Deuter has only been around in the U.S. for a little over two years, but they have been giving many entrenched pack companies a run for their money. This may be because Deuter has been around for so long in Europe, and they have built in production efficiencies – and flexibilities — that most start-up pack companies could only dream of.

Deuter USA’s division president Pat Loomis, in an exclusive interview with BOSS, explained some of the strategies behind their growth.

Deuter USA has just consolidated their outdoor and cycling sales management positions into one, which is now filled by Keith Patterson, but the sales teams will remain separate. Loomis acknowledges that these two markets present very different challenges.

“For outdoor retailers backpacks are a key item, one of their bigger ticket items, while bicycle dealers sell packs as an accessory – an add-on to a bike purchase. We have the flexibility to deal with both needs”, said Loomis.

Loomis began his career in the outdoor industry with Lowe Alpine in 1978. “Backpacks are what I cut my teeth on in the industry”, he said. “I wouldn’t say my first love, but I definitely have a place for them.” Deuter tried for years to find a traditional importer – distributor relationship, until they finally asked Loomis to draw up a business plan for the U.S.

“I found that the market couldn’t bear three margins – one for Deuter, one for the importer, and one for the retailer. So, I suggested that they start an American subsidiary. That’s when they offered me a job and I came out of retirement,” he said. “Now we can offer the top-end packs to retailers at a competitive price.”

Part of the reason for Deuter’s success is the flexibility built into their production. The company places orders to their Vietnam factory 11 months per year, and ships most orders within 48 hours of receipt. Loomis said that their biggest competitor on the bike side of the market has become, “very aggressive with their pre-season orders. Retailers don’t need to worry about that with us. For September, our ASAP orders were about 90% of out business, and we can handle that.”

Deuter is also moving into a new warehouse/office facility of over 3,000 sq. ft., which they hope will be adequate for next two years. Along with the move, they have brought in a full-time customer service manager.

“Our growth the past couple of years has made it necessary to have better communication with our customers”, said Loomis. North American sales are less than 5% of Deuter International’s revenues, but Loomis sees it growing. Their target is to reach 450 retail accounts next year with 30-40% growth in net sales.