The news was positive coming out of the Asolo/Lowe Alpine Groups annual sales meeting, held May 17-19 in Treviso, Italy. The global gathering was comprised of about 200 attendees and included 70% of the companys subsidiaries, as well as new distributors for Hong Kong and Iran.
According to Marco Zanatta, a co-owner of the Asolo/Lowe Alpine Group, footwear maker Asolo is already up 15% from last year, and is projected to grow at least 10% in 2008. Lowe Alpine, with its focus on packs and apparel, has grown 5% so far in 2007, and is expected to log a 7% increase by years end. Zanatta adds that Lowe Alpine is on track to grow another 5% in 2008.
“Asolo is an established company now,” explains Zanatta. “At Lowe, we are focusing on marketing and promotions. The potential of Lowe Alpine is bigger than that of Asolo, because the apparel market is bigger than the footwear market.”
To better accommodate Lowe Alpines expected growth, 1,000 square meters of office space has already been rented for the company, and a new office building-located in the same Italian village as Asolo-is now undergoing renovations and will be ready for use by the first quarter of 2008.
“Moving the [Lowe Alpine] business from the UK to Italy and establishing a new team was the first priority, and we did it,” says Zanatta. “Creating a cohesive apparel collection was next, and today the distributors are positive and focused. Now our priority is R&D and on-time delivery (which has been an issue in the past). Now that the apparel is clicking as of the beginning of 2007, we need to refine timing and delivery issues.”
Zanatta is quick to point out that despite a few industry rumors to the contrary, there are no plans to sell either Asolo or Lowe Alpine. “We are only looking for acquisitions, not for the sale of the company,” he states. “In the past five years, there has been a lot of movement in the industry [regarding mergers and acquisitions], so were not looking to buy anything right now. Were still working on consolidating Asolo and Lowe Alpine. Were interested in international brands, but only in the outdoor market.”
In terms of entering new markets, Zanatta has high expectations for Eastern Bloc locales including Latvia, Lithuania and the Ukraine. (Russia currently has two distributors, one each for Asolo and Lowe Alpine.)
Iran also figures into the picture, thanks to its population of 80 million-16 million of whom live close to mountains. The new Iranian distributor admits that while the countrys current business climate may not be ideal, “I am looking to the future. There is already great interest in hiking and mountain activities in Iran, and there is a growing demand for high-quality products.”
Not surprisingly, Zanatta believes that China offers a huge opportunity. “We entered the Chinese market three years ago, and have sold 5,000 to 6,000 pairs of boots,” he says. “Chinese consumers wont buy Chinese [technical outdoor footwear]. They want Italian or European product because they worry about quality!” He adds, “Beijing has very sophisticated outdoor stores that sell top brands including Lowa, Scarpa, Vasque and La Sportiva. China will eventually be the biggest market in the world. With a population of one billion, China now has 60 million people who [can be classified as] rich.”
On the product side, both Asolo and Lowe Alpine presented new, clean collections for Spring/Summer 08. Here is a directional overview.
Asolo Footwear: The focus is on fit and innovative materials and designs. Fun fact: in the U.S. market, 90% of Asolo footwear contains Gore-Tex; globally, the percentage is 85%. The line is divided into four segments. Alpine contains expedition/climbing product targeting a younger demographic. Backpacking, the core of the brands North American business, has the broadest-based user demographic. Hiking, which includes product for overnight travel and extended trips, is geared to a younger, broad-based user group. Access product is designed for “done in a day” and “go fast” users, generally ages 40 and younger, and very fit.
In the Alpine group, new products and technologies include two Automatic boots and a mid-cut approach shoe. In addition, the Powermatic is now being offered in a new mens narrow last. In the Access group, two models each have been added to the Enduro (day hiking/trekking) and Crosswalk (trail to city) collections. Also, the new Propulsion trail running program offers gender-specific lasts and a new outsole/midsole.
Lowe Alpine Packs: The focus is on mid-size and daypacks. Comfort features are key and include AirZone breathable backs that minimize contact areas to maximize airflow; Adaptive Fit hipbelts that provide better fit and comfort; and Torso Fit Centro, which adds height and chest depth adjustability. Many packs in the line are also being offered in womens-specific versions. A new side entry system allows access to the whole of the pack without having to place the pack down in mud or dirt.
Lowe Alpine Apparel: The focus is on the Active collection, comprised of versatile, multi-functional shells, mid-layers and base layers. The apparel line now boasts 138 SKUs-70 for women, 68 for men-and all key products offer sun protection technology. (Note: the U.S., Ukraine and Russia are the companys only markets not taking apparel. Ukraine is now testing product and reports a positive response. The U.S. market had previously offered the apparel, but later dropped it due to delivery problems.)
Overall, says Zanatta, “Were happy. Were committed to the business, we work hard, and were focused on both brands.”
