Trends & Concept
Elston Peterson

Teacher: Mr . Ruud Rosendal Class: 1-IMEMA Student: Elston Peterson (492843)

Table Of Contents
HISTORY................................................................................................................................................................. 2 WHY BILLABONG? .................................................................................................................................................. 5 TRENDWATCHER.COM ........................................................................................................................................... 6 INTERNAL PYRAMID............................................................................................................................................... 7 EXTERNAL PYRAMID .............................................................................................................................................. 8 VALUE PYRAMID .................................................................................................................................................. 11 FUTURING PYRAMID ............................................................................................................................................ 13 FUTURING METHOD: ........................................................................................................................................... 15 THE RIJKENBERG METHOD ................................................................................................................................... 16 POSITIONING ...............................................................................................................................................................16 CONCEPTING ...............................................................................................................................................................18 FUTURING SCENARIO ........................................................................................................................................... 20 COCNLUSION ....................................................................................................................................................... 22

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History
During the late 60’s and early 70’s, the surfing lifestyle meant getting in your kombi van packed to the rafters with surfboards, surf maps, tents and sleeping bags and heading to the coast for classic surfing safari. Where one ended up depended entirely on the waves. One day you could be riding the hollow left-hand reef-break at Summer cloud Bay on Sydney’s south coast, the next morning you could wake up at Angourie on NSW’s far north coast. The weather map dictated which direction these free-spirited wave hunters would point their kombi, and nobody knew how to read weather map better than ex-Maroubra surfer Gordon Merchant. He had an uncanny ability to turn up at the right beach exactly when it was ‘going off’ (that translated means when the wind, tide and surf combine to produce perfect waves). It was after one such magic surf-run up the coast, in search of that inevitable Pot of Gold, that invariably punctuated his surf safaris that meant Gordon simply did not return to Maroubra. He had found his surfing Utopia, a 20 miles stretch of golden beach and perfect point breaks. AS far as Gordon was concerned this was Meca- averaging 300 days per year of good quality surf, where one could wear board shorts or baggies for 9 months of the year. He settled in quickly and it was not long before Gordon was making a significant contribution to the Gold Coast’s infant surfing industry. As a shaper, Gordon made a huge breakthrough when he introduced a surfboard with a tucked-under edge, a development that aided Joe Larkin’s team-riders Michael Petersen and Rabbit Bartholomew in their ascension to the top world surfing. As a surfer, Gordon saved many a wiped-out surfer from grief when he developed the first leg-rope. Sure, it was a primitive device by today’s standards, but anybody who has had to scramble over the rocks at Burleigh Heads on a big day owes Gordon a schooner. In 1973 Gordon and Rena Merchant began producing handmade board shorts under their flat overlooking his beloved Burleigh. They were tough as teak, able to withstand not only the elements, but also able to absorb the sort of punishment that local juniors Guy Omerod and Rabbit Bartholomew would put those first issued trunks through. From those humble beginnings, Billabong was born. Gordon buried himself in his North Burleigh factory for the next few years and Billabong gradually made 2

ground on the more established labels. His no frills, practical approach to board short manufacturing paid dividends, as Billabong grew steadily until his little homespun factory literally burst at the seams.

It was out to West Burleigh, a modern factory and warehouse and much more work for Gordon and Rena. Sure a lot of low pressure systems, plus the waves they generated, passed by the coast during those years, but Gordon’s Kombi stayed put. It became obvious to the Australian Surfing Industry that here was a man, driven by the desire to produce the highest quality, best cut board short on the market, and by the early 80’s Billabong had achieved its primary objective. During the 80’s Billabong went International, firstly exporting to California, Japan, New Zealand and Europe and then finally licensing, but only after each international licensee had achieved Gordon’s benchmark of dedication, honesty and prudent business savvy. Gordon surrounded himself with some of the finest minds in the industry, both in Australia and abroad, who helped steer the good ship Billabong on a course which would take Billabong to the helm of the world surfing. In the water, surfers of the caliber of Joe Engel, Mark Occhilupo, Luke Egan, Wayne Bartholomew, Munga Barry, Shane Dorian, Taj Burrows, Sunny Garcia and the late Ronnie Burns have given Billabong international credibility, not to mention Worldwide exposure. As we entered the 90’s, Billabong had well and truly assumed #1 status in Australian waters and had further consolidated on the International scene. Of course, very few people even realized that Gordon Merchant had such a hands-on role in designing, marketing and sales, but having an intimate understanding of the fickle nature of the garments industry, Gordon knows that every label lives and dies by each seasons range. On its 25th Anniversary in 1998, Billabong moved into the new premises at 1 Billabong Place, Burleigh Heads, featuring a state of the art new factory. One feature of the new complex is the Polynesian style Retail Showroom, which stands proudly at the forefront of the factory, displaying the largest range of Billabong product anywhere in the world. Billabong is involved in many promotions, but one thing that underpins the respect the company enjoys in the marketplace, is Billabong’s commitment to pro board sports and its team riders. Billabong sponsors many events around the world, with a heavy emphasis on Junior athlete development, but the Jewels in the Crown are The Billabong Pro contests held in Teahupoo - Tahiti, Jeffreys Bay - South Africa, Mundaka - Spain and the Pipeline Masters in Hawaii. 3

Billabong owns now a broad range of products. Seeing that the company is now spread into three different zones (Australia, North-America & Europe) they decided to have separate design teams for every continent, this way each continent can create products that will be appealing to every individual market place. Billabong has a stable of eleven brands developed both internally and by acquisition since its listing on the stock exchange. These include Billabong, Element, Von Zipper, Honolua Surf Company, Kustom, Palmers Surf, Nixon, Xcel, Tigerlily, Sector 9 and DaKine brands. Lesley Skipp, IP Manager for Billabong International Limited, understands the importance these brands mean to the company's bottom line. "Intellectual property is one of the most valuable assets within our business, so we are highly motivated and committed to the ongoing global protection of our brands through initiatives including trademark and patent applications and subsequent enforcement practices."

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Why Billabong?
I come from an island in the Caribbean where the most people’s hobby is going to the beach, seeing that Aruba is surrounded by beautiful white sandy beaches. Aruba is also very well known for the variety of water sports that can be performed around the island thanks to the strong winds that the island has and the good constant good sunny weather. I am personally one of the biggest fans of Billabong Board shorts. I have been buying Billabong clothing and accessories since I was a young 13 year old boy. But the one difference between me and most of Billabong’s clientele is that I am not a windsurfer, neither a kite surfer, or athlete of any other aquatic sports. I know that Billabong does have the regular clientele also in mind when making their products, but still I believe it is missing more promotion towards your everyday person instead of only athletes. But I use my board shorts from Billabong every time I go to the beach. I even use them when at home to feel more relaxed. Billabongs shorts are made with the best fabrics you can find. I have board shorts that I bought 3 years ago and they are still in very good condition. No holes, no color washout, nothing like that. And I wear them almost every single day. I have to say though that the price is a little high, but it is for the amazing product that you get for it. Most people who live on the island don’t buy these shorts because they are very expensive and most people are not interested in them just because they don’t practice any type of water sports. So I thought it would be very good for Billabong to expand their market, apart of only focusing on the athletes and sports, they can actually market these shorts as being very reliable for everyone who lives in the Caribbean or any other island where a person can wear shorts every day. They are very comfortable, and last you longer than any other shorts that you might have already bought. I do believe they can pull this off easily without losing any of their loyal athlete costumers, because Billabong already has their standards high as for the athletes. This will not mislead any other athlete into not buying their shorts anymore. Apart of being comfortable and durable, Billabong is also very concerned about the styling of their new shorts. This can also help top get a bigger market because the regular board shorts that they p[produce are very dramatic and colorful. This is done because of the aiming at the market of athletes that practice water sports. It will be easier to spot these people when there are in the ocean thanks to those bright dramatic colors and designs.

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Trendwatcher.com
I searched every single way on the internet to find a trendwatcher who focuses on sports. I couldn’t find any in English. I found 2 in Dutch but it was a difficult Dutch that I couldn’t understand that well, so I had to drop them. Then I came across this site which at the beginning of the last period we were told to visit this site to find trendwatchers etc. I went on and one thing that catched my eyes right away was the trends that they were predicting from June 2011, which they called Innovation Extravaganza. This is where they speak about different parts where innovation will be the most important factor in the business. After that I thought on how when I was searching all the sites with information about Billabong, the word they always use in all their information that they provide is innovation. Their main focus in coming up with new or just improved products is through innovation. This means that Billabong is on the right path towards the future now with their main focus being innovation

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Internal Pyramid
Billabong Extreme

Sports

For the internal pyramid I had to go through all the types of history of Billabong that I could possibly find online and after reading a couple of them, I found out that Billabong not only stands as a brand for surfers which it initially started for, but they also focus on snowboarders & skaters. So in general it is mainly focused on every type of extreme sport nowadays. Billabong achieved popularity with professional surfers in the 1970s with a superior cut and unique triple stitching on board shorts that made them comfortable and durable. The brand’s values and professional use enabled it to successfully grow in the 1990s with the major expansion and a new respectability of surfing, becoming synonymous with the concept of the surfing culture and lifestyle that now has mass-market appeal, especially in the 12-25 year old market.

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External Pyramid
Latest technological extreme sports products in general Trendsetters

Innovation in the world of extreme sports

The external pyramid I had to see what is it exactly that is attracting more and more people to the world of extreme sports. One thing for sure that people look for when having to choose for a sportswear or equipment is the new innovation and technological discoveries for better accessories and clothing for a sport person. So for instance Billabong has right now the most innovative board shorts made from durable fabric to stand all the rough see during the sports and also nowadays they introduced a new fabric that is not only durable but it dries up faster than any other fabric, which is very good for these surfers, seeing that once they get out of the water they won’t have to keep walking around with their wet board shorts because it will dry faster than usual. They had professionals try our so many things to come up with this fabric. I would say innovation is the number 1 key to attracting new consumers to buy their products. People want the newest technology not only in electronics but in anything else they can find it, including sportswear (clothing). Also seeing that most of the consumers are young kids and adults, they are the new generation that is more updated in everything, and they also want to be updated in the sports department with new innovative products

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Value Pyramid
 Freedom  Adventure

 Sports

There is a big problem with obesity these days in the world, due to this, people are becoming more and more active all over the world, trying to fight obesity and give a good example of how people should live, healthy. By doing a lot of sports is one of the most active ways to fight this. This is why the sporting industry and the industry that create new sporting equipment and wear are also becoming bigger and bigger all over the world. But people don’t want to do your regular running tracks, or skating kind of sports which was the case for decades. They want to become more adventurous by doing sports that have a high adrenaline rush. Sports that are more exciting and on the edge. Sports that are very dangerous but fun at the same time. These people also want the freedom to be able to do these sports without any restrictions. They want to be able to even come up with new, riskier sports nowadays. Some would even prefer doing sports where you might even put your life at high risk, and by accomplishing this sport it makes them feel extra good & stronger about themselves, where they gain more selfconfidence.

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Futuring Pyramid
 Innovative Sports gear & equipment  Live life to the edge

 Extreme sports

Billabong is now mainly focusing on being innovative in not only the materials they use for their products, but also to be more innovative in the built to give the athlete more performance to the sport he or she is practicing. And also to help save the life of these extreme sports athletes. Seeing that people are coming up with more extreme sports lately, they have to base all their products that they are trying to develop by being innovative in a way that it fits with each sport separately instead of making for instance one kind of specific shoe that can be used in different sports. This makes their products more unique and exclusive at the same time, and that is what Billabong is going for since the year 2008 where they started using the slogan “only a surfer knows the feeling”. This slogan made everyone that bought one of their products and used it, even though they might not be professional athletes, feel like the professional athlete they want to become. So in other words, make them feel like pro athletes, when they are just your regular everyday athlete’s by providing these Billabong products.

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Futuring method: scanning Scanning is a method that uses all media to see patterns that form a trend. I chose this method because it is easy for me to read the newspapers, watch the news and go on my social networks to see what trends are dominating.

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The Rijkenberg method
Positioning
Products that are not original, that have been saturated by the market, must stand out. They do so by creating an image and a feeling within the product. We all know we’re buying the same thing, but the feeling and status we “buy” with it, dominates the market. For instance: IKEA. They sell mainly house furniture and decorations which people that just got a new house will definitely buy their products from Ikea. But for the people that already have a house fully furnished, Ikea focuses on making their product look so much better than whatever you already have at home, and this way encouraging you to get a new lamp for example, when you already have a working lamp at home. This is a good example, because they even made a commercial for it where Ikea tries to emotionally connect you to a new amp that they are selling while you already have a good working lamp at home. Shots from the commercial:

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Or for instance the Davidoff poster with Ewan on it, they are trying to encouraging you to buy this cologne so that you can smell just like an artist (Ewan Mc Gregor in this case)

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Concepting
Concepting is what companies do when they want to launch different products that all coincide with the values of the company. Although they might not even be products from the same industry, the fact that they carry with them the value of the company, which is visible all the time. In this case you can also use Billabong as an example. They started off with surf wear, but nowadays they broaden their product line so much that they have almost all types of sportswear, footwear, sunglasses, caps, accessories, sporting equipment etc. With concepting you have an extremely broad field of possibilities. Your concept is not dependent of only one product. Concepting uses the concept to attract followers from all kind of markets, current and future. 2 examples of concepting are: Apple & Virgin

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Futuring Scenario
Billabong is mainly focusing on making you feel exclusive without being an exclusive person. That is why they are constantly using these big world renowned athletes to promote their products. Their innovation is something that keeps setting Billabong apart from all their competitors seeing that they have been trendsetters for many years already by inventing the latest in sports gear/wear. The good thing about them is that they keep exploring and researching to constantly come up with a better product. One of their latest and most genius invention which falls exactly under what they are going for is the Billabong V1 Wetsuit. This suit came from an idea of the ex-star athlete of surfing Mr. Shane Dorian. He came up with the idea of attaching a sort of bag on the inside, back of the wetsuit, and when having problems with strong currents that you are being pushed under water, just grab the string by your neck, pull it and the bag will fill up with air from a small tank filled with air, and this will help you get easier to the surface of the water, no matter how strong the currents are. Another campaign they are focusing on lately is the “Design For Humanity”. Design For Humanity is Billabong’s charitable division that seeks to generate funds from the sale of limited edition products to donate to environmental and humanitarian causes. It has been created to give Billabong the opportunity to utilize its resources to empower and promote awareness of various charities. This led to Billabong actually making new board shorts. The board shorts are made from eco-supreme suede, a 100% recycled polyester. To give you an idea, each garment is made from approximately ten recycled plastic PET bottles. So from this I would say that they are focusing now on innovation and they are starting to touch the base of making their regular products from recyclable products and it is getting better and better now. They are doing all this and still being fashionable in a way.

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Cocnlusion
I believe that if Billabong keeps going in the direction they are heading right now, the outcome of this will definitely be in favor of the whole Billabong company, seeing that even the trendwatchers are predicting innovation being the next trend, and Billabong already using this trend for years and are just making it even more innovative for the future. They consider innovative as being one of their main core values. But I still believe that they can still try and come up with a plan of marketing to reach the ‘not so athletic’ market seeing that their products are made to last long which is something everyone looks for these days. A slogan I thought they could use for this marketing is: Billabong, still going strong, for everyone. This sort of represents that Billabong is still here to stay forever, and is for everyone. I think this slogan would definitely let people know right away that it is a product for everyone seeing that ‘everyone’ would be one of the key words of their campaign of their products. And one thing they could also change is their models that they usually use for their campaigns, which are the big athletes from around the world. They could keep using these athlete’s, but mix them up with your regular models, this way people will not only think the products are only for athletes, but for everyone else also.

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