Reef Brazil Gets Foot in Surf-Wear Door : Brothers’ Lightweight Sandals Are Big Hit With Beach Crowds in U.S. and Overseas
Having lugged surfboards across beaches since he was 11, Fernando Aguerre draws on experience when he talks about the value of a good sandal. But Aguerre says he could never find a comfortable pair, only ones that were weighty with straps that burned the skin.
So, in 1985, he decided to start making his own.
As Aguerre expected, his National City-based company, Reef Brazil, quickly developed a loyal following among surfers by providing a sandal that is both functional and fashionable. And by introducing his colorful sandals at a time when mainstream America was hungry for beachwear, Reef Brazil carved a niche in the larger, active outdoor-wear market as well.
Explaining the surf-wear craze, Aguerre said it was just a matter of time before the general consumer realized that surfers have a keen fashion sense for products that are comfortable, colorful and unique.
“We don’t want to put a lid on ourselves,” said Aguerre, who is marketing his sandals not only to surfers but to fashion-conscious casual dressers as well. “We’re after the big bucks.”
Reef Brazil and other surf and beachwear companies, including Ocean Pacific, Gotcha Sportswear and Quiksilver USA, are riding a wave of consumer popularity and hanging some big sales numbers. According to industry sources, sales of surf wear and accessories are more than $1 billion a year.
Since Aguerre and his younger brother, Santiago, launched Reef Brazil, the company has definitely been riding a sales crest, growing from 3,000 pairs of sandals sold in 1985 to 450,000 pairs sold through the first seven months of 1989. The company had expected to sell no more than 350,000 pairs for all of 1989.
In the process, Reef Brazil has built a sales and distribution network that now includes more than 1,900 retailers, from small surf shops to giant operations, including Nordstrom department stores and L. L. Bean mail-order house.
For 1989, Reef Brazil expects revenues to reach $3.1 million, up from $1.3 million last year. In 1990, sales should exceed $4 million, the company said. Nearly 25% of Reef Brazil’s sales are exports to European countries, Canada, Japan, New Zealand, Australia and elsewhere.
As Reef Brazil’s first customer, Jeff (J. K.) Kinney, owner of the Surf Club in Pacific Beach, has closely observed the company’s growth.
‘Selling Everywhere’
“I wouldn’t say they’re blowing away other manufacturers, but they are selling everywhere, France, Brazil, you name it. Fernando and Santiago are aggressive in their marketing. They’re little international trade guys.”
But just producing a good product doesn’t necessarily mean success for a company, especially in the surfing business, according to James (Jimbo) Gaskin, associate advertising director for Surfing magazine, one of the sport’s leading publications. To arouse the interest of surfers, Gaskin says, a company must create an image.
“Reef Brazil has created a vibe . . . the word’s out that these guys are happening,” Gaskin said. “Creating a certain image, having mystique. That’s really important. For example, you can have the best surfer in the world, but, if he doesn’t come across in photos, he’s a dud. Reef Brazil has come up with a product that not only is durable and lightweight, but one that looks cool.”
Creating the desired sandal, however, didn’t happen overnight.
“We’ve spent two-thirds of our lives surfing in different places of the world, talking to surfers, finding out about their needs,” said Aguerre, who was born and raised in Argentina. What he discovered from these beach chats was that the typical rubber sandal could stand some improvement.
Another Material
“The first limitation with rubber is that it’s a heavy material,” Aguerre said. “And the toe strap was so tough that it destroyed your feet. So a lot of surfers were wearing slippers to the beach. That’s OK when you’re going from the bed to the bathroom, but it didn’t do much for the rest of us who wanted to look good.”
Unable to find quality sandals to stock their surf shop in Argentina--an operation the Aguerre brothers ran before moving to San Diego--the pair began talking with rubber manufacturers in search of an alternative material suitable for sandal construction. That’s when the Aguerre brothers discovered EVA, a foam-like material one-third the weight of rubber.
“It was very easy to change the density of EVA, so you could make it harder for the sole of the sandal and soft and cushiony for the insole,” Aguerre said. “And it’s very easy to produce it in different colors.”
Working with 15 colors, Reef Brazil combines the shades for more than 45 looks. One of its more popular styles is a striped model, with an insole decorated with vertical jade and blue stripes.
‘Going to Last’
And to save toes, Aguerre uses polypropylene for Reef Brazil’s straps. “It’s soft as cotton, but tough. It breathes too.” Average price for adult Reef Brazil sandals is $17.95
Like most fashion trends, however, the current surf-wear rage is almost sure to fizzle, which could send many manufacturers for a spill. But Eric Bowie, assistant manager of footwear at L. L. Bean, says Reef Brazil has a good chance to endure in the marketplace.
“I’m sure their sales are benefiting from the current boom, but that’s not why we’re carrying them,” Bowie said. “We shy away from trendy items. We carry them simply because it’s a good product. It’s a well-built flip-flop that’s going to last. And it’s comfortable.” Reef Brazil sandals’ soles come with a lifetime warranty.
Bowie, who scouts new products for the traditional, outdoor-oriented mail-order house in Freeport, Me., added: “Reef Brazil was our best-selling flip-flop this summer.”
Although the Aguerre brothers have no plans to enter the clothing market, Reef Brazil will expand its women’s and children’s sandal line and provide even more color combinations. Recently, Reef Brazil also started selling surfboard racks and bags.
Aggressive Marketing
And its marketing campaign continues to be aggressive. Nike may have Bo Jackson promoting its products, but Reef Brazil has Derek Ho, three-time Hawaiian Triple Crown surfing champion.
“We were hoping he would promote our product for us,” Aguerre said. “When we finally met him, he was already wearing our sandals.”
In 1981, Santiago left Argentina and embarked on a “surf-ari,” hitting the waves off the coasts of Tahiti, the Hawaiian Islands and Southern California. Upon arriving in San Diego, Santiago became enchanted with the coastal city and decided to become a permanent resident.
After settling down and finding work at a surf shop, Santiago persuaded his brother, Fernando, to join him. By late 1984, the Aguerre brothers had conceived their plan to market their beach sandal and borrowed more than $25,000 from friends and family to launch their American enterprise.
In National City, Reef Brazil has 15 employees and 5,700 square feet of office and warehouse space. The company contracts with a manufacturer in Sao Paulo, Brazil, which employs nearly 150 workers, to produce the sandals. There are about 45 sales representatives in the United States.
But the Aguerre brothers don’t worry about losing control of a company that is experiencing explosive growth. In fact, they intentionally hold back Reef Brazil’s growth by selling only to select retailers.
“We don’t want to sell to a Sears or a K mart, we want to protect the surfer’s mystique,” Aguerre said. “We don’t want to become a huge company with thousands of employees. I don’t want to have to wear three-piece suits.” Fernando, who sports a ponytail, generally wears shorts and, of course, Reef Brazil sandals to work.
