MR Q: TKO SPORTS’ GARRY KURTZ
Garry Kurtz founded his Texas-based TKO Sports Group USA about 20 years ago, focusing on providing boxing equipment. Since then, his product assortment has grown greatly to include many sorts of health and fitness equipment and accessories, and he’s switched his focus to becoming a global consumer brand. MR recently caught up with Kurtz to discuss the future of TKO.
Q: Tell us about the biggest change your company has gone through recently?
A: Back in May, we were thrilled when Macy’s chose 80 of their locations, including Herald Square, to roll out a test of some our strength-training equipment and accessories, such as gloves and ropes. Then, about a month ago, they told us they have decided to put TKO into all 800 locations. They will also add yoga mats, agility ladders, and some other things that haven’t usually been available at the department store level to the assortment. It’s really exciting.
Q: Is this a permanent partnership?
A: It is going in a great direction, by quickly becoming an all-store program. We plan to work closely with the Macy’s group as we do with all our customers in order to maintain a long term relationship that is beneficial to their bottom line. We are working to have this program in place for 2016 and well beyond.
Q: What kind of feedback did you get from Macy’s about the test rollout?
A: Nothing specific. But my feeling was that since the outcome was positive, we were happy to accept the good news. If the result had been negative, I might have asked for more specific information.
Q: The product is beautifully packaged and seems designed to appeal to both men and women. Was that a conscious decision?
A: Originally, we had one line for men only and one that was ladies only, but we found better success with a unisex approach. It’s not only that the product is applicable to both genders – a yoga mat is a yoga mat — but we found that women are responsible for buying about 75 percent of our products.
Q: Right now, your focus is on equipment and accessories, but you’re planning to move into apparel, right?
A: We have some done testing of apparel and are still trying to find the right partners and discover the best approach to merchandising, because the market is a bit crowded to say the least. The way that brands sell these days, everyone is playing in the same sandbox. But we definitely hope to find the right retail partner by Q1 of 2016, and after that we can get off the ground quickly.
Q: How do you plan to start the line?
A: We’ll begin with technical garments, and then once we’ve established that sector, we’ll go into more casual wear. But our goal is to build a complete family of product.
Q: Have you though much about your core demographic?
A: I believe 20 to 45 year olds are our core demographic. Up to now, the idea of a demographic hasn’t influenced us a great deal, but as we move into apparel, it will influence it tremendously. And we know we need to emulate brands like Under Armour or Lulemon who have discovered how to create clothes that can go from clubwear to streetwear for women. Men are much easier. Give us T-shirts and shorts and we’re done.
Q: Have you considered teaming up with a celebrity?
A: I have thought about getting a celebrity endorsement, but it’s a difficult thing to do. Many years ago, I used to work with Mike Tyson, so you can understand if I’m hesitant. And it really is hard to find the perfect person. Celebrities who can really make an impact are too expensive for us, and there’s a real question of whether some third-tier celebrity would be effective. Still, we are actively searching.
Q: Do you dream of having TKO stores?
A: In North America or Europe, I would not do a TKO store. It is a tremendously expensive proposition to find the right mall, and I’m not comfortable taking on such a massive risk. What we have found, though, is that in places like Africa and Central America, those markets would love us to open up 400-600 square-foot boutiques. And there’s definitely merit in that kind of thing. I believe it could work.
