Eider has taken over the global license for Killy, the upmarket skiwear brand, which was previously handled by Nevica Technical Sport System of the UK. The contract, which starts off with the Fall/Winter 2007/08 collection, is for 10 years with an option for renewal. It gives the French outdoor clothing company exclusive global rights for the design, development and sale of clothing named after the legendary French ski champion, Jean-Claude Killy.
Eider says it intends to develop a better marketing strategy and a strong branding image that will highlight the technical aspects of the collection. It aims to raise the annual turnover generated by the Killy line, which has been stagnating lately at around €10 million, to around €25 million within the next five years.
Back office, industrial management and administration functions will be managed by the same teams for Eider and Killy. While sales and marketing will be handled separately, the French company hopes to benefit from synergies with the Killy brand for the international development of the Eider brand itself. Eider makes an annual turnover of €30 million, 50 percent of which is generated from exports.
Killy’s main markets are currently the UK, Switzerland and the USA, and it is also distributed in Russia, Italy and Austria. To service the British market, which was previously covered for Killy by Nevica directly, Eider plans to open a subsidiary in the London area for both Eider and Killy, although sales of the two brands will be handled separately: Jean-Christophe Jacob, formerly with Salomon, has been employed as sales director for Killy in the UK market. Like Yohann Patiral, UK sales director for the Eider brand, he will report to Eric Schierl, export manager of Eider, who is now acting also as sales director for Killy.
Eider has also employed a director of marketing for the Killy line, Melanie Fistor, who has joined the company from Dynastar, running a team of four people. Eider plans to spend 15-20 percent of turnover on marketing campaigns. Jean-Michel Herrault, managing director of Eider, wants to turn Killy into a more modern, vibrant and sleeker upmarket label and has already changed the logo. The product will be more technological and ergonomic, using innovative laser cutting techniques. It will also be more travel and sportswear-oriented. The price positioning will remain in the €600-850 range at retail.
Formerly eyed by another former licensee of Killy, the Rossignol Group, as a way to develop its own apparel business before its acquisition by Quiksilver, Eider recently got a new minority shareholder to back up its future development. A French investment fund, Rothschild-Paris-Orléans, bought 15 percent of its equity, investing more than €4 million into the company through an equity increase. Eider’s other two main shareholders are the Euro Knights fund, which continues to control the majority of the shares, and BNP Paribas Développement.
Meanwhile Eider, which is very present in Asia, particularly in South Korea, has signed a new exclusive licensing contract for the Eider brand in South Korea with a local company called K2, which has nothing to do with the American company by the same name. It is negotiating a contract with an importer for Russia.
