This blog post takes a detailed look at the secrets behind camping brands that consistently generate profits despite their high-cost structures.

Is there a reason the camping gear market has unusually high operating profit margins?

Among camping enthusiasts, the term “fundamental gear” is widely recognized.
When choosing lighting, it’s Cremoa; for lightweight chairs, Helinox; for portable stoves, Kovea—brands that are already considered the “right answer” for specific items. These are names every camper has heard at least once, and beginners naturally gravitate toward these brands through recommendations.
Given that these products are so well-verified by consumers they’re called “fundamentals,” one might naturally assume the companies behind them generate substantial profits. High operating profit margins are especially expected. Yet, looking at their actual financial statements reveals surprising figures.
The operating profit margins of these leading brands are lower than one might expect.
Brands like Prism (maker of Cremoa), Helinox, and Kovea generally hover around 15% to 20% operating profit margins, with some brands even dipping into the low single digits. Compared to the 30% to 40% operating profit margins seen in the fashion industry or some consumer goods sectors, this might feel somewhat low.
So why does this difference occur?

Camping brands’ high cost ratios, but…

One reason these camping brands’ operating profit margins appear low is their significantly high cost of goods sold ratio. Simply put, this means the material and production costs required to make the products are substantial.
Looking at the actual cost ratios for each brand reveals the following:

Kovea: Approximately 71%
Helinox: Approximately 67%
Prism (Cremoa manufacturer): Approximately 65%

These figures are high even by general manufacturing standards and are nearly double the average cost ratio of 30-40% seen in the fashion industry. This indicates that these companies bear significant cost burdens as a result of focusing on product quality, durability, and functionality.
However, there’s a key point to note here. Despite these high cost ratios, these companies maintain solid operating profit margins. How is this possible?

A structure where the brand markets itself without advertising costs

The answer is simple: it’s thanks to trust in the brand, organic word-of-mouth marketing, and an efficient distribution structure.
Most consumer goods companies spend a fixed percentage of their sales on advertising and distribution costs. They pay distribution fees to secure shelf space in large supermarkets or gain visibility on online marketplaces, and invest heavily in advertising to build brand awareness among consumers. Brands like Cremoa, Helinox, and Kovea, however, have a significantly lower reliance on such marketing.
This is because they have already established themselves among campers as ‘brands you keep coming back to once you try them’. Much like a long-loved local hidden gem restaurant, they operate on a structure where customers come for the quality and trust, even without advertising. A virtuous cycle has formed where recommendations from experienced campers naturally attract even novice campers. Thanks to this brand power, distribution margins and advertising costs are reduced, and these savings directly help defend the operating profit margin.

High-quality products + low SG&A = meaningful profits

Another reason camping brands maintain operating profit margins despite high cost ratios is the efficiency of their selling and administrative expenses (SG&A).
Thanks to a premium strategy focused on quality, consumers are willing to pay the higher price point. This stems from the strong perception that “once you buy it, it lasts a long time.” While they invest generously in the materials and processes needed to create these products, they use costs efficiently for sales and marketing activities. In fact, these brands’ SG&A expenses amount to only about 10-20% of total sales. This figure is low even compared to most manufacturing companies.
Ultimately, this creates a structure where high-quality cost + low SG&A = stable operating profit margins. Consequently, even with a cost ratio reaching 60-70%, it doesn’t compromise the profit structure. Instead, it generates consistent profitability based on brand loyalty.

In Closing: The Power of ‘Essential Items’

The camping market is growing rapidly, but competition is intensifying simultaneously. Nevertheless, the reason brands like Cremoa, Helinox, and Kovea continue to be beloved is clear.
They focused on enhancing the intrinsic value of their products rather than engaging in short-term price wars, and consequently succeeded in earning consumer trust. This trust has become a more powerful competitive advantage than advertising budgets or distribution fees, positively impacting their overall profit structure.
The nickname ‘fundamental item’ doesn’t simply mean it’s old. It signifies a product with proven value, validated by countless users’ experiences. Brands chosen by consumers in this way ultimately survive over time and maintain stable profits. Examining the profit structure of the camping gear market reaffirms just how significant a brand’s strength and trust are as assets.