BrandLogic Inc. puts the mass in mass production for Orange County apparel companies.
The Costa Mesa-based business seeks out talented clothing designers and matches them with a factory in Asia to make their designs in bulk,for a cut of the profits.
One of BrandLogic’s partners is Costa Mesa-based Atwater Clothing, which is selling to Nordstrom and to local shops, such as Surfside Sports in Costa Mesa, after starting up two years ago. Atwater shares BrandLogic’s headquarters.
BrandLogic is a part of CFL Enterprise Ltd., a private Hong Kong-based company that manages all aspects of clothing production and distribution to stores. CFL, which employs 500 people in Asia, doesn’t own factories. That’s the old business model, said Mike Elias, president of BrandLogic. Elias started out in the apparel business 25 years ago with Levi Strauss & Co.
It doesn’t make sense to own factories because of prohibitive rules in various regions, Elias said. Instead, CFL contracts with factories in Hong Kong, China, Thailand, Macau, Cambodia, Indonesia, Vietnam, Philippines, India and Bangladesh.
BrandLogic has 14 employees in OC and in Los Angeles.
The Business Journal’s Sherri Cruz talked with Elias about BrandLogic’s business.
What does BrandLogic do for a clothing company?
The normal process (for a clothing designer) is to start out of your garage and create a brand. Then after many years, you graduate to international production. What we’ve done is speed that process up.
(Designers) partner with a company like ours because we give them the logistics and the supply chain. These are things that are outrageously expensive to do on their own.
What kind of apparel companies do you like to work with?
We’re always on the lookout for young, passionate, creative people who have been able to look at the apparel industry from an original point of view. We want to find a company that’s willing to invest in their brand, both creatively and financially. We ultimately want a committed partner that is in it for the long term.
Is BrandLogic kind of like a venture capitalist?
Not exactly. We’re willing to do the work as well. We want collaborators. We’re not an investment company. We want to be one half of a partnership. It’s an agreement. They are responsible for areas like design, sales and marketing. We are responsible for everything else, such as operations, development and sourcing.
How are the partnerships structured?
Each one is different. If someone with limited funds approached us with a great idea and we saw it had a niche then we could structure a deal that would allow for compensation based on the innovation and not focus on the equal investment. On the other hand if we are working with a group that is financially capable we could structure a deal that would allow it a much larger percentage of the profit.
How much money would they need to bring?
It depends on their aspirations. What are their goals? Do they feel this product is capable of $10 million in retail sales in the next two to five years? How much of that do they want to keep for themselves? We’ll structure the deal according to how much it costs to produce and manage.
Is OC still a good place to find apparel companies?
There are a lot of super-inspired and creative people in OC. There’s a blending of surf, skate, music and entertainment. We have a very artistic and eclectic vibe in this community.
How do you identify a company you want to work with?
It has to be special. We look at their art, their designs. Take Atwater. They (Dean Bradley and Scott Madison, Atwater’s founders) didn’t want to just copy anyone. They really wanted to create a different look and feel. We look at the ideas, the art and the attitude of the partner. In the end it has to feel right, you have to work with these people.
How often do you travel?
Last year I went six times to Hong Kong. We work with the brands and the teams. For example, we created an Atwater team there that handles most of the merchandising and production. The team will work on its product exclusively.
Is your business model unusual?
It is a bit unusual. We are a company that was formed to nurture the creative so that we could bring bright, exciting concepts to the marketplace. We have the support of our parent company CFL, which specializes in Asia-based supply chain management. They make sure that we can present a product that represents quality and value.
You also own a brand.
Yes, DBLA Clothing in Los Angeles. It is a young, contemporary brand, for 20- to 35-year-olds. DBLA is sold in Nordstrom, Anthropologie, M.Fredric, Planet Blue, Lisa Kline and other stores. It’s a casual, comfortable look that is focused on being a denim alternative. The brand started in New York 10 years ago and has found its way to the West Coast. We bought that brand about five years ago and it is one of a few brands we own.
Is the economy affecting your business?
Not really. We’re not dealing with businesses that are so large that they’re being impacted by a slow market. These businesses are fresh and new. People are willing to spend their money on their clothing because it’s original. We really haven’t seen any down trend in retail sales to this point.
