Rumors have been flying for weeks about a mysterious “Brand Six” that was about to be added to the stable at GBMI. Speculation ran from GBMI buying an athletic performance brand to acquiring a skate shoe company. A section of their new headquarters in Santa Barbara was even secretively named Brand Six. Even insiders did not know what was going on.

Now the mystery is solved!

In an exclusive interview with Sports Executive Weekly on Saturday, Global Brand Marketing CEO Killick Datta revealed he had acquired the rights to the Pony brand and would be creating a new line for Spring 2004.

After a long night cheering on the Indian Cricket team and early morning dad duties at the zoo, Datta graciously took time with us to explain his vision of the new Pony brand and how it fits in with his overall strategy.

“Pony was a major brand when I was growing up”, said Mr. Datta. “Pony’s core business was product with attitude – it was not a performance brand”.

“Pony fits well with what we do,” he continued. “We are Rock ‘n Roll Sports”

Global Brand Marketing, Inc. and The Firm jointly announced the formation of a new entity, Pony International LLC, that will own the Pony brand on a global basis. As the owner of a majority interest in the new entity, GBMI will essentially become the general manager of the Pony brand and will direct activities such as design, production, distribution, marketing, public relations, human resources, finance and legal.

The Firm will continue to provide marketing services for Pony including assisting with such activities as brand imaging, strategic marketing and certain promotion activities.

Global Brand Marketing, the privately held company based in Santa Barbara, is a multi-branded footwear company with global footwear licenses for XOXO, Diesel, Nautica and Mecca, and ownership of Dry-Shod. Chairman and CEO Killick Datta founded the company in 1996.

The Firm, headquartered in Beverly Hills, CA, is an entertainment and brand management company with clients that include Vin Diesel, Robert De Niro, Cameron Diaz, Limp Bizkit, Korn, Dixie Chicks and Enrique Iglesias. The Firm merged with Artist Management Group in 2002 to become the largest talent management company in music, film and television.

The Firm originally acquired the rights to the then-dormant Pony brand in 2001. The Firm, which was previously 100% owner of Pony International, Inc., will receive a substantial cash component as well as retain a significant equity interest in Pony International, LLC. The Firm executives Dave Baram and Steve Bannon will sit with Jeff Kwatinetz on the Pony International Executive Committee along with Killick Datta and other executives from GBMI.
The Spring/Summer 2004 collection will retain “the athletic history and mystique of the brand while mixing it with a gritty street vibe”. The new collection will be presented at GBMI’s global sales conference in June 2003.

Datta went on to say that “we were offered lots of performance brands, but we were looking for one with true heritage”. The new brand will build on the unique heritage of Pony and bring a new fashion sensibility to athletic footwear. “The Brand will be very marketing oriented”, said Datta.

Pony will be distributed through some of GBMI’s current Fashion specialty retailers, as well as athletic specialty retailers who can sell fashion, such as Finish Line and Footaction. Said Datta, “The plan is to start narrow and grow slowly”. He also sees better regional chains as a near-term target.

GBMI’s major fashion brand, Diesel, did $200 million in only 900 doors in the U.S. — $280 million globally – and does not sell a single athletic specialty store. Pony is expected to have a similar tight distribution pattern, but will work with the specialty footwear chains to grow the brand slowly.

Datta declined to give a volume projection, but it is clear from the conversation that Diesel-like numbers are his goal.
Datta described the difficulties the large brands face “trying to please every customer from age 7 to 70, in all genders and in countries over the world”. He is committed to his strategy to build a strong stable of brands that each address a specific narrow portion of the fashion spectrum, allowing for diversification and flexibility to move with the market.

“GBMI’s goal is to be what Nestle is to food or what P&G is to household products”. Mr. Datta described the other GBMI brands as follows:

    Diesel: “Athletic Inspired Club Fashion, aimed at specialty shoe stores”

    XOXO: “Sexy feminine fashion”

    Mecca: “Americana Urban”

    Nautica: “Americana Classic

    Dry Shod: “Luxury Classic”

Asked about the relationship with The Firm, Datta said, “They are a minority owner in Pony International LLC and will provide marketing services for the brand. At this point they will not be involved with marketing the other GBMI brands.”

GBMI sets up its sales and marketing groups separately and Mr. Datta said they would announce the team very soon. Addressing our speculation in this newsletter a few weeks ago, the CEO said they will hire a completely new sales organization to focus on Pony.

It is expected that ACI International will liquidate any current inventory.