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  Zoo York Brand Manager Seamus Deegan

At Agenda, I caught up with Seamus Deegan, brand manager for Zoo York, to see how the brand is doing after being acquired by Iconix in October of 2009.

 

Deegan said most of the changes under the new owners have been on the back end.

 

“The overall marketing direction and brand aesthetic has remained exactly the same. I am still sitting in same desk and place I’ve always been,” he said.

 

Iconix owns the trademarks for Zoo York as well as brands like Ecko Unlimited, Marc Ecko, Peanuts, OP, and the Rhino logo.

 

Deegan explained that Iconix runs the marketing and brand management, and licenses the design, sales and production for many of its brands.

 

In Zoo York’s case, the licensee KHNY is now producing Zoo apparel, and its accessories and hats are being licensed under Concept 1. The licensees both do sales as well as production for the items.

 

Additionally, the brand recently signed with the licensee D6 to manufacture its complete skateboards and helmets. That will start in January of 2011.

 

Deegan said while it may seem confusing in the short term, Iconix is actually helping Zoo operate as a bigger brand, especially when it comes to working with factories and manufacturing items.

 

I asked him how a retailer buys Zoo York under the new arrangement. It would seem they would have to contact different reps for Zoo hats and Zoo denim.

 

“It’s a formula we are working through,” said Deegan. “From the front end, in many cases, the guy selling boards can still sell Ts and hats. From a billing standpoint, we are still working through it. We’ve only been doing this since the beginning of the summer and some of our licensees have only been filling existing orders or don’t kick in until Spring 2011. The new, internal structure sounds crazier than it is.”

 

Despite growing pains that most companies go through under new ownership, Deegan said the brand, which had flattish sales last year and was impacted by weather on both coasts, is implementing new strategies to grow.

 

On page 2: Growth plans, mid-tier line, new categories

 

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Growth plans, new mid-tier line

First, he said, it is offering a more streamlined selection of products.

 

The brand has also opened up sales to the mid-tier channel, selling this fall to JC Penney and Kohl’s. Deegan said Zoo has created a separate product line for the channel that is totally different from what is sold to specialty core stores, and that so far sales have been positive.

 

On the core side, he said the brand is paying much more attention to how it services specialty shops that have supported them since the brand started in 1993.

 

The Zoo team will also continue to design all skate decks in house and manufacture all its pro model skateboard decks at the Chapman factory in Long Island, New York. Even though the margins are slimmer, he said, that’s where Zoo has been making its skateboards since the brand started in 1993.

 

Deegan said a small percentage of Zoo decks – namely price point decks – will be made through its China factory.

 

The licensee D6 will only manufacture complete decks and helmets for the brand starting in January of 2011.

 

Deegan said one of the biggest results of getting acquired and going through the rough economy, is that it forced Zoo York to make changes.

 

“Every brand has gone through so much turmoil in the last few years, and we had to rethink how business was done. Our distribution is growing, we might have better resources from a factory standpoint, but we’ve remained the same company we have always been, remaining as strong, if not stronger than before.”

 

New categories

He said one of the biggest advantages about being under a new owner is that the brand will continue to expand.

 

“We are continuing to look for opportunities to grow in categories that make sense to both the brand and to our fans, this includes planned sunglass and watch lines,” he said.

 

For watches, Zoo is partnering with Geneva Watch Group, and is currently doing a soft test of the line. The line is expected to debut in stores for Spring 2011.

 

For sunglasses, the brand partnered with Icon Eyewear and plans to launch the category next summer.

 

“Zoo is growing and evolving rapidly but we are not losing sight of the roots, original direction and spirit of the brand. This is what my team and I work day in and day out to ensure,” Deegan said.