BUSINESS MATTERS

Investing in startups not LR's Strong Suit, successful designer says

When Little Rock designer Jamie Davidson launched Strong Suit three years ago he was committed to the belief that a viable, national or global fashion brand could be built from home.

Davidson pointed to homegrown success stories like Wal-Mart Stores Inc. and former President Bill Clinton as proof that an international brand could start and thrive here.

Strong Suit -- which has a line of clothing ranging from shirts and ties to tuxedos -- now is sold in more than 20 Nordstrom locations and several men's specialty stores across the United States. Sales topped $1.3 million in 2016 and revenue has grown each year. Actors including Milla Jovovich, Jon Hamm, David Oyewolo and Ty Burrell have worn Strong Suit in TV appearances and on Hollywood red carpets.

Even with the success, Davidson admits that the business hasn't grown quite like he'd envisioned. He points to a lack of local investors willing to put money into something other than real estate or medicine as an impediment not just for Strong Suit, but for future entrepreneurs who want to build a national brand in Little Rock.

Davidson's strong ties to the city -- his architect grandfather, Julian, was the Davidson in Wittenberg, Delony & Davidson -- keep him committed to Little Rock. Strong Suit's headquarters remain in the River Market, and when he is not on the road, Davidson lives in the Heights home his grandparents built in the 1960s.

During a recent break in his travel schedule Davidson sat for a Q&A. We discussed the growth of Strong Suit, impediments for entrepreneurs in central Arkansas, the state of the retail clothing industry and his recent role as a producer for Dayveon , a film by Little Rock's Amman Abbasi that recently opened the Sundance Film Festival.

Below is a transcript of the conversation edited for space and clarity.

When you launched Strong Suit you were convinced that a major clothing brand could be built from Little Rock. Do you still believe that?

Well, if this was strictly a business calculation, the last place I'd tell anybody to start a business in Arkansas is Little Rock. But I have strong ties to this city. We've financed the entire business on $1.4 million and the fact of the matter is, save for about 5 percent, every dime we have gotten has come from out of state. Little Rock has no startup community. If you want to start something and want to stay in Arkansas, go to Northwest Arkansas. They have an investor class that is looking very forward. ... We have no cohesive vision here. We need collaboration between Little Rock and North Little Rock that doesn't exist. ... And I think, unfairly, anytime anybody starts talking about investment in Little Rock, people automatically think about Warren Stephens. I think it's really unfair to put it all on one guy to do all the things that need to be done.

So somebody, some group of people -- the investor class -- has to take a much more active look at the future and not just look at things like real estate and medical technology.

Retail is rapidly changing. We see it playing out in store closures and layoffs. How prepared were you for navigating that?

It's the whole reason I started the business. We saw a white space, which we haven't been able to exploit as effectively as I'd like because it takes money. For [millennial customers] shopping is not a hobby. It is not a sport. It serves an immediate purpose. They want a value proposition. They're buying with intent and typically know what they are going to buy before they walk into a store, so the behavior is completely different. What they are buying is different.

What stores do not understand is they are not in the business of selling stuff. They are in the business of providing an amazing experience. ... If you own any business with four walls and your concern is not "what is the experience people are going to have in here?" you probably are not going to be around that long. You have to give people a reason to get out of the house and come to the store. ... Anthropologie, to me, is the model of a store that provides a great experience with unique product.

In addition to Strong Suit, you've also gotten involved in movie production. How did that come about?

Amman Abbasi is one of my closest friends in Little Rock and when we first got to be friends he had started his career in filmmaking. One of my best friends is a movie director [and Little Rock native], David Gordon Green. For years I was pressuring David to hire Amman, and about three years ago he finally acquiesced. He saw what I saw in Amman, which is a unique talent and unique point of view. ... Amman had a story he wanted to tell and he put a little money into it, I put a little money into it. Through my friend David and through the network Amman built he brought on people who are real producers, people who are much bigger names and have written much bigger checks than me.

Is movie production something you hope to do more of? Is it a good investment?

I love movies. I've always loved movies. The movie business, though, is a lot like horse racing. People don't invest in movies because they want to make money. People invest in horses because they want to go to the races. I don't know how many people actually expect to make money off of horse racing. So this is not a for-profit venture at all, it's just a process I really enjoy. I love the creativity of it. I have a lot of friends in the movie business and I love being involved as much as anything. ... I've got a couple stories I think are really interesting that I think we can tell. The trick for independent film is: What's the cheapest way you can tell a story?

***

When I was an 18-year-old college freshman at Arkansas State, my adviser, Joel Gambill, called me into his office to ask if I'd ever considered writing for the local daily newspaper. I assumed he meant after I graduated, but Gambill actually meant that month.

My professional reporting career began in May 1996. It's something I've devoted more than half of my life to, and reporting and writing a column for the Arkansas Democrat-Gazette has been, corny as this might sound, genuinely a dream come true.

That said, after nearly 21 years in this profession, it's time for a new challenge.

Thanks for reading all these years. Please continue to support quality newspapers like this one because we need them now more than ever.

SundayMonday Business on 01/22/2017

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