Footwear Insight

Fila, Fast and Furious By Bob McGee B oth Fila's group ownership structure and wholesale distribution strategy are equally complex. But the 108-year-old brand's mission to be a nimble, fashion-forward player on the global sportswear scene is clear. "This company is willing to adapt quickly to changing trends and our infrastructure offers us the ability to do so," says Louis Colon, VP–Heritage & Trend at Fila North America. "We are unique in that via our sourcing we are able to create customized products and stories. This approach allows us to build a consistent cadence of storytelling that keeps Fila top-of-mind for the customer. It's about reaching a new audience, making an impact, telling a good story and building an after-effect." That adeptness explains why the Fila brand has been able to sell premium products through the likes of Urban Outfitters and Barneys, open Fila Mindblower pop-up shops with the brand's latest and greatest and also deliver price-point, volume wear to the more price-conscious who shop Kohl's. The Mindblower pop-up shops, which since April have "popped" up in New York City, Seoul and Tokyo, play off the brand's Heritage offerings with a re-launch the 1995-era Mindblower silhouette. The experiential shops feature the Mindblower and Mindbreaker 2.0 collaborations. "We do develop product at various price points," offers Colon. "But where we differ from other companies is that we don't dictate to a brand partner what they can buy (from us). With strong relationships with our retail partners, we can be transparent about the different product offerings and have a discussion about what makes sense for the particular retailer." In addition to working on growing its men's, women's and kids' businesses in the U.S., Fila is launching a Home collection. It should be noted that any new category from the brand "has to be approached with a lifestyle lens" to be considered. The company utilizes a "cross-departmental collaboration," tapping staff from design, development, sales, marketing and production when developing new products for a customer. "This inclusiveness allows any issues to be addressed early in the process and different perspectives to be heard," says Colon. "Most importantly, this method allows us to be fast-to- market and react to trends." Nothing about the brand's Italian heritage and penchant for fashion- forward sportswear from head-to-toe is lost in translation by the company's principal owner and former regional distributor. Fila Korea acquired the Fila trademark and global assets for $400 million in a leveraged buyout in 2007. Three years later, the brand parent filed an IPO in its home market. In 2011, Fila Korea teamed with a consortium led by Mirae Asset Global Investments in a $1.2 billion leveraged buyout of Acushnet Holdings Corp. In 2016, Fila Korea became the controlling shareholder in the parent of Titleist and FootJoy. But the Fila brand, which generated consolidated revenues of nearly $2.37 billion in 2017, remains a primary focus of Fila Korea, which operated 598 multi-category Fila brand stores at the end of 2017; was a 15 percent partner in an Asia region-focused joint venture with ANTA Sports and oversaw 37 worldwide brand licensees, including seven in North America. Fila USA's consolidated revenues were nearly $305 million in 2017. Asked about the biggest trade misconception about the brand today, Colon says it's rooted in a belief that Fila's connection to sports is limited to tennis and basketball in the 1990s. "Our influence in sportstyle extends to running, baseball, boxing, outdoor, sailing, skiing, swim, motor sports and beyond," Colon points out. "We have the ability to tap into the experiences, and our goal is telling those stories. Fila is a brand that started in sportswear, but we have become a fashion brand with a sports DNA." O On a Mission to Succeed with its Nimble Strategy. CLASSIC BRANDS MODERN PATH footwearinsight.com FILA FAST FACTS Began in 1911 in Biella, Italy largely as underwear, knitwear producer. Firmly established its sportswear identity in 1973 with its "White Line" collection. First tennis endorser, Bjorn Borg, captured 11 titles in his career. NBA's Grant Hill, skier Alberto Tomba and tennis stars Boris Becker and Monica Seles have worn and endorsed brand. Fila Korea, which owns worldwide rights for brand in footwear and apparel, acquired company in 2007. Consolidated Fila USA sales topped $282 million in FY17. Apparel and footwear from the Fila Heritage Mindblower line. PROFILE

• Cover