Columbia Sportswear 2014 Annual Report Download - page 10

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Guangzhou, China, and from leased facilities in Shanghai and Beijing, China that are operated by our joint venture partner,
Swire.
EMEA
Sales in our EMEA region accounted for 12.3% of our net sales for 2014. We sell our products in the EMEA region
to approximately 4,000 wholesale customers and to 10 independent distributors that sell to approximately 800 wholesale
customers in locations throughout the EMEA region, including Russia, portions of Europe, the Middle East and Africa. In
addition, as of December 31, 2014, we operated 5 outlet retail stores and 1 branded retail store in various locations in Western
Europe. We also sell Columbia and Sorel products through brand-specific 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 contract manufacturers from which we source our products.
Canada
Sales in Canada accounted for 7.2% of our net sales for 2014. We sell our products in Canada to approximately 1,000
wholesale customers. In addition, as of December 31, 2014, we operated 3 outlet retail stores in Canada. We also sell
Columbia and Sorel products through brand-specific e-commerce websites in Canada.
We distribute the majority of our products sold in Canada from a distribution center that we own in London, Ontario.
Marketing
Our portfolio of brands enables us to target a wide range of consumers across the globe with differentiated products.
Marketing supports and enhances our competitive position in the marketplace, drives global alignment through seasonal
initiatives, builds brand equity, raises global brand relevance and awareness, infuses our brands with excitement and, most
importantly, stimulates consumer demand for our products worldwide. During 2014, the cost of our marketing programs
represented approximately 5.2% of net sales.
Our integrated marketing efforts deliver consistent messages about the performance benefits, features, and styling of
our products within each of our brands. Our target audiences vary by brand and we utilize a variety of means to deliver
our marketing messages, including online advertising and social media; television and print publications; experiential events;
branded retail stores in selected high-profile locations; enhanced product displays in partnership with various wholesale
customers and distributors; and consumer focused public relations efforts.
We work closely with our key wholesale customers to reinforce our brand messages through cooperative online,
television, radio and print advertising campaigns, as well as in stores using branded visual merchandising display tools. We
also employ teams that visit our customers’ retail locations in major cities around the world to facilitate favorable in-store
presentation of our products.
We operate branded e-commerce websites and marketing websites in North America, Europe, Japan, Korea, and China
and maintain a presence on a variety of global social media platforms to connect with consumers. In addition, we authorize
many of our wholesale customers and independent distributors to operate e-commerce and/or marketing websites and to
maintain a presence on social media platforms that help to reinforce our brand messages. Through digital media, consumers
are able to interact with content created to inform and entertain them about our brands and products, to be directed to nearby
retailers or to directly purchase our products. Use of digital marketing and social media has become increasingly important
within each of our brands’ global efforts to build strong emotional connections with consumers through consistent, brand-
enhancing content.
Working Capital Utilization
We design, develop, market and distribute our products, but do not own or operate manufacturing facilities. As a
result, most of our capital is invested in short-term working capital assets, including cash and cash equivalents, short-term