December 12, 2003

Freeskiers niche market for Fate Clothing, but line starting to expand

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BOULDER — A growing number of skiers and snowboarders who want to differentiate themselves on the mountain are turning to local apparel manufacturer, Fate Clothing.

In competition with big-name brands such as Burton, Spyder and others, the Boulder-based independent distinguishes itself by combining functional clothing with uncommon styles and colors.

“I wanted to make ski clothing that had an urban influence,” explained Founder Alan Ortiz about his reason for launching the company.

Ortiz started Fate in 1994 with $20,000, obtained through a loan from a friend and money he gained by refinancing his truck. Fate’s first product was a pair of mogul ski pants for competitive skiers. The pants featured patches on the knees to make it easier for judges to see the turns.

“I wanted to make cooler looking stuff for those conditions,” Ortiz added.

In the beginning, he supplied cash to the company through money he was making remodeling homes. He bought a series of houses, then sold them at a profit. His big break came in 1998, when he obtained an undisclosed amount from an outside investor to move production to China.

“We do all our own design and testing, then the clothing is sewn overseas,´ said Ortiz. Currently, Fate has two employees, Ortiz and Designer Kevin Morningstar.

To date, the company has approximately 50 pieces in its snowboard and ski clothing lines for men and women. In addition to its snow apparel, Fate is expanding to include garments for other sports. The company offers one-piece suits for snowmobiling and will have clothing available for motocross by next summer. Morningstar and Ortiz selected these and other sports based on activities that they both enjoy.

“We took a niche, like riding motocross, and found there was a need for technical clothing. We initially used skiwear and made modifications to it,” Ortiz said. “From the research we conducted, motocross is probably one of the fastest-growing sports.”

Fate also has created a limited street-wear offering of pants, shirts and lightweight jackets and has partnered with Paul Turner of Maverick bikes, Boulder, to create a line of bike jerseys.

Despite these other markets, however, Ortiz said that the company’s main push for sales and distribution remains with ski and snowboard apparel.

Fate’s first-year sales totaled $32,000 and during the following three years, Ortiz said, sales grew by 100 percent each year. Since 1998, sales have continued to increase annually by 30 percent. For 2003, Fate is on track to achieve $1 million in revenue. By February 2005, Ortiz expects to double this number through the help of eight independent sales representatives.

To sell its products, Fate currently relies on three different channels. One is its site, www.fateclothing.com, which generates approximately $300,000 in annual sales. Additionally, Fate targets apparel for teams and has sold resort uniforms this year to Taos Ski Valley and Wolf Creek near Pagosa Springs. Fate Clothing also is available at about 70 specialty shops throughout the United States.

“We’re looking to sell to chains, too,” Ortiz said. “We need bigger accounts to support the line. Our goal is to expand as much as we can and not sell out too much.”

Locally, Fate apparel is sold at Boulder Ski Deals and according to Jeff Ehring, merchandising manager, Specialty Sports, which owns Boulder Ski Deals, the manufacturer has a devoted following. Consumers began asking before the ski season began about when Fate Clothing would arrive in the store, he said.

“Fate serves a small segment of the market. It is focused on young skiers who do bumps and freeskiing, which is a market that’s growing,” Ehring said. “The advantage that Fate has is that this is not the same old ski clothing. Fate has fresh new colors and styles, and that sets it apart from other manufacturers.”

To honor the company’s focus on freestyle skiing, Fate started a Landon Sawyer Internship Program this year. Sawyer, a nationally ranked freestyle skier and member of the University of Colorado Freestyle Ski Team, suffered a fatal skiing accident Feb. 1, 2002. Through the internship program, two students from CU have joined Fate to learn about the business and the ski industry.

“Our niche is the competitive skier and the freeskiing market. We were one of the original companies to focus on this niche,´ said Ortiz, who added that the number of freeskiers, ages 18 to 34, increased by 20 percent from 2002 to 2003.

Yet, Fate Clothing can be used by any snow sports enthusiast, which means the 7.4 million Americans who participate in alpine skiing and the 5.6 million people who participate in snowboarding, according to the National Sporting Goods Association, are also fair game. But despite Fate Clothing’s potential for mass appeal, one of its best qualities, said Ortiz, is that it is not ubiquitous like big-name brands.

“Our clothing is cooler. It’s designed better. It’s unique — not everyone will have it,” he said.

BOULDER — A growing number of skiers and snowboarders who want to differentiate themselves on the mountain are turning to local apparel manufacturer, Fate Clothing.

In competition with big-name brands such as Burton, Spyder and others, the Boulder-based independent distinguishes itself by combining functional clothing with uncommon styles and colors.

“I wanted to make ski clothing that had an urban influence,” explained Founder Alan Ortiz about his reason for launching the company.

Ortiz started Fate in 1994 with $20,000, obtained through a loan from a friend and money he gained by refinancing his truck. Fate’s first product was a pair of mogul…

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