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Shred partnerships to build on demand for high-end winter sports and bike gear

Ted Ligety with the Gravity from Shred/ Sam Decout.

At a retail price of nearly €220 for some of its most-wanted goggles, Shred is taking a resolutely technical positioning.

The Italian company wants to spread that through a slew of distribution agreements as well as a new partnership started with Dolomiti Superski, which groups together some of Italy’s most famous resorts.

Carlo Salmini, Shred’s chief executive, reckons that the brand could help specialist retailers to build up a more differentiated offering, with Shred to target committed skiers, snowboarders and riders.

Pushed by Ted Ligety, the U.S. former professional skier, the brand started off in the ski business, providing goggles, helmets and protective gear. It later expanded into the mountain biking market.

The higher-end price is based in part on Shred’s “contrast boosting” lens technology, which was developed in partnership with the MIT Sports Lab. Ligety’s active backing as chairman and chief brand officer underlines the focus on performance. His trophy cabinet features two Olympic gold medals and five world championships.

Based in Salt Lake City and Mestre, in northern Italy, the brand is sold in about 500 specialist stores and online. Shred’s own online shop makes up about 30% of its sales, and it boasts that over 45% of buyers on its online store are return customers.

Salmini says that the three-year deal with Dolomiti Superski could help Shred build up more of such loyal customers. The group covers 12 resorts, including Cortina d’Ampezzo and Val Gardena.

About half of Dolomiti Superski’s customer base is from Italy, but the remainder is spread between Germany, the U.K., Eastern Europe and other markets. “They tend to be high-spending and demanding customers, which is the right fit for Shred,” Salmini said.

Perhaps just as interestingly for Shred, Dolomiti Superski is included in the Ikon Pass from the U.S. This means that Ikon Pass holders are allowed five or seven days of skiing in Dolomiti resorts.

Owing in part to Ligety’s commitment, Shred already makes 40% of its sales in North America, but the Ikon connection could help to reach many more potential buyers.

The entire deal provides exposure for Shred on social media, on Dolomiti Superski’s website, on their app and through gamification. Skiers who achieve a specific level of vertical drop in a day can earn Shred badges, and perhaps even win products at the end of the season. Joint events are another way to leverage the agreement.

This comes as Shred is starting new distribution partnerships. It has teamed up with ILP in Japan, Helia Trade in the Czech Republic, 4Seasons Sports in Poland, and B-stedt for Sweden and Norway. The Italian market is covered by an agency, The Group Distribution.

Shred was already sold in these markets, but Enrico Soffiati, the brand’s chief operating officer, said that the latest partnerships could help to more consistently implement its five-year strategy.

This plan was launched last year by Salmini and Soffiati. He joined Shred two years ago, after other assignments at Head, Rossignol, Tecnica Group, Coleman and Dainese. Soffiati is a shareholder along with Ligety and Salmini, an MIT graduate, who co-founded Shred in 2006. An angel investor from the U.S. came on board in 2014.

Shred competes with brands such as Fox and Leatt in mountain biking, Sweet Protection and Burton’s Anon in skiing and snowboarding, and Poc in both.

“We want to build up a leading position in the high-end market, and to at least double or triple our presence in the markets that we cover,” said Soffiati. “This means we need to step up in distribution in some markets.”

The brand’s own retail sales are continuing to grow, with an uptick of more than 25% online from the start of this year, compared with the same period last year.

Shred’s managers said the sales rise has come from a significant uptick in average order value, as well as a growing number of purchases.

“The inventory issues we’ve seen in the market show a clear need for retailers to find a proper mix of brands and products,” said Salmini. “It’s not helpful if all stores in resorts sell the same products from Oakley and Smith. We can help retailers fill key assortment gaps, with products that demanding skiers actually want.”

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