Passion takes surfing gear to new highs

By DITA DE BONI

When Craig McDonald saw a surf apparel business for sale, he knew he would be exactly the right man for the job.

A surfer of 30 years and international "kneeboard" champion, he knew he would have the passion to expand the brand in Australia and New Zealand and spook the market leaders.

He is now at the helm of William McDonald & Co and Kareha Clothing, and is the Australasian licensee of Town and Country surfboards and surf clothing, worth between $5 million and $10 million in sales.

Kareha is one of the few companies making surf apparel locally. William McDonald, which supplies interfacing for garment manufacture in New Zealand and Australia, has "trebled its business" despite a dwindling local scene with an "absolute focus" on customer service, says Mr McDonald.

There are few ties between the two businesses, other than some administration. But the merger was born more out of passion than pragmatism.

Mr McDonald moved into the textile business in the mid-'80s after making kneeboards and surfboards.

"Coming back to the surf industry, I feel like I have come full circle and will once again be earning my living from my way of life," he says.

"My first business trip was to Hawaii - I mean, how could I resist it?"

Under the new management structure, the company is gunning for a higher market share of the $300-500 million surfing-related products market in Australasia, especially across the Tasman.

T&C is the third largest in the New Zealand apparel market, but is further down the list in Australia.

The credibility of the brand name is key to growth, says Mr McDonald.

T&C was established in Hawaii in 1971.

Internationally, it competes with other surf brands including Quicksilver, Billabong and Ripcurl.

But it has room for expansion in Australia in particular because the brand name has been "poorly managed" there in the past, Mr McDonald says.

T&C surf apparel is manufactured in New Zealand, Australia and Fiji.

Improving distribution and streamlining procedures in Australia is a key focus.

"There are many layers of fat you find when doing business in Australia, as opposed to New Zealand, which is quite lean," he says.

But there are plenty of rewards. Exact figures do not exist, but industry sources suggest up to 60,000 people, ranging from the occasional surfer to the hard-core purist, surf in New Zealand each year.

"Surfing is becoming more and more popular, with lots of people now wearing surfing clothes as everyday attire and phrases like 'net surfing' giving it a higher profile."

"We will be moving our marketing slightly, to do more sponsorships and partnership arrangements, like our sponsorship of the Raglan surf school instead of just being visible on 'billboard' surfers."

T&C is also working with Waikato surfing reef design company ASR to provide surfing expertise.

ASR has installed a "structure" to complement a project at Narrowneck on Australia's Gold Coast to improve surfing conditions and is looking at doing the same for some New Zealand beaches.

R&D is, Mr McDonald says, one of the most enjoyable aspects of the job. "That's going surfing."

Up at 3 am to get two hours of wave riding at Raglan, he's in his Grey Lynn office by 10 am.

Being a kneeboarding champion has its benefits because he is known by the local surfing community, which definitely helps business, he says.

So does the local business environment, which Mr McDonald says is looking healthy going into 2001.

"New Zealand is a good place to do business - it's really straight-forward, lean and uncomplicated."