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John Zerio
Clint Christensen
Geoffrey Howell
Volcom—Building an Authentic Brand
Introduction
The Volcom brand is an ingrained component of the skateboarding culture that emerged from Southern California. The spirit of independence and rebelliousness is etched in its “youth against establishment” slogan and
its positioning. Skateboarding, from a marketing perspective, has, in the last fifteen years, transcended U.S.
borders and became a global cultural phenomenon. As the brand reaches foreign shores, it faces the challenge
of creating local roots in different youth environments. Authenticity, the brand’s most powerful value, was built
in Southern California.
Worldwide, millennials show distinct traits. They like brands that are open source and embrace participation.
They are sensitive to diversity, value global community, and care about the environment. They spend almost six
hours a day online, and use social media daily. In addition, skateboarding and all action sports are increasingly
connected with music and popular culture.
Volcom’s marketing is challenged to find a balance between global revenue growth and sustaining the authentic values of the skating culture: risk-taking, individuality, opposition to authority, and cooperation. It needs
to learn to think beyond California and the U.S. and be more globally minded in order to seize the opportunities
History
Richard Woolcott and Tucker Hall founded Volcom in 1991 in Orange County, California. With $5,000 from
Woolcott’s father, they started a riding company based around the three sports that they enjoyed—snowboarding, skateboarding, and surfing. Initially, Volcom’s headquarters were set up in Newport Beach, CA, in Richard’s
bedroom, and all of the sales were run out of Tucker’s bedroom in Huntington Beach, CA. Although snowboarding and skateboarding were looked down on in the United States, Orange County, CA, was the epicenter for
board sports culture. The idea of snowboarding and skateboarding as a counter culture helped Volcom adopt
the philosophy of youth against establishment, which became the brand slogan.
Initially, Woolcott and Hall knew nothing about making or selling clothes. Clothing sales for that first year
were $2,600, and Woolcott and Hall both believed that all they needed was spirit and creativity. Eventually, the
company matured internally and, while maintaining the same philosophy, Volcom has slowly spread across the
world. On June 30, 2005, Volcom went public with an IPO of $89.1 million. From 2007 to 2009, Volcom was
approached by several companies interested in doing a strategic transaction. It wasn’t until 2009 that Volcom
started to think about the possibility of a transaction more seriously. In May 2011, the Kering group, a world
leader in apparel and accessories that owns a portfolio of luxury, sport, and lifestyle brands, purchased Volcom
for $608 million. Some of Kering’s luxury brands include Gucci, Bottega Veneta, and Saint Laurent, to name a
few. Within the sports and lifestyle brands, Kering owns Puma, Volcom, Cobra, Electric, and Tretorn.
Copyright © 2014 Thunderbird School of Global Management. All rights reserved. This case was prepared by Professor John Zerio,
Clint Christensen-MBA’14, and Geoffrey Howell-MBA’14, for the purpose of classroom discussion only, and not to indicate
either effective or ineffective management.
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[email protected] or 800-988-0886 for additional copies.
The Founders
Richard Woolcott and Tucker Hall were pioneers in action
sports who embodied everything that Volcom represents today. At the time they founded Volcom, Tucker Hall had just
been laid off, but decided to go on their annual snowboarding trip to Tahoe anyway. After four days of riding powder
(i.e., snowboarding on soft, fresh snow), Woolcott called in
to work and told his boss that he was snowed in and couldn’t
return for a few more days. For more than a week, they woke
up each morning with fresh snow to ride on. Two weeks
later, Woolcott quit his job so he could dedicate more time
to snowboarding. It was then that Woolcott and Hall started
talking about forming a company based on snowboarding,
surfing, and skateboarding. The company, which later became Volcom, was a family of people not willing to accept
the suppression of established ways. True to Woolcott and Hall’s lifestyle, youth against establishment was born.
For the next two years, the two founders traveled the world with friends snowboarding wherever they
could. Since its beginning, Volcom has grown in popularity with snowboarding, surfing, and skating enthusiasts
worldwide. Although the company is much larger today, the Volcom philosophy has stayed the same.
Richard Woolcott was keenly aware of the profound relationship between sports, music, art, and fashion,
and the creative, enlightened environment that results when all elements are interwoven and pushed to new
heights by some of the most creative minds in the world. When this occurs, he believed, an unmistakable attitude
was created and, if done correctly, an attitude definitively associated with a particular brand. Volcom was able to
create such an environment, and the vehicle for increased popularity of board sports was Volcom Entertainment.
Products
Volcom is an innovative designer, marketer, and distributor of
premium-quality clothing, footwear, and accessories for young
men and women. Positioned as a premier brand, Volcom
products include T-shirts, jackets, boardshorts, denim, outerwear, sandals, women’s swimwear, and a collection of kids’
and boys’ clothing. Volcom products set the industry standard
for style and quality in each of their six product categories:
men, women, boys, footwear, swimwear, and snow. Each
product is created for participants in surfing, skateboarding,
and snowboarding by combining fashion, functionality, and
athletic performance. Volcom products appeal to both board
sports participants and those who affiliate themselves with the
action sports lifestyle.
The Brand
Volcom was the first company to combine
surfing, skateboarding, and snowboarding
under one brand from its inception. The
Volcom brand is symbolized by the Volcom
Stone and is driven by the energy of youth culture, action
sports athletes, innovation, and creativity. The Volcom Stone
imagery is reinforced through the sponsorship of world-class
athletes, targeted grassroots marketing events, advertising,
producing, and selling music under the Volcom Entertainment label, and creating board sports-influenced films through
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Veeco Productions, Volcom’s film division. The Volcom brand embodies its youth against establishment motto,
which has become a company-wide philosophy that supports young creative thinking and flows through its art,
music, films, athletes, and clothing.
Distribution
In order to enhance its brand image, Volcom operates a tightly controlled distribution system. The company
sells its products solely to retailers that will merchandise its products in a way that supports and reinforces the
brand and will provide a superior in-store experience. The independent board shops and boutiques are the soul
of the industry and a hallmark of Volcom’s authenticity. This strategy has enabled Volcom to develop strong
relationships with such retailers as 17th Street Surf, Becker Surfboards, Froghouse, Hotline, Huntington Surf
& Sport, IG Performance, K5 Board Shop, Macy’s, Nordstrom, Pacific Sunwear, Snowboard Connection, Sun
Diego, Surfside Sports, Tilly’s, Val Surf, West Beach, and Zumiez, among others. In addition, Volcom operates
47 full-price Volcom-branded retail stores, and licenses an additional eight full-price stores in strategic markets
around the world.
Sales
Volcom products are sold throughout the United States and in more than 40 countries worldwide. Through
in-house sales personnel, independent sales representatives, and distributors, Volcom products can be found in
the United States, Europe, Canada, Latin America, Asia Pacific, and Puerto Rico. Volcom also receives royalties
on the sale of Volcom-branded products sold by licensees. Product revenues in the United States were $195.8
million, $174.3 million, and $157.6 million for 2008, 2007, and 2006, respectively. Revenues from European
operations were $77.9 million, $40.1 million, and $4.5 million in 2008, 2007, and 2006, respectively. Product
revenues in Europe have increased as Volcom recognizes the direct sales of products in the European market.
Product revenues in markets other than the United States and Europe were $58.4 million, $50.8 million, and
$39.1 million in 2008, 2007, and 2006,1 respectively. Recent comments by financial analysts2 and inferences from
recent interview with Kering’s executives3 indicate estimated sales revenue for 2013 of $254 million. According
to the same report, Volcom experienced a drop in 2013 revenue of 6.2%, reflecting the competitive difficulties
caused by the global recession.
Corporate Structure
In February 2007, Volcom completed the construction of its European headquarters in Anglet, France, as part
of the strategy to take direct control over European operations. In 2008, Volcom entered into an agreement to
take direct control of its brand in the UK and further expanded internationally by acquiring the distributor for
Volcom-branded products in Japan. In addition to international expansion, on January 17, 2008, Volcom acquired all of the outstanding membership interests of Electric Visual Evolution LLC, or Electric. Volcom ended
2013 with 47 stores worldwide. The company reorganized its activities in order to consolidate its global presence.
The move resulted in the globalization of structure, process, and decision making in the areas of marketing,
merchandising, product design, supply chain, and finance.
Product Development
Volcom products are designed and developed by teams in the Orange County, CA, headquarters as well as the
European headquarters. These teams are organized into groups that focus on men’s, women’s, and boys’ snow wear,
and women’s swimwear categories. In addition to Volcom’s in-house design teams, each of the international licensees
employs designers and merchandisers to create products that reflect local trends, while staying consistent with the
Volcom brand. The in-house design teams and the designers from the international licensees meet several times
a year to collaborate and develop designs that reflect trends from around the world. The collaboration between
in-house designers and international licensee designers helps create products that look consistent throughout
Years for which annual report data was publicly available.
“Kering Tells Us Almost Nothing About Volcom’s Results,” Jeff Harbaugh & Associates, blog entry, October 29, 2013.
3
Montgomery, T. “Kering Details Volcom and Electric Results 2013,” http://www.shop-eat-surf.com, July 8, 2014, http://
www.shop-eat-surf.com/2014/02/kering-details-volcom-and-electric-2013-results/.
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all markets. In addition to the design teams, Volcom involves team riders and important retail accounts in the
design process to help develop the style and functionality of products. This added input reinforces the Volcom
brand and provides additional insight into consumer preferences and fashion trends. Volcom follows a design
calendar for five major seasons: spring, summer, fall, snow, and holiday. Each season’s product lines incorporate
new looks and features based on feedback from sponsored athletes and important retailers.
Manufacturing
Volcom does not operate any manufacturing facilities, but instead sources products from independently owned
manufacturers based on their expertise in a specific product line. Apparel and accessories are purchased or imported as finished goods from China and Mexico. In fact, Volcom imports more than 75% of its products, most
of which are imported from Asian manufacturers. In order to achieve shorter lead times and react quickly to
industry trends and demand from retailers, Volcom screen-prints its T-shirts in the United States. International
manufacturers are evaluated on the quality of their work, their ability to deliver on time, and cost. Volcom also
uses the services of third parties to assess the quality of the products and ensure compliance with applicable labor
standards and practices. Aside from two of Volcom’s major manufacturing partners, there is no single manufacturer of finished goods that accounts for more than 10% of Volcom’s production expenditure. Volcom does not
have any long-term contracts with manufacturers. This allows Volcom the flexibility to reevaluate and change
its manufacturing and sourcing strategy when needed.
Advertising and Promotion
Volcom uses a multifaceted advertising and promotion strategy that incorporates elements of its athletes, fashion, art, music, and film. The company generally does not use outside marketing agencies but, instead, prefers
to use its internal marketing and art departments to create advertisements and other grassroots programs. The
advertising and promotional events consist of athlete sponsorships, Volcom-branded events, print advertisements,
music, film, Volcom-branded retail stores, and online marketing programs.
Volcom Entertainment
Volcom Entertainment was founded in 1995 primarily as a music label to support musical artists and provide
another means for creativity and expression. Ryan Immegart, Volcom’s first sponsored snowboarder, and Richard
Woolcott first came up with the concept of Volcom Entertainment. Ryan, as the singer and guitarist of a band
named theLINE, had a love for music and all of the necessary components to launch a music label through Volcom.
Some of Volcom’s better-known artists today include bands such as ASG, Birds of Avalon, Guttermouth, Pepper,
Sabotage Soundsystem, and Valient Thorr. For 10 years, Volcom Entertainment produced the Volcom Stage on
the Vans Warped Tour, and in 2007 began its own annual international music tour called “The Volcom Tour.”
Today, Volcom Entertainment is perceived as more than just a label through a Web entertainment platform that mixes music, videos, concerts, and blogs around the Volcom brand community and board sports. In
2008, Volcom Entertainment started a vinyl record club called VEVC, which delivers collectible vinyl singles
twice a month to subscribers all over the world. Volcom Entertainment also created an annual music contest for
unsigned bands called Band Joust, which is another medium that Volcom utilizes to connect music lovers and
action sports enthusiasts to its brand.
Musicians are a major force in the way millennials dress and express themselves. The indie music space
generates a lot of style and diversity, and encourages young people to experiment and be true to their own sense
of cool. In addition, these young people are more aware of trends that come from beyond their local scene. The
Internet allows faster movement of ideas and designs, and opens the door for many new ways of mixing styles
and clothes.
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Pepper in Concert on the Volcom Tour
Fans Waiting at the Volcom Tour
The Vans Warped Tour4
The Warped Tour is a touring music festival that started in 1995 and is sponsored by the skateboard shoe manufacturer, Vans. The tour is held in venues such as parking lots or fields upon which the stages and other structures
are erected. The tour began as a showcase for punk rock music, but its more recent lineups have featured diverse
genres of music.
As well as music, this tour brings many attractions, including a half-pipe for skaters and bikers. The tour
also features booths that create a flea market-like atmosphere, with tents for bands, independent record labels,
magazine publishers, nonprofit organizations, and sponsors who want to sell and market their products to the tour’s
audience. Many bands retreat to their tents after their performance in order to meet fans and sign autographs.
The Vans Warped Tour, the Concert Series that
Volcom Entertainment Toured with until 2007
Fans at the Vans Warped Tour
The Action Sports Industry
The action sports industry is a multibillion dollar global industry. In 2012, some of the most successful action
sports companies and their respective earnings for the year were the following: Skull Candy—$200 million;
Volcom—$332 million; GoPro—$521 million; and Red Bull—$5.75 billion.
The action sports industry is characterized by nonmainstream sports such as surfing, skateboarding,
snowboarding, skiing, BMX, motocross, wakeboarding, mountain biking, and skydiving. These sports are often
associated with young adults who push themselves to the limits of their physical ability and fear; as a result,
pushing the boundaries of a particular sport. Action sports are almost always individual activities, as opposed to
mainstream sports that are characterized by a team. The activities within action sports often focus on performing
tricks or stunts and are perceived as having a high level of danger, difficulty, height, speed, and physical exertion.
In order to catch a glimpse of the power of this experience, the reader is strongly encouraged to view the Warped Tour
channel (https://www.youtube.com/user/officialwarpedtour) and sample some of the clips, interviews, and user-created
content available.
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Major Brands
Globally, there are many companies, both public and private,
of various sizes and scale within the action sports industry and,
while some only focus on one particular sport, there are many
companies that embrace two or three sports. Some of the most
significant competitors include GoPro; Red Bull; Quicksilver
Inc., including the Quicksilver, Roxy, and DC brands; Billabong International Inc., including the Billabong and Element
brands; Burton; Reef; Vans; Skull Candy; and Hurley. Within
skateboarding, the most significant competitors are Baker, Flip,
Plan B, Independent, Birdhouse, Element, KR3W, and Powell
Peralta, among many others. The strong presence of Nike in the market, with its Nike SB brand, supported
by some very clever advertising and the signing of top riders (e.g., Paul Rodriguez, and Brian Anderson), has
heightened the competition in the industry.
Action Sports Retailers
Some of the major retailers in the action sports industry include Pacific Sunwear, Zumiez, Sun Diego, Tilly’s, Macy’s, and
Nordstrom. Smaller retailers also contribute to the distribution
and success of action sports companies. The smaller retailers
are mostly small skateboard, snowboard, and surf shops that
are locally owned and operated. Some examples of the smaller
niche retailers are 17th Street Surf, Becker Surfboards, Froghouse,
Hotline, Huntington Surf & Sport, IG Performance, K5 Board
Shop, Snowboard Connection, Surfside Sports, Val Surf, and
West Beach.
The Skateboarding Tribe
Skating is a passion and a way of expressing an identity. Skaters seek people who share their values and are driven
by similar thrill of action. They are a modern representation of the concept of tribe or, as others have proposed,
a subculture of consumption.
A subculture (a.k.a. tribe) is a subgroup of society that self-selects on the basis of a shared commitment to
a particular product class, brand, or consumption activity. A subculture comes into existence as people identify
with a certain brand or a consumption activity and, through that brand or consumption activity, identify with
other people committed to the same values. Subcultures are typically defined by a hierarchical social structure
among members, a unique set of ethos and values that resonate with members, and unique modes of expression
that are consistent with all members of the subculture. The social structure, ethos and values, and modes of
expression are so robust that they tend to be consistent throughout the world.
Subcultures display a hierarchical social structure among the members of the subculture that reflects the
status of individual members. Status is determined by an individual’s commitment to the brand, product class,
or consumption activity and, as a result, there are layers of membership within the subculture. The hard-core
members of a subculture are committed to the values and the lifestyle of the subculture full-time, while the
more peripheral members are only committed part-time. The peripheral members typically are new members
who are just beginning to become involved in the shared brand or consumption activity, or those people that are
fascinated by the lifestyle and participate superficially—the wannabes. The periphery includes those members
who participate in the subculture on weekends only and are not committed to the ethos or values during the
typical workweek.
Within the sport of skateboarding, the hard-core members of the sport are the sponsored professionals, while
the periphery includes skateboarders who are new to the sport and people who dress like a skateboarder, but do
not participate in the sport itself. There are also members of the skateboarding subculture who fall in between
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the core and the periphery. These members are committed to the skateboarding lifestyle and its values, but they
may also have a job, a family, be attending college, or have some other commitment that demands their time.
Social Dynamics
The hard-core members whose commitment to the subculture
is full-time and enduring dictate the trends and behavior for
the rest of the members of the subculture. In the skateboarding
subculture, all trends start at the core and disseminate outward
to the periphery. Although the skateboarders in the core look
down on the newcomers on the periphery, the periphery serves
as an audience to the core and emulates what the core does. As
members on the periphery start to skateboard, they look to the
core to know how to dress, behave, and skateboard properly.
As these peripheral members start to adopt the fashion trends
and behavior that is consistent with the core members, they are
perceived as being closer to the core. In a similar fashion, as the
peripheral members increase their skill level as a skateboarder,
they are perceived to be closer to the core. They are no longer
viewed as a peripheral member or a newcomer to the sport.
Just as the peripheral members look to the core for fashion
trends, behavioral norms, and the innovation of skateboarding
tricks, skateboarding companies also look to the core for the
latest trends in what is considered cool. Skateboarding companies
work with core skateboarders in product development, product
design, and marketing to be perceived as being an authentic
brand within the sport of skateboarding. It is through the coproduction with core skaters that skateboarding companies stay
authentic to the sport and create products that are perceived as
being cool. In an effort to build awareness and authenticity for
their brand, companies increase the visibility of their products
with core skateboarders in the form of sponsorships. Sponsorships include giving free products to professional skateboarders, paying a salary, and paying contest entry fees to promote
exclusively a certain company’s brand and increase its visibility
within the subculture.
Kelly Slater
Pro Surfer for Quicksilver
Ronnie Renner
Pro Freestyle Motocross Rider for Red Bull
Shaun White
Pro Snowboarder for Burton Snowboards
The Tribe Culture
Ethos and Values
Each subculture has certain principles that are consistent throughout the subculture and resonate with its members’ needs and values. The values that exist in a subculture act as drivers for each member’s attitude, behavior,
and form of expressing themselves.
The core values of skateboarding are risk-taking, individualism, and counterculture. These three values are
consistent throughout the skateboarding subculture globally and explain why skateboarders around the world
look and act in a similar manner.
Risk-Taking
Skateboarding is inherently risky and has the potential to be dangerous, but at the same time provide an outcome
that creates a feeling of exhilaration and excitement. It is through adrenaline that the body creates that feeling
of exhilaration and excitement, which is what skateboarders are actively seeking. Skateboarders are aware of the
possibility of injury and understand that injuries are part of improving and pushing themselves.
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It is through risk that skateboarders earn the respect of their peers. The greater the risk and the more difficult the trick being performed, the more respect one will gain from his or her peers. It is also through taking
risks that innovation and creativity happen. In order to learn or invent a new trick, a skater typically falls many
times before successfully mastering a trick. It is this process of falling over and over that is not only risky, but
also necessary for a skateboarder to overcome that risk and feel the exhilaration of landing a trick successfully
for the first time.
Another type of risk that skateboarders encounter on a regular basis as they try to practice their sport is
the risk of getting into trouble with authority. As skateboarders search for new and challenging landscapes to
practice on, often they want to skateboard on private property, in city parks, and in parking lots near businesses.
Skateboarding on this type of property (also known as street skating) includes jumping down stairs, sliding down
handrails, and sliding across cement curbs and benches. At times, street skating can damage the property that is
being skated and create a danger for pedestrians who happen to be in the area. Police officers and security guards
get called to either remove skateboarders from the area or fine them for breaking posted rules.
This type of risk also fosters creativity and respect within the subculture. A skateboarder will find creative
ways or times to skate on private property (including setting up lights powered by a generator late at night)
to escape being caught by the authorities. Respect from peers is gained when a skateboarder skates at a highly
guarded spot and doesn’t get caught by security guards or the police. The exhilaration comes from skating on
private property and escaping the consequences of getting caught.
Watch Episode 2 and/or 4 of The Making of True to This to understand the mind and heart of skateboarders (http://www.volcom.com/truetothis#ttt-webisode-episode2).
Individuality
Skateboarders feel an opposition to authority, structured rules, and being told to fit in. As a result, skateboarders
purposely go against what is considered normal in an effort to be uniquely individual and set their own boundaries. Skateboarding liberates an individual from mainstream rules, sports, and social structures, because ultimately
it is the individual who motivates, teaches, and pushes him or her to become a better skateboarder. There is no
coach that tells a skateboarder what to do and how to do it and, as a result, each skateboarder develops his or her
own unique style and way to perform tricks. Each skateboarder has the total freedom to choose what he or she
will skate and how they will skate it, and this fosters personal creativity in a nontraditional way.
This idea of individuality and self-expression is a motivating force for every skateboarder. It encourages
creativity and allows skateboarders to distance themselves from conventional society, but still belong to a subgroup of society that shares similar interests and values. While skateboarders make an effort to try to differentiate
themselves from the mainstream, the mainstream is the focal point. What skateboarders choose to wear is just
as important as what they choose not to wear. The same is true for behavior and other modes of expression—
skateboarders must always be aware of what is mainstream in order to differentiate themselves from it.
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Tattoos (body art) are also a popular form of expression and creativity among skateboarders. Body art
serves a dual purpose for skateboarders—it sets them apart from mainstream society and presents a physical
manifestation of opposition to rules and societal norms. Skateboarders differentiate themselves with visible tattoos which allow them to express themselves creatively through the artwork that is permanently inked on their
skin. The fact that tattoos are permanent is another way for skateboarders to show their level of commitment to
the skateboarding subculture and be perceived as closer to the core.
Self-Expression and Creativity as a Form of Individualism
Tattoos Are a Form of Differentiation and Individuality
Counterculture
Because skateboarders are constantly denied access
to, or removed from, private property without having
an alternative place to skate, they feel alienated from
society. Historically, society has looked down on skateboarders, which has only reinforced the idea that they
are doing something that is counter to what mainstream
society deems normal. As skateboarders are treated
like delinquents and outcasts, they dress and behave
like delinquents and outcasts. It is consistent with the
value of being an individual and not fitting in to widely
accepted norms or standards. But, since skateboarders
wish to differentiate themselves from the mass market,
they must be aware of what the mass market is doing.
The mainstream is the focal point for differentiation.
Opposition to Authority
The Culture Subgroups
Within the subculture of skateboarding, there are subgroups whose musical tastes influence the modes of expression within each subgroup so much so that there are visible barriers among the three. These three subgroups are
Metal, Hip-hop, and Punk. While each subgroup exhibits different styles, which are influenced by a particular
music genre, the values of the skateboarding subculture—risk-taking, individuality, and counterculture—are
consistent throughout each subgroup.
Metal Subgroup
Those skateboarders who adopt the metal aesthetic are characterized by certain modes of expression and rituals.
These skateboarders typically have long hair, leather jackets, black clothing, and integrate satanic symbolism
into their fashion. Common rituals among this subgroup include head banging, creating devil horns with their
fingers, and active involvement in metal music.
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Punk Subgroup
The punk subgroup has been around since skateboarding started increasing in popularity in the 1970s in the
United States. Punk skateboarders feel as if they were first, because they helped take skateboarding from a casual
pastime to a lifestyle with attitude. The punk subgroup’s aesthetic consists of wearing plaid shirts, hair that has
been dyed black, long socks, studded belts, and Vans shoes (Vans was the first shoe brand to be adopted by
skateboarders in Southern California in the late 1960s and 1970s). Among punk skateboarders there is little
appreciation for alternative cultures. Punks often style their hair in a Mohawk and participate in the surf punk
scene by moshing (a style of collective dancing to punk music where members of the audience move around in
a big circle pushing one another as a release for frustration and aggression).
Hip-Hop Subgroup
Skateboarders in the hip-hop subgroup have an entirely different aesthetic than skateboarders in the metal or
punk subgroups. The hip-hop subgroup is characterized by oversized clothing, large pieces of jewelry, fitted hats
with sports teams logos, and baggy pants. Skateboarders in the hip-hop subgroup are confrontational by nature,
smoke marijuana regularly, have a stronger opposition to authority (as many hip-hop skateboarders are minorities), and are more heavily tattooed than most skateboarders.
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New Subgroup: Hessian
A relatively a new subgroup has emerged in the skateboarding subculture. That subgroup is known as hessian
(pronounced heshan). What distinguishes hessian skateboarders from other skateboarders is that they do not
adopt any particular style. Hessians are characterized by their lack of hygiene, excessive facial hair, long hair,
and dirty clothes. Skateboarders in this subgroup don’t care about appearances and they don’t try to stand out
in any way. Their focus is more on skateboarding and becoming better skateboarders rather than on attitude or
trying to make a statement. Contrary to most skateboarders’ desire to stand out from the norm, hessians blend
in with society. Often, skateboarders cannot distinguish a hessian from someone who doesn’t skateboard at all.
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Authenticity Ruined: No Fear
Substory: NO FEAR
In 1989, brothers Mark and Brian Simo were determined to carve out their own niche in the
recently flourishing fitness industry, and decided to create a clothing company geared toward active
lifestyle consumers. Since neither brother had any significant experience in a particular sport, their
goal was to create a brand with as broad an appeal as possible—a rootless, oversimplified vision
that they believed could be embraced by an athlete from any background—from a bodybuilder to
a rollerblader—and everyone in between. The company they created was called No Fear.
No Fear’s initial success was staggering. Their graffiti-esque slogans and aggressive design
patterns could be seen on the backs of NASCAR drivers, basketball players,
motorcycle racers, and MMA fighters. Within a few years, middle-aged fathers
could be seen wearing NO FEAR T-shirts while reeling in marlin off the
Florida coast. A few years later, the No Fear logo was emblazoned on energy
drink bottles due to a joint venture with Pepsi Co. Things were looking very
promising for the Simo brothers.
In 2011, No Fear Inc. filed for Chapter 11 bankruptcy, the result of
inventory overproduction and outstanding debts with several national distributors. A firm that once employed thousands now had only has 450 employees.
How did No Fear go from being one of the most popular brands in America to utter oblivion? The reason for No Fear’s downfall
was twofold:
1. They did not have roots firmly planted within a core group of participants which associated the No Fear brand with
a specific activity. An example of such a brand would be Metal Mulisha—a motocross clothing company that, despite
widespread international success, is still first and foremost recognized and patronized by fans of motocross. By having
a core group embrace your brand, the brand’s authenticity is validated.
2, No Fear failed to cultivate a specific lifestyle around their brand. Since all walks of life could feel equally associated
with the brand’s tag, all sense of uniqueness was annihilated, and any emotional connection extended no further than
the physical product itself. This was, indeed, the Simo brothers’ intention. But, while hindsight is 20/20, time is not.
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The 21st Century Brand
Today, successful brands make core authentication and lifestyle cultivation their top marketing priorities. No
company exemplifies this better than Volcom Inc., true pioneers in recognizing the unbridled power that the
core possesses in dictating trends.
The reason for this is simple: they’ve been building a lifestyle mantra around
their products since the company’s inception in 1995. Volcom’s co-founder, Richard
Woolcott, was keenly aware of the profound relationship between sports, music,
art, and fashion, and the creative, enlightened environment that results when all
elements are interwoven and pushed to new creative heights by some of the most
creative minds in the world. When this occurs, an unmistakable attitude is created
and, if done correctly, an attitude definitively associated with a particular brand.
Volcom has been able to create such an environment, and the vehicle for this Renaissance is the production company Volcom Entertainment Company (Veeco).
Woolcott has made certain to “explore new ways to evolve the company that
are unique and remain at the forefront of our industry.”5
A Radical Approach to Lifestyle Marketing
Unlike NO FEAR in the 1990s, Volcom has a very precise, unambiguous cultural lifestyle associated with its
brand; a lifestyle best summed up in its mantra youth against establishment.
Like so many powerful ideas, the key to Volcom’s mantra is the myriad interpretations the mantra conjures—from embracing individuality, fighting oppression, to simply embracing personal freedom. All of these
nuances, sprinkled with conspicuous tinges of anarchy, comprise the Volcom lifestyle. And, like all explicit
lifestyles, music plays a pivotal role for Volcom.
In addition to continuously developing award-winning apparel lines, Volcom also manages its own in-house
music production facility, recording and producing small- to medium-sized bands that embrace the aggressive,
voracious ethos Volcom embodies (for examples, please visit www.volcom.com/music). As field research has
shown, music and action sports co-exist in a cyclical relationship where each influences the other, ultimately
creating a unique cultural body that is easily definable as Volcom’s own.
A Shot from Volcom’s New Film, True To This, Showing Skaters on a Mini Ramp in the Ocean
What further sets Veeco apart from other sports firms attempting to cultivate lifestyles around their products
is the frequent content production of their 3S (skateboard, snowboard, and surf ) team riders engaging in decidedly un-3S activities, ranging from road trips to Mexico to late nights in dubious, unpredictable cities, which are
then broadcast almost immediately over all the various social media channels. Volcom’s Road-Tested ad campaign,
for example, highlights Volcom skate team riders on their various adventures while traveling between various
destinations, focusing on the behind-the-scenes moments of skateboard culture in addition to the skating itself.
5
http://business.transworld.net/117659/features/steris-named-volcom-ceo-woolcott-moves-to-executive-chairman/.
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This content, combined with the music production of Veeco, reinforces an image of Volcom, what they
stand for, and their unabashed, unapologetic nature in their presentation:
This alone gives them the proudly earned label of being an authentic brand. In the highly competitive
ocean of action sports, establishing an explicit lifestyle that caters to a core group of consumers is the difference
between sinking and swimming. Volcom skater Geoff Rowley says, “Creatively, I think until recently there was
a little bit of a lull in skateboarding. Things were getting too predictable, same marketing approaches, reissue
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graphics, same experience for the paying customer. I’m getting stoked on some of the younger brands and what
they are bringing to the table. It’s refreshing, and I welcome that with open arms.”6
Challenges Moving Forward—The Core
The core is critical because it comprises individuals who are not motivated by external factors like money, status,
or recognition. Their involvement derives purely from an internal sense of accomplishment and satisfaction;
fulfillment that has absolutely nothing to do with T-shirt sales or investor returns, nor with rankings within an
organized action sports body. A prime example is Volcom rider Ozzie Wright, a surfer who has never been on
the Association of Surfing Professionals (ASP) world tour. However, due to the respect he garners from within
the core due to his innovation and creativity, he has remained sponsored by Volcom since his professional debut.
In addition, Wright produces his own graphics for his products and his band, Goons of Doom, is signed to
Volcom’s Veeco label.
Volcom must keep the demands of its core consumers at the heart of their marketing and production
endeavors. That said, the landscape for retail brands is getting increasingly competitive and crowded. Tiffany
Montgomery points out, “Young and established action sports competitors are finding shrinking retail space
in core shops along with non-endemic global brands...geographic expansion will continue to play a key role
in [Volcom and Electric’s] growth strategy, with focus placed on increased service to existing distribution and
expansion of retail footprint within the channels.”7
The Paradox of Expanding Globally Yet Remaining True to the Core
There exists a defined paradox between being core and being global. Being global by definition means that you
are selling as much product as possible for the purpose of a greater return, foregoing the soul and roots of why
the company was initially founded. It becomes a for-profit business, which is antithetical to the values and beliefs
the core holds dear. The irony occurs when corporations try to mass-produce attributes of the core, while the
core views this as completely obliterating any sense of authenticity.
Volcom has done an exceptional job in keeping their core intact, sticking to their aggressive, unapologetic
roots, while most major brands focus on what has the greatest overall market appeal, the tenets of the mainstream.
While their mantra remains youth against establishment, Chris Mauro of GrindTV points out, this “wasn’t about
anarchy, but instead about making your own rules that effect positive change.”8 For example, Mauro refers to
the fact snowboarding was still frowned on at major resort mountains throughout the 1980s, and competitive
surfing was succumbing to political pressures. “At a time when snowboarders had to fight just to ride, Volcom
http://theberrics.com/interrogation/geoff-rowley.html.
Shop-Eat-Surf.
8
http://www.grindtv.com/lifestyle/culture/post/the-volcom-difference-with-founder-richard-woolcott/.
6
7
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became a force. And when the amateur surfing scene that [Volcom co-founder] Wooly participated in began to
melt down under the weight of political infighting, Volcom rewrote the book on it, and gave kids even more
opportunities (free entries, huge prizes, big stages) with the VQS Series that’s since gone global across sports.”
Volcom has built its authenticity from the ground up, enabling a new generation to explore action sports opportunities that were not available in Volcom’s infancy.
Globalization of the brand—skateboarding is now a global cultural phenomenon. Its original capital is
Southern California; however, the monopoly on innovations, tricks, and fashion is gradually being shared with
other countries where the sport is popular. The recent XGames in Brazil demonstrated the reach of action sports.
While skaters all over the world will continue to look up to top riders in the U.S., it is natural for top foreign
talent to evolve into the higher circles of the sport. The globalization of structures and process is already under
way at Volcom, but the task of localizing the strategy in major markets represents a critical challenge.
Authenticity Within an Empowered Generation
The youth of today have the means and access to develop all types of their own creativity, from designing their
own graphics, shaping their own boards, to even writing their own songs. Volcom encourages its athletes to
engage in these activities, which humanizes these athletes in such a way as to make them more relatable to the
average consumer, ultimately creating greater brand loyalty.
Volcom has been known to have riders who some might consider are a little more unpredictable, more
willing to take bigger risks, and clearly defiant of traditional mainstream conduct (prime examples are Ozzie
Wright, Dustin Dollin, and Mitch Coleborn). This is no accident; with the plethora of brands and the abundant
homogeneity, it is extremely difficult for a brand to stand out as innovative and original.
Volcom’s Longevity
There is a very fine line to walk between being a successful, profitable company and still remaining respected
and embraced by the core. What does the future hold for Volcom? That is where the real challenge lies. There is
a movement among companies to focus more on the core athletes within a particular action sport. For example,
Quicksilver dropped Kelly Slater, 11-time world ASP championship, yet still retains Dane Reynolds, a surfer
who has never won a single event and yet is idolized by a generation of surfers for his radical freethinking and
cultural liberty. When asked about progression within skate culture, Geoff Rowley from Volcom says, “We’re all
a product of our environment. I think there was a trend in skateboarding for a little while to master the tricks
forwards, backwards, and every which way: catch them all high, catch them all the same. When you do that,
you homogenize form. That gets a little too controlling and creatively confining.” In order to remain relevant,
brands must focus on constantly evolving. Volcom, from its inception, has focused on challenging the industry
standards of originality and creativity, putting them in optimal position for future success.
Bibliography
• History info: http://www.volcom.com/company/
• Screenshots from Hoovers: Volcom 2—http://subscriber.hoovers.com.ezproxy.t-bird.edu/H/company360/
people.html?companyId=138237000000000
• Interbrand info on action sports: http://www.interbrand.com/Libraries/Articles/boarding_paper_12-5-2011.
sflb.ashx
• Action sports revenues: http://www.therichest.com/business/the-most-successful-action-sports-companies-2/
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