KMD Brands: A global growth story

KMD Brands has transformed from a single outdoor adventure brand established in 1987 to a global, multi-channel operation with a presence in 8,000 locations worldwide.

This remarkable journey of expansion and diversification showcases the company’s strategic vision and adaptability in the competitive outdoor retail market.

KMD Brands’ growth trajectory has been marked by key strategic acquisitions. The first was in 2018, buying the American outdoor footwear company Oboz. This diversified KMD Brands’ product offering and supported in gaining a strong foothold in the North American market.

In 2019, the acquisitions continued with the iconic Australian surf brand Rip Curl. This allowed KMD Brands to capture the global surf market and significantly strengthen its international presence.

In 2022, the company rebranded from Kathmandu Holdings to KMD Brands, unifying its diverse portfolio under one group structure. It defined its vision of being the leading family of global outdoor brands – designed for purpose, driven by innovation, best for people and planet.

Global expansion

To fulfil the promise of KMD Brands' vision, pursuing global expansion has been integral. Ben Washington, Interim Chief Financial Officer of KMD Brands, highlights the complexities of managing global expansion.

“Integrating these existing businesses under a new group structure has been quite complex and challenging. We found ourselves managing 30 separate banking relationships, which created inefficiencies. So, we consolidated to just two: a local bank in Australasia and HSBC globally, who supports us across Australia, New Zealand, Europe, the UK, Brazil, Indonesia, Thailand and the USA.”

This process of consolidation has yielded significant benefits for KMD Brands, as Ben explains.

“First and foremost, the savings were substantial. By simplifying our relationships, we found approximately NZD 1 million in annual cost savings. I would say there was also an upgrade in the capabilities offered.”

Cody Martin, Business Development Manager for Global Payment Solutions at HSBC New Zealand, highlights.

“With the complexity of KMD Brands’ global business, managing 11 currencies on any given day, HSBC offers solutions that centralises their Liquidity Management and Treasury Operations. HSBCnet – our online banking platform – provides visibility and real-time access to all KMD Brands accounts globally, ensuring payments and FX transparency that empowers informed decision-making.”

As KMD Brands continues its global growth, it’s committed to several key priorities.

They are keenly focused on digital transformation, which involves accelerating e-commerce platforms and all digital capabilities.

There’s a strong emphasis on ESG and maintaining their B Corp Certification. It’s embedded into the company, from how supply chains are viewed to product innovation to being seen as an employer of choice.

KMD Brands also sees sustainable financing as the way forward. They are part of a sustainably linked lending syndicate and are exploring sustainability-linked supply chain financing with HSBC.

HSBC’s role in KMD Brands’ global success

Rebecca Paine – Country Head of Global Payments Solutions at HSBC New Zealand, emphasises the Bank’s comprehensive support of KMD Brands.

"Our multi-jurisdictional coverage compliments KMD Brands’ footprint, allowing us to provide real-time, in-market support to their global subsidiaries while maintaining centralised visibility and accountability to Global HQ.”

As KMD Brands continues to pursue its global growth ambitions, its partnership with HSBC remains crucial.

Ben adds, “HSBC has been there for us whenever and wherever we’ve needed them. Whether financing acquisitions or providing advisory services for market expansion, no challenge is too big or detail too small for them.

HSBC is our trusted partner when managing financial risks across multiple regions. Their on-the-ground support in new markets, like Vietnam, has facilitated our set-up there, as we work in a new location, jurisdiction, and in another currency. I can’t emphasise enough: if you have global ambitions, you need a global partner.”