Rip Curl (1969), the company review

Marketplaces for Sports and Outdoors

I’ve spoken about this before, but it should be reiterated. I believe that the importance of marketplaces cannot be overstated, if only to check what people are actually buying. We all think that ours is best, special, wanted and certain to succeed. But we also know that isn’t true when we remove the confirmation bias.

Marketplaces will be a big part of CRUA’s plans for 2025. And yes, before some of you highlight it - I was a non-believer! I remember getting an old tent returned instead of our $2k Loj tent. We never got our reimbursement. I let this and a few other experiences cloud my judgment. The pros outweigh the cons, in my opinion. But losses should be built into the business plan. & benchmarks exist.

Pros:

• Sites that sell a product or service often have a conversion rate of 1 to 2%. When it comes to Amazon, though, this number is substantially greater. Amazon listings have a conversion rate of 10% to 15% on average. Prime members had an even higher percentage. Anyone who has been in eCommerce for a while knows it’s all about conversion.

• Correct type of traffic - looking to buy - so Amazon supplies ‘Top of Funnel’

• Branding ability and A+ content make it much easier to stay true to yourself

• Confidence - it can sometimes suck for sellers, but Amazon creates a confidence among shoppers with their reputation, and, crucially, their returns policy

• Very effective advertising platform now

Cons:

• The customers are not your customers - the data belongs to Amazon - this is a key factor when it comes to CPA and LTV, as you don’t have direct access to the customers

• The main goal of any marketplace is to attract as many sellers as they can, so they can build a customer database at the sellers expense. Thus, they can obtain lots of valuable information about different sectors in one move, and that’s how they detect new business opportunities and take advantage of them.

• Competitors are brought to your table - double edged sword

• They can be your ‘boss’ - you must play by their rules - lose some independence - high requirements

• Returns policy is extremely loose - note

All said, getting the level of insight that’s now available makes a very good case for a marketplace first business model. We’ll delve into the figures further next week, as we’ve done a huge amount of work on this recently. I’ve also come across lots of ‘Amazon-first’ businesses that are hugely successful. We’ll delve into them in due course. Here’s a start on some figures:

The Rip Curl Story: From Backyard Beginnings to Global Surf Brand

Rip Curl, a name synonymous with surf culture, has grown from a modest Australian venture to one of the world’s leading surf brands. Over the decades, to be fair, it has epitomized the spirit of innovation, passion for surfing, and commitment to quality (mostly!) This chapter delves into Rip Curl's journey, charting its rise from a backyard enterprise in Australia to a global powerhouse in the surf industry.

now, back to Rip Curl..

The Founders and the Birth of Rip Curl (1969)

The Rip Curl story begins in 1969, in the coastal town of Torquay, Victoria, Australia. Two friends, Doug “Claw” Warbrick and Brian “Sing Ding” Singer, shared a love for surfing and a desire to contribute to the burgeoning surf scene. At the time, surfing was more than a sport—it was really a lifestyle that demanded commitment, innovation, and creativity. Warbrick and Singer were inspired by the vibrant culture surrounding the waves, but they also saw a gap in the market for quality surfboards, specifically tailored to Australian conditions.

Initially, the duo’s focus was surfboard manufacturing. In their backyard workshop, they began crafting boards under the Rip Curl name—a name chosen for its connection to the ocean and its playful, rebellious undertones. “Rip” captured the excitement of the sport, while “Curl” symbolized the perfect wave.

In November of that year they realised they needed a better spot than the garage. So they went and found the Old Torquay Bakery at 5 Boston Road and for the princely sum of $10 a week rent they moved on up.

The Pivot to Wetsuits (1970s)

While surfboards were their first venture, Warbrick and Singer quickly realized that surfers needed better gear to brave Australia’s often cold waters. In the early 1970s, Rip Curl shifted its focus to wetsuit manufacturing, a decision that would prove pivotal to the company’s success.

“In December 1969 another local surfer, Alan Green, joined the duo and they started making wetsuits to complement the boards in the basement of a house in Beale Street behind the Torquay Pub. Greeny had spent some time at a wetsuit dive company "Australian Divers" and they found a sewing machine, a "Pffaf 138 zig zag", which worked on thick rubber sourced in Clayton in the back-blocks of Melbourne. Outsourcing much of the work at first, they soon realised that to keep up with orders and get the quality they wanted, they needed to do it all themselves so the wetsuit operation moved into Claw's flat at 66 Zeally Bay Road.”

At the time, wetsuits were bulky and ill-suited for surfers. Rip Curl sought to change that. Using (what were at the time) innovative materials and designs, they created wetsuits that were lighter, more flexible, and better insulated. This development not only revolutionized surfing in colder climates but also positioned Rip Curl as a company that understood and addressed surfers' needs. This is a key point - a deep understanding of a real problem, and a ‘painkiller’ solution - not just a nice-to-have vitamin.

The slogan “The Ultimate Surfing Company” began to take shape during this era, reflecting their mission to provide surfers with everything they needed to chase waves, no matter the conditions.

“The first Rip Curl Pro in 1973 was very small indeed, with surfers competing for cash prizes which amounted to little more than their petrol and living expenses, and considerably less than their airfares! But the contest, won by the legendary Michael Peterson, set the wheels of the professional train in motion.”

“More than 20,000 people watched the memorable 1987 final when 17-year-old Nicky Wood showed judgement and skill beyond his years to defend fellow rookie Richard Marsh in a balls-and-all final.”

Expanding the Brand (1980s)

By the 1980s, Rip Curl was well-established in the Australian surf community. However, the founders had their sights set on international markets. This decade marked Rip Curl’s foray into global expansion, particularly in the United States and Europe. The company opened distribution channels and partnered with reputable retailers to bring its products to a wider audience.

Rip Curl also began diversifying its product offerings. In addition to wetsuits and surfboards, the company introduced a range of surfwear, including boardshorts, T-shirts, and accessories. This move not only broadened its appeal but also positioned Rip Curl as a lifestyle brand hence increasing awareness, and revenues.

Numbers and Growth

By the mid-1980s, Rip Curl had firmly established itself as a key player in the surf industry. While specific financial details from these years are scarce, the company was growing at a steady pace, with its revenue largely driven by the popularity of its wetsuits and surfwear. This period also saw the emergence of Rip Curl as a sponsor of major surfing events, further cementing its reputation within the surf community.

The Search: A Marketing Masterstroke (1990s)

The 1990s were a transformative decade for Rip Curl, marked by the launch of “The Search.” This campaign wasn’t just about selling products; it was about embodying the spirit of adventure and exploration that defines surfing. "The Search" was a global marketing initiative that encouraged surfers to discover new waves and embrace the freedom of the surf lifestyle.

The campaign resonated deeply with surfers worldwide, creating a sense of community and aspiration around the Rip Curl brand. It also established Rip Curl as a thought leader in surf culture, setting it apart from competitors.

During this time, Rip Curl expanded its athlete sponsorship program, signing some of the biggest names in surfing, including Tom Curren and Mick Fanning. These partnerships not only boosted the brand's visibility but also aligned it with the pinnacle of surfing talent.

Embracing Technology (2000s)

As the new millennium dawned, Rip Curl continued to innovate, particularly in wetsuit technology. The company introduced the Flash Bomb wetsuit, which featured quick-drying materials and superior insulation. This product was a game-changer, earning industry accolades and again solidifying Rip Curl's position as a leader in wetsuit innovation.

Rip Curl also ventured into digital technology with the development of the Rip Curl Search GPS Watch, a device that allowed surfers to track their surf sessions, including wave counts, speeds, and locations. This blend of technology and surf culture demonstrated Rip Curl's ability to evolve with the times while staying true to its roots.

Sustainability and Social Responsibility

As global awareness of environmental issues grew, Rip Curl made sustainability a key focus. The company introduced initiatives to reduce its environmental footprint, such as using recycled materials in its products and packaging. Rip Curl also supported ocean conservation programs, aligning its brand with the protection of the sea. Whether this was born out of a genuine fear or just that it seemed like a good line to put out. Goodonyou.eco rates Rip Curl as; Overall rating: Not Good Enough

We rate Rip Curl as “Not Good Enough” overall based on our research. For a brand that claims to be acting sustainably and respecting people and the planet, it needs to be doing much more on all fronts. Rip Curl should start by strengthening its environmental practices, using more eco-friendly and less animal-derived materials, and setting and reporting on its greenhouse gas emissions targets. The brand must also ensure its workers are treated fairly and paid a living wage. Only then might the brand be considered the “Ultimate Surfing Company”

In 2019, Rip Curl was acquired by Kathmandu Holdings Limited, a New Zealand-based outdoor apparel and equipment company (also owns Oboz), for AUD $350 million. This acquisition marked a new chapter for Rip Curl, bringing it under the umbrella of a publicly traded company and providing resources for further growth and expansion.

Today, Rip Curl generates an estimated revenue of over AUD $500 million annually, with operations in over 60 countries. Its products are sold in dedicated Rip Curl stores, as well as through major retailers and online platforms. Safe to say that it has come a long way since its inception in that shed.

Key Milestones Again

• 1969: Founding of Rip Curl by Doug Warbrick and Brian Singer.

• 1970s: Shift to wetsuit manufacturing; launch of innovative, surfer-friendly designs.

• 1980s: Global expansion and diversification into surfwear.

• 1990s: Launch of “The Search” campaign; sponsorship of top surfers.

• 2000s: Introduction of groundbreaking products like the Flash Bomb wetsuit and Search GPS Watch.

• 2019: Acquisition by Kathmandu Holdings Limited.

• 2020s: Continued innovation and (questionable) focus on sustainability.