Columbia Sportswear 2011 Annual Report Download - page 9

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Product Design and Innovation
We are committed to designing innovative and functional products for consumers who participate in a wide
range of outdoor activities, enabling them to enjoy those activities longer and in greater comfort by keeping them
warm or cool, dry and protected. We also place significant value on product design and fit (the overall
appearance and image of our products) that, along with technical performance features, distinguish our products
in the marketplace.
Our research and development efforts are led by an internal team of specialists who work closely with
independent suppliers to develop innovative technologies and products that provide the unique performance
benefits needed by consumers during outdoor activities. We have established working relationships with
specialists in the fields of chemistry, biochemistry, engineering, industrial design, materials research, graphic
design, electronics and related fields. We utilize these relationships, along with consumer feedback, to develop
and test innovative performance products, processes, packaging and displays. We believe that these efforts,
coupled with our technical innovation efforts, represent key factors in the past and future success of our products.
In September 2010, we acquired the intellectual property and other assets comprising the OutDry®brand
and related business including patented and patent-pending construction methods that bond a waterproof,
breathable membrane directly to the inside of the outermost layer of a shoe or glove. We have incorporated the
OutDry technology in select Columbia, Mountain Hardwear and Montrail products, and also license the
technology to other footwear and glove brands within and beyond the outdoor industry.
Intellectual Property
We own many trademarks, including Columbia Sportswear Company®, Columbia®, Sorel®, Mountain Hard
Wear®, Montrail®, OutDry®, Pacific Trail®, the Columbia diamond shaped logo, the Mountain Hardwear nut
logo and the Sorel polar bear logo, as well as many other trademarks relating to our brands, products, styles and
technologies. We believe that our trademarks are an important factor in creating a market for our products, in
identifying our Company, and in differentiating our products from competitors’ products. We have design,
process and utility patents as well as pending patent applications in the United States and other nations. We file
applications for United States and foreign patents for inventions, designs and improvements that we believe have
commercial value; however, these patents may or may not ultimately be issued or used in our business. We
believe our success primarily depends on our ability to continue offering innovative solutions to consumer needs
through design, research, development and production advancements rather than our ability to secure patents.
The technologies, processes and designs described in our patents are incorporated into many of our most
important products and expire at various times. We vigorously protect these proprietary rights against counterfeit
reproductions and other infringing activities. Additionally, we license our Columbia trademarks across a range of
apparel, footwear, accessories and equipment.
Sales and Distribution
We sell our products through a mix of wholesale distribution channels, our own direct-to-consumer
channels, independent distributors and licensees. The majority of our sales are generated through wholesale
channels which include small, independently operated specialty outdoor and sporting goods stores, regional,
national and international sporting goods chains, and large regional, national and international department store
chains. We sell our products to independent distributors in various countries where we generally do not have
direct sales operations.
We sell our products directly to consumers through our own network of branded and outlet retail stores and
online in each of our geographic segments. Our direct-to-consumer operations are designed to elevate consumer
perception of our brands, manage inventory, increase consumer and retailer awareness of and demand for our
products, model compelling retail environments for our products and build stronger emotional brand connections
with consumers over time. Our branded retail stores allow us to showcase a broad selection of products and to
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