Transworld Business Exclusive: Dragon Goes Independent, Breaks Ties With Luxottica
kailee bradstreet
- June 13 2008
- 2,818 views
- 30 comments
Will Howard (far left) and Aaron Behle (far right) celebrate at Dragon’s Carlsbad, Calif. headquarters.
Still soaked from a champagne celebration and coming off a 72-hour period with no sleep, Will Howard, founder and CEO of Dragon, showed up Thursday afternoon at Transworld Business to announce that his brand had just become independent of parent company Luxottica.
The deal, which closed less than three hours earlier, was a time consuming project that he and Dragon’s General Manager Aaron Behle had been working on for the past six months. By branching out in a separate direction and becoming a privately-owned company, Dragon – which produces sunglasses, goggles and accessories - hopes to reconnect with the core retail specialty shops and renew the energy that originally drove them to create the brand. Read the full press release right HERE.
“One thing we wanted to do was define ourselves from the parent company in branding and product presentation,” Howard said. “I think there has been a history there that our designs are just sort of copies of someone else’s - there has been that perception. The Dragon product today - it represents who we are, what we are about, and matches up with our DNA, and I think it really matches up with expectations in the market place.”
Since it’s inception, Dragon introduced in 2006 a new co-owner Behle, who was the former vice president of international sales at Reef, and has recently signed on new investors, according to Howard. At the onset, with help from Scott Sorenson and Chuy Reyna, Howard launched the brand with one pair of sunglasses and a stellar team of athletes, including Shane Dorian, Mick Fanning and Chris Roach.
In its early years, Dragon shared a private partnership with Oakley. In 2006, that partnership was disclosed and Dragon began to gain control over its design process, Howard said. While still under Oakley’s wing, Dragon was swooped up by Luxottica, the world’s largest maker of sunglasses, when the Italian company purchased Oakley in June 2007 for $2.1 billion. The merge ultimately helped Dragon become an internationally recognized iconic brand, which is now distributed to more than 35 countries world wide, according to Behle.
“One of the great things is you get an MBA education by working with a big engine and props to Luxottica - those guys are pros,” Behle said. “It’s like going to Harvard and getting the exposure to the big business and the big world and the opportunity to see the view point of tier one production and distribution, and see the big issues - legal issues, international marketing issues - all the great things, and then be able to take the best of that and simplify it down to small business.”
While Howard and Behle stressed that the deal strengthened Dragon, helping it to further develop and solidify business and marketing practices, the co-owners both agreed that falling under a larger umbrella has its disadvantages, as well.
“When you are small and you become part of a big company, you can lose sight of what you are are doing,” Howard said. “What we have now is the opportunity for those at the brand and those coming into the brand to take ownership. You want to be engaged in something you believe in, and now we have that kind of ‘rally around the flag’ type of situation with our employees.”
Now that the company is on its own, not much will change with the product manufacturing and distribution, but Dragon says it will make a conscious effort to get back out into the action sports community and get back in touch with its roots.
“Our 100 day plan is reconnecting and going back to the power of the brand and what makes retail really special,” Behle said. “It’s gotten to be so much about numbers and we need to get back into making relationships. It’s about balancing the brand equity bucket with the revenue bucket.”
Here’s a video clip of the celebration at Dragon Headquarters:
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June 13th, 2008 at 9:30 am
Dragon is going no where. All the best guys have left there as it is made up of the MBA mentality with no authentic DNA. Aaron was better off on the real world or getting crushed in the hedgefund business. He doesn’t surf or skate and didn’t grow up in our lifestyle. Support brands like electric, volcom, or Jeremy Heits new brand as these are brands with smart and authentic people. Aaron is smart but has no authenticity and the retailers see this. You can’t just say “Ok time to think about the relationships vs numbers” These relationships at other companies started when they were 12 years old as they lived in So Cal and lived the lifestyle.
Authentic leadership is key!!!
Just my take.
June 13th, 2008 at 3:19 pm
Seems like a pretty dated take Joe Blow. Don’t know Aaron. don’t particularly like Dragon…in fact the brand sort of leaves a blank feeling in me.
But if they want to refocus the brand towards specialty and establish relationships in a credible way, well, they’d be going the opposite direction of a lot of brands right now. I’m sure a lot of people reading this story wish they could make similar statements about the future direction of the “brand they bleed”.
2 cents.
June 13th, 2008 at 3:24 pm
It’s epic news that finally a brand, not a person, has decided to step outside the box and not get caught up in the monopoly that the surf industry has become. Brands buying brands, just to make more money and keep shareholders happy. Not really ‘core’ in my mind and not in the best interest of the industry.
Make it rain Dragon. You guys are now in the box seat to weave you way through the corporate nightmare and really react and solidify youth culture.
June 13th, 2008 at 3:34 pm
Dragon was sick back in the day though… like ‘95 - around that time. The “Mace” model and a few others were really nice glasses that had a big “buzz” about them. The ads were tight too, “newer faces” then like Donovan & Machado - cool subtle ad details, like surf action shots with the surfer’s shadow being the silhouette of the dragon logo (sweet). Stuff that got the youth pumped to rep the brand. There was a time when it was considered “cool” to have that Dragon logo somewhere on your board… thank you Taylor Steele & the “New School”…
Now it’s all pretty watered down. There is no defined look to their product and there’s no “hook” to the brand message…. it’s sad really. Still a relatively deep team, involved in multiple sports but there’s not any big thing that separates Dragon from the pack. They need innovation, they need a brand message and they need a clean/unique ad campaign & overall image.
It is funny to say that they are going to think about relationships vs the numbers now… why would they not have thought of that before? Now that they’re on their own, they see the importance of a support network… makes sense I suppose. Everything is a sale though, and you really don’t get numbers/sales without their first being some relationship at some level… funny.
Maybe take it all back to the original brand look? Is Machado still on board? Run some signature forehand snaps at mid-day light with a reincarnation of that Dragon logo shadow… blend it with a lifestyle shot of the Mob rockin’ some fresh shades, highlight or showcase a new unique feature. Who knows…. good luck…. do something cool, that’s easy enough right? “Do something cool…” ha….
June 13th, 2008 at 6:32 pm
I love when kooks think that bashing a company for what ever reason is cool. You can go through every manufacture in the Action Sports industry and easily pick apart bits and pieces of their program or individuals associated with them. The bottom line is, this industry has gone so far away from the soul of the sports themselves that is has changed even the way we look at the participation factor. The point I am trying to make is, Dragon and their founder has taken a big step in trying to go back to the “core” of what this industry was founded on.
Rock on Dragon!!!!!!
Many will support you in your efforts.
June 13th, 2008 at 8:27 pm
Bad choice breaking away from Luxottica Will. Luxottica was going to take Dragon to new distributions you couldn?t get in the past. Your days of being core are over! Once all the core shops found out that you were owned by Oakley for all these years they lost any trust or authenticity you ever had. You were much better off chasing numbers in the 909 while you still could. It?s pretty obvious that your going to come out and knock off all the brands that actually are authentic. Although that?s what you know, your brand was based off of Oakley?s fear of Arnett’s ?Catfish; therefore your brand was funded by Oakley to compete with their authenticity and now your going to use up all your resources while trying to knock off the new ?catfish?. Your not what our industry needs.
June 14th, 2008 at 12:19 am
Gee you really have to wonder just what happened to the surf industry when you read the bullshit negative comments left on this page. Dragon are taking the initiative!!!!
Since when was letting shareholders or major corporations decide what your brand does become ‘core’????
Stop the bitching. Dragon are leading the way back to what this whole industry was built on. Anti-establishment.
June 14th, 2008 at 8:00 am
You think they did this to all of a sudden become core. They did it to have ownership and make more money. They are not core as they don’t even participate in our sports. They are spreadsheet decision makers.
This industry needs smart guys who have some authenticity or what is difference between us and H and M or Hollister? They actually have some management who can surf. Wouldn’t it be sad if you had the COO of Dragon vs the COO of Hollister in a surf contest and Hollister won? Well that is what we have in this industry. No authenticity.
The shops are not going to support Will and Aaron as they have no authenticity.
This move was for money not for trying to do what you love or be core.
June 14th, 2008 at 1:20 pm
Hate the haters! So, the economy sucks, fuel is at an all time high, and we are headed for, if not already in a recession. It’s no wonder the job market sucks in America, especially when it is comprised of jealous, self absorbed, retards out there “hating” on core companies like Dragon, that helped to create, shape, and mold the industry that it is today! Yes, the action sports industry was born on “core” companies, but name 1 company that started out “core” and hasn’t sold out!!! People in the industry that hate have no idea what the “real corporate America” is, if they did I guarantee they would’nt be hating on the industry. Core is poor fool!!! Wake up idiots!!! The industry is maturing, either mature with it or start pushing a shopping cart. Wise up or the recession will wind us up into a greater DEPRESSION! Soup anyone? F that… GO DRAGON!
June 14th, 2008 at 7:05 pm
Aaron surfs pretty good.
June 15th, 2008 at 3:32 pm
dragon makes some of the greatest gear out there. i would love to be back on there skate team. keep up the sick work.
June 15th, 2008 at 6:36 pm
if dragon stayed with lux it’d probably turn into another arnette. surf glasses are pretty much all the same anyway- electric, von zipper, spy, dragon, anon, whats the difference? in the world of eyewear surf glasses aren’t nothin’. we should be stoked that dragon chose to be core before they lost touch completely
June 15th, 2008 at 7:03 pm
I’ve always found the folks at Dragon to be good peeps - always willing to support local contests and events when they could. Chuy was great when he was there. Checky was great when he was there. Scott Sorensen is still there and he’s a cool cat. I’m stoked for those guys in wrestling back control of their company.
June 16th, 2008 at 7:17 am
I interviewed with the sales manager for a spot in the Southeastern US. I cover surf/skate retail exclusively in this region and the SM said he wanted more boutique style shops vs. core surf/skate. I had always done good clothing lines and thought I could do well with Dragon but was caught off guard that the company wanted to go in a different direction. Anyway, Just a few facts about my dealings. Still seems like a good product?
June 16th, 2008 at 8:20 am
Dragon is in tremendous position to take on the action sports world if it nails down a smart events, team and marketing plan … with the internet and TV networks like Fuel out there now — there is no better time to hit the market strong with a new vision and focus —
From an industry media guy
June 16th, 2008 at 9:41 am
From a consumer standpoint, I could care less who makes or distributes Dragon. I love their shades and have been wearing them for years. All I care about is that stores like Swell.com continue to feature their new styles and make them easy to buy.
June 16th, 2008 at 11:41 am
Wow… looks like a bitter ex-employee is having a field day with this one.
To say that Dragon isn’t core is pathetic. They’ve always had the best team and have been ran by industry icons since its inception.
I’d rather see this brand succeed more than any other in the industry. It’s been long overdue.
June 16th, 2008 at 11:55 am
Name one company that hasn’t sold out…Sex Wax, mad wax.
June 16th, 2008 at 3:59 pm
Here’s a take from someone who’s been involved with Dragon since almost the beginning, but from the other side of the world - little old NZ!
I’ve read the responses and, you may call me biased, but I just want to say that Will Howard is one of the greatest people I’ve ever had the pleasure of knowing. Anyone who says that the management at Dragon are not “authentic” is wrong. I’ve surfed with Will in California, Australia, NZ, & Fiji. I’ve watched him pull into heavy Cloubreak bombs, and get spat out into the channel. I’ve paddled for my life shoulder to shoulder with him on the inside of that reef, with 8ft sets threatening to shred us over knee deep razor coral. The man has balls, and loves those big lefts! Will goes snowboarding in NZ, and rides every season at home. And he’s mad about riding dirt bikes.
Will is smart, intelligent, quick, hard working, dedicated, energetic, confident, eloquent, and witty. He’s committed to his business, as he is to his family. I’ve admired the way he’s built and managed a great team over the years - including the “originals” like Chuy, Kenny, Dave, Scott, Brian, & Jorja. Great people who, while yes some have moved on to other careers, remain good friends through the Dragon family.
The Dragon mystique has always somehow had the power to breach international boundaries. When people strongly identify with a logo and brand in a small country 7000 miles from the head office, you know you have a truly global business.
As any company, Dragon has had to keep evolving - reacting to changes - some of which were beyond it’s control. (e.g. the Luxottica deal). Fighting to take your baby back from the corporate monster is a pretty big deal. Good on ya Will - Bloody Awesome!
The snow is starting to fall - see you soon Mate!
Conan
June 16th, 2008 at 6:33 pm
i like how ALL these skate,surf companies are all saying how they plan to ”reconnect with its core retailer market consumer whatever”. they are left the customer behind in favor of big numbers and the customer didnt follow now its biting alot of companies in the a$$ and the same answer is given, something along the lines of ”core, connecting with customer,making retail friends again etc etc” dragon needs a complete revamp of image and that wack a$$ logo. maybe call it D-gon. ha. suck it.
June 17th, 2008 at 8:39 pm
Elecric, VZ, they have to answer to the man (WALLSTREET) who will Dragon have to answer to? p.s. GOOD LUCK DRAGON CREW.
June 18th, 2008 at 8:51 am
Sounds like a lot of bitter, angry people out there….who are you all to judge Dragon? They’ve been around twice as long as other companies out there and they’re holding strong. Get a life people….be proud and happy for companies like Dragon instead of being bitter, self-absorbed jerks who are pissed about their own lives and jobs so they have to talk crap about everything else. I’m stoked for you Dragon, congrats…..
June 18th, 2008 at 11:14 am
its funny how the guy who made the first comment calls Dragon out and then says that Electric and Volcom are core… youth against establishment my ass! sell outs more like it.
June 19th, 2008 at 11:47 pm
If you don’t have anything nice to say, please don’t say anything at all.
Congratulations Dragon on your renewed spirit of independence.
Do good and lead by example.
June 23rd, 2008 at 3:26 pm
I do support brands like Volcom. In fact, I just picked up some nice Volcom shirts at Costco yesterday. They are so ‘core’.
July 1st, 2008 at 7:34 am
Congrats guys. What ever you do next is inevitable. I’ve always considered the brand to be “cool” but, I’ve never owned a pair (Dragon). I’ve always worn glasses that don’t give me a headache. Won’t mention the brands, that’s not my point. But, according to my surf/skate/snow optometrist friend, bad lenses will give you a headache indicating that your eyes are not being protected. So big “buzz”, cool ads, hooks, lifestyle, messages, new faces, logos etc… How about making a lens that really protects your eyes from harmful UV rays. Was that ever mentioned in any of the marketing campaigns? I’M SURE IT WAS-Let “function” be the fashion. That’s cool? Right?
July 1st, 2008 at 7:45 am
Bulldog Skates
July 31st, 2008 at 8:33 pm
Joke Blow Me…i got something to say….you either got fired and you are a bitter MTF or you just another hater wishing you were part of this team…..keep hating buddy…..i am sure you are not the only HATER out without a job….ha ha…..rock on DRAGON!!!!!!
August 1st, 2008 at 9:10 am
agreed,
youth against establishment? They should now go by youth for establishment.
I hope they volcoms stocks tank
love my electric rep though