Quikflip Apparel’s momentum, like that of many promotional products firms, came to a screeching halt at the onset of the COVID-19 outbreak.

Relatively new to the industry, Torrance, CA-based Quikflip Apparel (asi/89364) had been thriving with its innovative product line: zip-up and pullover hoodies, crewnecks and waterproof jackets that can be converted into adjustable drawstring backpacks in seconds. In 2019, CEO Rener Gracie, scion of Brazilian jiu-jitsu royalty, appeared on Shark Tank. Asking for $500,000 in exchange for 5% of the company, Gracie made a deal with “Queen of QVC” Lori Greiner for $250,000 in exchange for 10% and another $250,000 as a line of credit.

Jordan Talmor, Quikflip Apparel

Anticipating more growth in 2020, the retail company struggled in the promo market due to the pandemic. In this Q&A, Jordan Talmor, chief operating officer of Quikflip Apparel, discusses the company’s struggles and its plans for overcoming them.

Q: How was promo business last year?

A: We had very little sales. A huge tech client had a big event scheduled for March, and as we were in the middle of loading their shipment on the truck, they called and canceled. It was a tough pill to swallow because we were seeing such rapid growth before that. With event business nonexistent, we pivoted to managing employee stores, which has been successful. By the end of 2020, we were able to make up a lot of what we lost in the middle of the year. Signing on with Top 40 supplier S&S Activewear (asi/84358) was also a huge help.

Q: What are the terms of that relationship?

A: S&S Activewear is now our exclusive distributor. By partnering with S&S, we’re able to leverage their six nationwide distribution centers to offer one-day shipping to 41 states. Our customers benefit from one price regardless of order size, no minimums and free freight.

Q: Have you made any staffing cuts during the pandemic?

A: Thankfully, we have a very small, efficient team. We didn’t make any layoffs or furloughs. My background is in systems development and process engineering, so my whole mindset is how do we get the most out of the least.

Q: Have your employees returned to the office?

A: Other than those in the warehouse, the sales team and customer support team are all working from home still. I always work from home because I live on the East Coast. Even though we’ve remained efficient, you do lose that sense of teamwork when you’re not able to be in person. Our team is used to having lunch together, which is a powerful thing for our organization to have.

Q: Quikflip has gained a reputation for having one of the most popular booths at trade shows, thanks to CEO Rener Gracie’s energetic presentations. How has the transition to virtual trade shows been?

A: We recently did S&S Activewear’s virtual event – our first one – and we killed it. People flocked to our booth and stayed for extended periods of time. We actually had to kick people out.

Rener is amazing. His mind is geared toward problem-solving. He was so creative in his ideas on how to approach a virtual event. He figured out a great way to make it as easy as possible to get attention from an online list as opposed to making sounds at a trade show. His idea was to make it look like there was a highlight above our booth saying we were live, similar to what you would see on YouTube. It was something small and simple, but extremely effective. We’ve seen new orders come in due to that virtual event.

Q: What new products will you be rolling out this year?

A: We’ve changed our mentality – we’re looking for the right opportunity instead of waiting for the right opportunity to come to us. We’re not killing it in the 18-24 age group. That’s a potentially huge marketplace for us. What do college kids like to wear? I look at my daughter and her friends and see what they wear. Looser fitting, comfortable, cozy hoodies. We’re looking to make entryways there with pullovers and plush fleece.

The sage, lightweight women’s Hero Hoodie is our number-one selling hoodie. So, we’re looking at a number of new colors, bolder and brighter rather than black, charcoal and gray. We’re also working on tie-dye and pigment washes. And then what can we do in the jacket space? Could we do a puffer jacket? Poly fleece? Maybe even shell jackets for skiers?

Women’s Hero Hoodie Lite (Sage) from Quikflip Apparel

Q: What’s your outlook for 2021?

A: We’re making further inroads in the promo market. We’ve been able to address initial challenges, especially around price point. When we launched in 2017, we were a retail company trying to sell a retail product in a wholesale industry. Now we’re able to get more in line with the expectations of the industry, which includes bringing our cost down. At the same time, we’re educating distributors on why end-users are paying more for our products compared to other hoodies. This isn’t your normal hoodie. We’ve added value. You’re paying for a high-quality garment that converts into a backpack.

After a year of having events canceled and working from home, people are looking to get back outside and feel free again. That feeling aligns with the message of Quikflip – hands free, not being the dork carrying your sweatshirt around your waist. We provide a unique offering and we’re optimistic with where things are heading.