In the first instance, it is a truly international group with the majority of its sales and profits coming from the US and Europe. And the blue sky in this business is now capturing a better slice of the North American market. But the real story behind the company is its ability to maintain and manage its Billabong brand. In terms of size and the exploitation of its label, Billabong has been a real success story. The design and marketing has been driven by people who live the Billabong lifestyle, while management of the group has been left to those sporting at least a couple of grey hairs and early signs of a bald patch.
Merchant roams the world following surfing competitions, which Billabong regularly sponsors.
And it has not deviated from its target market. While it has expanded its product range to cover surfing and extreme sports, it is still marketing and distributing to the same type of buyer. Surfers, snowboarders and roller-bladers can all buy clothing and accessories branded by Billabong. However, as adept as Billabong is at nurturing its brand, there is no guarantee that this will translate into a successful listing. Firstly, it is small and will not be a mandatory stock in anyone's portfolio.