Sponsored by Energy Trust

Tim Boyle charts the future as Columbia Sportswear turns 75

| Print |  Email
Articles - February 2013
Monday, January 28, 2013

"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

Behind the curtain: What students should know about accreditation and rankings

Contributed Blogs
Thursday, December 04, 2014
120414-edurating-thumbBY DEBRA RINGOLD | OP-ED CONTRIBUTOR

How important are institutional and/or program evaluations provided by third parties in selecting a college or university program?


Read more...

Corner Office: Timothy Mitchell

January-Powerbook 2015
Saturday, December 13, 2014

A look-in on the life of Norris & Stevens' president.


Read more...

Political Clout

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

Businesses spend billions of dollars each year trying to influence political decision makers by piling money into campaigns.


Read more...

A Complex Portrait: Immigration, Jobs and the Economy

November/December 2014
Wednesday, October 22, 2014
BY JOE ROJAS-BURKE & KIM MOORE

Oregon Business reports on the visa squeeze, the skills gap and foreign-born residents who are revitalizing rural Oregon.


Read more...

Healthcare pullback

News
Thursday, November 20, 2014
112014-boehnercare-thumbBY JASON NORRIS | OB CONTRIBUTOR

Each month for Oregon Business, we assess factors that are shaping current capital market activity—and what they mean to investors. Here we take a look at two major developments regarding possible rollbacks of the Affordable Care Act (ACA).


Read more...

Kill the Meeting

November/December 2014
Wednesday, October 22, 2014
BY AMY MILSHTEIN

Meetings get a bad rap. A few local companies make them count.


Read more...

What I'm Reading

November/December 2014
Wednesday, October 22, 2014

Peter Lizotte at ACME Business Solutions and Roger Busse at Pacific Continental Bank share their favorite reads.


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