Clothing startup donates half of profits to country where fabric made
MCMINNVILLE, Ore. (AP) — A distinctly colored and patterned pocket created from material made in assorted countries throughout the world is the signature style for a new clothing company named Serengetee.
The company, which is owned by four college students, including 2009 Mac High grad Thomas Carey, launched in February. It's tagline is "wear the world," and it's already generating $5,000 a month in sales.
Carey, home in the McMinnville area for the summer break from his classes at Harvey Mudd College in Claremont, Calif., said the idea originated with his roommate, Jeff Steitz, a student at Claremont McKenna College.
While participating in a study abroad program on a cruise line, he picked up swatches of fabric at stops along the way. When he returned, he decided to go into business.
He recruited Carey, along with Sean Yen of Pitzer College, another of the Claremont colleges, and Ryan Westberg of the University of Arizona in Tucson.
Carey built the company website and helped develop the corporate operating structure.
Initially, the partners cut the material for the pockets in their dorm room, pinned them to black or white T-shirts to provide maximum contrast, then took them to a tailor operating in conjunction with a local swap meet. After notching their 300th sale, they decided it was time to contract with a tailor of their own.
Part of the allure of the shirts is that 50 percent of the profit is dedicated to the country where the material comes from.
Carey said half of that will be dedicated to charitable causes and the other half to microcredit loans. He said one of the partners is vetting charities and microcredit lenders.
He said Serengetee has been averaging about 10 shirts a day, but netted 100 orders over the Memorial Day Weekend by offering a special sale price. He said it has already notched more than 1,000 sales.
Customers get to select the color of their shirt and a fabric of choice from a country of choice. He said more than 1,300 combinations are possible overall.
The company charges $22 per shirt, plus shipping. Having no marketing budget, it has limited promotion through Facebook and word of mouth.
Carey's girlfriend, Sierra Gibson of Claremont McKenna, said, "The shirts themselves are pretty good advertising." She said college students like the idea of giving back through their purchase.
A unique elephant logo was developed through a website called 99 Designs, where artists can compete to develop a company's logo. The winner is paid a pre-determined amount by the business that selects the design.
While the existing website has worked for the initial launch, Carey said Serengetee has outgrown it. He said he has a new one in the works.
The partners were honored in April with the top prize in the 22nd annual Henry R. Kravis Concept Plan Competition, hosted by Claremont Graduate University's Peter F. Drucker and Masatoshi Ito Graduate School of Management.
The award, which recognizes students or alumni who develop a business plan that exemplifies the competitive nature, flair and general aptitude required of an entrepreneur in today's world, came with a cash prize of $4,500. Serengetee also won the People's Choice award, which came with an additional $500.
Carey, working on a double-major in biology and engineering, said he expects the company to grow and plans to continue with it through his senior year. He said Steitz is spending the summer in New York, where he hopes to reach out to retail boutiques.
If the company continues to expand, Carey said the partners may be able to sell it and cash out. He said investors and other companies have already shown some interest.
Copyright 2012 The Associated Press.
