Patagonia Inc. Overview

Patagonia Inc.

Introduction

Patagonia Inc is an American-based retail clothing corporation with its headquarters based in Ventura, California, United States. Although the major aspect of the business focuses on clothing, nonetheless, it also diversifies into other relative retailing business segments such as food and drinks, as well as books. It offers its customers custom-made services tailored at meeting every customer’s specific needs and requirements. The company is known and recognized for its customer-focused services as well as its commitment to social and environmental sustainability. It was owned and founded by Yvon Chouinard who was then an athlete (climber). Since the founding year of the company, it has continued to run a privately held corporation up to date. 

Key Statistics & Facts  

Founding Year: Patagonia, Inc was founded in the year 1973, approximately 49 years ago.       

Industrial Ranking: Patagonia, Inc is ranked since its founding Inc has been frequently featured on the list of top-ranking press houses, including but not limited to New York Times, The Guardian,  as well Forbes, and Fortune magazines. Typically, Patagonia, Inc is ranked in the 100th position of Fortune 100 Companies to Work For. Additionally, it is also recognized among the company that embraces diversity in the workplace.  

Company Type: A Privately Held Company       

Market Reach: Patagonia, Inc has its stores strategically mounted in more than 10 major countries of the world. Additionally, the corporation also has several of factories located in more than 16 countries globally. 

 Industry Type: Clothing, Fashion, Food & Drinks, Books 

Workforce Strength:  Patagonia, Inc has over 1, 500 employees in its workforce globally according to a Fortune Magazine report.   

Historical Background

Patagonia, Inc founded by Yvon Chouinard, a man who was a rock climber had always had this entrepreneurial spirit running within him. His significant entrepreneurial skill started as early as 1957 when he started to sell hand-forged gear that climbing athletes use in climbing mountains. The sale of this hand-forged gear was been sold through its sole-owned business which then was operating under the name, Chouinard Equipment. And for a couple of years, Yvon worked alone selling off his stocks to his customers, however, in the year 1965, Yvon stepped into partnership with Tom Forst in a bid to help improve the services of his expanding business product line and to help serve his customers better.   

In the year 1973, Patagonia, Inc’s first outlet was launched which was to operate under the name, Great Pacific Iron Works. The store was situated in the previous Hobson meat-packing facility in Santa Clara.  

In the year 1981, Chouinard Equipment and Patagonia were merged and incorporated under Great Pacific Iron which was later changed in the year 1984 from Great Pacific Iron to Lost Arrow Corporation. 

The company extended its product line and included clothing tailored for other sports other than mountain climbing, and the products were widely accepted by athletes such that the company continued to expand and extend from Ventura California to the other 51 states of the federation, and even beyond the shore of United States. 

In the year 2007, Patagonia, Inc received a backlash from internal audits while announcing to the press that the company’s supply chain was involved in human trafficking and violating labor laws. The company got awakened to this challenge and strive to address the allegation. 

In the year 2016, Patagonia, Inc rolled out a set of laws for the treatment of animals used in producing some of its products such as wool garments and other clothing products in a bid to support and reaffirm its commitment to sustainability.  

In the year 2017, the company revealed to the press that products purchased that are still in good condition can be returned to obtain new purchasing credits under the company’s purchasing and merchandising policy. The company often re-circles returned clothing which is then resold via the company’s worn-wear website to avail customers who are willing to buy them. 

In the year 2019, Patagonia, Inc founded an initiative that produces and sells wear made from scraps of materials from used Patagonia gear. The initiative was o run under the name, ReCraftd. In the same year, Patagonia, Inc reveals its intention and goal of becoming a carbon-neutral company by 2025. 

Throughout the 2010s, one of the company’s products a branded fleece vest emerges as one of the most widely used vests by financial experts that in the year 2019, Patagonia, Inc decided to offer the distribution of its products exclusively to companies who dedicated to their Corporate Social Responsibilities (CSR) and with significant evidence in the social initiatives they owned and manage.   

In the year 2020, the company revealed to the press that Rose Marcario who has been with the company for years would be stepping down as the company’s CEO and would be replaced by Ryan Gellert.  

In the year 2021, Patagonia, Inc reveal to the press its decision to remove its corporate logo on its branded clothing in a bid to improve and increase the durability of the fabric. In December of the same year, Patagonia, Inc and other companies received a criminal complaint filed by the European Centre for Constitutional and Human Rights in a Dutch court with the claim that the company and other alleged companies were benefiting from the use of forced Uyghur labor in Xinjiang. 

In the year 2022, September, Yvon revealed to the press that he would be donating the ownership of Patagonia, Inc to a trust controlled and managed by his family and advisors and operates under the name, Patagonia Purpose Trust. He further revealed that the aim of his decision is to ensure the net income (profits) generated from the company are channeled towards solving social and environmental issues and challenges such as addressing climate change problems, and protecting developing and underutilized environments across the globe.     

Financials

Revenue: $1.54 billion USD (2022)

Product and Service Listings

The combination of all the business divisions of Patagonia would make vast product line tailored for men and women, and kids and babies, however, for the sake of brevity, this section would outline only the major product categories of the entire company. 

All Clothing products include: 

Jackets & Vests 

Fleece 

Sweaters 

Shirts 

Shirts 

Sweatshirt & Hoodies  

Pants & Shorts 

Boardshorts 

Socks & Underwears 

Hats & Accessories 

Wetsuits 

Baselayers  

Waders 

Food & Recipes 

Basic Chimichurri Marinade  

Spinach Walnut Pesto Fusilli with Salmon 

Fusilli Pasta with Lemon Caper Mackrel 

 
Kale Caesar Holiday Salad 

Vegan Walnut Chorizo Tacos  

Camping Breakfast Burritos 

Blue Cheese Fusilli with Zucchini and Red Peppers 

Chorizo Baked Pasta 

Vegan Green Bean Casserole 

Honey, Lemon, and Olive Oil Cake 

Three Sisters Cornbread Dressing 

 Provisions Roast Turkey 

Mushroom Parmesan Savory Scones 

Umoja (Unity) Red Bean + Rice  

Citrus Spice Gravy for Roast Turkey 


Books 

Life Lived Wild 

Four Fifths a Grizzly 

Salmon 

Still Sideways 

Some Stories

Training for the Uphill Athlete 

Let my People go Surfing 

Simple Fly Fishing

…amongst others

Business Segments and Division

Other than manufacturing clothing ad apparel, Patagonia, Inc also focuses and producing goods in other related business segments. As a result, this section would outline the overall business segments and divisions of the company.  

Clothing & Apparel 

Food & Drinks 

Used Gear 

Books 

Pros & Cons

The following pros and cons include sources from sustainablereview.com as well as a critical review of the company. 

Pros include: 

Variety of Brands and Products: One of the benefits of Patagonia is the vast product lines it offers to clients, enabling them to choose from a pool of products according to their individual preferences. 

Sufficient Industrial Experience: With an accumulation of industry experience of up to 49 years, Patagonia pride itself as a company with a saturated level of industrial and global expertise.    

Good Place to Work for Employees: In addition to Fortune ranking, according to a research-based review on Glassdoor, most employees commented that Patagonia Inc is a great place to work.    

Sustainability Development Commitment: Committed to the service of humanity, Patagonia, Inc support and foster environmental and innovative program in its communities so as to gravitate towards its 2025 goal of becoming a carbon-neutral company as well as fulfilling its corporate social responsibility as a firm.   

Values Diversity: Employees also commented positively on the company’s policy that embraces values diversity and cultural differences.  

 Employee Benefits: Employee welfare is another merit of the company as it strives to provide perks like insurance, health, and hazard allowances for its staff.

Durable and High-quality Products: Patagonia strives to ensure its products, especially clothing are durable and of high quality by going as far as agreeing to remove its corporate logo from clothing collars.  

Cons include:  

Weak e-Commerce 

Excessive reliance on suppliers 

Workers Right Violation 

Animal abuse 

Conclusion

In conclusion, I hope this article has been able to reveal to you the most contingent parts of the company’s operations, and that you are able to absorb and understand all that has been addressed in the foregoing sections.