Our company, Fox Factory Holding Corp., designs, engineers, manufactures and
markets performance ride dynamics products for customers world-wide. Fox Factory
Holding Corp. is the holding company of Fox Factory, Inc. As used herein, "Fox
Factory," "FOX," the "Company," "we," "our,"
and similar terms refer to Fox Factory Holding Corp. and its subsidiaries, unless
the context indicates otherwise. Our premium brand ride dynamics products, are
used primarily on bicycles ("bikes"), side-by-side vehicles ("Side-by-Sides"),
on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain
vehicles, or ATVs, snowmobiles, specialty vehicles and applications, and motorcycles.
We define ride dynamics as the interplay between the rider, the vehicle and
the terrain, and we offer unique solutions to improve performance and control.
Some of our products are specifically designed and marketed to some of the leading
action sports original equipment manufacturers ("OEMs"), while others
are distributed directly to consumers through a global network of dealers and
distributors.
We are a designer, manufacturer and marketer of performance ride dynamics products
used primarily on bicycles, Side-by-Sides, on-road vehicles with off-road capabilities,
off-road vehicles and trucks, all-terrain vehicles, or ATVs, snowmobiles, specialty
vehicles and applications, and motorcycles. We believe our products offer innovative
design, performance, durability and reliability. Our brand is associated with
high-performance and technologically advanced products, by which we generally
mean products that provide users with improved control and a smoother ride while
riding over rough terrain in varied environments. We believe that the performance
of our products has been demonstrated by, and our brand benefits from, the success
of professional athletes who use our products in elite competitive events, such
as the Union Cycliste Internationale Mountain Bike World Cup and the X Games.
We believe the exposure our products receive when used by successful professional
athletes positively influences the purchasing habits of enthusiasts and other
consumers seeking high-performance products. We believe that our strategic focus
on the performance and racing segments in our markets influences many aspiring
and enthusiast consumers who we believe seek to emulate the performance of professional
and other elite athletes. We believe our products are generally sold at premium
prices, which to us means manufacturer suggested retail sale prices that are
generally in the upper quartile of their respective product categories.
We design our products for, and market our products to, some of the world’s
leading action sports OEMs and to consumers through the aftermarket channel.
Many of our OEM customers, including Giant, Scott, Specialized and Trek in bikes
and BRP, Ford, Yamaha and Polaris in powered vehicles, are among the market
leaders in their respective product categories, and help shape, as well as respond
to, consumer trends in their respective categories. We believe that OEMs often
prominently display and incorporate our products to improve the marketability
and consumer demand for their performance models, which reinforces our brand
image. In addition, consumers select our products in the aftermarket channel
where we market through a global network of dealers and distributors.
For clarification, we are not affiliated with Fox Head, Inc., an action sports
apparel company.
We participate in large global markets for bikes and powered vehicles used
by recreational and professional users. Today, our products for powered vehicles
are used primarily on Side-by-Sides, on-road vehicles with off-road capabilities,
off-road vehicles and trucks, ATVs, snowmobiles, specialty vehicles and applications,
and motorcycles.
We focus on premium priced products within each of these categories, which we
consider to be the high-end segment because of their higher retail sale prices,
where we believe consumers have a preference for well-designed, performance-oriented
equipment. We believe that ride dynamics products, which include suspension
systems, as well as wheels, cranks, and other components, are critical to the
performance of the bikes and powered vehicles in the product categories in which
we focus and that technical features, component performance, product design,
durability, reliability and brand recognition strongly influence the purchasing
decisions of consumers. Over the past decade, there have been significant technological
advances in materials and features that have increased product functionality
and performance, allowing high-end suspension products to be adapted for use
in additional end-markets and bike and powered vehicle categories.
We believe the high-end segments in which we participate are well positioned
for growth due to several factors, including:
increasing average retail sales prices, which we believe are driven by differentiated
and feature-rich products with advanced technologies;
continuing product cycle innovation, which we have observed often motivates
consumers to upgrade and purchase new products for enhanced performance; and
increased sales opportunities for high-end bikes and powered vehicles in international
markets.
As vehicles in our end-markets evolve and grow more capable, ride dynamics products
and components have become, and we believe will continue to become, increasingly
more important for improved performance and control. Additionally, we believe
there are opportunities to continue to leverage our technical know-how in suspension
products to provide solutions beyond our current end-markets.
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