Jennifer Yauri
Billabong was founded on Australia’s Gold Coast in the year 1973 by surfer
and surfboard shaper Gordon Merchant and his wife Rena Merchant. The early days were
unfavorable with both of them designing board shorts at their home, cutting them out in
the kitchen table, and than carting the finished product to sell to the local surf shops.
Their business attracted people immediately with surfers drawn to the superior
functionality of the Billabong board shorts. The quality was also very durable because
Gordon was using his unique triple stich technique. The following step for the brand
introducing the local surfers to Billabong and incorporate them in the marketing of
Billabong. Later following was company sponsored contest and other special events.
In the 1980s Billabong had established their place in Australia’s surf culture,
and was ready for the brand to expand internationally. They first focused on expanding to
the North American market, which was success. Billabong sales increased in offshore
markets and licenses were granted in a number of countries that include New Zealand,
Japan, and South Africa. Additionally in the 1980s a new store was established in
Europe. During the 1990s the surf industry grew exceedingly and professional surfing
gained admiration. Billabong followed their loyal consumers into other board shops
markets, which include skate, snow, and wake, where they replicated their business
model.
Billabong also has restricted to capitalize on the growing global opportunities
in the board shops sector. In the mid 2000s the restructure set the company for public
offering. In August the company’s shares were publicly listed on the Australian Securities
Exchange. This resulted in giving the company greater momentum and the financial
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capacity to continue to expand the company. Seven months after the public float
Billabong demonstrated their growth plans with the addition of the Zipper sunglasses
brand, and four months later the merging Element Skateboard brand was created. The
successful addition of these businesses saw the company add to their stable brands in the
following years to come, with Honolua Surf Company established in January 2004.
Kustom footwear and Palmers Surf in September 2004, a controlling interest in
the beach culture airport retail business in November 2005, which was later, converted to
100% ownership. Nixon watches and accessories followed in January 2006. In just thirty
years Billabong went from being a kitchen table operation to a global fashion empire.
Additional businesses were created including the Element footwear range, and other
different branded retail stores in the world. During 2007 Billabong continued to build
their brand portfolio by acquiring specialist wetsuit brand Xcel and the girls swimwear
brand Tigerlily. In 2008 Billabong expanded their brand with the investment of the Sector
9 skateboard brand, and the DaKine premium board sport accessories brand. In 2009
Billabong entered the online market through the investment of American based board
sport retailer Swell.com, and the purchase of an interest in Australia’s Surfstitch.com.
In March 2010 Billabong increased their skate offers by signing a contract to
license the California based Plan B skateboard brand. This was followed in July 2010 by
the acquisition of the California RVCA brand, the finalization in September of the
acquisition of the West 49 retail chain in Canada and the finish acquiring of Australia’s
Jetty Surf, Surf Dive ‘n’ Ski, and the rush retail banners in November. Billabong
completed the sale of their West 49 retail chain in Canada in February 2014, and in
September 2014 Billabong completed the sale of their 51% stake in SurfStitch and their
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100% ownership of Swell to the association of investors which include SurfStitch
creators Justin Cameron and Lex Pedersen allowing Billabong to narrow their strategic
focus, invest in building their mono brand ecommerce and omni-channel businesses and
follow their strategic vision (“Company History,” n.d.). Currently the CEO for Billabong
is Neil Fiske.
Billabong offers a wide selection of products that are designed to accommodate a
variety of lifestyles. Their product range includes designs for beach lovers, surfers,
skateboarders, snowboarders, and fashion conscious consumers. The target market for
Billabong is, males and females consumers that range from 12-35 years old. Both genders
are targeted separately in a majority of their advertisements. Billabong wants to satisfy a
social image needed. They target individuals with a coastal, mountain, urban style.
They market and promote their brand internationally through successful
professional athletes, junior athletes, and events (“Corporate Overview,” n.d.). In 2010
Billabong launched a digital marketing campaign that featured a surfing microsite and
contest. Billabong worked with a boutique agency called Design Royale on the “I Surf
Because” campaign’s digital and creative components. The reason they launched this
campaign is because they wanted to engage their customers in social media. Although a
majority of Billabong’s target market is 12-35 years old there campaign targets surfers of
any age. Their main goal with this campaign is for them to gain new consumers
(Mahmud, 2010).
Gordon Merchant and his wife started making board shorts in there home and
selling their merchandise at local surf shops. Gordon than buried himself in his North
Burleigh factory and within the following years to come Billabong was established.
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Gordon was driven to provide the highest quality, best cut board short on the market and
Billabong achieved success during the early 1980s (“History,” 2009). As the company
grew Gordon started to create different merchandise other than board shorts. Billabong
now offers a men, women, boy, and girl selection. Billabongs merchandise assortment for
women: dresses, tops, graphic tees & tanks, pants, hoodies and fleece, skirts, shorts,
rompers and jumpsuits, sweaters, denim, jackets, outerwear, swimwear (wetsuits, board
shorts & rash guards, cover ups, bikinis, one pieces) and accessories (hats, scarves,
beanies, gloves, backpacks, luggage, handbags, wallets, sandals, socks, surfboards,
miscellaneous). Billabongs merchandise assortment for men: tees, shorts, shirts, tanks,
hoodies, fleece, sweaters, jackets, pants, denim, rash guards, outerwear, board shorts,
accessories (backpacks, luggage, hats, beanies, sandals, wallets, belts, socks,
miscellaneous). Merchandise assortment for boys: board shorts, tees, shirts, shorts,
