Fábio Fraga and Blue70: Innovation, Market, and a Love for Swimming

The turning point came when he contacted Blue70, initially without high expectations, as he believed the brand already had representation in Brazil. To his surprise, the market was “open.” The negotiation with John Duckett, then owner of Blue70 (headquartered in the US, but originated in New Zealand in 1993), was marked by unusual trust. John sent the price list and a sample display without requiring confidentiality terms or payment, allowing Fábio to calmly study the Brazilian market. Leda Fraga, Fábio's wife, even helped him financially at the beginning to clear the samples at FedEx, demonstrating the pioneering spirit of the undertaking.

The Meaning of Blue70 and the National Production License

The name Blue70 comes from the premise that 70% of the planet is covered by water, alluding to nature and a healthy lifestyle. The brand underwent a visual evolution, changing the full spelling (Blue Seventy) to the numeral (Blue70), seeking a cleaner and more direct identity, although both forms still coexist.

A crucial step in Blue70's strategy in Brazil was the suggestion by Armandinho Barcelos (from CBtri and CBDA) to license apparel production in the country. Armandinho pointed out that the swimming market is ten times larger than triathlon, and that there were no international swimming and triathlon brands with production licenses in Brazil. Fábio took the idea to John Duckett, who agreed to license apparel production, provided that quality and royalties were maintained. Interestingly, John, who had never licensed the brand before, asked Fábio to draft the contract, fully trusting his proposal. Four years ago, in February, the exclusivity and licensing agreement was signed, a milestone for Blue70 Brazil.

Positioning and Competition in the Brazilian Market

Fábio categorized the wetsuit and equipment market into three tiers: low end (with brands like Aquon, Mormaii, and Xterra), mid-range (TYR, Zone3, and formerly Aquasphere), and high end (Blue70, Orca, HUUB, and Deboer). He identifies Orca as the main competitor in Brazil, due to similar positioning and quality. However, he acknowledges that entry-level brands also compete, as the price difference for beginner products becomes less significant with installment payments. Blue70 aims to convince athletes to invest a little more in quality and comfort, emphasizing that a wetsuit is a second skin for a swimmer's body.

Engagement Strategy: Test Drives and the Athlete Experience

Blue70's presence at W3 began modestly around 2020/2022, with a “pop-up shop” set up in the car's trunk, an initiative encouraged by Leda Fraga. The initial investment at W3, a training spot for many São Paulo residents, did not result in immediate sales but proved to be an important investment in visibility. Blue70 evolved from a car trunk to a borrowed tent, then to its own tent, and today uses a trailer, which serves as a mobile store. The company is now a sponsor of W3 and plans to open a physical store within the complex in the next 60 days, offering a more complete and comfortable space for customers.

The wetsuit test-drive strategy, introduced in 2023, is a major differentiator, allowing athletes to try products before purchase – something rare in the neoprene market. This initiative will expand with a new partnership with Care Club, which will offer test drives in an Endless Pool (current pool) in São Paulo, Monday through Friday, by appointment. This location will allow simulating open water swimming and even conducting biomechanical assessments with and without the wetsuit. Additionally, Care Club will have Blue70 fins and goggle models available for testing.

Expansion and Achievements: Ironman and Circuito Mares

Blue70 Brazil began its expansion by manufacturing customized uniforms for sports consultancies like Limiar and Pinheiros Masters, which allowed for gradual growth. In 2022, the company secured the license to produce 9,000 transition bags for the official Ironman store in 2023, a significant achievement despite a tumultuous start to negotiations. Blue70 also had a presence at Circuito Mares, focusing on the growing open water market, after overcoming competition from major players like Speedo Brazil, Fabiola, and Arena in the traditional swimming sector. The attempt to secure sponsorship with CBDA did not materialize, but the brand continues to evaluate market opportunities.

Imports, however, brought challenges, such as Federal Revenue Service audits and unexpected delays. Fábio recounted a memorable episode where a shipment of wetsuits, already sold to Ironman athletes, was held in customs' “gray channel.” A personal letter to the inspector, explaining the athletes' urgency and the purpose of the Book Ministry (a book with testimonials from Christian athletes that Blue70 offers as a gift), resulted in the release of the shipment in time for the event.

Product Innovation and Price Accessibility

Blue70's strategy is to produce locally in Brazil what it has local know-how for, and to import from factories authorized by the global brand, ensuring quality. This applies to goggles, fins, and other accessories. The brand offers exclusive goggle models for the Brazilian market, such as the Nicolas and Ironman models. The new Aqua Vision goggles replace the Hydravision, offering a more comfortable profile that doesn't interfere with eyelashes, ideal for training and open water. Blue70 aims to make premium products more accessible, seeking to lower the final price of goggles by 20% (with target prices between R$180-R$220 for simple models and below R$400 for most), even if it means less profit. “I don’t want an extra 20% in my pocket. I want 20% more athletes using them,” says Fábio. The recently launched fins have an estimated price between R$490 and R$540, and a high-performance anti-fog spray, manufactured by the same plant as the goggles, promises to extend the product's lifespan, prioritizing customer satisfaction.

Record Breaker: A Quick Profile of Fábio Fraga

In the traditional “Record Breaker” segment, Fábio Fraga revealed more about his personality and preferences: he starts the day praying, prefers coffee, his childhood nickname is “Napão,” and he opts for long-sleeved swimwear for swimming and pool training. His favorite place in the world is Quebec, and he prefers cold pools at 24°C. The Troféu Internacional de Santos was his most challenging race, and his hobby outside of sports is reading. He trains in the morning and looks up to Alex Dias Ribeiro as a sports reference. His greatest strength as an athlete is swimming, and his weakness is running. His goal for the next year is to run the Praia Grande Marathon.

Future Vision: Blue70 Spoilers

Fábio Fraga shared first-hand Blue70's upcoming news. The first spoiler is the launch of the trisuit, a high-performance triathlon suit, featuring an Italian chamois, YKK zipper, aerodynamic ceramic fabric, and innovative solutions for the physiological needs of men and women. The launch is planned for this year's Ironman events in Curitiba or Brasília.

The second spoiler expands the test-drive strategy: in addition to the partnership with Care Club for Endless Pool tests, there will be shorts for students and the availability of fins and goggles for pool trials. Finally, the third and most ambitious spoiler is the inauguration of the new Blue70 store between April and May. The space, which will be approximately 200 m² (compared to the current 27 m²), will be a complete hub in Moema, near Visual Bike, with parking and all Blue70 products, in addition to Boco caps (the best caps in the world and exclusive licensee of Blue70 in Brazil). Fábio promises that the new store will bring unprecedented concepts and solutions to the global market.

Leda's Essential Role at Blue70

In closing, Fábio made a point of praising his partnership with his wife, Leda Fraga, to whom he attributes much of Blue70's success in Brazil. Leda is the force behind the organization, emotional support, and operational side, from setting up stands to managing sales and issuing invoices. Fábio describes her as the “brain” of Blue70, essential for balancing innovative drive with necessary caution, making her co-responsible for the brand's identity and growth in the country.