Rapala is the world’s leading manufacturer and seller of fishing lures, treble hooks, fishing accessories and filleting knives. Most of our revenue comes from the sale of our own products and less than 10% from the distribution of third-party products.
Our strong brands and trusted position as a partner to major retail chains combined with our own manufacturing, distribution and product development are the cornerstones of our competitive advantage.
Rapala is by far our most valuable brand, and profitability, especially for Rapala lures, has remained historically stable due to high brand loyalty. By manufacturing the majority of our products, we control the entire product value chain and generate brand, distribution and manufacturing margins from sales.
The sport fishing sector is very defensive, and the general economic situation only has limited effects on total sales. In particular, the defensive nature of the lure market is underscored by the fact that lures are consumables that are purchased even when consumers are carefully considering their spending. An indication of the defensiveness is that our revenue developed steadily during the financial crisis.
Fishing is a sport that changes with the seasons. Our broad product range and global markets help mitigate seasonal fluctuations, as we have products for all seasons and operate in both hemispheres, ensuring that the hottest fishing season is always somewhere. Because we are also the global leader in ice fishing and have other winter sports products, we generate revenue year-round.