There is no doubt we are in most extraordinary times. With the New Year have come more layoffs, continued belt-tightening, disappointing financial reports, and increasing challenges as companies struggle to maintain a balance of budgetary mindfulness and investment for the future.
Retailers across the board are running with lean inventories. As sales have slowed dramatically, inventories have often swelled in manufacturer warehouses. Unsold inventory, especially last year’s models, is not a healthy item to keep on a company’s books, so we understand that manufacturers must find creative ways to manage excess inventory levels. However, some ways are clearly better than others, and some just leave retailers shaking their heads in bewilderment.
Take, for example, a recent online notice posted in the Ocean State Job Lot website --
proclaiming:“
As part of an Old Town warehouse clean-out 1,517 kayaks and canoes are on their way to Job Lot stores. These include overstocks, discontinued models and blemished products, 42 models in total ranging in size from 11' to 18'6". 300 are "blems," boats with minor blemishes such as a decal in the wrong place (nothing that compromises their seaworthiness.) The balance is first quality.”
Job Lot operates 85 stores across New England, with stores right in the backyard of many outdoor specialty dealers that carry Old Town – Jersey Paddler, North Cove Outfitters, Kittery Trading Post to name but a few. Job Lot’s stated purpose, and the one that has made it a successful business, is to “sell brand name, first quality products at closeout prices.”
Naturally, getting Old Town boats in stock is wonderful for Job Lot. And cheap boats are wonderful for Job Lot customers. And, it certainly eliminates a problematic warehouse overstock position for Old Town. But that is a short-term gain. What of the long-term implications?
Suddenly, in New England, Old Town has likely created a market where their boats are simply a commodity to be purchased by the consumer at the best price possible. For the specialty retailer near a Job Lot store, it is unlikely that a customer will notice the boats the specialty dealer carries are a newer model or simply a better quality boat. All the customer will likely notice is that the specialty dealer’s Old Town boats are significantly higher-priced than the ones he just saw at Job Lot.
A retailer we spoke with recently told us, “A long time ago, a well-respected member of this industry told me ‘When you can get something everywhere, it is no longer special, and I am a specialty retailer.’ Increased distribution may be a short term answer to a manufacturer’s success, but in the long run it will only force those of us – the ones who showcase their products, train our employees, and educate the buying public (who then go to the off-price merchants to buy the product) -- to find other manufacturers to take their place.”
That retailer went on to state, “When a manufacturer dumps merchandise to bottom-feeding retailers who list their products in newspaper fliers and on websites at “60-70 percent off” two things occur: First, that manufacturer really annoys those of us who bought into their preseason terms. Second, that manufacturer is creating a market where essentially the discounted prices on the same product we are carrying make our own retail customers feel as if we are robbing them blind. And if we are doing it with this product, who’s to say all of our products are not priced too high?”
More than several retailers told us that, yes, manufacturers such as Old Town typically come to them first to offer the discounts before resorting to off-price retailers such as Job Lot, but usually open-to-buy dollars have already been used up buying the company’s products at full-priced preseason amounts. Short of cancelling the preseason orders and moving the dollars to a manufacturer with specialty price integrity, there’s often little a retailer can do except grumble.
Like the current economic situation though, there is no simple answer. No government bailout or stimulus package will solve the challenges that come from a combination of overproduction, overstocked warehouses, buying cycles moving earlier, production lead times getting longer, customer buying habit shifts, and retailers stocking less.
Retailers are customers of the manufacturers. They are under no obligation to buy anything. Just as a retailer’s customers are under no obligation to buy anything from the retailer either. If manufacturers run out of stock, they risk losing or frustrating their customer – the retailer. But, on the other hand, if they have too much stock, they risk angering a customer by then having to sell their product at a much lower price to a discount retailer. Oh, we’ve all heard the arguments – “But that retailer serves an entirely different set of customers.” Bull. Increasingly, and rightfully so, customers are shopping for the best price – online, specialty, discount, or chain. Think about how you buy. Was your recent camera, computer or electronics purchase made at a specialty retailer, or at a store like Costco…or online at Amazon. Price is always going to be part of the buying / selling equation. Notice we said part, not all. A good specialty retailer can always sell at a premium price when it offers high service and education, as long as the products they are selling are not being offloaded weeks later at a discount retailer by a manufacturer thinking in the short-term.
So, what’s the solution? It’s not an easy answer, but we’d love to hear your thoughts via the SNEWS Chat, below. Perhaps together we can arrive at a solution…or at least we can better understand the problem to be able to minimize a negative impact. Together and thinking of long-term gains for us all, we will prosper. Thinking only of individual short-term gains we will collectively suffer. --Michael Hodgson
Thursday, February 26, 2009
RETAIL - Six ways to successfully promote your store's eco-conscious product mix
Does your outdoor specialty store boast an array of eco-friendly products? If your merchandise mix does have green leanings, you could boost sales by making the consumers in your area aware of your specialty. Savvy green-oriented retailers are using everything from promotional mailers and catalogs to print advertising and street-side merchandising to get the word out about their eco-friendly product mix. Could any of these strategies work to strengthen your bottom line?
In the mail: Some outdoor specialty retailers have found that direct mail advertising suits them just fine. "We recently sent out a holiday mailer that featured a special section of eco-friendly and sustainable products," said Sharon Scott of The Summit Hut. At REI, a holiday catalog also spotlighted the chain's expanding mix of eco-conscious products with a specially designated two-page section. In addition, other sustainable items in the catalog were pointed out with a green icon. "We launched the ecoSensitive label in 2007 to help our customers make informed decisions on the products they purchase by designating REI brand products made from materials with a high percentage of renewable, recycled and/or organic fibers," said Bethany Nielson, a spokesperson at REI. Currently, the ecoSensitive line includes almost 70 styles of men's, women's and kids' apparel plus gear.
In the press: Advertising your specialty in local or regional newspapers and magazines can also effectively get the word out. "We do some advertising in the local newspaper, local alternative monthly, and quarterly coastal magazine," said Judson Moore, owner of Unfurl, a natural clothing boutique in Manzanita, Ore., that carries a large number of outdoor brands. "The niche magazines are a little bit expensive to advertise in, but we get the most for our money there." The ads run by Unfurl typically talk about the store's eco focus and list some of the relevant brands. Some warn, however, not to go overboard touting your green nature. "You don't want to over-claim and be perceived as greenwashing," said Beezer Molton, owner of Half-Moon Outfitters in North Charleston, S.C. -- a recent SNEWS/Backpacker Retailer of the Year award winner in the sustainable business category, click here to read story.
At retail: Many outdoor specialty retailers still believe the best way to reach customers is right in their own store. At REI, ecoSensitive products are identified with a distinct icon that is printed on the hangtag. At Peak Sports in Corvallis, Ore., owner Jeff Katz highlights eco-conscious products in-store by having the staff call out their favorite products once a month with an index card on which they write their thoughts about the item. "We also have a color coding system that shows what category the highlighted item falls under; for example, a green item has a green card," he said.
On the street: Some believe green merchandising should be taken outside for maximum effect. "Put something just outside your front door that draws people in," said Unfurl's Moore. "Even showing something like an antique chair with a cool old suitcase that has a green product in it really helps you get some of your store presence outside."
On the web: If you have a website, this could be an impactful (and extra green) way to promote your eco products. Online at REI.com, all ecoSensitive pieces are grouped together and easily accessible on one page. "This area is devoted entirely to educating our customers on the ecoSensitive products we sell," said Nielson, "and on the pros and cons of certain green materials used by many manufacturers."
Truly green: Put your money where your mouth is and make your business truly green by investing in things like alternative energies for your own store. This type of outreach will definitely draw attention to your business as a green-oriented one. "We were the first business in our town to buy blocks of wind power for our energy needs," said Peak Sports' Katz, who just received an award and recognition for this distinction. While this does not relate to product, it sure brought this retailer's consciousness into the public's awareness.--Erinn Morgan
In the mail: Some outdoor specialty retailers have found that direct mail advertising suits them just fine. "We recently sent out a holiday mailer that featured a special section of eco-friendly and sustainable products," said Sharon Scott of The Summit Hut. At REI, a holiday catalog also spotlighted the chain's expanding mix of eco-conscious products with a specially designated two-page section. In addition, other sustainable items in the catalog were pointed out with a green icon. "We launched the ecoSensitive label in 2007 to help our customers make informed decisions on the products they purchase by designating REI brand products made from materials with a high percentage of renewable, recycled and/or organic fibers," said Bethany Nielson, a spokesperson at REI. Currently, the ecoSensitive line includes almost 70 styles of men's, women's and kids' apparel plus gear.
In the press: Advertising your specialty in local or regional newspapers and magazines can also effectively get the word out. "We do some advertising in the local newspaper, local alternative monthly, and quarterly coastal magazine," said Judson Moore, owner of Unfurl, a natural clothing boutique in Manzanita, Ore., that carries a large number of outdoor brands. "The niche magazines are a little bit expensive to advertise in, but we get the most for our money there." The ads run by Unfurl typically talk about the store's eco focus and list some of the relevant brands. Some warn, however, not to go overboard touting your green nature. "You don't want to over-claim and be perceived as greenwashing," said Beezer Molton, owner of Half-Moon Outfitters in North Charleston, S.C. -- a recent SNEWS/Backpacker Retailer of the Year award winner in the sustainable business category, click here to read story.
At retail: Many outdoor specialty retailers still believe the best way to reach customers is right in their own store. At REI, ecoSensitive products are identified with a distinct icon that is printed on the hangtag. At Peak Sports in Corvallis, Ore., owner Jeff Katz highlights eco-conscious products in-store by having the staff call out their favorite products once a month with an index card on which they write their thoughts about the item. "We also have a color coding system that shows what category the highlighted item falls under; for example, a green item has a green card," he said.
On the street: Some believe green merchandising should be taken outside for maximum effect. "Put something just outside your front door that draws people in," said Unfurl's Moore. "Even showing something like an antique chair with a cool old suitcase that has a green product in it really helps you get some of your store presence outside."
On the web: If you have a website, this could be an impactful (and extra green) way to promote your eco products. Online at REI.com, all ecoSensitive pieces are grouped together and easily accessible on one page. "This area is devoted entirely to educating our customers on the ecoSensitive products we sell," said Nielson, "and on the pros and cons of certain green materials used by many manufacturers."
Truly green: Put your money where your mouth is and make your business truly green by investing in things like alternative energies for your own store. This type of outreach will definitely draw attention to your business as a green-oriented one. "We were the first business in our town to buy blocks of wind power for our energy needs," said Peak Sports' Katz, who just received an award and recognition for this distinction. While this does not relate to product, it sure brought this retailer's consciousness into the public's awareness.--Erinn Morgan
SNEWS® Mini-Survey underscores the mood of fear for the future linked to the economy
The SNEWS® Mini Survey that ended Feb. 17, 2009 asked, “If the economy does not improve in the next six months, do you believe additional businesses are at risk of going under?”
An overwhelming 90 percent of the responses were affirmative, while only 3 percent of all respondents felt more businesses were at risk. Just 7 percent indicated they thought that “maybe” more businesses were at risk of going under.
An overwhelming 90 percent of the responses were affirmative, while only 3 percent of all respondents felt more businesses were at risk. Just 7 percent indicated they thought that “maybe” more businesses were at risk of going under.
Wednesday, February 18, 2009
Thursday, February 12, 2009
Wednesday, February 11, 2009
What You Should be Asking Your Banker
What You Should be Asking Your Banker
(Or accountant or lawyer if you don’t have one)
OIA WebNews spoke to Bob Seiwert with the Center for Commercial Lending at the American Bankers Association for some insight into what conditions small businesses are facing in the credit markets. Here are excerpts from the interview.
Q: If I have a banking relationship already, aren’t I safe?
Seiwert: For a well-run business with a track record there is money available. But it may not be available at the bank you are banking with, so you better figure out where your bank sits. Not all banks specialize in small business loans. They may do them as an accommodation for your other business, but you want someone who really specializes in them. If you don’t have that at your bank, then you need to move on.
Go visit them and ask them, “How are you affected by the banking crisis?” Get very specific, as in, “If I was to ask for a loan today would it be available to me? If so, how much would it cost? On what terms? What would be the interest rate? What would be the required collateral?”
The main thing is that you are less likely to get the advance rate you used to get on hard assets, like real estate and inventory. In the past a 50% loan against inventory was the max. Maybe it’s down to 30 to 35 percent today.
Q: My personal credit is pristine, why do I need a “relationship?” Won’t a bank lend to me on the strength of my FICA score?
Seiwert: You can have pristine financial statements, but if I don’t trust you I won’t make the loan. If your total relationship is through a credit card, you are a total unknown. Every bank loan that is done, the first thing the banker looks at is your character. He asks, “Will you work with me if things don’t go as planned? If you had the money, would you pay me?” If you don’t have that relationship, if you just have a series of transactions, you have put yourself and your business at risk. That may be okay in good times, but it’s not a good practice going forward.”
Q: So, if I don’t have a relationship and need one, where do I start?
Seiwert: If you want to get the best rate, go to the bank where you have your operating accounts (checking, payroll, collections account). They want to keep that business. That’s where the profits are today – on the operating side. Banks still make money on loans, but those come and go. Besides, if you are a small business person, you want to have a meaningful amount of business with your bank. You want to be a bigger fish. It’s no different than dealing with suppliers for your business.
Q: What if I’m not happy with the customer service at my existing bank? How do I find a new one?
Seiwert: If you are a well-run business, there are still bankers out there that would love your business. The first thing I would do is call your lawyer or accountant and say, “look I need to develop a relationship with a bank. Who is on your short list and may I use your name as a reference?”
(Or accountant or lawyer if you don’t have one)
OIA WebNews spoke to Bob Seiwert with the Center for Commercial Lending at the American Bankers Association for some insight into what conditions small businesses are facing in the credit markets. Here are excerpts from the interview.
Q: If I have a banking relationship already, aren’t I safe?
Seiwert: For a well-run business with a track record there is money available. But it may not be available at the bank you are banking with, so you better figure out where your bank sits. Not all banks specialize in small business loans. They may do them as an accommodation for your other business, but you want someone who really specializes in them. If you don’t have that at your bank, then you need to move on.
Go visit them and ask them, “How are you affected by the banking crisis?” Get very specific, as in, “If I was to ask for a loan today would it be available to me? If so, how much would it cost? On what terms? What would be the interest rate? What would be the required collateral?”
The main thing is that you are less likely to get the advance rate you used to get on hard assets, like real estate and inventory. In the past a 50% loan against inventory was the max. Maybe it’s down to 30 to 35 percent today.
Q: My personal credit is pristine, why do I need a “relationship?” Won’t a bank lend to me on the strength of my FICA score?
Seiwert: You can have pristine financial statements, but if I don’t trust you I won’t make the loan. If your total relationship is through a credit card, you are a total unknown. Every bank loan that is done, the first thing the banker looks at is your character. He asks, “Will you work with me if things don’t go as planned? If you had the money, would you pay me?” If you don’t have that relationship, if you just have a series of transactions, you have put yourself and your business at risk. That may be okay in good times, but it’s not a good practice going forward.”
Q: So, if I don’t have a relationship and need one, where do I start?
Seiwert: If you want to get the best rate, go to the bank where you have your operating accounts (checking, payroll, collections account). They want to keep that business. That’s where the profits are today – on the operating side. Banks still make money on loans, but those come and go. Besides, if you are a small business person, you want to have a meaningful amount of business with your bank. You want to be a bigger fish. It’s no different than dealing with suppliers for your business.
Q: What if I’m not happy with the customer service at my existing bank? How do I find a new one?
Seiwert: If you are a well-run business, there are still bankers out there that would love your business. The first thing I would do is call your lawyer or accountant and say, “look I need to develop a relationship with a bank. Who is on your short list and may I use your name as a reference?”
Credit Crunch Catching up With Outdoor Industry
While the recession started 14 months ago, only in the last three months does the credit crunch seem to have caught up with the outdoor industry. The most recent Outdoor Industry Association (OIA) Topline Report shows sales at core outdoor specialty stores dropped off 8 percent and 10 percent respectively in November and December after chugging along at an 8 percent growth rate in the first ten months of the year. While dollars sales rose 7 percent in the chain channel in December, the rise was due primarily to sales of lower ticket items and earlier than normal discounting. That has forced some sporting goods brands and chains to write down the value of inventory. Publicly traded companies in our industry are exploring “strategic alternatives” after defaulting on loan covenants. Discounting, meanwhile, seems destined to lower margins all around for the foreseeable future.
Under these circumstances, it’s not hard to imagine vendors and lenders tightening the reins on outdoor brands and specialty retailers. Even companies that have avoided debt could find themselves vulnerable if they’ve been slow to pay their suppliers. In the fourth quarter, many brands in the cycling industry stopped extending credit to their slowest paying dealers, reports retail consultant Jay Townley. First to go were those more than 90 days out. Then those who could not pay within 60 days were cut off. Thirty days could be next. Entrepreneurs using unsecured credit cards to get through slow months or periods of peak spending are being cut off with little warnings.
The result is that some small businesses are being forced into the credit markets at a particularly difficult time. Companies that do have banking relationships, meanwhile, are finding their bankers unwilling to loan as much against inventory, receivables, real estate and other assets.
The message for outdoor companies is – as President Obama noted in his February 9 press conference – “The credit crisis is real and it’s not over.” The flip side of that is that there is still time to get in front of it and there are plenty of banks – particularly community and regional banks – still lending money. With that in mind, OIA WebNews interviewed an array of consultants and bankers for advice on what retailers can and should do now to secure access to credit. Here are some of their tips:
Assume you will be affected. Operate on the assumption that you will need credit and that it will become more difficult, expensive and time consuming to obtain. Don’t wait until the last minute to investigate alternatives.
Establish a banking relationship. If you are relying on a credit card or internal funds to finance your business, you need to establish a banking relationship now.
If you’re a retailer, get to know the accounting module in your POS system. To mitigate their risk, banks are demanding weekly and even daily cash flow statements. If you don’t know how to do produce one, arrange a training session with your POS vendor.
GMROI analysis. Townley urges retailers to conduct GMROI analysis on as many SKUs as possible. Calculating “gross margin return on investment” reveals your most profitable products. By eliminating less profitable SKUs, you can free up cash, thereby enhancing your appeal to prospective lenders and increasing your leverage with the remaining vendors.
Learn the language. Bone up on your financial vocabulary and the key ratios bankers use. This tutorial from the Small Business Administration is a good place to start. If you are a retailer, attend today’s free Introduction to Financial Management Webinar at 2:00 p.m. (MST) to learn about the financial measurements you need to understand to make your business more profitable. It’s one of several programs OIA is launching this year to help outdoor retailers enhance their performance in 2009 and beyond. To see more resources for retailers, click here.
Under these circumstances, it’s not hard to imagine vendors and lenders tightening the reins on outdoor brands and specialty retailers. Even companies that have avoided debt could find themselves vulnerable if they’ve been slow to pay their suppliers. In the fourth quarter, many brands in the cycling industry stopped extending credit to their slowest paying dealers, reports retail consultant Jay Townley. First to go were those more than 90 days out. Then those who could not pay within 60 days were cut off. Thirty days could be next. Entrepreneurs using unsecured credit cards to get through slow months or periods of peak spending are being cut off with little warnings.
The result is that some small businesses are being forced into the credit markets at a particularly difficult time. Companies that do have banking relationships, meanwhile, are finding their bankers unwilling to loan as much against inventory, receivables, real estate and other assets.
The message for outdoor companies is – as President Obama noted in his February 9 press conference – “The credit crisis is real and it’s not over.” The flip side of that is that there is still time to get in front of it and there are plenty of banks – particularly community and regional banks – still lending money. With that in mind, OIA WebNews interviewed an array of consultants and bankers for advice on what retailers can and should do now to secure access to credit. Here are some of their tips:
Assume you will be affected. Operate on the assumption that you will need credit and that it will become more difficult, expensive and time consuming to obtain. Don’t wait until the last minute to investigate alternatives.
Establish a banking relationship. If you are relying on a credit card or internal funds to finance your business, you need to establish a banking relationship now.
If you’re a retailer, get to know the accounting module in your POS system. To mitigate their risk, banks are demanding weekly and even daily cash flow statements. If you don’t know how to do produce one, arrange a training session with your POS vendor.
GMROI analysis. Townley urges retailers to conduct GMROI analysis on as many SKUs as possible. Calculating “gross margin return on investment” reveals your most profitable products. By eliminating less profitable SKUs, you can free up cash, thereby enhancing your appeal to prospective lenders and increasing your leverage with the remaining vendors.
Learn the language. Bone up on your financial vocabulary and the key ratios bankers use. This tutorial from the Small Business Administration is a good place to start. If you are a retailer, attend today’s free Introduction to Financial Management Webinar at 2:00 p.m. (MST) to learn about the financial measurements you need to understand to make your business more profitable. It’s one of several programs OIA is launching this year to help outdoor retailers enhance their performance in 2009 and beyond. To see more resources for retailers, click here.
Tuesday, February 10, 2009
Viva Las Vegas: Like Elvis, SIA has left the building
For the past 37 years, the SIA SnowSports Show was on a roll in Las Vegas. But in 2010, the show will cash in its chips and try its luck in Denver, Colo. Not surprisingly, the big question on everyone's mind -- right after the economy -- was whether SIA '09 would be a blowout farewell party or a sparsely attended funereal affair. As it turned out, the mood at the recently concluded show (held January 24-27 at the Mandalay Bay Convention Center) was mostly upbeat.
SIA's management projected 20,000 attendees (up from 17,350 reported in 2008), with the show covering 348,000 net square feet (compared to 357,000 square feet in 2008) and 445 exhibitors representing an estimated 800-plus brands exhibiting in 3,479 booths (compared with 421 exhibitors representing 1,000 brands reported in 2008). SIA told SNEWS® it will have audited attendance and exhibitor numbers to report Feb. 13.
On the first day of SIA '09, Anthony DeRocco, vice president of global product development at K2 Sports, remarked, "The show energy is good. It's tough to get a read on attendance, but our goal is to do business."
When asked about the move to Denver, DeRocco echoed the sentiments of many vendors when he responded, "I'm looking forward to a new venue to shake things up a bit. Change is good. Frankly, I'm really excited. The question is the draw of Denver for retailers."
Charles Lozner, brand director of K2 Outdoor, which includes Tubbs, Karhu, Madshus and Atlas, was also enthusiastic. "SIA feels busier year-over-year than Outdoor Retailer. We're getting a lot of walk-in traffic." He added, "I'm ecstatic about Denver. You have to take the show to where it makes sense. Also, Denver is welcoming SIA with open arms."
While there is no question that the U.S. economy was (and still is) in the toilet, Mother Nature and Jack Frost joined forces to help the snowsports industry by providing plenty of cold, wet/snowy weather in most parts of the country during December and early January. As a result, product sell-through was fairly strong, particularly on the hardgoods side (albeit at closeout and discount prices). But now that retailers have cleared out much of their current inventory, will they be able to secure the funds needed to invest in product for next season? Therein lies the true gamble.
"In terms of open-to-buy, SIA is not a large writing show," explained K2's DeRocco. "There's a lot of caution in the market, but lots of good snow globally. We're snow farmers. Sell-through is off, but it's an opportunity to grow market share."
As is usually the case at SIA, each day offered a smidgeon of craziness in the aisles. The highlight occurred on day two, when rock icon Gene Simmons of KISS -- yes, he's the one with a tongue that is proportionally as long as that of a tube-lipped nectar bat -- was escorted around the show by a couple of burly security guys and a compact harem of scantily clad women. His mission was to help launch the MoneyBag snowboard and ski accessory line, a partnership with Dussault Apparel. Apparently, Simmons set a few tongues wagging at the New York Times (page B12 in the Jan. 31, 2009, edition) when a reporter there discovered that Swiss ski maker Faction Collective S.A. used an image of Simmons on a pair of skis without first obtaining permission. Much to the company's surprise and horror, the rock relic spotted the skis while en route to an interview. Faction is now trying to license said image.
Key trends SNEWS identified during our time at SIA:
Consumer spending
By most accounts, snowsports consumers are still spending money, but they want value and are demanding full feature sets.
"People are still skiing," said Leslie Baker-Brown, Tecnica's director of marketing, ski division. "If it's in their DNA, they're not going to stop. Skiing makes people feel good, so we're cautiously optimistic." She added, "While consumers are cautiously shopping, and are looking for a good deal/value, we see that they are still willing to spend for a good product. And a good value does not necessarily mean low price."
Hardgoods
• Flat backcountry skis are strong sellers, and many vendors are expanding their offerings. For example, K2's new Adventure Series boasts gender-specific, flat-tailed skis with a slight bit of rocker on the tips, and all models are compatible with alpine, alpine touring and telemark bindings. This is part of a broader trend of greater consumer demand for adaptive skis that can be used in a variety of snow conditions. (This is also in keeping with the consumer trend at retail to spend on skis while trying to save on bindings.)
• Women's-specific skis and snowboards continue to be growth categories.• Snowboard and ski topsheets boasting unique artwork, color and design remain extremely popular. The same is also true of snowboard boots, such as Nike Snowboarding's Zoom Force 1 DK-YS model that is part of an ongoing series.
• The use of eco-friendly materials -- as well as environmentally responsible manufacturing processes -- is spreading beyond the apparel and accessories markets. For instance, vendors including Rossignol, Salomon and K2 are making a concerted effort to use less material, and fewer inks and solvents, in skis and snowboards.
Apparel
• Wearable electronics are now de rigueur.
• In ski apparel, jackets and pants that can be zipped together to form one garment are becoming more prevalent. Kjus and Helly Hansen both offer such options.
• As in hardgoods, unique artwork incorporated onto apparel (think artist collaborations) is very popular, though pricey. In the snowboard realm, large plaid patterns -- particularly black-and-white and pink-and-white combinations -- are readily apparent on outerwear, hats, and even boots.
Rental market
For consumers who are just getting into Alpine skiing or snowboarding and are reluctant to invest in the gear, and for those who enjoy visiting resorts but hate having to schlep lots of equipment, the rental market now offers a wide range of solutions.
According to Tecnica's Baker-Brown, "(The market) is growing, but not as much for boots as it is for skis. We think that going forward, given airline baggage fees (and other travel expenses), people will still bring their own boots because of the fit issue, but they will rent skis."
Kelly Davis, SIA's director of research, concurred, adding, "The rental market is an important segment of the snowsports market -- in fact, about 20 percent of skis and 5 percent of snowboards were sold into the rental market last season."--Judy Leand
SIA's management projected 20,000 attendees (up from 17,350 reported in 2008), with the show covering 348,000 net square feet (compared to 357,000 square feet in 2008) and 445 exhibitors representing an estimated 800-plus brands exhibiting in 3,479 booths (compared with 421 exhibitors representing 1,000 brands reported in 2008). SIA told SNEWS® it will have audited attendance and exhibitor numbers to report Feb. 13.
On the first day of SIA '09, Anthony DeRocco, vice president of global product development at K2 Sports, remarked, "The show energy is good. It's tough to get a read on attendance, but our goal is to do business."
When asked about the move to Denver, DeRocco echoed the sentiments of many vendors when he responded, "I'm looking forward to a new venue to shake things up a bit. Change is good. Frankly, I'm really excited. The question is the draw of Denver for retailers."
Charles Lozner, brand director of K2 Outdoor, which includes Tubbs, Karhu, Madshus and Atlas, was also enthusiastic. "SIA feels busier year-over-year than Outdoor Retailer. We're getting a lot of walk-in traffic." He added, "I'm ecstatic about Denver. You have to take the show to where it makes sense. Also, Denver is welcoming SIA with open arms."
While there is no question that the U.S. economy was (and still is) in the toilet, Mother Nature and Jack Frost joined forces to help the snowsports industry by providing plenty of cold, wet/snowy weather in most parts of the country during December and early January. As a result, product sell-through was fairly strong, particularly on the hardgoods side (albeit at closeout and discount prices). But now that retailers have cleared out much of their current inventory, will they be able to secure the funds needed to invest in product for next season? Therein lies the true gamble.
"In terms of open-to-buy, SIA is not a large writing show," explained K2's DeRocco. "There's a lot of caution in the market, but lots of good snow globally. We're snow farmers. Sell-through is off, but it's an opportunity to grow market share."
As is usually the case at SIA, each day offered a smidgeon of craziness in the aisles. The highlight occurred on day two, when rock icon Gene Simmons of KISS -- yes, he's the one with a tongue that is proportionally as long as that of a tube-lipped nectar bat -- was escorted around the show by a couple of burly security guys and a compact harem of scantily clad women. His mission was to help launch the MoneyBag snowboard and ski accessory line, a partnership with Dussault Apparel. Apparently, Simmons set a few tongues wagging at the New York Times (page B12 in the Jan. 31, 2009, edition) when a reporter there discovered that Swiss ski maker Faction Collective S.A. used an image of Simmons on a pair of skis without first obtaining permission. Much to the company's surprise and horror, the rock relic spotted the skis while en route to an interview. Faction is now trying to license said image.
Key trends SNEWS identified during our time at SIA:
Consumer spending
By most accounts, snowsports consumers are still spending money, but they want value and are demanding full feature sets.
"People are still skiing," said Leslie Baker-Brown, Tecnica's director of marketing, ski division. "If it's in their DNA, they're not going to stop. Skiing makes people feel good, so we're cautiously optimistic." She added, "While consumers are cautiously shopping, and are looking for a good deal/value, we see that they are still willing to spend for a good product. And a good value does not necessarily mean low price."
Hardgoods
• Flat backcountry skis are strong sellers, and many vendors are expanding their offerings. For example, K2's new Adventure Series boasts gender-specific, flat-tailed skis with a slight bit of rocker on the tips, and all models are compatible with alpine, alpine touring and telemark bindings. This is part of a broader trend of greater consumer demand for adaptive skis that can be used in a variety of snow conditions. (This is also in keeping with the consumer trend at retail to spend on skis while trying to save on bindings.)
• Women's-specific skis and snowboards continue to be growth categories.• Snowboard and ski topsheets boasting unique artwork, color and design remain extremely popular. The same is also true of snowboard boots, such as Nike Snowboarding's Zoom Force 1 DK-YS model that is part of an ongoing series.
• The use of eco-friendly materials -- as well as environmentally responsible manufacturing processes -- is spreading beyond the apparel and accessories markets. For instance, vendors including Rossignol, Salomon and K2 are making a concerted effort to use less material, and fewer inks and solvents, in skis and snowboards.
Apparel
• Wearable electronics are now de rigueur.
• In ski apparel, jackets and pants that can be zipped together to form one garment are becoming more prevalent. Kjus and Helly Hansen both offer such options.
• As in hardgoods, unique artwork incorporated onto apparel (think artist collaborations) is very popular, though pricey. In the snowboard realm, large plaid patterns -- particularly black-and-white and pink-and-white combinations -- are readily apparent on outerwear, hats, and even boots.
Rental market
For consumers who are just getting into Alpine skiing or snowboarding and are reluctant to invest in the gear, and for those who enjoy visiting resorts but hate having to schlep lots of equipment, the rental market now offers a wide range of solutions.
According to Tecnica's Baker-Brown, "(The market) is growing, but not as much for boots as it is for skis. We think that going forward, given airline baggage fees (and other travel expenses), people will still bring their own boots because of the fit issue, but they will rent skis."
Kelly Davis, SIA's director of research, concurred, adding, "The rental market is an important segment of the snowsports market -- in fact, about 20 percent of skis and 5 percent of snowboards were sold into the rental market last season."--Judy Leand
Special Report - Part 2: On Your Mark -- Strategies for protecting trademarks from becoming generic terms
Protecting a brand trademark from becoming part of the common vernacular isn't an issue just for large corporations like Kleenex and Xerox. In Part 1 of our special report on Jan. 30, 2009, SNEWS® examined how outdoor industry companies navigate the turbulent waters of brand trademarks to protect them from becoming generic terms, also known as "genericide." Click here to read Special Report - Part 1: On Your Mark -- Protect trademarks from being slaughtered by 'genericide'. In today’s Part 2, we talk to trademark experts, as well as companies that have dealt with legal battles, about strategies for both supplies and retailers to employ to protect a brand and trademark.
When determining whether or not a trademark name is generic, courts ask a fundamental question: Can you trace the trademarked word to a specific source?
Swiss Army is a term synonymous with a multifunction tool, but can you trace the words "Swiss Army" to a particular company? For a long time, that was a big question. Since the 1890s, Victorinox (now Victorinox Swiss Army) and Wenger both produced red-handled multifunction tools for the Swiss government, and neither could claim the sole trademark, as you couldn't trace the product to one manufacturing source.
Do’s and Don’ts to keep your trademark in good shape
Do:
>> Use a trademark in distinct type – Capitalize the entire trademark or set it off from other words through bold or italicized typeface: MIDAS® not Midas.
>> Use a mark as a proper adjective – Associate the mark with the descriptive name of the product or service in all labeling and sales promotional pieces, feature or technical articles, published reports and news releases: MEDTRONIC® pacemakers.
>> Use a mark with notice of its status – If the mark is registered with the U.S. Patent and Trademark Office, use one of the following with each mark: ® or TM (trademark) or SM (service mark).
Don’t:
>> Use a mark as a noun – Wrong: LR Mate® keeps costs under control.
>> Use a mark as a verb – Wrong: Let’s go Rollerblading.
>> Change a mark’s form, such as adding hyphens – Wrong: Buffalo-Wild-Wings®.
>> Use a mark in a possessive form – When it comes to waterproofing technology, Event’s
popularity has really grown.
>> Use a mark to modify or describe any words other than the appropriate generic or descriptive name – Wrong: Trail runners stay hydrated when they use a Camelbak system. Right: The Camelbak Octane XC hydration pack is convenient for trail runners.
>> Abbreviate a mark – Wrong: GSI. Right: GSI Commerce.
>> Wrongly identify a mark as registered unless it is filed with the U.S. Patent and Trademark Office – Wrong: Indoor Studio Cycles® pedal as well as any indoor bikes.
Information courtesy of Intellectual Property Attorney Dean Karau (dkarau@fredlaw.com)
With no company holding possession of the trademark, other knife manufacturers perceived that the Swiss Army term was generic. In the early 1990s, the Arrow Trading Company began to import pocketknives made in China that had red handles emblazoned with the words "Swiss Army." In 1992, Victorinox sued Arrow for false advertising and unfair competition.
"This was hard-fought litigation that went on for 10 years," said David Weild, a lawyer with Edwards Angell Palmer & Dodge LLP, which represents Victorinox Swiss Army. In the end, the court determined that Victorinox and Wenger could be considered the source for Swiss Army knives, because the term had become synonymous with high-quality tools made by these particular manufacturers. In 2004, Victorinox and Wenger were granted trademarks for Swiss Army, and in 2005 Victorinox purchased Wenger, further establishing itself as a single source.
Yes, the legal wrangling over trademarks can be confusing, but it just goes to show the headaches that can occur when a trademark name is not solidly connected to a particular company. If a company might be faced with a decade of litigation, it makes sense to aggressively prevent generic use of a brand name.
Bending over backward
Some companies go to great lengths to prevent genericide, including behemoth companies like Xerox. But does such a large company really have to worry about losing its trademark? Well, yes.
The Xerox Corp. had watched its trademark name being used synonymously for "photocopying." The company successfully addressed it with an extensive public relations campaign asking consumers to "photocopy" rather than "Xerox" documents. The company won the battle…mostly. It lost the campaign for the use of the word in Russian, Bulgarian, Romanian and Portuguese, in which Xerox is now a genericized term. Even recently -- the battle never is over, you see -- the company addressed the situation again, placing an advertisement in the November 2007 issue of the ABA Journal of the American Bar Association. With lawyers reading the publication, it's certainly important to keep awareness high. The ad showed a zipper placed over the word Xerox on the page. Below that was the following copy: "If you use 'Xerox' the way you use 'zipper' our trademark could be left wide open."
Eye-catching, yes? And, then to explain it further, came this: "No one likes to leave their name open to misuse. Which is what happens when you use our name in a generic manner. Basically you're putting it in a compromising position, which could cause it to lose its trademark status. That's what happened to the name 'zipper' years ago. So when you use our name, please use it as an adjective to identify our products and services, such as 'Xerox copiers.' Never as a verb: 'to Xerox' in place of 'to copy,' or as a noun: 'Xeroxes' in place of 'copies.' Now that you're aware of all this, that should just about zip things up. Thanks."
The Xerox ad brings up an important issue in preserving a trademark. A company -- and, of course, its retailers -- is not only required to protect its trademark, but it must not contribute to its use as a generic term.
Be careful what you say
"The reason a term becomes generic is due to the tension between marketing and trademark law," said Dean Karau, an intellectual property lawyer with the Fredrickson & Byron firm in Minneapolis, Minn. "Trademark law respects and gives right to distinctive terms that can help the public distinguish the source of products. Marketing oftentimes wants to be descriptive. And when you use a trademark descriptively, the public becomes conditioned to use it in the same way. That's when it morphs from a trademark to a generic term."
To understand this better, simply look at the company Google and what has happened to its name. For a modern success story, it's also a prime example of a company that might be putting its trademark in jeopardy. Unless you've been stranded on an island for the past few years, you know that Google has quickly morphed into a generic term for "search" on the Internet. In 2006, Google allowed Pontiac to run a TV ad with a voiceover that said, "Don't take our word for it, Google 'Pontiac' to find out."
When Google allowed its trademark to be used as a verb, it effectively endorsed the notion that its trademark was a generic term for performing an Internet search. You'd think the Google lawyers would have known better. Complicating matters, in 2006 the Oxford English Dictionary actually included Google as a verb.
Now, we know what you're thinking: Google is a big company that has such command of the search engine market that no competitor could challenge its trademark. Sure, that's the case now, but things change, especially when it comes to the high-tech world.
"Where they have to be worried is, as the search engine field levels out and they get serious competitors, they may have problems," said Karau. Google does have the advantage because it was the first highly recognized search engine and ruled the market early.
"Google became the leader so quickly, even though it is being used as a verb and noun -- every wrong way you can use it -- people still know exactly (what brand) you're talking about," said Karau.
W.L. Gore, GU and other outdoor trademarks such as CamelBak have had a similar advantage. These brands launched product categories, and they have gained some advantage by becoming synonymous with waterproof apparel, energy gels and hydration systems.
"If a customer is in a retail store and sees a selection of eight varieties of energy gels, they'll likely go with GU because the brand is safe and familiar," said Holly Bennett, senior marketing manager at energy-gel maker GU.
But Steve Shuster, global brand manager of W.L. Gore, warned that consumers can quickly shift their loyalty. "I could be aware of a lot of different brands, but if I don't understand the essence of the brand I can be moved off that," he said. And this really gets to the heart of genericide. When consumers no longer equate a trademark with a certain manufacturer's product with distinguishable traits or quality, then words, like Xerox or Thermos did, become nothing more than common lingo.
"We want to create a unique identity so consumers go into a store insisting on the Gore-Tex brand," said Shuster. "Having that leadership position is advantageous, but we need to make sure it's understood that not all products are created equally."
If you doubt the potential damage of genericide, just browse the drugstore aisles for "aspirin" -- yeah that was once a trademark name too. We swear. Google it and check for yourself. --Marcus Woolf
Missed Part 1? Click here to read that Jan. 30, 2009 installment.
When determining whether or not a trademark name is generic, courts ask a fundamental question: Can you trace the trademarked word to a specific source?
Swiss Army is a term synonymous with a multifunction tool, but can you trace the words "Swiss Army" to a particular company? For a long time, that was a big question. Since the 1890s, Victorinox (now Victorinox Swiss Army) and Wenger both produced red-handled multifunction tools for the Swiss government, and neither could claim the sole trademark, as you couldn't trace the product to one manufacturing source.
Do’s and Don’ts to keep your trademark in good shape
Do:
>> Use a trademark in distinct type – Capitalize the entire trademark or set it off from other words through bold or italicized typeface: MIDAS® not Midas.
>> Use a mark as a proper adjective – Associate the mark with the descriptive name of the product or service in all labeling and sales promotional pieces, feature or technical articles, published reports and news releases: MEDTRONIC® pacemakers.
>> Use a mark with notice of its status – If the mark is registered with the U.S. Patent and Trademark Office, use one of the following with each mark: ® or TM (trademark) or SM (service mark).
Don’t:
>> Use a mark as a noun – Wrong: LR Mate® keeps costs under control.
>> Use a mark as a verb – Wrong: Let’s go Rollerblading.
>> Change a mark’s form, such as adding hyphens – Wrong: Buffalo-Wild-Wings®.
>> Use a mark in a possessive form – When it comes to waterproofing technology, Event’s
popularity has really grown.
>> Use a mark to modify or describe any words other than the appropriate generic or descriptive name – Wrong: Trail runners stay hydrated when they use a Camelbak system. Right: The Camelbak Octane XC hydration pack is convenient for trail runners.
>> Abbreviate a mark – Wrong: GSI. Right: GSI Commerce.
>> Wrongly identify a mark as registered unless it is filed with the U.S. Patent and Trademark Office – Wrong: Indoor Studio Cycles® pedal as well as any indoor bikes.
Information courtesy of Intellectual Property Attorney Dean Karau (dkarau@fredlaw.com)
With no company holding possession of the trademark, other knife manufacturers perceived that the Swiss Army term was generic. In the early 1990s, the Arrow Trading Company began to import pocketknives made in China that had red handles emblazoned with the words "Swiss Army." In 1992, Victorinox sued Arrow for false advertising and unfair competition.
"This was hard-fought litigation that went on for 10 years," said David Weild, a lawyer with Edwards Angell Palmer & Dodge LLP, which represents Victorinox Swiss Army. In the end, the court determined that Victorinox and Wenger could be considered the source for Swiss Army knives, because the term had become synonymous with high-quality tools made by these particular manufacturers. In 2004, Victorinox and Wenger were granted trademarks for Swiss Army, and in 2005 Victorinox purchased Wenger, further establishing itself as a single source.
Yes, the legal wrangling over trademarks can be confusing, but it just goes to show the headaches that can occur when a trademark name is not solidly connected to a particular company. If a company might be faced with a decade of litigation, it makes sense to aggressively prevent generic use of a brand name.
Bending over backward
Some companies go to great lengths to prevent genericide, including behemoth companies like Xerox. But does such a large company really have to worry about losing its trademark? Well, yes.
The Xerox Corp. had watched its trademark name being used synonymously for "photocopying." The company successfully addressed it with an extensive public relations campaign asking consumers to "photocopy" rather than "Xerox" documents. The company won the battle…mostly. It lost the campaign for the use of the word in Russian, Bulgarian, Romanian and Portuguese, in which Xerox is now a genericized term. Even recently -- the battle never is over, you see -- the company addressed the situation again, placing an advertisement in the November 2007 issue of the ABA Journal of the American Bar Association. With lawyers reading the publication, it's certainly important to keep awareness high. The ad showed a zipper placed over the word Xerox on the page. Below that was the following copy: "If you use 'Xerox' the way you use 'zipper' our trademark could be left wide open."
Eye-catching, yes? And, then to explain it further, came this: "No one likes to leave their name open to misuse. Which is what happens when you use our name in a generic manner. Basically you're putting it in a compromising position, which could cause it to lose its trademark status. That's what happened to the name 'zipper' years ago. So when you use our name, please use it as an adjective to identify our products and services, such as 'Xerox copiers.' Never as a verb: 'to Xerox' in place of 'to copy,' or as a noun: 'Xeroxes' in place of 'copies.' Now that you're aware of all this, that should just about zip things up. Thanks."
The Xerox ad brings up an important issue in preserving a trademark. A company -- and, of course, its retailers -- is not only required to protect its trademark, but it must not contribute to its use as a generic term.
Be careful what you say
"The reason a term becomes generic is due to the tension between marketing and trademark law," said Dean Karau, an intellectual property lawyer with the Fredrickson & Byron firm in Minneapolis, Minn. "Trademark law respects and gives right to distinctive terms that can help the public distinguish the source of products. Marketing oftentimes wants to be descriptive. And when you use a trademark descriptively, the public becomes conditioned to use it in the same way. That's when it morphs from a trademark to a generic term."
To understand this better, simply look at the company Google and what has happened to its name. For a modern success story, it's also a prime example of a company that might be putting its trademark in jeopardy. Unless you've been stranded on an island for the past few years, you know that Google has quickly morphed into a generic term for "search" on the Internet. In 2006, Google allowed Pontiac to run a TV ad with a voiceover that said, "Don't take our word for it, Google 'Pontiac' to find out."
When Google allowed its trademark to be used as a verb, it effectively endorsed the notion that its trademark was a generic term for performing an Internet search. You'd think the Google lawyers would have known better. Complicating matters, in 2006 the Oxford English Dictionary actually included Google as a verb.
Now, we know what you're thinking: Google is a big company that has such command of the search engine market that no competitor could challenge its trademark. Sure, that's the case now, but things change, especially when it comes to the high-tech world.
"Where they have to be worried is, as the search engine field levels out and they get serious competitors, they may have problems," said Karau. Google does have the advantage because it was the first highly recognized search engine and ruled the market early.
"Google became the leader so quickly, even though it is being used as a verb and noun -- every wrong way you can use it -- people still know exactly (what brand) you're talking about," said Karau.
W.L. Gore, GU and other outdoor trademarks such as CamelBak have had a similar advantage. These brands launched product categories, and they have gained some advantage by becoming synonymous with waterproof apparel, energy gels and hydration systems.
"If a customer is in a retail store and sees a selection of eight varieties of energy gels, they'll likely go with GU because the brand is safe and familiar," said Holly Bennett, senior marketing manager at energy-gel maker GU.
But Steve Shuster, global brand manager of W.L. Gore, warned that consumers can quickly shift their loyalty. "I could be aware of a lot of different brands, but if I don't understand the essence of the brand I can be moved off that," he said. And this really gets to the heart of genericide. When consumers no longer equate a trademark with a certain manufacturer's product with distinguishable traits or quality, then words, like Xerox or Thermos did, become nothing more than common lingo.
"We want to create a unique identity so consumers go into a store insisting on the Gore-Tex brand," said Shuster. "Having that leadership position is advantageous, but we need to make sure it's understood that not all products are created equally."
If you doubt the potential damage of genericide, just browse the drugstore aisles for "aspirin" -- yeah that was once a trademark name too. We swear. Google it and check for yourself. --Marcus Woolf
Missed Part 1? Click here to read that Jan. 30, 2009 installment.
Monday, February 9, 2009
Consumers Still Buying Green Through Economic Changes
PORTLAND, Ore. -- Most consumers have not cut back their spending on green products, according to a new survey.
The 2009 National Green Buying survey by Green Seal and EnviroMedia Social Marketing found that half of consumers are buying just as many green products now as they did before the economic downturn began. An additional 19 percent are buying more products than before, and 14 percent are buying fewer green products.
When asked what the main factor is when making purchasing decisions, the amount of consumers that said a product's reputation mattered most (21 percent) was followed closely by word of mouth (19 percent) and brand loyalty (15 percent).
Only 9 percent said that green advertising is the primary influence on their purchase choices.
The survey revealed a few other issues related to green advertising. About one in three of those surveyed said they do not know how to tell if the claims on a green product are true, with only one out of 10 consumers trusting product claims no matter what.
Some consumers are taking the initiative to ferret out the truth behind some advertisements, with 24 percent saying the read packaging to understand more about claims and 17 percent researching online or looking at studies.
Consumers were also asked which green actions they make, with the grand majority (87 percent) saying they recycle. Almost the same amount look for minimal packaging (60 percent) and buy green cleaning products (58 percent), and 31 percent buy green personal care products.
Conducted by Opinion Research Corporation, the telephone survey questioned 1,000 consumers. Details of the survey were announced at the Greenwashing Forum at the University of Oregon on Feb. 6.
Another survey on consumer spending released earlier this year found that while consumers cut back on spending, more than 75 percent consider environmental and social aspects in deciding what to buy and about a third are willing to pay more for those benefits.
The 2009 National Green Buying survey by Green Seal and EnviroMedia Social Marketing found that half of consumers are buying just as many green products now as they did before the economic downturn began. An additional 19 percent are buying more products than before, and 14 percent are buying fewer green products.
When asked what the main factor is when making purchasing decisions, the amount of consumers that said a product's reputation mattered most (21 percent) was followed closely by word of mouth (19 percent) and brand loyalty (15 percent).
Only 9 percent said that green advertising is the primary influence on their purchase choices.
The survey revealed a few other issues related to green advertising. About one in three of those surveyed said they do not know how to tell if the claims on a green product are true, with only one out of 10 consumers trusting product claims no matter what.
Some consumers are taking the initiative to ferret out the truth behind some advertisements, with 24 percent saying the read packaging to understand more about claims and 17 percent researching online or looking at studies.
Consumers were also asked which green actions they make, with the grand majority (87 percent) saying they recycle. Almost the same amount look for minimal packaging (60 percent) and buy green cleaning products (58 percent), and 31 percent buy green personal care products.
Conducted by Opinion Research Corporation, the telephone survey questioned 1,000 consumers. Details of the survey were announced at the Greenwashing Forum at the University of Oregon on Feb. 6.
Another survey on consumer spending released earlier this year found that while consumers cut back on spending, more than 75 percent consider environmental and social aspects in deciding what to buy and about a third are willing to pay more for those benefits.
Tuesday, February 3, 2009
HERA Foundation Announces the Passing of Founder Sean Patrick
CARBONDALE, COLO. HERA Foundation founder Sean Patrick, 57, died of complications related to ovarian cancer on January 20, 2009. She was a remarkable person who touched many lives in profound ways. Ms. Patrick was diagnosed with ovarian cancer in 1997 and established the HERA Foundation (health, empowerment, research, awareness) in 2002. Under her guidance, the non-profit has made great strides in raising funds for ovarian cancer research and awareness. She received Climbing Magazine’s Golden Piton award in 2005 in recognition of her outstanding community service. In 2004, Ms Patrick was featured in a one-hour special on the Jane Pauley show, sharing her inspiring journey facing ovarian cancer.
A recognized leader in the cancer community, Ms. Patrick sat on numerous boards for cancer related organizations, including the Blanton Davis Board, M.D. Anderson Cancer Center. She was also a member of the Ovarian Cancer National Alliance’s public education committee and the SPORE External Advisory Committee at M.D. Anderson Cancer Center.
Born April 5, 1951 in Peekskill, N.Y., she was awarded a Bachelor of Science degree in fine arts from Skidmore College, Saratoga, N.Y. in 1973. Upon completion of college, she was selected for an art fellowship in Florence, Italy. In 1988, Ms. Patrick founded the Impact Group, a strategic marketing and design firm based in Western Colorado. She was an avid rock climber, skier, cyclist and scuba diver. Beyond HERA, Ms. Patrick adopted a selfless attitude in everything she did, and dedicated her life to helping others overcome life’s challenges. Her community work and volunteer service over four decades inspired young men and women in many communities. Below is her personal statement. It is a testament of her passion. She will be greatly missed.
Sean Patrick, Founder HERA Foundation & Climb4Life Event Series The years since Sean Patrickʼs diagnosis with ovarian cancer have been a melting pot of emotion. Though now sheʼs at the point where she can say, “Cancer does not mean life is over; you can survive and thrive, do new things and learn new skills.”
For Sean, a self-proclaimed type-A overachiever, this has meant learning not to sweat the small stuff. “Life happens and the only thing you have control of is your attitude,” she says. “You can deal with it with a bad attitude or a good one…and life is just more fun with a good attitude.”
In 1990 this longtime resident of Carbondale, Colorado and avid skier, mountain biker and hiker, learned to rock climb - - a sport that encompasses all that she loves in life: problem solving, taking calculated risks and physical and mental challenges. Seven years later, at age 46, she reached an advanced level in climbing, 5.12a. At the same time, she faced the greatest test of her life: a diagnosis of ovarian cancer. The cancer diagnosis came as a shock since she had no family history of ovarian, breast or colon cancer.
During her recovery from surgery she decided to use her passion for the outdoors and resolve the lack of awareness, information, and funding for ovarian cancer. Creating the HERA (Health, Empowerment, Research and Advocacy) Foundation and the Climb for Life, her goal was to empower women to take control of their health, empower scientists to find new directions in ovarian cancer research and to empower communities to provide support.
Having met the Johns Hopkins Director of Gynecology/Pathology, Johns Hopkins approached her to get involved with creating an ovarian cancer website. Taking it a step further, she worked to create the HERA Foundation’s Web site, www.herafoundation.org, which receives 40,000 unique visitors monthly from 97 countries and has been translated into Chinese and Spanish.
Sean and the HERA Foundation have touched the lives of countless women around the world – some scared others frustrated, but all in need of support during a time more stressful than most of us can imagine. In the whirlwind that has become her life as an advocate for women Sean passes on the valuable lesson sheʼs learned:
”We all have the power within us to change the world in a positive way. It just takes one idea, one individual, one scientist, one company or one community to make a difference in the world. Thatʼs the power of one.”
On this date that brings a great loss, Sean held great hope that with the new administration there will be a much-needed change in our health care system. A memorial service for Ms. Patrick is planned for April 2009; details to follow at www.herafoundation.org. To continue her legacy, please make donations to the HERA Foundation, www.herafoundation.org.
About the HERA Foundation
The HERA Foundation is a registered 501 (c) 3, whose mission is to stop the loss of mothers, daughters, wives, sisters, partners and girlfriends from ovarian cancer by empowering women to take control of their health, empowering the medical community to find new directions in ovarian cancer research and empowering communities to provide support. For more information, visit www.herafoundation.org.
A recognized leader in the cancer community, Ms. Patrick sat on numerous boards for cancer related organizations, including the Blanton Davis Board, M.D. Anderson Cancer Center. She was also a member of the Ovarian Cancer National Alliance’s public education committee and the SPORE External Advisory Committee at M.D. Anderson Cancer Center.
Born April 5, 1951 in Peekskill, N.Y., she was awarded a Bachelor of Science degree in fine arts from Skidmore College, Saratoga, N.Y. in 1973. Upon completion of college, she was selected for an art fellowship in Florence, Italy. In 1988, Ms. Patrick founded the Impact Group, a strategic marketing and design firm based in Western Colorado. She was an avid rock climber, skier, cyclist and scuba diver. Beyond HERA, Ms. Patrick adopted a selfless attitude in everything she did, and dedicated her life to helping others overcome life’s challenges. Her community work and volunteer service over four decades inspired young men and women in many communities. Below is her personal statement. It is a testament of her passion. She will be greatly missed.
Sean Patrick, Founder HERA Foundation & Climb4Life Event Series The years since Sean Patrickʼs diagnosis with ovarian cancer have been a melting pot of emotion. Though now sheʼs at the point where she can say, “Cancer does not mean life is over; you can survive and thrive, do new things and learn new skills.”
For Sean, a self-proclaimed type-A overachiever, this has meant learning not to sweat the small stuff. “Life happens and the only thing you have control of is your attitude,” she says. “You can deal with it with a bad attitude or a good one…and life is just more fun with a good attitude.”
In 1990 this longtime resident of Carbondale, Colorado and avid skier, mountain biker and hiker, learned to rock climb - - a sport that encompasses all that she loves in life: problem solving, taking calculated risks and physical and mental challenges. Seven years later, at age 46, she reached an advanced level in climbing, 5.12a. At the same time, she faced the greatest test of her life: a diagnosis of ovarian cancer. The cancer diagnosis came as a shock since she had no family history of ovarian, breast or colon cancer.
During her recovery from surgery she decided to use her passion for the outdoors and resolve the lack of awareness, information, and funding for ovarian cancer. Creating the HERA (Health, Empowerment, Research and Advocacy) Foundation and the Climb for Life, her goal was to empower women to take control of their health, empower scientists to find new directions in ovarian cancer research and to empower communities to provide support.
Having met the Johns Hopkins Director of Gynecology/Pathology, Johns Hopkins approached her to get involved with creating an ovarian cancer website. Taking it a step further, she worked to create the HERA Foundation’s Web site, www.herafoundation.org, which receives 40,000 unique visitors monthly from 97 countries and has been translated into Chinese and Spanish.
Sean and the HERA Foundation have touched the lives of countless women around the world – some scared others frustrated, but all in need of support during a time more stressful than most of us can imagine. In the whirlwind that has become her life as an advocate for women Sean passes on the valuable lesson sheʼs learned:
”We all have the power within us to change the world in a positive way. It just takes one idea, one individual, one scientist, one company or one community to make a difference in the world. Thatʼs the power of one.”
On this date that brings a great loss, Sean held great hope that with the new administration there will be a much-needed change in our health care system. A memorial service for Ms. Patrick is planned for April 2009; details to follow at www.herafoundation.org. To continue her legacy, please make donations to the HERA Foundation, www.herafoundation.org.
About the HERA Foundation
The HERA Foundation is a registered 501 (c) 3, whose mission is to stop the loss of mothers, daughters, wives, sisters, partners and girlfriends from ovarian cancer by empowering women to take control of their health, empowering the medical community to find new directions in ovarian cancer research and empowering communities to provide support. For more information, visit www.herafoundation.org.
Industry Watch: Keeping an eye on layoffs, bankruptcies and closings… Who’s next?
Among mainstream stores and suppliers, lists grow longer each day it seems of shutterings, bankruptcies, layoffs and rumors of demise. From Mervyns and Home Depot, to Circuit City and Starbucks, we read daily about the financial and human toll the economy is taking on businesses.
The same sadly holds true for our industries. We hear reports and rumors daily about a manufacturer or store that is or will be laying off more employees or reducing stores -- or filing for bankruptcy protection. To survive, those decisions could be a necessary evil, but it could be argued that some companies are in this situation only because they were not as smart about growth as they could have been – and may not have or are not now taking the appropriate steps to survive the slowdown. Remember the dot-com era? One website (www.fu_____company.com – you fill in the blanks since there was one word that not even SNEWS® is willing to publish) tracked the dot-com industry’s unfolding drama of companies collapsing and workers losing everything – click here to find what is left of that website. Ironically, like the dot-com’s it covered, it too hasn’t survived – perhaps that’s a good sign – and can’t even sell its URL.
Starting today, in a less morbid fashion we hope, SNEWS is tracking the economic impacts, both large and small, as outdoor and fitness industry companies work to navigate through today’s marketplace of minefields. In the chart below, you will find a company name, the date of some “action,” a brief summary of the situation – layoffs, closings, bankruptcy filings – and then a link to the appropriate SNEWS news with more information and details. It is certainly sobering to see an account of the impacts on our industries in one list, rather than scattered here and there among headlines and archives as individual articles. We will keep you posted as we update the list when new reports of turmoil roll in. Feel free to drop us a note at snewsbox@snewsnet.com if you know of companies or individuals who have been impacted and should be added to our list – or of ones we have missed. As always details and dates are appreciated. Naturally, we keep the sources of our reports confidential, if requested, and we fact-check every tip.
Check out our current SNEWS Reader Poll – a new ongoing feature since our website redesign launched in January – that ask, “If the economy does not improve in the next six months, do you believe additional businesses are at risk of going under?” The poll was posted Jan. 26 and will remain active until Feb. 9. Simply click here to voice your opinion. To view the regularly updated survey results as well as past Reader Polls and their results, click here or, simply log in at www.snewsnet.com and scroll down the right navigation bar until you arrive at the colorful survey graphic.
And, if you have not yet seen our blog posting on the subject of layoffs, click here to read…and to chime in should you desire.
The same sadly holds true for our industries. We hear reports and rumors daily about a manufacturer or store that is or will be laying off more employees or reducing stores -- or filing for bankruptcy protection. To survive, those decisions could be a necessary evil, but it could be argued that some companies are in this situation only because they were not as smart about growth as they could have been – and may not have or are not now taking the appropriate steps to survive the slowdown. Remember the dot-com era? One website (www.fu_____company.com – you fill in the blanks since there was one word that not even SNEWS® is willing to publish) tracked the dot-com industry’s unfolding drama of companies collapsing and workers losing everything – click here to find what is left of that website. Ironically, like the dot-com’s it covered, it too hasn’t survived – perhaps that’s a good sign – and can’t even sell its URL.
Starting today, in a less morbid fashion we hope, SNEWS is tracking the economic impacts, both large and small, as outdoor and fitness industry companies work to navigate through today’s marketplace of minefields. In the chart below, you will find a company name, the date of some “action,” a brief summary of the situation – layoffs, closings, bankruptcy filings – and then a link to the appropriate SNEWS news with more information and details. It is certainly sobering to see an account of the impacts on our industries in one list, rather than scattered here and there among headlines and archives as individual articles. We will keep you posted as we update the list when new reports of turmoil roll in. Feel free to drop us a note at snewsbox@snewsnet.com if you know of companies or individuals who have been impacted and should be added to our list – or of ones we have missed. As always details and dates are appreciated. Naturally, we keep the sources of our reports confidential, if requested, and we fact-check every tip.
Check out our current SNEWS Reader Poll – a new ongoing feature since our website redesign launched in January – that ask, “If the economy does not improve in the next six months, do you believe additional businesses are at risk of going under?” The poll was posted Jan. 26 and will remain active until Feb. 9. Simply click here to voice your opinion. To view the regularly updated survey results as well as past Reader Polls and their results, click here or, simply log in at www.snewsnet.com and scroll down the right navigation bar until you arrive at the colorful survey graphic.
And, if you have not yet seen our blog posting on the subject of layoffs, click here to read…and to chime in should you desire.
Global environmental standard bluesign now on speedy growth track
A year ago, bluesign's CEO Peter Waeber held a press conference at the ispo trade show in Munich, Germany, with a smattering of curious journalists in the room who had never heard of his company.
bluesign, he patiently explained while flanked by representatives from MEC and two suppliers, is a Swiss company dedicated to addressing health and safety atrocities throughout the entire textile manufacturing and selling chain. He has been establishing its plan and making industry contacts at bluesign since 2000, a demonstration of his trademark Swiss patience, thoroughness and, in this case, confidence.
"It's a slow process," he told SNEWS® at that time. Waeber knew bluesign's time was coming.
"I have a vision and a mission," he said. "We had a vision to bring something easier to the market…. I know we can do it in a better way; however, it's not easy to motivate the chemical industry."
Time is now
Twelve months later, bluesign's time has come. Companies are being motivated, difficult or not. bluesign has more than quadrupled its membership, albeit still only 10 brands; had a 50-percent stake in the company acquired in July 2008 by Swiss SGS (www.sgs.com), a 200-year-old inspection, verification, testing and certification company; and the "bluefinder," a database for its members of processes and chemicals, will be relaunched by March 2009.
But with no time to rest, Waeber trots the globe to push membership and support. He prowled the aisles at Outdoor Retailer Winter Market in January 2009, moving from meeting to meeting, and he received a Top 25 honor as a 2009 SNEWS Power Player (Click here to see his interview and photo in a Jan. 19, 2009, SNEWS story.) Always understated, Waeber paused a moment at the show to show an edge of a smile about the award, but quickly moved on to his next meeting -- and to continue work on bluesign's future that could change the world's environment.
"We have a lot of projects," he told SNEWS. "The companies that are now members realize and they also know sustainability isn't happening overnight.
"But it's happening," he said. "We can talk and talk and talk, but now we have to take action. I'm not pessimistic at all."
All action, not just talk
bluesign (www.bluesign.com), which Waeber spells using a lower case "b," tackles the problem of environmentally unfriendly manufacturing at its root, from air emission and waste water to chemical processes and components, using systems only a long-time textile scientist like Waeber -- but one with an environmental passion -- could create. Waeber is also a chemist and outdoor enthusiast who has studied economics. He has worked at various textile mills and, before starting bluesign, was the technical director and a member of the board at Schoeller Textil AG, also in Switzerland, where the concept was born.
Said Jeff Crook, product manager at MEC, who participated in the conference at ispo a year ago, "They're focused on solutions."
"The foundation of the system is economically sustainable," Crook said. "It has to be economically sustainable for everybody in the production chain."
Another participant, Roger Yeh, president of Everest Textile of Taiwan, put it more simply, "I trust Peter."
How it works
According to the company, the bluesign standard's five principles are:
>> resource productivity
>> consumer safety>> air emission
>> water emission
>> occupational health and safety
This "gives suppliers, manufacturers, retailers, brands and consumers the good feeling of having done everything possible for the environment, health and safety," a company statement said.
There are various components -- all rather precise albeit a bit complicated -- designed to link closely the manufacturing and selling chain, create buy-in from all sides, and give each a tool to find out more to operate in an environmentally friendlier way while also being more transparent and gaining more knowledge about others in the chain.
First, there are three levels of participants:
>> Supporters are companies from the chemical and machine industry.
>> Partners are mills, manufacturers and converters.
>> Members (also known as users) are brands and retailers.
The most recent members are REI, which announced its membership on Jan. 20 and Deuter on Jan. 31. Others include Patagonia and MEC, both of which were the first, joining in May 2007; The North Face, Vaude, Helly Hansen, Hagloefs, Eileen Fisher and Boardroom/Eco Apparel.
Then, there are three systems provided by bluesign for information and transparency:
>> bluetool, a source of information for the chemical industry.
>> bluefinder, the guide for manufacturers to source better materials and mills.
>> blueguide, still in development, a tool for all member brands and retailers to help them choose better environmental sources.
Only a year away from celebrating its 10th anniversary, bluesign has goals, big goals, for the year, including 100 percent growth and opening a hub in Hong Kong. Waeber and his small team will collect a lot of frequent flyer miles to get there since partners, supporters and members don't just sign papers to join. bluesign, with a vision that reads "one world -- one standard," must in fact do lengthy inspections and analysis on-site at each potential partner and supporter, a process which can take up to a year, he said. When completed, the applicants get a thick report with recommendations for changes and a list of bad components or methods (black), a list of mediocre ones (gray) and a list of good ones (blue). Being a bluesign participant doesn't necessarily mean your company is perfect since the fact-finding systems (finder or guide) show what part of a supplier is good and what is not so good, literally grading the firm like a report card.
"It's a process," he said.
There is no way around this kind of detail because, as Waeber told SNEWS, "It would get around if it were bull."
With most of the world calling these types of practices "green," Waeber went with blue. He said blue is a more holistic color -- think of the blue sky and the blue sea, he said."
Green washing is not what we are all about," Waeber said. "We want to bring solutions on the table."
--Therese IknoianSNEWS® View: Certainly, bluesign is a business since companies pay for the report cards and screening, but in the end the process is obsessively detailed and will give all segments of the supply chain better information when they make choices. Although addressing the textile chain, such an organization -- if not different divisions of bluesign in the future -- could certainly address other segments, from hardgoods such as stoves to the likes of fitness equipment -- the manufacturing to pour steel and form plastics can't be great for our environment. With the forward-thinking and long-term thinking, bluesign could be paving the way for a more environmentally sound planet for our children and their children. --SNEWS® Editors
bluesign, he patiently explained while flanked by representatives from MEC and two suppliers, is a Swiss company dedicated to addressing health and safety atrocities throughout the entire textile manufacturing and selling chain. He has been establishing its plan and making industry contacts at bluesign since 2000, a demonstration of his trademark Swiss patience, thoroughness and, in this case, confidence.
"It's a slow process," he told SNEWS® at that time. Waeber knew bluesign's time was coming.
"I have a vision and a mission," he said. "We had a vision to bring something easier to the market…. I know we can do it in a better way; however, it's not easy to motivate the chemical industry."
Time is now
Twelve months later, bluesign's time has come. Companies are being motivated, difficult or not. bluesign has more than quadrupled its membership, albeit still only 10 brands; had a 50-percent stake in the company acquired in July 2008 by Swiss SGS (www.sgs.com), a 200-year-old inspection, verification, testing and certification company; and the "bluefinder," a database for its members of processes and chemicals, will be relaunched by March 2009.
But with no time to rest, Waeber trots the globe to push membership and support. He prowled the aisles at Outdoor Retailer Winter Market in January 2009, moving from meeting to meeting, and he received a Top 25 honor as a 2009 SNEWS Power Player (Click here to see his interview and photo in a Jan. 19, 2009, SNEWS story.) Always understated, Waeber paused a moment at the show to show an edge of a smile about the award, but quickly moved on to his next meeting -- and to continue work on bluesign's future that could change the world's environment.
"We have a lot of projects," he told SNEWS. "The companies that are now members realize and they also know sustainability isn't happening overnight.
"But it's happening," he said. "We can talk and talk and talk, but now we have to take action. I'm not pessimistic at all."
All action, not just talk
bluesign (www.bluesign.com), which Waeber spells using a lower case "b," tackles the problem of environmentally unfriendly manufacturing at its root, from air emission and waste water to chemical processes and components, using systems only a long-time textile scientist like Waeber -- but one with an environmental passion -- could create. Waeber is also a chemist and outdoor enthusiast who has studied economics. He has worked at various textile mills and, before starting bluesign, was the technical director and a member of the board at Schoeller Textil AG, also in Switzerland, where the concept was born.
Said Jeff Crook, product manager at MEC, who participated in the conference at ispo a year ago, "They're focused on solutions."
"The foundation of the system is economically sustainable," Crook said. "It has to be economically sustainable for everybody in the production chain."
Another participant, Roger Yeh, president of Everest Textile of Taiwan, put it more simply, "I trust Peter."
How it works
According to the company, the bluesign standard's five principles are:
>> resource productivity
>> consumer safety>> air emission
>> water emission
>> occupational health and safety
This "gives suppliers, manufacturers, retailers, brands and consumers the good feeling of having done everything possible for the environment, health and safety," a company statement said.
There are various components -- all rather precise albeit a bit complicated -- designed to link closely the manufacturing and selling chain, create buy-in from all sides, and give each a tool to find out more to operate in an environmentally friendlier way while also being more transparent and gaining more knowledge about others in the chain.
First, there are three levels of participants:
>> Supporters are companies from the chemical and machine industry.
>> Partners are mills, manufacturers and converters.
>> Members (also known as users) are brands and retailers.
The most recent members are REI, which announced its membership on Jan. 20 and Deuter on Jan. 31. Others include Patagonia and MEC, both of which were the first, joining in May 2007; The North Face, Vaude, Helly Hansen, Hagloefs, Eileen Fisher and Boardroom/Eco Apparel.
Then, there are three systems provided by bluesign for information and transparency:
>> bluetool, a source of information for the chemical industry.
>> bluefinder, the guide for manufacturers to source better materials and mills.
>> blueguide, still in development, a tool for all member brands and retailers to help them choose better environmental sources.
Only a year away from celebrating its 10th anniversary, bluesign has goals, big goals, for the year, including 100 percent growth and opening a hub in Hong Kong. Waeber and his small team will collect a lot of frequent flyer miles to get there since partners, supporters and members don't just sign papers to join. bluesign, with a vision that reads "one world -- one standard," must in fact do lengthy inspections and analysis on-site at each potential partner and supporter, a process which can take up to a year, he said. When completed, the applicants get a thick report with recommendations for changes and a list of bad components or methods (black), a list of mediocre ones (gray) and a list of good ones (blue). Being a bluesign participant doesn't necessarily mean your company is perfect since the fact-finding systems (finder or guide) show what part of a supplier is good and what is not so good, literally grading the firm like a report card.
"It's a process," he said.
There is no way around this kind of detail because, as Waeber told SNEWS, "It would get around if it were bull."
With most of the world calling these types of practices "green," Waeber went with blue. He said blue is a more holistic color -- think of the blue sky and the blue sea, he said."
Green washing is not what we are all about," Waeber said. "We want to bring solutions on the table."
--Therese IknoianSNEWS® View: Certainly, bluesign is a business since companies pay for the report cards and screening, but in the end the process is obsessively detailed and will give all segments of the supply chain better information when they make choices. Although addressing the textile chain, such an organization -- if not different divisions of bluesign in the future -- could certainly address other segments, from hardgoods such as stoves to the likes of fitness equipment -- the manufacturing to pour steel and form plastics can't be great for our environment. With the forward-thinking and long-term thinking, bluesign could be paving the way for a more environmentally sound planet for our children and their children. --SNEWS® Editors
Monday, February 2, 2009
State of Green Business 2009: Green is Growing, But Not Fast Enough
OAKLAND, Calif. -- The second annual State of Green Business Report, created by Joel Makower and the editors of GreenBiz.com, looks at hard data behind 20 indicators to find out just how well companies are doing on addressing environmental issues.
Green business activity has continued to grow, even during a down economy, but the aggregate environmental progress being made is marginal, according to a new report, titled "State of Green Business 2009," the second annual report of its kind published by GreenBiz.com.
The State of Green Business shows that companies are making progress on only a handful of the 20 measures of performance investigated. In some areas, such as in the case of climate change, company commitments and achievements are failing to stem the overall rise of carbon emissions.
"This year's update is a mixed bag of encouraging and discouraging news," says Joel Makower, executive editor of GreenBiz.com and the report's principal author. "But on balance, despite a growing chorus of corporate commitments and actions, we're less optimistic that these activities, in aggregate, are addressing planetary problems at sufficient scale and speed.
"The report found many reasons for optimism, according to the authors. Green building is on the rise, spurring new technologies that save energy and money while creating more healthful workplaces. There is a green race taking place in the automobile industry, with every major manufacturer planning to introduce electric vehicles. The leading consumer product makers and retailers are starting to rigorously assess the environmental impact of their products using sophisticated metrics, sending signals up the supply chain that tomorrow's products will need to hew to higher levels of environmental responsibility.
The report marks the second year of the GreenBiz Index, a set of 20 indicators of U.S. business environmental progress. They include macroeconomic measures, such as carbon emissions, toxic releases, packaging materials, and paper use per unit of gross domestic product, as well as the fuel efficiency of corporate vehicle fleets, construction of green office space, investments in cleantech, and the financial costs of companies' environmental impacts.
Among the findings:
• Greenhouse gas emissions in the United States rose in 2007 by 1.4 percent in absolute terms over 2006, but shrank 0.6 percent in intensity -- that is, when measured as a percentage of gross domestic product (GDP). That's the smallest annual decrease since 2002, when intensity improved 0.4 percent.
• U.S. patents for clean-energy technologies -- wind, fuel cells, hydroelectric, tidal, and geothermal -- in 2008 were at their highest level in seven years.
• Americans are continuing their love affair with the car, and appear unwilling to give up their vehicles for the solo commute to work. Since a high of 77.8 percent in 2003, the number of solo commuters has inched down slowly to 76.1 percent in 2007.
• American industry has been doing more with less energy for decades. The amount of energy required -- in the form of electricity and fuel -- per dollar of GDP has dropped more than 75 percent since 1950.• The growth of certified green buildings, which for years had been growing from 10 to 90 percent, slowed dramatically in 2008.
• Generation of non-hydro renewable energy -- including solar, wind, and biomass -- grew nearly 7 percent in 2007 from the year before, outpacing the 2.3 percent annual growth in all electricity generation during the same period.
• The packaging intensity of the economy -- the aluminum, plastics, cardboard, and other materials used per dollar of GDP -- continued to decline slightly, as it has for the past several years.
• Over the past decade, the amount of paper used per dollar of GDP dropped by 27 percent and the amount of paper recycled rose -- also by 27 percent.
• Over the past 18 years, disposal and release of chemicals by U.S. companies decreased by 1.77 billion pounds, or 59 percent.
The report also includes the top 10 green business trends of 2007. They include the rise of energy efficiency in commercial buildings; the emergence of water as "the new carbon"'; the growth of college curricula on environmental management; growing company efforts to push environmental thinking to the rank and file; the failings of green marketing to captivate consumers; and the increased use by companies of such green design principles as green chemistry and biomimicry
Green business activity has continued to grow, even during a down economy, but the aggregate environmental progress being made is marginal, according to a new report, titled "State of Green Business 2009," the second annual report of its kind published by GreenBiz.com.
The State of Green Business shows that companies are making progress on only a handful of the 20 measures of performance investigated. In some areas, such as in the case of climate change, company commitments and achievements are failing to stem the overall rise of carbon emissions.
"This year's update is a mixed bag of encouraging and discouraging news," says Joel Makower, executive editor of GreenBiz.com and the report's principal author. "But on balance, despite a growing chorus of corporate commitments and actions, we're less optimistic that these activities, in aggregate, are addressing planetary problems at sufficient scale and speed.
"The report found many reasons for optimism, according to the authors. Green building is on the rise, spurring new technologies that save energy and money while creating more healthful workplaces. There is a green race taking place in the automobile industry, with every major manufacturer planning to introduce electric vehicles. The leading consumer product makers and retailers are starting to rigorously assess the environmental impact of their products using sophisticated metrics, sending signals up the supply chain that tomorrow's products will need to hew to higher levels of environmental responsibility.
The report marks the second year of the GreenBiz Index, a set of 20 indicators of U.S. business environmental progress. They include macroeconomic measures, such as carbon emissions, toxic releases, packaging materials, and paper use per unit of gross domestic product, as well as the fuel efficiency of corporate vehicle fleets, construction of green office space, investments in cleantech, and the financial costs of companies' environmental impacts.
Among the findings:
• Greenhouse gas emissions in the United States rose in 2007 by 1.4 percent in absolute terms over 2006, but shrank 0.6 percent in intensity -- that is, when measured as a percentage of gross domestic product (GDP). That's the smallest annual decrease since 2002, when intensity improved 0.4 percent.
• U.S. patents for clean-energy technologies -- wind, fuel cells, hydroelectric, tidal, and geothermal -- in 2008 were at their highest level in seven years.
• Americans are continuing their love affair with the car, and appear unwilling to give up their vehicles for the solo commute to work. Since a high of 77.8 percent in 2003, the number of solo commuters has inched down slowly to 76.1 percent in 2007.
• American industry has been doing more with less energy for decades. The amount of energy required -- in the form of electricity and fuel -- per dollar of GDP has dropped more than 75 percent since 1950.• The growth of certified green buildings, which for years had been growing from 10 to 90 percent, slowed dramatically in 2008.
• Generation of non-hydro renewable energy -- including solar, wind, and biomass -- grew nearly 7 percent in 2007 from the year before, outpacing the 2.3 percent annual growth in all electricity generation during the same period.
• The packaging intensity of the economy -- the aluminum, plastics, cardboard, and other materials used per dollar of GDP -- continued to decline slightly, as it has for the past several years.
• Over the past decade, the amount of paper used per dollar of GDP dropped by 27 percent and the amount of paper recycled rose -- also by 27 percent.
• Over the past 18 years, disposal and release of chemicals by U.S. companies decreased by 1.77 billion pounds, or 59 percent.
The report also includes the top 10 green business trends of 2007. They include the rise of energy efficiency in commercial buildings; the emergence of water as "the new carbon"'; the growth of college curricula on environmental management; growing company efforts to push environmental thinking to the rank and file; the failings of green marketing to captivate consumers; and the increased use by companies of such green design principles as green chemistry and biomimicry
Ten Steps to Sustainable Marketing in an Uncertain Economy
There's a standard journalistic trope that abounds during times of crisis: take the hot topic du jour, mash it up with something you know about, and you've got an instant article. For example: "Peanut Butter Preferences during a Global Recession," or "Sparrow Migration Patterns during the 2008 Wall Street Collapse.
"Now, after nearly a decade of build-up, sustainability and "green" were the issues du jour for much of 2007 and 2008; but with the recent market crash, the national dialogue has turned more toward keeping a roof over your head than keeping a green roof over your head. So what's a sustainable brand to do? Here are a few strategies to keep you afloat during these tumultuous times.
1. First, take pride in your sustainable brand, and know that there's a strong core of people out there who still care about sustainability and who will continue to care.
2.: If you're a "core" brand with true sustainability cred, you'll do just fine, and you'll probably even outperform the market at large. If you were just greenwashing, then now would be a good time to stop; the mass market is more concerned with "value" than with values at a time like this (no matter what they might claim on a survey), and the people who were just chasing the green trends will fall away as their 401ks collapse.
3. Be socially responsible. Talk about it. Be more socially responsible than ever. Talk about it even more.
4. Anticipate growing anti-consumption attitudes, and focus on offering a quality experience.
5. That said, affordable luxuries and "guilty" escapist pleasures will thrive in this environment, as they did during the Great Depression and every other economic downturn.
6. You've probably got less money to spend on marketing these days, but social networks are a powerful way to spread the word. Pay attention to digital outreach, and two-way communications within the digital space.
7. Don't condescend to people with heavy-handed "value" messaging,
8. Given that people will, realistically, have trouble affording you, be generous. Very generous.
9. Understand the deep roots of the sustainability movement. This will give you the deepest clues about what to do, how to express it, and what conscious consumers really want.
10.So think hard about what you're trying to sell. Question it from every angle, and ask yourself it it's truly necessary. Change is afoot.
"Now, after nearly a decade of build-up, sustainability and "green" were the issues du jour for much of 2007 and 2008; but with the recent market crash, the national dialogue has turned more toward keeping a roof over your head than keeping a green roof over your head. So what's a sustainable brand to do? Here are a few strategies to keep you afloat during these tumultuous times.
1. First, take pride in your sustainable brand, and know that there's a strong core of people out there who still care about sustainability and who will continue to care.
2.: If you're a "core" brand with true sustainability cred, you'll do just fine, and you'll probably even outperform the market at large. If you were just greenwashing, then now would be a good time to stop; the mass market is more concerned with "value" than with values at a time like this (no matter what they might claim on a survey), and the people who were just chasing the green trends will fall away as their 401ks collapse.
3. Be socially responsible. Talk about it. Be more socially responsible than ever. Talk about it even more.
4. Anticipate growing anti-consumption attitudes, and focus on offering a quality experience.
5. That said, affordable luxuries and "guilty" escapist pleasures will thrive in this environment, as they did during the Great Depression and every other economic downturn.
6. You've probably got less money to spend on marketing these days, but social networks are a powerful way to spread the word. Pay attention to digital outreach, and two-way communications within the digital space.
7. Don't condescend to people with heavy-handed "value" messaging,
8. Given that people will, realistically, have trouble affording you, be generous. Very generous.
9. Understand the deep roots of the sustainability movement. This will give you the deepest clues about what to do, how to express it, and what conscious consumers really want.
10.So think hard about what you're trying to sell. Question it from every angle, and ask yourself it it's truly necessary. Change is afoot.
Americans Believe Green Investing is Poised for a 'Golden Age': Survey
NEW YORK, N.Y. -- Heightened support from the Obama Administration and the new Congress on environmental issues, strong green elements in the proposed stimulus and anticipated regulatory changes are fueling optimism for green investment, according to Allianz Global Investors.
That's the assessment of results from the latest survey of American investors for the asset management firm, which says Amercians see a "golden age" coming for green investing.
In addition to expecting broad policy change from Washington, D.C., investors are increasingly perceiving firms that seek to address environmental issues as strong investment opportunities, the company said.
"The need for pollution control, clean water and energy efficiency is not going away," Brian Gaffney, managing director and CEO of Allianz Global Investors Distributors, said in a statement. "Investors perceive there is real opportunity here and they want to capitalize on it."
Gaffney said investors' positive outlook on the environmental technology sector reflects their perception of the area as a long-term opportunity. "Investors understand that robust demand for innovation and solutions will fuel growth, and consequently profits, for years to come," he said.
The survey found:
• 78 percent of investors believe that the Obama Administration in its first year will produce more policy promoting business investment in the environment than the Bush Administration produced during its entire tenure
• 74 percent believe that the new Congress will more strongly support policy promoting business investment in environmental technology
• 97 percent believe that exploring alternative fuel sources remains important despite declining gas prices
• 91 percent believe that resolving environmental problems will be a major issue for years• 69 percent consider it important to look at investing in companies that capitalize on addressing those problems.
• 78 percent say environmental technology has the potential to be the "next great American industry," and 64 percent considered the sector to be the "most desirable" investment opportunity among 10 categories surveyed
• 72 percent contend that plunging stock prices have had no effect on their inclination to invest in environmental stocks• 48 percent say they are "at least somewhat likely" to invest in environmental companies this year
• 22 percent in 2008 made investments in firms capitalizing in environmental trends compared to the 17 percent who reported doing so in 2007
The survey also found that 52 percent believe the Dow Jones Industrial Average will be higher a year from now than it is today. And 58 percent of the respondents said they think Europe is ahead of the U.S. in trying to tackle the problems — an aspect that could spur investors' interests in American firms engaged in environmental issues.
The survey polled 1,264 adults from December 12 to 19, 2008. GfK Roper Public Affairs & Media, a division of GfK Custom Research North America, conducted the survey over the Internet for Allianz Global Investors.
Participants were required to be at least 25 years old and have primary or shared responsibility for investment decisions in households with financial assets of at least $100,000. The survey conducted December 14-20, 2007 tallied responses from 1,003 completed interviews.
That's the assessment of results from the latest survey of American investors for the asset management firm, which says Amercians see a "golden age" coming for green investing.
In addition to expecting broad policy change from Washington, D.C., investors are increasingly perceiving firms that seek to address environmental issues as strong investment opportunities, the company said.
"The need for pollution control, clean water and energy efficiency is not going away," Brian Gaffney, managing director and CEO of Allianz Global Investors Distributors, said in a statement. "Investors perceive there is real opportunity here and they want to capitalize on it."
Gaffney said investors' positive outlook on the environmental technology sector reflects their perception of the area as a long-term opportunity. "Investors understand that robust demand for innovation and solutions will fuel growth, and consequently profits, for years to come," he said.
The survey found:
• 78 percent of investors believe that the Obama Administration in its first year will produce more policy promoting business investment in the environment than the Bush Administration produced during its entire tenure
• 74 percent believe that the new Congress will more strongly support policy promoting business investment in environmental technology
• 97 percent believe that exploring alternative fuel sources remains important despite declining gas prices
• 91 percent believe that resolving environmental problems will be a major issue for years• 69 percent consider it important to look at investing in companies that capitalize on addressing those problems.
• 78 percent say environmental technology has the potential to be the "next great American industry," and 64 percent considered the sector to be the "most desirable" investment opportunity among 10 categories surveyed
• 72 percent contend that plunging stock prices have had no effect on their inclination to invest in environmental stocks• 48 percent say they are "at least somewhat likely" to invest in environmental companies this year
• 22 percent in 2008 made investments in firms capitalizing in environmental trends compared to the 17 percent who reported doing so in 2007
The survey also found that 52 percent believe the Dow Jones Industrial Average will be higher a year from now than it is today. And 58 percent of the respondents said they think Europe is ahead of the U.S. in trying to tackle the problems — an aspect that could spur investors' interests in American firms engaged in environmental issues.
The survey polled 1,264 adults from December 12 to 19, 2008. GfK Roper Public Affairs & Media, a division of GfK Custom Research North America, conducted the survey over the Internet for Allianz Global Investors.
Participants were required to be at least 25 years old and have primary or shared responsibility for investment decisions in households with financial assets of at least $100,000. The survey conducted December 14-20, 2007 tallied responses from 1,003 completed interviews.
New Tool Devised to Measure Corporate Water Footprint
THETFORD CENTER, Vt. -- The nonprofit Center for Sustainable Innovation has come up with a resource that enables companies to measure their water footprint.
The tool called the "Corporate Water Gauge" is valuable, its creators say, because it takes into account corporate water consumption as well as the impact of usage on water supplies, the population sharing them, the geographic location, topography and watershed boundaries.
The tool is the result of a three-year research and development effort to "make triple bottom line measurement and reporting a reality," said CSI's Executive Director Mark W. McElroy.
"Given the increasing urgency of conserving and carefully managing rapidly declining freshwater resources on Earth, this is a management tool whose time has come."
Businesses can use the resource to assess water consumption and its environmental and social effects at a single facility, at all corporate sites or any subset of them, according to the center. The tool uses "sustainability quotients" to take measurements. More details are available here.
The Center for Sustainable Innovation, founded in 2004, works to develop advanced approaches for measuring and reporting the social and environmental sustainability performance of organizations. The center also devises tools and methods to enable triple bottom line management.
The tool called the "Corporate Water Gauge" is valuable, its creators say, because it takes into account corporate water consumption as well as the impact of usage on water supplies, the population sharing them, the geographic location, topography and watershed boundaries.
The tool is the result of a three-year research and development effort to "make triple bottom line measurement and reporting a reality," said CSI's Executive Director Mark W. McElroy.
"Given the increasing urgency of conserving and carefully managing rapidly declining freshwater resources on Earth, this is a management tool whose time has come."
Businesses can use the resource to assess water consumption and its environmental and social effects at a single facility, at all corporate sites or any subset of them, according to the center. The tool uses "sustainability quotients" to take measurements. More details are available here.
The Center for Sustainable Innovation, founded in 2004, works to develop advanced approaches for measuring and reporting the social and environmental sustainability performance of organizations. The center also devises tools and methods to enable triple bottom line management.
Special Report - Part 1: On Your Mark -- Protect trademarks from being slaughtered by 'genericide'
Protecting a brand trademark from becoming part of the common vernacular isn't an issue just for large corporations like Kleenex and Xerox. In the first installment of a special two-part report, SNEWS® examines how outdoor industry companies also must navigate the turbulent waters of brand trademarks to protect them from becoming generic terms, also known as "genericide." In Part 2, available next week, we offer feedback from trademark experts about strategies that companies can take to protect their marks.
When The Today Show's bright lights shine down on your product, it can be a blessing and a curse. The folks at GU, an energy gel brand, were no doubt thrilled when host Natalie Morales interviewed nutritionist Madely Fernstrom on foods for runners and talk turned to energy gels. The media exposure can spark huge sales. But then, Fernstrom swept her hand over gel packets from several companies and said, "The endurance athlete needs to have these little gu's," implying that GU is a generic term for all energy gels. This is where the blessing can become a curse.
When a brand name is used as a generic term, this contributes to "genericide." With genericide, a product name loses its trademark rights because it's no longer identified with a specific company. Well-known brand names such as Thermos and Scotch Tape lost their exclusive trademark status when they became part of our everyday lingo.
Did You Know?...
Band-Aid protected its trademark by adding the word "Brand" to its jingle. "I am stuck on Band-Aid Brand, 'cause Band-Aid's stuck on me."
Cellophane lost its trademark status in 1936. Think that's old? Linoleum lost its trademark in 1878.
Aspirin was a term trademarked by the German company Bayer in 1899. After World War I, Bayer lost many of its assets and was unable to prevent similar products from entering the market. Bayer’s patent expired in 1917, and in 1921 a court ruled that aspirin had become generic.
Most of us are guilty of contributing to genericide -- exchanging "thermos" for "vacuum-sealed container" or "google" rather than "use a search engine." Each time a brand name is used as a generic term, violators are doing possible harm to its trademark status.
Of course, genericide does not happen easily. A competitor of GU or Google would have to prove in court that those brand names had lost their unique identity. While these companies have not yet faced a challenge to their trademarks, outdoor companies are not immune to generecide, and plenty of brands get thrown around as common terms.
Just think about Gore-Tex. The vast majority of salespeople in outdoor specialty stores have seen customers walk into the shop and say, "Do you have Gore-Tex jackets?" Ten years ago -- but to a lesser extent today -- shoppers thought Gore-Tex was an apparel brand rather than a waterproof/breathable membrane that is used by many brands. And there's a danger in that. If the general public does not understand the true nature of a brand, and is not able to connect a trademark name with a particular company, the trademark is at risk. To its credit, W.L. Gore & Associates has worked diligently and succeeded in protecting its Gore-Tex brand. But others have not been so fortunate.
Consider what happened to Thermos. In a 1947 court case (King Seeley v. Alladin Indus. Inc.), King Seeley actually lost its exclusive right to use the term "Thermos" because it had become a generic term for vacuum-sealed bottles.
A British company, A.G. Gutman, registered the Thermos trademark in 1907, and that year the patent was acquired by the American Thermos Bottle Company in Brooklyn, N.Y. By 1910, the company was touting in its catalogs that Thermos had become a household word. In 1958, Alladin Industries announced that it would begin marketing its own vacuum bottles using the word "thermos." Alladin and King Seeley (which had acquired American Thermos) went to court over the issue, and in 1962 a judge ruled that thermos was indeed a generic term. King Seeley was allowed to retain its Thermos trademark, but it lost exclusive rights to the term. The judge said to avoid confusion in the market Alladin could not use the word unless it was coupled with the Alladin trademark. While Thermos has remained a strong brand, the court decision no doubt hurt its efforts to own the market for vacuum-sealed bottles.
Protecting the mark
As W.L. Gore watched its Gore-Tex brand become synonymous with waterproof/breathable apparel, it established a strategy to further differentiate itself in the market and educate retailers and consumers about how it was different from other technologies. In 1990, W.L. Gore launched its "Guaranteed to Keep You Dry" program in which it certified that products containing Gore-Tex performed properly.
"This was important in our history of making sure we didn't have what's called a 'naked trademark,' which is something that's out there but doesn't stand for anything," said Steve Shuster, global brand manager of W.L. Gore. "A key strategy in building value or equity in a trademark was not just supplying the fabric, but making sure the end item would meet or exceed consumer expectations. I think this is a key part of our strategy that helped distinguish the trademark and the brand Gore-Tex.
"GU also devotes much time to teaching consumers about its product, so that they'll understand that GU is a specific brand within the energy gel category. "We're out in the field quite a bit at marathon and triathlon expos, and we talk to people continuously," said Holly Bennett, senior marketing manager. "At a lot of events, you see people who think all gels are GU or that it's a generic product. We set up tastings, and right off the bat, they notice the difference. And we do a lot of explaining about the ingredients and how the brand was created."
Shuster recommended that a company should make sure that everyone who comes into contact with a brand -- from the manufacturer's employees to retailers to consumers -- understands the trademark brand.
Despite best efforts, companies cannot completely prevent the public from using a brand name as a sort of shorthand. Folks simply find it easier to say the word CamelBak rather than an awkward phrase like hydration system, or say Xerox rather than photocopy. No company can completely control this behavior. But the outdoor industry -- specifically retailers -- should be careful to not confuse people further. A member of the SNEWS® team once walked into an outdoor store and saw a round rack of apparel topped with a sign that read "Gore Tex Jackets." Never mind that the rack held jackets made with non-Gore waterproofing technologies. W.L. Gore is of course constantly addressing such challenges.
"In the last three to five years, we have invested heavily in a retail team that spends time at point of sale, not only training and educating, but making sure that signage and supporting POS is consistent with the brand and who we are," said Shuster.
W.L. Gore also educates its employees on proper use of the company's trademark. "We spend a considerable amount of time with our associates ensuring that they understand the value of the Gore-Tex trademark and brand, and that we need to use it correctly. And then we work with our (manufacturer) partners to make sure we distinguish the mark." One strategy is to place Gore-Tex hangtags on apparel and footwear to explain that it is one component of the product.
While companies must educate people and draw distinctions from competitors, a couple of other major issues come into play in determining whether or not a trademark is generic.
- Uniqueness – The trademark must be unique or fanciful enough that consumers don't confuse it with similar products by other companies. For example, the Kodak brand name is so unusual that even when you use Kodak as a generic term or adjective, as in, "Hey, this is a Kodak moment," you still know that Kodak refers to a specific brand of film from a certain company. But, you'd have a much tougher time retaining a trademark for Joe's Bar, which could refer to a hundred watering holes. A major piece of trademark law, the Lanham Act of 1946, stated "any common descriptive word of any article" cannot be registered as a trademark name.
- Company diligence – A company must diligently work to prevent its trademark from being hijacked into common usage. Methods include communicating with those who use it generically, such as media, to tell them to stop the practice. Retailers too should be aware of what to do or not -- and be diligent -- when they use trademarked company names.
2008 Outdoor Sales Gain 5% Despite December Decline
Outdoor sales for the entire year in all three core outdoor store channels (chain, internet, specialty)* totaled $5.2B, a 5% gain over 2007, according to the most recent edition of The Outdoor Industry Association (OIA) Outdoor Topline Report, produced for OIA by the Leisure Trends Group. For the entire year, internet stores and chain stores grew a healthy 18% and 7% respectively, while specialty stores were down 2% in dollars.
December Decline
According to The OIA Outdoor Topline Report, December retail sales for all core outdoor stores (chain, internet, specialty)* fell 1% in dollars ($1,078,598,888) compared to December 2007 ($1,094,277,086). All declines came from specialty stores, which lost 10% in dollar sales for the month. Positively, chain and internet stores both saw dollar sales increase; chains grew 7% and internet retailers were up 13%.
Christmas was tough for retailers across the country, as retail sales fell by record amounts and retailers big and small shuttered doors coast to coast. According to the U.S. Commerce Department, total retail sales fell 2.7% in December, more than double the anticipated decline of 1.2%. Although the outdoor industry felt the effects of a tough Christmas season along with the rest of the country, results were better than most industries, a cause for cautious optimism heading into 2009.
Specialty Bright Spots
Although overall sales were down slightly for specialty in 2008, many categories emerged as clear winners in a tough year. Winter boots, fueled entirely by women’s styles, were up 11% in full-year dollar sales. Woman-specific sportswear categories such as dresses, skirts and sports bras were also good sellers. Other footwear and apparel categories with strong growth included softshell tops, casual shoes, trail running shoes and multisport shoes.
The hands-on hydration category, which consists mainly of water bottles, was on fire in 2008, refusing to slow down after huge growth in 2007. With environmental and health concerns continuing to shape the category and fuel product innovation, this growth is expected to continue in 2009.
A renewed interest in economical, close-to-home vacations helped fuel sales of camping-related items in specialty stores this year. Sales of items such as tents (+2%), sleeping bags (+3%), camp stoves(+4%) , climbing gear (+3%), water purification (+11%), mattresses (+2%) and miscellaneous camp accessories (tent accessories +28%, sleeping bag accessories +7%, pack accessories +4%) all benefitted, each outpacing 2007 dollar sales.
Online Skyrockets
Online sales totaled $973M in 2008, grew 18% and fueled a significant amount of buzz in the outdoor industry. Black Monday was on December 1 this year, and the dollar sales that would have been in November gave a boost to December sales, contributing to the 13% dollar growth for the channel as a whole. Combining November and December together to include the entire holiday season, 2008 came out 7% ahead of 2007 in dollar sales. In December, Internet sales were up in all four major categories. Equipment was up 18% in dollar sales, equipment accessories were up 10%, apparel was up 8%. Footwear was up 40% in dollars on the strength of winter boots. Winter boots grew 73% in dollars from last December.
Chain Sales Strong
All Chain dollar sales were up 7% both in December and for the entire year while average retail prices saw nearly across-the-board declines for both periods. In December, retail prices for the entire channel declined 4% and nearly every category saw prices drop. Smaller and lower price-point items such as equipment accessories and apparel accessories saw especially strong growth, but every major category increased dollar sales in December as consumers took advantage of good deals and sales. Holiday sales and cold weather may well have been the catalysts for the growth in dollar sales in December. Combining November and December to include the entire holiday season, all chain dollar sales dropped 1% compared to the same period in 2007.
December Decline
According to The OIA Outdoor Topline Report, December retail sales for all core outdoor stores (chain, internet, specialty)* fell 1% in dollars ($1,078,598,888) compared to December 2007 ($1,094,277,086). All declines came from specialty stores, which lost 10% in dollar sales for the month. Positively, chain and internet stores both saw dollar sales increase; chains grew 7% and internet retailers were up 13%.
Christmas was tough for retailers across the country, as retail sales fell by record amounts and retailers big and small shuttered doors coast to coast. According to the U.S. Commerce Department, total retail sales fell 2.7% in December, more than double the anticipated decline of 1.2%. Although the outdoor industry felt the effects of a tough Christmas season along with the rest of the country, results were better than most industries, a cause for cautious optimism heading into 2009.
Specialty Bright Spots
Although overall sales were down slightly for specialty in 2008, many categories emerged as clear winners in a tough year. Winter boots, fueled entirely by women’s styles, were up 11% in full-year dollar sales. Woman-specific sportswear categories such as dresses, skirts and sports bras were also good sellers. Other footwear and apparel categories with strong growth included softshell tops, casual shoes, trail running shoes and multisport shoes.
The hands-on hydration category, which consists mainly of water bottles, was on fire in 2008, refusing to slow down after huge growth in 2007. With environmental and health concerns continuing to shape the category and fuel product innovation, this growth is expected to continue in 2009.
A renewed interest in economical, close-to-home vacations helped fuel sales of camping-related items in specialty stores this year. Sales of items such as tents (+2%), sleeping bags (+3%), camp stoves(+4%) , climbing gear (+3%), water purification (+11%), mattresses (+2%) and miscellaneous camp accessories (tent accessories +28%, sleeping bag accessories +7%, pack accessories +4%) all benefitted, each outpacing 2007 dollar sales.
Online Skyrockets
Online sales totaled $973M in 2008, grew 18% and fueled a significant amount of buzz in the outdoor industry. Black Monday was on December 1 this year, and the dollar sales that would have been in November gave a boost to December sales, contributing to the 13% dollar growth for the channel as a whole. Combining November and December together to include the entire holiday season, 2008 came out 7% ahead of 2007 in dollar sales. In December, Internet sales were up in all four major categories. Equipment was up 18% in dollar sales, equipment accessories were up 10%, apparel was up 8%. Footwear was up 40% in dollars on the strength of winter boots. Winter boots grew 73% in dollars from last December.
Chain Sales Strong
All Chain dollar sales were up 7% both in December and for the entire year while average retail prices saw nearly across-the-board declines for both periods. In December, retail prices for the entire channel declined 4% and nearly every category saw prices drop. Smaller and lower price-point items such as equipment accessories and apparel accessories saw especially strong growth, but every major category increased dollar sales in December as consumers took advantage of good deals and sales. Holiday sales and cold weather may well have been the catalysts for the growth in dollar sales in December. Combining November and December to include the entire holiday season, all chain dollar sales dropped 1% compared to the same period in 2007.
Snow Sports Market Sees First Decline in Sales According to SIA Report
MCLEAN, Va. --The snow sports market contracted for the first time this season as recession-conscious holiday shoppers spent fewer dollars. "According to the Census Bureau the rest of retail trade is down 11% so considering that, the snow sports market is weathering this economic downturn fairly well," said Kelly Davis SIA's Director of Research. Overall, the snow sports market declined 1.5% in total dollars compared to August through December 2007 to $1.875 billion. Hardest hit was the alpine equipment category where current model ski sales were down 17% over last season. One bright spot in the alpine equipment category was the continuation of strong sales of twin tip and fat skis (80-95mm waist width). The snowboard category declined 5% in boards, boots and bindings. Overall apparel was down 3% but snowboard apparel, shell parkas and fleece sales remained strong and another surprising increase of more than 20% in adult one-piece suits shored up the market. Accessories continued to sell well and sales were up 4%, particularly hats, gloves, and wax that many skiers and riders purchased at resort shops.
The equipment category declined 4% in dollars overall with the deepest loss in alpine ski and equipment sold in chain stores. Alpine ski sales, particularly current year models, declined 17% over last season even while twin tips and fat skis were selling well. The biggest loser in the alpine ski category was the mid-fat ski (70-79mm waist width) category; flat mid-fat skis were down 45% and mid-fat systems were down 14%. Alpine boots and bindings sales were about even with last season sales and current year models are selling well. Snowboards, snowboard boots, and snowboard bindings sales declined 5% season over season but reverse camber boards continue to sell extremely well. Nordic equipment sales declined 2% in dollars and 7% in units even though Alpine Touring Equipment sales soured 23% to $4.6 million.
Apparel sales accounted for more than 40% of all dollars spent overall in the snow sports market. Fleece continues to be the big seller in the apparel market with $170 million in sales, which was flat compared to Aug-Dec sales last season. Adult shell parkas sales increased 5% season and snowboard apparel continued to sell well but increased just 1% compared to last season. The hottest apparel trend is the surprisingly strong sales of apparel suits, for both adults and kids. More than 70,000 adult suits have been sold so far this season for a 20% increase in dollars sold, and sales of juniors suits are up 21% in dollars sold. Overall, expect to see about 125,000 new one-piece suits on the slopes.
Accessories sales were excellent as skiers and snowboarders picked up the necessities before hitting the slopes. Strong sales of new hats, gloves, goggles and wax helped the accessories market increase by 4% over this time last season.
Dollars Aug-Dec 2007 to Aug-Dec 2008 Units Aug-Dec 2007 to Aug-Dec 2008 Total Dollars
Total Market -1.26 2.25% $1,875,578,347
Specialty Shops -4.89% -3.63% 1,108,214,294
Chain Stores -1.59% 4.03% $391,287,421
Internet/Catalog 11.67% 22.90% $376,076,632
The Internet channel enjoyed strong growth in December, gaining 12% in dollars and 23% in units compared to August to December 2007. Overall, consumers spent $376 million on snow sports equipment, apparel, and accessories online. Internet sales comprised 20% of all the dollars consumers spent on snow sports products in the U.S. between August 1 and December 31, 2008.
The specialty channel was hit hardest by declining sales in December. The specialty market declined 5% in dollars. Specialty shops were responsible for $1.1 million of the 1.9 million in total sales (includes specialty shops, chain stores, and online sales) for the snow sports marketplace August through December 2008. Consumers still prefer to buy their equipment in specialty shops. In fact, 76% of alpine equipment, 73% of Nordic gear, and 63% of all snowboard equipment was sold in specialty shops so far this season.
Chain stores' equipment sales continue to tank with total decreases of 16% in dollars and 14% in units. Alpine ski sales are down 20% and snowboard equipment sales decreased 18%. Chain stores equipment sales accounted for just 16% of all equipment sales in the U.S. snow sports marketplace from August to December. Apparel sales made up almost half of all chain store snow sports sales August through December 2008.
The market data presented in this report comes from the SIA Retail Audit conducted by the Leisure Trends Group. Each season, Leisure Trends gathers data between August 1 and March 31 from a representative panel of more than 1,200 snow sports retailers who provide sales data directly from their Point of Sale systems. The panel and the method for extrapolating the results out to the entire industry is based on a triennial census of snow sports retailers designed to accurately define the size and structure of the snow sports retail marketplace.
The equipment category declined 4% in dollars overall with the deepest loss in alpine ski and equipment sold in chain stores. Alpine ski sales, particularly current year models, declined 17% over last season even while twin tips and fat skis were selling well. The biggest loser in the alpine ski category was the mid-fat ski (70-79mm waist width) category; flat mid-fat skis were down 45% and mid-fat systems were down 14%. Alpine boots and bindings sales were about even with last season sales and current year models are selling well. Snowboards, snowboard boots, and snowboard bindings sales declined 5% season over season but reverse camber boards continue to sell extremely well. Nordic equipment sales declined 2% in dollars and 7% in units even though Alpine Touring Equipment sales soured 23% to $4.6 million.
Apparel sales accounted for more than 40% of all dollars spent overall in the snow sports market. Fleece continues to be the big seller in the apparel market with $170 million in sales, which was flat compared to Aug-Dec sales last season. Adult shell parkas sales increased 5% season and snowboard apparel continued to sell well but increased just 1% compared to last season. The hottest apparel trend is the surprisingly strong sales of apparel suits, for both adults and kids. More than 70,000 adult suits have been sold so far this season for a 20% increase in dollars sold, and sales of juniors suits are up 21% in dollars sold. Overall, expect to see about 125,000 new one-piece suits on the slopes.
Accessories sales were excellent as skiers and snowboarders picked up the necessities before hitting the slopes. Strong sales of new hats, gloves, goggles and wax helped the accessories market increase by 4% over this time last season.
Dollars Aug-Dec 2007 to Aug-Dec 2008 Units Aug-Dec 2007 to Aug-Dec 2008 Total Dollars
Total Market -1.26 2.25% $1,875,578,347
Specialty Shops -4.89% -3.63% 1,108,214,294
Chain Stores -1.59% 4.03% $391,287,421
Internet/Catalog 11.67% 22.90% $376,076,632
The Internet channel enjoyed strong growth in December, gaining 12% in dollars and 23% in units compared to August to December 2007. Overall, consumers spent $376 million on snow sports equipment, apparel, and accessories online. Internet sales comprised 20% of all the dollars consumers spent on snow sports products in the U.S. between August 1 and December 31, 2008.
The specialty channel was hit hardest by declining sales in December. The specialty market declined 5% in dollars. Specialty shops were responsible for $1.1 million of the 1.9 million in total sales (includes specialty shops, chain stores, and online sales) for the snow sports marketplace August through December 2008. Consumers still prefer to buy their equipment in specialty shops. In fact, 76% of alpine equipment, 73% of Nordic gear, and 63% of all snowboard equipment was sold in specialty shops so far this season.
Chain stores' equipment sales continue to tank with total decreases of 16% in dollars and 14% in units. Alpine ski sales are down 20% and snowboard equipment sales decreased 18%. Chain stores equipment sales accounted for just 16% of all equipment sales in the U.S. snow sports marketplace from August to December. Apparel sales made up almost half of all chain store snow sports sales August through December 2008.
The market data presented in this report comes from the SIA Retail Audit conducted by the Leisure Trends Group. Each season, Leisure Trends gathers data between August 1 and March 31 from a representative panel of more than 1,200 snow sports retailers who provide sales data directly from their Point of Sale systems. The panel and the method for extrapolating the results out to the entire industry is based on a triennial census of snow sports retailers designed to accurately define the size and structure of the snow sports retail marketplace.
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