Form follows function
Nautica won the affections of consumers with an appreciation for quality-made athletic clothing. Customers were first allured by the clothing's colorful vitality and the unaffected simplicity of the design. However, upon further inspection they would discover that the clothing was very practical, as well. From the material and the tailoring work, to the location of the pockets and the adjustable sleeves, all the way down to minute details like the size of the zipper, Nautica's quality was immediately self-evident.
David Chu maintains that functionality is the essence of design, or as he puts it, "form follows function." If a design strives for novelty in such a way that usefulness is impaired, then the design is a failure. Says Chu: "Nautica doesn't try to be modish. For instance, we haven't done anything with Japanese calico, which is currently in vogue." As to the question of how he, a fashion designer, is able to draw inspiration from clothing as unfashionable as military and hunting apparel, he says: "These kinds of clothing aren't made for the sake of appearances. Scrutinizing uniforms designed with specific functional objectives provides a lot of insights, which helps us to be innovative when designing our own products."
"Fashion innovations can occur in many different forms, like function, appearance, or technology," says Chu. He offers synthetic nylon fabric as an example. In ancient times there was no water-repellant, breathable fabric, and now with this technology at our disposal, "we are compelled to find an innovative use for it."
Nautica has always been imbued with a spirit of integration, combining things Western and Eastern, old and new. Perhaps growing up in the US, a country forged by the wedding of a multiplicity of immigrant cultures, has allowed him to grasp the essence of integration. "Californian cuisine is a big melting pot filled with variable influences. There are restaurants with European chefs who combine French cuisine with Asian seasonings, thereby inventing a new kind of cuisine as a result," he explains. Just as cuisine continues to reinvent itself, design is similarly a process of perpetual evolution, and Nautica continues to advance the torch of sartorial innovation.
The word Nautica itself derives from the Latin word for boat. Chu hopes that the nautical tinge in the brand's hallmark will evoke romantic images of the sea. As someone who has lived all his life near the sea and who often vacations in the Caribbean, appropriating the sea as his company's underlying motif reflects more than just his personal interests, but rather mankind's general seaward yearnings. "Why does everyone want to build houses by the ocean? And why is it that beachside real estate is always the most expensive?" he queries rhetorically.
By 1987, Nautica had become a large-scale, stable enterprise that had started to take its development to a new level. First, they set up a company store with which to forge the brand's image. In 1989 Nautica's business revenue fell just shy of $100 million, and, seeking to grow in new directions, the company began to solicit experienced franchisers. That same year Nautica signed a contract with a Japanese company for the manufacture and sale of its branded products in Japan under license, thus reaching a new milestone in terms of brand licensing and international marketing. In 1994 Nautica was introduced into the mainland Chinese market, and in the same year opened retail outlets in Hong Kong and set up a branch office in Taiwan.
His own brand of philosophy
"After we had our own brand, we hoped to achieve a brand effect." Chu has much to say when it comes the management of his brand.
He maintains that the most important aspect of brand management is ensuring that the brand is able to find its own niche. "If the product isn't unique, then there's just no way," he says. Secondly, it is important to be in it for the long haul. A brand might be a hot commodity for two or three years, but keeping the ball rolling for an extended period is really what counts.
"Products must undergo constant change and revision, but the underlying philosophy behind the process remains fundamentally the same: it is the process itself that is an art," elaborates Chu. He points to Picasso as an example. Though he produced a number of celebrated works, one could say that Picasso was himself a painting, and that he embodied a certain spirit, because, as Chu notes, "All it takes is one look to know that it's a Picasso."
Branching out
In the last 20 years, the Nautica line has undergone incessant expansion. Today, there is little related to a life of comfort that Nautica doesn't sell. In addition to the sportswear series that first established its reputation, there is a jeans series, and a series of competition clothes; there are suits, shirts, swimsuits, and pajamas; there are also a whopping 20-30 different kinds of accessories, such as leather goods, wristwatches, glasses, shoes, perfumes, and skin lotions. Five years ago, Chu extended his domain to include household items like furniture, curtains, sheets, and dinnerware.
Given Nautica's abundant and multifarious product line, it would be impossible to ensure quality if they insisted on direct control of all production. At present, in addition to being responsible for overall product design and marketing, Nautica itself directly operates the production of all sportswear and jeans, with the production of other product lines delegated to other manufacturers. This is a strategy that has in fact been favored by many enterprises.
Tsai Su-lee, head of the executive graduate program at the Graduate Institute of Textile and Clothing in the College of Human Ecology at Fu Jen University, has analyzed Nautica's business tactics. Her results demonstrate that understanding core competitiveness, division of labor, and franchising overseas are crucial factors in the company's success.
"An enterprise needs to take care of the things it does best," says Tsai. Though Nautica has reduced its own production department, it nevertheless has made certain to maintain direct control over such pivotal aspects as the selection of materials and placing orders. By doing so, Nautica is able to guarantee quality products, which in turn advances the label's reputation. In addition to cooperating with others in the productional aspects, Nautica also allows its business partners to share in the responsibility of operating the brand in the marketplace. "David Chu recognizes that the whims of the market are as fickle as the tides. One has to be vigilant at all times, because it doesn't take much for everything to change," comments Tsai. Besides allowing Nautica to focus more of its attention on design, delegating out responsibility to others also helps it create strong linkage between production and marketing. Tsai observes how Taiwanese companies, in contrast, would rather invest their time and capital into imitating the work of outside brands than make a long-term effort to develop their own designers. Nautica's experience, she believes, gives us a lot to chew on.
"Nautica was already franchising overseas ten years ago," notes Tsai. Success overseas showed that Nautica possessed international appeal. At the same time, Nautica provided FOB pricing and new product specifications aimed specifically at overseas markets, all of which resulted in bigger profits and increased name brand competitiveness for its overseas franchisees.
David Chu has spent a considerable amount of his time in the last five years focusing on furniture and household products. The revenue Nautica earned from its home collection has rapidly accelerated, even to the point that he anticipates that it will surpass sportswear sales in another three years. "Travel really declined in the aftermath of September 11. The returned emphasis on domesticity provided a boost for sales of our household wares," he says. Apart from its radiant accomplishments in terms of sales, Nautica has also built up credibility in the aesthetic realm. Last year Elle Decor, an American magazine specializing in interior design, ran a feature on Nautica furniture design. In addition to covering David Chu himself, his love of travel and Eastern art and architecture, the magazine also praised Nautica as "redefining the word 'integration' with its blend of Asian form and American comfort and relaxation."
Doing it for the love
Chu's enormous success made it only natural for people to inquire into the methods behind it. He declares that keeping his enthusiasm nourished is more important than getting caught up in success. "I'm always keen to find new perspectives and ways of accomplishing things," he emphasizes. For him, every day is full of challenges.
"It's truly remarkable how David continues to be so modest and driven after all of the success he's had," comments Rebecca Wang, vice president of retailing at Ruentex, Nautica's sales agent in Taiwan. His outstanding commitment to fashion is something she finds inspiring. "His eyes sparkle whenever he discusses Nautica's name brand philosophy," she adds. His enthusiasm is truly contagious. Moreover, Chu's approachability and friendliness towards workers is common knowledge, and many in fact believe that his affable, unaffected style is partly responsible for his success.
How does Chu, still the supervisor of Nautica's designs, keep the creative juices flowing? "Never stop studying and absorbing new things," responds Chu, who in addition to enjoying books and periodicals on history and geography also regards travel as a great way to broaden his perspectives. Research is vital for technical matters, so he spends a considerable amount of time looking into fabric and other materials. "In textiles, materials make all the difference," he says.
In recent years Chu has sought to give back to society by focusing his attention on education. Nautica currently has scholarships and funds installed in New York, Beijing, and Shanghai to help young designers to embark on their careers and move onto the international stage. As a Chinese himself, he has high hopes for young Chinese designers. While touring fine arts institutes in the mainland, he found that while the young designers were bright and talented and possessed finely-honed skills, they were somewhat lacking in terms of creativity and perspective. Chu fervently hopes that the young generation of designers will develop a sense of global consciousness, and that they will stand by their dreams.
As of this year, Nautica has been in existence for 20 years. As Nautica enters its third decade, David Chu plans to continue expansion in the global market, including Europe and the Far East. In terms of products, he also plans to begin producing women's clothing. "Women's clothing holds tremendous potential-I mean, women spend a lot more than men!" he quips. Listening to his confident laughter resounding in the room, there's no doubt that Nautica will soon leave its mark on the world of women's clothing, as well.