Competition for Volcom (VLCM)

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Volcom (VLCM)

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VLCM » Topics » Competition

These excerpts taken from the VLCM 10-K filed Mar 16, 2009.

Competition

We compete globally with companies of various size and scale, many of whom are significantly larger than we are and have substantially greater resources than we have. We believe our most significant direct competitors currently include Quiksilver Inc., including the Quiksilver, Roxy and DC brands; Billabong International Limited, including the Billabong and Element brands; Burton; and Hurley. We also compete with smaller companies that focus on one or more boardsport segments. The boardsports market is susceptible to rapid changes in consumer preferences, which could affect acceptance of our products.

We compete primarily on the basis of successful brand management and recognition, marketing and product design, style, performance and quality. We believe that we compete favorably with our competitors on these bases, although because several of our competitors are public companies, or are owned by public companies, with greater resources than we have, they have been able to allocate these resources toward brand building and marketing programs that are greater in scope and size than ours. In order to further our success and continued growth we believe it will be necessary to:

•

maintain our reputation as a popular lifestyle brand among the skateboarding, snowboarding and surfing community and others who associate themselves with the action sports youth lifestyle;

•

continue to develop and respond to global fashion and lifestyle trends in our target market;

•

advance our brand as an authentic, “anti-establishment” brand while continuing to grow as a global business;

•

design stylish, high-quality products at appropriate prices for our target market; and

•

continue to convey our lifestyle message to our target market worldwide.

Competition

SIZE="2">We compete globally with companies of various size and scale, many of whom are significantly larger than we are and have substantially greater resources than we have. We believe our most significant direct competitors currently include
Quiksilver Inc., including the Quiksilver, Roxy and DC brands; Billabong International Limited, including the Billabong and Element brands; Burton; and Hurley. We also compete with smaller companies that focus on one or more boardsport segments. The
boardsports market is susceptible to rapid changes in consumer preferences, which could affect acceptance of our products.

We compete
primarily on the basis of successful brand management and recognition, marketing and product design, style, performance and quality. We believe that we compete favorably with our competitors on these bases, although because several of our
competitors are public companies, or are owned by public companies, with greater resources than we have, they have been able to allocate these resources toward brand building and marketing programs that are greater in scope and size than ours. In
order to further our success and continued growth we believe it will be necessary to:

•

maintain our reputation as a popular lifestyle brand among the skateboarding, snowboarding and surfing community and others who associate themselves with the action
sports youth lifestyle;

•

continue to develop and respond to global fashion and lifestyle trends in our target market;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">

•

advance our brand as an authentic, “anti-establishment” brand while continuing to grow as a global business;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">

•

design stylish, high-quality products at appropriate prices for our target market; and

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">

•

continue to convey our lifestyle message to our target market worldwide.

FACE="Times New Roman" SIZE="2">Principal Customers

In 2008, 2007 and 2006, 28%, 33% and 44%, respectively, of our product revenues
were derived from our five largest customers. Other than Pacific Sunwear, which accounted for 16%, 18% and 26% of our product revenues in 2008, 2007 and 2006, respectively, no single customer accounted for more than 10% of our product revenues
during 2008, 2007 or 2006. We believe that revenues from our five largest accounts, including Pacific Sunwear, will continue to decrease as a percentage of our overall revenues as we continue to diversify our account base.

STYLE="margin-top:18px;margin-bottom:0px">Credit and Collection

We extend credit to our
customers based on an assessment of a customer’s financial condition, generally without requiring collateral. To assist in the scheduling of production and the shipping of products within our snow category, consistent with industry practice, we
offer customers discounts for placing pre-season orders and extended payment terms for taking delivery before the peak shipping season. These extended payment terms increase our exposure to the risk of uncollectible receivables. However, throughout
the year, we perform credit evaluations of our customers, and we adjust credit limits based on payment history and the customer’s creditworthiness. We continually monitor our collections and maintain a reserve for estimated credit losses based
on our historical experience and any specific customer collections issues that are identified. While such credit losses have historically been within our expectations and reserves, we cannot assure you that we will continue to experience the same
credit loss rates we have experienced in the past.

These excerpts taken from the VLCM 10-K filed Feb 29, 2008.

Competition

We compete globally with companies of various size and scale, many of whom are significantly larger than we are and have substantially greater resources than we have. We believe our most significant direct competitors currently include Quiksilver Inc., including the Quiksilver, Roxy and DC brands; Billabong International Limited, including the Billabong and Element brands; and Burton. We also compete with smaller companies that focus on one or more boardsport segments. The boardsports market is susceptible to rapid changes in consumer preferences, which could affect acceptance of our products.

We compete primarily on the basis of successful brand management and recognition, marketing and product design, style, performance and quality. We believe that we compete favorably with our competitors on these bases, although because several of our competitors are public companies with greater resources than we have, they have been able to allocate these resources toward brand building and marketing programs that are greater in scope and size than ours. In order to further our success and continued growth we believe it will be necessary to:


	•	maintain our reputation as a popular lifestyle brand among the skateboarding, snowboarding and surfing community and others who associate themselves with the action sports youth lifestyle;

	•	continue to develop and respond to global fashion and lifestyle trends in our target market;

	•	advance our brand as an authentic, “anti-establishment” brand while continuing to grow as a global business;

	•	design stylish, high-quality products at appropriate prices for our target market; and

	•	continue to convey our lifestyle message to our target market worldwide.

Competition

We compete globally with companies of various size and scale,
many of whom are significantly larger than we are and have
substantially greater resources than we have. We believe our
most significant direct competitors currently include Quiksilver
Inc., including the Quiksilver, Roxy and DC brands; Billabong
International Limited, including the Billabong and Element
brands; and Burton. We also compete with smaller companies that
focus on one or more boardsport segments. The boardsports market
is susceptible to rapid changes in consumer preferences, which
could affect acceptance of our products.

We compete primarily on the basis of successful brand management
and recognition, marketing and product design, style,
performance and quality. We believe that we compete favorably
with our competitors on these bases, although because several of
our competitors are public companies with greater resources than
we have, they have been able to allocate these resources toward
brand building and marketing programs that are greater in scope
and size than ours. In order to further our success and
continued growth we believe it will be necessary to:


	•	maintain our reputation as a popular lifestyle brand among the skateboarding, snowboarding and surfing community and others who associate themselves with the action sports youth lifestyle;

	•	continue to develop and respond to global fashion and lifestyle trends in our target market;

	•	advance our brand as an authentic, “anti-establishment” brand while continuing to grow as a global business;

	•	design stylish, high-quality products at appropriate prices for our target market; and

	•	continue to convey our lifestyle message to our target market worldwide.

This excerpt taken from the VLCM 10-K filed Mar 14, 2007.

Competition

We compete globally with companies of various size and scale, many of whom are significantly larger than we are and have substantially greater resources than we have. We believe our most significant direct competitors currently include Quiksilver Inc., including the Quiksilver, Roxy and DC brands; Billabong International Limited, including the Billabong and Element brands; and Burton. We also compete with smaller companies that focus on one or more boardsport segments. The boardsports market is susceptible to rapid changes in consumer preferences, which could affect acceptance of our products.

We compete primarily on the basis of successful brand management and recognition, marketing and product design, style, performance and quality. We believe that we compete favorably with our competitors on these bases, although because several of our competitors are public companies with greater resources than we have, they have been able to allocate these resources toward brand building and marketing programs that are greater in scope and size than ours. In order to further our success and continued growth we believe it will be necessary to:


	•	maintain our reputation as a popular lifestyle brand among the skateboarding, snowboarding and surfing community and others who associate themselves with the action sports youth lifestyle;

	•	continue to develop and respond to global fashion and lifestyle trends in our target market;

	•	advance our brand as an authentic, “anti-establishment” brand while continuing to grow as a global business;

	•	design stylish, high-quality products at appropriate prices for our target market; and

	•	continue to convey our lifestyle message to our target market worldwide.

EXCERPTS ON THIS PAGE:

10-K (2 sections)	Mar 16, 2009

10-K (2 sections)	Feb 29, 2008

10-K	Mar 14, 2007

Volcom (VLCM)

VLCM » Topics » Competition

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