Outdoor Insight

N E W S / A N A L Y S I S OUTDOOR EYE L ast year New Zealand-based Kathmandu made news when it acquired Montana-based footwear brand Oboz for $60 million. And at this past November's Outdoor Retailer show, the company shared its plans to launch the Kathmandu brand in the U.S. market in 2019. In mid-January, Amy Beck was hired as president of Oboz/Kathmandu North America. Beck has held exec roles at Smartwool and Lucy Activewear. She is scheduled to begin her new role with Oboz/Kathmandu in April. Though a household name in New Zealand, not every- one in the U.S. knows Kathmandu. The brand hopes that's about to change. Founded in New Zealand in 1987, Kathmandu has 169 of its own retail locations in New Zealand, Australia and the UK. The company's 2018 sales revenues exceeded $340 million. "As a culture Kiwis and Aussies inherently are long-distance travelers," Bill Chandler, VP–sales and marketing, Kathmandu North America, tells Outdoor Insight. "They travel farther more often than just about any other culture on the globe. At age 18 as a right-of-passage, they purchase their Kathmandu bag and begin a gap year to travel the world." Sustainability has always been a key ele- ment of Kathmandu's DNA, says Chandler. Kathmandu received an "A" rating for the third year in a row by the Ethical Fashion Report, he notes. The Oboz Connection Oboz and Kathmandu have been partners since Oboz' inception. Kathmandu was Oboz' second customer when John Connelly launched the Oboz brand in 2007 and the companies have worked closely ever since. Kathmandu has been the exclusive Oboz retailer in Australia and New Zealand. Of the acquisition, Chandler says, "For Oboz, Kathmandu provides the backing which will enable Oboz to move towards their next step. For Kathmandu, Oboz is an opportunity to accelerate international growth, while providing a foothold for the North American whole- sale launch of Kathmandu." Regarding the company's plan to grow the Kathmandu brand in the U.S. market, Chandler says Kathmandu will sell wholesale through outdoor specialty and does not plan to open any of its own branded physical brick-and-mortar stores in the U.S. "We plan most of our revenue to come from the specialty outdoor channel through the indepen- dent rep model." He notes that Kathmandu is also in the process of closing its one remaining brick and mortar loca- tion in the UK, with an eye on building towards a wholesale structure for all of Western Europe, as well. Product Line-Up Kathmandu's U.S. offerings will include a tight collection of apparel to include technical and casual outerwear, insu- lation, mid-layer in tops and bottoms, as well as a smaller collection of travel packs and bags and accessories. "Most products range back to be travel-centric with fabrics and designs driving the conversations," says Chandler. "As we roll into Spring 2020, the travel collection will be expanded even further to include RFID protection engineered perma- nently into apparel, which is a first of its kind." Kathmandu plans to get its brand name out to U.S. consumers with online and print advertising and a PR campaign to promote the launch. "And we'll work directly with our key retail partners building strategic marketing campaigns driving a strong association of Kathmandu to the specialty outdoor retailers," says Chandler. In North America, differentiation will be key for Kathmandu. "We arrive to the outdoor and travel market from a very different perspective than our competitors," says Chandler. "Kathmandu is not just a travel brand or an outdoor brand, we are a brand that is the culmination of experiences. Our products aren't just suited for a hike or wearing around town but doing so in remote and exotic locations. Our clothing and equipment incorporate distinct and functional design elements. Pockets specifically engi- neered to hide your pass port and other valuables, or RFID blocking technology permanently embedded into fabric all while using responsible down and recycled yarns. We speak not only to the passionate traveler, but also to envi- ronmentally minded individuals and anyone who generally appreciates well-thought-out gear." Chandler says the specialty outdoor retail channel will be the focus and that Kathmandu will "not compete for [retailers'] dollars by breaking our own MAP policy." He adds, "Our primary mission is to strengthen the relation- ship with these partners and be the supplier who delivers over-the-top support in their everyday world. The end goal is pretty simple: We want Kathmandu to become the most desirable brand in their stores, which leads to a deeper and trusting relationship over time." — Cara Griffin Coming to America Kathmandu Sets its Sights on the U.S. Specialty Market. 8 • Outdoor Insight • January 2019 outdoorinsightmag.com Kathmandu Stockton Rain Jacket, MSRP $240. Tech details: Bio-based waterproof breathable membrane, 100 percent Repreve fabrics, Bluesign approved, 100 percent recycled polyester fill.

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