Columbia Sportswear 2012 Annual Report Download - page 9

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factories that manufacture our products through third party logistics vendors and/or directly to wholesale customer-
designated facilities in the United States.
LAAP
The LAAP region accounted for 22.6% of our net sales for 2012. We sell our products in the LAAP region to
approximately 300 wholesale customers in Japan and Korea and to approximately 14 independent distributors that sell to
approximately 700 wholesale customers in locations throughout the LAAP region, including Australia, New Zealand, Latin
America and Asia. In addition, as of December 31, 2012, there were 124 and 258 dealer-operated, branded, outlet and shop-
in-shop locations in Japan and Korea, respectively. We also sell Columbia, Mountain Hardwear, Sorel and Montrail products
through e-commerce websites in Japan and Korea. In addition, we earn licensing income in our LAAP region based on our
distributors’ production and sale of licensed products.
We distribute our products to wholesale customers, our own retail stores and licensed stores in Japan through an
independent logistics company that owns and operates a warehouse located near Tokyo, Japan. We distribute our products
to wholesale customers, our own retail stores and licensed stores in Korea from leased warehouse facilities near Seoul,
Korea. The majority of sales to our LAAP distributors are shipped directly from the independent factories that manufacture
our products.
In August 2012 we entered into an agreement with Swire Resources Limited ("Swire"), our current independent
distributor for the China market, to establish a joint venture for purposes of continuing the development of our business in
China. The joint venture, in which we will hold a 60% interest, is expected to begin operations in January 2014 upon
satisfaction of specified conditions, including receipt of certain governmental approvals from China.
EMEA
Sales in our EMEA region accounted for 13.8% of our net sales for 2012. We sell our products in the EMEA region
to approximately 5,700 wholesale customers and to approximately 12 independent distributors that sell to approximately
700 wholesale customers in locations throughout the EMEA region, including Russia, portions of Europe, the Middle East
and Africa. In addition, as of December 31, 2012, we operated 7 outlet retail stores and 3 branded retail stores in various
locations in Western Europe. We also sell Columbia and Sorel products through e-commerce websites in Austria, Belgium,
Finland, France, Germany, Ireland, Italy, Netherlands, Spain and the United Kingdom.
We distribute the majority of our products sold to EMEA wholesale customers and our own retail stores from a
distribution center that we own and operate in Cambrai, France. The majority of sales to our EMEA distributors are shipped
directly from the independent factories that manufacture our products.
Canada
Sales in Canada accounted for 6.9% of our net sales for 2012. We sell our products in Canada to approximately 1,000
wholesale customers. In addition, as of December 31, 2012, we operated one outlet retail store in Canada. We also sell
Columbia and Sorel products through e-commerce websites in Canada.
We distribute the majority of our products sold in Canada through two distribution centers. One is leased in Strathroy,
Ontario, and the other is owned in London, Ontario. We plan to consolidate our Canadian distribution functions at our
London facility in 2013. In some instances, we arrange to have products shipped directly from the independent factories
that manufacture our products to customer-designated facilities in Canada.
Marketing
We believe our brand names and trademarks provide a competitive advantage and help to differentiate our products
in the marketplace. Marketing supports our position in the marketplace, helps drive alignment through established seasonal
initiatives, builds brand equity, raises global brand relevance and awareness, infuses our brands with excitement and
stimulates consumer demand for our products worldwide. During 2012, the cost of our marketing programs represented
approximately 4.6% of net sales.