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Billabong. Presented by Josi Price, Kiri Linseth, Fun Wu, Emma Ma, Summer Lang. Introduction. History Global Market SWOT Analysis Industry & Competitor Analysis Financials Recommendations Conclusion. Stagnant pool of water Billabong founded

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billabong
Billabong

Presented by

Josi Price, Kiri Linseth, Fun Wu,

Emma Ma, Summer Lang

introduction
Introduction
  • History
  • Global Market
  • SWOT Analysis
  • Industry & Competitor Analysis
  • Financials
  • Recommendations
  • Conclusion
history
Stagnant pool of water

Billabong founded

Burleigh ,the heart of Australian surfing, 1973

Gordon Merchant

Boardshorts, durable and well price

get credits from famous surfers

History
1980 s
1980’s
  • Stable Australian market
  • Global expansion
    • First –North America

large comsumptive groups

    • Japan, South Africa and New Zealand

got licenses

    • New land— Europe
  • More international surfers credits
1990 s
1990’s
  • Professional surfing products
  • skate and snow
  • No.1 status in Australian waters
slide6
2000
  • August 11th, Australia Stock Exchange
  • Billabong International Ltd

ASX: BBG

  • Strong promotion in finance
after 2000
After 2000
  • 2004
  • Sunglasses brand—Von Zipper
  • Element Skateboards brand
  • Honolua Surf Company
  • Kustom Footwear and Palmers Surf
  • 2005
  • Beach culture airport-retail business
after 20001
After 2000
  • 2006
  • Nixon watches and accessories
  • Element Footwear range

the California-based Beachworks retail business

current
Current
  • Clothing, accessories, eyewear, wetsuits and hardgoods
  • Youth culture (12-20 year-old)
  • Marketing, distribution, wholesale and retail
  • Special technique
current1
Current
  • CEO – Derek O\'Neill
  • 1,750 employees worldwide
  • Gets licenses and distributions in more than 100 countries
  • About 8,000 stores around the world
current2
Current
  • Slogan –“only a surfer knows the feeling”
  • Pushing all kinds of surfing
expand the global market u s europe
Expand The Global Market— U.S. & Europe
  • Annexed Xcel Hawaii
  • Bought Nixon
  • Opened the flagship in Time Square
expand the global market asia pacific africa
Expand The Global Market— Asia-Pacific & Africa
  • Set supply chain in China
  • Licensed business in South Africa
other instruments
Other Instruments
  • Sponsor athletes and track events
  • Launch a pan-Europe digital sports channel
  • Distribution channels
swot analysis
SWOT Analysis
  • Strengths
  • Weaknesses
  • Opportunities
  • Threats
strengths
Strengths
  • Billabong Brand Name
  • Robust Revenue Growth
  • Strong Profitability
weaknesses
Weaknesses
  • Low Returns
  • High Dept-Equity Ratio
  • High Dependence to the Billabong Brand
opportunities
Opportunities
  • Strategic Acquisitions
  • Positive Outlook for Sporting Goods
  • Growth in the Footwear Industry
threats
Threats
  • Competition in Global Surf, Skate and other Apparel
  • Rising Costs of Raw Materials
  • Slowdown in Consumer Spending
current situation in surf industry
Current Situation in Surf Industry

North America, Europe, Australia

  • On the mature stage of the product life cycle
  • In US market, sales is close to one billion dollars in 2005 and 2006.
  • Asia, South America and Africa
  • Absence on surf culture
  • Huge potential market
competition in surf industry
Competition in Surf Industry
  • Barrier of entry
  • Production (design, quality, distribution channel, price)
  • Activities of the company
competitor analysis 1
Competitor Analysis(1)

Hurley:

  • Located in the United States
  • One of the biggest surf sport brands
  • Seperated from Billabong USA as a independent license in 1982
  • In 1998, Bob Hurley set up his own brand-Hurley
  • Was sold to Nike in 2002
competitor analysis 11
Competitor Analysis(1)

Hurley:

  • Different market segment
  • Concentrate on grassroots marketing
  • Unique company culture
competitor analysis 2
Competitor Analysis(2)

Quiksilver:

  • Located in Australia
  • Set up distribution center in the mid 1970’s
  • Was brought to Europe in 1984
  • Built a subsidiary brand -Roxy
competitor analysis 21
Competitor Analysis (2)

Quiksilver:

  • Based on the needs of consumers
  • A series of newly conception stores- “ boardrider ” and “ outlet ”.
  • Join in surfing activities and extreme sports
competitor analysis 3
Competitor Analysis (3)

Rip Curl:

  • Located in Australia
  • Founded in 1969
  • In 1974, sponsored the first Australian professional tour with Coca-Cola
  • $150 million of net income and 70% of products export abroad each year
competitor analysis 31
Competitor Analysis (3)

Rip Curl:

  • Reform products in design and needs.
  • Expand the international market actively and widely.
billabong key numbers
Billabong Key Numbers
  • Company Type: Public
  • Fiscal Year End: June
  • 2006 Sales: $750.2 Million USD
  • 1-Year Sales Growth: 15.7%
  • 2006 Net Income: $106.3 Million USD
  • 1-Year Net Income Growth: 11.3%
  • 2006 Employees: 1,750
billabong financials
Billabong Financials
  • Billabong was originated out of Australia and bases its accounting practices in accordance to Australian Accounting Standards
  • Uses Australian dollars in all of its financial statements and all foreign currencies are translated into Australian
  • Australian currency is the company’s functional and presentational currency
  • Any gains or losses made between foreign currency exchanges are stated in the income statement
translating foreign currencies
Translating Foreign Currencies

Foreign currencies that are different from Australian dollars are translated to the functional currency.

3 Steps:

    • Assets and liabilities for each balance sheet are translated using the closing rate at the date of the balance sheet.
    • Income and expenses for each income statement are translated at average exchange rates.
    • All resulting exchange differences are recognized as a separate component of equity.
  • The differences in exchanges from transactions are placed in to shareholder’s equity
investment classification
Investment Classification
  • Billabong classifies its investments in to groups depending on the purpose of the investments
  • The 4 groups are:
    • Financial Assets at Fair Value through Profit and Loss
    • Loans and Receivables
    • Held-to-Maturity Investments
    • Available-for-Sale Financial Assets
recommendations
Recommendations
  • Distribution channel
  • Make the products individuated
  • Make good use of the international human resource
recommendations1
Recommendations
  • Pay attention to Asia market (warm-up and create the needs)
  • Launch a series of new brand covered different market segment
  • Pursue other way to increase the brand recognition.
  • Improve Weak Management