more intimate conversations. Another important job for Bruce is coordinating JDOS’s in-depth fishing newsletter. This is published in newspaper form with articles on local waters, area maps and general fly fishing information written by the shop employees and guides. It is probably the best up-to-date fishing publication for the area and it is given out at shows, mailed out on request and handed out in the store. This puts a tangible item in the customer’s hands that they keep for reference. Bruce also maintains the shop’s web site, which features fishing reports, fly tying steps and guide information. At one time guide service also had a destination travel division. This was short-lived however as it created a huge degree of complexity and potential problems. The shop discovered it could better service destination travel clients by referring them to a special fishing travel agency such as Frontiers, while maintaining the valuable tackle sales. An important addition to the guide service is private casting lessons. By providing this service the shop creates their own beginner market, allowing an apprehensive customer to dabble in the sport with a smaller time and money commitment. A good number of casting lesson clients go on to take a trip or buy equipment. Without this ability to “try out” the sport, many of these potential customers would walk away. The lessons are taught by store personal, which also helps them build a customer relationship and credibility. The instructor has their trust and when they come in the shop to purchase gear there’s rarely the need for a big sales pitch. Casting “graduates” take the instructors advice and definitely buy more than a cold call customer. Some of the casting instructors go on to become fulltime guides for the shop, which provides the shop with yet another long-term personal interface with customers. Rod and wader rentals are another way that potential customers can dabble in fly fishing and still be serviced when the guide service is completely booked.
their selection determined by default. With almost two decades of buying experience, Jeff Currier has pretty good read on what sells, and when and how to adapt to changing market and weather conditions. Currier comments, “What you sell and stock is very important and requires constant attention. While the traditional “crunching of sales data” is important, being intimate with the inventory and what is happening at the moment is of equal importance.” Currier sets aside Sundays to check inventory and prepare orders. This is usually the slowest day of the week and just prior to the first order day of the next week, Monday. On Monday he calls and faxes in the orders and checks availability. He does, of course, look at sales numbers, but, “Sometimes you just have to go for it, and bring in extra product that you think will sell. Part of ordering has to do with what nature hands you. Go long on shorts when the weather is hot, and build the stock of outerwear when the weather gets cold.” To compliment JDOS’s range of customers, Jeff Currier stocks a wide range of price points. Jack Dennis has an exceptional stock of premium gear, but they also sell a $99 youth package and a small selection of spinning gear. This not only creates a sale that might have gone to a competitor, but it gives the perception to the entry level angler that
the shop isn’t a hotbed of snobs. Invariably, if an entry-level customer gets hooked on the sport, they will eventually buy a better outfit, and you’ve then made two sales. With the huge range of fly fishing equipment now available it is impossible to stock everything, so special orders are important to the shop. This is easier to do with local customers, but is surprisingly effective with tourists. “If they trust you and want a product, they will have it sent to their home,” maintains Currier. “Specials orders are not only a sale, but a way of making the customer feel wanted.” At one time JDOS attempted a mail-order catalog, but they quickly discovered it was an area they weren’t prepared for and dropped it. The shop also doesn’t offer any e-commerce sales on its web site, preferring to concentrate on traditional face-to-face transactions. As a result they also do a good phone order business from customers who have been in the store and know the depth of product selection and expertise. Many times these customers remember the employee that helped them at the shop and ask for that person on the phone. Even though Jack Dennis Outdoor Shop isn’t the minute tackle shop that it started out as, customer service and a personal relationship with clientele is still the foundation of the business. When added to 40 years of experience and expertise, it’s a winning combination.
9018! ! ! ! ! ! ! ! J O T J E F ! U I F ! C V T J O F T T ! ! ! ! ! ! ! ! P G ! B O H M J O H
Manufacturer
Patagonia Gets Serious Retailer Profile
Jack Dennis Turns Forty
TRADITIONAL BRICK AND MORTAR Jack Dennis Outdoor Shop has been in business for much longer than most of the current fly fishing manufacturers and it maintains a good reputation. This allows the store to carry the lines they prefer, such as Sage, Winston, T&T, Simms, Dan Bailey’s, Patagonia, Abel, Ross, Lamson, Cortland, Rio, Scientific Anglers, Cloudveil, Galvan, Renzetti, fishpond, Griffin and Whiting. Customers buy tackle at JDOS because they can touch it and see it in person. They can cast different models and brands of rods to compare them, they buy hackle because they can sort through a dozen saddles, they buy flies because they can pick through a huge selection. They want to feel like they are in control of what they buy and not just have
Digital Revolution
The New Media Marketing Trend
Is Selling Travel Right For You?
Manufacturer Profile Story & Photographs by Joseph E. Daniel
The beautiful mission-style buildings of the Patagonia campus in Venture, CA include an on-site retail outlet.
Patagonia Gets Serious About Fly Fishing I
t’s never going to snow again,” laments ten by his raw individualism, his proclivity to stant rapport. In this area Chouinard is not Yvon Chouinard in a resigned, yet pragplaying outside and his obstinate refusal to quick to deliver. In fact, when I first sit down matic tone. “Everything is melting and sell out. But like all heroes whom you hold to interview him he offers nothing back in we’re headed towards becoming a water planet.” unrealistically high in private esteem, when polite social discourse, waiting instead for Provocative statements like this zinger on you finally meet them you forget you’re just each of my questions through uncomfortable climate change are a reportedly common another anonymous fan, and you expect in(for me, at least!) gaps of silence. response from this quiet (read that I know that I’m trying too hard, introverted), reluctant (hands-off but I so want to bond with Chouiboss who hates confrontation) antinard, to let him know how much I businessman (contrarian capitalist). admire his achievements, his genuBut it gets better. ine business bravery and his contri“Patagonia has always been bution to saving the planet. But it’s known as a mountain company, not until I mention steelhead fishbut now we’re repositioning to ing on the Rio Santa Cruz in southbecome a 50% mountain company, ern Argentina that he meets my 50% water company. And part of gaze. I’ve finally struck a chord and that water side is fly fishing.” for a moment we connect. I tell him I love this guy. Like legions of that exploring the river is the cover Chouinard groupies who admire story for our new issue of Wild On the famous, self-described “dirtbag The Fly and he asks several quesclimber,” and often stand in line for tions about what we discovered. the possible honor of serving the Later, talking with his lieutenants, legendary eco-warrior/corporate I’m reassured he’s this way with non-conformist (Patagonia receives everyone. That over time he warms over 900 applications for every job At a display set up outside company headquarters, Yvon Chouinard talks with up to people, quietly doling out opening), I have long been smitfierce loyalty and support. children from Patagonia’s child care facility about salmon preservation.
26 ......Fly Fishing Trade
The history of Patagonia has been written about often, most recently in primer form as Chouinard’s inspiring memoir of his company Let My People Go Surfing, and just this past April as “The Coolest Company On The Planet” cover story by Susan Casey for Fortune Magazine’s “Green Issue.” The story is pure juice for any aspiring entrepreneur wishing to better the world, make money and avoid a numbing corporate existence: Eight-year-old son of French Canadian parents moves to southern California. Shy and reclusive, he spends time alone exploring the ocean and nearby forests. At 15 he joins a falconry club, where he in turn learns to rappel in order to reach cliff-top raptor nests. Suddenly it’s all about the climbing, a sport that defines his life for the next several decades. He gravitates to Yosemite’s famed Camp IV where he joins the ranks of a new breed of big wall climbers. Scaling sheer, vertical rock faces several thousand feet in height requires a new generation of climbing tools. Chouinard installs a coal-fired forge in his parent’s garage and teaches himself blacksmithing, eventually hammering out pitons which are stronger and more elegantly designed than anything on the market. At first he sells his pitons out of his car simply to survive, but he eventually expands his business, moving it to a tin shed in Ventura and calling it Chouinard Equipment Co. At about the same time he meets Malinda Penoyer, a rock climbing art student who steals his heart. A few years later they marry. Chouinard Equipment Co. evolves over the years, but exists mainly to fund the climbing, fishing and surfing expeditions of its owner. Malinda helps to bring focus but shares Yvon’s philosophy that work should be an honorable means to an end, but definitely don’t let it get in the way of life. In 1972 they expand into clothing, launching a new company called Patagonia. And the rest really is history, from rugby shirts to fleece to organic cotton to wool-backed, non-petroleum neoprene. As Patagonia excells in developing technical apparel and teaching consumers how to use it, outdoor enthusiasts adopt the brand for their particular discipline. And all along, most of Chouinard’s decisions to diversify into a certain niche are fueled by his own passion for the activity, hence the production of clothing and gear for everything from climbing to backcountry skiing, surfing to paddle sports. Where Choinard plays so grows Patagonia. But what most folks don’t realize, even many anglers, is that Patagonia has also been in the fly fishing business – albeit seemingly halfheartedly – for over 20 years. Chouinard is a competent (including Spey casting), obsessed angler, a passion that continues to grow for him as the 68 year-young adventurer dials it back a little on the more demanding sports. In 1987 Patagonia introduced its mesh fishing vest, as well as the Sawed Off Rainjacket
utilizing their new H2No breathable, waterproof fabric. This was the genesis of their SST Jacket, a fishing raincoat that set the standard in the industry. In 1989 Bill Klyn came from working at Simms to join Patagonia as its first Product Line Director for fly fishing. At that point the company had decided to focus on outdoor technical markets and fly fishing was one of the areas being targeted. 1990 saw the introduction of Tropical Flats clothing and the birth of an entirely new niche of technical saltwater fishing apparel. Although the company still didn’t have much in the way of core fly fishing products they combined their highly successful Capilene layering system, and their legendary fleece with fishing vests, raingear, and tropical wear, and a line was born. “Anglers have been buying Patagonia clothing since the company began so it was a natural way to enter the market,” explained Klyn. “With the SST Jacket and our Tropical Clothing concept we were poised to get serious about fishing. We had just designed a true line of core fly fishing products and Inside Patagonia: top, the prototype room with hundreds of fabric samples; middle, apparel designers in their studio working on 2009 design and color concepts; we were anxious to get bottom, fabric testing room where thousands of tests are conducted annually. them into production. Everyone was feeling very ambitious at the time, was, in Chouinard’s words, “the single darkest and Patagonia was growing rapidly.” day of the company’s history.” Unfortunately, way too rapidly. After years Needless to say, while Chouinard and asof 30- to 50-percent growth Patagonia was sociates took a long hard look at how and why about to hit a wall. they were in business, and then implemented The country was entering a recession and the necessary painful steps to turn the company for the first time dealers were cancelling orders. around, Bill Klyn’s new line of fly fishing gear Banks were tightening their lending practices, was shoved to the back burner. It was imperaparticularly to clothing companies, and Patagotive for Patagonia to concentrate on products nia was in trouble. It could no longer sustain that produced the highest return on investits meteoric growth and financing constraints ment and with the concurrent slowdown of the were forcing the company to cut spending drasangling market in the early ‘90s, technical fishtically. On July 31, 1991 Patagonia let go 120 ing vests were not going to be one of them. employees – 20-percent of its workforce. This In hindsight Chouinard likely views the crisis
www.flyfishingtrade.com......27
of 1991–92 as one of the best things that could ever have happened to Patagonia. As horrible as it was, it forced a complete revision and recommitment of the company to his earlier values, and the remarkable social and environmental ethic of present day Patagonia emerged. However, for the next decade fly fishing at Patagonia tried to find traction with little success. Penetration into the market had been lost to other competitors while Patagonia was recovering and fly shop dealers remained non-receptive to soft goods like fleece and layering systems, preferring to stock only technical gear. Certain Patagonia innovations were brought to market including the patented Pack Vest, SST waders with their internal suspension system and beefy wading shoes, but the waders and wading shoes were initially plagued with quality issues like leaky seams and felt soles that came unglued. On top of that, Patagonia management at the time did not buy into fly fishing as a viable niche and the line received little in the way of support and development. “It was a frustrating decade,” recalls Klyn. “We didn’t really have a line, we had no budget for marketing and certain quality problems were killing us. And I couldn’t get the support I needed from the top to remedy much of anything.”
A consummate practitioner of what he calls his MBA style of management, “management by absence,” Chouinard nonetheless recognized the need for change. As an angler he too was frustrated with the company’s lackluster performance in fly fishing. “Our biggest problem with fishing at the time was that we didn’t have management in place who believed in Patagonia CEO Casey Sheahan (left) and freelance copy writer Dylan Tomine chasing corbina on the fly in the surf a few miles from company headquarters. As it,” he recalls. “Eventually we had to change an ardent angler Sheahan has brought new focus and commitment to Patagonia’s line of fly fishing products and participates personally in their development. that.” The search for a new CEO of Patagonia was underway. for whom the world’s premier fisheries were his Enter Casey Sheahan, a skilled executive playground. The focus was incredible and the with stints at Kelty, Merrell and Nike ACG, who development of new and revised products was was also a fanatical fly fisherman. Sheahan was in full swing. It is during this upcoming 2008 hired in early 2005 and initially replaced Bill season that consumers will see the first fruit Klyn as Fly Fishing Product Line Director. Klyn of those efforts with 17 new and redesigned in turn became Fishing Marketing Manager. core fly fishing products being introduced. 2005 was the year Patagonia came back into Visiting Patagonia headquarters in Ventura, the fly fishing business with a full line of core California has a certain Alice in Wonderland feel. fishing products including Housed in beautiful, light-yellow, mission style revised versions of some of buildings – which encompass both a modern the original designs develretail outlet and the original Chouinard Equipoped by Klyn back in 1989. ment Co. tin shed (see cover) – the Patagonia Two years before, Steve campus includes various “corporate” offices, Hitchcock (former VP at apparel design and photography studios, fabric Marmot) was hired as Sales sample rooms, production and testing stations, Manager and he breathed child care facilities and an organic employee new life into Patagonia’s recafeteria – all exuding an ambience somewhere lationship with its fly fishbetween high tech and home grown. This is ing retailers. after all a successful $270-million clothing In late 2005 Sheahan company so there are naturally a few computwas promoted to CEO, and ers, commercial sewing machines and a CAD Steve Stracqualursi came cutter or two lying about, but the front foyer on board (from a long-time is untidy with bicycles, surf rods, raft oars, live tenure as a Patagonia rep) plants, live dogs and a chalk board with the to take over the job of Sales daily surf report. Tibetan prayer flags adorn Manager from Hitchcock, a the ceiling in a wide open room where the apposition which eventually parel designers work, and everywhere there is was absorbed into the Prodthe clutter of creative minds feeding off a visual uct Line Director position. stew of fabric swatches, pattern charts, color Suddenly, for the first time samples, and racks of prototype clothing. Birdin Patagonia’s history, a team song, children’s laughter and the rich perfume of serious fly fishing enthuof oleander bushes seep in through windows siasts was in place from the open to the outside. This is decidedly not your top down. And what gave average corporate work environment despite a this dream team even more sense of focused concentration throughout the credibility was that they all open cubicles forming a maze of workstations lived (and still do) in areas in various large open quarters. where fishing was a way When I first arrive I wait at a picnic table outof life, Bill Klyn in Jackson side next to the company’s child care playground Hole, Wyoming; Steve Stracfor VP of Marketing Rob BonDurant who has qualursi in Scarborough, promised me a tour. I watch a short, athleticallyMaine; Casey Sheahan in built older guy wearing flip flops, khaki-colored Fly Fishing Product Line Director Steve Stracqualursi (left) conducts a design Carbondale, Colorado: and twill pants and a short sleeved Island Hopper discussion on a boot bottom wader being tested by Patagonia with designer Jesse Thompson (middle) and Product Developer Steve Swartzendruber. of course Yvon Chouinard shirt walk by himself across the parking lot from
28 ......Fly Fishing Trade
the shed where Patagonia now manufactures its own line of surfboards, towards the entrance of the main building. He stops a moment, tipping his head to the right and inserts a finger in his right ear, shaking it slightly as a swimmer might to dislodge water. It’s a moment before I realize it’s Yvon Chouinard himself, showing up for a vendor meeting after (I learn later) his customary morning surfing session. Patagonia is nothing if not fabric. They are the undisputed leaders in the development of technical fabrics for outdoor clothing and gear. Where most other companies in the outdoor apparel business might design a specific piece of clothing and then search for the best “off the shelf” technical fabric to manufacture it with, for Patagonia it’s just as often the opposite approach of form following function. Rob BonDurant explains further as he leads me into the prototype room, an open space of 20-odd sewing stations framed by hundreds of colorful rolls of fabric, thread and cord samples. “We work with mills around the world to develop fabrics that satisfy a specific technical need we have. But because we’re willing to participate in the cost of research and development, and then allow mills to later bring to the open market fabrics we’ve helped to develop, we often get first look at innovations coming from the cloth makers themselves. And every once in a while a truly benchmark fabric is created, like Capilene or Synchilla or H2No, which in turns drives de-
sign and the creation of new products.” Patagonia rejects 94% of the fabrics it evaluates each year because they don’t perform to the company’s rigorous standards. The remaining 6%, maybe 800 to 900 samples, are subjected to a battery of tests at both its on-site testing facility and through rigorous field testing with professional athletes, guides and company “ambassadors.” Only about 50 new fabrics are finally adopted each year to be made into commercial products, but when they are, they represent the cutting edge of technical application. BonDurant shows me everything at Patagonia, and I mean everything. His tour is far more transparent and his answers to my questions more honest and forthcoming than I could have imagined. He allows me to photograph anything I want and gives me free rein to wander. That accessibilty is a Patagonia philosophy. Everyone here works in open rooms, there are no doors or separations, there are no private offices. This is an egalitarian environment where communication is king and employees are encouraged to take risks and question convention. Eventually he drops me off at an open conference table where I meet Steve Stracqualursi in the middle of a design review of the new Stormfront Podpack, which is being reintroduced by Patagonia in 2008. I spend much of the next two days with “Straq” (as he is affectionately known by coworkers cowed by the pronunciation of his name) and we go over every detail of every piece
A face recognized by most members of the angling community, Fishing Marketing Manager Bill Klyn “walking the talk” off the Abacos in the Bahamas.
of gear in the 2008 line. Straq’s knowledge of his products is encyclopedic and his constant quest to apply to his wares the philosophy of Antonine de Saint-Exupery – “A designer knows he has achieved perfection not when there is nothing left to add, but when there is nothing left to take away.” – has resulted in some terrific new pieces of gear and clothing.
Full Range of Hardwood Displays Designed for Fly Shops
406-587-5804 • www.flyshopfixtures.com • info@flyshopfixtures.com www.flyfishingtrade.com......29
Shame On Us 1% For The Planet (1% FTP) is an alliance of businesses that have made the commitment to donate one-percent of their annual sales to environmental organizations. To date, there are 683 member companies from around the world representing every imaginable business niche from architecture to beverage distribution to musical performance. The list is quite long and impressive. What is short and disappointing, however, is the participation of marquee members in the fly fishing industry. There are only 33 fishing company members of 1% FTP and frankly, most of them are quite small. “The notable brands, the household names in the fly fishing industry, haven’t yet engaged,” says Terry Kellogg, executive director of 1% FTP. Kellogg isn’t exactly sure why, given that the industry profits directly from the natural resources the alliance strives to protect, but he further argues that when you only have to raise your prices six-tenths of one percent to offset the entire 1% donation, “it’s pretty tough to make a convincing argument that you can’t afford it.” Okay, admittedly, it IS tough to make a buck in the fly fishing industry. But as legendary Sierra Club executive director David Brower once said, “There is no business to be done on a dead planet.” There may also be no other industry that relies as much on wild, natural resources for its success as fly fishing, and not only is it painfully obvious that we should all be investing in the future environmental health of our planet, it is unconscionable if we don’t. Not to mention really lousy business practice as well. 1% FTP was created by Patagonia founder Yvon Chouinard and Blue Ribbon Flies owner Craig Mathews. But now the famous fleece maker and the humble fly shop owner worry that their very association may actually be impeding the growth of the alliance in the outdoor industry. “We made a lot of noise about 1% when we first helped launch it, but that may have been a mistake,” laments Bill Klyn, Fishing Marketing Manager for Patagonia. “This is not a Patagonia initiative, we’re not profiting in any way from it, we just helped to get it started. And we contribute a lot of money to it every year. But somehow there’s this concern out there from competing companies that if they get involved it helps Patagonia.” Okay fly fishing companies, so that’s the
30 ......Fly Fishing Trade
real story. This is not the place for petty rivalries. If you still feel you’re somehow giving Patagonia or Blue Ribbon Flies a special edge by joining 1%, get over it. The only one profiting here is Mother Earth and that’s good for all of us. Since it’s inception in 2001, 1% FTP has donated over $21 million dollars to a cadre of 1,190 pre-approved environmental organizations. This is powerful tithing. Yet it can be targeted all the way down to a small group trying to save a few fish in a tiny stream somewhere in a place that used to be wild. If you’re a $50,000 a year fly shop, your $500 donation can really mean something locally. If you’re a $500,000 lodge your $5,000 donation might be critical to protecting the wilderness that surrounds your establishment. If you’re a $5,000,000 rod company your $50,000 donation could be considered a requisite “environmental tax” to insure there are places where folks can actually use your rods. And if you’re a $50,000,000 or bigger clothing and gear company, your $500,000 donation might have a powerful enough influence on consumers to make them buy from you over your competitor. Which brings up another point; perhaps “donation” is the wrong term, maybe “marketing expense” or “resource insurance” is a better budget line item descriptor for your 1% of sales. After all, being “green” does not mean giving it away. In the fly fishing industry particularly, it just means smarter business. In fact, you may already be supporting certain environmental or conservation organizations to the tune of one-percent of sales. By joining 1% FTP you can keep supporting those same groups, and also garner the goodwill and marketing value associated with displaying the 1% FTP member logo. Craig Mathews at Blue Ribbon Flies loves to point out how he can directly attribute an increase in sales of over 20% due to his association with 1% FTP. Call him at 406-6467642 and he’ll tell you how. So come on, be the first on your block to join 1% FTP and reap the immediate rewards. Then coax, cajole and convince all the businesses you work with to do the same. Wild On The Fly, past owner of this magazine, and Angling Trade Magazine, our successor, have both just recently joined. Let’s make our fly fishing industry a leading sector in green global business. What have you got to lose? For further information, and to join 1% FTP visit www.onepercentfortheplanet.org.
To describe them here in one-dimensional prose and even pretend to do them any justice would take pages more, so I encourage you instead to check them out at the Patagonia booth at the Fly Tackle Retailer Show, or later in the year online at www.patagonia.com/flyfishing. What is perhaps more salient to this article and to fly fishing as a whole is the realization that Patagonia’s evolution of product and design, their recommitment to our pure and simple sport of fly fishing, has occurred within the strict, self-imposed policies of their mission statement, “Build the best product, do no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” For if fabric and design innovation are the heart of Patagonia, environmental consciousness and social responsibility are the soul. Patagonia was one of the first companies to institute recycling and their current innovation in sustainable, non-polluting fabric solutions is groundbreaking. Their record of environmental and social tithing is laudable, with over $28 million given to grassroots organizations since 1985. On the employee side, they were one of the first to offer onsite child care, maternity and paternity leave, and flextime. They even give time off for employees to participate in demonstrations and acts of civil disobedience against social injustice and environmental degradation – and they’ll bail you out of jail if you’re arrested in the process! But it is Patagonia’s simply stated recycling goal of “being able to take back everything we make by 2010” that has raised the bar of corporate activism to a new height, even for them. Already, through a partnership with Japanese supplier Teijin, they are able to totally recycle Capilene underwear, Malden fleece, Sunshade Shirts and Sun Masks; and organic cotton through another vendor. But the technical components of waders, boots, packs and raingear may prove more challenging. However, at Patagonia, when Chouinard issues an edict, particularly in his quest to minimize harm to the planet, he rarely backs down in the face of methodological obstacles. An enthusiastic student of Zen, perhaps Chouinard is using fly fishing as a metaphor for what in life is most precious to us, and what we have to lose if we continue in our reckless abandonment of Mother Earth. From a conventional business perspective, the market share of technical fly fishing gear in an already overcrowded industry is hardly worth the bother for a lifestyle clothing company the size of Patagonia. As Rob BonDurant confides, “I sell more in black fleeces annually than what is generated by the entire fly fishing product line combined.” But that’s not the point. Fly fishing engages worldweary folks with the rarity of something wild and unaffected. Produce perfect products that allow this communion to occur, and you have initiated motivation for positive change.
B I G I N T E RV I E W
YVON CHOUINARD
Do something for the planet – before it’s too late... TTW caught up with the charsimatic leader of clothing giant Patagonia, Yvon Chouinard – to find out what the French Canadian has in store for the fishing division of his business.
Contact Patagonia Web www.patagonia.com 48
TTW | FEBRUARY 2008
P48-51_TTW_02_big interview.indd1
1
11/12/07
12:32:07 pm
World
TackleTrade Fair • AUGUST 9th to 11th, 2008 B I G I N T E RV I E W
Y
von Chouinard is the founder and owner of California-based, eco-friendly apparel giant Patagonia Inc. He started in business by designing, manufacturing and distributing rock-climbing equipment in the late 1950s. His tinkering led to an improved design of ice axe that facilitated the French ice-climbing technique and it’s now the basis for modern ice axe design. In 1964 he produced his first mail-order catalogue, a one-page mimeographed sheet containing advice not to expect fast delivery during the climbing season! Business grew slowly until 1972, when Yvon added rugby shirts to his catalogue and his clothing business took off. The rest as they say, is history! The stature and size of Patagonia as a global High Street brand is unquestionable and you must be very proud. How do you still have the drive to continue with the business? Have you ever considered retirement? In the late 1980s, Patagonia’s success was such that I considered early retirement. In some ways I would have preferred to disappear to the South Pacific with my fly rod and surfboard. However, I decided to continue steering Patagonia’s course, in part to use the company to inspire and
Nice steelhead!
implement solutions to the environmental crisis. As part of this goal, Patagonia instituted an ‘Earth Tax’, pledging one per cent of sales to the preservation and restoration of the natural environment.
“A designer knows he has achieved perfection not when there is nothing left to add, but when there is nothing left to take away.”
As many of you know, I spend much of my time in the outdoors while also serving on the boards of numerous environmental groups. I work every day of my life. My job is to be the ‘outside’ man, studying lifestyles around the world, coming up with ideas for new products and new market trends, and ensuring that Patagonia stays relevant in a rapidly changing world. Patagonia is famous for some of the materials that it has brought to outdoor clothing. How do you stay ahead of the competition? Fabric and design have been the heart of the company
over its 34 years. Product development begins with the fabric and materials that provide the basic performance element of a product. The product is designed around the fabric – form follows function. Patagonia’s fabric team works with mills all over the world. It’s expertise, and our willingness to participate in the cost of research and development, provides us with the first look at fabric innovations. Competitors work in the opposite way by beginning with a design, and then searching for ‘standard, offthe-shelf fabrics’. As for design, timeless simplicity and superb performance of their product line follows the philosophy of Antoine de Saint-Exupery – “A designer knows he has achieved perfection not when there is nothing left to add, but when there is nothing left to take away.” Additionally, Patagonia provides a very different ironclad warranty that supports the quality of its products with replacement due to any defects in fabrics or workmanship. By combining this with 17 new, and redesigned, fishing products for spring 2008, Patagonia has already seen double-digit pre-season order increases from angling accounts.
Yvon in action in Patagonia.
FEBRUARY 2008 | TTW
P48-51_TTW_02_big interview.indd2
2
11/12/07
49
12:33:23 pm
B I G I N T E RV I E W
YVON CHOUINARD The Patagonia story is well documented. However, certainly in Europe, Patagonia is not recognised as a fishing brand. How important is fishing to the company? When Patagonia targeted the fishing market as a global initiative in 1989, it soon learned that this technical market required a very different business model – a new approach in selling, marketing and even product development from its normal business. Although Patagonia products were ideal for the climatic challenges that anglers face in pursuing various species of fish around the globe, communicating how a collection of products would benefit the angler was the challenge. Fishing retailers were in abject fear of how to sell soft goods as a category since they were unfamiliar with fabrics, features, how to display it and sell it – the basics necessary for success. Initial success with fishing dealers had been made, but sales reps lack of fishing-business knowledge, time constraints in developing the dealers’ ability to sell soft goods, lack of internal product-development support, minimal marketing dollars and not having the support of upper management had severely restricted growth. In Europe, they faced an even greater challenge since the Patagonia brand did not have the recognition that it had in the USA. The core business mandate in Europe was to build the brand and sell to outdoor markets – fishing was not a major priority. Having only 350 global fishing dealers heading into the late 1990s, Patagonia opened the door to its competitors, as soft goods in fishing became more popular in the US and Europe. Dealers were interested in the broad categories of underwear, fleece, insulation and shells, so they sought out fishing companies that could offer these collections. Competitors entered that wide-open door 50
Caught napping? Or thinking about how to save the earth. We think it may just be the latter...
and capitalised on this potential business, leaving Patagonia playing catch-up. Is Patagonia well established as a fishing brand in the USA? Patagonia is very well established as a brand – but as a fishing brand I think we let it slip. We have a new range of products for spring 2008 and we will be pushing hard into this market. Currently we are way behind Simms, the market leader. It owns that market and it deserves what it has. We took our eye off the ball on that one and I am the first to admit it. Simms, William Joseph, Cloudveil and Patagonia all started out as mountaineering companies, yet diversified into successful fishingapparel companies. What’s the deal here? With the exception of Simms I’m not sure how successful the rest of us have been! However, I think that the Yvon is a radical free thinker and does not hold his thoughts back.
answer to your question lies, in part, with the technology that we use. For climbing we are utilising some of the latest technologies around. For example, we are using rubber that utilises motorsport technology. It lends itself to climbing and, in turn, lends itself to clambering over rocks for fishing. So do we invent or innovate? I think the answer is that we innovate. It can take 30 years to come up with an invention, but within months there can be 1,000 innovations spawned from that
original idea. Innovations can be spawned much more quickly because you already start with an existing product or design. So, to answer your question about what the deal is with climbing companies being ‘successful’ in fishing – we hunt out the latest technologies for climbing and then find that they often lend themselves to fishing. Operating in multiple fields can be advantageous! So what does the future hold for Patagonia in Europe? Our high-quality products are
legendary. The reputation as a supplier, along with the services we provide in the US and Europe, has been rated the best in their outdoor industry. Actively seeking sustainability for our products, our dealers and environmental initiatives have raised the bar on manufacturer/ dealer relationships. You will be seeing and hearing more of this company in Europe and Scandinavia. And you will be impressed with how different a company we truly are. So what has changed now Yvon? Why the big push? Changes have been evolving at Patagonia over the past 18 months that have re-focused Patagonia’s efforts to become serious about the fishing business. Casey Sheahan, our new CEO, is a hardcore angler who came onboard two years ago. He shares a passion for fishing with myself and we both understand the potential success that fishing
TTW | FEBRUARY 2008
P48-51_TTW_02_big interview.indd3
3
11/12/07
12:33:40 pm
World
TackleTrade Fair • AUGUST 9th to 11th, 2008 B I G I N T E RV I E W
sustainability in business, new products that fuel anglers’ interests, marketing, inventory fulfilment and so on. But looking at the Patagonia mission statement more clearly defines the strategy for the global fishing market “build the best product, do no unnecessary harm, use business to inspire and implement solutions to the environmental crisis”.
can offer Patagonia. The board of directors and our US and European managers gave their blessing to recommit to growing our fly fishing business. With that mandate in hand, Casey created a more intensely focused fishing team with long-time fishing guru Bill Klyn taking on the role of fishing marketing manager. Steve Straqualursi, a longtime Patagonia rep from New England and passionate striper angler became product line director. Another Patagonia rep, Brian Bennett, a trout and steelhead fanatic, came onboard as fishing sales manager, to lead and further develop our US independent fishing reps. I could continue about the obvious fishing-business strategies that are necessary to become successful in Europe: building the Patagonia brand, increased distribution, enhanced dealer communication and support where we are partners with our dealers to ensure
Tell me about ‘1% For The Planet’. This is an alliance of companies that recognise the true cost of doing business. They donate one per cent of their sales to environmental organisations worldwide. Through our corporate giving, grants and philanthropy, we encourage responsible business and corporate responsibility. Our environmental alliance is designed to help our members become sustainable businesses, and our environmental group database aids our membership to make choices with their corporate grants to environmental organisations. That may sound like a prepared speech – but I do sit on the board of directors so I have reeled that line off before. Patagonia was one of the first companies to embrace recycling – something which you are keen that other companies should take up – can you tell us more about this? Patagonia was one of the first companies to use organic cotton and recycled fleece and soda-pop bottles to produce fleece garments. This initiative has evolved into our ‘Common Threads Recycling Programme’ that takes back our own Capilene underwear, plus our own and our competitors’ Malden-fleece products, keeping them out of landfills. Our latest ambitious goal is to be able to take back every product they make by 2010 to recycle them into new fibres for fabrics. Inspiring businesses begins with our unique selling strategy
– becoming partners with our dealers. Our reps bring our business expertise to review a dealers’ business, where it wants to be next year and in the future and formalise a short and long-term strategy. This allows building a productcollection strategy, along with merchandising tools and support to help achieve those goals. The Patagonia green model has inspired other companies to follow. Even the giant retailer Wal-Mart has been looking to Patagonia to develop stronger green business strategies. Patagonia’s environmental tithing programme has supported grass-roots environmental groups around the world and has provided $29 million since 1985. We cannot depend on governments to take care of our natural resources. So it’s up to individuals to make things happen. We have to support those grass-roots groups working on our behalf. How many tackle companies are part of ‘1% For The Planet’? Currently there are 750 members in the ‘1% For The Planet’ cause covering 25 countries. It’s taking off big time. However, only 33 fishing-tackle companies are members – and none of them are what you would call big players. I have a message for the tackle trade: “Be aware that our livelihood depends wholly on the outdoor environment. We have more responsibility for the outdoors than the average taxpayer – we are totally dependent on the environment. Join ‘1% For The Planet’. Join something. Do something. Be warned, if we do nothing we will have nothing. We must invest in our own futures…” Yvon, what is the meaning of life? That’s an easy one! The meaning of life… we’re here on this planet to lead an examined life. We are here to bear witness and when we move on we have to report back to HQ! FEBRUARY 2008 | TTW
P48-51_TTW_02_big interview.indd4
4
11/12/07
51
12:34:29 pm
Kudos ’08
FlyRod Reel
Patagonia R1 Flash Pullover ‘The single most versatile piece of fishing clothing I own.’ When you get right down to it, fly tackle can be divided into two categories. Most of it belongs to the “contingent” group, the gear required for a specific outing—rods, lines, fly patterns and so on that are appropriate to particular fish, water conditions and angling methods. Then you have the “core” category, a much smaller number of highly select items, the functional necessities or indispensable precautions that are permanent fixtures in your tackle bag. For instance, I am never without a breathable rain jacket, polarizing sunglasses and, for the past few years, Patagonia’s R1 Flash Pullover, an insulating base-layer shirt that has become as essential to me as the other two. The interior surface is fashioned with a network of gridlike channels that trap warm air for insulation but, at the same time, allow it to migrate and distribute heat around the torso and upper body. This architecture has three happy consequences. First, under a wind-blocking shell, the R1 offers superior insulation, which means in cold weather you
can get away with wearing less. Second, without a shell, warm air and moisture dissipate rapidly through the microfiber outer yarns, which makes it perfect when worn alone on cool days. And third, by achieving warmth with wafflelike spaces instead of additional thickness, the R1 Flash is pleasingly packable, which is why I take it everywhere. You can think of the R1 Flash as coldseason equipment—and it certainly is—but it has also saved my bacon on unexpectedly chilly August dawns in Montana, suddenly blustery late-summer days in Oregon, damp and foggy July mornings on the Maine coast, and even in the tropics, twice, in squalls so
cold I swore it would snow. It’s the single most versatile piece of fishing clothing I own. The R1 isn’t exactly cheap, but I long ago decided that core gear is the last place where you want to cut corners—you just use it too much. $115. Patagonia.com —Ted Leeson Ted Leeson is the 2008 Angler of the Year.