Oakley Sets Sights on Online Sales

Nike Inc. dived into E-commerce in September, striking a deal with Fogdog Sports that allows the Internet retailer to sell Nike products.

A month later, Levi Strauss & Co. pulled out of online sales, saying “the cost of running a world-class E-commerce business is not affordable.”

Now, Oakley Inc. is immersing itself in the Internet, hoping for direct online sales of close to $1 million for the quarter ending Dec. 31. That would be five times more than the company’s Internet sales in the same period last year.

The strategy announced Monday by the Foothill Ranch maker of sunglasses, shoes & clothing involves four types of “storefronts.”

First, Oakley has redesigned its Web site to allow U.S. consumers to buy all its products at the site. Before, Oakley sunglasses and goggles were sold only by Eye Vault, formerly Oakley’s authorized online retailer. Oakley expects to begin shipping to other countries in the second half of 2000.

In addition, Oakley is allowing companies that already sell its products in their stores to sell them on their Web sites as well. This includes Sunglass Hut, Oakley’s largest client.

Creating a third online sales opportunity, Oakley said it will select a small number of companies that sell only over the Internet to allow them to sell some Oakley products.

Finally, Oakley will let some companies place a link on their Web sites that will guide potential customers directly to Oakley’s Web site. Oakley will pay a referral fee for any sales coming from those links.