Melengo's Justin Kwong on the future of end-to-end clothing manufacturing | E1913
14 Mar 2024 (8 months ago)
Jason kicks off the show (0s)
- Justin Kwong from Melengo will be discussing the future of end-to-end clothing manufacturing.
- Jason will share his new framework for automating, deprecating, and delegating within a company.
- Vanta is the sponsor for this episode.
- Wizard can help turn innovative ideas into concrete product designs.
- EPO can help accelerate experimentation velocity.
- Melengo is an end-to-end clothing manufacturing platform.
- Melengo went through Jason's accelerator program.
Justin Kwong from Melengo joins Jason (1m48s)
- Justin Kwong from Melengo joins Jason to discuss the future of end-to-end clothing manufacturing.
- Melengo is a platform that enables brands and creators to develop, finance, and scale apparel lines.
- Melengo handles the complex parts of the manufacturing process, including design, production, and fulfillment.
- Melengo uses technology to automate parts of the manufacturing process, reducing development time from months to weeks.
- Melengo offers a range of services, including:
- Design: Melengo uses AI to assist in the design of apparel.
- Manufacturing: Melengo manufactures apparel in countries such as China, Vietnam, India, and Pakistan.
- Fulfillment: Melengo partners with fulfillment companies to deliver apparel to customers.
- Melengo can produce a wide range of apparel, from hoodies to cashmere sweatshirts.
- Melengo can help brands and creators compete with high-end brands by producing high-quality apparel.
Justin demos Melengo and its use cases (4m38s)
- Melengo's Moo app is a free platform that allows users to design and manufacture clothing, handling all aspects of the manufacturing process from product development to order fulfillment.
- Users can collaborate with Melengo representatives and designers to provide feedback and make changes to their designs.
- Melengo offers development packages ranging from $300 to $500 per product to help users get their samples off the ground.
- The platform provides transparency and visibility into the manufacturing process, allowing users to track the progress of their orders.
- Melengo's business model involves helping creators and brands with production runs, with a minimum order quantity of 50 units, and charges a small margin on the factory side, which is abstracted through the pricing for customers.
- By negotiating bulk buying from factories, Melengo can offer lower prices to customers compared to sourcing on their own.
- A strong sales team plays a crucial role in the success of the business model.
Vanta - Get $1000 off your SOC 2 (9m45s)
- Vanta helps B2B startups achieve SOC 2 compliance quickly and easily.
- SOC 2 compliance is essential for companies that store customer data in the cloud.
- Vanta can save companies hundreds of hours of work and up to 85% on compliance costs.
- Vanta also automates up to 90% compliance for GDPR, HIPAA, and more.
Melengo’s business model, initial customers, and fundraising (10m37s)
- Justin Kwong, the founder of Melengo, an end-to-end clothing manufacturing company, aims to empower designers and small brands by providing access to fast and agile supply chains similar to those of fast fashion giants.
- Melengo's unique selling point is its ability to create customized and unique designs based on inspiration from various sources, rather than simply branding existing products.
- Despite initial skepticism from some investors, Kwong emphasizes the importance of understanding the founder's vision and talking to customers to grasp the true potential of the business.
- Melengo's investor, Cyan Banister, had a personal interest in the fashion industry and saw the potential in simplifying the clothing manufacturing process.
- Melengo's success in the accelerator program was driven by their innovative approach and the competitive environment created by weekly rankings among the participating companies.
- Melengo received a $25k check from Founder University, which helped them get started.
- Melengo now offers founders the standard YC Tech Stars deal of 7% for $125k, and founders can choose whether they want to come to the accelerator or not.
- Uizard (UIzard) is an AI-powered suite of UI and UX design tools.
- Uizard's text-to-UI mockup tool, called AutoDesign, generates app or web designs from simple text prompts.
- Users can iterate on these designs with an AI assistant and export the completed designs as React or CSS code.
- Uizard helps users go from idea to mockup in minutes, saving time in product development.
Building Melengo's team and the next steps for finding product-market-fit (23m26s)
- Melengo, a seed-stage company led by founder Justin Kwong, is seeking $10 million in Series A funding after reaching $2-3 million in net revenue.
- Melengo focuses on improving unit economics and profitability in the sampling process and believes in the strength of multiple co-founders for redundancy and diverse expertise.
- The company has brought on Greg, an experienced textile professional from Nike, and Bon, an AI expert previously working at Meta, as co-founders.
- Melengo acquires new customers through referrals, especially in the enterprise sector, and educates entrepreneurs through content, including blog posts, TikToks, and Instagram Reels.
- Melengo has partnered with Fourth Wall, a platform with 2 million monthly active users, to offer custom apparel manufacturing services to creators on the platform.
- Melengo is considering developing a Shopify app to streamline the process for Shopify brands to create and sell custom apparel.
- Melengo aims to make it possible for anyone to create their own clothing brand without the need for large-scale production.
- Founder University offers a 12-week course for entrepreneurs, charging a $500 reservation fee that is refunded upon completion, and provides $125k in funding for 7% equity.
Eppo. Accelerate your experimentation velocity with Eppo. Visit geteppo.com/twist (36m50s)
- Eppo is an experimentation and feature management platform that centralizes experimentation workflows across an organization.
- It offers powerful analysis tools and integrates with existing feature flags or Eppo's SDK.
- Eppo provides automated updates, shared reports, and allows for deeper analysis of experiment results.
Jason’s A.D.D. framework (Automate, Deprecate, Delegate) (37m50s)
- Startups should automate tasks, deprecate non-impactful activities, and delegate tasks to increase productivity.
- A transparent management system, such as time blocking and reporting, can help assess work impact and identify areas for improvement.
- Justin Kwong, founder of Melengo, emphasizes the importance of tracking and consolidating daily and weekly tasks to ensure easy replacement of employees.
- Outsourcing non-core tasks to platforms like Upwork and Fiverr, or to lower-cost regions, can save companies significantly on labor costs.
- Automating and deprecating tasks can free up employees' time, allowing them to focus on higher-value activities.
- Artificial intelligence is playing a crucial role in catalyzing these changes by making it easier to find and manage remote workers.
- Companies should aim to increase productivity by at least 50% per year by becoming 7% more efficient every month.
- The "ADD" framework (Automate, Deprecate, Delegate) can help individuals and teams identify opportunities for improvement and increase efficiency.
- Sharing efficiency concepts and best practices with others can lead to further improvements and innovations.