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Quiksilver Inc. Message Board

  • yieo2000 yieo2000 Feb 9, 2006 11:55 PM Flag

    ZQK, DC, Roxy T-shirts at Costco

    I saw some kids and men's simple logo T-shirts today at Costco. They are selling around 12.99 verus Macy's 19.99 or else where. I'm not sure about this move... it's selling to the midwest masses now... Mum.... It's definetly interesting to watch this development to its bottom line...

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    • That's fine. but, in the end, I don't think this is a particularly smart move on ZQK's part for reasons I mentioned earlier.

      I think it's less the consumer ZQK needs to worry about. I think the risk will be to their 'bread and butter' relationships with teen / department stores. Those folks WILL care if they perceive being upstaged by Costco. Remember, Costco will never represent the brand as traditional retailers do exhibiting a broad assortment of products. My guess is that if the traditional retailers sense disloyalty on ZQK's part they could respond by shrinking floor space. It happens all the time.

      Also, quite frankly, I can't see what ZQK has to gain by selling an inferior shirt via the warehouse stores. How does compromising shirt quality help? As I explained, all you have to do is lay one shirt on the other and you can see the differences.

      So, I can't see how selling a few lesser quality shirts at lower prices will be in ZQK's longer term interest.

    • That's nice to hear your helping your son with investing. Volcom is a good brand too. I would think Costco would be good for distribution of Quicksilver, as they also have Tommy Hilfiger, Nautica, Calvin Klein, Polo, Adidas and many other respected brands. I personally believe shoppers do not care or think about if they buy their favorite brands at Costco, a surf appearl shop or elsewhere; if they do care...they will probably never walk into a Costco.

    • Note you're in Hilo.

      BTW, I was originally born and raised in the SF Bay Area (Berkeley, CA) but lived in Honolulu for 10+ years after completing undergraduate + graduate work at UC Berkeley. During my time in Hawaii I traveled extensively to the Big Isle. Wonderful place. My wife's a local Kalihi Japanese / American gal.

      Small world, huh? Still keep some rental property in Honolulu.

      However, we love Alaska and have put down roots here. Still lotsa Island connections, friends and family.

    • Great story. Thanks...Hope I can repeat your son's success.

    • Interesting:

      Three years ago my then 13 year old decided (on his own) to put his $250 savings account in ZQK. His 10 shares are now 40 shares and his investment has grown to $520. Not bad.

      My only problem is that he now thinks every investment should live up to the growth of ZQK.

      Incidently, I followed his advice and invested but somewhat later. My mistake.

      Bomb

    • You are correct, it's essentially about the financials in the end. I think your Nike analogy is pretty accurate too.

      However, don't underestimate what brand image, cachet and market position means to fashion brands in general. Next to creativity, it's everything to them.

      Most of the more successful ones in the longer term are those that 'limit' distribution to 'selective' retailers they work very closely with over time.

    • Yes, we see quite a bit of the surf / skate / snowboard industry up here.

      My son is quite the snowboarder. We live only 10 minutes away from a very active snowboarding area.

      My interest in ZQK is financial and educational. I'm looking for a company to invest in for my son so he can learn to cut his investment teeth. He's 15 years old. Something he's interested in and can relate to. Number 1 brand in his mind is Volcom. ZQK is OK but a little too 'corporate' for him. I want to invest in one stock for him so he can hopefully measure it's growth.

      Everything I post is obviously my opinion or belief. However, my background is specialty retail and I have personal financial interests in several smaller (but very successful) better travel / fashion Alaskan retail stores for 15+ years.

      Quite frankly, I'm an avid shopper of Costco and admire their approach. However, I also have a fairly good idea on the way better fashion retail works.

      I think ZQK's Costco sales will give folks like Nordstrom / Penney's here cramps. Perhaps one time, they'll look the other way. However, if a pattern of Costco offerings develop I think it'll harm ZQK's relationship with the flagship department stores.

      Believe me, it'll be very difficult for ZQK to 'please two masters' in such different retail channels for the longer term.

    • Hum... Let's see.. I think I don't have a marketing degree and not sure if I wanted to get one. The bottom line is time will tell if this is a good move or not.

      I will be watching the numbers! As an investor, I care about my long term investment return. When the stock and brand is going down... I'm out of here. So far based on historical and current top line. I see growth! That's why I'm sticking to this stock.

      Personally, I don't think ZQK is going to be like GUCCI or COACH... It's more like NIKE. NIKE product are sold everywhere. In cheap ass malls as well as top retailers!

      BTW, for any company, they purchase product that drives their sales. So if ZQK keep selling like hot cake in Macy, they will not cut back on the product.

      It's all about numbers!

    • pikachu42051,
      You sure spend a lot of time speculating and giving your negative opinions. I notice the better the stock does the more you post. What's in it for you? You don't give facts either just "my guess", "I think", and "I believe". Do you see much of the surf and skate industry up in Alaska?

    • Your thought is inconsistent with building brand exclusivity and image for the longer term.

      The point is, a fashion brand should desire 'selective' distribution above 'mass' distribution if it expects to preserve it's cachet, longer term, with it's prime customer group.

      Just look at how the real masters of the 'selective' distribution business like Gucci, Rolex, Cartier, and Louis Vuitton carefully screen where and how their products are presented. While ZQK serves a different market, the principle of 'selective distribution' should still be relevant to preserve the brand's image -- and ultimately, it's profitability...

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