Once upon a time in the late 1960's, two surfer dudes were living the good life around the legendary surf spot Bells
Beach near Torquay in southern Australia. In between surfing sessions,
beers, and tins of baked beans, Alan Green and John Law began making
board shorts. They wanted to rid their lives of the uncomfortable,
impractical surfing shorts available at the time. The business was
funded with a $1,900 loan from Green's father. Word of mouth grew about
these boardies and their little concern gained momentum. The pair also
created sheepskin boots they called Ugg Boots (nice to wear after a
surf in freezing conditions) and began selling those. Green and Law got
their timing right, arriving in the marketplace just as surfing culture
was getting widespread mainstream attention. Following on from the 1959
movie Gidget and films such as The Endless Summer promoted the sun,
sand, surf, and sex lifestyle, and a growing army of wannabes wanted to
feel a part of this exclusive club, regardless of whether or not they
surfed. Equipment and fashion for this market was primitive, so there
was plenty of scope for new products and fashion. Quiksilver
had a good idea of what their customers wanted because Green and Law
wanted it too, a better wetsuit, a better surfboard, boardshorts with
maximum movement, and a cool sweatshirt to wear after a surf. In 1973,
the company became known as Quiksilver, a business that has become the
biggest surfwear brand in the world, valued at close to $1.5 billion.
For three decades the company has enjoyed annual growth of 25 percent.
A
big key to the success of Quiksilver has been its roots in surf culture
and its sponsorships of top surfers, snowboarders, skateboarders, and
surfing events. Quiksilver has the likes of worldchampion surfer Kelly
Slater and skateboarder Tony Hawk on its sponsorship books. The company
has also cleverly gone to great lengths to distance itself from
mainstream retailing and advertising campaigns.
Initially,
Quiksilver sold its products locally, then to surf shops in other parts
of Australia. As the company grew, Quiksilver sold licenses to other
parts of the world. In 1976, Quiksilver launched overseas when champion
surfer Jeff Hakman took twenty pairs of boardshorts back to the United
States to sell. Hakman was so keen to get the U.S. license for
Quiksilver he is reported to have eaten a paper doily, at Green's
request, during a 1976 drinking-session dare in Torquay. He ate the
doily and got the license. Hakman brought in his friend and fellow
surfer Rob McKnight, now chairman of Quiksilver. When Greenie first
gave us the right to do Quiksilver in America, it was really just meant
to be a summer project,says McKnight. Live near the beach, chase girls,
surf, have some fun. We didn't have a business plan, we didn't have
this whole thing outlined and projected. We just took it as it came.But
is building a business that easy? You get the feeling that this
laid-back ethos is an essential part of the brand strategy of a
surfwear company. Surfers understand the importance of timing,
patience, strategy, competition, and personal performance, but they
tend to talk more about the metaphysical aspects of surfing than about
the aggression, adrenaline, and multi-skilling needed to be a good
surfer.
Their natural competitiveness has surely been a part of
the growth of the businesses, but the company spin is all about having
board meetings on catamarans in exotic locations, opening hip new
stores in Times Square with Malibu surfboards all over the ceilings.
Quiksilver
listed on the New York Stock Exchange in 1986 and forged ahead. Green
and Law keep their hand in the Australian operations, introducing hit
lines such as Roxy, until 2002 when they sold the last of their rights
to the Quiksilver name for $125 million to the U.S. operations
Quiksilver International, now based in Huntington Beach, California.
Law and Green still retain a 6 percent share in the company and have
profit share agreements in place. Law and Green still live in
Australia's surfing capital Torquay, at least for part of the year,
when they are not off skiing or surfing around the world. At every
stage, they have been quick to promote the fact that surfing still
takes priority over work and, now that they are in their sixties, they
are living every baby boomer's dream: surfing and skiing around the
world with a combined fortune of more than $400 million. Alan and John
are still regularly seen at the Torquay Hotel sinking beers, thirty
years later. "My first passion is not working",says Green. "You are a
long time dead, and I don't want to spend my life waiting for it. They
can afford to relax,”owning 6 percent of a company worth nearly $1.5
billion leaves a person with plenty of options. By Emily Ross &
Angus Holland, exclusive online extract from 100 Great Businesses & the minds behind them. Buy online
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QUICKSILVER - Don't underestimate surfer dudes 
Tuesday, 01 August 2006 
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