XBlades is a football boot that was a revolution when it was designed in Australia in the 1980s due to the protection against injury and comfort it affords its wearers. The company was taken over in January 2016 by a group including former Callaway Gold Director Leighton Richards and recently-retired AFL legend Jimmy Bartel. ISB asked Richards, XBlades’ CEO, about his reasons for getting involved and how they have achieved a 40 per cent plus increase in pre-sales to retailers since taking the helm.
ISB: What was the appeal of the product that attracted you to XBlades to want to purchase the business?
LR: We felt there was a gap in the market making specialised products for both AFL and Rugby codes. The sports are fundamentally different to soccer (eg no tackling which changes the forces through a player’s feet) yet the majority of players are wearing specialised soccer boots. XBlades was different with its technology under foot however required a brand face lift. We realised after talking to the experts – the Podiatrists and Biomechanics team at Vic University, where we have commenced a two- year research study – and athletes, that by making more relevant product for our native football codes we would gain some interest and it is working out that way. XBlades had nearly 20 per cent of the All-Australian team, including the Captain – Alex Rance – wearing our product. Likewise, in the NRL we had 30 per cent of the NSW State-of-Origin team.
ISB: How you fund the acquisition of the business?
LR: We are a private equity structure and we raised capital via a network of individual investors.
ISB: What was the single biggest challenge you faced once you took the helm?
LR: Undoubtedly production. Working with factories in China is not easy and it’s not just any factories. We need to find the ones who can manufacture to our standards and our specific requirements for our native sports.
ISB: XBlades is a “disruptor” taking on some of the best-known brands on the planet – how did you go about breaking the hegemony of those big players?
LR: It has proven easier than we thought so far! We have a simple philosophy: we are athlete led; product driven. We work closely with elite athletes to understand what they need and we support this with expert advice in the field of biomechanics and podiatry. We have custom made all our boots for the elite players we have and that has resonated. After that, the players are our best form of marketing, especially when they tell their story in their own market place. Our messages are authentic and that tends to cut through.
ISB: As a “disruptor” I imagine product development has to me a major focus, how did you go about giving XBlades a point of difference in the face of brands with enormous budgets and large product ranges?
LR: We don’t want to bring an enormous range of products to market. We focus on ours being relevant and that is done by consultation with experts and athletes. Product is a primary focus for us. We also believe products are over-priced in the market for what they are. We know what it costs for materials and labour and we see the over-priced products the big brands put out there relative to their technology (or lack thereof). We not just focus on relevant products that work, but we also want to make them accessible to the masses.
ISB: Same question as above with regard to marketing – XBlades are playing against corporations with an established reputation and massive advertising, how do you get your message across?
LR: Nearly our entire marketing budget is on sponsorship at the elite level, be it either clubs for their on-field and off-field apparel (three AFL clubs, two NRL teams and several UK clubs in different sports) or individual players.
