@Mark. Sorry mate. I disagree entirely. 

This conversation reminds me of recent dialogue on the Motley Fool podcast (ring a bell, Andrew?) re: Rolls-Royce watches being incredibly expensive, but knowing where they stand on the market. Many brands today get stuck between the affordable vs quality/luxury fight - sometimes it can be beneficial knowing where you stand and not getting your backside bitten from both sides of the fight. 

My Rolls-Royce/Kathmandu comparison is obviously an ordinary one, but you get the point I am trying to make. To answer Stuey's question, it depends on what part of the world you are in (and by world I mean where you are situated in a very diverse-weathered Australia). Yes, Kathmandu is popular within the camping and activities crowd due to their quality. But not only with that target audience. 

I am sure many will agree with me when I say, if you own a Macpac, a cheap Kmart jacket and a Kathmandu, you will very quickly understand that one of those (sorry Macpac, but you are an inferior brand and your gear isn't as durable) is much better quality than the rest. 

My opinion? Travel through some of Australia's colder areas (looking directly at you, Canberrans and Taswegians, and even our friends across the Tasman) and I will guarantee that you will see plenty of Kathmandu-branded gear - not for camping or activities, but general day-to-day clothing. I have typically resided in colder areas (guilty: i love the cold) and they are literally everywhere. Why? Because it is bloody freezing for half the year and some items are worth the investment. 

They often say invest in brands you see and use everyday because you understand their worth. You cant blame people that constantly see Kathmandu jackets and other clothing and think "they must be doing something right". Sure, they arent a perfect business and they have their fair share of issues - and to be honest I am not a shareholder and likely never will be - but they are bloody good at making good-quality gear and they are fortunate to be in a market where many consumers (obviously not you, Mark ;)!) will make significant investment in their comfort. 

Disclaimer - not a shareholder, but an absolute lover of Kathmandu's quality clothing.