The Timberland Company has acquired certain assets of GoLite LLC, including trademarks, for an undisclosed amount and will introduce a new line of trail running footwear under the GoLite brand. Under the arrangement, GoLite footwear will be managed out of Timberlands Stratham, New Hampshire headquarters and GoLite apparel, equipment, and accessories will continue to be led by GoLite founders Demetri and Kim Coupounas, operating as an independent company out of Boulder, Colorado.
Perhaps the biggest question about the deal is the trademark acquisition and subsequent licensing agreement that GoLite signed for its own brand. Sources close to the deal told BOSS that Timberland did not want to license the brand from GoLite for one main reason. If GoLite footwear takes off as a brand and becomes the companys gateway into specialty retail, Timberland wanted to own the trademarks. As a public company, Timberland is essentially protecting itself.
In addition, Timberland has hired Bill Dodge, former national sales manager for Dunham, to lead the GoLite footwear division. Dodge will report to Gary Smith, Timberlands VP of outdoor products. Timberland essentially started from scratch and attempted to re-invent the trail running shoe. During a conference call with The BOSS Report, Mr. Smith said that Timberland chose to buy the GoLite trademarks, because they were so confident with the new project and the power and authenticity of the GoLite brand.
This acquisition furthers Timberlands multi-brand strategy that started with the launch of Mion at OR Summer Market last year (See BOSS_0533) and continued with the acquisition of Smartwool in November of last year (see BOSS_0546). This now gives Timberland four brands addressing four different niches in the outdoor market. Timberland Outdoor Performance will cater to recreational outdoor and outdoor lifestyle customers, while GoLite and Mion will cater to the enthusiast customers. Smartwool as a brand will be more versatile with elements of both demographics in distribution and market positioning.
The positioning of these brands covers trail running, hiking & backpacking, and watersports niches within the outdoor industry, but there are still some outdoor communities that are not served by a Timberland-owned brand – namely climbing and mountaineering. “We are very conscious of the notion that one size does not fit all,” said Mr. Smith. “We are always looking at opportunities ”
Timberland management told BOSS that distribution will be relatively narrowly defined in the specialty markets. Neither the new GoLite nor the Mion brands are likely to show up in Timberland retail stores or outlets. However, GoLite will offer Timberland a much desired point of entry into both specialty outdoor retailers as well as specialty running retailers. Timberland has developed a very specific demographic target for the GoLite brand of footwear and is prepared to be patient and build the brand awareness and brand image correctly. The company has acknowledged that doing this will take a brand-specific team in both design and sales, from the main office to the field. While the behind the scenes sales and product development teams are in-place already, Mr. Dodge said that the sales force is still to be determined.
“We have developed a very specific consumer target that addresses the sky running and ultra-marathon enthusiasts,” said Dodge. “Serving this target will require experts in the field and we will have a team that services that in the best possible way.”
For GoLite, the deal appears to be even more interesting, especially since the company is now licensing its own name from Timberland. However, according to GoLites co-founders, Demetri & Kim Coupounas, all of the bases are covered. While the full details of the licensing arrangement were not disclosed, it appears that GoLite has an indefinite right to license the name for anything above the ankles, including equipment. “There were countless great positives and negligible negatives to the deal,” said Demetri Coupounas, who also serves as GoLites president. “We wouldnt have done this if we were concerned at all about losing the brand name.”
As far as future product extensions are concerned, GoLite and Timberland have covered the bases as well. “Timberland knows full-well which categories we will be getting into in the near future,” said Mr. Coupounas. “The only overlap we had with the footwear line was down booties, and you know, I think we can live without down booties.”
The up-side for GoLite is clearly in name recognition. From the consumers viewpoint, the footwear, apparel, and equipment lines will be completely seamless. The two companies will be working together on design in order to coordinate aesthetics and performance characteristics and facilitate cross-merchandising. With Timberlands focus on outdoor and running specialty, this could give GoLite an in-road into independent running dealers. Currently, specialty running retailers only make up a “small single-digit” percentage of GoLites business, so there is plenty of room to expand without losing sight of the brands core outdoor retail base.
“For so many running retailers, their apparel and accessory lines are really anchored by their footwear selection,” said GoLite CEO Kim Coupounas. “This certainly gives us an opportunity, and trail running is the fastest growing part of our business.”
Not only is GoLite excited about this deal with Timberland, but the company also is anticipating this season to be their biggest since the brand launched seven years ago, with an all new pack line and a re-designed apparel line. Demetri Coupounas said that the 20 retailers who have previewed the new products have decided to buy “much deeper into the line than ever before.”
Editors Note: For a preview of Timberlands new GoLite footwear line, look for the August issue of Specialty Market Retailer magazine.
