposite. We get the fabric and then we're
- 15:38like now what do we make with it?
- 15:39So, so it takes us, it took us six to seven months to just get
- 15:45our latest collection complete. So I think scaling because we're
- 15:49not going to be able to meet, you know, traditional retail
- 15:51timelines is going to be a huge challenge and also replenishment
- 15:55of best sellers. However, we are innovating and
- 15:58trying to introduce new things for our business that will help
- 16:01us scale, like tapping into natural fibres.
- 16:04We now those are not styles that are made from deadstock.
- 16:07They are just styles that are made from natural fibres, from
- 16:11accredited source mills that are innovating with how they create
- 16:15fabrics made completely naturally.
- 16:18And we're trying to incorporate more of that.
- 16:20So hopefully our customers find new value that, OK, there's not
- 16:24just desktop, but there's also clothes that are good for you,
- 16:26good for your skin and good for the environment as well.
- 16:28So now we're going to have to start to tap into a little bit
- 16:32more of a sustainable business model with our growth.
- 16:35So these are the challenges I foresee.
- 16:37Yeah, no, thank you. Thanks for for the being honest
- 16:39and and transparent about that. Final question, what role does
- 16:43technology play in ecommerce for you?
- 16:45So for example like virtual try ONS, AI looks getting listed on
- 16:51ChatGPT. I'm curious as a young founder,
- 16:53what's top of mind for you with when it comes to technology?
- 16:56It's definitely going to be a genetic commerce and having our
- 17:00visibility on AI search engines. That's definitely our priority
- 17:05now as a business because I think we can definitely say that
- 17:09the shift from searching on Google to searching on ChatGPT
- 17:12has officially happened. And we do have this huge
- 17:16opportunity with customers typing in best active wear in
- 17:20UAE or best active wear for sustainable fabric or you know,
- 17:24these are all keywords and opportunities to grab on.
- 17:27And I do see that this is the next.
- 17:29I mean the shift has already happened.
- 17:31So this is our priority here as as a new business and then
- 17:35virtual try ONS and these kind of things have been in trial and
- 17:39testing for quite a while. To be honest, our e-commerce
- 17:42hasn't, I'm still of the notion that just the website alone is
- 17:46not going to drive conversions like maybe how the point that of
- 17:50them there was. So I still do see high intent
- 17:53when someone lands on our website.
- 17:54They don't really need more on the website to be able to make
- 17:57them drive that purchase. So maybe with scale and with
- 18:00more growth we'd be able to see that.
- 18:02But for the moment, I think being, you know, on those top
- 18:05landing pages of the AI search engines are going to be our
- 18:08priority for the next year. Gary with that with with it our
- 18:12time, I could obviously I've got always that's why I have a
- 18:15podcast. I can always talk about
- 18:17questions. So thank you so much for giving
- 18:19up the time to be with us today and I look forward to maybe
- 18:23seeing you at Shop Talk Lux next year or there will be an NRF as
- 18:26well. I don't want to upset NRF, so
- 18:28maybe at one of the conferences we'll get to meet in person.
- 18:31Yeah, absolutely. Thank you so much.
- 18:34Thank you for having me.