Columbia Sportswear 2000 Annual Report Download - page 15

Sportswear products are designed to be sold alongside our outerwear and rugged footwear products as part
of our uniÑed ""head-to-toe'' outÑtting concept. Although the majority of our sportswear sales are to sporting
goods and specialty outdoor stores, department stores are becoming an increasingly important part of the
distribution chain.
Rugged Footwear
We introduced rugged footwear in 1993. This category consists primarily of active all-weather,
performance outdoor footwear, rugged comfort and youth, featuring innovative technical designs that
incorporate waterproof/breathable constructions, thermal insulation, advanced cushioning systems and high
abrasion, slip-resistant outsoles. Rugged footwear as a percentage of our consolidated net sales has increased
from 2.9% in 1994 to 11.2% in 2000. We believe the market for rugged footwear represents a substantial
growth opportunity.
Our acquisition of the Sorel» trademark rights, associated brand names and other related intellectual
property rights in September 2000 opens up potential opportunities for us in the footwear category. The prior
owner of the Sorel brand, William H. Kaufman, Inc., Ñled for bankruptcy in 2000 allowing us the chance to
acquire and rejuvenate an existing brand known for cold weather footwear for over forty years. We will be
oÅering classic Sorel styles for fall 2001 as well as a line of special make products for some larger retailers.
Sorel styles are being oÅered to current Columbia customers as well as to dealers who do not presently sell the
Columbia footwear line.
Accessories
We also produce a line of accessories that includes hats, caps, scarves, gloves, mittens and headbands to
complement our outerwear and sportswear lines.
Licensing
In June of 1999 we developed a strategy to license our trademarks across a range of categories that
complement our current oÅerings and build brand awareness. Since that time we have signed Ñve licensing
agreements that will introduce Columbia brand casual and outdoor socks, packs and adventure travel bags,
small personal leather goods and thermal tops, bottoms and accessories to North American markets and
outdoor performance socks to the Eastern European, Western European and Russian markets. Our United
States sock licensee began shipping during fall 2000 in the North American market, and the packs and
adventure travel bags and small personal leather goods are available in spring 2001, while the thermal tops,
bottoms and accessories will start shipping in spring 2002. In addition, in connection with the Sorel
acquisition, we acquired a number of Sorel brand licensing agreements, including a license for shoe care
products in North America and for outerwear, bags and other products in Japan.
Advertising, Marketing, and Promotion
Our creative and award-winning print and broadcast advertising campaigns have built brand awareness
and have helped to highlight the strengths of our product line among consumers. The humorous advertise-
ments feature Chairman Gertrude Boyle as an overbearing taskmaster Ì "one tough mother' Ì who demands
high quality standards for our products. The advertisements, which often include witty dialogue between
""Mother Boyle'' and her son Tim, Columbia's President and Chief Executive OÇcer, remind consumers of
our long history of providing authentic outdoor apparel with exceptional value and help to create the image of
a distinctly American brand.
One of our growth strategies is to improve the productivity of our existing customers by expanding the
number of concept shops, focus areas and brand enhancement systems at customer retail locations. Concept
shops and focus areas, which promote a consistent brand image, are located within the stores of our customers
and are dedicated exclusively to selling our merchandise on a year-round basis. On a smaller scale, brand
enhancement systems which include signage and Ñxtures that prominently display consolidated groupings of
Columbia merchandise oÅer similar beneÑts.
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