Columbia Sportswear 2004 Annual Report Download - page 10

ultimate test subject, is an integral part of Columbia’s brand identity. Our campaign features our wry-humored,
good-natured ads in broad-based national print and broadcast media, ranging from Backpacker and People
magazine to Comedy Central and ESPN television channels. We reach customers worldwide in our efforts to
drive sales of our products.
Sales through existing retail channels are enhanced by visual merchandising. Concept shops and focus areas
located within our customers’ stores are dedicated exclusively to selling our merchandise on a year-round basis.
These shops and focus areas promote a consistent brand image and feature the image of Gertrude Boyle
throughout our customer network.
We also engage in cooperative advertising arrangements in which wholesale customers receive an
advertising allowance related to the value of their purchases from us if specified criteria are met.
Inventory Management
From the time of initial order through production, distribution and delivery, we manage our inventory in an
effort to reduce risk. Our inventory management systems, coupled with our enterprise-wide information system
have enhanced our ability to manage our inventories by providing detailed inventory status from the time of
initial factory order through shipment to our retail customers.
Additionally, through the use of incentive discounts we encourage early purchases by our customers to
promote effective inventory management. We provide our customers with staggered delivery times through the
spring and fall seasons. This permits our customers and us to manage inventories effectively and thereby
diminish the likelihood of closeout sales. Through our efforts to match our purchases of inventory to the receipt
of customer orders, we believe we are able to reduce the risk of overcommitting to inventory purchases. This
helps us avoid significant unplanned inventory build-ups and minimizes working capital requirements. This
strategy, however, does not eliminate inventory risk entirely since we build a nominal amount of speculative
inventory into our business model. Moreover, customer orders are subject to cancellation prior to shipment.
Product Design
Our experienced in-house merchandising and design teams work closely with internal sales and production
teams as well as with retailers, athletes and consumers to produce products that are designed primarily for
functionality and durability.
We also engineer technical garments with special performance features. Our Titanium®™ sub-branded
outerwear offers high performance fabrics and features and our most advanced technologies. These garments are
designed for extreme weather conditions and also deliver a level of style and utility that compete with high-end
garments in our market. Our outerwear features include the Columbia Interchange System®, the Radial Venting
System™, the Radial Sleeve™, stretch panels, the performance storm hood, and packable and reversible options.
The GRT®line offers the Radial Leg Gusset™, GRT Venting™, the Convertible Sleeve Tab, and convertible and
packable garments. Our footwear features include Quadensity®technology and our hunting and fishing garments
include features such as the Columbia Comfort System™, the PFG Venting System™, and our Quarpel Thread
Technology™.
We distinguish ourselves by designing clothing that performs well in a wide range of weather conditions
and for a variety of outdoor activities. We carefully choose the appropriate fabric or insulation for each garment.
Our fabrics feature optimum performance characteristics such as water resistance, breathability, weight,
durability, and wicking ability. For our outerwear collections we feature our premier waterproof/breathable
Omni-Tech®technology. Three different levels are offered to meet different needs of water resistance,
breathability, and protection. Our GRT line features Omni-Dry®, which is our high-performance moisture-
management technology that renders superior results in a variety of conditions. Our footwear line features Omni-
Grip®traction technology, which is a specially formulated sticky rubber compound that provides superior
traction as well as stability on wet and dry surfaces.
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