Toddland: All Funny, Business

Fun stuff—Toddland is proving—is serious business.

With its “Worst Gift in the Universe” sets of underwear and socks, sweats that say “super duper,” and funny T-shirts emblazoned with quirky phrases such as “Let’s die friends,” Toddland isn’t known for its serious approach to fashion.

“We’re not cool; we don’t wear black,” said Todd Masters, founder of the nearly 2-year-old menswear line. Still, the Newport Beach, Calif.–based company is enjoying strong growth and earning plenty of kudos.

An alum of brands such as Paul Frank Industries, Modern Amusement and Abercrombie & Fitch, Masters launched Toddland in 2009 to fill a niche. “There was a hole in the market for men, and [after leaving Paul Frank] I still wanted to make fun stuff,” he said. There was also a financial incentive. “This is what I love to do, but we are all in this business to make money.” Toddland is the result of leveraging Masters’ design and production savvy and retail relationships in combination with his offbeat sense of humor. “We make fun stuff for ourselves and our friends—and it sells,” he said.

“Todd is able to translate a feeling, a sense of fun and playfulness into clothes,” said Karen Meena, vice president of buying and merchandising for Ron Robinson at Fred Segal. The store buys deeply into the brand and has since its inception. Last Holiday, Ron Robinson blew out of Toddland’s sweaters depicting UFOs abducting confused-looking sheep. The silliness, however, belies a solid business model. “Todd knows what he’s doing. He has the experience and he knows this business and he knows his customer. He’s always working and he delivers.”

Produced overseas, Toddland launched for Spring 2009 with five accounts, including 130 Urban Outfitters doors, and the goal to be the lowest-priced brand carried by the best specialty stores in the country. (Wholesale prices for the collection range from $3 to $31.) Now, the brand has grown its distribution to more than 60 accounts and has sold upwards of 100,000 of its “Greatest Pants in the Universe” basic khaki pants and 50,000 of its “I just want to ride bikes with you” T-shirt. Toddland, which employs 15, is on the cusp of a new phase.

“We joke that we’re the biggest little company in the world. We’re about to turn the corner from a small- to medium-sized company,” Masters said. Still, Masters is more interested in smart, measured growth than rapid, demand-based expansion. For example, despite its Orange County roots, beachy surf-dude vibe and accessible price point, Toddland is staying out of core surf and skate shops—even as core shops look to diversify their offerings and reach a more fashion-forward customer. “We love those stores, and they’ve definitely shown an interest, but they’re not our deal. We don’t want people to be able to buy Toddland at [core shops]; we want to retain our exclusivity and sell at only the best store in each city,” Masters said.

The brand is also opting out of launching collections for women or children, despite requests from retailers and consumers. “So much of the reason that we’ve been successful is that our retailers know that we’ll deliver only the best. If something isn’t just right, then we don’t ship it. Sometimes we miss opportunities that way, but we don’t want to enter a [segment] that we can’t execute perfectly the first time,” Masters said.Indie business model

Masters, who runs Toddland out of a 500-square-foot office near the beach, thinks outside the box to solve problems that often stymie small brands. Toddland, for example, refuses to produce salesman samples. They’re too costly, Masters said. Instead, he sells the brand using CAD drawings, fabric swatches and inspiration boards. “Our accounts trust us, and they buy without seeing samples. That saves us about $50,000 per season,” he said. Masters also takes a position on his offerings, allowing most retailers to buy at-once. That has the effect of motivating retailers to place strong orders and scoop up available inventory, Masters said. “We work a season behind, so buyers that buy further out know to save dollars for us. [Retailers] understand how we work, and they know that once something is gone, it’s gone,” he said, because overseas production means the next delivery on an item won’t be for another 60 to 90 days.

Taking a position can sometimes backfire, Masters admits. In the case of the UFO Holiday sweater, for example, only 100 were produced and sold out in 24 hours. “We had no idea it would be so popular. We could have sold hundreds more, but when I was placing the Holiday order, it was either order more UFOs or more pants—and “more pants” won. This business is all about risks, and some risks you don’t take,” he said. Still, Masters said, missed opportunities such as the UFO sweater can add to the brand’s cache. “Sometimes it’s good to be hard to get,” he said. Toddland will revisit the UFO sweater for Holiday 2010.

Business savvy, however, isn’t the only thing propelling the brand forward. The brand’s special mix of totally bizarre accessories and classic basics earns Toddland much-coveted space in stores such as Ron Robinson at Fred Segal, Fred Flare, Atrium, Villains, Service and Black Bird. “We buy a lot of their apparel, but we also buy all of their fun stuff—the wallets, the pillows, everything,” said Fred Segal’s Meena. “Their offerings are very concise, very edited—but also very original. Our customer has responded to the brand very well. They love the look and the price point and the quality.”

Non-apparel items now make up approximately 40 percent of Toddland’s offerings and are driving orders. Pre-orders for a custom, 5-lb. gummy bear have reached nearly 2,000. Masters expected to sell only 1,500. And for Holiday 2010 Toddland is debuting a walking stick. “I just think they’re hilarious,” Masters said.