Pickleball – the fastest growing sport in America – is going to see its fair share of interest from entrepreneurs and investors in the coming years. And for this team of veteran apparel & footwear merchants, the opportunity to equip, clothe, and engage devotees of this popular sport was too much to pass up.
PB5star soft launched in true insider-style at the eTail West conference in Palm Springs in late February, with a private pickleball tournament for the who’s who of the retail industry.
Founder and CEO Chris Gallagher is an apparel and footwear industry luminary whose former footwear company, Vionic, was acquired for $360M in 2018.
Gallagher has assembled a team of retail veterans from his past lives for this latest venture. Angela Caltagirone, PB5star’s Chief Digital Marketing Officer, became Vionic’s CMO after a 25-year stint at Williams-Sonoma
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Despite a shared rolodex that could enable the founding team to succeed using a traditional retail model, the brand has opted to pursue a staged launch that begins with DTC- and in doing so, writing a new go-to-market playbook for 2024.
Zigging when others zag: landing the DTC sales model first
For one, the company is pursuing a DTC (direct-to-consumer) sales model, at least for the early stages of the brand.
“At PB5star, we’re connecting with our community, starting with a direct-to-consumer approach that allows us to quickly innovate and adapt our high-quality products,” co-founder and CEO Chris Gallagher says. “This agility, combined with our commitment to detail and styling, sets us apart in crafting a unique brand experience that extends beyond the court.”
The DTC model has witnessed significant challenges in recent years for various reasons, including vastly increased costs of advertising, and increased supply chain costs making everything from manufacturing, to shipping, to product returns more expensive.
Would-be DTC brands need to be fully fluent in the true costs of the business model and be profitable early. DTC brands are also learning that the grass is not greener on marketplaces like Amazon
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To wit, PB5star’s founding team knows the company cannot rely exclusively on online distribution forever.
A fast-follow with strategic retailer partnerships
While DTC comes first in the timeline, Caltagirone says that the company looks forward to partnering with retailers who can offer a different buying experience and reach customers in specific, authentic contexts – such as at sporting clubs, resort pro shops, and community events.
Caltagirone also understands that retail marketplaces like Amazon will need to factor into their distribution strategy. “Unlike 10-15 years ago, we will have to address how we approach marketplaces and our strategy to be where our customers are with a thoughtful approach and product segmentation.”
Financial and technology fundamentals at the forefront
The brand’s intention to start with DTC and quickly expand to traditional retail and marketplaces means both the financial model and operations must be ready for all these channels right out of the gate.
Rather than starting out with startup-level technology that would need to be replaced in short order, the company has invested in a tech stack that will enable the company to scale quickly.
“We built a strong foundation for our future with the full customer experience and journey in mind,” Caltagirone says. This stack includes Shopify, NARVAR for post purchase service and returns processes, a Netsuite ERP omni- channel inventory management and supply chain integration, and a JOOR instance to seamlessly work with future retail partners. “A game-changer for us has been immediately embracing Gen AI and working with FOMO.ai in developing content, saving hundreds of hours, and most of all getting ready to address Google
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“Usually a mom and pop pickleball brand is not going to be doing that. So we already have sights on building the foundation so that we can grow, as well as go global,” Caltagirone says.
Community-building
Founder Chris Gallagher however insists it’s not just about selling gear. “It’s about building a community anchored in camaraderie, wellness, and the sheer joy of Pickleball.”
Gallagher first noticed pickleball’s growing popularity in clubs in Palm Beach, Florida. He was struck by the sport’s ability to captivate a diverse age range, including young adults, creating an atmosphere of joy and camaraderie.
“Pickleball is more than just a game; it’s a celebration of community, an experience that resonates with everyone.” Gallagher says. This connection with the sport’s social aspects is influencing the culture of PB5star that is being created.
Serving a highly social sport, PB5star’s intention is to get involved in grassroots, real-life events, and philanthropic activities with the pickleball community reflects a deeper level of commitment than typical retail brands might show.
The company plans to bring in real experts, such as physical therapists, podiatrists, certified health specialists, and fashion specialists to contribute to product and content. This approach ensures that the community receives useful, credible information that enhances their playing experience and lifestyle, fostering a deeper brand-community relationship.
Gallagher points out that the majority of the apparel is also made in the US. “[This] helps our local communities, create jobs and also offers advantages such as shorter lead times, speed to market & smaller test runs,” he says.
The confidence of having done it before – and the freedom to do it differently this time
The brand’s biggest asset may be that the new rules of retail are still being written. There’s very few ‘purist’ shoppers who are loyal to a single way of discovering brands and transacting. Pickleball is on the rise – which like any major trend, could present a tailwind or a target on their back.
But past experience and connections are likely to create an advantage. “There is an advantage to having done this before. Being a founder of other successful brands along with the experience, intuition, relationships and a connection to a talented team that I have worked with in the past, helps speed up the process to bring it all together.“
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