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As a surfer and surfer shaper himself, Gordon knew that board shorts needed to be functional and durable and he devised a triple stitching technique that was an immediate hit with surfers.
From the outset, Gordon decided that the best way to promote Billabong was to introduce it to the most successful local surfers and then to incorporate them into the marketing plan. This became a pillar of Billabong's marketing activities and today the company's brands are marketed and promoted internationally through association with high profile professional athletes, junior athletes and events.
From the commencement of business back in 1973, Billabong's values have remained remarkably consistent. These include brand protection and enhancement, the manufacture of design-relevant and functional products, marketing in the core board sports channels, the professional development of staff and ongoing customer service and relationships.
By the 1980s, Billabong had firmly established its place in Australian surf culture and was ready for international expansion. The initial focus was on the large North American market and, again, the brand enjoyed success.
Sales began to grow in other offshore markets, licenses were granted in a number of territories including New Zealand, Japan and South Africa, and in the late 1980s a new beachhead was established in Europe.
Through the 1990s the surf industry grew exponentially and professional surfing gained a newfound respectability. The company also followed its core customers into other board sports markets, including skate and snow, where it replicated its proven business model. By the close of the decade, Billabong had been restructured to capitalise on the growing global opportunities in the board sports sector.
The restructure set the foundation for an initial public offering in Australia in mid 2000. The move saw the company's shares publicly listed on the Australian Stock Exchange in August of that year. This gave the company greater impetus and the financial capacity to grow the business.
Seven months after the public float the company demonstrated its growth plans with the acquisitions of the Von Zipper sunglasses brand and, four months later, the emerging Element Skateboards brand.
The successful integration of those businesses saw the company add to its stable of brands in following years, with Honolua Surf Company acquired in January 2004, Kustom footwear and Palmers Surf in September 2004, a controlling interest in the beachculture airport-retail business in November 2005 and Nixon watches and accessories in January 2006.
Other businesses were also established, including the Element footwear range, the California-based Beachworks retail business and various branded concept stores around the world.
In 2007 the Group also added the specialist wetsuit brand Xcel and girls swimwear brand Tigerlily to its brand portfolio. This was followed in 2008 with the acquisition of the Sector 9 skateboard brand and the DaKine premium board sport accessories brand. By that time, total sales had grown from approximately $110 million in 1999 to $1.35 billion in the 2007-08 financial year.
Today, Billabong International's products are licensed and distributed in more than 100 countries and are available in approximately 10,000 doors worldwide and employs approximately 3500 full time staff. Products are distributed through specialised board sports retailers and through the Company's own branded retail outlets. The majority of revenue is generated through wholly owned operations in Australia, North America, Europe, Japan, New Zealand, South Africa and Brazil.
Perhaps the business's most remarkable quality is that through all this growth, over many years, it has retained to its brand integrity.
Max de la Rosa, the General Manager of Billabong in Peru and Chile, summed this up when he said, "This uniquely Australian brand has come to symbolize the youthfulness and daring which Australian surfing represents to people in Latin America."
Source: Case study written from information found on Billabong's website.
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