Author: Chouinard, Yvon
Legendary climber, surfer, environmentalist and founder and owner of California-based Patagonia Incorporated. In 1957, he began his career as a businessman, starting with “Schnard Equipment,” which designs and manufactures rock climbing equipment. His first creation was a phyton, but realizing that the phyton was damaging the rock wall he loved, he began to make and sell a chalk that did not damage the rock instead of the phyton.
In 1972, the apparel business began with the addition of a rugby shirt to the catalogue. As Patagonia grows more and more, Schinad decides to find his own way of doing business. From then on, he breaks away from the traditional corporate culture, makes the workplace free and enjoyable, and begins to actively use his business to find solutions to environmental crises. He developed capillary and new chilla, functional fabrics that reduce environmental damage, and for the first time introduced the concept of “layering”, establishing itself as a leading role model company in the outdoor industry in terms of design and functionality. He also introduced “EARTH TAX,” where all cotton products are made from organic cotton, and 1 percent of sales are used to preserve and restore the natural environment. Recently, it has created a “WORN WEAR program” that is responsible for lifelong repairs so that customers do not increase waste.
Currently, Schinad spends most of his time outdoors, helping to lead Patagonia. Patagonia was awarded the Entrepreneur Vision category at the UN Global Environment Awards in 2019, and is still taking the lead in protecting the wildness of nature and sports based on the mission statement “We do business to revive our home, the planet.”
From an old barn in the backyard to becoming the world’s best outdoor company,
Which achieved the impossible goal of harmonizing capitalism and ethical consciousness.
Patagonia’s Full Story of Success
Yvon Schnard, as a man who loves nature and a successful businessman, wrote this autobiographical business philosophy book, Patagonia, Surfing When the Wave Strikes to convey the lessons he learned. He spent most of the year on the rocky walls of Yosemite and was always in touch with nature, avoiding the heat in the summer and searching the high mountains of Canada and the Alps. I walked. His first creation was a phyton, but realizing that the phyton was damaging the rock wall he loved, he began to make and sell a choke that did not damage the rock instead of the phyton. In 1964, he created his first mail-order catalog, which contained a warning saying, “Don’t expect fast delivery during the climbing season.” The business grew steadily, and in 1972, the apparel business began with the addition of rugby shirts to the catalog. As his colleagues grew and Patagonia grew, Schinad realized he needed his own way of doing business. Schnard Equipment was a small company that designs and builds the world’s best climbing equipment for himself and his friends. No one was involved in business to make money. Finally, he decides to use the business to find and put into action a solution to the environmental crisis. Based on this belief, Shenard developed functional fabrics that reduced environmental damage, made all cotton products from organic cotton, and paid an’Earth Tax’ that uses 1% of annual sales to preserve and restore the natural environment. Introduced.
Yvonne Schnard always tried to keep life simple, and after grasping the seriousness of the environmental problem, he reduced the consumption of material goods. When he ran Patagonia, he did not give up principles for money. As a result, he won the hearts of consumers with beautiful products that can be worn for a long time without going out of fashion, and achieved unprecedented success by practicing the goal of revitalizing the earth. He has brilliantly demonstrated that inconsistent values such as work and life, profit-seeking and social responsibility, business expansion and environmental protection can coexist. And how it was possible was fully disclosed in this book.
Look forward to the 7th generation and grow only at a sustained pace!
8 secrets of success in Patagonia, which grew by 25% in every two recessions
All of Patagonia’s products reflect the common philosophy of ‘If it’s not the best, we don’t make it.’ All products must be required one by one, and to increase sales, we do not make 20 types of pants with the same function, and we do not advertise artificial products because customers’ trust cannot be bought with advertising costs. Patagonia’s consistent management policy is to grow ‘naturally’ by making functional and simple products that can be used for a long time without going out of fashion.
In the late 1980s, Patagonia had a turnover of $1 billion. Yvon Schinad, who started his business unpretentiously not to make money, but to make equipment for his own use, followed his usual way of success. He hired more employees, CEOs from MBAs, and increased producers and traders. However, in 1991, the US economy fell into a recession, and Patagonia also faced a crisis of sharp declines in sales and stockpiling. Shocked after hearing a renowned management consultant who went to find the solution to “sell the company and create a non-profit environmental foundation”, Yvon Schinad began to ponder with his colleagues why Patagonia should continue to do business.
Schnard and his colleagues all agreed that “a billion dollar company is good, but it doesn’t mean anything if we make a product that we can’t be proud of.” They said, “Patagonia is a company created by people who love nature and is rooted in their free thoughts, independent beliefs and attitude values. Making the best products we will use ourselves and protecting the nature we love is our top priority”, shared a clear sense of purpose, further strengthened the management philosophy, and reorganized the business.
And in 2008, the second recession came. Consumers became very conservative during the financial crisis and stopped buying trendy items. Instead, they paid more for Patagonia’s products that were practical, versatile and durable. As a result, we were able to avoid the crisis, but rather, we were able to achieve greater results by growing more than 25%.
Yvon Schinad, based on his experience of overcoming the recession, realized that in any crisis, in order to make the right decisions, a philosophy that runs through the entire business is necessary. In 『Patagonia, Surfing When the Waves Hit,』, Yvon Schnard founded the Schnard Equipment in an old barn in the backyard and made Patagonia the world’s best outdoor company.The eight management philosophy, design, production, distribution, It is the result of a detailed and systematic arrangement of marketing, finance, human resources, management, and environmental philosophy.
In this book, Yvonne Schinard finds a model of management and sustainability not in the American business world, but in the American Iroquois Indians, who look forward to the seventh generation. The Iroquois are said to have included representatives of the next seven generations in the tribal decision-making process. This book, which throws a heavy message to look forward to the 7th generation and grow only at a sustainable speed, is called a management textbook by Silicon Valley CEOs, and has become a must-read for entrepreneurs in the era of the environment. It is considered one of the most influential books.
Why are millennials around the world enthusiastic about Patagonia?
People who love nature gather to use business for the planet
An advertisement is posted in the New York Times during Black Friday, the annual event with the largest sale of the year in the United States. Paradoxically, the ad, encouraging consumers not to buy its own, with a ridiculous copy of “Don buy this jacket,” draws attention to Patagonia’s environmental philosophy. made.
Patagonia has consistently practiced environmental protection based on its mission statement, “We do business to revive our home, the planet.” After internal evaluation revealed that cotton is the most damaging material to the environment, it decided to make all cotton products from organic cotton from 1996. In the process, he had to face tremendous financial difficulties, but through this bold move, the use of organic cotton for the first time in the outdoor industry has influenced more companies to fulfill their social responsibilities. Patagonia also provides free repair services through its own “Worn Wear program”. In order to slightly slow the cycle in which the product is produced, consumed, and discarded, it is encouraged to mend and wear it for as long as possible rather than consuming a new product.
Patagonia has been reborn as a brand loved by millennials who aim to consume value through environmental protection. However, Patagonia would not have been so much loved if the purpose of all these steps was to pursue profit. The biggest reason Patagonia has a strong enthusiast, unlike other brands, is because of its extraordinary sincerity, such as consistently donating 1% of its total annual sales to environmental organizations for the planet. Patagonia, surf when the waves hit, contains a more sincere voice of Patagonia. Through this book, Yvonne Schinard proposes a blueprint for the next 7 generations by appealing for participation in environmental protection from all walks of life, including businesses, governments, and consumers. Today, when all kinds of diseases and environmental pollution have emerged as problems that cannot be ignored anymore, the message of this book will come with a greater resonance.
My favorite thing about entrepreneurship is, “If you want to know what an entrepreneur is, study delinquent youth.” Delinquent youth say this through action. “This is really fucking fucking. I’ll do it my way.” I really didn’t want to be a businessman, so I needed good reasons to be a businessman. Fortunately, there was something I never wanted to miss even if I expanded my business. Work is always to be fun. On the way to work, I am excited and have to jump up the stairs two at a time. Dress freely as you please, and be surrounded by colleagues who even work barefoot. With flexible work, you should be able to surf when the waves are good, ski when it snows, stay at home and take care of your children when they are sick. The distinction between work and play and family should be blurred. The creative management that abandons the existing rules and makes my own system work gave me great satisfaction.
— Among 「History」
Function-oriented designs are usually minimal. As Brown’s head of design Dieter Rams argues, “good design is minimal design.” Complexity is a sure sign that a functional need has not been addressed. Take the difference between a 1960s Ferrari and a Cadillac, for example. Ferrari’s sleek lines were suitable for the purpose of high performance. Cadillac didn’t have a functional goal itself. The Cadillac had only tremendous horsepower, no steering wheel, no suspension, no torque, no aerodynamics, no brakes to match. If you don’t worry about the function, there is nothing to do with design. The car had the comfort and power as if the living room was moved over the highway to the golf course. In this way, the basic, terrible shape, with fins running at the back and bulging at the front, was added with all sorts of metal ornaments that were just plain and useless. When functionality doesn’t serve as a guideline for design, the imagination runs wild. If it is designing a monster, a plausible work will come out.
— From “Product Design Philosophy”
Most importantly, our source is the smithy that makes the world’s best climbing equipment. The beliefs, attitudes, and values of independent climbers and surfers who were working there became the foundation of Patagonian culture, and from that culture a single image, that is, an image of authentic and high-quality products made by those who use them themselves. . Our image has evolved to encompass the culture of a new generation of climbers, trail runners, anglers and surfers who strive to create the best outdoor apparel in the world. At its core, there is a belief to protect the wildness of nature and sports. Our employees continued to uphold certain values and beliefs that were inherent in the upstart companies in the 1950s, while attracting another. The will to take a strong position on environmental issues.
— From 「Marketing Philosophy」
We never wanted to be a big company. We want to be the best company, and we strive to be the best small company rather than the best conglomerate. To do this, you must exercise self-control. The growth of one part of the company can be sacrificed for the growth of another part. It is also important to know clearly what the limitations of this’experiment’ are, and keep in mind that the faster we expand beyond those limits, the faster the type of company we want to disappear, and live up to those limits.
— From 「Financial Philosophy」
Remember. Work should be fun. We value our employees who live a rich and balanced life. We have flexible working hours, and since the days of running a forge, we closed our workshops and went surfing whenever a 2-meter wave came. Our policy is to ensure flexible working at all times, as long as it does not negatively affect others. People who are striving to surf don’t plan to go surfing next Tuesday at 2pm, but go surfing when the waves, tides and winds are perfect. Skiing goes when there is no moisture in powder snow. In order not to miss a good time, you should create a working environment where you can go immediately. This kind of thinking has become a policy of free choice of working hours under the name of’surf when the waves hit.’
— From 「HR Philosophy」
The notion of a company’s natural growth helps us keep it as small as we can afford. I think it is ideal to have 100 or fewer people working in one place to ensure the best communication and avoid bureaucracy. This is in line with the fact that democracy works well in a small society where people feel personal responsibility. The smaller Sherpa (Himalayan tribe, who does things like climbing guides and carrying luggage-or Inuit (a tribe living in northern Canada, Greenland, Alaska, etc.) There is no need to hire. Everyone takes care of community problems. No need for police. It is difficult to have an evil mind under pressure from colleagues. The most efficient size of the city is, like Santa Barbara, Auckland and Florence, with all the cultures and amenities of the city, but still has a controlled population of 250,000 to 350,000.
— From 「Business Philosophy」
One of the hardest things for companies to do is to investigate the environmental impact of the most successful products and, if they adversely affect the environment, change the product or remove it from the shelf. Imagine you are the owner of a company that makes mines. You are the best employer, giving people jobs and giving them all kinds of benefits. But I’ve never thought about what mines really do. One day you go to Bosnia, Cambodia, or Mozambique, and see innocent people crippled and realize, “Mine mines do this!” Now you know what the product really does. In this state, whether to quit or continue the mine (cigarette, fast food) business? Patagonia has also begun to search for our “land mines”.
— From 「Environmental Philosophy」
We all know that the current global economy, based on constant consumption and abandonment, is destroying the planet. We are the sinners. We are consumers who “use up and destroy”. We don’t need it, but we keep buying things we want. There seems to be no satisfaction for us. Looking at the consequences of an economic system that boasts cutting-edge technology, but with high risk and harm, many people are questioning the maniacal consumer lifestyle. I’m not saying to reject all technology. It is to return to the appropriate skill level and pursue a simpler life. — Among 「Epilogue」