Click below for fullscreen.

8,831 views
8,782 views

Published on

BoardsportSOURCE - Issue #49 - English.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
8,831
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
15
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Click below for fullscreen.

  1. 1. #049. OCTOBER 2010. €5 EUROPEAN SURF/SKATE/SNOW BUSINESSSNEAKERfil 4 PAGES thOf SKAtE ShOE PORN!SNOWBOARD MARKET2009/10 EUROPEAN SAlES ANAlYSiSKEEPING IT (UN)REAL:thE RiSE Of COUNtERfEit SKAtE GOODSBIG WIG INTERVIEW:adidas jascha mullerBiG BUSiNESS iN SMAllS- thE UNDERWEAR MARKEt UNCOVEREDPLUS: NEWS, EVENTS, RETAILER HELP, BRAND PROFILES: CONTRACT SNOWBOARDS, CREATURES OF LEISURE, URBAN KREATION
  2. 2. 049Managing and English Editor Jojo Cookjojo@boardsportsource.com INSIDE THE ISSUESurf and French Editor Iker Aguirreiker@boardsportsource.com NEWS 10Snowboard Editor Rémi Forsans FINANcIAL INDEx 12remi@boardsportsource.com RETAILER AWARD – INSOMNIA, BULGARIA 14Skateboard Editor Holger Von Krosigkholger@boardsportsource.com RETAILER HELP 16German Editor fine lines marketing gmbh EVENT ANALySIS – TONy HAWK TOUR 19source@finelinesmedia.de cOUNTERFEIT SKATE GOODS 20Art Director Owen Tozer at MadeUpowen@boardsportsource.com LIFE AFTER PRO SURFING 23www.thisismadeup.co.uk SKATE SHOE PIcTORIAL 25French Editorial Assistant Denis Houillédenis@boardsportsource.com HUB TRADE SHOW REVIEW 31Web & News Editor James Dalzial INDUSTRy INSIGHT – MEDIA TRAINING 33james@boardsportsource.com BIG WIG INTERVIEW 34ProofreadersJo Fairweather, Lydia Heckl, Marie-laure Ducos SNOWBOARD MARKET ANALySIS 39Contributors SOcK & JOcKS 45Uwe Ballon, Chus Castéjo, Dave ‘DC’ Colwill, FabienGrisel, Franz Hoeller, Muck Müller, Digby Reed, João Rei, NEW SKATE SHOE BRANDS 49Luke Van Unen, Dirk Vogel, Denis Houillé, Matt Barr, ChrisMoran. BRAND PROFILE – cONTRAcT 50Jobs and Distributor Services Digby Reed BRAND PROFILE – URBAN KREATION 52Digby@boardsportsource.com BRAND PROFILE – cREATURES OF LEISURE 54Advertising & Marketing Clive Ripleyclive@boardsportsource.com NEW PRODUcTS 56Germanic Markets Advertising Konrad ‘Kone’ Heigl MARKET INTELLIGENcE 59kone@boardsportsource.com+49 (0) 89 5526 0915 OPPORTUNITIES 67Production Manager EVENTS 70production@boardsportsource.com ONE EyED MONSTER 73Accounts Manageraccounts@boardsportsource.comTo Subscribewww.boardsportsource.comsubs@boardsportsource.comPublisher Clive Ripleyclive@boardsportsource.com i found a nice quote on a of the most visible trends of the moment, we look atPublished by friend’s Facebook profile the other day. It’s by the new skate shoe brands on the block. Ever sinceExtreme Sport Business Jim Muir and goes way back to 1898: “Thousands marketing departments have figured that there22 Friars Street, Sudbury of tired, nerve-shaken, over-civilized people are are loads of people with two feet out there, we’reSuffolk, CO10 2AA. UK beginning to find out that going to the mountain seeing footwear brands popping up everywhere.Boardsport SOURCE is published bi-monthly is going home; that wilderness is necessity.” Looking at newcomers such as WeSC Footwear© Extreme Sport Business.All Rights Reserved When I secretly stole it from his page to make or Kr3w Footwear, we’re trying to find out what it my own post, I realised that others liked it too the newbies are bringing to the table. Our Big Wigwww.boardsportsource.com and saw it being perpetrated through the web on Interview also works in the footwear business – the same day. Wilderness stuff on Facebook in Germany’s Jascha Muller - Global Sports Marketing 2010? What’s up with us boardsports people? I Manager at adidas Skateboarding at only 26 years ON thE COVER have a theory on it: Although we’re certainly not of age, tells us about his background and his view Frode Goa, Founder of Shit moving into the wild – unless there are some really of the industry. Counterfeiting in skateboarding Skateboards. Nollie BS good spots out there – most of us feel like we go is another, and much more negative, trend that tailslide, Randaberg, Norway. “home” when we’re on our boards. Whether in the we’re looking at. Also, we ponder the outcome of mountains, on the streets or on water – we’re free the Tony Hawk Tour, consider the role of athletes and uninhibited by rules and limitations, creatively in the industry; and finally we profile some newly CONtENtS seeking our emotional outlet. That is… until another formed companies and some industry pioneers in Tony Hawk in Brighton little Facebook message reminds us that one of our our Brand Profiles: Contract Snowboards, Urban photo: James McPhail friends has just made some toast, can’t sleep, or Kreation, and Creatures of Leisure. As you can see, that XYZ “likes BoardsportSOURCE” (which you’re there’s no time for the wilderness at the moment.No part of this publication may be reproduced or transmitted meant to check out right now). And now back to Facebook.in any form or by any means, or stored in any retrievalsystem of any nature without prior written permission,except for permitted fair dealing under the Copyright Let’s get this straight. We’re nerve-shaken wrecks,Designs and Patents Act 1988. Application for permission longing for time in the wilderness, but all we over-for use of copyright material including permission toreproduce extracts in other public works shall be made to civilised boardsports people are mostly subjectedthe publishers. Full acknowledgement of author, publisher to nowadays is INFORMATION, and this is exactlyand source must be given. The views expressed in thispublication are not those necessarily held by the Publisher. what we’ve got for this SKATE Issue. Covering one Holger von KrosigkISSN # 1478-4777
  3. 3. INDUSTRY NEWS 049CORpORaTE mOvERs and shakERs EvEnTs O’NEill LAUNCH fACtORY MEDiA BUYS CREAtURES Of lEiSURE Hervé Lacastaigneratte is now the European hOff Benoit Brecq has been appointed Communication WORlD SNOWBOARD ChAMPiONShiPS GETS HEADPHONES GERMANY’S LARGEST Brand Manager of Creatures of Leisure based in South West France. He is responsible for all and Team Manager at Hoff Europe. His role includes supporting their European and international GO-AHEAD ONeill has entered the headphone market in ACTION SPORTS MEDIA aspects of brand management, distributor support, marketing, surf team and overall European business distributors, getting media exposure for all brands of the company, creating ads and events, supervising A final YES was given in Oslo finalising the collaboration with Philips. The Philips/O’Neill headphones collection will feature four high PORTFOLIO development and will report directly to Creatures global headquarters in Western Australia. Hervé photo shoots, managing budgets and making brands books, and also the management of all Surf, Skate plan to host the inaugural World Snowboarding Championships (WSC) in the winter of 2012. The performance styles - two headband style The Factory Media Ltd, has acquired six brands from the previously spent many years with Quiksilver Europe and Bodyboard teams of the company. Prior to this WSC will be held every four years featuring men Stretch, inspired by heavy-duty materials and wetsuit German publisher B&D Verlag GmbH, The media working in a number of key roles including Product Benoit was in charge of developing web marketing and women’s slopestyle and halfpipe competitions, styling and The Snug, a flat-folding headphone. The assets acquired consist of six consumer magazines Line Manager (Wetsuits and Accessories), Marketing activities at Hoff, bringing a strong background in and will crown a world champion for each gender in-ear selection includes The Covert, a discreet and six websites, Surfers (www.surfersmag.de), Director (Europe) and then General Manager of the sales and marketing for this position. and discipline. Riders will qualify through the bud with iPhone control, and The Specked, which Moto X (www.motoxmag.de), Skiing (www.skiing. European Technical Division. Swatch TTR World Rankings and the WSF National comes with tangle-free cords. The campaign will de), Snowboarder MBM (www.snowboardermbm. championships and every nation will be involved in be spearheaded by selected O’Neill team riders, de), Freedom BMX (www.freedombmx.de) and ZiMtStERN the qualifying system via its National Snowboard Jeremy Jones, Mark Mathews and Ane Enderud and Skateboard MSM (www.skateboardmsm.de). The MERViN MANUfACtURiNG Zimtstern are shaking up their sales and marketing Association. available at retail stores throughout Europe. additional brands will boost Factory Media’s total Snowboard industry vet and former pro with a number of new appointments. Stefan Lehnert assets to 19 print magazines and 23 websites, snowboarder, Kyle Phil is Mervin Manufacturing’s will be taking the position as the Head of Sales; published in six languages. new Vice President of Sales. Kyle will oversee previously he was the Sales Manager for DC Shoes sales for all Mervin brands and categories including in Germany and Austria. Reto Scheidegger will now SPREAD THE WORD -EUROSiMA PRESENT BIG AWARDS Lib-Tech, Gnu and Roxy reporting to Mervin GM, Ryan Hollis. Kyle will also manage retail marketing concentrate on the marketing of the winter and summer collections as well as overseeing the new product WORlD SNOWBOARDAT THE WATERMAN’S BALL StEREO & hi-fi WhEElS including point of purchase and trade shows. While category Zimtstern Bike. The Swiss sales team will DAY 2010 his main focus will be the Americas, he will work be strengthened by Cyrill Fischer, who had beenThe tuxedos and party frocks were out in full force at the 2010 Waterman’s Ball. Eurosima presented anumber of awards: first up its ecological innovation prize and ¤5,000 went to Völkl for its range of ecologically SIGN NEW LICENSING closely with global partners and distributors. Beyond snowboards, Kyle will also be working with working for the distributors Dac Sport and Bussport for many years as a sales representative and will be On Sunday December 19th the international snowboard community will mobilise to givefriendly snowboards. The Technological Innovation prize and ¤5,000 was won by Sport Contrôle for theprotective earplugs SORKY developed in partnership with Sympatex that protect ears from infections or AGREEMENT to expand skate, binding and NAS sales. responsible for the regions Berne, Basel, Vallais and central Switzerland. Markus Berger will work with the general public the opportunity to try out snowboarding. Worldwide federations, schools,other diseases linked with aquatic sports. The Performance Group of the Year award went to GSM for its Stereo and Hi-Fi Wheels have signed a long-term key accounts covering the rest of German speaking clubs, shops, resorts and riders will offer a large2009-2010 results and also for its steady growth for the past 10 years. Finally Maxime Huscenot received international licensing agreement with owners of hOlDEN Switzerland and Tessin. French speaking Switzerland number of free activities for beginners to advancedthe European Athlete of the Year award for his ASP World Junior title at Narrabeen, Australia. The 17 year- Theeve Trucks and Armourdillo, Antics International. Holden Outerwear has filled three important will continue to be handled by Casoar SA. snowboarders all for free. Since its creation inold is the first European surfer to win this trophy. The EuroSIMA Board honored Amaury Lavernhe with the Stereo was founded in ‘92 by Jason Lee and Chris additions at the company. Colin Madden joins the 2006, World Snowboard Day has seen the numberEuroSIMA Special Award for winning the 2010 IBA world bodyboard tour and Michel Hoff, former General Pastras and the agreement with Antics, which staff as Holden’s Vice President of Sales, previously of its events multiplied by four to reach 139 eventsManager of SAS Aupa Hoff and EuroSIMA founder member, received the Lifetime Achievement award for is based in Vista, will allow them to focus on the he was a Director of Sales at Burton most recently VölKl in 2009. With about 1900 activities and morehis active contribution to the development of the boardsports industry and culture in France and Europe. creative and marketing side of the brand while Vice President of Sales at Neff, Alex Messmer will Starting from the delivery of the seasons’ main orders, than 70,000 participants, WSD has become a key Antics handles the day-to-day sales, distribution, direct Holden’s European distribution. Alex, formerly Coniv Sports will now do the turns for Völkl Snowboards event and point of reference for the international production and international operations. with Rusty Europe, Volcom and Vestal Watches in Switzerland. This move means the former agency snowboard community. For more information go to Europe will be based in Biarritz. structure will be replaced by a distribution channel, www.world-snowboard-day.com, and join the World retailers will benefit from reduced delivery times as Snowboard Day community on Facebook, Twitter VANS LAUNCH EURO- APO FIND NEW well as a simplification of account issues. Harry Gunz - and MySpace. And don’t forget to spread the word! BURtON Völkl former distribution partner and eminent European SPECIFIC OUTERWEAR Marian Kaeding has been appointed as new European snowboard greybeard - has decided to follow his other INVESTOR Vans EMEA is launching a new line of outerwear Marketing Director for Burton Europe overseeing all European Marketing aspects for the Burton, Red passion for mountain bikes. His new responsibility will be boosting the sales of an upcoming bike wear brand, iSPO LAUNCH NEWAPO Snow have been acquired by a Swiss company. Its Founder, Regis Rolland (pictured), stated, “After adifficult year of recovery proceedings, I am really proud to have found investors to continue the APOcalypse purely dedicated to the European market. Historically Vans Europe has run the same outwear line as North & Anon brands and reporting to Europe’s General Manager Hermann Kapferer. Marian has officially Qloom. RadAir will continue to be distributed through Marker Völkl International and the RadAir Tanker can TRADE SHOW SUCCESSstory.” Regis founded Apocalypse in 1985, A-snowboards in 1993 and APO in 2003. The APO team willstill be part of the new company and we will step-up its efforts in this new era thanks to stronger financial America but following strong sales in Europe the decision was made to launch a more specific line been in his new role since August based out of their HQ in Innsbruck. Previously to this Marian had been also still be ordered from Harry Gunz. Völkl Ski and Marker Bindings as well as Völkl Performance Wear INITIATIVEsupport. that takes into account European cut and colours. Marketing and Sales Director for Forum, Special will still be handled by Völkl Switzerland AG. ispo has launched the ‘Your Key To Trade Fair The news range consists of jackets and pants for Blend and Foursquare at Burton Sportartikel GmbH Success Initiative’, a new service designed to help both women and men. for five years when the brands were merged with exhibitors improve their trade show results by OMAREEfOAKlEY UNVEIL NEW LENS APP Burton Corp. Nicolas Dazet has been appointed as Quiksilver offering a comprehensive package of procedures including instruction and training, check lists and iRON fiSt EXPANDWith so many lens tints, coatings and filters available for different environmental conditions, it can be Technical Division’s new Marketing Director and Miky other services. This new service for exhibitors atdemanding for even industry experts to select the optimum combinations and nearly impossible for less ARBOR Picon is the new Director of European Marketing and ispo 2011 consists of theoretical advice, as well asexperienced consumers. With this problem in mind Oakley went back into the design bunker to create Following exceptional growth Iron Fist clothing and Arbor have announced three new appointments for Products. A Hossegor native, ‘Daz’ founded Concrete practical solutions for the challenges presentedOakleyView, an application that brings real-life sport scenarios into the retail environment and enhances the footwear, run in Europe by Jackson Distribution, the Winter 2010/2011 season. Andy Rieger joins the Entertainment in 2001, which combined his two by trade fair planning, realisation and follow-up. Aconsumer experience in an interactive way. have moved to a larger premises, increasing their crew as Team and Events Manager. Additionally passions surfing and imagery. His most successful wide range of professional online instructions and warehouse space to 42,000 square feet. From Andy will be Arbor’s Online Marketing Manager and work behind the camera has been Quiksilver’s Cloud training, workshops, check lists, tools and servicesThe OakleyView app realistically simulates sporting and everyday environments in different light conditions its European debut in 2004 turnover has doubled Bavarian sales rep. Frank Meyer joins the team as 9 plus other projects for Canal+. Daz made his debut is available via the online information portal http://and then allows the user to compare the effect of 18 unique lens tints. The App features landscape panoramas, year-on-year and the same growth is forecasted new National Sales Manager for Austria and Germany in marketing during the late 90s with Arnette. Miky www.ispo.initiativemesseerfolg.de/en/ispo/index.360˚ views and zoom options. A self-explanatory, internationally comprehensible system of icons means the again following a successful selling season. Iron and will cover Eastern Germany sales and support has been a Quiksilver team member for many years, html. The initiative is managed by Meplan GmbH, aapplication can be implemented universally. This will enable Oakley retailers to help consumers experience Fist are fast becoming a highly recognised brand directly in house the needs of all retailers. Philipp so following his decision to "hang up" (his surfboard subsidiary of Messe München.the advantages the different lenses offer before they purchase the product. Official Oakley dealers can having successfully branched out from the niche Suwa joins Arbor in logistics and admin and is also professionally) it was a natural move to take hisrequest a flash version to embed on their web pages. player they once were. in charge of supporting the Arbor Demotour. experience into the business side of the equation.10. www.boardsportsource.com - for daily breaking news... for daily breaking news go to: www.boardsportsource.com 11
  4. 4. 049VF CORP posted record Q2 earnings despite the expected slow down GLOBE INTERNATIONAL made a NPAT of $1.3 million forin the world economic recovery. Revenues in the period rose 7% to $1.59 billion the financial year ended 30 June 2010. This result, while modest, is a significantcompared with $1.48 billion for the second quarter of 2009. Net income and improvement compared to the loss of $8.9 million reported for the prior year. Totalearnings per share reached record levels in the quarter, with each increasing revenues for the year were $91.7 million, 22% below the $117.6 million reportedby 47%. Net income rose to $110.8 million, compared with $75.5 million in the in the prior year. In constant currency terms, net sales were 9% below the prior2009 quarter. These results were attributed to lower product costs, continued year, excluding the impact of the discontinuation of the Australian retail business.expansion and improved gross margins in retail stores and lower inventories. Despite the reduction in total revenues, the Group generated $5.5 million ofVFC said their direct-to-consumer businesses remains an important long- earnings before interest, tax, depreciation and amortisation, compared to a lossterm driver of both organic growth and margin expansion, with these revenues of $4.5 million in the prior year. This $10 million turn-around in profitability isincreasing 7%, driven by 25 new store openings in the quarter. The direct- directly attributable to the restructuring undertaken during 2009 and the refinedto-consumer businesses of The North Face and Vans brands each achieved approach to working capital management and on-going cost control at all levels.double-digit revenue gains in the period. The company has raised its outlook for The strength of the Group’s financial position continued to improve, with $6 millionthe year now expecting revenues to increase 4 - 5% in 2010. cash generated from operations during the financial year and the Group had cash of $14.9 million and no debt, Globe expect that conditions in FW11 will continue to be volatile and, as such, revenue growth is difficult to predict.VOLCOM INC. QUIKSILVER BILLABONGTotal consolidated revenues were $62.5 million for Net revenues from continuing operations for Q3 of Sales in Europe lifted 5.2% over the prior yearQ2 2010 compared with $54.2 million in Q2 in 2009. fiscal 2010 were $441.5 million compared to $501.4 taking full year European sales to $344 million. KeyTotal revenues in the companys US segment, which million in Q3 of fiscal 2009. Pro-forma consolidated products in Europe through the period included theincludes revenues from US, Canada, Japan and most income from continuing operations for Q3 2010 was Group’s technical range of snowboard outerwearother international territories outside of Europe, as $12.5 million compared to $3.7 million for Q3 2009. In and wetsuits, which showed double-digit saleswell as the companys branded retail stores, were the Americas, net revenues decreased 9% during this growth. The t-shirt category continued to show good$50.8 million, compared with $43.6 million in the third quarter to $234.6 million from $256.8 million in momentum and accessories performed strongly,prior-year period. Total revenues in the companys the same quarter last year. European net revenues particularly the backpack segment. Changes areEurope segment were $5.1 million, compared decreased 20% during the third quarter of fiscal 2010 to being introduced throughout the business to allowwith $5.9 million in the same period in 2009. Total $151.7 million from $189 million in Q3 2009. In constant it to support greater speed to market and thereforerevenues in the companys Electric segment were currency, European segment net revenues decreased accommodate the needs of the growing company-$6.6 million, compared with $4.7 million in 2009. 11%. Shortly after the end of Q3 the company completed owned retail base, which opened 28 European storesAt June 30, 2010 the company had cash, cash a debt-for-equity exchange with its investment partner over the period. Element is performing very well,equivalents and short-term investments totaling $110 Rhône Capital, this reduced its quarter-end debt level by capturing the urban skate trends that are emergingmillion, and no long-term debt. For the 2010 third $140 million in exchange for approximately 31.1 million in southern Europe, while Nixon and VonZipper arequarter outlook the company currently expects total shares of Quiksilver common stock priced at $4.50 each showing strong reorders. The conversion ofconsolidated revenues of approximately $102 million per share. The Company stated that based on current some of DaKine’s European distributor businessto $105 million. trends, Q4 revenues are expected to be down in the into direct-sales operations in the second half mid-teens on a percentage basis compared to the same contributed to a strong performance for the brand.. quarter a year ago. Stock Name Stock Symbol 52 Week 52 Week P/E Market Cap Latest YTD Brands High Low (millions) Price Total (time of press) Return Adidas AG GR:ADS ¤45.77 ¤31.35 16.788 ¤9.096BN ¤41.10 20.513 Amer Sports Corp AMEAS:FH ¤9.10 ¤5.15 12.087 ¤1.059BN ¤8.72 62.255 Atomic, Bonfire, Salomon Billabong International Billabong, Element, Kustom, Von Zipper, Nixon, Excel, DaKine, BBG:AU AUS$12.32 AUS$7.31 13.752 AUS$2.032BN AUS$8.030 21.066 Sector 9 Columbia Sport NASDAQ:COLM $60.10 $37.02 28.074 $1.918BN $56.71 37.417 Collective Brands PSS:US $26.65 $12.41 9.863 $1.022BN $15.88 -15.307 Airwalk, Lamar, Sims, Vision Street Wear Globe International Ltd Dwindle (almost, blind, Darkstar, enjoi, Tensor, Speed ASX:GLB AUS$0.76 AUS$0.38 23.975 AUS$31,512,000 AUS$0.760 76.744 Demons, Globe, Cliche) Iconix ICON:US $19.08 $10.75 14.441 $1.232BN $17.04 -1.96 Ocean Pacific, Zoo York Intersport PSC Holding XSWX:IHSN CHF139.90 CHF100.00 14.663 CHF44,000,000 CHF100.000 6.680 Jarden Corp. JAH:US $35.11 $24.55 12.996 $2.726BN $29.76 9.851 Adio, Hawk Shoes, Holden, K2, Morrow, Planet Earth, Ride, Volkl LaFuma SA FP:LAF ¤14.66 ¤10.40 7.390 ¤39,568,000 ¤11.38 -0.175 Oxbow Luxottica Group Spa IM:LUX ¤22.27 ¤16.17 24.825 ¤9.222BN ¤19.92 13.480 Oakley, Arnette Nike Inc NKE:US $78.61 $57.66 20.297 $37.799 BN $78.66 36.353 Converse, Hurley, Nike SB, Nike 6.0, ACG, Nike Snowboarding Orange 21 ORNG:US $1.65 $0.25 N/A $19,130,000 $1.60 25.000 Spy Optics Quiksilver Inc NYSE:ZQK $6.09 $1.63 23.875 $626,268,000 $3.84 34.266 Bent Metal, DC, GNU, Quiksilver, Quiksilver Womens, Roxy VF Corp VFC:US $89.23 $68.60 13.063 $8.466BN $78.43 11.445 Vans, Pro-Tec, Eastpak, The North Face, Reef Volcom Inc VLCM:US $24.79 $14.76 18.040 $435,913,000 $17.86 10.794 Volcom, Electric WeSC SS:WESC SEK 123.50 SEK 69.25 18.011 SEK 878,946,000 119.000 58.173 Zumiez Inc ZUMZ:US $22.53 $10.68 45.919 $624,169,000 $20.40 19.07512. www.boardsportsource.com
  5. 5. retailer awardINSOMNIA The Insomnia skate store in Bulgaria is the winner of SOURCE’s Retailer Window Award, sponsored by Independent. Over 100 shops entered this tightly fought competition, but the Insomnia Collective synched the top prize of €5,000 of Independent products, thanks to the time, thought and creativity put into their display. Interview with Mary Hiekova, Head of Marketing.Who are the key players at Insomnia? as nothing beats the feeling of hanging out with your friends (outside) doingI would say that those would be the people that have been involved with the what you enjoy.shop throughout the years - the Insomnia Collective, that includes the skateteam, everybody who has ever worked in the shop, photographers, graphic What kind of advice can you give other independent retailers who are tryingdesigners, Mums, Dads. We don’t have a secret handshake or anything, it’s to compete against the big box megastores?just a bunch of people from diverse backgrounds that have put in some elbow Keep things fun, up close and personal.grease and burnt a few brain cells for skateboarding in Bulgaria. Does your store sponsor athletes, competitions, etc?What is the product mix of your store? Insomnia has a skateboard team, which consists of skateboarders from differentThe product mix in the store is 40% hard goods and 60% soft goods. Insomnia parts of Bulgaria, different styles of riding, different dress style - mixed nuts!is a core skateboard store, but we do have a bit of snowboarding apparel in The support we give to competitions is kind of seal of approval as we onlythe winter. participate in events that we truly feel that the skateboarding in Bulgaria will benefit from. We feel strongly about staying true to skateboarding. What makesWhat percentage of your sales your store so successful? Myare from online business? window displays ha-ha.Online stores are relatively “We don’t have a secret handshake orpretty new to Bulgaria, so Where do you hope yourit is something we are still anything, it’s just a bunch of people from business will be in fivedeveloping over here. At thisstage you really can’t compare diverse backgrounds that have put in some years? We hope that there will beone with the other. elboW grease and burnt a feW brain cells more kids skateboarding, more skateshops and more peopleWhat are the benefits of for skateboarding in bulgaria.” putting back support into thehaving a physical shop over skate scene. Then things willsimply having an online be better for everybody.store? I’m sure you have heard this before but I would say the talking tocustomers face- to-face, people hanging out in the shop, the jokes, the racket. What is the biggest challenge an independent retailer faces today and how doYou don’t get that online. you meet that challenge? Megastores are a big challenge for Independent retailers; we try to remainWhat are the main brands that your store carries? flexible and brave.Independent, Girl, Chocolate, Jart, DVS, DC, Fallen, Lakai, Osiris, Matix,Fourstar and Horsefeathers. In what ways can suppliers improve their support for independent boardsports retailers? It would be nice if people remember that sometimes small shopsAre new lines important to your product mix? does mean small orders.New lines are important for offering your customers something fresh. But it’sa bit tricky in Bulgaria as people are yet to get bolder with their wardrobe. The Have you noticed any difference in business because of the recent economicmajority of people have yet to shed off the dark olive and brown phase and crisis? Bulgaria has been in a crisis since 1989, and just as the country beganexperiment. to see the light at the end of the tunnel, the global economic crisis hit. At the moment things are pretty much back to square one, or perhaps 10. HopefullyHow do you stay in touch with the wants and needs of your customers? We it’s a case of when you hit rock bottom the only way is up, otherwise we willfollow the trends but at the same time we never neglect the needs of people have to start digging. On a final note, don’t get the wrong impression thatwho want the classic things. Bulgaria is a sad and depressed country – it’s not! We would like to thank Independent for the great window display competition and for the cool prize.From your perspective, what does the future hold for the industry? And a big thanks from me to everybody from the Insomnia Collective for helpingWell if the global warming doesn’t fry our brains and Facebook doesn’t take out with the project.over our lives I hope that there would be a growth in all these action sports www.insomniacollective.com +359 (0)2 980 59 7714. www.boardsportsource.com
  6. 6. 04retailer help retailer help Stefan Dongus is a co-owner of Cologne-based VERtiCAl AND hORiZONtAl PRiCE POiNt DiffERENtiAtiONPRIcE part.04 fine lines marketing, a marketing and consulting Vertical price point differentiation is the sole domain targeted price points. But as consumers are gaining price-point-conscious consumer segment, they often agency specialising in the action asports industry. of globally active enterprises. Basically, it means more and more market insight these days, targeting choose to launch an entirely new brand to cater to s.dongus@finelinesmarketing.comMANAGEMENT selling products in different countries at different individual segments with their own specific prices this group. This, option, of course, is not only limited prices, regardless of the individual market segments is getting harder. This is why horizontal price point to companies but also a choice for retailers who can within these countries. For example, most products differentiation in retail usually goes hand-in-hand launch their own so-called “store brands”. RAISING PROFITS THROUGH are cheaper in Bulgaria than in Switzerland. But for with related product differentiation initiatives or PRICE POINT DIFFERENTIATION retailers – who cater to a mostly regional catchment area – this kind of vertical price point differentiation differentiation of other marketing tools. In practice, it’s always easier to justify higher prices to customers by PREREqUiSitES fOR hORiZONtAl PRiCE POiNt DiffERENtiAtiON does not apply. pointing out that the product offers additional features Retailers are only able to realise price pointthe past three episodes of this series covered the basics and main criteria for price point management in What matters more in retail practice, however, is or higher use value. In the automobile industry, price differentiation if:boardsports retail. we also learned about the many options for price positioning, as well as the wide variety of horizontal price point differentiation. In this concept, point differentiation is mostly implemented by offering 1. Consumers exhibit a different degree of price point consumers with the same or similar willingness a great variety of customization options for vehicles. readiness (willingness to pay).pricing strategies for introducing new brands and products, and for keeping up with competitors. But as this to pay are grouped together into the same market In cases where companies are afraid to damage the 2. They can identify different market segments and segment, which is then addressed with specially image or prestige of a brand by catering to a more approach them individually.episode of retailer help will show, price positioning and strategising are not the only tools available to retailersfor making forward-looking price point decisions: one of the most important tools is differentiation, which canbe a decisive factor for driving sales and profits in your store. Stefan Dongus shows us how it’s done. PRiCE POiNtDiffERENtiAtiON iN REtAil In everyday retail, the most commonly found methods This way, the store can clear out its overstock, without unlocked a lifetime discount of 20% on all the store’s of price point differentiation are: having to slash prices for existing costumers. products. With this innovative measure, the store willthE GOAlS Of PRiCE POiNt DiffERENtiAtiON tiME-DEPENDENt PRiCE PERSONAl PRiCE be able to retain a highly targeted clientele for a long period of time. Similarly, many stores also offeringBy defining a coherent price positioning and pricing strategy, a retailer In the “no price point differentiation” scenario, the store is always selling a POiNt DiffERENtiAtiON: POiNt DiffERENtiAtiON: special rates for members of local sports clubs andultimately decides on which price league he’s placing his business in. product at the same, consistent price, indicated as P1. At this price point, the Driving time-dependent price point differentiation With personal price point differentiation, a shop is associations.Regardless of this overall pricing strategy, a retailer also needs to decide store is achieving the sales volume X1. The actual sales, in this diagram, are means offering different price points at different offering identical services to different customers aton whether to keep pricing for all target groups constant or not. If he defined by the area opened up by the price P1 and the sales volume X1. The cost, moments of purchase. The reasons are either time- different prices. Some of the main criteria for making CUStOMER ClUBSchooses to offer variable price points for different target groups, he’s here, is defined by the space spanned by the cost and the sales volume X1. The dependent costs paid by the store (extra wages this selection include age, gender, income level and Customer clubs are a specialized variety of personalengaged in what is called price point differentiation. resulting margin is illustrated by the blue-coloured space, which indicates the for overtime, etc.), or in many retail situations, the occupation. Age-based price point differentiation price point differentiation. They offer an effective way contribution to profit from selling the product. In other words, the larger the blue differences in preferred shopping times among is mostly found in industries where businesses aim for winning new customers, while connecting existingThis is a tool for working the market with a specific approach, an approach space, the more profit for the store. customers. to achieve long-term customer retention. For this customers more closely to the store in the long run.that needs to be based on careful market segmentation. The basic idea Some industries even go as far as offering different reason, many banks are offering free bank accounts Membership in a customer club provides access to ais to cater to different groups of consumers with different prices. So in Now look at the scenario where the retailer is driving price point differentiation prices for different times of day, for example energy to students, hoping that they will remain loyal wide number of benefits: Mostly these are emotionalorder to offer an efficient price point differentiation at your store, you by selling the product to two different customer groups at different prices P2 utility providers and fitness centres. In retail, the most customers to the bank after entering the job market – perks, like V.I.P. access or first look at new collections;first of all will need to identify these individual consumer groups, or and P3. In this case, the contribution to profit results from adding up all the common time-dependent price point differentiation even if it means paying for the bank’s services at that but they also come with real price point incentives.“market segments”. individual blue squares. As this example demonstrates, the overall blue space is seasonal; customers can score better prices for point. The boardsport business also uses age-based The advantages for the shop are, of course, – indicating contribution to profit – is actually larger. So the shop’s profits are a snowboard in April than in October. Retailers use price point differentiation to a great extent; most obvious: Next to stabilising customer relations in theAlways keep in mind: The main goal of price point differentiation is to higher when driving price point differentiation. By offering different prices to time-dependent price point differentiation as a tool children’s clothing is offered at lower price points long run, customer clubs also yield valuable data suchraise the profitability of your business. This is done through a process, different market segments, the shop is able to skim off some of the consumer’s to clear their stock levels, create cash flow, or make than comparable adult sizes. Realistically, these lower as contact info and transaction records. Professionalwhich in marketing speak is called “skimming off the consumers surplus”. surplus that would be left untouched in the “same price for every customer” space for newly arrived products. Price variations at prices cannot be justified by the lower use of resources customer retention systems provide customersIt basically means that consumers with a higher willingness to pay money scenario. In an ideal world, the shop would be able to sell at the maximum price shorter time intervals – such as days of the week or for producing kid’s products. There’s something else with a machine-readable club card, containing allare approached with higher-priced products than consumers with a lower every individual customer is willing to pay (as long as it’s higher than what the times of day – are hard to realise in retail and would at work here, namely the reduced willingness to pay the customer’s current contact info, point balances,willingness to pay. Simple! Because after all, the worst mistake for a retailer pays wholesale). probably only lead to mistrust among customers. money for “kid’s stuff” among parents, who, in the end etc. When making a purchase, the data on the cardstore is to waste a good customer who’s ready to leave serious money are the ones making the purchase decisions. But by is linked to the customer’s shopping card, whichat the shop with some low-ball sales offers. If the customer goes for the At the same time, even this very basic example already hints at the fact that SPAtiAl PRiCE POiNt DiffERENtiAtiON: offering attractive price points for kids, retailers can unlocks important insight into the shopping habits andsale, the store is still making profit – but it’s not tapping into any of the price point differentiation can be a complicated, research-intensive undertaking. A space-oriented price point differentiation is based prevent parents from choosing lower-priced, no-name preferences of individual customers. This informationconsumers surplus. In order to realise the full potential of this tool, a store needs to be able to on geographically defined markets. We see spatial products in favour of “real” branded goods. To achieve can be leveraged into highly targeted advertising identify these different market segments clearly; and establish appropriate price point differentiation, when flyers for special this effect, retailers have a large number of creative initiatives. For example, the store could send outLet’s have a look at this principle more closely in a diagram: communication channels for relaying specific prices to them. low-price sales are distributed exclusively in low- options: How about handing out flyers with rebate snowboard flyers specifically to those customers, who income neighbourhoods. In this case, sales prices are coupons specifically at elementary schools? This will have purchased snowboards and equipment before, communicated to a customer segment that could not open up an entirely new customer segment, one with but not yet this very season. without price point differentiation using price point differentiation be attracted with regular price points. a remarkably high customer lifetime value. Another effective example of spatial price point Retailers also resort to personal price point MUltiPlE-CUStOMER PRiCE differentiation: A store distributes vouchers for price differentiation quite frequently, which in most cases POiNt SEttiNG Price / Cost Price / Cost rebates in a region that is significantly outside its is not aimed solely at the press. In a recent example, a In this case, the price depends on the number of regional catchment area. This enables the store to popular jeans brand for the opening of a new flagship people buying a certain product. This kind of price Consumers Surplus mobilise a number of new potential customers; most store mailed out a set of limited, individually numbered point differentiation is not very common in practice, of them probably would not make the long trip to the keys to select people. These recipients included but it does offer a great variety of creative pricing P2 P1 store without the incentive of rebate price coupons. journalists, VIPs, artists, riders, etc. for whom the key options for shops that know how to play it well. P3 OUtlOOK There are numerous different options for price point differentiation. What they all have in common is their potential to raise the sales and profitability of a store. Cost Cost It all boils down to the necessity to steer away from treating all customers equally, and offering personalised pricing and marketing initiatives instead. In a best- case scenario, every customer would pay exactly the maximum price he or she is willing to pay. Hitting this “sweet spot” in practice will prove rather difficult, as it requires navigating a large amount of complex information that is hard to compute. But as a first step, even implementing the most basic, practice-oriented price X1 Sales Volume X2 X3 Sales Volume point differentiation system can work wonders. To stores that are willing to make the effort, it can prove as a key to a vast potential of untapped revenues.16. www.boardsportsource.com www.boardsportsource.com 17
  7. 7. event review THEBiRDMAN’S BIGPhotos: James McPhail DAY OUTin the last few years action sports has witnessedan explosion of grand-scale events, but have anysurpassed the grandeur and budget of the Quiksilvertony hawk tour? SOURCE’s Chris Moran reports.if there was ever a moment in history when action sports With a major art installation showing Quiksilver through the ages, and withmuscled into the big time, then the Quiksilver Tony Hawk show in Paris virtually every major professional athlete that had ever worn the wave logoover the weekend of the 20th November 2009 could have been it. Held at the (including Kelly Slater, Torah Bright, Candide Thovex and Travis Rice) inGrand Palais - Paris most opulent exhibition hall built in 1897 - an estimated attendance, Carroll’s theory made sense. It did seem that the Paris show wascrowd of 25,000 people assembled, with many thinking “what the hell is a a major statement by Quiksilver, to reaffirm its position as the big gun of theskateboard show doing here?” action sports scene.Thats certainly what I thought, and I wasnt alone. "Its just incredible," said But how did an event of such scale do to their bottom line, was it worth theFactory Medias Marcus Chapman. "Ten years ago this is the kind of place the effort? "Its difficult to monitor the sales impact from such an event, and Id besecurity guards would give you a kicking for skating. Now theyre opening the lying if I gave you numbers," says Foulet, "but we wanted to work the image ofvelvet rope and everyones a VIP." our brand toward the end consumer, so the resulting PR return and promotion from the event was very good. We also wanted to involve our best accountsOstensibly a skateboard comp followed by a demo from the legendary crew of and retail shops at the event through staff incentives and special treatmentSandro Dias, Sergia Ventura, Andy MacDonald and The Birdman himself, the packages, as a thank you to the people who work for us."sheer scale and audacity of the event seemed to be a statement of sorts. Thequestion on many lips was this: why had Quiksilver spent so much money on a Soon after, Quiksilver decided to take the Tony Hawk Show on the road. "Ourrelatively private skateboard demo? idea was to bring the same vibe to our main or growing markets," said Foulet. "The Paris show was a huge success, and we had amazing media return, so"We did it to show the world that were a skate-oriented company," says this was a natural progression." The tour hit Berlin, Rome, Barcelona andQuiksilver Europes Head of Marketing Nicolas Foulet. "We wanted to connect Brighton, hitting all the same buttons on every leg. "The great thing aboutour brand to the urban art and music scene, and we wanted to celebrate the Tony Hawk is that he not only appeals to the young and new breed of skaters,"40th anniversary of our company." says Quiksilver UK’s Meena Rajput, "but also the older generation of skaters who remember him as their hero back in the day." As a Brighton resident, IMany at the show, and especially those in the VIP area (a mock-up of the saw Tony on the front page of the local paper, he was chatting on the newsinfamous Rock Food bar from Hossegor) were simply awestruck. "Just look at breakfast, and the kids in my family were all buzzing with the anticipationaround you," said legendary surfer Tommy Carroll. "Isnt it amazing that were that hed be coming to the seafront. As a branding exercise, Quiky got theireven here? I think it’s a real statement to say that boardsports are now big boardriding message out to a broad spectrum of people, causing maximumtime.” As the first person to have broken the $1million surf contract barrier hype in a wide range of media from the local daily to every national core mag inback in 1988, Tommy talks with some authority. the country, not to mention the all-important social networking effect. www.boardsportsource.com 19

×