WEBVTT - The Making of Modest Athletic Wear 

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

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<v Speaker 2>You're listening to Bloomberg Business Week with Carol Masser and

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<v Speaker 2>Tim Steneveek on Bloomberg Radio. Well, we've gotten some various

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<v Speaker 2>reads on the consumer thanks to recent reports from Nike, Carnival,

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<v Speaker 2>and the US airlines. We're also going to get a

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<v Speaker 2>read when the banks report in the coming week. So

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<v Speaker 2>what about a view from a small business. Candace Softy

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<v Speaker 2>is the founder and CEO of Snoga Athletics. She joins

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<v Speaker 2>us in New York in the Bloomberg Interactive Brokers Studio. Candace, Welcome.

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<v Speaker 2>We do want to get your read on the consumer

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<v Speaker 2>on the market. But first, Snoga makes what you describe

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<v Speaker 2>as modest activewear. Define it, what exactly is it?

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<v Speaker 1>So? I created about twenty years ago out of high school,

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<v Speaker 1>a skirt with an attached lugging. So the skirt comes

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<v Speaker 1>to that the knee sometimes a couple inches above for

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<v Speaker 1>any woman who's looking to a little bit more, be

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<v Speaker 1>a little bit more covered in the gym.

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<v Speaker 3>Why did you think we needed to do that? Although

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<v Speaker 3>I kind of loved the idea, but go ahead.

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<v Speaker 1>So it all started literally twenty years ago, right when

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<v Speaker 1>I graduated high school, I decided for religious reasons, I

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<v Speaker 1>was going to start wearing skirts. Nothing was out there.

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<v Speaker 1>There was no Instagram, no Facebook, and I created the

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<v Speaker 1>first sample. I actually worked for my father at the time,

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<v Speaker 1>who was in the clothing manufacturing business, and I created

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<v Speaker 1>a sample for myself, sold a door to door. There

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<v Speaker 1>was some interest and I figured if I needed it,

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<v Speaker 1>someone else must need it. But the world wasn't as

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<v Speaker 1>small back then because of you know, the lack of

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<v Speaker 1>social media.

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<v Speaker 2>So I wonder about the you know, what was happening

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<v Speaker 2>at that time, because I feel like that was like

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<v Speaker 2>pre at leisure at that time.

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<v Speaker 1>Definitely was there washing out there.

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<v Speaker 2>Yeah. So since then, I mean, at leisure has just

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<v Speaker 2>taken off. So you were early to something, you saw

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<v Speaker 2>something early. What has happened to this market since you

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<v Speaker 2>entered it. I mean it seems like it's become so

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<v Speaker 2>much more competitive.

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<v Speaker 1>Yes, it actually we actually created a category. Honestly when

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<v Speaker 1>we started back when I was nineteen, so a little

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<v Speaker 1>lesson twenty years ago. When I started the business, we

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<v Speaker 1>were selling door to door. I had a couple of kids.

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<v Speaker 1>I stopped for a few years, and then I ended

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<v Speaker 1>up partnering with my mother and my husband. We're now

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<v Speaker 1>family business and we grew the line from one style

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<v Speaker 1>now to about thirty different styles. And yes, we just

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<v Speaker 1>molded in with the rest of the world, melted in

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<v Speaker 1>with the rest of the world of ath leisure. So

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<v Speaker 1>we didn't look at it like ath leisure. At the time.

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<v Speaker 1>We looked at like exercise clothing. But now the word

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<v Speaker 1>is ath leisure and that's what we're doing.

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<v Speaker 3>You know, it's so funny. I was thinking about it

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<v Speaker 3>in prep for this segment, and I think there was

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<v Speaker 3>something there ran in the Times and it was like

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<v Speaker 3>or something on social about people are there's like a

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<v Speaker 3>little bit of a debate between like tight you know,

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<v Speaker 3>it's leisure more where at the gym, versus stuff that's

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<v Speaker 3>a little bit more baggy. And I do feel like

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<v Speaker 3>it is evolving. You think about though, as you said,

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<v Speaker 3>you wanted to wear like a skirt or something like

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<v Speaker 3>you were thinking about wearing shirts. Yes, but there are

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<v Speaker 3>different cultures and people who work out but still want

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<v Speaker 3>this kind of you know, wardrobe and clothes to wear.

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<v Speaker 3>And it sounds like that's really part of what you

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<v Speaker 3>were thinking in the mission.

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<v Speaker 1>Yes, so that's pretty much the whole story. I was

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<v Speaker 1>just saying as a kid, I was watching an OPRAH

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<v Speaker 1>episode and there was a Muslim lady who was a trainer,

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<v Speaker 1>and she was explaining in the interview that she used

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<v Speaker 1>to wear a baggy long T shirt because she couldn't

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<v Speaker 1>find anything that that would suit her working out. I

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<v Speaker 1>was a kid at the time, so obviously the stay

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<v Speaker 1>in the back of my head. Now fast forward years later,

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<v Speaker 1>when I was in the same position, I couldn't believe

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<v Speaker 1>how many women fall under the same umbrella with wanting

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<v Speaker 1>this and now ten years officially into this business, it's

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<v Speaker 1>more than just religious reasons, as women that just either

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<v Speaker 1>their age or they just don't feel comfortable in the

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<v Speaker 1>legging alone, right exactly?

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<v Speaker 2>Is all direct to consumer? What's your distribution?

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<v Speaker 1>Yes, so the majority of our company is Yes, our

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<v Speaker 1>website and we're on Amazon. We're in boutiques around the country.

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<v Speaker 2>Where do you see the biggest driver of traffic is

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<v Speaker 2>our at.

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<v Speaker 1>Our website is our main driver of traffic.

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<v Speaker 2>Yes, more so than Amazon, much more. And do you

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<v Speaker 2>prefer people buy directly from you rather than through Amazon?

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<v Speaker 2>It's more expensive to Okay.

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<v Speaker 1>That's interesting, Yes, because we are our customer service is

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<v Speaker 1>our main part of how we started and wanted to

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<v Speaker 1>separate ourselves and every other Well, there wasn't really any

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<v Speaker 1>other company. Now there is, but that's a main part

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<v Speaker 1>of our business is you know, making our customers happy,

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<v Speaker 1>bringing them back.

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<v Speaker 3>And I love it that. You know, it's for women,

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<v Speaker 3>but it's also for girls, so you're thinking about, you know,

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<v Speaker 3>a younger generation who probably have the same needs, demands or.

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<v Speaker 1>Wants exactly, and we sell little girls now also.

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<v Speaker 3>Yeah, so okay, we are Bloomberg. You've been doing this now,

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<v Speaker 3>you said for ten years ten years.

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<v Speaker 1>I did start it and then I stopped it, so

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<v Speaker 1>I guess officially ten years.

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<v Speaker 3>Officially ten years. So give us an idea of like

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<v Speaker 3>the growth of this business because I do think certainly

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<v Speaker 3>coming off the pandemic. Well well oh let's go there.

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<v Speaker 3>Like what was it like working through the pandemic?

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<v Speaker 1>So it was very interesting, we got we were very lucky.

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<v Speaker 1>We had our the pandemic hit, the world is shutting down,

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<v Speaker 1>and our last shipment just slid right in perfect timing

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<v Speaker 1>before the world was basically flashing down, and we did

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<v Speaker 1>very well. We did very well during the pandemic. Did

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<v Speaker 1>demand ramp up, Yes, it really did, because people were

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<v Speaker 1>at home, they were working at at home. People were

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<v Speaker 1>on their on their computers more, on their phones more.

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<v Speaker 1>We were also on social media on Instagram at the

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<v Speaker 1>perfect time when that first started a few years in,

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<v Speaker 1>so we got the best of Instagram as at first before.

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<v Speaker 3>I I know Tim wants to jump back in again,

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<v Speaker 3>but what about supply chains? Like, what was that like

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<v Speaker 3>during the you do you guys manufacture overseas?

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<v Speaker 1>We manufacture both overseas and domestically. You do, yes, we do.

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<v Speaker 1>So we did a little bit of both and we

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<v Speaker 1>it just thankfully it worked out.

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<v Speaker 3>What's the cost difference in doing it? Because I think

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<v Speaker 3>this is something it's interesting post pandemic, we are talking

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<v Speaker 3>to more and more companies that have multiple supply chains

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<v Speaker 3>or growing their supply chains to make sure and often

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<v Speaker 3>having a supply chain in the market that they sell.

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<v Speaker 3>Is there big differences in terms of cost and doing

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<v Speaker 3>business an overseas supply chain versus the US supply chain.

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<v Speaker 1>There is there is a cost difference. It's also a

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<v Speaker 1>little bit easier overseas, for it is for certain things

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<v Speaker 1>like it's like a with trims and and things you know,

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<v Speaker 1>come out a little bit faster. But we do make

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<v Speaker 1>it a point to manufacture here. Also, are do.

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<v Speaker 2>You plan to move manufacturing completely over here?

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<v Speaker 1>We're we're thinking about doing more of a percentage here.

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<v Speaker 2>Yes, Like so Carol was asking about cost, but I mean,

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<v Speaker 2>is it feasible to actually not import? You know, we

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<v Speaker 2>talk a lot about what the President wants to see,

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<v Speaker 2>and that's you know, manufacturing return here to the US.

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<v Speaker 2>But there are some things that just make it incredibly

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<v Speaker 2>difficult right to cost.

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<v Speaker 1>Here in New York City, it's not as simple to

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<v Speaker 1>manufacture active where as it is maybe somewhere in La. Yeah,

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<v Speaker 1>but once you set yourself up for that kind of system,

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<v Speaker 1>which you just you I guess, it just ends up

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<v Speaker 1>working out with the numbers and you could tweak here

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<v Speaker 1>and tweak there. Anything's possible.

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<v Speaker 3>How do you think about you know, we, as you

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<v Speaker 3>would guess, talk a lot about news coming out of

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<v Speaker 3>Washington and love talking to small business owners, medium sized

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<v Speaker 3>business owners. It's so much the backbone of the US economy.

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<v Speaker 3>We feel like we also talk to you know, the

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<v Speaker 3>CEOs of publicly held companies, big companies and the idea

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<v Speaker 3>of uncertainty that's out there, not sharing what's going to

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<v Speaker 3>come down in terms of regulations and policies, it's making

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<v Speaker 3>it tough for I think some companies to move forward.

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<v Speaker 3>Tell us how any of this is impacting your environment.

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<v Speaker 1>I think it would be nice to have more support

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<v Speaker 1>for small businesses. I don't think there is nearly enough

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<v Speaker 1>support at all, But I think, yes, you do need

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<v Speaker 1>the small businesses because now you're finding the small businesses

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<v Speaker 1>are the ones that are having these ideas and that

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<v Speaker 1>larger companies are buying them. So we have to support

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<v Speaker 1>the small businesses a lot better than we are now.

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<v Speaker 3>Candice, what would you like to see in terms of

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<v Speaker 3>a specific small business policies, Like what kind of policy

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<v Speaker 3>sees do you think are lacking that would actually help

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<v Speaker 3>you and others in the small business community.

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<v Speaker 1>Well, I just think like opportunities either if it's not,

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<v Speaker 1>I mean it just I guess it depends on the

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<v Speaker 1>state you're actually working out of. Also with tax benefits

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<v Speaker 1>and certain opportunities like that. But that's a lot, that's

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<v Speaker 1>a large part of it. Yeah, small businesses can carry

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<v Speaker 1>certain certain expenses like that. Yeah, and and and and

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<v Speaker 1>keep going strong.

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<v Speaker 3>And it varies certainly right from state to state.

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<v Speaker 1>Especially since you're trying to employ local people. You know,

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<v Speaker 1>you're you're you need that support.

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<v Speaker 2>Where do you see demand coming from? I know certainly

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<v Speaker 2>I would imagine New York City is a big market,

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<v Speaker 2>But where are your big markets?

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<v Speaker 1>So are our main customer is in is in the South.

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<v Speaker 1>That's our Yes, that's our main customer. We have more

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<v Speaker 1>conservative customer. So, uh, we do a ton of business

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<v Speaker 1>in Texas. We do. I mean it's really everywhere, but

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<v Speaker 1>a lot of business in Texas. Uh, we do a

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<v Speaker 1>lot of busines in Indiana. I'm trying to think of

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<v Speaker 1>the main places.

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<v Speaker 2>Do you know other do you know other demographic info

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<v Speaker 2>about your customers?

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<v Speaker 1>Well, our main demographic of our customer would be more

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<v Speaker 1>of a conservative customer in the way they dress, in

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<v Speaker 1>the way they live. But now, recently, we designed a

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<v Speaker 1>skirt that's called a Perfect Pencil skirt that I would

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<v Speaker 1>compare to the Lululemon Men's Tech pant for men. So

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<v Speaker 1>it's a wrinkle resistant, ribbed, high performance fabric skirt that's

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<v Speaker 1>for the everyday working person. Nothing to do with modest,

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<v Speaker 1>not modest most women wear I should say most. There's

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<v Speaker 1>a lot of women that wear skirts to work and

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<v Speaker 1>it's just great roll it in a bowl, stick it

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<v Speaker 1>in your stick it in your bag. You can actually

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<v Speaker 1>wear it to the gym if you want it, wear

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<v Speaker 1>it to skirt, back to work.

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<v Speaker 3>I'd wear this to work.

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<v Speaker 1>It's a great skirt.

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<v Speaker 3>Oh my god, Wait, which one is it? Wait? I'm

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<v Speaker 3>looking at it.

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<v Speaker 1>A couple of different called our perfect pencil skirt. It

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<v Speaker 1>has two flat pockets in the front, so it's very

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<v Speaker 1>very flattering. It looks great on everybody from an extra

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<v Speaker 1>small all the way to three X. We're very size inclusive. Yeah,

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<v Speaker 1>and it's just it's an amazing skirt.

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<v Speaker 3>I listen. I have often found yoga pants and different

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<v Speaker 3>things that are really they actually look so good that

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<v Speaker 3>you can wear them. So where do you want to

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<v Speaker 3>go with this? Give us an idea, and give us

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<v Speaker 3>an idea. How much the business has grown?

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<v Speaker 1>So our business grew a nice amount of the past

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<v Speaker 1>few years.

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<v Speaker 3>That's a nice amount.

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<v Speaker 1>That's a.

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<v Speaker 3>Number.

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<v Speaker 1>We're going like fifty percent for a few years, and

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<v Speaker 1>then now it's taking smaller percentages, but it's growing, but.

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<v Speaker 3>That's off a larger base, I would assume exactly.

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<v Speaker 1>It's also we introduce a lot of new things to

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<v Speaker 1>the line, trying to see what sticks. Our little girl's

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<v Speaker 1>line is doing very well.

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<v Speaker 3>I could see that.

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<v Speaker 1>Yeah. Yeah, and we're trying to bring in our not

0:10:43.520 --> 0:10:45.160
<v Speaker 1>trying to bring in We brought in this year our

0:10:45.160 --> 0:10:48.600
<v Speaker 1>weekend wear, our dresses, our skirts, and next doing metal.

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<v Speaker 3>So yeah, it's like you're branching out. Are the dudes

0:10:51.080 --> 0:10:52.200
<v Speaker 3>going to get anything or nah?

0:10:52.280 --> 0:10:54.520
<v Speaker 1>So actually it's funny. We do get some requests for

0:10:55.520 --> 0:10:58.680
<v Speaker 1>our bike shorts with actual like a shorter legging attached,

0:10:58.720 --> 0:11:01.080
<v Speaker 1>but we're focusing now one our little girls, in our

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<v Speaker 1>and our ladies. There's still there's still a little bit

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<v Speaker 1>of a hole in the market.

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<v Speaker 3>So yeah, that totally totally makes sense. So fun to

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<v Speaker 3>talk with you, and I truly mean it, like we

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<v Speaker 3>talked to a lot of the large cap company is

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<v Speaker 3>always important, but it's really fun to get an idea

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<v Speaker 3>of what's going on, especially for small businesses. Because she continued,

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<v Speaker 3>do your thing right. Yes, really good stuff, Kenna, Thank

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<v Speaker 3>you so much. Have a great weekend. Kendace Afti. She's

0:11:22.200 --> 0:11:25.720
<v Speaker 3>founder and CEO of Snoga Athletics. Joining us right here

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<v Speaker 3>in our Bloomberg Interactive Brokers studio