After fully reorganizing its distribution network in Europe and news deals signed in Korea and in Poland, Berghaus is banking on full expansion. Now owned by Pentland, the UK brand’s insular outlook is being overhauled.
This brand, which had previously focused mainly on the British market, has used Pentland’s connections in Europe in order to reorganize its network of distributors and increase its presence on the continent. It will use the same network as brands such as Speedo, Ellesse and Lacoste and will position itself on the medium to high price range for its outdoor apparel, footwear and accessories. It recently signed an exclusive distribution deal with Fordex in Poland, which has a network of about 100 specialist sports and outdoor retailers.
In South Korea, it has taken on E-land, the local distributor of Ellesse – another contact through Pentland – to tackle that market. E-land bought up the inventory of Berghaus’ former licensee in that country and will open 50 stand-alone doors this year. Aims are for 100 doors within three years. The Koreans have a strong outdoor market say officials at Berghaus, with an extremely variable climate, which makes them quite unique in Asia.
Back home, the brand’s first flagship store was opened in Newcastle, UK, in September, which served as a visual model for the Koreans. The company, which had a turnover of $100 million in the 2007 financial year, has been preparing for expansion by commissioning a global market study of the outdoor segment.
The study, made by a UK-based marketing company, showed that sales on the outdoor segment were growing globally. Growth was essentially stimulated by two groups: the «fresh air consumers», those demanding functional and strong performance products for traditional outdoor activities, and «cool air consumers,» those with a younger mindset who are looking for attitude and trend-inspired products to use in a large variety of activities. As a reaction, the brand has remodeled its product lines and has created «Extrem» for the fresh air consumer and «Ator» for the cool air consumer.
