American Giant: Bayard Winthrop
2Digest
Byard Winthrop, founder of American Giant, shares his experience partnering with Miguel McKelvie, co-founder of WeWork. He describes McKelvie as a philosophical thinker who brings a unique perspective to the company. Winthrop recounts an anecdote where McKelvie suggested converting office space in their North Carolina facility into an after-school program for employees with children, highlighting McKelvie's innovative approach to addressing workforce challenges. Winthrop then delves into the topic of scale in domestic manufacturing, arguing that achieving competitive pricing requires large-scale commitments from major retailers and brands. He emphasizes the need for consistent, long-term orders to incentivize domestic textile production and break the cycle of short-term, low-volume orders. Winthrop believes that a shift in consumer behavior, with a focus on purchasing fewer, higher-quality American-made products, could influence retailers to prioritize domestic manufacturing. He also emphasizes the crucial roles of brands and policymakers in promoting American manufacturing through ethical supply chain decisions and policy initiatives that incentivize domestic production. Winthrop concludes by reflecting on the importance of luck and surrounding oneself with like-minded individuals in achieving success. He acknowledges the role of chance encounters and fortunate circumstances in his journey, but also emphasizes the importance of hard work, a great product, and a shared commitment to values.
Outlines
Introduction
This Chapter introduces the podcast and its host, Guy Raz, and briefly mentions the topic of the episode: American Giant, a clothing brand entirely made in the US.
Byard Winthrop's Journey
This Chapter delves into Byard Winthrop's background and his journey from finance to entrepreneurship. It covers his early career at Donaldson Lufkin & Jenrette, his move to San Francisco, and his experiences at Atlas Snowshoe, WebChat, and Freibord.
The Birth of American Giant
This Chapter focuses on the founding of American Giant and Byard Winthrop's decision to create a clothing brand entirely made in the US. It explores the challenges he faced in sourcing materials, finding skilled workers, and managing demand.
The Viral Article and its Impact
This Chapter discusses the impact of a viral article in Slate that called American Giant's hoodie "the greatest hoodie ever made." It highlights the challenges the company faced in meeting the surge in demand and the importance of transparency with customers.
The Value Proposition of American Giant
This Chapter explores the reasons behind the popularity of American Giant, including the brand's commitment to quality, community, and American-made products. It also addresses the higher price point of the company's products and how Winthrop communicates the value proposition to customers.
Becoming a Manufacturing Company
This Chapter discusses American Giant's acquisition of Eagle Sportswear, a manufacturing facility, and the challenges of scaling production while maintaining a commitment to domestic manufacturing.
The Challenge of Making a Flannel Shirt
This Chapter explores the complexities of making a yarn-died flannel shirt in the US, highlighting the challenges of sourcing materials and the importance of skilled workers.
The Future of American Manufacturing
This Chapter discusses the broader context of American manufacturing and the challenges of competing with globalized production. It explores the potential for a shift in consumer preferences and the role of government policy in supporting domestic manufacturing.
Partnering with Miguel McKelvie
This Chapter discusses American Giant's partnership with Miguel McKelvie, co-founder of WeWork, and the reasons behind the decision to bring in a strategic investor.
The Impact of Miguel McKelvie
This Chapter explores the impact of Miguel McKelvie's investment and his unique perspective on business. It highlights McKelvie's philosophical approach and his innovative ideas for addressing workforce challenges.
Keywords
American Giant
American Giant is a clothing brand founded in 2011 by Byard Winthrop. The company is known for its commitment to making all of its products entirely in the United States, using high-quality materials and skilled workers. American Giant's products are known for their durability, comfort, and classic American style. The brand has gained popularity for its unique value proposition, which emphasizes quality, community, and American-made products.
Byard Winthrop
Byard Winthrop is the founder of American Giant. He is a serial entrepreneur with a background in finance. Winthrop is passionate about American manufacturing and believes in the importance of supporting local communities. He has faced numerous challenges in building American Giant, including sourcing materials, finding skilled workers, and managing demand. Winthrop's story is an inspiring example of an entrepreneur who is committed to ethical and sustainable business practices.
Domestic Manufacturing
Domestic manufacturing refers to the production of goods within a country's borders. In the context of American Giant, domestic manufacturing is a core value and a key differentiator for the brand. Winthrop believes that domestic manufacturing is essential for supporting local communities, creating jobs, and ensuring the quality of products. The challenges of domestic manufacturing include higher costs, limited access to certain materials, and the need for skilled workers.
Direct-to-Consumer
Direct-to-consumer (D2C) is a business model where companies sell their products directly to consumers, bypassing traditional retail channels. American Giant adopted a D2C model from its inception, allowing the company to control its pricing, branding, and customer experience. The D2C model has become increasingly popular in recent years, as companies seek to build stronger relationships with their customers and reduce reliance on third-party retailers.
Supply Chain
A supply chain is the network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. American Giant's supply chain is entirely based in the United States, which presents unique challenges and opportunities. The company has to source materials, manufacture products, and distribute them all within the country, requiring close relationships with suppliers and manufacturers.
Quality
Quality is a core value for American Giant. The company is committed to using high-quality materials and skilled workers to create durable and comfortable products. Winthrop believes that quality is essential for building a strong brand and earning customer loyalty. The company's commitment to quality is reflected in its pricing, which is higher than mass-produced products, but reflects the value of the craftsmanship and materials used.
Community
American Giant is committed to supporting local communities. The company sources materials and manufactures its products in the United States, creating jobs and contributing to the local economy. Winthrop believes that businesses have a responsibility to support the communities in which they operate. The company's commitment to community is a key part of its value proposition and resonates with consumers who are looking for brands that share their values.
Outsourcing
Outsourcing is the practice of hiring a third-party company to perform tasks or functions that were previously done in-house. In the context of American Giant, outsourcing is a practice that Winthrop actively avoids. He believes that outsourcing manufacturing to countries like China undermines the quality of products, weakens local communities, and contributes to a disconnect between consumers and the products they buy.
Viral Marketing
Viral marketing is a type of marketing that uses social media and other online platforms to spread a message quickly and widely. American Giant experienced a surge in popularity after a viral article in Slate called the company's hoodie "the greatest hoodie ever made." The article generated significant buzz and helped to raise awareness of the brand. Viral marketing can be a powerful tool for businesses, but it can also be difficult to control and predict.
Miguel McKelvie
Miguel McKelvie is a co-founder of WeWork and a strategic investor in American Giant. He is known for his philosophical approach to business and his commitment to ethical and sustainable practices. McKelvie's investment in American Giant reflects his belief in the importance of supporting domestic manufacturing and creating a more equitable and sustainable business model.
Q&A
What motivated Byard Winthrop to start American Giant and make all of its products in the US?
Winthrop was driven by a desire to create a clothing brand that embodied quality, community, and American-made values. He felt that the outsourcing of manufacturing had led to a decline in quality and a disconnect between consumers and the products they buy. He wanted to create a brand that was both ethical and sustainable, supporting local communities and providing high-quality products.
What were some of the challenges Byard Winthrop faced in building American Giant?
Winthrop faced numerous challenges, including sourcing high-quality materials from US suppliers, finding skilled workers, managing demand, and navigating the complexities of domestic manufacturing. He also had to overcome the perception that American-made products are more expensive and less accessible than those made overseas.
How did American Giant gain popularity and what was the impact of the viral article in Slate?
American Giant gained popularity through a combination of factors, including its commitment to quality, its unique value proposition, and its focus on American-made products. The viral article in Slate, which called the company's hoodie "the greatest hoodie ever made," generated significant buzz and helped to raise awareness of the brand. The article also created a surge in demand, which presented challenges for the company in terms of production and inventory management.
What is Byard Winthrop's perspective on the future of American manufacturing?
Winthrop believes that American manufacturing is facing a critical moment. He argues that the country's reliance on consumption and outsourcing has led to a decline in manufacturing jobs and a weakening of local communities. He believes that there is a growing movement among consumers and policymakers to support domestic manufacturing, and he is optimistic about the future of American-made products.
Why did Byard Winthrop decide to partner with Miguel McKelvie, co-founder of WeWork?
Winthrop was impressed by McKelvie's commitment to American manufacturing and his desire to create a more ethical and sustainable business model. He saw McKelvie as a potential partner who shared his values and could help to scale American Giant's operations.
What is the significance of American Giant's commitment to quality?
American Giant's commitment to quality is a key differentiator for the brand. The company uses high-quality materials and skilled workers to create durable and comfortable products. This commitment to quality is reflected in the company's pricing, which is higher than mass-produced products, but reflects the value of the craftsmanship and materials used. Winthrop believes that quality is essential for building a strong brand and earning customer loyalty.
How does American Giant communicate its value proposition to customers?
American Giant communicates its value proposition through its website, its marketing materials, and its interactions with customers. The company emphasizes the quality of its products, its commitment to American manufacturing, and its support for local communities. Winthrop believes that customers are increasingly looking for brands that share their values and are willing to pay a premium for products that are ethically and sustainably produced.
What are some of the challenges and opportunities of building a clothing brand entirely made in the US?
Building a clothing brand entirely made in the US presents both challenges and opportunities. The challenges include higher costs, limited access to certain materials, and the need for skilled workers. The opportunities include the ability to create high-quality products, support local communities, and differentiate oneself from competitors who outsource manufacturing. American Giant's success demonstrates that it is possible to build a successful business with a strong commitment to ethical and sustainable practices.
What is Byard Winthrop's message to other entrepreneurs who are considering starting a business with a focus on American manufacturing?
Winthrop's message to other entrepreneurs is that it is possible to build a successful business with a commitment to American manufacturing. He encourages entrepreneurs to be passionate about their products, to support local communities, and to be willing to face challenges. He believes that there is a growing demand for ethically and sustainably produced products, and that American manufacturing has a bright future.
What is the role of consumers, brands, and policymakers in supporting domestic manufacturing?
Winthrop believes that consumers, brands, and policymakers all play a crucial role in supporting domestic manufacturing. Consumers can make a difference by choosing to buy fewer, higher-quality American-made products. Brands can lead by example by making ethical supply chain decisions and prioritizing domestic production. Policymakers can create incentives for domestic manufacturing through regulations and policies that support ethical labor practices, environmental standards, and living wages.
Show Notes
Bayard Winthrop founded American Giant in 2011 with the simple idea to sell clothes made entirely in America at a time when most apparel manufacturing had moved overseas. The first struggle was finding all the components—the cotton, the buttons, the zippers, the rivets; the next was finding people to actually do the work—the dying, the napping, the sewing and the finishing. Once Bayard did all that he ended up with his first product, a plain hooded sweatshirt. But soon after a viral article proclaimed it “the greatest hoodie ever made” Bayard faced a backlog of orders that took him almost three years to fulfill. Today, American Giant has expanded their line to include all the basics: t-shirts, denim, flannel, and accessories, still entirely produced in the U.S.
This episode was produced by J.C. Howard, with music by Ramtin Arablouei
Edited by Casey Herman, with research help from Katherine Sypher.
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