From Swoosh to Scorpion: How Castelli's Steve Smith Upended the Apparel Business

The following is my conversation with Steve Smith. At the risk of sounding hyperbolic, he's among the most accomplished and interesting people that I've met in the cycling business. In addition to being a hardworking and genuine guy.Steve started his career at Nike in Oregon.His dream job was working for Nike, and after 10 years with the swoosh, he decided to pull up roots and move himself and his wife to Europe. I asked him why he did this. He said, he just wanted a new adventure, to discover something new. And where he landed was at Manifattura Valcismon in Veneto, where he went on to help the Cremonese family to reacquire the Castelli brand.From bankruptcy, they took it literally to the moon because it's become among the top brands in the cycling clothing business. I'm really fortunate to know Steve throughout my career, and I'm really, really excited to share his story with all of you in the cycling world.00:00 - 02:30: IntroductionBrief overview of Steve's career trajectoryIntroduction to the podcast02:30 - 07:45: Early Life and Cycling BeginningsGrowing up in Boring, OregonEarly cycling experiencesFirst race bike and Campagnolo componentsEducation and interest in French07:45 - 15:30: Nike YearsStarting at Nike in 1990Working in sales operationsEuropean assignment in AmsterdamProduct line management for cycling footwear and sandals15:30 - 21:15: The Big Move to ItalyDecision to leave Nike and move to EuropeThe conversation with his wife about relocatingLearning Italian and preparing for the moveConnection with Tim Maloney leading to Manifattura Valcismon21:15 - 28:00: Early Days at Manifattura ValcismonInitial role with SportfulThe challenges of working in a small Italian family companyLearning the cycling market and Italian business culture28:00 - 35:45: The Castelli AcquisitionThe 2004 purchase of CastelliInitial strategy and involvement with the US marketRepositioning the brand back to its performance rootsHistory of Castelli and Maurizio Castelli's innovations35:45 - 42:30: Product Innovation at CastelliDeveloping aerodynamic cycling clothingThe creation of the GABA jacketWorking with team Cervelo Test TeamThe importance of the product development team42:30 - 48:15: Distribution and Marketing EvolutionInternational distribution strategyDealing with online retail and discountingChanging landscape of cycling apparel distributionImpact of COVID on inventory and the supply chain48:15 - 54:00: Marketing and Communication StrategyEvolution from print to digital marketingSponsoring professional teamsHow pro cycling's influence has changedApplying Nike marketing experience to Castelli54:00 - 60:00: Life in Italy and Final ThoughtsBecoming integrated into Italian cultureReflections on 20+ years in ItalyFamily company dynamicsLooking toward the futureRead the latest 'The Business of Cycling' BlogSign up for 'The Business of Cycling' Newsletter