Bob “Buzz” McKnight, chief executive of Huntington Beach-based Quiksilver Inc., had no clue about the potential of boardshorts when he started making them back in 1976 with buddy Jeff Hakman.
He had just graduated from the University of Southern California with a business degree. He and Hakman were looking for something to do, McKnight said in a recent speech before the Orange County Forum at The Sutton Place Hotel in Newport Beach.
Hakman ironed and McKnight put the snaps on the trunks, he said.
“For me, it was meant to be a one-year project,” McKnight said. “With the first $10 we made we bought a six-pack.”
Since then, Quiksilver has grown to $1.5 billion a year in sales and brought OC’s beach and surfing lifestyle to the masses.
“This culture we hatched here in Orange County influences every walk of life,” McKnight said.
McKnight, dressed in a casual navy blazer and slacks, spoke to a crowd of about 150 people, including his mom.
His quick wit often had folks chuckling.
When asked about his company’s name, McKnight said they chose Quiksilver because it was the familiar word for the metal mercury, which has many forms and always is changing.
The company also has to be “nimble and quick on your feet,” he said.
“We spell (Quiksil-ver) without the ‘c,'” McKnight said. “We always say it stands for ‘cash’ and we took that out a long time ago.”
When Quiksilver’s pending buy of France’s Skis Rossignol SA closes this month, McKnight said sales should hit the $2 billion mark annually. The company’s workforce should reach 7,500.
One of Quiksilver’s biggest goals: promoting the “fantasy and dream” of the OC beach lifestyle, McKnight said.
“Kids are no different in Shanghai than they are in Newport Beach,” McKnight said. “They love this culture.”
That’s the key reason that people are willing to pay more for Quiksilver shorts versus a pair from the Gap, he said.
“Really, (customers) are attached to the dream,” McKnight said.
But it hasn’t always been smooth for Quiksilver.
The company is easy to “take pot shots on for being too big or old,” McKnight said.
Plus, it has to get into the heads of tough customers,green haired, tattoo-wearing kids, McKnight said.
And the company has to answer to Wall Street analysts, some of whom are weary of the Rossignol buy.
“I always say you have to look at the first four letters of ‘analyst’ and it tells you everything you need to know,” McKnight said chuckling.
Smart marketing has been a big driver behind Quiksilver, McKnight said. The company is known for ads featuring picturesque blue oceans, glistening waves and carefree surfers.
“Our biggest challenge is to use our muscle to communicate and further enhance the boardsports lifestyle,” McKnight said. “Our job is to further the real deal. There are a lot of cling-ons and fakes.”
Red Robin Reups
Irvine-based Myprint Corp. has picked up more work from Denver-based Red Robin Gourmet Burgers Inc.
The print shop recently signed a three-year pact with the restaurant chain, which will use Myprint software to customize and order menus online.
Red Robin already uses Myprint’s online services for marketing materials among other things.
ChopShop’s Shooting Schedule
Irvine-based ChopShop wrapped up six 30-minute shows for Lockdown Entertainment that recently debuted on Fuel, Fox Network’s action sports channel.
ChopShop’s other projects include creating a surf and skate video for Irvine-based Boost Mobile LLC, which is owned by Nextel, editing a commercial for Irvine-based Foote, Cone & Belding Southern California and working with Surf City Advertising in Huntington Beach on commercials for engagement ring retailer Robbins Bros.
ChopShop also worked with Newport Beach-based Blue C Communications on a commercial for the annual Orange County Fair, which starts this week in Costa Mesa.
