Billabong: Twenty Years Surfing Peru

Billabong is now a major player in the market for surf fashion in Peru and Chile, with sales over AUD$2 million annually.

It is well known that Peru and Australia share similar attributes as mining and agricultural exporting countries. But it is less well-known that both countries share a love of the ocean and strong and vibrant surf cultures.

This shared passion resulted in a friendship between Peruvian surfers and brothers Max and Magoo de la Rosa, and the Australian owner of surf wear company Billabong, Gordon Merchant. Out of that friendship, which was formed in Hawaii in 1986, a plan was hatched to establish Billabong in Peru. From that point on, neither the Australian nor Peruvian partners have looked back.

Billabong Peru was formally established in 1989 as a distribution business, but really took off when it became a licensee in 1994. In 2002 the de la Rosa brothers were put in charge of the operation of Billabong in Chile, and have also achieved strong growth in the Chilean market.

In December 2004, Billabong Peru’s license contract with Billabong International was due to expire, and the Board of Directors of Billabong International made the decision to take direct responsibility of the territories of Peru and Chile, providing the increased capital required to better service the growing market.

Twenty years since the initial idea was formed, Billabong is now a major player in the market for surf fashion in Peru and Chile, with 23 staff members in Peru and eight in Chile. Billabong Peru now sells over AUD$2 million of surf wear annually and has its own show room in the Lima suburb Miraflores. In Chile, Peru has an exclusive distribution deal with Falabella department stores.

Max de la Rosa puts Billabong’s success in Peru down to a range of factors, including usual manufacturing and retail fundamentals, such as the innovative design of their products, and a commitment to high quality both in the brand’s production and management. But he also highlighted factors unique to the surf industry, such as using Billabong’s profile and sponsorship to help local surfers compete on the world stage; de la Rosa was himself a Billabong-sponsored rider during his professional surfing career.