Columbia Sportswear 2002 Annual Report Download - page 14

ability to test new marketing and merchandising techniques. We also operate nine outlet stores in various
locations throughout North America. These outlet stores are designed to sell excess and distressed inventory
without adversely affecting our retail accounts.
We inspect, sort, pack and ship substantially all of our products sold to United States retailers from our
Rivergate Distribution Center, consisting of approximately 850,000 square feet located in Portland, Oregon. This
distribution center includes a newly constructed 203,000 square foot addition to the existing automated
distribution center which was completed in 2001 and was fully integrated into the existing distribution center in
2002. We handle Canadian distribution from a leased warehouse in Strathroy, Ontario. In some instances, we
arrange to have products shipped directly from the independent manufacturers to a customer-designated facility.
Europe
We have European sales offices in France, Germany, and the United Kingdom, with our European
headquarters office located in Zurich, Switzerland. We sell our products directly to approximately 4,300 retailers
in Western European countries, including the United Kingdom, where we began direct sales in spring 2001.
Successful marketing and sales efforts, particularly in France, Spain, Italy and Germany, resulted in net direct
sales of our products in Europe of $95.9 million in 2002.
We distribute our apparel and footwear products in Europe through two different distribution centers, one in
The Netherlands which is owned and operated by an independent logistics company, and the other in Cambrai,
France, which we own and operate. The new facility in Cambrai, France consists of approximately 269,000
square feet and was placed in service in January 2003 for the spring apparel shipping season. The distribution
facility in The Netherlands will be used for the spring 2003 footwear shipping season and will cease operations
and be replaced by the Cambrai, France facility upon commencement of the fall 2003 footwear shipping season.
Other International
We have distributed our products through independent distributors in Japan since the mid-1970s. In the fall
of 1998, we began distributing our products directly in Japan, predominantly through retailers. We now sell our
products primarily through a combination of retailers and wholesalers. We believe our sales approach in Japan
creates an opportunity for accelerated sales growth in this region when economic conditions improve. We
distribute our products in Japan from a leased warehouse in Funibashi, near Tokyo. In 1997 we began selling our
products directly in South Korea, principally through retailers. Korean distribution is conducted from a
warehouse in Seoul, which we own and operate.
In several other countries throughout the world, we sell our products to independent distributors. These
distributors service retail customers in locations such as Australia, New Zealand, South America, Europe, Russia
and China, among others.
Intellectual Property
We own many trademarks including “Columbia®,” “Columbia Sportswear Company®,” “Convert®,”
“Sorel®,” “Bugaboo®,” “Bugabootoo®,” “Omni-Tech®,” “GRT®,” “Omni-Grip®,” “Columbia Interchange
System®,” “Tough Mother®,” the Columbia diamond shaped logo and the Sorel polar bear. Our trademarks,
many of which are registered or subject to pending applications in the United States and other nations, are used
on a variety of items of apparel, footwear, and other products. We believe that our trademarks are valuable,
providing the consumer with an assurance that the product being purchased is of high quality and provides a
good value. We also place significant value on product designs (the overall appearance and image of our
products) which, as much as trademarks, distinguish our products in the marketplace. In addition, in connection
with the acquisition of the Sorel trademarks we acquired industrial designs and patents protecting some Sorel
styles. We protect these proprietary rights and frequently take action to prevent counterfeit reproductions or other
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