Exporting: Perfect vision
Andy Holloway
PROFIT magazine,June 2008
Swiss Army knives. Surefire flashlights. The Hummer. All of
these products, originally designed for the military, have been
co-opted by mainstream consumers. Jonathan Blanshay is hoping to add
another brand to that list: Revision Eyewear. As CEO of one of the
biggest developers of military eyewear in North America, he has proven
he has what it takes to thrive in new markets.
In 2000, Blanshay left the financial services sector to strike
out on his own in a different industry. His childhood friend, Brent
Sheldon, had 30 years of experience in eyewear manufacturing, but
needed money to branch out. It made sense to combine forces, although
Sheldon is no longer involved in the firm. “I knew nothing
about eyewear,” admits Blanshay, “but I was able to
bring a focus to a business plan, having looked at hundreds if not
thousands over my past career.”
That focus was key in raising Montreal-based Revision
Eyewear’s revenue to US$22.1 million last year, a 3,217%
increase from the US$666,232 it generated in 2002 — earning
it 14th spot on the 2008 PROFIT 100 ranking.
How it got to be so big in such a niche market — one occupied
by brand names such as Oakley and Uvex — is a tale of
customer service and strategic manoeuvres to appeal to the lucrative
but nationalistic U.S. market.
When Revision launched in 2002, Blanshay began developing
products for customers in various niches, including motorcycling and
paintball. He’d also taken racquetball glasses, modified
their lenses and frames, and added features such as anti-static sprays
to make them acceptable for military use. “We knew there was
an opportunity to apply technology in performance eyewear,”
says Blanshay. The resulting product, called Sawfly, is able to
withstand a one-gram projectile fired at a speed of up to 276 metres
per second, or about six times the American National Standards
Institute’s requirement.
Needless to say, the military market was interested. In 2003,
Revision won a bid for 120,000 ballistic eyeglasses from
Canada’s Department of National Defence. With a little bit of
research, Blanshay discovered that Revision’s protective
lenses had an edge over their rivals. “This market niche was
not being well served,” he says.
Blanshay guessed right that foreign militaries would want
Revision’s product, too. Today, its customers include the
U.S., Dutch and Singapore militaries, plus retailers such as
Sportsman’s Warehouse and the Army & Air Force
Exchange Service. And although Revision has had no problem selling its
standard glasses with way-cool names such as Desert Locust, Bullet Ant
and the best-selling Sawfly (priced at $100 a pair), it has built a
reputation for delivering quality merchandise on spec. “If a
customer wants different ears or a different colour on the glasses,
Revision will make it,” says Jan Sluyts, director of military
sales at R.A.-Company, a Belgian distributor that also sells Revision
products in the Netherlands and Luxembourg.
Indeed, Revision has played its production flexibility to an
advantage over larger competitors, such as Oakley. But its flexibility
extends to its management practices. To better abide by procurement
legislation, including the Buy American Act, under which the U.S.
government must show a preference for domestic products, Revision
relocated its manufacturing to Vermont from the Far East despite the
added costs. “As a Canadian company, we needed to be holier
than the Pope,” says Blanshay. “We decided that
100% of our product would be U.S.-made. Most of our competitors were at
50.1%.”
To the casual observer, Revision even appears to be American.
Visit RevisionEyewear.com,
and you’ll find no reference to Canada; its address and phone
number in Essex Junction, Vt., about a 90-minute drive south of its
Montreal head office, is the only contact information provided.
“We didn’t want to be perceived as
foreign,” says Blanshay. “Military buyers are very
patriotic. It’s not that we want to lie about being Canadian;
we just don’t want to raise the issue.”
While the company maintains an on-the-ground presence in the
U.S. and Canada, it does not have the same luxury overseas. There, it
has entrusted sales to agents and distributors, with mixed results.
“The military market is slow-moving,” says
Blanshay, “so it takes a while before you realize whether an
agent is good or not.” Although Revision’s
London-based international sales manager and Export Development Canada
have helped it identify better partners, the company still
doesn’t surrender all of the foreign sales and marketing
work. Agents must let Revision staff accompany them to trade shows
(about 50 a year) and customer visits, while providing semi-annual
reports on their advertising, sampling and in-person sales activities.
“You have to manage them as if they were an extension of your
company,” says Blanshay. “If you don’t,
you find out a lot of these guys are sitting and waiting for you to do
the hard work. Then they take their 8%.”
Revision will need all hands on deck as it faces a new
challenge: military customers will soon be buying integrated protection
systems from one of a handful of big suppliers, such as General
Dynamics, British Aerospace or Lockheed Martin, rather than
cherry-picking best-of-breed products from an array of companies. In
eyewear, that means linking up with built-in heads-up displays,
communications systems and laser protection as part of the Future Force
Warrior uniform. “Instead of selling, say, a $50 pair of
goggles to the army,” Blanshay explains,
“we’ll be selling a $250 visor to General
Dynamics.”
Although Blanshay’s laser focus on ballistic eyewear
has paid great dividends, he now feels experienced enough to revisit
other markets for protective specs, such as for motorcycling and border
patrol and emergency-response personnel. Why? The market for ballistic
glasses tops out at around US$150 million; for motorcycle goggles,
it’s three times that.