Fishing is Australia’s most popular recreational sport. With around 30 percent of the country’s inhabitants trying their hand at it and combining to spend approximately AUD 2 billion (US$ 1.5 billion) annually, many of fishing’s big name brands have steered their vessels down under to compete for a slice of the action.

Headquartered in Tulsa, Oklahoma, Lowrance recognized the potential associated with the Antipodes back in the late 1980s and subsequently set up shop in Sydney. Today, the company is located in the picturesque town of Tweed Heads and is seen as one of Australia’s leading sports fishing equipment brands, holding pole position within the recreational boat market while facing competition from the likes of Navman, Garmin and Hummingbird.

Lowrance’s general manager for Asia Pacific, Todd Moore, speaks passionately about the Australian market and attributes the company’s success in the region to its fundamentals. “Lowrance makes excellent products, which are then backed up by a first-rate team of people,” says Moore. "That proposition enables us to provide top-class sales and service across a range of distribution channels, whilst underpinning the entire concept with a well managed supply-chain.”

Moore cites two major reasons for why Lowrance’s brand has evolved in Australia. “Having the best available products has definitely been a major advantage. Our range of Fish Finders is second to none, and there are hundreds of examples of people having caught more fish by using our equipment over that of the competition. That’s also had a knock-on effect on product lifecycles, because let’s face it, if you sell something to a customer that won’t do the job, then [the product’s] not likely to last more than 12-months now, is it?”

The second reason Moore gives for Lowrance’s strength in Australia is the business’ status as a wholly-owned subsidiary of its Tulsa-based counterpart. “The fact that we are owned by our parent company gives us a substantial advantage over the competition,” he explains. “Most of our competitors operate through independent or licensed distributors and the consequence of that is a dilution of brand value. The fact that we can be selective with regard to our distribution channels, some of which are exclusive, means that we can really push hard on what the Lowrance brand means to its Australian customer base. [T]his is something that our competitors find very difficult to emulate.”

Moore continues, noting that the “same principles apply when it comes to sponsorship and advertising, which means that we can take a very direct approach to these [media], whereas our competitors cannot. The end result is that we invariably secure a prime position during major marketing opportunities, whilst [the competition] are still looking for promotional support from their suppliers.”

But it is not completely smooth sailing ahead for Lowrance and the sports fishing industry. The Australian Government’s Fisheries Department, for example, recently imposed a five-year ban on all commercial fishing in Sydney Harbour due to the abnormally high levels of dioxin found in some fish.

Moore is philosophical about the impact such environmental issues have upon the Australian sports fishing market. Although acknowledging these issues, Moore feels that the growth of the Internet and geographical pricing will be the biggest strategic issue his business likely will face.

He explains, “The recreational boat market in Australia grows at around three percent each year, so our position is more than sustainable even with the odd fishing ban. The biggest problem we are likely to have in the future will be the threat of cheaper, imported electronic equipment from overseas, and the Internet is playing a major role in that. You just have to visit a few online chat rooms and fishing forums to see people talking up how much they can save if they buy a product in the USA and then have it posted over here.”

Notwithstanding that issue, Moore remains extremely upbeat about the prospects for Lowrance in Australia, believing the brand can take advantage of the opportunities that exist. Talking of a recently announced global merger between Lowrance and Simrad, Moore says, “The commercial sector is obviously an area in which we would like to improve our market share and the coming together of both Lowrance and Simrad will strengthen our hand there. Although the commercial market is struggling in Australia [while the recreational market continues to grow], there are still plenty of opportunities for the Lowrance brand to establish itself in that sector, and it is definitely something we are interested in.”

Lowrance appears well-positioned in Australia. Given that it started from ground zero a little more than a decade ago, the way the brand has developed, increased penetration and driven up market share should serve as a useful case study for anyone looking to invest in the region. Retaining an exclusive interest in the business by keeping Lowrance a wholly-owned subsidiary has underlined the company’s commitment to both its people and its strategy, which helps it rise ahead of its competition. Indeed, one could say that Lowrance has captured the market “hook, line and sinker.”

Ian Cocoran has worked as a senior manager and director with a number of multinational organizations and has been a contributor to brandchannel since its inception. He currently lives in Sydney, Australia, with his wife and daughter.