Home Back Issues February 2013 Tim Boyle charts the future as Columbia Sportswear turns 75

Tim Boyle charts the future as Columbia Sportswear turns 75

| Print |  Email
Articles - February 2013
Monday, January 28, 2013
Article Index
Tim Boyle charts the future as Columbia Sportswear turns 75
Page 2
Page 3
Page 4
Page 5
Page 6

"We’ve been very conservative, some say too conservative.” It’s a rainy Tuesday morning and Boyle is in a conference room in the company’s Washington County headquarters, explaining what might be Columbia’s central duality: its tendency to proceed cautiously on the finance end while taking more risks on the product-development side. The path forward, he suggests, is about recalibrating that balance.

A multibrand company, Columbia has acquired several apparel and footwear companies over the past 15 years: Mountain Hardwear, Sorel and Montrail. But unlike competitors such as the VF Corporation, Columbia doesn’t seek to grow through acquisition, Boyle says. Instead, the focus has been on strengthening existing brands through innovation. In particular, Columbia develops proprietary technologies, then makes those innovations apparent to the consumer through creative product design.

The company’s Omni-Heat thermal reflective technology, thousands of metallic dots that reflect the wearer’s own body heat, is a case in point. The technology is visible as a kind of space-age silver jacket lining and thus is a constant reminder of the Columbia presence. “It’s very difficult to distinguish among apparel brands,” says Boyle. “We have determined the greatest impact occurs when consumers can see the differentiators.”

But lately, Boyle admits, Columbia consumers may be getting a little blurry eyed. It’s a problem with a history that dates back to 2008, when Columbia executives, concerned the company was losing its edge, began rebranding it as a company of innovation. Under the leadership of Nike alum Michael McCormick, then Columbia’s executive vice president for global sales, the team created a new product innovation lab and started churning out the kind of flashy technologies Boyle was describing: Omni-Heat Reflective, Omni-Wind Block, Omni-Dry Ultrabreathable Waterproof and so on.

Before the rebranding, Columbia was considered reliable but slightly frumpy midmarket outdoor wear. Post rebranding, the company elevated fashion alongside high-tech functionality, and prices rose correspondingly, with an Omni-Heat electric jacket commanding up to $1,200.

The new-and-improved Columbia has racked up accolades from the outdoor industry; in 2011 Outside magazine awarded the company a Gear of the Year award. But some financial analysts have been more skeptical, arguing that the brand suffers from a kind of identity crisis: no longer midrange but yet to prove its mettle against established premium labels such as market leader The North Face.

“The question is what it really takes for Columbia to be an aspirational brand so that people want it and desire it — and not just in the United States and Canada,” says Chris Svezia, an analyst with Susquehanna Financial Group. Columbia has come up with innovative ideas in the past couple of years, Svezia acknowledges. “But they have not been able to leverage growth in the Omni platform to more consistent global growth and margin improvements.”

In its fall 2010 launch season, Omni-Heat generated $75 million in global sales and was expected to grow to $170 million in 2012. In 2011 the industry average earnings before interest and taxes was 13%. Columbia’s was 8.1%.

0213 BoylesBattle Timeline 500pxW

Click timeline to view larger



 

Comments   

 
Guest
0 #1 RE: Tim Boyle charts the future as Columbia Sportswear turns 75Guest 2013-01-28 20:18:46
Well written article about an iconic Oregon company.
Quote | Report to administrator
 
 
Guest
0 #2 family roots/made in americaGuest 2013-01-28 20:24:09
Tim Boyle is certainly one of the smartest outdoor ragman since the Bishops built woolens before him at Pendleton. Having been an important supplier to Columbia in insulations and fabrics when Columbia was made in America the present duck blind he is facing might be better viewed in a study of the older and more iconic denim brand Levis. The family bought back the company from Wall Street rather than keep shifting sand into more items to attach its famous brand.
Keeping things in Oregon gives a special meaning to Columbia who then could begin to build things again in America with american manufacturing to create jobs and mote intelligent sourcing and product development. The bittersweet loss of Columbia not making things in America finds sweet chocolates in that old building and the empty hollows of a famous woolen mill across the street. Kids today need jobs not plane tickets to be global and one tough mother might really pay attention to the nest called made in America.

Doug Hoschek
inventor of Polarfleece
(owner) Wiggy's Oregon made in America retail store
Quote | Report to administrator
 
 
Guest
0 #3 Technology DrivenGuest 2013-02-25 17:45:02
Their IT group spends WAY too much for their size - the numbers do not lie. SAP is repaving the same old cow path and they buy technology because it's 'cool'. Columbia is really an IT company disguised as an apparel company. They will never break through because of the weight of their cost structure.
Quote | Report to administrator
 

More Articles

Powerlist: Law Firms

October 2014
Thursday, September 25, 2014
BY KIM MOORE

A conversation with leading partners at law firms in Portland and eastern Oregon, followed by October's powerlist.


Read more...

Is this employee right?

Contributed Blogs
Wednesday, August 13, 2014
081314 thumb employeefeelingsBY TOM COX | OB BLOGGER

When I say, “Your Employee is Always Right,” I do not mean “right about the facts,” but rather “right about how they feel” and “right about how they want to be led.”


Read more...

Launch

October 2014
Thursday, September 25, 2014
BY JESSICA RIDGWAY

October's Launch article features Soul Kitchen, Easy Company and Slick's Big Time BBQ.


Read more...

Podcast: Interview with Pete Friedes

Contributed Blogs
Wednesday, August 27, 2014

082714-thumb friedesbookTom Cox interviews Pete Friedes, author of "The 2R Manager," about becoming a Best Boss.


Read more...

Portland rises

News
Monday, August 18, 2014

IMG 2551Portland is in the middle of another construction boom, with residential and office projects springing up downtown, in the Pearl and Old Town. OB Web Editor Jessica Ridgway documents the new wave.


Read more...

Startup or Grow Up?

September 2014
Tuesday, August 26, 2014
BY JON BELL

Startup culture is all the rage. Is there a downside?


Read more...

Downtime

September 2014
Wednesday, August 27, 2014
BY JESSICA RIDGWAY

How State Representative Julie Parrish (House District 37) balances life between work and play.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS