So I’m trying to develop a small web based local line of outdoor gear and clothing, with the goal of having a first lineup out for Summer 2014. I think I can do it without putting up too much capital, using a business model similar to GoLite’s. I have been hung up on names for awhile, and was contemplating some variation of Eyrie (Eyrie Clothing, Eyrie Equipment, Eyrie Apparel, etc.) Thoughts or alternative suggestions welcome.
I think the name should closely describe your product. As a startup, presumably you are targeting a niche market, or you have some factor that differentiates you from established brands. Take “GoLite” for example. Based on their website, they think sports equipment from other manufacturers is too complex. So, they make a line of simple products manufactured through sustainable means. “GoLite” succinctly summarizes their marketing message.
Other brand names I like are “5 Hour Energy”, “Naked” juice, and “Dunkin Donuts”.
I agree with you. And I love the golite name for that reason. I’m having difficulty finding a similarly simplistic name. Also, I’m not so much targeting a niche as assuming a similar online business model to theirs. I’ll put some more thought into it. But on the other side, I’m looking at firms like Arc’Teryx, The North Face, EMS, Patagonia and Backcountry.com and seeing less specific branding.
GoLite-est
The rugged man
Other brand names can focus on method of delivery. For instance, eBags. They don’t have a unique product, but they give you bags… through the internet!
Another very good name that I forgot… Overstock.com. I don’t even have to know anything but the name to want to visit their website.
I have nothing to add, except I want in on this right before your IPO.
But more seriously, what’s your “edge” over brands like North Face etc? Is it design and aesthetics? How will you manufacture these?
Eyrie sounds good.
Why don’t you pitch your idea on Shark Tank?
Well, there’s nothing super revolutionary to what I’m trying to do, and I’m not trying to swing for the fences and become an industry leader. But I do think there’s enough room in the industry as it stands to at least cut out a few regional and industry niches and take steps to expand to a reasonable level. TNF and Patagonia both due about $500MM a year in revenues (ballpark estimates). They use your traditional source to retailer model. So they’re marking up probably about 25% profit, then selling it to retailers that are marking in profit margins between 30-100% (depending on product type, retailer margins are rediculous). So all told, you have a lot of loose change rolling around. Arc’Teryx makes really high quality gear, and that’s their thing, on average they’re the undisputed king in quality with respect to fit and finish. TNF, Patagonia and Mountain Hardwear are all just below them about half a notch, competing with pretty similar goods. Each company may have it’s own cut and minor tweaks to hardshells and soft shells, with some layering garments and some mix of tents, backpacks, harnesses, and biners thrown in.
Differentiation is pretty limited within the industry to be honest. None of these companies produces their own fabrics and I know the sources for the majority of the materials. There’s P-----ec, S------er, a few places cranking out Goretex and a few others, as well as general Merino Wool Suppliers. Cut isn’t a huge mystery. I’ll probably pursue my own ideas for cut but you can always buy one of their items and cut it apart to see what they’re doing differently.
Anyhow, as it stands, I think there’s room within the industry for another, I have plans on building a regional presence, and I do have a few product ideas that I’m borrowing from Europe and a few boutiques hitting non-mountain sports that I think will be unique and positively recieved within the outdoor / mountain industry.
My main advantage beyond that will be in terms of business model. GoLite is unique in that they are entirely online and do not sell to retailers. So they remove the substantial retailer markup and undercut everybody while producing some pretty unique and high quality goods. There’s no middle ground here, if you sell to a retailer they won’t let you undercut them so you’ll have to post MSRP online, GoLite and potentially my company would circumvent this by hitting online only. GoLite has been pretty successful targeting this strategy and focuses more on backpacking goods. I would be focusing more on apparal and as I became more comfortable in the industry, I’d be creating hardshell jackets and more advanced products. You also drastically reduce startup costs with an online strategy. I will also be focusing heavily on building a presence at trade shows and outdoor sport festivals and events.
There’s nothing remarkable there, but I think it’s pretty doable. I’m a gear junkie with 20+ years of backcountry sport experience and a good business mind. I can give this a swing without putting too much at risk, so I figure why not.
Shark Tank is more for inventors of gizmos and gadgetry.
As another gear junkie, I think this is interesting. As you know, you have quite a battle ahead of you even with online retail as a cost saving avenue. For those that buy Arcteryx & Patagonia, price sensitivity isnt as high (don’t get me wrong I love finding it on sale but will buy it regardless). Brand is the challenge.
You know who makes bomber stuff, and then there are tons of other companies that might be reasonably good but you would never entertain the idea of buying it…ie-Royal Robbins or something. Getting to that brand recognition and then loyalty standpoint is a hurdle. Certainly there are a large group that just want lower priced apparel and are not brand specific, but getting to Arcteryx level takes a huge warranty, time, buzz, and stuff that truly is bomber.
I feel apparel would be one of the toughest areas to crack versus more of a specialty in the outdoor space (ie- the best camp booties, etc). Let me know if you want gear testers and best of luck.
^Yep, I’m on the same page. The idea of competing with Arc’Teryx actually makes me nervous when I think about it. But I’m hoping to just avoid that all together and focus more on the Pategonia, TNF, Mountain Hardwear grouping, as there’s less brand loyalty there. Who knows, I’m not planning on quiting my job and I’m looking at this as a 3-5 year path from first products to some profitability, so we’ll see.
Agree somewhat with Mr. Leverage that it is a good idea to start with one product idea that you think is underserved or done relatively poorly relative to other, better researched and better penetrated products. For example, in the fitness world two examples I can think of are jump ropes and compression gear. There are companies that just took those simple concepts and perfected them, going so far as to be able to customize them. Anyway, if there is a piece of apparel (my understanding is that is where you want to start) that you think is underserved or is expensive for no good reason (maybe baselayers or helmet liners) then that could be a good place to target your initial R&D.
I like just “The Eyrie” as a name.
Tough market BS. What is your plan to make money?
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How is your product going to differentiate itself in a crowded market?
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Where are you going to prouce the goods? China?
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What is going to be your distribution chain?
First ask yourself, why would I buy a jacket from you over something from The North Face? Money? No, I’ve had the same NF ski jacket since 2000. It was $400 MSRP then and it still looks new. So why would I buy a jacket from your line?
Just spitballin’ here, but the gap that everyone seems to be trying to get into is more of lifestyle wear than performance apparel. For instance, can you make a coat that is insulated/resistant/functional that looks appropriate to wear into the office that doesnt look like I am going to be belaying for the next hour? Something that isnt a piece of crap wool run of the mill coat? Same applies to other segments, a nice hoody with thumb-loops/adjustable hood…but isn’t a baselayer type piece. I think the angle of a lifestyle line could have some pickup, at least for the few people like me out there. How about some jeans I can go climbing in and to the bar afterwards that aren’t dopey?
Do you climb, camp, ski, or anything where you could maybe target a specific product at a segment just to start out with to see if it sticks? Camp shoes man, camp shoes…
Blake,
Well, for starters, I think the TNF probably makes the lesser respected shells of the high end names listed above. They don’t have as dominating of a presence in the backcountry as they do for active resort wear. I feel pretty confident that if they were the competition I had to worry about I wouldn’t be too concerned given that I have a slightly different focus. TNF makes great ski jackets, but a ski jacket and shells built for backcountry layering are different things. I bought 3 shells between $400-800 in the past two years and none of them were TNF. One was H/H (my fav), one was Patagonia and one was Arc’Teryx. Each is for a different purpose, depending on what I’d be doing (warmer, technical ice climbing routes vs peak traverses, etc). I mean, the point I’m making, is most average shoppers have never heard of golite, but they still have managed to sell goods in 23 countries and do enough business to be independent, and every enthusiast is very familiar with their line. I’m just not looking to compete with TNF on a broad scale consumer level.
All goods will be made in North America. Preferably the US, although Canada would be in the mix. Honestly, many of the competitors such as Arc’Teryx have that same strategy and it makes sense for me since I’d be doing low volume initially. In the end it allows more control, less quality hickups, better simplicity and flexibilitity, etc. If I actually got things off the ground I’d revisit the China question, but I’d prefer to keep it in NA if possible.
I’ve already mentioned that it’s primarily online only distribution, focusing on building a presence through trade shows, outdoor sport festivals, video sponsorship, etc.
I honestly don’t view the market as that crowded, H/H, Mountain Hardwear and several others have all made major inroads in specialized higher end gear in the last decade without too much issue. I’m trying to capture a pretty minor part of the higher end specialized market and I’m not really too worried about getting products into ski resorts. It’s just not where I"m focused. Besides, most of the early goods would be focused on layering systems and softer goods targeting ice climbers, the whitewater community, trail runners and ice climbers / backcountry skiers. High end shells aren’t really something I have to worry about for a bit. For the first two years, a couple local outfitters have already told me they’d be willing to carry some stuff on consignment to help me out.
Mr. Leveage,
I’m actually pretty active in the east coast whitewater scene and have a lot of friends still into rock climbing (I only climb casually these days). There would be a lifestyle wear component that I’d be targeting for the first two years to cheaply get inroads. The more technical baselayer systems would be developed once I get initial inroads. Some of the lifestyle wear ideas I have are actually pretty sick and I’m excited about, but I don’t want to go into too much detail there.
I mean, the thing to keep in mind here, is if I can get this thing to a point in 5 years where I make enough to get by doing this and being independent, doing things I love, without having to work in finance, it’d be a major victory. I’m not really looking to crush the competition.
Exactly. Which is why you need to find a defensible niche. Honestly, half the battle is just working up the cojones and motivation to do it. Chance of getting everything right the first time is basically zero, but learning from your mistakes is invaluable…because, you’re going to make mistakes.
Also, I know I argued points with you guys, but thank you, I really do appreciate all of the input I’ve received.