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OUTDOOR RETAILER WINTER

MARKET 2014 PREVIEW

TRENDS, PERSPECTIVE & ANALYSIS • JANUARY 2014

38 • Outdoor Insight • January 2014

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By Lou Dzierzak

Founded in 1993, Mountain Hardwear is cel-ebrating its 20th anniversary this year. Over the last two decades, competition for market share and brand loyalty has increased signifi-cantly. Outdoor enthusiasts have more techni-cal apparel and equipment choices than ever

before. In order to protect its customer base and attract new audiences to the brand, Mountain Hardwear is embarking on a distinctive product and marketing strategy.

“The brand was born in Berkeley with a group of people that had a spirit that lives on with the brand today. They were people centered on doing things differently and better. That approach in the DNA of the brand serves as the foundation of how we approach our product promise,” says president Topher Gaylord. “We are absolutely focused on end-use functionality and performance. We try to take what we think is a totally dif-

ferent approach to solving those outdoor consumer problems.” At the high end of the market for technical apparel and

equipment, differentiating brands is becoming more difficult. It is a more competitive and crowded marketplace than it has ever been. “We’ve never had as many large-scale, well-funded brands. Brands can choose a point of distinction around design while employing all the same fabrics and technologies the other brands are using. Or you can use new technology while adopt-ing designs similar to everyone else,” says Robert Fry, direc-tor of merchandising and design. “We choose to use a unique technology perspective and subtly influence that with a slightly out of the mainstream aesthetic point of view that is unique to Mountain Hardwear.”

In addition to its design aesthetic, Mountain Hardwear has focused on proprietary technologies to differentiate the brand. “We think that having a distinct and strong design point of view is very important. The aesthetics of the product are becoming very important more so than they have been in the past,” says

BreakingTrail

Mountain Hardwear Follows its Own Path.

40 • Outdoor Insight • January 2014

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to understand that difference. In the long run those people are opinion leaders. It may take longer to get the masses away from their Gore addiction compared to the expert athletes.”

Gaylord adds, “Because we are a smaller sized business we can be more nimble in how we approach the needs of consumers.”

Mountain Hardwear is targeting an outdoor enthusiast involved in a wide range of recreational activities. From expert alpine mountaineering to backpacking and trail running, the brand is presenting product collections tailored to specific applications.

“Ten years ago consumers would define themselves by a specific sport. I’m a skier, climber or a runner. Fast forward to 2014. Now they are multi-sport consumers and looking for their products to have a tremendous amount of versatility,” says Gaylord. “The products have to work much harder at providing that consumer functionality across a wide range of activities. We will always have products designed for elite athletes that are pursuing the most challenging objectives in their perspective activities.”

Gaylord adds, “There’s no question the core of our market remains outdoor enthusiasts. People who love the activities they participate in and are inspired by performance based brands. They love to have fun and a great time outdoors.”

In addition to proprietary technical fabrics, Mountain Hardwear is also presenting its point of view in marketing messages. Harges suggests that today’s outdoor enthusiasts evaluate technical products differently than they did in the past. They are also more open to alternative thinking. “We are pushing back against the standard trope of outdoor industry storytelling. Hey look at this guy suffering on the mountain. You should buy our stuff. The world has changed. Hardcore outdoor sports as a route to status among your peers may not be there anymore,” says Harges.

Creative MarketingSocial media platforms play an important role in Mountain

Hardwear’s marketing communications strategies. “We are deeply engaged in social media to help people understand our product innovations. It’s not an easy battle but it’s not insurmountable or not worth doing. There is not a single day

that goes by that we don’t have a con-versation about how we talk about our products to consumers,” says Fry. “We believe in the performance prospect and the freedom that is afforded us by own-ing our technologies. We’re a somewhat small, scrappy brand. We are pretty innovative and fleet-footed in a way that some of the competition may not be.”

Although traditional advertising tools such as print advertising, public rela-tions and in-store point of sale remain important elements in the brand’s mar-keting plan, social media will be a major focus. “We are using a variety of ways to drive our message in addition to tradi-tional advertising. The best way to drive interest for new technologies is through credible third party reviews and through consumer social media feedback. In the

consumer world, social and viral marketing is becoming a primary driver of decision-making. We know that peer group influencers is really what is influencing people,” says Gaylord.

“Brands no longer control the avenues of information in any realm. In some ways it is easier for a small market share tech-nology player to get to higher market share faster because there are resources for that information to bubble up from credible sources,” says Harges. “What’s empowering is that it’s no longer a function of dollars. It’s now more a matter of smarts and creativity. We really believe that if we can create messages that our target audience enjoys and wants to share we will build brand awareness in a high engagement way.”

Gaylord continues, “We think consumer reviews, feedback, forums and blog posts are the great flattener in the outdoor industry. Now more than ever new technologies will come to light virally if they work better. Consumers are more skepti-cal of big brand overt advertising than they ever have been before. They are more influenced by peer-to-peer reviews, independent blog posts and just what their friends are recom-mending that they buy. We think that’s a positive thing for smaller brands that are focused on different and better as part of their brand promise.”

Mountain Hardwear’s strategy of using proprietary tech-nical fabrics, innovative product design and cutting edge marketing tools will provide a clear point of difference from competitors. “I am excited about the advances in textile tech-nology and material innovation. There is a tremendous oppor-tunity to use different textile combinations to create greater versatility for consumers. We are going to see a real blending of fabric and material to create the ultimate consumer experi-ence with product,” says Gaylord.

Another key competitive advantage may be the resources of Columbia Sportswear, Mountain Hardwear’s parent company. Mountain Hardwear was acquired by Columbia in 2003. “We’ve found areas where we can benefit from shared services with Columbia’s infrastructure. We get tremendous operational support, supply chain sourcing, IT, human resources, logistics and finance support,” says Gaylord. “Those resources allow us to invest more in our product creation, design, merchandis-ing and marketing.

“Being a part of Columbia has been a tremendously positive experience for Mountain Hardwear,” he adds. “We keep the brands distinct and differentiated for the consumer from a brand promise and product standpoint. We also benefit from the financial stability of one of the strongest outdoor compa-nies in the world.” O

Left: The Alchemy Technical Shell uses Mountain Hardwear’s proprietary Dry Q.Elite waterproof breathable fabric.

Right: The Phantom features proprietary Q.Shield Down insulation.

Topher GaylordPresident

Robert FryDirector of Merchandising and Design