Columbia Sportswear 1999 Annual Report Download - page 6

Growth Strategies
We’ve succeeded over the past seven years in increasing the diversity of
Columbia’s geographic revenue base substantially. In 1999, 28 percent of
sales came from international markets, up from 12 percent in 1993. Canada,
Western Europe and Asia are Columbia’s three largest international markets. In
addition, we have distributors selling our products in Eastern Europe, South America
and the South Pacific ... 38 countries in all. With overall international sales climbing 42
percent from $91 million in 1998 to $129 million in 1999, we’ve strengthened Columbia’s
foothold in foreign markets and have capitalized on significant expansion opportunities to help drive
Company growth.
We are bullish about prospects in our three key international markets because they are
characteristically similar in many ways to the United States. Specifically, the population and
demographics within these markets match our strategic targeting objectives, consumer income and
spending at this time are relatively strong, and the climates are generally well-suited to the types of
products we design. In addition, these markets are currently dominated by small regional brands
that have neither the global brand identity nor the sourcing and distribution capabilities that
Columbia has established.
Columbia Sportswear has shown impressive top line growth over the past seven years, driving sales
from $192 million in 1993 to $471 million in 1999. We’ve achieved this growth by staying true to
our 62 year-old active outdoor roots, both in product offering and brand identity. Using five key
words – Outdoor, Active, Authentic, American and Value – to drive merchandising and
marketing strategies, Columbia has catapulted to the top of the outdoor apparel
industry, securing a place as the nation’s number-one skiwear label and one of
the largest outerwear companies in the world.
Moving forward into the new millennium, Columbia will continue to
focus on four key strategies to drive top line growth and increase
market share.
Canada
Columbia first entered the Canadian market in 1988,
where the country’s cold, wet climate presented a
great sales opportunity for an established U.S.
outerwear brand. Moving from distributorship to
subsidiary in 1992, our Canadian operations
have grown every year without fail,
achieving net sales of $50 million in
1999, a 28 percent rise over net
sales of $39 million in 1998.
To sustain this growth, we
have maintained the same
consistent marketing
message that has served
to build broad
awareness of the brand
and an appreciation for
its characteristic value
and quality attributes.
To support strong
categorical expansion in
Canada, we’re mirroring our
U.S. strategy for distribution.
Specifically, we are further
developing the Columbia presence
across multiple retail channels, while
continuing to nurture our relationships with
sporting goods chains throughout the country.
Europe
Columbia’s European direct business grew 52
percent in 1999, from revenues of $27 million in
1998 to revenues of $41 million in 1999. This
increase is the result of calculated efforts on the part
of our management team to strengthen European
operational infrastructure and unify our global
marketing message.
A trend toward greater market acceptance of
American outdoor products has also added to our
success in this region.
With 12 direct markets and 12 distributors across
Europe, we’ve built a foundation that will help
Columbia to maneuver in the complex and
challenging European retail environment in 2000
and beyond. Going forward, we will focus on
expanding Columbia’s presence in Germany and
France, two of the largest European markets. We also
plan to expand the Company’s customer base by
targeting large buying groups, which allows us to put
our products in front of thousands of buyers, and by
encouraging larger orders from existing customers.
Asia
Despite a difficult economic environment, Asia
remains one of the world’s largest retail markets,
with consumers there continuing to covet American
brands. Our established subsidiaries in Japan and
Korea position us to expand our business in these
regions as the Asian economies resume their growth.
The Company established subsidiary offices in Seoul,
Korea and Tokyo, Japan in 1996. Immediate
infrastructure and marketing investments were made
to strengthen the brand presence in these retail
markets. In Japan, we’ve achieved significant
penetration with key retailers across the country, and
have established a solid brand image through our
flagship store in Nagoya and concept shops within
prestigious department stores like Marui and Seibu.
With Korean consumer confidence and spending on
the rise, Columbia is setting its sights outside of
Seoul, where the Company’s brand image has been
elevated to the point that potential franchisees and
department stores have begun approaching us to do
business.
“This will help you grow big and strong.”
– Mother Gert Boyle e
Columbia Sportswear outlines growth strategies for 2000 and beyond.
Leverage brand in markets OUTSIDE THE USA
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Leverage brand in
markets outside the USA