Exhibitors were prepped for the worst, fearing, as many told SNEWS® in the weeks leading up to Outdoor Retailer Winter Market, that given the state of the economy, the show might resemble the infamous foray into Anaheim, Calif., where you could toss a bowling ball down the aisles and not hit a single retailer. And, indeed, when the show opened on Jan. 22, there was a hush over the floor. Traffic was light -- not bowling alley light -- but light enough to have many exhibitors worried. By noon, fears abated for many as retailers began to pour in and fill the main aisles.
"Fortunately, we scheduled a lot of appointments. The first day of the show was noticeably down -- borderline eerie," Mike Hosey, president of Highgear USA, told us. "But the second day was much better. There is a cautious mood overall. Lots of businesses are being prudent; they want to be smart.
"On the whole, most exhibitors on the main floor, as well as numerous retailers our editorial team spoke with over the first three days of the show used words like positive vibe, substantive meetings, engaging, energetic and focused to describe the show mood. For many, it appears the lighter traffic eliminated the dodging through crowded aisles, and allowed retailers and exhibitors to enjoy more quality time.
"It's been a quality show," said Tommy Knoll, president of C.A.M.P. USA. "Outdoor Retailer shows are one data-point among many that we pay close attention to so as to be able to accurately access the market mood. Retailers and vendors who do not show up are not investing in networking and discovering market trends, and as a result, they are less able to build community either here or at home.
"Roody Rassmussen, president of Petzl America, told us on Saturday, "It's certainly a little softer crowd, but at the same time our appointments and booth have been full."
"In general, the show vibe was great. The retailers that are here are interested in sharing ideas and developing further synergies and leveraging partnerships," said Steve Bendzak, general manager for ExOfficio. "Our emphasis is at-once business, reiterating our spring promotions and reminding our retailers what further we can do to help them sell through."
Not surprisingly, those companies on the periphery or off the main floor, such as in the ballroom, did not enjoy the hoped for traffic as retailers appeared to, for the most part, stay focused on bigger and primary brands mostly located on the main floor. In some respects, the traffic mirrored what is being reported in retail forecasting both in SNEWS and mainstream media. In this economy, consumers -- and by extension, retailers -- are sticking to basics, buying what is needed, and spending less time and money investigating or trying out new products or brands.
Or, as Jay Steere, vice president of global product management for Timberland, put it, "At present, the economy is driving consumers to value propositions. The days of opulence are over."Doug Faude, owner of Molehill Mountain Equipment, said this was the "worst OR show ever" for him. Usually, he has the first two days booked with appointments, he told us, with retailers dropping in to fill up open slots for the rest of the show, picking up catalogs, etc., and that was not the case this show. "People are staying closer to home, but I don't think the economy is as bad as the media portrays it. People may be postponing that $400 Gore-Tex jacket, but they're still buying quality product for their kids," said Faude. He made a point of telling us that sales for his company in '07 were down 25 percent, while sales in '08 were up 30 percent.
Despite the mostly positive show vibe, cost-cutting measures by retailers and manufacturers alike were evident anywhere one looked. Smaller booths. Less staffing in booths. Retailers bringing only one or two buyers, or in the case of several retailers we spoke with, only the owner came leaving the rest of the team at home. Many retailers came only for two days, including the larger chain stores.
Kenji Haroutunian, Outdoor Retailer show director, told SNEWS that after reviewing unaudited numbers, it appears as if retail attendance was down approximately 6.25 percent compared to Winter Market 2007. Overall attendance, with exhibitors making up the largest percentage of decline, was down approximately 10 percent with numbers of exhibiting companies at 765 in 2008 compared to 815 in 2007. It is important to remember, here, that percentage numbers are only estimates and that Outdoor Retailer show management will not have audited numbers for several weeks.
--Michael Hodgson
SNEWS® View: Frankly, we don't know what else Outdoor Retailer show management could have or should have done to improve attendance or ensure traffic flowed from the main floors to the outlying booths and ballroom folks. In a broader look at all trade shows, Outdoor Retailer Winter Market is actually less affected than most others, which perhaps bodes well for the outdoor industry as being somewhat insulated from deeper economic and market impacts. SHOT show was down about 6 percent, Action Sports Retailer was well off its numbers, and the upcoming MAGIC and WSA shows are projected to be off between 20 percent and 30 percent, and the list goes on.
So traffic was down. What else did anyone expect in this market? Sure, some exhibitors and a few retailers were feeling less than enamored with the show -- but to be fair, that happens even with a much larger attendance in more prosperous times. If anyone wants a job that guarantees someone will be very upset with you, become president of the United States or a trade show director. And if you are going to blame the show for the bad economy, you're pointing your angst in the wrong direction.
While the traffic was lighter than perhaps desired, our takeaway was that overall the smiles were far wider than expected and the vibe was more positive than we might have dreamed. There was a feeling of hope in the halls that we have not seen for some time. That's what happens when good people gather together in one place, under one roof, breathing the same air and collaborating toward solutions that might improve business for us all. That's what we felt happening at Winter Market. If you were there…you likely felt it too.
Thursday, January 29, 2009
Wednesday, January 28, 2009
Increasing Diversity in Outdoor Recreation Presents Significant Opportunity for Outdoor Businesses
Key findings in the recently released 2008 Outdoor Recreation Participation Report suggest significant opportunities exist for increasing participation in outdoor recreation among Hispanics and African Americans. The findings – covering the trends and motivations of diverse participants and non-participants – are critical for outdoor industry companies working to engage growing numbers of outdoor enthusiasts and non-profits nationwide working to connect youth and the outdoors.
Perhaps the most interesting finding in the report is that, although the participation rate in outdoor activities is lower among Hispanics and African Americans than Caucasians, those who do participate get outside more frequently than Caucasians. This encouraging news emphasizes the significance of the opportunity diverse groups offer the outdoor industry.
Other highlights from the report include:
Participation in outdoor activities is highest among Caucasians for all age groups. Participation is lowest among African Americans. Participation among African American youth is markedly lower than Caucasian, Hispanic and Asian/Pacific Islander youth, and the consequences of this are evident in participation rates throughout adulthood.
When youth are asked what motivated them to start participating in outdoor activities, youth ages 6 to 17 of all major ethnicities cite parents, family, relatives and friends as the top motivations. Parents are the leading motivator for all groups, although parents are cited more often by Caucasians (74%) than Hispanics (59%), African Americans (59%) and Asians/Pacific Islanders (65%).
School programs are the fourth most common motivation for youth of all four ethnicities and cited most often by African American youth and Asian/Pacific Islander youth.
When youth participants ages 6 to 17 of all ethnicities are asked why they choose outdoor activities, they cite “fun” most often by a large margin.
Hispanic and African American youth cite a lack of access to places to enjoy outdoor activities in greater numbers than Caucasian and Asian/Pacific Islander youth.
In the coming years, the United States will become a majority minority population, and more than 85% of the population will live in urban communities. The insights in the 2008 Outdoor Recreation Participation Report will help businesses and organizations nationwide connect Americans and the outdoors, reverse the inactivity and obesity crisis and ensure future generations conservationists.
Perhaps the most interesting finding in the report is that, although the participation rate in outdoor activities is lower among Hispanics and African Americans than Caucasians, those who do participate get outside more frequently than Caucasians. This encouraging news emphasizes the significance of the opportunity diverse groups offer the outdoor industry.
Other highlights from the report include:
Participation in outdoor activities is highest among Caucasians for all age groups. Participation is lowest among African Americans. Participation among African American youth is markedly lower than Caucasian, Hispanic and Asian/Pacific Islander youth, and the consequences of this are evident in participation rates throughout adulthood.
When youth are asked what motivated them to start participating in outdoor activities, youth ages 6 to 17 of all major ethnicities cite parents, family, relatives and friends as the top motivations. Parents are the leading motivator for all groups, although parents are cited more often by Caucasians (74%) than Hispanics (59%), African Americans (59%) and Asians/Pacific Islanders (65%).
School programs are the fourth most common motivation for youth of all four ethnicities and cited most often by African American youth and Asian/Pacific Islander youth.
When youth participants ages 6 to 17 of all ethnicities are asked why they choose outdoor activities, they cite “fun” most often by a large margin.
Hispanic and African American youth cite a lack of access to places to enjoy outdoor activities in greater numbers than Caucasian and Asian/Pacific Islander youth.
In the coming years, the United States will become a majority minority population, and more than 85% of the population will live in urban communities. The insights in the 2008 Outdoor Recreation Participation Report will help businesses and organizations nationwide connect Americans and the outdoors, reverse the inactivity and obesity crisis and ensure future generations conservationists.
Monday, January 26, 2009
Did you hear?...Research says sporting goods up for a retail battle, consumers becoming practical
A recent research briefing noted that retail is up for a "big battle" at sporting goods in 2009, while many consumers are looking to become more practical in their spending habits.
Although focused mostly on sporting goods and mass, BIGresearch found that Wal-Mart barely edged out Dick's for the top spot and both are increasing their customer share. Dick's, however, has more followers among male shoppers. Click here to see a BIG Retail Ratings Report.
In its monthly "Consumer Intentions & Actions Survey," BIGresearch (www.bigresearch.com) found that Home Depot and Lowe's continue to hammer in the home improvement category (and we at SNEWS® know that both have toyed with stepping outside the home category into sporting goods and exercise equipment).
More than one of every two shoppers (57.3 percent, per the research) said they've become more practical and realistic in shopping and spending, up from 49.8 percent in December and up from 41.2 percent a year ago. Most are also saying they are more budget-conscious (53.4 percent up from 39 percent).
For the future, research revealed that more say they will spend less in the next 90 days than will spend more. Sporting goods' prognosis is flat over a month ago after showing down over a year ago. But that's not unusual: Per BIG, all categories are showing a down prognosis over a year ago. Showing "up" over a month ago were women's dress, shoes, home improvement, and lawn and garden.
What's hot? BIG's research showed physical exercise was on the list as "hot" -- right along with Jennifer Aniston and iPhones.
Although focused mostly on sporting goods and mass, BIGresearch found that Wal-Mart barely edged out Dick's for the top spot and both are increasing their customer share. Dick's, however, has more followers among male shoppers. Click here to see a BIG Retail Ratings Report.
In its monthly "Consumer Intentions & Actions Survey," BIGresearch (www.bigresearch.com) found that Home Depot and Lowe's continue to hammer in the home improvement category (and we at SNEWS® know that both have toyed with stepping outside the home category into sporting goods and exercise equipment).
More than one of every two shoppers (57.3 percent, per the research) said they've become more practical and realistic in shopping and spending, up from 49.8 percent in December and up from 41.2 percent a year ago. Most are also saying they are more budget-conscious (53.4 percent up from 39 percent).
For the future, research revealed that more say they will spend less in the next 90 days than will spend more. Sporting goods' prognosis is flat over a month ago after showing down over a year ago. But that's not unusual: Per BIG, all categories are showing a down prognosis over a year ago. Showing "up" over a month ago were women's dress, shoes, home improvement, and lawn and garden.
What's hot? BIG's research showed physical exercise was on the list as "hot" -- right along with Jennifer Aniston and iPhones.
Carbon Reduction Project Ratings Now Available Through Bloomberg
OAKLAND, Calif. -- The Carbon Rating Agency's assessments of a range of carbon reduction projects are now available to Bloomberg users.
Launched in June last year, the Carbon Rating Agency's service looks at Clean Development Mechanism and Joint Implementation projects related to the Kyoto Protocol as well as voluntary projects.
Each project is rated based on the type of project, includes an assessment of how likely the project is to provide its stated emissions reductions in the expected period of time, and takes into account economic and social development benefits.
The ratings are now available to users of the Bloomberg Professional service, and the Carbon Rating Agency aims for the information to help users made better-informed carbon market trading decisions.
Projects can earn up to a AAA rating, or as low as C and D, labeling them as riskier investments.
Launched in June last year, the Carbon Rating Agency's service looks at Clean Development Mechanism and Joint Implementation projects related to the Kyoto Protocol as well as voluntary projects.
Each project is rated based on the type of project, includes an assessment of how likely the project is to provide its stated emissions reductions in the expected period of time, and takes into account economic and social development benefits.
The ratings are now available to users of the Bloomberg Professional service, and the Carbon Rating Agency aims for the information to help users made better-informed carbon market trading decisions.
Projects can earn up to a AAA rating, or as low as C and D, labeling them as riskier investments.
Carbon Reduction Project Ratings Now Available Through Bloomberg
OAKLAND, Calif. -- The Carbon Rating Agency's assessments of a range of carbon reduction projects are now available to Bloomberg users.
Launched in June last year, the Carbon Rating Agency's service looks at Clean Development Mechanism and Joint Implementation projects related to the Kyoto Protocol as well as voluntary projects.
Each project is rated based on the type of project, includes an assessment of how likely the project is to provide its stated emissions reductions in the expected period of time, and takes into account economic and social development benefits.
The ratings are now available to users of the Bloomberg Professional service, and the Carbon Rating Agency aims for the information to help users made better-informed carbon market trading decisions.
Projects can earn up to a AAA rating, or as low as C and D, labeling them as riskier investments.
Launched in June last year, the Carbon Rating Agency's service looks at Clean Development Mechanism and Joint Implementation projects related to the Kyoto Protocol as well as voluntary projects.
Each project is rated based on the type of project, includes an assessment of how likely the project is to provide its stated emissions reductions in the expected period of time, and takes into account economic and social development benefits.
The ratings are now available to users of the Bloomberg Professional service, and the Carbon Rating Agency aims for the information to help users made better-informed carbon market trading decisions.
Projects can earn up to a AAA rating, or as low as C and D, labeling them as riskier investments.
Carbon Market Worth $118B in 2008
LONDON, UK -- Despite the slumping economy, the value of the worldwide carbon market soared 84 percent in 2008 to reach $118 billion, and could reach $150 billion this year, according to New Carbon Finance.
Some 4 billion tonnes worth of carbon allowances changed hands last year, a 42 percent increase over 2007, the research firm found. The bulk of the transactions were European Union Allowances (EUA), representing 70 percent and 80 percent of the value.
A growing interest in secondary Certified Emissions Reductions (CER) for the Clean Development Mechanism (CDM) boosted their market share from 8 percent in 2007 to 13 percent in 2008. The credits are eligible for compliance under the European Union Emissions Trading Scheme (EU ETS) and Kyoto Protocol, as well as potential Australian and North American trading programs, according to New Carbon Finance, which is a division of New Energy Finance.
A smaller number of credits from the CDM entered the United Nations crediting approval process in 2008 than in 2007, leading to about 30 percent less purchased on the primary CER market. More projects entered the pipeline in 2008 but the number of smaller projects grew, mostly related to energy efficiency and renewable energy.
New Carbon Finance expects moderate growth in the European allowance market in 2009 but most growth will stem from more liquidity in the secondary CER market
Some 4 billion tonnes worth of carbon allowances changed hands last year, a 42 percent increase over 2007, the research firm found. The bulk of the transactions were European Union Allowances (EUA), representing 70 percent and 80 percent of the value.
A growing interest in secondary Certified Emissions Reductions (CER) for the Clean Development Mechanism (CDM) boosted their market share from 8 percent in 2007 to 13 percent in 2008. The credits are eligible for compliance under the European Union Emissions Trading Scheme (EU ETS) and Kyoto Protocol, as well as potential Australian and North American trading programs, according to New Carbon Finance, which is a division of New Energy Finance.
A smaller number of credits from the CDM entered the United Nations crediting approval process in 2008 than in 2007, leading to about 30 percent less purchased on the primary CER market. More projects entered the pipeline in 2008 but the number of smaller projects grew, mostly related to energy efficiency and renewable energy.
New Carbon Finance expects moderate growth in the European allowance market in 2009 but most growth will stem from more liquidity in the secondary CER market
REI Adds bluesign Standard to its Product Sustainability Strategy
Recreational Equipment, Inc. (REI), a national retail cooperative providing quality outdoor gear and clothing, today announced its membership with bluesign technologies ag allowing the company to use the bluesign® independent standard as part of its product design and sourcing process.
Founded in 2000 in Switzerland, bluesign is an approach to product sustainability that considers textile environment, health and safety issues from the ground-up, addressing the use of toxic-free ingredients, efficient production and resources, and informed product and process design. Since its development, the standard has been adopted by a number of worldwide textile manufacturers and apparel companies. Certified mills that comply with the standard are more efficient and have less environmental impact, while their operations comply with worker health and safety standards.
REI considers the bluesign standard as the strongest global solution available to proactively address textile environmental, health and safety strategy. Further, utilizing the standard is an important step in managing the substances used to create products the co-op sells under its branded labels.
With this announcement, the design teams for REI branded apparel and cycling brands will begin to use the bluesign standard to help make more informed textile supply chain choices. For example, designers will utilize the standard in making yarn, fabric and dye decisions and in the selection of mills and production factories. This approach will provide greater supply chain transparency in support of REI’s goal of reducing the environmental impact of its products.
REI has a number of efforts in place to reduce its environmental footprint and increase its product stewardship involvement. For example, the co-op is currently working with other outdoor brands and retailers to help drive positive, lasting change within the industry. The co-op was a founding member of the Outdoor Industry Association’s (OIA) Eco-Working Group, an industry organization establishing a common framework to measure, report and ultimately improve on the environmental impact of outdoor gear and clothing. Today, the group includes more than 100 brands, manufacturers and others working toward a mutually agreeable definition of what “green” means for products and apparel. bluesign’s methodology covers a significant portion of the material impacts that the OIA Eco-Working Group is considering.
For more information about REI’s stewardship efforts or to access REI’s annual stewardship report, visit http://www.rei.com/stewardship.
About REI
REI’s in-house team designs and develops award-winning gear and apparel for camping, hiking, cycling, urban lifestyle, travel, and general outdoor recreation. The brands REI and Novara are private labels and sold exclusively through the co-op’s retail stores, online at www.rei.comand through its catalogs. REI is a national outdoor retail co-op dedicated to inspiring, educating and outfitting its members and the community for a lifetime of outdoor adventure and stewardship. Founded in 1938 by a group of Pacific Northwest mountaineers seeking quality equipment, REI is committed to promoting environmental stewardship and increasing access to outdoor recreation through volunteerism, gear donations and financial contributions.
Founded in 2000 in Switzerland, bluesign is an approach to product sustainability that considers textile environment, health and safety issues from the ground-up, addressing the use of toxic-free ingredients, efficient production and resources, and informed product and process design. Since its development, the standard has been adopted by a number of worldwide textile manufacturers and apparel companies. Certified mills that comply with the standard are more efficient and have less environmental impact, while their operations comply with worker health and safety standards.
REI considers the bluesign standard as the strongest global solution available to proactively address textile environmental, health and safety strategy. Further, utilizing the standard is an important step in managing the substances used to create products the co-op sells under its branded labels.
With this announcement, the design teams for REI branded apparel and cycling brands will begin to use the bluesign standard to help make more informed textile supply chain choices. For example, designers will utilize the standard in making yarn, fabric and dye decisions and in the selection of mills and production factories. This approach will provide greater supply chain transparency in support of REI’s goal of reducing the environmental impact of its products.
REI has a number of efforts in place to reduce its environmental footprint and increase its product stewardship involvement. For example, the co-op is currently working with other outdoor brands and retailers to help drive positive, lasting change within the industry. The co-op was a founding member of the Outdoor Industry Association’s (OIA) Eco-Working Group, an industry organization establishing a common framework to measure, report and ultimately improve on the environmental impact of outdoor gear and clothing. Today, the group includes more than 100 brands, manufacturers and others working toward a mutually agreeable definition of what “green” means for products and apparel. bluesign’s methodology covers a significant portion of the material impacts that the OIA Eco-Working Group is considering.
For more information about REI’s stewardship efforts or to access REI’s annual stewardship report, visit http://www.rei.com/stewardship.
About REI
REI’s in-house team designs and develops award-winning gear and apparel for camping, hiking, cycling, urban lifestyle, travel, and general outdoor recreation. The brands REI and Novara are private labels and sold exclusively through the co-op’s retail stores, online at www.rei.comand through its catalogs. REI is a national outdoor retail co-op dedicated to inspiring, educating and outfitting its members and the community for a lifetime of outdoor adventure and stewardship. Founded in 1938 by a group of Pacific Northwest mountaineers seeking quality equipment, REI is committed to promoting environmental stewardship and increasing access to outdoor recreation through volunteerism, gear donations and financial contributions.
Climate Change Lessons from the Slopes
A recent study presented at last month’s American Geophysical Union conference holds chilling news for the $2 billion U.S. ski industry: Climate change might end skiing in Aspen and Park City by 2100.
It stands to reason that if the snow pack dries up, the ski industry could, too. But the study from Mark Williams and Brian Lazar could be a harbinger of things to come for other consumer-facing industries as well. As one of the first industries to face climate change head-on, skiing provides three key lessons for other sectors.
Learn the Terrain: Know and Promote the Facts
Climate change myths abound. On a recent Google search for “climate change facts,” five out of the first 11 hits led me to websites that downplay or contradict the science. Media watchdog groups substantiate my findings: According to Media Matters, recent content by CNN, the Wall Street Journal, Fox News, and other mainstream papers and broadcast outlets have contained inaccurate and flawed information about climate change.
In light of this misinformation, consumer-facing industries have a responsibility to get their facts straight and share them with their customers. According to the best assembly of experts on the subject -- the UN’s Intergovernmental Panel on Climate Change -- here’s what we know: The climate is destabilizing, this destabilization is driven by greenhouse gas emissions, and humans are directly responsible for causing those emissions (see sidebar).
With this gap between public knowledge and the scientific facts, one of the most powerful things companies can do about climate change is use their communication channels to set the record straight. In the ski industry, outdoor apparel manufacturer Patagonia, which has an extensive "environmentalism" section on its website, has been doing this for years. By demonstrating a deep-rooted commitment to environmental stability, Patagonia has enjoyed the commercial benefits of long-term customer loyalty, and the ethical benefits of being on the right side of science.
There is a business opportunity for virtually every company to use their existing communications efforts to give their employees and customers a compass for climate change, which is shaping up to be one of history's greatest social threats. Since people need accurate information to make good decisions, this is, for many consumer-facing businesses, the easiest and most important thing they can do.
Go Out of Bounds: Look Outside Your Company’s Operations
In many ways, it’s logical to focus efforts on reducing emissions from your company’s internal operations: Internal emissions are the easiest to measure and control, the effort yields useful information about costs and risks, and committing to operational reductions is important for credibility.
But as the ski industry has demonstrated, there are important opportunities to look outside the scope of your company’s boundaries and consider ways you can help reduce emissions on a broader scale.
For example, the energy bar company Clif Bar has supported the formation of the collaborative initiative Keep Winter Cool, which aims to raise public understanding of global warming. In an effort to take responsibility for their customers’ drives to the mountain, California’s Kirkwood ski resort partnered with SnowBomb, a resort information and discount portal, to develop user-friendly rideshare schemes. Enabling conservation-oriented consumer behavior is one of the most important steps companies can take to combat climate change.
At the same time, a company’s operations have less influence on the customer than the customer’s experience with the company’s products, which generally takes place among an ecosystem of complimentary goods and services from other companies -- in the case of skiing, that includes the drive, lodging, gear, and more. Consumer-facing companies therefore have a great opportunity to meet the customer where they use their products, particularly by partnering with other companies that are operating in the same environment.
While the previous examples are customer-focused, you can extend the influence of your company by using whatever assets have the most reach. For instance, Colorado’s Aspen Skiing Company, which is influential in its community, has directed its resources to partner with utilities to deploy new community solar arrays. The company also has lobbied for policy change by filing federal amicus briefs and testifying before Congress about the expected effects of global warming on the ski industry.
These early initiatives by the ski industry are just the beginning; there’s a whole wilderness of opportunity for other industries to develop climate change solutions by venturing beyond the boundaries of their own operations.
Proceed with Caution: Abate, Abate, Abate
In climate change, we talk about adaptation -- preparing for change -- while committing to abatement -- doing our best to prevent things from getting worse. There is a multi-decade lag between emissions and their effects on the climate, so we are almost certainly locked in to at least 2 degrees Celsius of warming. Some adaptation to climate change will be necessary. For the ski industry, making more snow and employing new business strategies will be the keys to survival for many resorts. Other companies will make similar plans for adaptation. At the same time, it’s critical for companies to maintain an unwavering focus on reducing emissions.
There are three reasons for this. First, adaptation is perilous. According to most predictions, climate change could easily push currently stable ecosystems across boundaries. For instance, as the climate warms over time, the thawing of ice and tundra could release huge amounts of additional emissions. Yet, no matter what the pace, climate change effects are irreversible. So while technological solutions like snowmaking may provide a quick fix to the narrow interests of some, they won’t replenish the breadth of lost ecosystems and their natural services in general.
Second, adaptation is a classic “win-lose” game, where people and companies will compete for fewer resources (especially water) and defend the most fertile real estate, while more energy will be needed to resettle and distribute goods and services. Such a process is inherently disruptive, brings about sociopolitical instability, and is likely to leave the vulnerable behind.
The last reason companies need to focus on abatement, not just adaptation, is that every incremental rise in average global temperatures is more menacing than the previous one. It is not about whether climate change will occur, but to what extent, so every abatement effort counts.
While skiing is one of the first industries forced to deal with climate change so directly and comprehensively, consumer-facing companies in other industries will face the same challenges soon enough. These lessons from the slopes will help all businesses build a stable and predictable future.
It stands to reason that if the snow pack dries up, the ski industry could, too. But the study from Mark Williams and Brian Lazar could be a harbinger of things to come for other consumer-facing industries as well. As one of the first industries to face climate change head-on, skiing provides three key lessons for other sectors.
Learn the Terrain: Know and Promote the Facts
Climate change myths abound. On a recent Google search for “climate change facts,” five out of the first 11 hits led me to websites that downplay or contradict the science. Media watchdog groups substantiate my findings: According to Media Matters, recent content by CNN, the Wall Street Journal, Fox News, and other mainstream papers and broadcast outlets have contained inaccurate and flawed information about climate change.
In light of this misinformation, consumer-facing industries have a responsibility to get their facts straight and share them with their customers. According to the best assembly of experts on the subject -- the UN’s Intergovernmental Panel on Climate Change -- here’s what we know: The climate is destabilizing, this destabilization is driven by greenhouse gas emissions, and humans are directly responsible for causing those emissions (see sidebar).
With this gap between public knowledge and the scientific facts, one of the most powerful things companies can do about climate change is use their communication channels to set the record straight. In the ski industry, outdoor apparel manufacturer Patagonia, which has an extensive "environmentalism" section on its website, has been doing this for years. By demonstrating a deep-rooted commitment to environmental stability, Patagonia has enjoyed the commercial benefits of long-term customer loyalty, and the ethical benefits of being on the right side of science.
There is a business opportunity for virtually every company to use their existing communications efforts to give their employees and customers a compass for climate change, which is shaping up to be one of history's greatest social threats. Since people need accurate information to make good decisions, this is, for many consumer-facing businesses, the easiest and most important thing they can do.
Go Out of Bounds: Look Outside Your Company’s Operations
In many ways, it’s logical to focus efforts on reducing emissions from your company’s internal operations: Internal emissions are the easiest to measure and control, the effort yields useful information about costs and risks, and committing to operational reductions is important for credibility.
But as the ski industry has demonstrated, there are important opportunities to look outside the scope of your company’s boundaries and consider ways you can help reduce emissions on a broader scale.
For example, the energy bar company Clif Bar has supported the formation of the collaborative initiative Keep Winter Cool, which aims to raise public understanding of global warming. In an effort to take responsibility for their customers’ drives to the mountain, California’s Kirkwood ski resort partnered with SnowBomb, a resort information and discount portal, to develop user-friendly rideshare schemes. Enabling conservation-oriented consumer behavior is one of the most important steps companies can take to combat climate change.
At the same time, a company’s operations have less influence on the customer than the customer’s experience with the company’s products, which generally takes place among an ecosystem of complimentary goods and services from other companies -- in the case of skiing, that includes the drive, lodging, gear, and more. Consumer-facing companies therefore have a great opportunity to meet the customer where they use their products, particularly by partnering with other companies that are operating in the same environment.
While the previous examples are customer-focused, you can extend the influence of your company by using whatever assets have the most reach. For instance, Colorado’s Aspen Skiing Company, which is influential in its community, has directed its resources to partner with utilities to deploy new community solar arrays. The company also has lobbied for policy change by filing federal amicus briefs and testifying before Congress about the expected effects of global warming on the ski industry.
These early initiatives by the ski industry are just the beginning; there’s a whole wilderness of opportunity for other industries to develop climate change solutions by venturing beyond the boundaries of their own operations.
Proceed with Caution: Abate, Abate, Abate
In climate change, we talk about adaptation -- preparing for change -- while committing to abatement -- doing our best to prevent things from getting worse. There is a multi-decade lag between emissions and their effects on the climate, so we are almost certainly locked in to at least 2 degrees Celsius of warming. Some adaptation to climate change will be necessary. For the ski industry, making more snow and employing new business strategies will be the keys to survival for many resorts. Other companies will make similar plans for adaptation. At the same time, it’s critical for companies to maintain an unwavering focus on reducing emissions.
There are three reasons for this. First, adaptation is perilous. According to most predictions, climate change could easily push currently stable ecosystems across boundaries. For instance, as the climate warms over time, the thawing of ice and tundra could release huge amounts of additional emissions. Yet, no matter what the pace, climate change effects are irreversible. So while technological solutions like snowmaking may provide a quick fix to the narrow interests of some, they won’t replenish the breadth of lost ecosystems and their natural services in general.
Second, adaptation is a classic “win-lose” game, where people and companies will compete for fewer resources (especially water) and defend the most fertile real estate, while more energy will be needed to resettle and distribute goods and services. Such a process is inherently disruptive, brings about sociopolitical instability, and is likely to leave the vulnerable behind.
The last reason companies need to focus on abatement, not just adaptation, is that every incremental rise in average global temperatures is more menacing than the previous one. It is not about whether climate change will occur, but to what extent, so every abatement effort counts.
While skiing is one of the first industries forced to deal with climate change so directly and comprehensively, consumer-facing companies in other industries will face the same challenges soon enough. These lessons from the slopes will help all businesses build a stable and predictable future.
Is Now a Good Time to Launch?
By Marc Karimzadeh, Julee Kaplan
A depressed economy, little prospect of financial backing and fewer retailers willing to take chances. Is this the worst time for young talent?
That’s debatable. Some industry experts deem this a particularly tough time for newcomers, while others sense opportunity for designers with a fresh vision.
Ann Watson, vice president and fashion director of Henri Bendel, said the store’s policy of finding and supporting young designers isn’t changing.
“If they are going to do it, they all need to have done their homework and be totally buttoned-up,” Watson said. “The collection has to have a distinctive point of view, and they need to know who their customer is. There has to be a strong perceived value, no matter what the price point is. I think there is an opportunity for any designer to really step out and be distinctive and clarify their voice and connection with customers. It’s not a time for somebody to launch a line that is more of the same thing. Every item has to count.”
Robert Burke, founder of the New York-based consulting firm Robert Burke Associates, agreed. “We want to encourage young talent and growth in this industry, but there has never been a more difficult time in retail. As a result, buyers are reducing their buys and are probably being less experimental, and from that standpoint, economically, it’s more difficult than it has ever been before.”
Simon Collins, Dean of Fashion at Parsons The New School for Design, said that in time even the recession can present opportunity.
“Design is traditionally very tough at the beginning of a recession, when everyone is rolling back and not forward, but toward the end of recession, it becomes more important again, because all these companies that are suffering at the moment can eventually only survive by providing something new, and the only way to do that is with design,” he said.
And if they can do it right, now can be a time for new brands to thrive.
“This is a time when the market is forcing designers to think smaller to get it right. Once you get it right, then you can go globally,” Collins added. “Every store that is open right now still wants to put things in-store, so for a brand with a genuine point of view and real direction, there is opportunity.”
Ken Erman, chief executive officer and co-founder of L.A.M.B., sees that opportunity on a global level for his newest venture. The L.A.M.B. collection, which he runs with singer Gwen Stefani, is still a hot line in the contemporary market, selling at a range of retailers from Saks Fifth Avenue, Bloomingdale’s and Nordstrom to Big Drop and Atrium.
Erman also just launched a new label, Truth & Pride, for holiday selling that is sold at Nordstrom, as well as Henri Bendel and Atrium in New York. But his plate isn’t entirely full. That’s why he is launching another label, called Seventy Two Changes, with the Taiwanese pop star Jolin Tsai.
“It’s not about partnering with a celebrity for us,” Erman said. “We already have a great thing with L.A.M.B., but we wanted to do even more to inspire women on a global scale, and so many girls look up to Jolin. She is huge in Asia.”
Seventy Two Changes, which is named after one of Tsai’s best-selling songs, plans to launch a full contemporary sportswear line, designed and inspired by the looks for which Tsai is known. The brand will launch in the U.S. in about 10 to 20 doors for the first season and across China for fall selling.
“We want to keep the distribution very limited at first,” Erman said. “It’s all about creating a demand for the product.”
Seventy Two Changes is different from L.A.M.B., even though they both serve the contemporary market. While prices have yet to be determined for the Seventy Two Changes line, Erman said it would be priced lower than L.A.M.B. in order to make it accessible to a wider range of consumers.
For the launch, the line includes a mix of club-appropriate and streetwise items such as a black T-shirt dress accented with bright blue and silver sequin details, structured tuxedo jackets and vests with beading details at the shoulders, lightweight wool plaid tops, leather leggings with zipper details at the ankles, silk chiffon printed tops and dresses, a taffeta motorcycle jacket and an asymmetrical bomber jacket.
Erman and Barbara Lin, president of the brand, said they work closely with Tsai to make sure the collection is to her liking.
“We conference with her all the time, but we also took her shopping in Tokyo and went through her closet at her apartment to get a handle on her style,” Lin said.
Much different than Seventy Two Changes, 23-year-old Kimberly Tebele has her own vision for her new contemporary label, Kimberly Taylor. The daughter of Irwin Gindi, a former owner of the Century 21 chain of off-price designer stores, Tebele said she always knew she would one day do her own line.
“My mom used to yell at me because I would wear these supercasual cotton tank tops with my really nice, dressy skirts,” Tebele recalled. “So that’s when I decided I would design a line of silk basics that were comfortable but also look dressy. I want to be the American Apparel of silk.”
Her idea was to create a line of luxurious staples, rather than trendy items — there’s the basic silk tank top in colors such as royal blue, deep purple, bright red and black and white. There’s also silk taffeta skirts, long and short strapless gowns, a classic shift dress in black and gray with a pop of red around the waist, a tunic and a pair of soft silk drawstring shorts. The line wholesales from $64 to $108 and has already been picked up by Twist and Breeze in Brooklyn and Henri Bendel, where Tebele is planning a trunk show early next month.
“These are difficult times right now, but I think that my clothes are classic investment pieces, which feel good to wear and are not going to break the bank,” she said. “They can be worn from the beach to a cocktail party. They are clothes to carry you through, which has been a good thing in a recession.”
A third new label to launch in the contemporary sector is Charley 5.0. While the brand will land in select stores next month, its parent company, Salt Jeanswear LLC, is thinking big for fall — moving from primarily a denim label to a full contemporary sportswear brand.
“We are all about staying on top of the trends and translating what we do with denim into a full collection,” said Susan Dimeo, director of sales at Charley 5.0. “It’s all about high style for a great price.”
For fall, the collection is focused on boho with a modern edge, such as a long denim halter dress and jumper, cotton blouses, leggings, pencil skirts and jackets. The fabrics range from lightweight stretch chambray to silk and cotton with treatments including tie-dye, bleaching and distressing. Wholesale prices range from $53 to $126. The collection has already been picked up by Neiman Marcus, Scoop, Henri Bendel and Planet Blue.
While Dimeo said she would eventually love to build Charley 5.0 up to a $15 million business, she said she isn’t aiming that high in this economy.
“The most important thing right now is to grow this into a healthy business, have a great product with a great fit and grow from there,” she said. “Our goal is to come out stronger when the recession is over.”
A depressed economy, little prospect of financial backing and fewer retailers willing to take chances. Is this the worst time for young talent?
That’s debatable. Some industry experts deem this a particularly tough time for newcomers, while others sense opportunity for designers with a fresh vision.
Ann Watson, vice president and fashion director of Henri Bendel, said the store’s policy of finding and supporting young designers isn’t changing.
“If they are going to do it, they all need to have done their homework and be totally buttoned-up,” Watson said. “The collection has to have a distinctive point of view, and they need to know who their customer is. There has to be a strong perceived value, no matter what the price point is. I think there is an opportunity for any designer to really step out and be distinctive and clarify their voice and connection with customers. It’s not a time for somebody to launch a line that is more of the same thing. Every item has to count.”
Robert Burke, founder of the New York-based consulting firm Robert Burke Associates, agreed. “We want to encourage young talent and growth in this industry, but there has never been a more difficult time in retail. As a result, buyers are reducing their buys and are probably being less experimental, and from that standpoint, economically, it’s more difficult than it has ever been before.”
Simon Collins, Dean of Fashion at Parsons The New School for Design, said that in time even the recession can present opportunity.
“Design is traditionally very tough at the beginning of a recession, when everyone is rolling back and not forward, but toward the end of recession, it becomes more important again, because all these companies that are suffering at the moment can eventually only survive by providing something new, and the only way to do that is with design,” he said.
And if they can do it right, now can be a time for new brands to thrive.
“This is a time when the market is forcing designers to think smaller to get it right. Once you get it right, then you can go globally,” Collins added. “Every store that is open right now still wants to put things in-store, so for a brand with a genuine point of view and real direction, there is opportunity.”
Ken Erman, chief executive officer and co-founder of L.A.M.B., sees that opportunity on a global level for his newest venture. The L.A.M.B. collection, which he runs with singer Gwen Stefani, is still a hot line in the contemporary market, selling at a range of retailers from Saks Fifth Avenue, Bloomingdale’s and Nordstrom to Big Drop and Atrium.
Erman also just launched a new label, Truth & Pride, for holiday selling that is sold at Nordstrom, as well as Henri Bendel and Atrium in New York. But his plate isn’t entirely full. That’s why he is launching another label, called Seventy Two Changes, with the Taiwanese pop star Jolin Tsai.
“It’s not about partnering with a celebrity for us,” Erman said. “We already have a great thing with L.A.M.B., but we wanted to do even more to inspire women on a global scale, and so many girls look up to Jolin. She is huge in Asia.”
Seventy Two Changes, which is named after one of Tsai’s best-selling songs, plans to launch a full contemporary sportswear line, designed and inspired by the looks for which Tsai is known. The brand will launch in the U.S. in about 10 to 20 doors for the first season and across China for fall selling.
“We want to keep the distribution very limited at first,” Erman said. “It’s all about creating a demand for the product.”
Seventy Two Changes is different from L.A.M.B., even though they both serve the contemporary market. While prices have yet to be determined for the Seventy Two Changes line, Erman said it would be priced lower than L.A.M.B. in order to make it accessible to a wider range of consumers.
For the launch, the line includes a mix of club-appropriate and streetwise items such as a black T-shirt dress accented with bright blue and silver sequin details, structured tuxedo jackets and vests with beading details at the shoulders, lightweight wool plaid tops, leather leggings with zipper details at the ankles, silk chiffon printed tops and dresses, a taffeta motorcycle jacket and an asymmetrical bomber jacket.
Erman and Barbara Lin, president of the brand, said they work closely with Tsai to make sure the collection is to her liking.
“We conference with her all the time, but we also took her shopping in Tokyo and went through her closet at her apartment to get a handle on her style,” Lin said.
Much different than Seventy Two Changes, 23-year-old Kimberly Tebele has her own vision for her new contemporary label, Kimberly Taylor. The daughter of Irwin Gindi, a former owner of the Century 21 chain of off-price designer stores, Tebele said she always knew she would one day do her own line.
“My mom used to yell at me because I would wear these supercasual cotton tank tops with my really nice, dressy skirts,” Tebele recalled. “So that’s when I decided I would design a line of silk basics that were comfortable but also look dressy. I want to be the American Apparel of silk.”
Her idea was to create a line of luxurious staples, rather than trendy items — there’s the basic silk tank top in colors such as royal blue, deep purple, bright red and black and white. There’s also silk taffeta skirts, long and short strapless gowns, a classic shift dress in black and gray with a pop of red around the waist, a tunic and a pair of soft silk drawstring shorts. The line wholesales from $64 to $108 and has already been picked up by Twist and Breeze in Brooklyn and Henri Bendel, where Tebele is planning a trunk show early next month.
“These are difficult times right now, but I think that my clothes are classic investment pieces, which feel good to wear and are not going to break the bank,” she said. “They can be worn from the beach to a cocktail party. They are clothes to carry you through, which has been a good thing in a recession.”
A third new label to launch in the contemporary sector is Charley 5.0. While the brand will land in select stores next month, its parent company, Salt Jeanswear LLC, is thinking big for fall — moving from primarily a denim label to a full contemporary sportswear brand.
“We are all about staying on top of the trends and translating what we do with denim into a full collection,” said Susan Dimeo, director of sales at Charley 5.0. “It’s all about high style for a great price.”
For fall, the collection is focused on boho with a modern edge, such as a long denim halter dress and jumper, cotton blouses, leggings, pencil skirts and jackets. The fabrics range from lightweight stretch chambray to silk and cotton with treatments including tie-dye, bleaching and distressing. Wholesale prices range from $53 to $126. The collection has already been picked up by Neiman Marcus, Scoop, Henri Bendel and Planet Blue.
While Dimeo said she would eventually love to build Charley 5.0 up to a $15 million business, she said she isn’t aiming that high in this economy.
“The most important thing right now is to grow this into a healthy business, have a great product with a great fit and grow from there,” she said. “Our goal is to come out stronger when the recession is over.”
Obama’s First Bill Signing Will be a Big Win for Public Lands
The outdoor industry is likely to get an initial big win early in this Congress as one of the first bills President Obama will sign into law is the massive public lands package headed for his desk.
The legislation (S. 22) is a big win for the recreation and conservation community as it includes permanent recognition for the Bureau of Land Management’s National Landscape Conservation System. The NLCS encompasses 26 million acres containing the iconic desert landscapes of the western U.S. More than one-third of all recreational visits occur on these lands.
The bill's other provisions are equally as important as they will create 2.2 million acres of wilderness, designate three new national parks, designate several national trails, designate more than 1,000 miles of wild and scenic rivers and designate 10 national heritage areas.
The legislation (S. 22) is a big win for the recreation and conservation community as it includes permanent recognition for the Bureau of Land Management’s National Landscape Conservation System. The NLCS encompasses 26 million acres containing the iconic desert landscapes of the western U.S. More than one-third of all recreational visits occur on these lands.
The bill's other provisions are equally as important as they will create 2.2 million acres of wilderness, designate three new national parks, designate several national trails, designate more than 1,000 miles of wild and scenic rivers and designate 10 national heritage areas.
- The three new national park units would make the birthplace of President Bill Clinton in Hope, Arkansas, a National Historic Site; it would create River Raisin National Battlefield Park in Michigan on sites related to the War of 1812; and it would establish a national historical park around the water power system at Passaic Great Falls in New Jersey to recognize and preserve Alexander Hamilton's breakthroughs in industrial production.
The 15 different proposals for new or expanded wilderness areas are the largest expansion of the National Wilderness Preservation System since 1994. New wilderness includes:
- 517,000 acres in the Owyhee-Bruneau Canyonlands of southwestern Idaho.
- In Utah, more than 260,000 acres of land will receive wilderness designation and 166 miles of the Virgin River will receive wild and scenic status. The bill would also create two National Conservation Areas in Washington County, resulting in recreational opportunities on 140,000 acres.
- 130,000 acres surrounding Oregon's Mount Hood will receive wilderness designation.
Finally, the bill will withdraw 1.2 million acres of the Bridger Teton National Forest south of Jackson Hole from future oil and gas leasing.
Youth Participation Findings in 2008 Outdoor Recreation Participation Report
Last week, The Outdoor Foundation released the 2008 Outdoor Recreation Participation Report, the only detailed study of its kind tracking American participation trends in outdoor recreation. The findings revealed that participation in outdoor activities is rising overall, but disturbingly, participation among children is declining significantly.
The report – based on an on-line survey capturing responses from over 60,000 Americans ages six and older and covering 114 different outdoor activities – examines trends in the extent and frequency of youth participation in outdoor activities and reports on the motivations of youth participants and non-participants.
The most concerning finding of the report reveals that participation among youth ages 6 to 17 dropped over 11% in 2007. The drop was sharpest among youth ages 6 to 12, particularly girls age 6 to 12 whose participation fell from 77% to 61%.
In an age of extreme video games, online social networks, infinite television options and rising obesity rates, connecting youth with the healthy active outdoor lifestyle is critical. The decline in youth participation in outdoor recreation highlights the importance of nationwide efforts to understand and reverse the growing inactivity crisis among youth and the growing disconnect between youth and the outdoors. The insights detailed in the 2008 Outdoor Recreation Participation Report are critical to these efforts.
Findings in the 2008 Outdoor Recreation Participation Report specific to youth include:
Participation among youth ages 6 to 17 dropped over 11% in 2007.
Participation among boys and girls age 6-12 experienced the sharpest drop. Girls had the biggest decline falling from 77% to 61%. Boys fell from 79% to 72%.
Most youth are introduced to outdoor activities by parents, friends, family, and relatives.
For youth, "fun" is by far the most common motivation for participating in outdoor activities. Other motivators include discovery, exploration, new experiences, and exercise.
Youth of all ages who do not participate in outdoor activities cite a lack of interest as their primary reason. Lack of interest is followed by a lack of time, competition from other responsibilities (primarily schoolwork) and a preference for screen media such as TV, computers and video games.
The report – based on an on-line survey capturing responses from over 60,000 Americans ages six and older and covering 114 different outdoor activities – examines trends in the extent and frequency of youth participation in outdoor activities and reports on the motivations of youth participants and non-participants.
The most concerning finding of the report reveals that participation among youth ages 6 to 17 dropped over 11% in 2007. The drop was sharpest among youth ages 6 to 12, particularly girls age 6 to 12 whose participation fell from 77% to 61%.
In an age of extreme video games, online social networks, infinite television options and rising obesity rates, connecting youth with the healthy active outdoor lifestyle is critical. The decline in youth participation in outdoor recreation highlights the importance of nationwide efforts to understand and reverse the growing inactivity crisis among youth and the growing disconnect between youth and the outdoors. The insights detailed in the 2008 Outdoor Recreation Participation Report are critical to these efforts.
Findings in the 2008 Outdoor Recreation Participation Report specific to youth include:
Participation among youth ages 6 to 17 dropped over 11% in 2007.
Participation among boys and girls age 6-12 experienced the sharpest drop. Girls had the biggest decline falling from 77% to 61%. Boys fell from 79% to 72%.
Most youth are introduced to outdoor activities by parents, friends, family, and relatives.
For youth, "fun" is by far the most common motivation for participating in outdoor activities. Other motivators include discovery, exploration, new experiences, and exercise.
Youth of all ages who do not participate in outdoor activities cite a lack of interest as their primary reason. Lack of interest is followed by a lack of time, competition from other responsibilities (primarily schoolwork) and a preference for screen media such as TV, computers and video games.
Thursday, January 15, 2009
Press Release - LOCALS HAVE MORE FUN ANNOUNCES ITS OUTDOOR RETAILER CARBON OFFSET PROGRAM
For Immediate Release
Locals Have More Fun ®
Brian Kahn
4229 Southridge Ct.
Park City UT 84098
435-659-6217
brian@localshavemorefun.com
Park City, UT, January 15th, 2009 — Locals Have More Fun will be offsetting 100 Tons of carbondioxide emissions during the 4 day Outdoor Retailer Winter Market in Salt Lake City, UT. This translates into 200 trees being planted with the National Forest Foundation as the Park City, UTbased eco friendly lifestyle line lives up to its byline: “Protecting the Places We Live and Play™”.
“Depicting the ‘locals’ lifestyle comes with a price”, says owner Brian Kahn. “That price isprotecting the very lifestyle that locals and destination town tourists know so well. We realizedthat much of the land that destination towns are in or are adjacent to are also National Forests.Planting trees would be a great way to offset our carbon footprint and increase thesustainability of our playground.”
Locals Have More Fun will give away reusable cups each day at 1:30pm. The cups will beimprinted with: “100 Tons Equals 200 Trees”. “What better way to kick off “social hour” thancoming by and picking up a cup that is eco friendly and represents a carbon-offsetting tree!”
Locals Have More Fun is a member of 1% For the Planet. Members must donate at least onepercent of sales to environmental non-profits. Mr. Kahn worked with Jeff Olson of the NationalForest Foundation to come up with a fun, unique way of promoting the National Forest Foundationwhile satisfying Locals’ 1% pledge.
“When Mr. Kahn told me that Locals Have More Fun not only wanted to donate to but alsopromote the National Forest Foundation and our carbon offset program, I was very excited”,says Olson. “With budget cuts, it isn’t easy for us to hit all of the events that cater to our targetmarket. Locals Have More Fun and their OR Booth provided a great outlet for the NationalForest Foundation and information related to our carbon offset program.”
Founded in 2006, Locals Have More Fun is a sustainable clothing business depicting the locals' lifestyle. The company focuses on outdoor retailers who understand the value of outdoor activities, maintain environmentally friendly business practices, and promte local small business initiatives. Locals Have More Fun products are currently available at retailers in Colorado, Nevada, New Mexico, and Utah. The company's headquarters is located in Park City, UT.
For more information, interviews and images, please contact Head Local, Brian Kahn
When: January 22-25, 2008
Where: Booth Br 724, Satl Palace Convention Center, Salt Lake City, UT
Show information: http://www.outdoorretailer.com/
National Forest Foundation: http://www.nationalforestfoundation.org/
1% For the Planet: http://www.onepercentfortheplanet.org/
Locals Have More Fun ®
Brian Kahn
4229 Southridge Ct.
Park City UT 84098
435-659-6217
brian@localshavemorefun.com
Park City, UT, January 15th, 2009 — Locals Have More Fun will be offsetting 100 Tons of carbondioxide emissions during the 4 day Outdoor Retailer Winter Market in Salt Lake City, UT. This translates into 200 trees being planted with the National Forest Foundation as the Park City, UTbased eco friendly lifestyle line lives up to its byline: “Protecting the Places We Live and Play™”.
“Depicting the ‘locals’ lifestyle comes with a price”, says owner Brian Kahn. “That price isprotecting the very lifestyle that locals and destination town tourists know so well. We realizedthat much of the land that destination towns are in or are adjacent to are also National Forests.Planting trees would be a great way to offset our carbon footprint and increase thesustainability of our playground.”
Locals Have More Fun will give away reusable cups each day at 1:30pm. The cups will beimprinted with: “100 Tons Equals 200 Trees”. “What better way to kick off “social hour” thancoming by and picking up a cup that is eco friendly and represents a carbon-offsetting tree!”
Locals Have More Fun is a member of 1% For the Planet. Members must donate at least onepercent of sales to environmental non-profits. Mr. Kahn worked with Jeff Olson of the NationalForest Foundation to come up with a fun, unique way of promoting the National Forest Foundationwhile satisfying Locals’ 1% pledge.
“When Mr. Kahn told me that Locals Have More Fun not only wanted to donate to but alsopromote the National Forest Foundation and our carbon offset program, I was very excited”,says Olson. “With budget cuts, it isn’t easy for us to hit all of the events that cater to our targetmarket. Locals Have More Fun and their OR Booth provided a great outlet for the NationalForest Foundation and information related to our carbon offset program.”
Founded in 2006, Locals Have More Fun is a sustainable clothing business depicting the locals' lifestyle. The company focuses on outdoor retailers who understand the value of outdoor activities, maintain environmentally friendly business practices, and promte local small business initiatives. Locals Have More Fun products are currently available at retailers in Colorado, Nevada, New Mexico, and Utah. The company's headquarters is located in Park City, UT.
For more information, interviews and images, please contact Head Local, Brian Kahn
When: January 22-25, 2008
Where: Booth Br 724, Satl Palace Convention Center, Salt Lake City, UT
Show information: http://www.outdoorretailer.com/
National Forest Foundation: http://www.nationalforestfoundation.org/
1% For the Planet: http://www.onepercentfortheplanet.org/
Wednesday, January 14, 2009
Tuesday, January 13, 2009
MCLEAN, Va. -- While the overall retail market struggled to make it into the black after Thanksgiving, the snow sports market remained healthy with 3% growth according to SnowSports Industries America's (SIA) exclusive research. August to November snow sports sales surpassed $917 million as the overall retail market faltered in the recession's nadir.
"Retail trade sales were down 2.0 percent from October 2008 and were 8.5 percent below last year." (U.S. Census Bureau, Advance Monthly Sales for Retail Trade and Food Services, November 2008).
SIA further reports that carryover and juniors' equipment sales continued to lead the snow sports hard goods market while sales of this season's alpine ski and snowboard equipment sagged. Cross country ski equipment is a bright spot in the hard goods category with 14% growth season over season. Apparel sales reached $400 million so far this season representing 2% growth over August through November sales in 2007. Apparel suits, anything fleece, snowboard apparel, hats and gloves flew off the shelves as winter made its presence known across the country. Accessories that anyone on the slopes may need including goggles, helmets and wax got hotter as the temperatures got colder. In fact, all accessories sales increased 7% compared to season to date sales in November 2007.
Sales of carryover gear continued to account for a significant portion of equipment sales in November. Carryover accounted for 30% of skis, 23% of snowboards, 21% of ski boots, and 23% of snowboard boots sold August to November 2008. Compare that to last season's August to November results when carryover sales accounted for just 20% of skis and 21% of snowboards sold and millions fewer dollars spent. However, sales of current year model alpine ski equipment sagged heavily with most ski categories down significantly. In fact, excluding carryover sales, current model alpine ski sales are down about 16%. Ski prices are up across the board but dollar sales of skis (including carryover) are down almost 7% despite the increase. Cross country equipment was a very bright spot in the equipment market in November with sales of nearly $9.5 million from August through November, a 14% increase over last season's August to November sales. Snowboard equipment sales were up 3% overall and were selling particularly well online, where sales have increased 25% compared to August to November sales last season.
Parents didn't slow their spending on equipment and apparel for the kids in November. Overall, junior's equipment sales increased 12%; junior ski sales were up 21% in dollars, junior snowboard sales increased 1% in dollars. Parents were not skimping on apparel for their kids either, junior apparel sales increased 7% and a surprise in the numbers was sales of junior snow suits that increased more than 40% in units and in dollars.
"I bought all the gear, clothing and lessons my daughter needed to start skiing because she's 5 years old and I want her to have the same great experiences on the slopes that I had when I was a kid. I can wait until nextyear for new skis." Michelle Mikesell, WISP Resort, Deep Creek, Maryland
The Internet channel slowed the pace of growth in November gaining 13% in dollars and 23% in units compared to August to November 2007. Overall, consumers spent $202 million on snow sports equipment, apparel, and accessories online. Internet sales comprised 22% of all the dollars consumers spent on snow sports products in the U.S. between August 1 and November 30, 2008.
Specialty shops were responsible for $559 million of the $917 million in total sales (includes specialty shops, chain stores, and online sales) for the snow sports marketplace August through November 2008.Specialty store sales increased slightly season over season in November.
Consumers still prefer to buy their equipment in specialty shops. In fact, 79% of alpine equipment, 72% of Nordic gear and 67% of all snowboard equipment was sold in specialty shops so far this season.
Chain stores' equipment sales continue to sink with total decreases of 21% in dollars and 19% in units. Alpine ski sales are down 24% and snowboard equipment sales decreased 22%. Chain stores equipment sales accounted for just 11% of all equipment sales in the U.S. snow sports marketplace from August to November. Apparel sales made up half of all chain store snow sports sales August through November 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. Note: The August to November retail data does not include resort retail shops.
"Retail trade sales were down 2.0 percent from October 2008 and were 8.5 percent below last year." (U.S. Census Bureau, Advance Monthly Sales for Retail Trade and Food Services, November 2008).
SIA further reports that carryover and juniors' equipment sales continued to lead the snow sports hard goods market while sales of this season's alpine ski and snowboard equipment sagged. Cross country ski equipment is a bright spot in the hard goods category with 14% growth season over season. Apparel sales reached $400 million so far this season representing 2% growth over August through November sales in 2007. Apparel suits, anything fleece, snowboard apparel, hats and gloves flew off the shelves as winter made its presence known across the country. Accessories that anyone on the slopes may need including goggles, helmets and wax got hotter as the temperatures got colder. In fact, all accessories sales increased 7% compared to season to date sales in November 2007.
Sales of carryover gear continued to account for a significant portion of equipment sales in November. Carryover accounted for 30% of skis, 23% of snowboards, 21% of ski boots, and 23% of snowboard boots sold August to November 2008. Compare that to last season's August to November results when carryover sales accounted for just 20% of skis and 21% of snowboards sold and millions fewer dollars spent. However, sales of current year model alpine ski equipment sagged heavily with most ski categories down significantly. In fact, excluding carryover sales, current model alpine ski sales are down about 16%. Ski prices are up across the board but dollar sales of skis (including carryover) are down almost 7% despite the increase. Cross country equipment was a very bright spot in the equipment market in November with sales of nearly $9.5 million from August through November, a 14% increase over last season's August to November sales. Snowboard equipment sales were up 3% overall and were selling particularly well online, where sales have increased 25% compared to August to November sales last season.
Parents didn't slow their spending on equipment and apparel for the kids in November. Overall, junior's equipment sales increased 12%; junior ski sales were up 21% in dollars, junior snowboard sales increased 1% in dollars. Parents were not skimping on apparel for their kids either, junior apparel sales increased 7% and a surprise in the numbers was sales of junior snow suits that increased more than 40% in units and in dollars.
"I bought all the gear, clothing and lessons my daughter needed to start skiing because she's 5 years old and I want her to have the same great experiences on the slopes that I had when I was a kid. I can wait until nextyear for new skis." Michelle Mikesell, WISP Resort, Deep Creek, Maryland
The Internet channel slowed the pace of growth in November gaining 13% in dollars and 23% in units compared to August to November 2007. Overall, consumers spent $202 million on snow sports equipment, apparel, and accessories online. Internet sales comprised 22% of all the dollars consumers spent on snow sports products in the U.S. between August 1 and November 30, 2008.
Specialty shops were responsible for $559 million of the $917 million in total sales (includes specialty shops, chain stores, and online sales) for the snow sports marketplace August through November 2008.Specialty store sales increased slightly season over season in November.
Consumers still prefer to buy their equipment in specialty shops. In fact, 79% of alpine equipment, 72% of Nordic gear and 67% of all snowboard equipment was sold in specialty shops so far this season.
Chain stores' equipment sales continue to sink with total decreases of 21% in dollars and 19% in units. Alpine ski sales are down 24% and snowboard equipment sales decreased 22%. Chain stores equipment sales accounted for just 11% of all equipment sales in the U.S. snow sports marketplace from August to November. Apparel sales made up half of all chain store snow sports sales August through November 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. Note: The August to November retail data does not include resort retail shops.
November Outdoor Sales Slow, Accessories Remain Bright Spot
The difficult economic situation slowed outdoor industry sales in November, according to the most recent edition of The Outdoor Industry Association (OIA) Outdoor Topline Report, produced for OIA by the Leisure Trends Group.
According to The OIA Outdoor Topline Report, retail sales for all core outdoor stores (chain, internet, specialty)* fell 11% in dollars ($407,383,909) compared to November 2007($458,334,314), the first month of overall dollar sales decline since the recession started in December 2007. All three store channels and all four major product categories (equipment, equipment accessories, apparel and footwear) declined in November.
The day after Thanksgiving has long been the traditional kick-off of the Holiday shopping season. This year, Black Friday occurred on November 28th, leaving only three big shopping days in November. Black Monday, traditionally the biggest day for Internet deals and sales, occurred on December 1st, removing those online sales from November altogether. It remains to be seen how much of a boost Black Monday sales will give December, but the timing could only hurt November’s tally. Last year, Black Friday fell on November 23rd and Black Monday fell on November 26th.
Internet sales saw their first month of negative sales growth since the OIA Topline began tracking online sales in 2005. The channel declined 7% in overall dollars compared to November 2007. All four major product categories slid in November. Core outdoor chain stores lost 19% in overall dollar sales compared to November 2007, with declines coming from all four product categories. Specialty stores fell 8% from last November, as all four major product categories suffered losses.
All paddle product sales from all three channels (specialty, chain, and internet) fell 16% in units and 19% in dollars with retail prices dropping 4%. All three store channels declined in November, suffering across-the-board losses compared to November 2007. However, November is a very small month for paddlesport sales, accounting for less than 3% of each year’s total. Year to date, overall dollar sales were down just 2%.
Several bright spots emerged in November. Looking at all three channels, small items such as water bottles, headwear and handwear increased sales. Winter boots also fared well; the category grew 6% compared to last November.
November sales account for about 9% of a typical year’s total dollars. This November’s declines were not enough to affect the entire year. Year to date, all three channels together were up 5% in total unit sales and 6% in dollar sales. In YTD dollars, all equipment increased 8%, equipment accessories 10%, apparel 5% and footwear 4%. All three store channels’ YTD dollar sales remained in the black through the end of November.
According to The OIA Outdoor Topline Report, retail sales for all core outdoor stores (chain, internet, specialty)* fell 11% in dollars ($407,383,909) compared to November 2007($458,334,314), the first month of overall dollar sales decline since the recession started in December 2007. All three store channels and all four major product categories (equipment, equipment accessories, apparel and footwear) declined in November.
The day after Thanksgiving has long been the traditional kick-off of the Holiday shopping season. This year, Black Friday occurred on November 28th, leaving only three big shopping days in November. Black Monday, traditionally the biggest day for Internet deals and sales, occurred on December 1st, removing those online sales from November altogether. It remains to be seen how much of a boost Black Monday sales will give December, but the timing could only hurt November’s tally. Last year, Black Friday fell on November 23rd and Black Monday fell on November 26th.
Internet sales saw their first month of negative sales growth since the OIA Topline began tracking online sales in 2005. The channel declined 7% in overall dollars compared to November 2007. All four major product categories slid in November. Core outdoor chain stores lost 19% in overall dollar sales compared to November 2007, with declines coming from all four product categories. Specialty stores fell 8% from last November, as all four major product categories suffered losses.
All paddle product sales from all three channels (specialty, chain, and internet) fell 16% in units and 19% in dollars with retail prices dropping 4%. All three store channels declined in November, suffering across-the-board losses compared to November 2007. However, November is a very small month for paddlesport sales, accounting for less than 3% of each year’s total. Year to date, overall dollar sales were down just 2%.
Several bright spots emerged in November. Looking at all three channels, small items such as water bottles, headwear and handwear increased sales. Winter boots also fared well; the category grew 6% compared to last November.
November sales account for about 9% of a typical year’s total dollars. This November’s declines were not enough to affect the entire year. Year to date, all three channels together were up 5% in total unit sales and 6% in dollar sales. In YTD dollars, all equipment increased 8%, equipment accessories 10%, apparel 5% and footwear 4%. All three store channels’ YTD dollar sales remained in the black through the end of November.
SnowSports Industries America's SnowSports Consumer Panel Tells All
MCLEAN, Va., -- SnowSports Industries America (SIA) released information from their SnowSports Consumer Panel. Overall, skiers and riders are concerned about the economy but they will participate as they always do, particularly if the snow continues to fall. Research shows that snowfall is a much better predictor of participation and sales than the economy. Despite economic and logistical barriers, so far this season the snow is excellent and snow sports sales of equipment, apparel and accessories were up 9% driven by carryover sales. The results of the December 2008 SIA Consumer Panel and the SIA Retail Audit for August through November sales indicate that skiers and riders may pinch their pennies on the slopes this season, but they will be on the slopes.
Top-line findings are:
-- Dismal economic conditions will affect the majority of snow sports consumers but they plan to limit spending by pinching pennies, not by canceling their plans to ski and ride this season.
-- Snow Sports consumers are hunting for bargains and buying when they find them.
-- Skiers and riders use the Internet to research gear and ski vacations before they purchase and more of them are purchasing online this season.
-- Airline bag fees are keeping 1 in 5 skiers/riders from taking their gear with them when they fly.
-- Half of snow sports consumers do not know they can ship their gear cheaply and efficiently to their destination using FedEx(R).
The December 2008 SIA Snow Sports Consumer Panel Results
The first SIA Consumer Panel Poll of the 2008.09 season was conducted in December 2008 and the results indicate that skiers and riders will be affected but not deterred by dismal economic conditions. The SIA Panel responses dovetailed nicely with the information SIA receives from monitoring retail sales across the country: that skiers and riders plan to spend their money on snow sports this year, but they will be pinching their pennies.
"I'm skiing as long as I have some kind of gainful employment and that seems likely for the next year or two while I weather the recession," said a SIA Panel member.
We asked the SIA Panel how the economy was affecting their snow sports spending, about what types of plans they were making to ski and ride this season, about their Internet habits, and about their willingness to take their skis and boards with them when they fly. The Panel told us they may hold off on equipment purchases during these difficult economic times but the majority plan to spend about the same amount they spent last year. The SIA Snow Sports Consumer Panel consists of core (those that participate reliably multiple times each season) participants, most own their own equipment, almost all plan to ski or ride this season on multiple occasions. Overall, Panel members' responses match up well with the data coming out of retail sales, which show that bargain hunters were out in force at the pre-season sales and they were happy to buy equipment on sale and equipment for their kids, but they were holding off on purchases of this season's equipment models.
Each year, about 1 in 6 Panel members purchase new skis or a new board, but they buy accessories and apparel every year. This season, about one-third of our Panel members say that they plan to hold off on buying new equipment this season specifically because of economic conditions. Last season at this time, 28% of panel members told us they would not purchase new equipment because they "didn't need anything new." Their reasons for not buying equipment have shifted somewhat, but the number of consumers who will not buy has not shifted dramatically.
Most Panel members use the Internet to research their snow sports vacation options and their equipment before they buy. Surprisingly, they use the Internet far more to research products and services than they use it to keep up with athletes and events or to meet other people interested in snow sports. They are clicking to buy more frequently too; online retail dollars sales are up 13% compared to August through November sales in 2007.
August to November 2008 snow sports retail sales were primarily driven by pre-season clearance sales. Sales of carryover gear accounted for a significant portion of snow sports equipment sales. Sales like the "SkiBonkers" sale in Seattle, which are dominated by leftover inventory from the past season, help consumers find bargains on carryover items. Carryover is officially defined as any item that sells for less than the average retail cost for that item. Carryover accounted for 30% of skis, 23% of snowboards, 21% of ski boots, and 23% of snowboard boots sold August to November 2008. Compare that to last season's August to November results when carryover sales accounted for just 20% of skis and 21% of snowboards sold and millions fewer dollars spent. Sales of current year model alpine ski equipment paint a different picture of sales with most ski categories down significantly. Ski prices are up across the board but dollar sales of skis (including carryover) are down almost 7% despite the increase. Excluding carryover sales, current model alpine ski sales are down about 16%.
Change Dollars $Dollars Sold Aug - Nov Aug - Nov 2007 to Avg. Price Avg. Price Equipment Category 2008 Aug - Nov 2008 Nov 2007 Nov 2008 All Alpine Skis $79,377,471 -6.54% $327.18 $318.89 All Carryover Skis (Flat and Systems) $18,374,413 39.77% $231.97 $246.26 Junior Skis $5,295,786 18.73% $128.54 $148.45 All Snowboards $49,979,910 2.29% $251.22 $251.23 Carryover Snowboards $8,480,397 40.73% $158.82 $175.48 Junior Snowboards $3,214,807 1.54% $149.26 $157.89 *All Women's Products $253,441,281 0% $110.80 $105.88 All Apparel $402,876,770 2.36% $127.01 $119.58 All Accessories $247,886,072 7.80% $28.99 $30.67
Source: SIA Retail Audit 2008.09 August to November Sales, All Stores (includes Specialty, Chain, and Online Retail) *All women's products does not include carryover equipment, apparel, or accessories
Snow sports consumers are using the Internet more and more every season to research and compare gear, to plan their vacations and to buy gear. Last season, Internet sales increased 46% in dollars to $492 million and that trend continued in the early part of the 2008.09 season. In fact, 70% of SIA Panel members told us they use the Internet to research and compare equipment, and 63% said they like to plan their snow sports vacations online. Just a few use the Internet to meet others interested in snow sports and 4 in 10 keep up with their favorite professional skiers and riders online. This shift in consumer behavior presents excellent marketing and revenue opportunities for both manufacturers and retailers looking to capture their target audience by providing online consumers with good information about their gear and giving them the opportunity to buy the gear immediately after they make their decisions about which gear they would like to purchase.
The vast majority of snow sports core participants own their own equipment and most like to take it with them when they fly to a ski/ride destination. Unfortunately, the airlines have recently begun charging high fees for extra bags, particularly if they are oversized or overweight. "On American Airlines, for example, a coach customer checking skis, a boot bag and a suitcase for clothing would pay $140 each way in luggage fees. Skiers who can cram all their clothes into a boot bag -- and keep it under 50 pounds -- can avoid the $100 fee for the third bag." -- David Koenig, Associated Press, published November 28, 2008 at 12:05 a.m. Skiers and riders have been hit hard by these fees and many are choosing not to take their equipment with them to save a few bucks. In fact, 20% of our Panel members said that they would not take their equipment with them on a plane this season due to the increases in baggage fees. There are alternatives to bringing gear on the plane and about 60% of core participants know that they can easily and inexpensively (far cheaper than renting equipment) Ship Your Gear using FedEx(R). For more information about the Ship Your Gear Program, visit SnowLink at snowlink.com.
FedEx Ground(R) Sample List RatesAll sample rates* are based on a standard ski/snowboard bag (72" x 12" x 8"), 25 lbs and may change at ship date.
Ground Origin Destination** Transit Times FedEx Rate Boston, MA (02128) Aspen, CO 4 $32.44 Dallas, TX (75261) Breckenridge, CO 2 $23.49 Miami, FL (33102) Keystone, CO 4 $32.44 New York, NY (10001) Steamboat Spring, CO 4 $32.44 San Francisco, CA (94128) Vail, CO 3 $23.49 Boston, MA (02128) Deer Valley, UT 5 $38.10 Dallas, TX (75261) Deer Valley, UT 3 $23.49 Miami, FL (33102) Park City, UT 5 $38.10 New York, NY (10001) Park City, UT 5 $38.10 San Francisco, CA (94128) Salt Lake City, UT 2 $20.80 Boston, MA (02128) Heavenly, CA 5 $38.14 Dallas, TX (75261) Squaw Valley, CA 3 $23.49 Miami, FL (33102) Squaw Valley, CA 5 $38.14 New York, NY (10001) Kirkwood, CA 5 $38.14
MethodologyUsing the SnowSports Consumer Panel, a product of SnowSports Industries America (SIA), an online survey was sent to panel members on December 4, 2008. The objective of the survey was to determine how poor economic conditions, high baggage fees and the Internet affect the spending habits of snow sports consumers. The survey was sent to 3,201 panel members, with a total of 241 responding for a margin of error of + or - 3%.
Top-line findings are:
-- Dismal economic conditions will affect the majority of snow sports consumers but they plan to limit spending by pinching pennies, not by canceling their plans to ski and ride this season.
-- Snow Sports consumers are hunting for bargains and buying when they find them.
-- Skiers and riders use the Internet to research gear and ski vacations before they purchase and more of them are purchasing online this season.
-- Airline bag fees are keeping 1 in 5 skiers/riders from taking their gear with them when they fly.
-- Half of snow sports consumers do not know they can ship their gear cheaply and efficiently to their destination using FedEx(R).
The December 2008 SIA Snow Sports Consumer Panel Results
The first SIA Consumer Panel Poll of the 2008.09 season was conducted in December 2008 and the results indicate that skiers and riders will be affected but not deterred by dismal economic conditions. The SIA Panel responses dovetailed nicely with the information SIA receives from monitoring retail sales across the country: that skiers and riders plan to spend their money on snow sports this year, but they will be pinching their pennies.
"I'm skiing as long as I have some kind of gainful employment and that seems likely for the next year or two while I weather the recession," said a SIA Panel member.
We asked the SIA Panel how the economy was affecting their snow sports spending, about what types of plans they were making to ski and ride this season, about their Internet habits, and about their willingness to take their skis and boards with them when they fly. The Panel told us they may hold off on equipment purchases during these difficult economic times but the majority plan to spend about the same amount they spent last year. The SIA Snow Sports Consumer Panel consists of core (those that participate reliably multiple times each season) participants, most own their own equipment, almost all plan to ski or ride this season on multiple occasions. Overall, Panel members' responses match up well with the data coming out of retail sales, which show that bargain hunters were out in force at the pre-season sales and they were happy to buy equipment on sale and equipment for their kids, but they were holding off on purchases of this season's equipment models.
Each year, about 1 in 6 Panel members purchase new skis or a new board, but they buy accessories and apparel every year. This season, about one-third of our Panel members say that they plan to hold off on buying new equipment this season specifically because of economic conditions. Last season at this time, 28% of panel members told us they would not purchase new equipment because they "didn't need anything new." Their reasons for not buying equipment have shifted somewhat, but the number of consumers who will not buy has not shifted dramatically.
Most Panel members use the Internet to research their snow sports vacation options and their equipment before they buy. Surprisingly, they use the Internet far more to research products and services than they use it to keep up with athletes and events or to meet other people interested in snow sports. They are clicking to buy more frequently too; online retail dollars sales are up 13% compared to August through November sales in 2007.
August to November 2008 snow sports retail sales were primarily driven by pre-season clearance sales. Sales of carryover gear accounted for a significant portion of snow sports equipment sales. Sales like the "SkiBonkers" sale in Seattle, which are dominated by leftover inventory from the past season, help consumers find bargains on carryover items. Carryover is officially defined as any item that sells for less than the average retail cost for that item. Carryover accounted for 30% of skis, 23% of snowboards, 21% of ski boots, and 23% of snowboard boots sold August to November 2008. Compare that to last season's August to November results when carryover sales accounted for just 20% of skis and 21% of snowboards sold and millions fewer dollars spent. Sales of current year model alpine ski equipment paint a different picture of sales with most ski categories down significantly. Ski prices are up across the board but dollar sales of skis (including carryover) are down almost 7% despite the increase. Excluding carryover sales, current model alpine ski sales are down about 16%.
Change Dollars $Dollars Sold Aug - Nov Aug - Nov 2007 to Avg. Price Avg. Price Equipment Category 2008 Aug - Nov 2008 Nov 2007 Nov 2008 All Alpine Skis $79,377,471 -6.54% $327.18 $318.89 All Carryover Skis (Flat and Systems) $18,374,413 39.77% $231.97 $246.26 Junior Skis $5,295,786 18.73% $128.54 $148.45 All Snowboards $49,979,910 2.29% $251.22 $251.23 Carryover Snowboards $8,480,397 40.73% $158.82 $175.48 Junior Snowboards $3,214,807 1.54% $149.26 $157.89 *All Women's Products $253,441,281 0% $110.80 $105.88 All Apparel $402,876,770 2.36% $127.01 $119.58 All Accessories $247,886,072 7.80% $28.99 $30.67
Source: SIA Retail Audit 2008.09 August to November Sales, All Stores (includes Specialty, Chain, and Online Retail) *All women's products does not include carryover equipment, apparel, or accessories
Snow sports consumers are using the Internet more and more every season to research and compare gear, to plan their vacations and to buy gear. Last season, Internet sales increased 46% in dollars to $492 million and that trend continued in the early part of the 2008.09 season. In fact, 70% of SIA Panel members told us they use the Internet to research and compare equipment, and 63% said they like to plan their snow sports vacations online. Just a few use the Internet to meet others interested in snow sports and 4 in 10 keep up with their favorite professional skiers and riders online. This shift in consumer behavior presents excellent marketing and revenue opportunities for both manufacturers and retailers looking to capture their target audience by providing online consumers with good information about their gear and giving them the opportunity to buy the gear immediately after they make their decisions about which gear they would like to purchase.
The vast majority of snow sports core participants own their own equipment and most like to take it with them when they fly to a ski/ride destination. Unfortunately, the airlines have recently begun charging high fees for extra bags, particularly if they are oversized or overweight. "On American Airlines, for example, a coach customer checking skis, a boot bag and a suitcase for clothing would pay $140 each way in luggage fees. Skiers who can cram all their clothes into a boot bag -- and keep it under 50 pounds -- can avoid the $100 fee for the third bag." -- David Koenig, Associated Press, published November 28, 2008 at 12:05 a.m. Skiers and riders have been hit hard by these fees and many are choosing not to take their equipment with them to save a few bucks. In fact, 20% of our Panel members said that they would not take their equipment with them on a plane this season due to the increases in baggage fees. There are alternatives to bringing gear on the plane and about 60% of core participants know that they can easily and inexpensively (far cheaper than renting equipment) Ship Your Gear using FedEx(R). For more information about the Ship Your Gear Program, visit SnowLink at snowlink.com.
FedEx Ground(R) Sample List RatesAll sample rates* are based on a standard ski/snowboard bag (72" x 12" x 8"), 25 lbs and may change at ship date.
Ground Origin Destination** Transit Times FedEx Rate Boston, MA (02128) Aspen, CO 4 $32.44 Dallas, TX (75261) Breckenridge, CO 2 $23.49 Miami, FL (33102) Keystone, CO 4 $32.44 New York, NY (10001) Steamboat Spring, CO 4 $32.44 San Francisco, CA (94128) Vail, CO 3 $23.49 Boston, MA (02128) Deer Valley, UT 5 $38.10 Dallas, TX (75261) Deer Valley, UT 3 $23.49 Miami, FL (33102) Park City, UT 5 $38.10 New York, NY (10001) Park City, UT 5 $38.10 San Francisco, CA (94128) Salt Lake City, UT 2 $20.80 Boston, MA (02128) Heavenly, CA 5 $38.14 Dallas, TX (75261) Squaw Valley, CA 3 $23.49 Miami, FL (33102) Squaw Valley, CA 5 $38.14 New York, NY (10001) Kirkwood, CA 5 $38.14
MethodologyUsing the SnowSports Consumer Panel, a product of SnowSports Industries America (SIA), an online survey was sent to panel members on December 4, 2008. The objective of the survey was to determine how poor economic conditions, high baggage fees and the Internet affect the spending habits of snow sports consumers. The survey was sent to 3,201 panel members, with a total of 241 responding for a margin of error of + or - 3%.
Did you hear?...Welcome 2009: Number of obese Americans now surpasses number of "just" overweight
A study from the National Center for Health Statistics revealed that the number of obese American adults is now higher than the number of those who are overweight. While the prevalence of obesity has more than doubled since 1980, the number of those who are overweight has remained stable over the same time period.
Both are terms used to describe levels of bodyweight that are generally considered higher than what is healthy, with obese higher. Overweight is defined as those with a BMI (body mass index) between 25 and 29.9, which per the U.S. Centers for Disease Control and Prevention corresponds to approximately 169 to 202 pounds for somebody who is 5-foot-9. Obese is a BMI higher than 30 or, for the same 5-9 person weighing more than 203 pounds.
The National Center for Health Statistics’ numbers show that more than 34 percent of Americans are now obese, compared to 32.7 percent who are overweight. It said about 6 percent are "extremely" obese.
More than a third of adults, or over 72 million people, were obese in 2005-2006, according to the NCHS report. The figures come from the 2005-2006 survey and are the most current available.
The current numbers are based on a survey of 4,356 adults over the age of 20 who take part in a regular government survey of health, said the NCHS, which is part of the CDC.
Both are terms used to describe levels of bodyweight that are generally considered higher than what is healthy, with obese higher. Overweight is defined as those with a BMI (body mass index) between 25 and 29.9, which per the U.S. Centers for Disease Control and Prevention corresponds to approximately 169 to 202 pounds for somebody who is 5-foot-9. Obese is a BMI higher than 30 or, for the same 5-9 person weighing more than 203 pounds.
The National Center for Health Statistics’ numbers show that more than 34 percent of Americans are now obese, compared to 32.7 percent who are overweight. It said about 6 percent are "extremely" obese.
More than a third of adults, or over 72 million people, were obese in 2005-2006, according to the NCHS report. The figures come from the 2005-2006 survey and are the most current available.
The current numbers are based on a survey of 4,356 adults over the age of 20 who take part in a regular government survey of health, said the NCHS, which is part of the CDC.
Dismal Holiday Pushes Domestic Mills Over the Brink
The dismal holiday season at retail has forced a slew of textile plant closings, dealing another blow to the viability of an already withering domestic textile and apparel industry.
Invista, Milliken & Co. and Gildan Activewear are among the companies that are cutting back.
The frequency of factory closings has gained momentum since late September. As economic conditions worsened through October and November and holiday orders failed to materialize, the pace of layoffs and plant shutdowns accelerated, with North Carolina, Georgia and Tennessee particularly hard hit.
The recent spate of layoffs and closures hasn’t been limited to the few remaining independent mills, said Lloyd Wood, director of membership and media outreach at the American Manufacturing Trade Action Coalition.
“You’re seeing the most efficient people out there closing plants,” Wood said. “The weak sisters have long disappeared, and you’re seeing the best of the best either drastically reduce operations in some instances or shut down plants.”
Invista, which manufacturers products such as Coolmax and Lycra, has made significant cutbacks. In October, the company said it would trim 400 of its 500 workers at a carpet fiber facility in Seaford, Del. This was followed in early December with the announcement that the company would lay off more than 200 out of 600 employees at a facility in Waynesboro, Va. Invista said a plunge in demand for home carpeting forced the company to halt nylon production at the plant. Soon after Christmas, Invista said it was shuttering a yarn processing plant in Athens, Ga., with 50 workers losing jobs.
Milliken & Co. and Gildan Activewear have also been forced to reduce costs. Milliken announced the closing of a textile plant in Barnwell, S.C., on Dec. 30 that employed 125 people. In releasing its year-end financial results on Dec. 11, Gildan said it would “phase out sock finishing operations in the U.S. by the end of June and consolidate operations in Honduras, in order to remain globally competitive in the current economic conditions.”
As a result, the company said it would eliminate 200 jobs at its facility in Fort Payne, Ala., and close a knitting factory in Virginia that employed 180 people. Gildan also plans to expand production capabilities in the Dominican Republic.
Smaller textile players that had been treading water in recent years reached the end of the line when holiday orders failed to materialize and the chance for future orders disappeared. Belmont, N.C.-based yarn manufacturer R.L. Stowe Mills Inc. said on Jan. 5 that it would close within 60 days, bringing the company’s 108-year run to an end.
“Business conditions in the fourth quarter deteriorated suddenly and dramatically,” said president and chief executive officer D. Harding Stowe. “Looking forward, management does not see sales returning to levels sufficient to sustain business.”
The coalition’s Wood said, “It’s not about competence. It really is about the economic conditions and the underlying [government trade] policy. Until one of those things is fixed, it’s going to be tough for anybody.”
According to the U.S. Department of Labor, a total of 2.6 million jobs were lost in 2008. More than half evaporated in the last four months of the year, and the unemployment rate rose to 7.2 percent last month from 6.7 percent in November. Textile mills manufacturing apparel fabric eliminated 2,900 positions last year to employ 138,800 workers. Home furnishing fabric manufacturers, known as textile product mills, cut 1,700 positions to 143,500. Apparel manufacturers eliminated 2,800 jobs to 185,300.
Since the push to manufacture abroad that began in the Seventies, domestic apparel manufacturing has steadily dwindled. In 1973, apparel manufacturing employment topped out at 1.5 million, while the textile industry peaked at 1.3 million in 1951.
The downward trend is expected to continue. According to the Bureau of Labor Statistics’ Career Guide to Industries, about 595,000 people were employed in the textile and apparel manufacturing industries in 2006. That number is expected to contract by more than 35 percent by 2016. California, Georgia and North Carolina employ more than 40 percent of all workers in the industry.
Invista, Milliken & Co. and Gildan Activewear are among the companies that are cutting back.
The frequency of factory closings has gained momentum since late September. As economic conditions worsened through October and November and holiday orders failed to materialize, the pace of layoffs and plant shutdowns accelerated, with North Carolina, Georgia and Tennessee particularly hard hit.
The recent spate of layoffs and closures hasn’t been limited to the few remaining independent mills, said Lloyd Wood, director of membership and media outreach at the American Manufacturing Trade Action Coalition.
“You’re seeing the most efficient people out there closing plants,” Wood said. “The weak sisters have long disappeared, and you’re seeing the best of the best either drastically reduce operations in some instances or shut down plants.”
Invista, which manufacturers products such as Coolmax and Lycra, has made significant cutbacks. In October, the company said it would trim 400 of its 500 workers at a carpet fiber facility in Seaford, Del. This was followed in early December with the announcement that the company would lay off more than 200 out of 600 employees at a facility in Waynesboro, Va. Invista said a plunge in demand for home carpeting forced the company to halt nylon production at the plant. Soon after Christmas, Invista said it was shuttering a yarn processing plant in Athens, Ga., with 50 workers losing jobs.
Milliken & Co. and Gildan Activewear have also been forced to reduce costs. Milliken announced the closing of a textile plant in Barnwell, S.C., on Dec. 30 that employed 125 people. In releasing its year-end financial results on Dec. 11, Gildan said it would “phase out sock finishing operations in the U.S. by the end of June and consolidate operations in Honduras, in order to remain globally competitive in the current economic conditions.”
As a result, the company said it would eliminate 200 jobs at its facility in Fort Payne, Ala., and close a knitting factory in Virginia that employed 180 people. Gildan also plans to expand production capabilities in the Dominican Republic.
Smaller textile players that had been treading water in recent years reached the end of the line when holiday orders failed to materialize and the chance for future orders disappeared. Belmont, N.C.-based yarn manufacturer R.L. Stowe Mills Inc. said on Jan. 5 that it would close within 60 days, bringing the company’s 108-year run to an end.
“Business conditions in the fourth quarter deteriorated suddenly and dramatically,” said president and chief executive officer D. Harding Stowe. “Looking forward, management does not see sales returning to levels sufficient to sustain business.”
The coalition’s Wood said, “It’s not about competence. It really is about the economic conditions and the underlying [government trade] policy. Until one of those things is fixed, it’s going to be tough for anybody.”
According to the U.S. Department of Labor, a total of 2.6 million jobs were lost in 2008. More than half evaporated in the last four months of the year, and the unemployment rate rose to 7.2 percent last month from 6.7 percent in November. Textile mills manufacturing apparel fabric eliminated 2,900 positions last year to employ 138,800 workers. Home furnishing fabric manufacturers, known as textile product mills, cut 1,700 positions to 143,500. Apparel manufacturers eliminated 2,800 jobs to 185,300.
Since the push to manufacture abroad that began in the Seventies, domestic apparel manufacturing has steadily dwindled. In 1973, apparel manufacturing employment topped out at 1.5 million, while the textile industry peaked at 1.3 million in 1951.
The downward trend is expected to continue. According to the Bureau of Labor Statistics’ Career Guide to Industries, about 595,000 people were employed in the textile and apparel manufacturing industries in 2006. That number is expected to contract by more than 35 percent by 2016. California, Georgia and North Carolina employ more than 40 percent of all workers in the industry.
Friday, January 9, 2009
November Outdoor Sales Slow, Accessories Remain Bright Spot
The difficult economic situation slowed outdoor industry sales in November, according to the most recent edition of The OIA Outdoor Topline Report.
The day after Thanksgiving has long been the traditional kick-off of the Holiday shopping season. This year, Black Friday occurred on November 28, leaving only three big shopping days in November. Black Monday, traditionally the biggest day for Internet deals and sales, occurred on December 1, removing those online sales from November altogether. It remains to be seen how much of a boost Black Monday sales will give December, but the timing could only hurt November’s tally. Last year, Black Friday fell on November 23 and Black Monday fell on November 26.
November Sales
In monthly sales, retail sales for all core outdoor stores (chain, internet, specialty)* fell 11% in dollars ($407,383,909) compared to November 2007 ($458,334,314), the first month of overall dollar sales decline since the recession started in December 2007. All three store channels and all four major product categories (equipment, equipment accessories, apparel and footwear) declined in November.
Internet sales saw their first month of negative sales growth since the OIA Topline began tracking online sales in 2005. The channel declined 7% in overall dollars compared to November 2007. All four major product categories slid in November. Core outdoor chain stores lost 19% in overall dollar sales compared to November 2007, with declines coming from all four product categories. Specialty stores fell 8% from last November, as all four major product categories suffered losses.
All paddle product sales from all three channels (specialty, chain, and internet) fell 16% in units and 19% in dollars with retail prices dropping 4%. All three store channels declined in November, suffering across-the-board losses compared to November 2007. However, November is a very small month for paddlesport sales, accounting for less than 3% of each year’s total. Year to date, overall dollar sales were down just 2%.
Several bright spots emerged in November. Looking at all three channels, small items such as water bottles, headwear and handwear increased sales. Winter boots also fared well; the category grew 6% compared to last November.
November sales account for about 9% of a typical year’s total dollars. This November’s declines were not enough to affect the entire year. Year-to-date, all three channels together were up 5% in total unit sales and 6% in dollar sales. In YTD dollars, all equipment increased 8%, equipment accessories 10%, apparel 5% and footwear 4%. All three store channels’ YTD dollar sales remained in the black through the end of November.
Wednesday, January 7, 2009
Economic Stimulus Plan may Include
President-elect Barack Obama and congressional leadership have begun to develop the framework for an economic stimulus package. OIA has submitted, along with a diverse coalition of recreation partners, our recommendations on how to put Americans to work, revitalize the economy and invest in recreational infrastructure.
Congressional leaders hope the package will be ready to sign by the new president right after the inauguration. However with the ballooning cost of the package it may be difficult to pass it through both the House and the Senate as quickly as some have predicted.
The rumors around Washington now put the bill in the $850 billion range, which is larger than the recent financial bailout. Most of the money is earmarked for struggling state governments, transportation infrastructure projects which translate into jobs and federal investment in new energy alternatives. With that much money on the table, nearly every group in Washington has been sending their wish list up to Capitol Hill and the president’s transition team.
OIA sent our request directly to Speaker Pelosi and Majority Leader Reid outlining the specific details which includes $125 million for the Land and Water Conservation Fund (LWCF) State Assistance program and $100 million for the Urban Park and Recreation Recovery (UPARR) program. These programs will invest in local communities and give them the necessary resources to preserve, maintain and rehabilitate local recreation infrastructure.
Congressional leaders hope the package will be ready to sign by the new president right after the inauguration. However with the ballooning cost of the package it may be difficult to pass it through both the House and the Senate as quickly as some have predicted.
The rumors around Washington now put the bill in the $850 billion range, which is larger than the recent financial bailout. Most of the money is earmarked for struggling state governments, transportation infrastructure projects which translate into jobs and federal investment in new energy alternatives. With that much money on the table, nearly every group in Washington has been sending their wish list up to Capitol Hill and the president’s transition team.
OIA sent our request directly to Speaker Pelosi and Majority Leader Reid outlining the specific details which includes $125 million for the Land and Water Conservation Fund (LWCF) State Assistance program and $100 million for the Urban Park and Recreation Recovery (UPARR) program. These programs will invest in local communities and give them the necessary resources to preserve, maintain and rehabilitate local recreation infrastructure.
Monday, January 5, 2009
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