Russell on attack in NZ market

By SIMON HENDERY marketing writer

Former All White captain and striker Earle Thomas is in attack mode again.

This time the goal in his sights is a growing share of the transtasman sporting goods and clothing market.

Thomas is the Melbourne-based New Zealand and Australia managing director of Russell Corporation - a global name in sports clothing which, through its Russell Athletic label and other brands, turns over more than US$1.2 billion ($2 billion) annually.

In April this year Russell bought sporting goods company Spalding, and Thomas says the acquisition gives the company the opportunity to increase sales by combining its strengths in both the clothing and equipment side of sport.

An All White from 1967 to 1980, and the team's captain in 1976, Thomas began working for Spalding in New Zealand 12 years ago then moved to Australia to take up the Australasia managing director's job seven years ago.

Following Russell's acquisition of the business this year, Thomas moved to a similar role with Russell, which includes responsibility for Spalding.

He says the company will seek to raise its profile in New Zealand by increasing its sponsorship activity. It is currently a sponsor of North Harbour rugby, but is looking at becoming involved with other codes.

"We're looking to grow through sponsorship but we're not big enough to just outlay a lot of money and not look at any return - we've got to look at the return."

In the US, Russell has been involved with university and club teams, and it is associated with 15 Major League Baseball teams.

"Obviously that's not a big sport in this part of the world but because we're geared up to do that we can get geared up to do other sports as well."

Thomas says the retail environment for sports goods in New Zealand is steady but not growing, with golf particularly tough as a result of the proliferation of golf retailers following a boom in the sport in the 90s which has driven down margins for suppliers and retailers.

He says there are advantages and disadvantages to the New Zealand market being dominated by two large retailers - Rod Duke's Rebel Sport and to a lesser extent Sterling Sports. While the chains offer stable opportunities for suppliers, there is a need to stay onside with them if you are to sell in any volume in this country.

New Zealand and Australia are the only markets where Russell and Spalding are being run as one business, but Thomas says if the trial proves successful, the concept might be tried elsewhere.

Corporate play

1876 - Spalding Sports is founded by Hall of Fame pitcher Albert Goodwill Spalding.

1902 - Russell Manufacturing Company (later to become Russell Corporation) is founded with Benjamin Russell as president. The company's assets include eight knitting machines and 12 sewing machines.

1908 - Spalding markets the first dimpled golf ball.

1992 - Russell Corp's Russell Athletic brand becomes the official supplier of uniforms for Major League Baseball and holds the rights to market authentic game jerseys and pants.

2003 - Russell Corp buys Spalding, excluding some golf brands, for US$65 million ($109 million).