Columbia Sportswear 2001 Annual Report Download - page 9

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 of both fall and spring seasonal outdoor
footwear for adults and youth as well as cold weather, hiking/trail and rugged comfort styles. Many feature
innovative technical designs that incorporate waterproof/breathable constructions, thermal insulation, ad-
vanced cushioning systems and high abrasion, slip-resistant outsoles. Rugged footwear as a percentage of our
consolidated net sales has increased from approximately 2.9% in 1994 to approximately 13.9% in 2001. 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 oÅered
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 announced a strategy to build brand awareness by licensing our trademarks across a
range of categories that complement our current oÅerings. We have since signed eleven licensing agreements,
including North American agreements for Columbia brand casual and outdoor socks, packs and adventure
travel bags, small personal leather goods and accessories, thermal tops and bottoms, shoe care products,
watches and sports knives. We also entered into a global agreement for Columbia brand eyewear and a
European license for socks. Our United States sock licensee began shipping during fall 2000 in the North
American market with the European sock license starting shipments in spring 2002. The packs and adventure
travel bags and small personal leather goods were available beginning in spring 2001, while the watches are
scheduled to start shipping in spring 2002 and the thermal tops and bottoms and shoe care products are
scheduled to begin shipping in fall 2002. Our eyewear and knives licensees are scheduled to begin shipping in
spring 2003. In addition, in 2002 we are testing the market for tents and sleeping bags through a limited
license involving one retail chain. 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 increase 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
3