My top 5 Active Outdoor Companies based on branding

This list is based on the overall branding job that the companies have done.  This includes the overall look, the message, the essence, the strength of the brand and the creativity of the brand.  These are in desending order:

5- Patagonia.  Many would argue that this should be higher because it is well known among the faithful.  In a purely outdoors sense, yes it should, but for overall brand strength it lacks a little because of the weakness in the flash (then again, that's what make it what it is).  (BTW, I love Patagonia stuff, this is purely based off of the branding.)

4- Merrell.  I like Merrell.  I think they have great shoes and they've done a good job selling that.  It's incredible that they have done as much with so little.  They are a bit of a one trick pony but I like the organic feel and the appeal to everyone.

3- Mountain Hardware.  The brand is technical.  That is what they want to display.  You know that if the person is wearing the brand then that person understands the outdoors, otherwise they wouldn't be spending that much money on their equipment.  Clean and technical.  I like it for what it is.  They have done a good job of transmitting their message.

2- Columbia.  Mountain Hardware's mother company, Columbia has successfully become the provider to everyone on every level.  The company went from just ski parkas in the 90's to a complete outfitter.  The brand screams quality and value but still screams outdoors.  While not a top technical brand, they save that for MH, they still make great products but the overall branding and experience that Columbia gives you is top notch.  The brand appeals to everyone through imagery, price point, design, and function.  Well done.  (P.S. they make hunting apparel, big plus for me!)

1- The North Face.  They have been killing it for years.  I remember in high school in the 90's when someone had a TNF backpack, they were cool.  Interestingly enough TNF still remains an enigma on purpose.  At the base of the whole essence is a brand that doesn't care what anyone thinks because they basically created the role of an outdoors outfitter.  The simple logo has a ton of equity, the products are always quality and the imagery is solitude with accomplishment much like the brand itself.  As TNF continues to branch into new industries they keep the same essence and branding.  I really enjoy the brand and what has been done with it.  As of now they hold my top spot.

Cross over brands: North Face, Keen, Adidas, Montrail, Salomon

It's no secret that I am intrigued by what Under Armour has done with its branding and where it has branched out, but last night my wife and I went to a running store in Salt Lake City called Wasatch Running.  It is probably the leader in running along the Wasatch Front.  While in there I asked about a couple of brands and what they thought of them there.  I asked about the Five Fingers and they said it was a good brand but would never run on pavement with them.  I asked about Under Armour and the consensus was that their running shoes just hadn't been around long enough.  What intrigued me most were the cross over brands meaning the trail shoes, the outdoors and the running world colliding.

The North Face.  It's an interesting problem to have.  First of all you have to develop a shoe that has the technology to compete with traditional running shoes and second you have to deomonstrate a knowledge of the outdoors.  In the window of the store was a big North Face poster with a trail runner.  It had the typical TNF feel to it, a stoic picture with someone completing something dificult but it was all in the parameters of running.  TNF definitely has the outdoors thing down but the running acumen is still something that they are accomplishing.  By sponsoring athletes and setting up a trail running campaign TNF is hoping to gain some credibility in the market.  Columbia has tried and is still trying but succeeding to a lesser degree.  TNF is crossing over into the athletic world in their apparel also.  It offers technical shirts for quick wicking with images of people training and running suggesting that they know their stuff.  It'll be fun to see how far they go and if they eventually get all the way into road and distance running shoes.

Keen is a bit different.  They claim to be the Hybrid shoe.  They focus their brand more on the outdoors with trail running being a small part of it. Still they are found in the running store and do have a feel of a cross over brand. On a side not Keen also says it's a hybrid brand because it can be used for a water life/ relaxing life/ technical life... I kind of like it.

Montrail was made for trail running.  If they go into road shoes then they'll start to become a cross over brand.  One reason that Columbia hasn't pushed itself too far into the trail business is because it owns Montrail.  An interesting little brand that was consumed by a bigger brand but left independent.  I wish them luck.

Salomon is a crossover from somewhere else.  They make great trail shoes and can often be found on the feet of avid day hikers.  They've been in the biz for a while but they crossed over from the ski industry hoping that the same people that followed them religiously with their ski eqipment are the same people who trail run and love the outdoors (side note, The North Face is banking on that same type of thing too).  They have hit a homerun and their shoes division is one of their fastest growing divisions.  They have done a good job with the branding.  Keeping it separate from the skis but you know that it's Salomon with the logo. 

Adidas Outdoor Imagery

Adidas fighting itself again.

Adidas.  A conglomerate, a jack of all trades and quite frankly a late bloomer.  Adidas has been playing catch up to Nike for years now.  Nike launched its ACG brand in the early 90's and Adidas was still stuck on lifestyle shoes (though it has been a huge seller for them).  In the early 2000's Adidas got into trail running a bit and put out some good shoes but it never took.  They didn't have the brand for it.  Nike separated themselves with the ACG and allowed for a brand to be developed.  Adidas recently launched Adidas Outdoors.  It is run out of a compeltely different division.  For the US it is ran out of Europe and offers a complete line of technical clothing and footwear.  Adidas has always had running shoes but now the brand is crossing over into the true outdoors.  I thought it was a mistake to name it Adidas Outdoor.  I thought they should have separated it and kept a small part of the logo in it.  As is they now still have to overcome the Adidas stigma of being a lifestyle brand.  They make some great stuff as was seen at the Outdoor Retailer Show but they still have the problem of dealing with themselves.  A new logo and name would have done some good for them.  Still they are crossing over.

I could talk about Under Armour but you might get sick of it.  Nike has obviously done a good job crossing over into: golf, football, baseball, basketball, trail, outdoors, skateboard etc... anyway, the point is that some of these other brands are still crossing over.  We'll see how their branding takes them into new realms.

Outdoor Retailer Show: Big Winners and parting thoughts

Best Booth:  The North Face.  Partly because they have the money to spend and partly because they have a great brand.  The entire booth reminded me of a base camp on Everest.  The domed tent feel was fun and bright and screamed technical.  TNF always does a good job of keeping a modern but rugged feel to it.  TNF has been producing quality products for so long that it doesn’t have to be gimmicky and can stick to what it is.  The same feel is on the website.  Clean and technical.  They just do what they do and they really make you see it.  The booth had a mini theater in it and showed films of accents and descents, and put you in the mood to be at the base camp with all the storied climbers.  The booth had a great feel to it and visually was the most striking.

 

2^nd place: Columbia.  They did a really good job of opening it up this year.  There were two areas, one warm side and one cool side.  The warm side was to really introduce the Omni-Heat branding and they did a wonderful job.  The booth had a Columbia montage lighting above the warm side in red’s and oranges… really cool.  I talked to the lighting and audio coordinator and he said that Columbia didn’t want to mess around and wanted to make this feel great.  The warm side had a runway where models put on two shows a day and beers flowed freely.  The booth was a close second to TNF.  Columbia in general is a brand that wants to offer something for everyone while still making it quality.  Put it just below The North Face and above Eddie Bauer for outdoor quality appearance (I’m not saying performance).  The cool side continued to show images of families and the products to be used.  The lesser impressive of the two sides but still quite impressive all together.  Side note, Columbia owns Sorel which had the models last year, this year, Sorel right next to Columbia was scaled down quite a bit, small booth, less images but still a nice clean booth.  Mountain Hardware which is owned by Columbia was surrounding Columbia along with its other brand Montrail. 

3^rd place (and most fun):  Keen.  I’ve talked about them before but it had such a good feel to it, so I’m throwing props their way again.  Nice job folks.  The lounge, the trailer, the cabin.  Cool. 

Worth Mentioning: 

Ex-Oficio.  I see them around, I’ve looked at their products and honestly, I can’t put them in a category.  Adventurous Traveler is what they preach but it’s not technical nor is it cheap enough to just wear… oh well, I guess there is a niche for them somewhere.  Croakies:  Good for them, they’re still at it.  One big push for them is fishing.  They have a new sunglass leash that is designed for the fisherman that won’t get caught.  Under Armour  has moved heavily into that arena too.  Teva: at it again, trying to be cool.  The booth was a bit smaller and closed up and didn’t have the raucus party feel to it but the DJ was there spinning (I even got a CD from it).  I thought it was OK, I would have liked to have seen something better from them after last year.   

There seems to be shoe companies all over the place 5/10 is one of those… adventurous sports is what they claim.  We’ll see how they do.  Easton, the company divested its team sports side of things to Bell-Ridell and is now focusing on mountain products and hunting (mostly bow hunting).  The offerings are pretty limited, tents, snow shoes, and trekking poles.  The products are very high quality and the branding is getting there.  While speaking to people at the booth they feel that there is a ton of potential and getting it there will be the key.  The technology is really sound and the products have a “quality” feel to them.  It’ll be fun to see where this historic brand goes. 

Outdoor Retailer Show: Categories and Brand Impressions

Categories-  Some very distinct categories really stood out to me while I explored all the booths.  There were some interesting categories.   

The Earth category obviously but additional categories include:

Sleek and Technical Brands: Adidas Outdoors, Arc’Teryx, Baffin, Suunto, Wenger, Sierra Design, Helly Hansen, Columbia, The North Face,

Real surprises: Keen.  They had a great booth that was really representative to their brand.  It was a lounge, laid back and built for a “hybrid life”.  The booth reminded me of a cabin or lodge somewhere.  There was a trailer that was parked that had the products.  The rest of the booth was dedicated to the branding and really building the idea that Keen means lifestyle.  I enjoyed it.

Mountain Khakis:  The brand was true to its Wyoming roots.  It’s a cross of rough mountain men/ Carhartt and REI.  I appreciated the cowboy hats and the feel the booth gave me.  Funny thing, Arbor Wear which I see as the direct competitor was there too.  They had a two man saw that if you wanted to test your lumberjack skills.  A small booth, it still had a good feel to it.  Much like the MK booth.

Still not sure what they want out of their brands:  Kuhl.  I want to like it more, I should, it’s a local Utah thing but honestly, I can’t get into the brand.  The name throws me off, it should be a cooler or something.  They really tout their pants but when I look at them they look like stuff that Michael Jackson would wear.  The threads of the seams are bright white or visible, the rivets are big and shiny… they just don’t look like a low profile pant that you wear for functionality and not to be seen.  Also not sure about what they are pitching with the whole “Rebel’s yell” thing.  I was just confused with it.  Other brands that confused me.

Hot Chilly’s: First of all, I hadn’t heard of it, second of, all the booth was a beach shack/ bar that had very attractive models walking out and posing all day long.  Poor girls, I bet they were pooped.  I couldn’t stop thinking about Margaritaville, Jimmy Buffett’s branded restaurants.  I guess they had winter clothing…  the model was wearing it.  The biggest problem was just the consistency, beach brand or outdoor brand, you just can’t tell.

True to who they are:  Patagonia, Wenger, Vasque, Hi Tec, Merrell, The North Face, Mountain Hardware, Outdoor Research.  All of them pretty much took their websites and translated them to booths with more of a mountain feel to them.  Especially Hi-Tec, they are in the middle of a rebrand and looking to really expand a stogy brand.  They brought in the creative group Frank out of Portland, OR to revamp the brand.  Still they stuck to who they are.  I remember my first pair of Hi-Tec boots in 6^th grade.  I think I could still find them online if I really wanted to. 

Vasque looked the same as last year which isn’t a bad thing.  Patagonia is a tough one to crack.  They are everything but nothing… The outside of the booth looked goodish, they had a metal shack that represented the original place Patagonia started which was a cool touch.  They just didn’t overwhelm me with the brand and really make me want to buy anything with it.  But… truth be told, that’s the branding.  It’s not flashy, it’s about old school getting things done in the outdoors.  They aren’t bright and glitzy, instead they are a smooth brand known for quality and a true icon in the outdoors.  If you see someone wearing Patagonia that person gets it, knows about the outdoors and the industry.  That’s what the booth screamed to me.

Outdoor Research which I’ve mentioned before was who I said they were (Thanks Dennis Green).  Not flashy at all, just has good stuff.  Mont Bell a Canadian brand, exactly the same thing.  BTW, they are probably head on competitors.  Yesterday I say two of my friends at the dog park.  One had a Mont Bell 800 fill mid layer and the other had an 800 fill OR mid layer. Go figure.

Ski Companies are their own thing. K2, Rossignal, Dynastar, Bluehouse, Viice, Voekl etc... I'm going to have to blog about them later.  They attract skiers whereas Merrell attracts all people.  I'll leave it at that.  And because of that they are distinct in how they can brand and what they can do.  Impressive but underwhelming, and surprisingly pretty empty... again, target markets.

Why outdoor goods companies can avoid big media spends.

I was in REI last night and it is always astounding to me, the types of crowds that come in that store. They fit in a nice little box and all have similar traits. They do come in all shapes and sizes, but at the core they are all the same; Love the outdoors, a little crunchy, and willing to spend money on products they think will enhance their outdoor experience/image.

The products you see on the shelves in REI are very well known brands. The North Face, Mountain Hardware, Arc Teryx, and others. But the interesting part to all of this is that they never seem to advertise with big media spends. You won't see a North Face commercial during a Super Bowl, you won't see a spot for Mountain Hardware even on the Outdoor Channel (that often). The reason for this is the fact that they know their audience and know how to reach them. The channels that touch these types of people are much different than a typical Nike, Coors, or GM channel.

The channels that do touch these people all involve the outdoors. It can be through an outdoor retailer, outdoor expo, outdoor event like a race, a climb, or an expedition. Specific videos, messages and placement of ads are the most effective way. Spokespeople are very important in this industry. If someone has used the Eddie Bauer First Ascent line and raved about it during an Everest Summit or the new Mountain Hardware softshell is phenomenal on the slopes during the spring, then the product has a following. This is sometimes caused by the the spokespeople.

These people (the spokespeople) are different than Lebron James or Peyton Manning, they are cult heroes in the world of outdoors. They are everyday people that aren't 6'8" and 260 lbs with some of the most incredible athleticism to grace the earth. They are people who have guts, the ability to stick to it, train, and are visionaries. All outdoors people alike deep down feel that they could be that person if they really wanted to. The spokespeople are the silent celebrities in the world. They are the ones pushing products through actions. What they wear the people want.

Spokespeople are just one channel. The function of the product is important too. It's all about how the product is going to make your turns better, your summit greater, or your day longer. This is communicated through a target message, a quick story, a website and word of mouth. Online retailers are big advocates for many of these companies. Backcountry.com is a huge North Face retailer and through their emails and online messaging it's seen. But if you weren't an outdoors person, you would never know about Backcountry.com, you wouldn't see any kind of advertising for The North Face. Sure you'd see some ads in Outside Magazine or Ski Magazine but even that is a targeted audience and all of those people know Backcountry.com

Advertising costs are low for the outdoors companies. They usually let their quality and brands speak for themselves. They leave it to the retailers to do the majority of the advertising. It's such a different model than a traditional consumer packaged good. Think of the Disney Channel advertising Nerf dart guns or a cereal for kids, those manufacturers are paying incredible amounts of money to get their products out there. They are making the kids aware of the product that is in turn purchased from WalMart or Target. The opposite is the case with REI, Dick's Sporting Goods and others. They advertise for the companies. The quality brands bring credibility to the store.

In the end it's an interesting business model. Start up brands have to spend, but the big boys don't. You would think they are printing cash, and probably are but there are a few things to be considered. First the reasons why they are not printing cash then why they are.

Why not:
1- Big overhead with R&D, Spokes people, quality products cost more to manufacturer.
2- The market is very finite, for Arc'teryx the amount of people who want to spend that kind of money on a product is probably very small.
3- Unless you have used the products you probably don't know that there is a difference in quality... many people right now are very price conscious and shop at WalMart for everything.

Why they print money:
1- Low advertising and marketing costs (typically this is anywhere from 4-10% of budgets for companies) This means that they have an automatic 10% going right to the bottom line.
2- The finite group spends money (recent study shows that outdoors people spend $400-$1,000 a year on outdoor goods).
3- The margins are still pretty darn good especially on soft goods. Usually around 60%.

All of that being said it seems to be working for them. They don't need to spend on advertising and are still turning large profits. Conglomerates like the VF company own brands. The North Face is owned by the VF company because it turns profits. The model is working, by not advertising with big spends and target their market they can keep their costs low and meet the audience head on.



 Here is a little post script to follow up.  I was watching TV and saw a commercial for The North Face during prime time.  I was taken back for a second thinking I'd completely blown this post, but then it took on the feel of a different type of commercial.  Ultimately it was a Dick's Sporting Goods commercial saying they feature The North Face products.  This is very common, and companies like TNF are more than happy to let them advertise their products for free.  As long as the outdoor companies continue to make quality products the Dick's, Sports Authority, and others will continue to advertise for free!