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  1. 1. #048. €5 EUROPEAN SURF/SKATE/SNOW BUSINESS SWIMWEAR TRENDS SS11: Smokin' hot girlS in SkimPY bikiniS! SUNGLASSES hoW to mAXimiSE YoUr SAlES WhASS’UP With SUP? thE trEnD tAking EUroPE bY Storm BIG WIG INTERVIEW: ANIMAL’S SIMON WARREN Plus:RetaileR HelP, BRand PRofiles: diRtBall, Cool sHoe, BRunotti, on-snow demos
  2. 2. Managing and English Editor Jojo Cook 048 CONTENTS Surf and French Editor Iker Aguirre INDUSTRy NEWS P.10-12 Snowboard Editor Rémi Forsans TRADEShoW REVIEW – BRIght, gERMANy P. 15 RETAILER PRofILE – WOOdStOck, FRANcE P. 16 Skateboard Editor Holger Von Krosigk RETAILER hELP - PRIcE MANAgEMENt, PARt 3 P. 18-19 German Editor fine lines marketing gmbh SUPERkINI V. SExIkINI – SS11 SWIMWEAR tRENdS P. 21-22 ExcESS BAGGAGE – EMERgINg LuggAgE tRENdS P. 25 Art Director Owen Tozer at MadeUp SS11 BoARDShoRTS PIcToRIAL P. 27-31 TRADEShoW PREVIEW – huB, uk P. 23 French Editorial Assistant Denis Houillé BIG WIG INTERVIEW – SIMON WARREN, ANIMAL P. 24-25 Web & News Editor James Dalzial MARkET ANALySIS – StANd uP PAddLE BOARdINg P. 37-38 hoW To MAxIMIzE yoUR SUNGLASSES SALES P.42-43 Proofreaders Jo Fairweather, Lydia Heckl, Marie-laure Ducos ThE SEVEN hoTTEST SkATE hARDGooDS TRENDS P. 46-47 Contributors SURf SUMMIT REvIEW P. 49 Uwe Ballon, Chus Castéjo, Dave ‘DC’ Colwill, Fabien Grisel, Franz Hoeller, Muck Müller, Digby Reed, João Rei, BRAND PRofILE – cOOL ShOE P. 50 Luke Van Unen, Dirk Vogel, Denis Houillé. BRAND PRofILE – dIRtBALL P.52 Jobs and Distributor Services Digby Reed BRAND PRofILE – BRuNOttI P.54 Advertising & Marketing Clive Ripley NEW PRoDUcTS P. 56 MARkET INTELLIGENcE P. 59-66 Germanic Markets Advertising Konrad ‘Kone’ Heigl oPPoRTUNITIES P. 68-69 +49 (0) 89 5526 0915 EVENTS SchEDULE P. 70 Production Manager oNE EyED MoNSTER P. 72-73 Accounts Manager To Subscribe Publisher Clive Ripley WhAT DoES oUR INDUSTRy hAVE To SAy? Published by Extreme Sport Business The messages are blurred, hard to decipher. Rumors implosion, but hope is there because our base is 22 Friars Street, Sudbury of economic recovery are rife, yet the reality varies, fundamentally strong. Let’s learn from the lessons of Suffolk, CO10 2AA. UK each shop, city and country cautiously rediscovering the past, let’s live in the present, the future is finding Boardsport SOURCE is published bi-monthly its own core. The crisis has had some positive its course. © Extreme Sport Business. effects, forcing us to reposition ourselves in the All Rights Reserved present. Before, we were lost in a spiral of strategic Speaking of the moment - in this issue, we bring projections, with growth the only path permitted. you some stories of success that offer plenty Today, we are forced to live our lives in the moment. of inspiration - clearly evident in our Market And that present is more worried about equilibrium Intelligence section, where our network of European and longevity. In the race to the ‘always more’, our correspondents are all reporting sunnier times. In on thE CovEr systems threatened to crumble down like a castle of our Big Wig interview; we talk to Simon Warren, Arthur Rashkovan,Gotcha cards. But surf shines on. As does skate, and snow. Creative Director of Animal. The brand is an absolute Europe Marketing Manager All were faced with uncertainty, but we, our clients, pillar of the British market, and looking to increase photo: Nissim Aton our stores, our industry, we’ve gone back to our its international potential. In skate, we bring you roots, to the true foundations of our raison d’etre: the an in-depth look at the seven big emerging trends. passion. She is our Savior now, and she is burning In snow, we talk to you about the growth of the On ContEntS more brightly than ever before. Snow Demo scene, and in surf, we analyze a market Jordy Smith wins J-Bay in full expansion: Stand Up Paddling. Yes many of us photo: O'Neill The crisis has forced us to return to our essential considered it an intrusion in the line-up, yet the heart values, inadvertently offering a Noah’s Arc for our of the matter is that this sport is taking Europe’s world. Yes there has been suffering; some that did lakes, rivers and beaches by storm. Finally, we offer No part of this publication may be reproduced or transmitted not make it on to the ship in time, yet we should feel you an insight into the eyewear market, and show in any form or by any means, or stored in any retrieval system of any nature without prior written permission, grateful because our sports and our planet form the you how, with a little more understanding, you can except for permitted fair dealing under the Copyright foundations of our temple. Snow, waves, concrete optimize your sunglasses sales. Designs and Patents Act 1988. Application for permission – they talk straight to the heart. And the indicators for use of copyright material including permission to reproduce extracts in other public works shall be made to are unanimous: our sports are doing well; the tribe Always sideways, with hope ahead. the publishers. Full acknowledgement of author, publisher is growing. It may not be the case for all businesses and source must be given. The views expressed in this publication are not those necessarily held by the Publisher. since we still are to grow from the ashes of the Iker Aguirre ISSN # 1478-4777
  3. 3. INDUSTRY nEWS 048 BILLABoNG ADDS RVcA BREAThE WINS ANd MORE ShOPS ENvIRONMENtAL Billabong’s strategy of adding brands to its portfolio while expanding its retail presence shows no sign of slowing down. After months of speculation, the Californian based clothing line RVCA is now officially part of Billabong. AWARd Synonymous for its Artist Network Programme, RVCA will have all the backend On behalf of the Breathe Foundation; General support it needs whilst maintaining its creative integrity. A bigger player in Manager Drew Stevenson accepted a grant from its home turf in North America, RVCA will surely enjoy quicker expansion in the EOG Association for Conservation. The grant Europe and elsewhere with the backing of the ‘Bong… was awarded for Breathe’s work in an ongoing reforestation project in the Atlantic rainforest, chIEMSEE APPOINt NEW cEO Additionally, Billabong have also acquired the Canadian action sports retailer one of five biodiversity hotspots in the world. Feodor von Wedel has been appointed as new West 49, which is a nationwide chain of 138 stores, primarily in shopping The Breathe/Respira Brazil event was a ten-day CEO of Chiemsee. Previously Feodor was Founder malls, which includes five Billabong stores. Finally, four stores in Australia’s program focused on social and environmental and managing partner of creative agency Saint Byron Bay will now fall under the BB umbrella – a further indicator that its issues held in May this year. Day edits have already Elmos in Munich. Chiemsee plan to refocus their RVCA Founder Pat Tenore and some girls only a matter of time before this global retail strategy is expanded in Europe. been posted with a documentary based on the market presence by investing in a sharper and event due out in September. The EOG Association clearer brand profile. “Mr von Wedel has extensive for Conservation is an initiative from the European experience in dealing with brands and also he has outdoor industry with the objective of protecting excellent knowledge of the textile market. We are wild areas. very confident to reach our ambitious long-term Dc NAMES JASON SMIth AS NEW targets under his responsibility," commented MARkEtINg dIREctOR Chairman Peter Schmidt. Additionally, Peter Jason Smith is the new DC Snow Marketing Studnitzky has also been appointed as new textile Director, where he will oversee the planning Product Manager. RIP cURL and activation of all of DC’s Snow Marketing initiatives including print, digital, team, and PLANEt WEBSItE events. Jason comes to DC with 20 years of experience in the snow industry and brings METhoD BEcOMES ADIo APPOINtS NEW uk ANd LAuNchEd knowledge of marketing, events, sales, and experience as a professional athlete. He will be thE FIRSt FREE PAN-EuROPEAN IRELANd dIStRIButOR Adio Footwear have signed an exclusive Rip Curl’s new website showcases and outlines the company's environmental priorities - past, present working closely with Nick Olsen, DC’s Snow Team Manager, and all of the DC Snow team riders to SNOWBOARd MAgAZINE partnership with Ultra Sport Europe to distribute the brand in the UK and Ireland from SS11 onwards. and future. ‘Respect for the environment’ has been a key value ever since Brian Singer and Doug Warbrick continue to grow the DC’s Snow program. The move was born out of the licensing of Adio founded the brand in Torquay, Australia in 1969. Environmental initiatives include the ‘Save Our Surf’ and For the upcoming 2010/11 Winter season, Method will completely change their distribution by moving away by K2 to AL&S in March this year. In the UK, K2 ‘We Surf, We Care’ through which the company supports several reef protection and water quality projects, from news stands to become the first free pan-European snowboard mag to be stocked by over 1,200 decided to focus their attention on their winter working with organisations such as WWF and The Surfrider Foundation. The Rip Curl Planet Foundation shops continent-wide. products and so Nick Warman, the Adio Sales also drives a host of mainstream initiatives, such as energy consumption reduction, material recycling and "It's very simple, over the past five years it's become increasingly clear that news stand sales are in steady Agent for the past 10 years started to look for waste reduction. These initiatives are addressed through a variety of ways, including Rip Curl Pro events, GLoBE’S NEW decline. Sadly, our target audience simply doesn't buy magazines anymore. We could continue working a new distributor. Ultra Sport were chosen as beach clean up days, product design and product recycling. EuROPEAN PRESIdENt with the old paradigm or radically change our business model to adapt to the market's new realities. Going they have a collection of market leading brands Philippe Clarisse has been officially appointed to free is a win-win situation for everyone - advertisers, retailers and readers. From now on METHOD will be and Adio will be the only footwear brand in their the position of Vice-President Europe, where he found where it counts most, namely core snowboard shops and other spots where snowboarders hang out portfolio. Nick will be in charge of Adio sales and dIAMONd IS will manage the European operations and directly report to Matt Hill, Globe world CEO. Clarisse with a 100% pick-up rate plus the digital version also offered for free on our site,” commented Method CEO Rasmus Ostergaard. marketing at Ultra Sport. DVS BESt FRIENd started his career as a buyer for ‘3 Suisses’ – a leading French mail order company, before moving to Rip Curl Europe in 2001, where he worked as SkULLcANDy NAMES INtERNAtIONAL DVS Shoe Company has signed an exclusive licensing agreement with Diamond Supply Co. to produce European Key Accounts Manager. He joined Globe MARkEtINg MANAgER a new line of custom footwear. Under the terms of the deal, DVS will be responsible for the design, Europe in 2007, working first as French Sales Skullcandy has added industry veteran Tim NIxoN production, sales, and distribution of Diamond Supply Co’s footwear. Diamond will assist with the creative Manager and was quickly promoted to European DeBrincat as International Marketing Manager. direction and marketing of the product. Diamond Footwear will target traditional skate distribution outlets Sales Manager. Operating out of the new Skullcandy office in San OPENS NEW as well as boutique and urban retail channels. A special launch project with Diamond Footwear will be Clemente, California, DeBrincat is responsible released in the spring of 2011, with the full line projected to launch globally in Autumn 2011. for leading the creation and implementation hEAdQuARtERS of international marketing strategies. He was WESTBEAch ANNOuNcE NEW previously International Marketing Manager at INtERNAtIONAL dIStRIButORS Oakley, where he worked with regional offices fAf FINdS NEW PARtNER Westbeach have been busy rolling out their Almost 10 years to the day when Nixon established its first European Headquarters in Hossegor, France, to institute an international marketing platform distribution network in Europe, South America and Nixon has opened its new European office. The new customised HQ is located just around the corner to expand the brand's global presence. DeBrincat the Far East. The new distributors are as follows: from its previous office in Soorts Hossegor. During the opening night celebrations, the original team began his career in advertising for the automotive FAF AG current president, Erwin Flury and Peter Hürlimann, CEO of Starticket and Cinerent; have Atila - Benelux (in addition to their existing French members Iker Fernandez, Alain Goikoetxea, Fredo Robin and Javier Sarmiento were presented with a industry, where he managed and produced purchased FAF AG and AG from WIGRA Gruppe. Erwin Flury will continue to head up deal), Chile - Sport Head Quarters, China - Beijing customised, limited edition 51-30 watch. This ‘10-year Nixon’ watch is only bestowed upon employees advertising campaigns for Land Rover and Toyota, operations, whilst Peter Hürlimann will concentrate on developing the strong synergetic potential that Sunshine Extreme, Japan - Fieldgate, Spain - and team riders who have hit the decade of dedication mark. including being part of the team that helped align Cinerent's activities in the events sector bring to the operation. FAF AG and AG will move their Happy Riding. the Toyota brand with the core sports crowd at the offices to Cinerent's existing facilities in Zollikon, Switzerland. Dew Action Sports Tour. 10. - for daily breaking news... for daily breaking news go to: 11
  4. 4. INDUSTRY nEWS 048 cRÈME ON yOuR FEEt Crème International has launched its first ever footwear line for Spring 2011, comprising of eight men’s and five women’s models. The footwear styles have been developed with Crème's professional and amateur skateboard team of Patrik Pittl, Thomas Weber, Alex Geisler, Bertrand Soubrier and Martin Pek. Crème decided to design and develop footwear in response to growing demand from customers for Crème to adopt its creativity to footwear and provide a different, more dynamic alternative in the shoe business. Crème is now the only independent brand that designs and manufactures skateboards, wheels, trucks, clothing, accessories and footwear. Further plans include the launch of a retail flagship store concept in Europe, Asia and North America. CRÈME is now headquartered in Barcelona where it has just unveiled its first flagship store at Pl. Bonsuccès nr. 7. Crème now sells direct to retail in Austria, Germany, Switzerland, France, Italy and Spain. SPoRTJAM 2010 Irun, Spain – 18/19 September Sportjam's fifth edition is ready to rock at the 4000m2 exhibition centre in Irún on the South West border with France. The trade/consumer mix attracted over 6,000 boardsport enthusiasts last year, and enjoyed the skate competitions and visited the shop, brand and media stands. Sportjam is now the major skate event in Spain, with €10,000 prize money and 200 international riders competing on the new skate park and wooden mini ramp. Additionally, 1,000 customised sneakers and boards will be on display as part of the ‘So Real’ expo. ThE RoLLING PEoPLE LTD/BLAck BOX BEATNUTS NEW dIStRButOR FOR DRAGoN IN AuStRIA dIStRIButION BRANdS Beatnuts is the new distributor for Dragon in Austria with effect from Autumn 2010. For the last ten July 1st 2010 will see the start of a sales and distribution agreement between UK based The Rolling years, Beatnuts has been distributing and developing People Limited and US based Black Box Distribution, owners and distributors of Fallen Footwear and the Dragon brand in Germany, and now their deal Apparel and Zero, Mystery and $lave skateboards. Blackbox UK Manager Chris Pulman will continue to with cover Austria too, where Beatnuts has been represent the brands smoothing the transition. Rolling People, led by Director Dan Evans, are handling developing its portfolio for the last five years. Fallen’s Autumn 2010 deliveries whilst showcasing the Spring 2011 season. Since the liquidation of previous distributor Faze 7, Blackbox had been servicing the UK directly from their US based offices, with only sales based in the UK. k2 APPOINtS SNOWBOARd gLOBAL MARkEtINg MANAgER WINTER x GAMES K2 Sports has promoted Hunter Waldron to the position of Global Marketing Manager for EuROPE dAtES cONFIRMEd K2 Snowboarding where he will while drive all communications and marketing. Hall has been with K2 since 1992 working in a variety of roles within Mark March 16th – 18th 2011 on your calendar, as more than 125 athletes will compete from all over the the organisation in manufacturing, cad and tooling globe in the second Winter X Games Europe. Produced by CANAL+ EVENTS and ESPN, Winter X Games design and, most recently, as Senior Designer of Europe Tignes was broadcast live in eight countries, including France (Canal+ network), and distributed Snowboard Boots, a position which will now be to 166 countries and territories, including Latin America, Middle East, Pacific Rim, sub-Saharan Africa, taken over by Bill Hall. Brazil, Israel, Caribbean, North America and Europe. The three-day event attracted 66,200 spectators for the inaugural event. 12. - for daily breaking news... 13
  5. 5. tradeshow report by benni markstein bright 2010 the mission is accomplished: After five years and ten whilst North German retailer numbers were up. Also many brands reported editions in Frankfurt, Bright Tradeshow officially made the move to the many more of their international distributors attended. German capital. For Bright masterminds Marco Aslim and Thomas Martini, relocating their show to Berlin proved an organisational tour de force. But it Still, the show never felt crammed or overcrowded, given the ample amount was also an effort worth making, as the new location of Bright steps things of space to mingle and play. On that note, the overall floor layout leaves up a considerable notch, right into the international tradeshow spotlight. room for improvement, as some exhibitors were too far off the beaten track as to be discovered by wandering around aimlessly and had to be sought It’s a bigger and better Bright, all across the board: as opposed to the out specifically. former venue’s 10,0002 metres of exhibition space, Bright’s new home at the former GDR Ministry for State Security offers a whopping 12,0002 The overall vibe was relaxed and mellow as usual, just like it had been in metres on a total of three floors. Nevertheless, the number of exhibitors Frankfurt for the past few years. Although some brands could not exhibit saw a slight decline from 300 at the last outing in Frankfurt, to a total of at the show due to a lack of space, it seemed that some parts of the venue 280 exhibitors in Berlin. At the same time, many exhibitors took advantage still could have offered more capacity. “It was important for us to approach of the new location by doubling their exhibition space in terms of size. this gradually and not blow our full potential at the first show,” said Marco Lofty! Not so lofty, on the contrary, was the fact that some exhibitors got Aslim. stuck with rather small, windowless rooms – right in the middle of a +35°C heat wave - ugh! A wide range of events spruced up the show’s schedule, including a huge Tony Hawk show and concert extravaganza, demos by the international In terms of visitor attendance, the first edition of Bright in Berlin single- Matix and Nike SB teams, the notorious ‘Experience Extraordinaire’ party, handedly broke all previous records: Between Thursday and Saturday, more as well as some grass roots events like the Place Magazine video premiere than 12,600 visitors came to the show – more than twice the amount of or the Radio Skateboards ‘Rat Race’ scavenger hunt. Certainly, Bright was Bright’s last winter edition in Frankfurt. The percentage of international far from lacking excitement. visitors all but quadrupled to an all-time high of 40%. Holding the show during Berlin fashion week with an overlap with B&B meant that retailers Overall, Bright was off to a great start in Berlin and the new venue still could cross from one show to the other but the traffic was not as much as leaves a large amount of potential to be realised. Here’s looking forward expected as the shows are quite a distance from each other. With the move to many more action-filled tradeshow editions in the German capital. The of the show to Berlin the number of Southern German retailers decreased future still looks Bright! For more info 15
  6. 6. retailer profile WooDSTock, FRANcE What happens if work and passion become one? It is rare to find shops where everything is for sale from the moment you set foot inside - from the floor through to the decor, right up to the rafters - literally. An astute selection of brands and a technical, relaxed atmosphere sets Woodstock apart on France's southwest surf shop scene. Interview by Denis houillé Could you tell us the story behind the shop (founders, concept, etc)? How has the average shopping basket changed in the last five years? The idea came in 2003 after Counter Culture Clothes came to an abrupt end Indexing has significantly grown in the last five years, as much for technical in the US and in Europe. Patrick Watin and I (Stanislas Rinaldi) were in charge products as for clothes. The average shopping basket has followed this of the brand's commercial development in Europe and were firmly rooted in movement, which has reassured us in our choice of strategy. 'counter culture’. The concept of offering technical (surf, skate and snowboard) products and alternative, original clothes that were less mass-market seemed What does the future hold for surfing in your opinion? obvious to us. We chose the name at the start of the Woodstock adventure Surfing is becoming ever more popular - you just have to look into the water and for various reasons. Wood is the main material common to a lot of our to see that! Brands and surfboard makers, schools, clubs, surf camps are toys: surfboards, snowboards and skateboards will always have a wooden multiplying every year. I'm happy to see the fascination grow... What saddens soul. Our Hossegor shop is very roots and is covered in wooden cladding. me most is to see that local shapers have unfortunately become the victims of Also, Woodstock represents a spirit, a mindset and non-conformism that the market's globalisation. characterises its two founders and the people who have contributed to this adventure. How do you see business in five years time? In five years, I'll be on my yacht in the Maldives or the Mentawaii busy surfing, The success of the first shop (Hossegor) has brought about the opening of a eating grilled fish and drinking cold beers while the worldwide chain of second (Biarritz)? What's next? Woodstock shops, after having burst onto the stock market, is spewing out Opening the Biarritz shop in August 2009 just happened naturally; we had millions of dividends... or not, maybe. plans to open a second outlet in the southwest but we were running pretty tight financially. The arrival of a new shareholder (Pierre-Bernard Gascogne), who What is the biggest challenge that a retailer faces and how do you overcome it? took control of our company, gave us a boost and we opened in Biarritz in the Knowing how to adapt and react to the changing environment: late seasons, old Surf Session offices. Next? Bordeaux, Toulouse and Marseille are all ideas fierce competition, economic downturn and cash flow fluctuations mean you but nothing is concrete as of yet. have to constantly question what you do, adapt your strategy while remaining faithful to your identity and philosophy. Are you developing an Internet sales system? Do you use social networking? We are working on a new version of the Internet sales site, more modern, dynamic, more indexing and a better customer loyalty service. The old version "Through the choice of our products, the artists of the has become obsolete. Developing online sales is indispensable these days. Social networks like Facebook allows us to keep in direct contact with our Surf Gallery, as well as the decor, furniture and book/ customers and friends, communication in real time. press corner, we have created an extraordinary world of What is your shop's product mix (%)? Equipment/Textiles? 70/30 modernism and originality" Surf/Skate/Snow? 40/20/40 What five products/brands could you not live without? How does your establishment set itself apart from the fierce competition 1. Wetsuits found in Euskalifornia (Basque country)? 2. Shoes and sandals We try to offer more than just a surf shop; we want to convey a different spirit, 3. Boardshorts borne out of the original Californian surf culture of the 60s and 70s. Through 4. Boards (surf, snow and skate) the choice of our products, the artists of the Surf Gallery as well as the decor, 5. Outerwear furniture and book/press corner, we have created an extraordinary world of modernism and originality. Aware of the quality and technical properties of the products you stock, are your clients more inclined to buy the top of the range? Our stock, within the three main domains, is comprised of entry level, mid range and top of the range. Customers generally favour a good value-for- Hossegor, 96 Avenue des Couteliers 40150 Soorts-Hossegor, France money ratio but there are still customers for whom the top of the range means + 33 (0) 558 419 432 guaranteed value. Being solid, technical and light comes at a price! Biarritz, 44 Rue Luis Mariano, Docks de la Négresse, 64200 Biarritz + 33 (0) 977 462 219 16.
  7. 7. retailer help retailer help Stefan Dongus is a co-owner of Cologne-based only lowered over time, as market penetration increases. Moving products at Proactive price reductions are aimed at stimulating demand for a certain product fine lines marketing, a marketing and consulting higher price points right from the start is mainly aimed at covering investments with lower prices before competitors have a chance of even offering their goods. in product development as quickly as possible. What happens to the level of demand afterwards depends on a large number of PRIcE part.03 agency specialising in the action asports industry. different factors. A Skimming PriCing StrAtEgY mAkES SEnSE if: •There are a sufficient number of elite innovators in the customer target group. Reactive price adjustments are a necessity when a drop in demand occurs MANAGEMENT How many consumers are actually willing to pay lots of money for a novel type of because of the competitor’s market entry. Lowering prices may help to bring product? Our industry is full of frequent examples for products that can generate back demand quite a bit, but usually not up to previous levels. ChooSINg The RIghT pRICINg STRaTegY the necessary hype and be sold at high price points for some time • The product is at a high risk of becoming outdated rather quickly. Short product When constant pricing is maintained, we also see a drop in demand because of life cycles require rapid payback on investments in development the competitor’s arrival. However, constant pricing policy will do little to revive •The risk of competition from similar products is relatively low. If there is a demand levels. chance of launching imitation products at equally high prices, it’s only a matter the past two episodes of this series highlighted the basics of price point management for boardsport retailers, of time before competitors flood the market with similar offers See Fig 02: Below • Manufacturing and distribution capacities for this type of product are limited. together with some of the main criteria for driving an efficient pricing policy. As we have seen, a purely mathematical Whenever a company can only produce and sell a limited quantity of a certain Empirical studies in the consumer products segment indicate several advantages product, offering them at the highest possible price points is always the best of driving a proactive price reduction in anticipation of the competition’s arrival. approach to pricing is unable to deliver sufficient results for both retailers and manufacturers. At the same time, option. Lowering prices at an early stage has proven beneficial for sustaining long- term demand levels. But in how far these findings apply to the retail sector is a keeping in mind factors such as reference prices and price thresholds will offer invaluable insights into the minds The main danger of this pricing strategy is that it is highly likely to attract different story and highly depends on the situation and competitive environment competitors into the market. of each individual store. of consumers; and strong guidelines for pricing. the third part of our series covers a variety of options for price When it comes to deciding between a Skimming and Penetration Price positioning and strategy. Stefan Dongus has the details. Strategy, retailers need to weigh the short-term, secure, as well as long-term oUtlook chances of making a profit by building market shares. The quickest profits are With this broad range of price point positions and strategies, retailers can realized by running a Skimming Pricing Strategy. But for long-term financial draw on a large amount of creative options for setting their own prices. The PriCE PoSitioning fig.01 Pricing StrategieS for introducing new ProductS gains, attacking the market with a price point-aggressive Penetration Pricing main difficulty lies in picking your own position from a variety of choices. It’s a well-known fact that pricing plays an important role in positioning a brand Strategy may be the best bet. There’s no one-rule-fits all solution. Choosing the right price point position, on the market. The same applies to retailers. After all, a store is also a brand, after all, will depend on numerous factors. The main focus should be on price associated by customers with an image highly based around prices as well the PriCE Point StrAtEgiES lAtEr in thE ProDUCt lifE CYClE the competitive environment in your region. How many retailers are there? assortment of products. Shops can mainly be grouped into low, medium and Setting the right price point is not only key during product introduction, but Which products and brands do they carry? What prices are consumers ready high price positioning. At the same time, the majority of boardsports shops are also at later moments throughout the product life cycle. Price point policies to pay, etc.? actually offering a highly similar assortment of brands. So, is it even possible continue to play a decisive role, especially when competitors are pushing for a store to use price positioning to differentiate itself from competitors? The SkImmINg into the same segment with similar products. This not only applies to brands, At the same time, stores need to factor in a number of internal, organizational answer is yes. On one hand, most brands are offering a relatively broad range of pRICINg but also to stores. Whenever new rivals appear on the scene, battles over parameters: How much capital is stored away to keep up with escalating price prices in their line-up, with products for nearly any budget. In these cases, the STRaTegY price points are an almost unavoidable part of the game. battles? How much risk are you willing to take? How high are stock levels? store’s purchasing policy – meaning which products they order – is a main driver of price point positioning. On the other hand, stores can actively use price points peNeTRaTIoN Whenever competitors arrive on the scene, three different pricing policies But no matter how retailers choose to proceed, the key to success is to shape their own price-specific image. Some key words here are sales prices, pRICINg usually set in: In case of a proactive price reduction, companies lower maintaining a unified, consistent price positioning and strategy for the store. rebates, extra services, customer club cards, etc. STRaTegY their prices before competitors actually set up shop in the area. Reactive This will lead to a clear image and expectation among consumers. In the next price adjustments set in after the competition has already entered the episode of Retailer Help, we will look at the many options for price point At the same time, a division into low, medium and high price positioning does market. Maintaining constant pricing means carrying on undeterred by the differentiation. not account for the price worthiness of a store; relating the prices of products competitor’s arrival. to their actual quality and service coverage. Stores can be equally price worthy at a low and high priced positioning. The important part is in how far the customer feels that the products he’s purchasing at the store are actually “worth“ their price. time Fig.02 Pricing StrategieS When stores are driving a discount strategy, the relative quality of product A Penetration Pricing Strategy is aimed at winning over the market at an performance exceeds relative pricing levels – the product is perceived to be early stage by offering low price points. A brand driving such a Penetration Proactive Pricing Strategy reactive Pricing Strategy constant Pricing Strategy more than worth its price. Discount stores usually focus on covering one main Pricing Strategy is trying to keep out potential imitators by offering the most time of competitor’s market entry time of competitor’s market entry time of competitor’s market entry product or service segment and base all advertising on price points. For the attractive prices possible. By establishing a low pricing order, these brands most part, discount stores offer permanently low prices, as opposed to rebates want competitors to lose interest in offering similar products. At the same time, or special sales. Outlet stores, a phenomenon gaining ground in our industry in creating such a barrier for the competition’s market entry for competitors with many countries, are also driving a discount strategy. But here’s the main risk a PPS also means that profits will only come in at a later time, as lower price of discounting: Low price points can carry over into perceptions of product points also mean lower margins. quality. Consumers may assign less value to a store or its product, based on DemaND low price points. gEnErAllY SPEAking, A PEnEtrAtion PriCing StrAtEgY onlY mAkES SEnSE if On the other end of the spectrum, stores can drive an overcharging strategy. • Consumers actually notice the advantageous prices In this case, the relative quality of product performance remains below relative • There is an actual risk of competitors launching similar products pricing levels – the products are not worth their money. This strategy is common • Driving a PPS does not conflict with the brand’s existing or desired image. pRICe to areas swarming with tourists, or at skate park pro shops (ever paid €10 to replace a kingpin?). In the long run, such a strategy is far from advisable and The main risk of this kind of pricing strategy lies in the relatively long payback offers little chance to succeed. period. The product needs to be able to perform on the market for a long period of time before it can generate any profits. Deciding on the right price points for introducing new products is mostly up to time time time the brands. There are two main strategies at work here, which stores should On the contrary, a Skimming Pricing Strategy means introducing new products also keep in mind for adjusting their own pricing policy accordingly. at a relatively high price, usually at lower quantities on the market. Prices are 18. 19
  8. 8. swimwear trends pic: Ripcurl SUPErkINIvsSEXikINI SS11 SWIMWEAR tRENdS Over the years, women’s swimwear has grown into a fashion conscious and lucrative business. For Spring / Summer 2011 there’s a lot for everyone to get excited about with fresh new styles and revolutionary innovations. We’ve tracked down the designers of your favourite brands and taken a peek at their trend books to give you an insight into the hottest colours, prettiest prints, must-have styles and brand new technology. katie hutchinson reports. All thingS bright AnD bEAUtifUl Another brand going back to their eighties archive is Hot Tuna who use “neon The SS11 colour pallet is bright and bold. The buzzword cropping up in many pigment re-active garment dye in bright zinka colours with archive Hot Tuna designers’ sketches is neon. Billabong say their range is “a blaze of bright colours; eighties graphics.” raspberry, neon green, bright blue, neon violet and curry.” For Roxy, it’s about a ‘graphic punch’. Their range is “an explosion of colours, fluros, neon blends, At Rip Curl prints have a strong surf theme inspired from hot destinations around bright tones, yellow, green, blue and pink.” For Nikita, a black background base the world. “From the vibrant mix of vintage cultures of Miami to the luxuriant off sets their strong colours contrasting “fusion punch, neon pink and waterfall.” flora and fauna of the coast, prints feature paradise scenery of lush vegetation, Over at Hot Tuna it’s about mixing neon with neutrals from “khaki with neon palm trees and hibiscus flowers, strong geometric motifs, with liberty and jungle orange and grey with neon pink.” Oxbow simply say the colours dominating their scenes.” And from the beaches of the world to a bit closer to their home turf, line are “bright like neon pink.” Animal look to their own doorstep and Poole harbour as inspiration on a bikini with a custom sail boat all over print. Gul are also looking out to sea, “We believe So hot pink is definitely trending for summer but what else is everyone talking the nautical inspiration will still be strong in 2011 but with more vintage and about? Brunotti say the most important colour for them is blue. “Blue represents heritage emphasis.” the treasured blue ocean which is our friend for life. For women we have a totally blue colour line with black and white and then bright rosa pink is combined with Spots and stripes are a big trend at many brands. It’s spots for O’Neill with wasabi which is a blue-ish green.” Animal have a mixed pallet but also look to their big dot bikini; and stripes for Nikita who say their collection “has fewer the sea promoting a nautical theme, their key colours being a combination of prints and more stripes as a whole.” At Gotcha the key trend is their “marine blue and white. look stripes, multicolour stripes, mille fleurs combined with mini dots and mix Body Glove spans the spectrum with their element themed collection consisting and match of all-over prints in tops and bottoms.” Among other prints, Volcom’s of Wind (black, white, grey, yellow), Water (calming blue and aqua), Fire (strong range includes sailor stripes, plus their new Hazzard Dot print is a collage full reds, oranges, pinks) and Earth (intense pastels of lilac and light green). of stones, stripes and dots. Meanwhile, Pull-in talk of tropical and fun brights dominating their prints; but Embroidery and detail is once again apparent in many collections. For Animal for their block colours “there’s a more tonal palette with dusky coral colours, their new floral placement print has “an embroidery detail, a move on from powder blue and silver grey alongside more powerful colours like turquoise or basic print styles which gives a very classic expensive look.” Protest’s complete indigo blue, contrasting with black.” range is embellished with a lot of details like embroidery, sequins and foil print. Volcom’s collection also includes embroidery and have added studs to their PrintS AnD PAttErnS swimwear for the first time. Some brands have delved deep into their archives, taking prints of yesteryear as inspiration for their Spring/Summer collections. Roxy is re-editing house-made StYlE filE vintage prints but this time refreshed with bright bold colourways. They refer Classic bikini shapes reappear for SS11 with more mix and match options plus to “reinventing vintage motifs like the Hawaiian in two tone or multi-coloured there’s an increase in new, more directional styles. On top, the bandeau is big versions, waves, polka dots and stripes, not forgetting the famous check pattern news. Hurley says it’s the one to watch; “bandeaus are becoming more important, inspired by Echo Beach.” In vintage Californian spirit, Roxy is using the palm driven by the sportswear trend of strapless dresses and tops.” Roxy concur, tree, this time worked as a photoprint for a more up-to-date feel. Gotcha also go “The bandeau is a must-have. After a few seasons quite shy on this product we back to their roots: launched in 1978, their designer explains that ‘the eighties are now able to have constructions that make any morphology feel comfortable saw Gotcha making it’s flurore. At that time the artworks were outspoken and and very cool looking - it has the Bond Girl touch.” O’Neill are pushing the Lava colourful, and mostly combined with black and white. The designs we made Bandeau Bikini which has a twisted shape, is strapless and padded. Pull-in for this summer are inspired on that time, though translated to today’s trends.” introduces the new bandeau styles ‘Friday’ and ‘Julia’, the latter a more retro 21
  9. 9. swimwear trends feel with ringed detail. Fox also introduce a bandeau top to their range as well as another new style top – the all important racer back. Protest offer value for money with their new reversible twisted top, wearable in four ways, giving you four bikinis for one price. Volcom also says many of their styles are reversible, both tops AND bottoms. With the top half covered, what’s new down below? A high-waisted bottom is one of Insight’s key looks. Think less Bridget Jones and more forties/fifties glamour. “The influence for the silhouette came from high waist swimwear styles from the 50’s. It’s flattering, feminine and fashionable.” Pull-in also features a high- waisted bikini bottom, the Delhi. In contrast to the retro look, the other welcome news is that a new, more minimal bikini bottom is a strong trend for next summer. LSpace’s flip bottom can be worn high waisted or rolled down for literally a more ‘cheeky’ look as the back is low and very revealing. For Oxbow, the new shape is a ‘sexykini,’ which shows a lot more cheek! thE onE PiECE rEvivAl Is the one piece making a revival? A big yes from some of your favourite brands! Rip Curl introduce a specific line of single piece swimsuits. LSpace agrees; “one pieces are a hot trend. You’ll find a variety to fit every swimwear junkie.” For Insight, “the swimsuit doubles as a fashion piece and looks great on all shapes and sizes. Our girl loves to wear it with denim cut-offs and throw-over shirts.” They say the all over suit is ‘a great style to showcase our unique art. It brings together a mix of hand-painted watercolour florals, trashed paisley, earthy feather plumage and soft 70’s opulence’ For Insight, “the swimsuit doubles as a Many brands are expanding on their one-piece success from 2010. Gul say fashion piece and looks great on all shapes “Swimsuits are always our biggest seller. It will be our biggest style for and sizes. Our girl loves to wear it with denim pic: Insight marketing as we feel the market is still under subscribed.” Nikita’s swimsuit made a debut last season and returns with a new cut exposing the back. Fox say it was well received for them in 2010 and so are updating the style with a cut-offs and throw-over shirts.” centre front zip and tonal all over print. Pull-in are also expanding their one- piece line with “The halter neck ‘Kelly’ style now in six prints and the bandeau cut ‘Manhattan’ now in eight prints.” For some the trikini is still gathering pace. The trikini (not to be confused with a triathlon suit!) is in between a bikini and a one piece. Take your classic bikini “Bandeaus are and join together in the middle, still exposing the mid-drift and voila. Oxbow say it adds glamour to a swimsuit, whilst Roxy believe it “is almost as functional as becoming more a one piece but with the sexiness of a bikini.” important, driven by WhAt’S nEW? For any woman who wears a bikini to surf in, the biggest annoyance is having the sportswear trend to constantly readjust it to keep it in place. O’Neill believe they have found the answer with The Superkini, which is made from a fabric called Nanofront of strapless dresses and makes it literally stick to your body. “The fabric is made with an ultra fine nanofibre, meaning the surface area is ten times greater than normal fibres. The and tops,” hurley. pic: Volcom nano-scale uneven surface generates a frictional force allowing the fabric to grip, guaranteeing little slippage or movement.” Elsewhere on the technological front, Billabong have collaborated with Invista, maker of XtraLife fabric, for a series of bikinis. The fabric “provides a long- lasting fit and stands up to the harshest conditions. It also has high resistance to chlorine, sun lotions, and UV rays.” A big story Pull-in are highlighting in SS11 is the technical benefits of their materials. “The Lycra is blended to give unique stretch and recovery properties, which can be stretched up to seven times its initial length before springing back to its original position. In addition the Elastic Jaquered waistband is made of Arabic gum, a super stretchy component mainly used in snow goggle application.” So what should the SS11 beach babe be stepping out in next season? For full on sophistication, the one piece gives a slick, stylish silhouette whilst the high waisted bikini certainly ticks the glamour girl box. For those wanting to make a statement, it’s bright and bold all the way with packs of prints to choose from. For serious surfers, the Superkini is the answer. And if you’re feeling a bit daring go the full hog, grab yourself a new more revealing bottom and show off pic: Roxy that bikini bod! 22. - for more SS11 swimwear shots...
  10. 10. e x C e S S BAGGAGE A look at emerging luggage trends Luggage has become an increasingly lucrative sector of the accessories business. Just where would we be without handbags, boardbags, wheelies and backpacks? Denis houille looks at forthcoming trends. Even in times of recession, the luggage market has held its back packs dedicated to short weekend trips or day use has been selling over ground. Gravis report a sales increase of 20%, and FCS have also strengthened expectations. The mission is a must have for surfers with pocket for fins and their position in the marketplace. Oakley have experienced a 60% growth accessories as well have ergonomic back support. The Longhaul travel bag in the category. Yet it’s interesting to note that in terms of ‘best-sellers’ dedicated to long surf trips has been a really good seller too.” each country has its own distinct trends. “Our best sellers vary depending on the country,” says Dakine’s Alexandre Frout. “For France, technical back Dakine are offering two new limited edition collections for next summer. The packs are the key items (helipro, helipack, mission) and in Germany, street Re-Gen collection, which offers an “eco-friendlier alternative”, built using backpacks (back to school) do best.” 100% recycled PET fabrics and recycled buckles. The second is their AC Series, an Artist Collaboration with talented young international artists. Back to School, is of course, a traditionally lucrative sales period in the luggage business, and for many manufacturers it’s a reliable cash cow. “Entry price Oakley are another brand for whom art plays an important role, with 70% ‘back to school’ lines always sell best because it is a recurring business. of their line being art inspired and 30% technical. For SS11, they’ve got a This line, as well as the basic backpacks range, account for two thirds of the brand new roller bag line, the Oakley Mini Me Roller black version, with an range. The rest being technical or travel oriented,” says Quiksilver’s Marc- embossed pattern, which they anticipate being a top seller. Alexandre Ducoté. DC, say ‘less is more’ when it comes to surplus detail in this sector, instead the priority is to provide a fresh line of packs that live up to trends in terms of fabrics, prints and colour. light, YEt toUgh Trends aside, weight and durability are of course, two essential requirements in the luggage world, and producing comfortable, lightweight and rugged EmErging trEnDS products – at competitive price points, is the holy-grail for manufacturers. Fabian Ahrens International Sales Manager OGIO, points out that a new Specialists Evoc, say this is at the heart of everything they do, “We are and emerging trend for the younger customer is for wheelie backpacks, passionate about our work and this passion is inherent in the details of all meanwhile Gravis say they are, “finding that more and more people are our products,” asserts Jan Sallawitz, Marketing Manager. traveling with soft case duffel bags. This season we designed two new travel duffels and sales are very strong.” They have also designed a new basic pack Gravis say, “For SS11 we developed a new flyweight tarpaulin material that for SS11, the Uno, which is offered for a lower price point. is lighter and environmentally friendly. This material is lightweight, water- It’s really tough for modern people to get around without all their hi-tech resistant and strong. The finishing of the material has a subtle shine giving paraphernalia (mobile, laptop, iPod), their surf gear (fins, keys, wax,) as an effect that looks like leather. We feel this material story will perform great well as their normal work or traveling gear. A good bag not only stores and at retail,” comments Joseph Babcock, Director of Product. protects your essentials but also separates them and makes them easily accessible. “At F.C.S. supplying bags perfectly suited to surfing is our primary What’s on offer is relentlessly expanding; colour schemes, new functions, focus. That means different volumes, shapes and functions are destined for new fabrics - but the real battleground is in pricing. Minimalism is sweeping different uses; from daily use to the surfing weekender or the long surf trip,” right through the market and it’s the most basic and cheapest that sell best. says Mike Durante, Design Manager, adding, “we test our products every day Solid, fashionable and affordable: the 2011 baggage checklist is clear. and do everything to improve the lives of surfers who travel. Our Mission 24. 25
  11. 11. boardshort trends 89 OF thE BESt BOARdIES FOR SS11 AnAlog AnAlog AnAlog bEnCh billAbong billAbong billAbong brUnotti brUnotti CirCA ChiEmSEE ChiEmSEE ChiEmSEE DC DC 27
  12. 12. boardshort trends boardshort trends EAt My ShortS! DC DirtbAll ElEmEnt ElEmEnt ElEmEnt hUrlEY inSight inSight inSight lightning bolt EtniES EtniES EtniES foX foX lightning bolt lightning bolt mAkiA mAkiA nikE 6.0 foX globE globE globE gotChA o'nEill o'nEill o'nEill oXboW oXboW gotChA gotChA gUl gUl gUl oXboW PlAin lAzY PlAin lAzY PoWDEr room ProtESt horSEfEAthErS horSEfEAthErS horSEfEAthErS hUrlEY hUrlEY ProtESt ProtESt PUll in PUll in PUll in 28. 29
  13. 13. boardshort trends EAt My ShortS! qUikSilvEr qUikSilvEr qUikSilvEr riPzonE riPzonE riPzonE rUStY rUStY rUStY SAntA CrUz SAntA CrUz SAntA CrUz Untho Untho Untho volCom volCom volCom WESt WESt Read the full SS11 Boardshort trend Report at WESt zimtStErn zimtStErn zimtStErn 30.
  14. 14. tradeshow preview thE huB the uk’s new and only summer board/street tradeshow - the huB - takes place in Bristol on August 10-11th, SoUrCE catches up with organiser Lucy McPhail to find out what’s in-store. Where did HUB come from - why this, why The name HUB came out of exactly those can do stand up paddle on the water, co-ordinated now? conversations with the industry about the need for by BSUPA, and skate demos on land on the King In 2007 HUB organiser Brintex bought the a focal meeting point for the business, and a brand Ramps mini-ramp). It’s very central, with lots of tradeshow Surf Shop expo which had served the that could encompass all boardsports – it works cafes and bars nearby – plus its outdoor, held in a UK boardsports business well for about ten years, for the urban skate business as much as for surf, series of marquees, and offers a whole different with a strong buying show which was valued bike or mountain board. We’ve maintained the feel to a standard trade show hall. for presenting the mix of hardware not seen at mix of hardware and apparel, built on the existing the fashion oriented events, along with apparel, buyer database and put together a new focus for Mixing business with fun footwear etc. It was a particularly strong event the UK boardsports business. The old Surf Shop was a strong buying show in for independents, and a great industry focus for its day, and HUB will be too. But in addition, we the UK. Why the move to a new location? felt it was important to add the element of lifestyle The old Surf Shop was held in Exeter for its and fun to the event – basically we want buyers to In the run up to the 2008 show, the surf side of easy access to what is a massive UK territory leave the show having sourced great product, and the business in particular was suffering. On the for brands to cover – the South West of England, with new ideas from the retail business sessions back of three poor summers, and with a recession South Wales, the Channel Islands and Ireland. The we’re running at the event, but also having looming and uncertainty across the market, we move to central Bristol retains the ease of access enjoyed the show. Hence the SUP demos, street decided not to run the show in 2009. I’m really to that territory, with Bristol international airport skate contests, artists creating live on site, and of glad that we took that decision. The industry – serving the whole of the UK and Europe, and for course the first night party, for buyers, brands and buyers and brands – really missed having a selling London buyers, it’s only 1.5 hours by train. riders to chill out and network. show, and a focus, but it gave time to research the business to find out what the industry really Bristol also has the right feel and vibe for this HUB sits right between Newquay Boardmasters needed. Nothing was off-limits, as we had the show – it’s a city with a great young culture of and ASR, so buyers have had time to get a view opportunity to re-think the whole event – brand, skate, surf, music, fashion and art. Having spent of how the season is going, and it works for the concept, location, marketing etc, which was a week sourcing a new venue in the city I kept brands in their open selling period. On the costs, actually a really interesting and exciting process. on coming back to the site we’ve chosen, as it’s we’ve kept the space rates as the last Surf Shop, a famous skate spot, right on the water (so we so the same as two years ago. See you in Bristol! For more info tel: +44 (0) 207 973 6635 Email 33