Snowgum in voluntary administration

[wayno]

copying the success of other similar company successes overseas...

[GPSGuided]

No patent on that. If it makes money...

[Strider]

Exactly. No point reinventing the wheel.

[wayno]

Kathmandu shares hit new high as rival falters
http://www.nzherald.co.nz/business/news ... d=11149420

[Joomy]

Snowgum managing director Ross Elliot told the Sydney Morning Herald that Kathmandu, which operates close to 90 stores in Australia, had "perfected the art of pricing a product at an exorbitant retail price then offering it at 60 per cent off to attract buyers".

"The adventure wear category has traditionally maintained integrity in retail pricing, but Kathmandu has changed all that," Elliot said. "The Kathmandu high-low pricing model where products are constantly on 50, 60 and 70 per cent discount, all year round, has forced the whole category to follow suit."

It's sure nice to hear Kathmandu being called out for once! Not that Snowgum didn't engage in the exact same practice...

[Gemma]

I hope they work out something so we can still get Scout badges for the kids!

[wayno]

more kathmandu profit and another 14 stores opening,

they remind me of the warehouse chain stores in nz... brother in laws father ran a clothing shop, when the warehouse opened in his local town he sold his shop, he knew he'd go out of business otherwise, where ever they open they put other shops out of business.

http://www.nzherald.co.nz/business/news ... d=11160138

[blacksheep]

Kathmandu are clearly streaks ahead of the rest of their competitors at their business model. The others are very much trying to follow their every move (watch X-mas campaigns and play spot the difference with all of them). Does the market here really only want this type of retail, or are some companies and their execs too short of original and creative alternative strategies? It would seem Snowgum followed the model of retail Kathmandu perfected, but with much less firepower and a product that left them somewhat wanting. Whereas Kathmandu has invested quite a lot in design and R&D over the last year or two, I know that others in the sectors have cut back on design and product development…the gap will widen further between them and the also-rans..I say "buy" (shares that is, product on a case by case…). Your brothers father in law was a perceptive man and made a painful but probably sensible decision Wayno..differentiate or die, or at least be better at what the big guy is doing..

[wayno]

kathmandu R&D?!? copying the overseas market leaders...

[blacksheep]

kathmandu R&D?!? copying the overseas market leaders...

they have some really good talent in their team Wayno. The business model may not showcase it as it could, but they do have a solid team. I'd encourage them to treat a few projects as special and let them be amazing rather than "good business", they can afford it, have the resources and the room in their highly profitable biz for some blue sky projects...

[wayno]

would help if their shop staff understood the technology in the gear. i'm not in favour of the warehouse mentality killing off the proper outdoor shops with better advice.

[blacksheep]

nor am I. But the market wants low prices, and part of delivering that means cost management. Full time shop staff cost more than having a flexible workforce, and flexible work forces mean (amongst a raft of other issues) inconsitencies on customer service and product knowledge training.
There are so many issues to solve..maybe I'll spend a bit more time trying to solve mine….(currently , how can I laminate a 10,000 TPU film to my pack fabric and retain good hand feel..)

[nq111]

Keep it coming please Blacksheep.

I love learning about these reality checks from the industry perspective.

It is all so easy until you need to pay wages, stock and rent

[wayno]

still i think they could put more effort into educating staff, the choice of clothing fabrics is so great now, its a hard task for the less experience to choose clothing to fit their activity, all the people you see using softshells and down jackets as raincoats....

[JoshT]

That's a shame! What will all the scouts boys and girls do?

Scouts have just changed their uniform supplier from Snowgum, guess they didn't want to be left exposed if the administrators can't sort things out. Snowgum will still sell all the badges and other stuff for the moment, they don't manufacture it, just retail, so there's not much risk in keeping it there.

[Amanda]

Kathmandu are clearly streaks ahead of the rest of their competitors at their business model. The others are very much trying to follow their every move (watch X-mas campaigns and play spot the difference with all of them). Does the market here really only want this type of retail, or are some companies and their execs too short of original and creative alternative strategies? It would seem Snowgum followed the model of retail Kathmandu perfected, but with much less firepower and a product that left them somewhat wanting. Whereas Kathmandu has invested quite a lot in design and R&D over the last year or two, I know that others in the sectors have cut back on design and product development…the gap will widen further between them and the also-rans..I say "buy" (shares that is, product on a case by case…). Your brothers father in law was a perceptive man and made a painful but probably sensible decision Wayno..differentiate or die, or at least be better at what the big guy is doing..

Hi Cam,

Have you noticed that Mountain Designs has gone down a different road to Kathmandu over the last 6 months? They have tried to tell the consumer that they are offering 'Everyday Value Prices'. The Xmas catalogue has a quite different feel to a Kathmandu catalogue. Plus a different feel to MD catalogues of old. http://issuu.com/mountaindesigns/docs/m ... _2013_aust. Your thoughts?

One challenge I have found as a MD Store Manager is the customer cry 'but it's not on sale'. We explain that our 'everyday value pricing' is competitive with other outdoor retailer's prices on comparable products - even when they are on sale. This is no secret, its on the front page of the Xmas catalogue. A lot of people on this forum are quite savvy with outdoor retailers and the various marketing strategies. But as you know many customers fall for the Kathmandu model and think they are getting a great deal. A higher price 'anchors' it in the customer's mind and then they think they are getting a bargain when it is 60% off.

Cheers
Amanda
MD Hobart Store Manager

[GPSGuided]

I hear that Snowgum has been saved. Stores will be restocked soon.

[Strider]

More details?

[GPSGuided]

That's all I heard. Expect restocking by mid-December. Sounded good to me. No info on who pitched in and what structure.

[wayno]

go to a kathmandu store when theres no sale. theres hardly anyone in it... go there when there is a sale, they are packed... some people are savy about pricing but still alot of people just wait for sales, so many retail chains use the policy of regular sales and people know a sale isnt far off, so they'll wait..

[wayno]

go to a kathmandu store when theres no sale. theres hardly anyone in it... go there when there is a sale, they are packed... some people are savy about pricing but still alot of people just wait for sales, so many retail chains use the policy of regular sales and people know a sale isnt far off, so they'll wait..

[GPSGuided]

I feel sorry for those who bought without discount. Deceit!

[blacksheep]

Kathmandu are clearly streaks ahead of the rest of their competitors at their business model. The others are very much trying to follow their every move (watch X-mas campaigns and play spot the difference with all of them). Does the market here really only want this type of retail, or are some companies and their execs too short of original and creative alternative strategies? It would seem Snowgum followed the model of retail Kathmandu perfected, but with much less firepower and a product that left them somewhat wanting. Whereas Kathmandu has invested quite a lot in design and R&D over the last year or two, I know that others in the sectors have cut back on design and product development…the gap will widen further between them and the also-rans..I say "buy" (shares that is, product on a case by case…). Your brothers father in law was a perceptive man and made a painful but probably sensible decision Wayno..differentiate or die, or at least be better at what the big guy is doing..

Hi Cam,

Have you noticed that Mountain Designs has gone down a different road to Kathmandu over the last 6 months? They have tried to tell the consumer that they are offering 'Everyday Value Prices'. The Xmas catalogue has a quite different feel to a Kathmandu catalogue. Plus a different feel to MD catalogues of old. http://issuu.com/mountaindesigns/docs/m ... _2013_aust. Your thoughts?

One challenge I have found as a MD Store Manager is the customer cry 'but it's not on sale'. We explain that our 'everyday value pricing' is competitive with other outdoor retailer's prices on comparable products - even when they are on sale. This is no secret, its on the front page of the Xmas catalogue. A lot of people on this forum are quite savvy with outdoor retailers and the various marketing strategies. But as you know many customers fall for the Kathmandu model and think they are getting a great deal. A higher price 'anchors' it in the customer's mind and then they think they are getting a bargain when it is 60% off.

Cheers
Amanda
MD Hobart Store Manager

Hi Amanda,

I saw the announcement with the new CEO. It will be interesting to see if you guys can make it work. When I bought Fairydown and started the first 5 stores I also tried the genuine price structure, but in NZ it proved too difficult as a) customer are largely trained to buy only on sale, and B) many people equate RRP with quality (it seems), so if you are cheaper "it mustn't be as good..."

I'm not a fan of photoshoot catalogues Amanda- your has models wearing make up etc, driven to a trail head, shot/ change outfit/ shot etc......it simply is at odds with the concept of being genuine. I think your marketing team should stick to one truth- if you pricing is genuine then so should all your marketing collateral. I'm pleased to say during my tenure as creative director at Macpac we never did "fake" photos- no models EVER. It has changed now (within weeks of my departure), but to me the companies such as Patagonia, Black Diamond and Millet that can tell authentic stories through actual customers and actual use are the only ones that are authentic.

Mountain designs would be better if you dropped that dreadful Wild Gear house brand. That is truly terribly made stuff, and has no place amongst the MD gear (get some truly talented designers/ a good design director- it will pay off!) and the Berghaus stuff. You guys have a good shot with your strategy if you also elevate your aesthetic, and be genuine in your marketing.

Cam

[wayno]

take a look at polartec, the north face, montane, marmot, rab, their ads are of people right in amongst it in the outdoors, some of it of people doing cutting edge stuff in the outdoors, and its surprising how some expeditions like the north face ones the gear isnt plugged that much, you just see the logos and a mention of the sponsors. they do stories and videos that arent putting the brand in your face , its more about what the athletes are doing. mind you if you know about conrad anker and jimmy chin you''l probably know they are sponsored by the North Face... of course not every brand has the money that the north face have to sponsor expensive expeditions but its a different line from straight photoshoots where minimal effort has been put into getting right into the back country..

[GPSGuided]

take a look at polartec, the north face, montane, marmot, rab, their ads...

Apple and oranges. Those are premium product manufacturers while Snowgum and MountainDesign are mid range retailers. Although having their own branded products, they are not at the premium end. They necessarily need a different marketing strategy.

[wayno]

yeah read my whole post, nowhwere do i say they need that marketing strategy, i'm showing the contrast, they are still making outdoor gear and as cam said md are at teh other end of the extreme with their advertising... i'm highlighting the big contrast in the way things are being done... md could as cam said make mroe effort to get into teh back country with hteir advertising , at present theya re so far removed from some other companies with their advertising its not funny...
kathmandu advertising is a bit more out there but its really for the backpacking brigade going away from first world countries rather than going that far into the back country.

[GPSGuided]

Ummm... Let me drop into a MD store today and see what's their latest.