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WHAT’S NEXT FOR QUIKSILVER
CEO Bob McKnight speaks out on quiksilver’s global expansion, acquisitions and retirement
By Tiffany Montgomery
Published: November 08, 2007
Quiksilver, Inc. Chief Executive Officer and Chairman Bob McKnight Jr. is passionate about the action sports industry and his company, which he built into the global leader of the niche with $2.5 billion in annual sales.
He’s headed Quiksilver in Huntington Beach for more than
30 years, and he has no plans to retire soon.
McKnight spoke with OC METRO Business Magazine’s Tiffany Montgomery about Quiksilver’s push into mainland China, what the next 5 years look like for his company and why he hasn’t cashed out and retired. One topic was off limits: the company’s Rossignol ski business. The company had been exploring strategic initiatives for Rossignol hard goods at the time of the interview. Sub-sequently, Quiksilver announced it would keep Rossignol and sell Cleveland Golf.
China
Four years ago, Quiksilver began opening stores in mainland China after years of success in Hong Kong. McKnight says it has taken awhile for a middle class to emerge, but the company’s dozen stores in China are starting to make a profit.
“If you don’t get there now, you don’t get the good real estate when the market finally comes,” he says. “Everybody’s had their stores all decorated, great product and no sales. Now, people are in the stores and buying things at that middle level.”
Quiksilver has also begun moving into Russia, Brazil and Mexico. India may be next.
“There’s a huge demographic bubble of teenagers coming globally,” he says. “And they are looking to Western culture in sports, food, fashion and music.”
The next 5 years
McKnight sees a tremendous opportunity for the action sports industry as today’s teenagers emerge and the popularity of extreme sports increases.
“The number of eyeballs watching (these sports) is incredible,” McKnight says. He added that the industry offers these kids great products and events, interactive websites and compelling stores. “Our industry is arguably every bit as proficient at product innovation as any of these high-end New York apparel guys.”
For Quiksilver, the next 5 years will bring a continued focus on product quality and marketing; further global expansion; product extensions similar to those introduced by Roxy cosmetics and Quiksilver women’s; and, perhaps, more acquisitions.
“We want to be the No. 1 outdoor/ action sports company in the world,” McKnight says.
Retirement
Retirement is not in the cards, at least not in the next 5 years, McKnight says. “I still really enjoy it. You can only play so much golf, go surfing so much. Then I need something to read, I need my email, and I always need to get my hands on something. To stay relevant in the industry, you’ve got to stay in tune with what’s going on...and you can’t do that part time from your couch.” OCM
Tiffany Montgomery is OC METRO Business Magazine’s retail columnist and founder of shop-eat-surf.com.
QUIKSILVER TIMELINE
1969 At the Rip Curl factory in Torquay, Australia, Alan Green starts working on prototypes for a new kind of boardshort, using aspects of wetsuit technology, such as snaps and Velcro flies.
1970 Quiksilver boardshorts make their first appearance in Australian surf shops.
1972 Kelly Slater – a huge factor in the company’s growth – is born on Feb. 11.
1976 Surfer Jeff Hakman is granted the Quiksilver license. Hakman and Bob McKnight start Quiksilver USA in Newport Beach and start selling boardshorts out of the back of a VW bus.
1986 Quiksilver, Inc. in the United States goes public.
1990 Kelly Slater signs with Quiksilver, Quiksilver introduces the Roxy brand to the surf market.
1991 Quiksilver, Inc. acquires Quiksilver Europe.
1997 Quiksilver.com is launched.
1998 Kelly Slater wins his 6th ASP World Title, and Quiksilver, Inc. lists on the New York Stock Exchange. Bell rings for ZQK.
2004 Quiksilver, Inc. does $1 billion in sales.
2005 The Wall Street Journal features Quiksilver, Quiksilver buys Rossignol.
2006 Quiksilver releases the 320-page full-color book, “The Mountain & the Wave, The Quiksilver Story.”
2007 Quiksilver, Inc. announces the launch of its women’s line for fall 2008.
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He’s headed Quiksilver in Huntington Beach for more than 30 years, and he has no plans to retire soon. McKnight spoke with OC METRO Business Magazine’s Tiffany Montgomery about Quiksilver’s push into mainland China, what the next 5 years look like for his company and why he hasn’t cashed out and retired. One topic was off limits: the company’s Rossignol ski business. The company had been exploring strategic initiatives for Rossignol hard goods at the time of the interview. Sub-sequently, Quiksilver announced it would keep Rossignol and sell Cleveland Golf. China Four years ago, Quiksilver began opening stores in mainland China after years of success in Hong Kong. McKnight says it has taken awhile for a middle class to emerge, but the company’s dozen stores in China are starting to make a profit. “If you don’t get there now, you don’t get the good real estate when the market finally comes,” he says. “Everybody’s had their stores all decorated, great product and no sales. Now, people are in the stores and buying things at that middle level.” Quiksilver has also begun moving into Russia, Brazil and Mexico. India may be next. “There’s a huge demographic bubble of teenagers coming globally,” he says. “And they are looking to Western culture in sports, food, fashion and music.” The next 5 years McKnight sees a tremendous opportunity for the action sports industry as today’s teenagers emerge and the popularity of extreme sports increases. “The number of eyeballs watching (these sports) is incredible,” McKnight says. He added that the industry offers these kids great products and events, interactive websites and compelling stores. “Our industry is arguably every bit as proficient at product innovation as any of these high-end New York apparel guys.” For Quiksilver, the next 5 years will bring a continued focus on product quality and marketing; further global expansion; product extensions similar to those introduced by Roxy cosmetics and Quiksilver women’s; and, perhaps, more acquisitions. “We want to be the No. 1 outdoor/ action sports company in the world,” McKnight says. Retirement Retirement is not in the cards, at least not in the next 5 years, McKnight says. “I still really enjoy it. You can only play so much golf, go surfing so much. Then I need something to read, I need my email, and I always need to get my hands on something. To stay relevant in the industry, you’ve got to stay in tune with what’s going on...and you can’t do that part time from your couch.” OCM Tiffany Montgomery is OC METRO Business Magazine’s retail columnist and founder of shop-eat-surf.com. QUIKSILVER TIMELINE 1969 At the Rip Curl factory in Torquay, Australia, Alan Green starts working on prototypes for a new kind of boardshort, using aspects of wetsuit technology, such as snaps and Velcro flies. 1970 Quiksilver boardshorts make their first appearance in Australian surf shops. 1972 Kelly Slater – a huge factor in the company’s growth – is born on Feb. 11. 1976 Surfer Jeff Hakman is granted the Quiksilver license. Hakman and Bob McKnight start Quiksilver USA in Newport Beach and start selling boardshorts out of the back of a VW bus. 1986 Quiksilver, Inc. in the United States goes public. 1990 Kelly Slater signs with Quiksilver, Quiksilver introduces the Roxy brand to the surf market. 1991 Quiksilver, Inc. acquires Quiksilver Europe. 1997 Quiksilver.com is launched. 1998 Kelly Slater wins his 6th ASP World Title, and Quiksilver, Inc. lists on the New York Stock Exchange. Bell rings for ZQK. 2004 Quiksilver, Inc. does $1 billion in sales. 2005 The Wall Street Journal features Quiksilver, Quiksilver buys Rossignol. 2006 Quiksilver releases the 320-page full-color book, “The Mountain & the Wave, The Quiksilver Story.” 2007 Quiksilver, Inc. announces the launch of its women’s line for fall 2008. |
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