As a sunglasses/goggles/apparel company appealing primarily to the extreme sports market, Von Zipper is swimming in a field of competitors offering the exact same products. From Quiksilver to Hurley, or Electric to Spy, or even Anon to Dragon, Von Zipper has to maintain quality and performance in order to retain loyal customers, and even steal some away from the others listed above.
Unlike many major corporations selling copious amounts of products(Nike, Adidas, Microsoft), Von Zipper has three things to sell. With a very defined business model, VZ went international back in 2002 and haven't turned back since. Their product life cycle consists of development, production, distribution, and sale. Seems simple right? Now try tossing in advertising, salaries, promotions, and sponsorships... Not so easy huh.
Lets take a look at Electric for a second.
Their Website sucks! It is really awful actually, and I can imagine why. They offer a superior product, but focus too much of their time and money on product development and production to worry about how savvy and visually appealing their website is. A recent acquisition of Volcom, Electric specializes in sunglasses and goggles manufacturing and distributing.
Now let's take a look at how similar some of their products are...
Insanely similar right??
Now check out these motocross goggles offered by Spy Optics compared to Von Zipper...
Spy Optics offers an identical product to consumers world wide. If you didn't personalize what was stated earlier about this market, I hope these pictures help. The market for moto/snow/sunglasses and goggles is extremely horizontal, and the barriers to entry are slim to none. There are new brands exposed yearly, offering up products to trade shows, conferences, and expositions in the hope of becoming the next new brand of a Fatherly company like Quiksilver, Hurley, or Billabong.
Since both competitors, as well as VZ were all acquired companies under huge brands deeply embedded in the surf/snow/moto community, the financial reports are pretty hard to come by. It will take another week of some extensive research to weed out the companies reports and filings but it will be done. That being said however, each product has its own loyal following. For example, I rock the Von Zipper Clutch sunglasses everyday. They pose an attitude which may be "too cool for school", but when it comes to goggles I shred in nothing but the Electric EG1s. They offer durability and comfort while giving the rider a style so swag that the majority of riders on the mountain can't overcome or match.
Vince,
ReplyDeleteI think you could find so many competitors for VZ. As you mentioned in your post, there are so many different companies that offer similar products. One way that might help you narrow down the competitors that are directly associated with VZ is to look at their financials. Similar market caps, revenues, etc. are good indicators of close competitors. Yahoo! Finance and a book in the library called "Financial Ratios and Indexes" are both great resources for gathering financial information on both VZ and the industry's competitors.