Columbia Sportswear 1998 Annual Report Download - page 7

As one of the largest outerwear manufacturers in the world and the
leading seller of skiwear in the United States, we have developed an
international reputation across an expanding product line for qual-
ity, performance, functionality and value. Our award-winning
advertising campaigns effectively position the Columbia brand as
active, outdoor, authentic and distinctly American. Our products
appeal to a large, increasingly international consumer base. Today,
we distribute products to approximately 10,000 retailers in 30
countries. Sales have increased from $192 million in 1993 to $427
million in 1998, representing a compounded annual growth rate of
17.3 percent over the last 5 years. While our growth has been excit-
ing, our objective is to become the leading outdoor apparel brand.
Our strategy to become the global leader in the design, manufac-
ture, marketing and distribution of active outdoor apparel is com-
prised of the following elements:
ENHANCE CHANNEL PRODUCTIVITY OF EXISTING CUSTOMERS
In an effort to improve productivity and profitability for our
customers, we will continue to expand our concept shop
program and increase the installation of brand enhancement
systems. Concept shops promote a consistent brand image, are
located within the stores of our customers and are dedicated
exclusively to selling Columbia merchandise. The goal of the con-
cept shops is to increase sales by displaying a complete selection of
merchandise and promoting cross-merchandising opportunities on
a year-round basis. Smaller-scale brand enhancement systems,
which include signage and fixtures that prominently display
consolidated groupings of Columbia merchandise, offer benefits
similar to concept shops and also play an important role in our
merchandising strategy. As of December 31, 1998, we had 310
concept shops and plan to continue increasing our investment
in this area by consistently adding concept shops and brand
enhancement systems in 1999.
GROWTH STRATEGIES
LEVERAGE THE COLUMBIA BRAND IN INTERNATIONAL M ARKETS
Columbia Sportswear intends to capitalize on its size, strong US
brand position and worldwide brand recognition by targeting
certain high opportunity markets for development or expansion.
We have identified Europe and Asia as regions where outdoor activ-
ities are consistently popular and where we can enhance our
active, outdoor, authentic and distinctly American brand image
with our reputation for value in all categories. Europe represents
our most important near-term opportunity, with sales in Europe
growing at a compounded annual growth rate in excess of 79 per-
cent over the last four years, surpassing $27 million in 1998. With
the recent appointment of key sales and management personnel in
that region, we anticipate continued growth in 1999 and beyond.
DEVELOP EXISTING MERCHANDISE CATEGORIES
The opportunity to further develop existing merchandise cate-
gories such as sportswear and rugged footwear is significant. With
sportswear representing 27.9 percent of sales in 1998 and rugged
footwear claiming 7.5 percent of sales for 1998, growing each of
these divisions is a key objective in 1999. Our broad distribution in
US and Canadian markets, combined with the rapidly growing
distribution in Europe and Asia, provides us with a unique oppor-
tunity to leverage these channels by increasing our offerings to
retailers in all of the countries where we sell apparel and footwear.
By maintaining a design focus that is grounded in our “ FIVE KEY
WORDS” philosophy and providing high quality, value priced
products, we will seek to increase sales and capture market share
in both the sportswear and rugged footwear product categories.
SELECTIVELY BROADEN RETAIL DISTRIBUTION
Columbia Sportswear’s current sales distribution is comprised large-
ly of sporting goods retailers and specialty shops with 22 percent
of domestic sales in 1998 coming from department stores. Over the
long term, we see significant opportunity to increase sales of our
products to both department stores as well as footwear specialty
shops. We believe that our head-to-toe merchandising strategy,
combined with our unique and value-oriented product offerings,
creates incentive for more retailers to sell quality Columbia
Sportswear products.
Our objective is to become the leading outdoor apparel brand.
shaping the
future
She’d
gladly retire
when hell
freezes over,
but that’s
when
we’ll need
her most.
When it comes to Chairman Gert Boyle, you’re best off just getting used to her.
Because she plans on ruling until the bitterly cold end with her winter arsenal at
her side. An arsenal that includes the Bugabootoo.
™The boot with waterproof
full-grain leather upper, injection-molded waterproof shell, and double latex
seam-sealed construction. Add to that 200g Thermolite™insulation and
an active temperature rating of -25°F, and you have a boot that’ll make
sure you come out on top in the age-old battle of foot vs. nature.
For the
dealer nearest you call
1-800 - MA BOYLE . www.columbia.com