· David Senra, Ronnie Fieg
[00:00:00] S0: Mm. [00:00:00] S1: Right? So all of a sudden, I then had to buy my IP and negotiate with this crook to buy the IP back and own it globally. And that was a very expensive lesson that I learned. But I didn't even consider myself, in the beginning, I wasn't considering myself a brand at all. Even for the first couple years of me making product, I was just like, "Yeah, that's just like cool shit I have on the side for the store." But very quickly it turned. And then when the Kith, the small 800-square-foot space in the back of Atrium then expanded into the full Atrium space because we were that successful, we took another 5,000 feet.
· David Senra, Ronnie Fieg
[00:00:00] S0: All of a sudden, I had to quickly put a plan together around becoming a brand. I found one of my all-time favorite quotes when I was reading the book "Zero to One." The quote says, "The single most powerful pattern I have noticed is that successful people find value in unexpected places, and they do this by thinking about business from first principles instead of formulas." That is exactly what AppLovin has done with their advertising platform. AppLovin connects you with over a billion potential new customers in mobile games. AppLovin allows you to capture undivided attention. AppLovin ads are full-screen videos that are watched for an average of 35 seconds. That is retention that blows other ad platforms out of the water. And you can launch on AppLovin in minutes. You set the goal, and AppLovin achieves it. No complex setup, no expertise needed. And AppLovin scales quickly. They can put your ads in front of over a billion potential customers. Other businesses have seen immediate results, scaled to hundreds of thousands of dollars of spend per day, and increased their revenue by millions. So, you want to get started quickly before all of your competitors are on AppLovin, and you can do that by going to applovin.com. That's applovin.com. When you were 800 square feet, what are you selling in the store? [00:00:00] S1: Only footwear, and then apparel was like a wrap. [00:00:00] S0: Are these footwear that are only- [00:00:00] S1: No [00:00:00] S0: ... the collaborations you're doing? [00:00:00] S1: No.
· Ronnie Fieg, David Senra
[00:00:00] S1: No. [00:00:00] S0: It's still the same thing when you were at David, small percentage collaboration? [00:00:00] S1: David was not a top-tier distributor of product. [00:00:00] S0: Okay. [00:00:00] S1: Right? Or retailer of product. David had main catalogs of product, and then I opened this store strictly to have the top tier of distribution from all of the brands I was carrying, because all these brands- [00:00:00] S0: What does that mean, top-tier distribution? [00:00:00] S1: I'll explain. [00:00:00] S0: Okay. [00:00:00] S1: So, for example, and the easiest one to explain would be Nike. Nike has what's called a tier zero, and then they even have quick strikes, which are below tier zero. So, tier zero would be the most limited product they make, quick strike would be the second layer to that, and then you have the mainline collection, which is a catalog that a Dick's Sporting Goods gets to buy into. [00:00:00] S0: Yeah. [00:00:00] S1: Okay? The whole premise behind the Kith space was to have the best footwear wall in the world, and that was going to have top tier, and this is at a time where it wasn't this popular. Sneaker culture grew a ton since then, but top-tier distribution from all the brands. I didn't invent that. Sneaker boutiques were a thing, but I wanted to be the best of, and I had enough knowledge as a buyer and as a merchandiser and as a salesperson, I had enough knowledge of knowing how to do that and curate the best wall in the world.
· Ronnie Fieg, David Senra
[00:00:00] S1: Okay? The whole premise behind the Kith space was to have the best footwear wall in the world, and that was going to have top tier, and this is at a time where it wasn't this popular. Sneaker culture grew a ton since then, but top-tier distribution from all the brands. I didn't invent that. Sneaker boutiques were a thing, but I wanted to be the best of, and I had enough knowledge as a buyer and as a merchandiser and as a salesperson, I had enough knowledge of knowing how to do that and curate the best wall in the world. [00:00:00] S0: Okay, so you combine this industry knowledge with the fact that at this point, you're over 10 years deep into just being a- [00:00:00] S1: A collector. [00:00:00] S0: A collector. [00:00:00] S1: From '95. [00:00:00] S0: Exactly. So even longer. [00:00:00] S1: Right. [00:00:00] S0: So you then combine the two into the very first Kith store, which is, again, 800 square feet.
· David Senra, Ronnie Fieg
[00:00:00] S0: So you then combine the two into the very first Kith store, which is, again, 800 square feet. [00:00:00] S1: Right. But then I also, because of the relationships I built opening these accounts at David Z and also buying from these accounts at David Z, I was able to build amazing relationships where I was then working on product with all these brands for Kith. So, we had top-tier distribution from these brands, but then we also had collaborative product that I was working with these brands on. So, we had very limited product, and that was keeping people coming to the door for very special product, but they were also coming to the door to see the special product that these brands were releasing. So, there were major release dates for all these brands for different product, and we were one of the... I'm sure you've heard of Virgil. [00:00:00] S0: Yeah.
· David Senra, Ronnie Fieg
[00:00:00] S0: Yeah. [00:00:00] S1: And Virgil and Nike worked on incredible product. Kith was one of the main retailers to carry that product in the States. And then Yeezy product with Adidas, for example. There are a lot of other products that sit within that tier where Kith would become the main destination for people to come and buy those products. And we built a community around that. And then from that point where apparel started to sell at the rate that it was, the growth that we had for our brand, for our house brand, for our fashion brand, for Kith, was surpassing any demand that we had for anything else. So, as we started to open up more doors, we then had that offering for different communities in different cities. And as we saw the success of the different stores, we understood that our reach was global. And today, for example, when we have a release of product, like we just released a big project with BMW. That was about a month ago, I would say. [00:00:00] S0: Is that what I just saw outside? [00:00:00] S1: That's from the last project. [00:00:00] S0: Okay. But when you sell can other people buy that, or is that something you do custom for yourself? [00:00:00] S1: No, we had 47 of those made. [00:00:00] S0: Okay. [00:00:00] S1: And 47 stood for the years between the M1 and the XM, because those are the only two one-off M cars that BMW ever created. [00:00:00] S0: Okay.