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SIA Retailer Advisory Committee Meeting September 23 rd , 2009 Denver , CO

SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

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Page 1: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

SIA Retailer Advisory Committee Meeting

September 23rd, 2009

Denver , CO

Page 2: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

SIA Retail Advisory Committee

A committee of retailers to advise, guide and direct SIA with initiatives for growing the snow

sports industry through specialty retail.

 

Page 3: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO
Page 4: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

AGENDA

Page 5: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

State of the MarketplaceSeptember 2009

Consumer’s Perspective (Slumping Economy and Higher Prices)

• Average 401K became a 201K in 2008/09• Unemployment in double digits and no job is

safe (snow sports demographic rate from 2.1% in March 2008 to 4.7% in August 2009)

• Wage growth flat 2000 to 2007• Lack of vacation time and discretionary

income• Fear

Retailer’s Perspective (Uncertainty and Risk)

• Poor economic conditions made bargain shoppers out of everyone

• 2008/09 season margins thin resulting in less profit and diminished cash flow

• Growing online sales siphon customers from shop floors

• Continued difficulty securing credit• Potential consolidation of retail market• Fear

Supplier’s Perspective• Pre-season equipment orders for equipment

down 20% (early estimate)• Burden of risk falling on suppliers• Credit market still tight • Suppliers covered over $30 million in

retailers’ debt• Marketing costs increasing• Retailers cash flow issues translating into

late receivables• Consolidation – conglomerates buy

struggling smaller brands• Fear

Resort’s Perspective• 57 million Skier/Rider visits for 2008/09

season• Economic conditions improving for next

season• Baby boomers leaving the slopes at

150,000 per year with smaller Gen X behind them

• 2009/10 snowfall unpredictable• Fear

Page 6: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Total Snow Sports Market Executive Summary

Overall Market (Includes Carryover Sales) $760 million in equipment (-6%) $1.1 Billion in apparel (-5.5%) $952 million in accessories ( -2%)

Specialty shop sales (60.5%) - 7% in units - 8% in $ to $1.7 billion

Internet sales (19.4%) +23% in units + 12% in $ to $547 million

Chain stores (20.1%) -3% in units -7% in $ to $567 million

All Specialty Inventories UP .3% units, 11% in $ Equipment up 12% in units and 19% in $ Apparel up 2% in units and 6% in $ Accessories down 2% in units and up 6% in $

30% of all alpine skis and 24% of all snowboards were sold at or below cost in 2008/09

Skier/Rider visits to 57 million for the 2008/09 season down from a record 60.5 million in 2007/08***

Cash flow in retail suffered as margins thinned due to heavy discounting

Consolidation expected for many suppliers and retailers

Pre-season orders for equipment down 20%-30% according to early reports

15 million snow sports participants in the U.S. and almost 9 million that identify themselves with a snow sport but did not participate in 2007/08**

*SIA Retail Audit top lines. **Sports Participation Coalition 2008. ***May 2009 NSAA Statement by M. Berry.

Total Snow Sports Market Executive Summary2008/09 Season

Page 7: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Lost wealth and job losses at every level kept consumers cautious in their discretionary spending particularly for big tickets items for themselves. However, they did keep going to the slopes.

57.4 million skiers rider visits

Overall, the snow sports market was down just 4% in $ and 2% in units but margins hit a ten year low

20% of equipment went out the retailers’ doors at or below cost

CHANGE!!

STATE OF THE INDUSTRY│State of the Snowsports Market

Page 8: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

8

SIA Participation Panel

1 in 14 Americans consider themselves snow sports participants

● SIA collaborated with several other sports oriented organization including the U.S. Golf Association, the Outdoor Industry Association, U.S. Tennis Association, and the Sporting Goods Manufacturing Association to measure broader aspects of snow sports participation than those covered in the National Sporting Goods Association participation data used throughout this report to indicate top line participation trends. More than 41,500 individual surveys were conducted for this study.

● 3.9 million consider themselves skiers or riders but did not participate in 2008.

● There are 14,828,000 (cross country, downhill, freestyle, telemark, snowboard) participants in snow sports.

● Total U.S. Market: 19 million persons.

Page 9: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

0

2,000

4,000

6,000

8,000

10,000

12,000

Skiing (Alpine/Downhill) 10,491 10,362 10,346

Skiing (Cross Country) 3,342 3,530 3,848

Skiing (Freestyle) 2,982 2,817 3,711

Snowboarding 5,998 6,841 7,159

Snowshoeing 2,587 2,400 2,922

Telemarking (Downhill) 1,556 1,173 1,435

2005/06 2006/07 2007/08

41,500 responses

Alpine Ski down 1%

Snowboarding up 5%

Cross Country Up 9%

Source: SIA Particpation Panel Study 2005/06 to 2007/08

Page 10: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Micro Trends 2008.09 Season

• High performance alpine boots up 13% in $• Skis are getting fatter, fat skis sales grew this

season• Reverse camber snowboards changed the

snowboard market• Sales of goggles, helmets, gloves, winter boots,

and wax increased this season• 95,000 apparel suits sold this season, most were

for kids which is 20% growth in units and 9% growth in dollars

Page 11: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Snow Sports Market Average Prices

2007/08 Season 2008/09 Season

Alpine Equipment $254.79 $253.20Snowboard Equipment $183.96 $179.61Nordic Equipment $80.11 $82.72Telemark Equipment $287.86 $287.89Apparel $130.55 $122.12Accessories $30.28 $30.63

SIA Retail Audit, Aug – March 2008/09 Average Prices [Adult only] in All Snow Sports Sales Channels, Adult only, Carryover not included.

Page 12: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Best Sellers All Ages, All Channels

2008/09Alpine Skis

K2 Indy Ski, Jr K2 Luv Bug, Girls K2 T-Nine Sweet Luv ROXY Sweetheart

Ski System, Girls VOLKL Mantra

Snowboards

BURTON – Bullet Series

BURTON – Chopper Series

BURTON – Clash Series

BURTON – Custom Series

BURTON – Feather Series, Wms

LIB TECH – Skate Banana

Nordic Skis

ALPINA SPORTS – Control Ski

FISCHER – Jupiter Control

FISCHER – Vision Desire, Wms

KARHU – KBoom, Junior

SALOMON – Snowscape 7

Source: SIA Retail Audit, all retail sales channels, all ages, all genders units sold Aug – March 2008/09

Page 13: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Retailers, Resorts and Other Wholesale Buyers

2,841Specialty & Chain managements that sell snow sports hard goods

5,181 Specialty & Chain storefronts that sell snow sports hard goods

2,000Other Specialty & Chain managements that sell apparel and/or accessories related to winter sports, but would not be called a “ski / snowboard shop”

900 Downhill & XC ski areas / resorts, includes private and mixed use areas

Changes last year: 103 Managements and 173 Storefronts out of business 65 Managements and 185 Storefronts opened

Page 14: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

The Weather 2009/10 “El Niño is present across the equatorial Pacific Ocean and is expected to strengthen and last through Northern Hemisphere winter 2009/10. By early winter, the determination will be made as to whether it can be classified as an official El Niño” NOAA Seasonal Outlook Sep 2009

In the Northwest El Niño produces warmer than normal temperatures however, El Niño seasons typically do have adequate snowfall, especially at higher elevations. Whistler B.C. is high enough (7,160ft) that its snow usually survives an El Niño

The Sierra Nevada mountain range has mixed results for snowfall during an El Niño events. April 1 snow pack for the Sierra-Nevada Mountains during the eight strong El Niño seasons had four well above average years, and four below-average years, with one water year especially low, 1987-88. If it’s above average, it tends to be “well-above” average in an El Niño year.

For Winter Park and nearby Colorado resorts, the meteorologists typically say with an El Niño there tends to be abundant early snow followed by a dry period and then lots of spring snow. The cascades show few El Niño anomalies.

El Niño snow years average above normal for the nine largest Northeastern cities. The data ranges from New York City having 0.3 inches more to Concord having 6.2 additional inches. Glens Falls generally has 4.2 inches more during El Niño years while Albany has 3.4 inches more and Burlington has 1.8 inches.

Page 15: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

The seasonal outlooks combine the effects of long-term trends, soil moisture, and, when appropriate, the ENSO cycle.

U. S. Seasonal OutlookSnowfall Outlook for Winter 2009.10

Temperature Precipitation

Page 16: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Area

Monthly Delta

from AVG   AreaMonthly Delta

from AVG

Resort with Minimal sensitivity to El Nino/La Nina     Squaw Valley, Calif. 6,200 0.7%

Sugar Bowl, Calif. 7,000 13.2%   Mary Jane at Winter Park, Colo. 10,800 -0.3%

Monarch, Colo. 10.2%   Red Mt. 2, B. C. 6,650 -0.7%

Heavenly Valley, Calif. 8,400 7.1%   Beaver Creek, Colo. 11,200 -1.0%

Wolf Creek, Colo. 10,642 7.1%   Telluride, Colo. 11,170 -1.3%

Alpine Meadows, Calif. 7,000 6.7%   Big Sky, Mont. 8,920 -1.7%

Heavenly Valley, Calif. 10,000 6.2%   Alyeska, Alaska 1,400 -1.8%

Loveland, Colo. 11,200 5.8%   Northstar, Calif. 7,800 -2.8%

Snowshoe, W. V. 4,848 5.6%   Alta, Utah 8,650 -2.9%

Arapahoe Basin, Colo. 10,820 5.3%   Coronet Peak, New Zealand 4,032 -2.9%

Central Sierra Snow Lab - Boreal, Cal. 7,200 5.1%   Vail, Colo. 11,250 -2.9%

Kirkwood (Carson Pass), Calif. 8,526 4.8%   Sunlight, Colo. -3.0%

Squaw Valley, Calif. 8,000 4.5%   Mt. Washington, B. C. 3,926 -3.1%

Sun Valley, Idaho 8,800 4.3%   Berthoud Pass, Colo. 11,315 -3.3%

Winter Park Base, Colo. 9,265 3.4%   Gothic, Colo. 9,400 -3.3%

Mt. Rose, Nev. 8,600 3.2%   Killington, Vt. 4,142 -3.4%

Red Mt. Pass, Colo. 11,090 2.9%   Waterville Valley, N. H. 3,000 -4.3%

Remarkables, New Zealand 5,203 2.8%   Snow Basin, Utah 7,700 -4.6%

Mt. Hutt, New Zealand 4,602 2.3%   Brighton, Utah 8,740 -4.8%

Purgatory, Colo. 10,000 1.5%   Blackcomb, B. C. 5,002 -5.3%

Aspen Mtn, Colo. 11,190 1.4%   Keystone, Colo. 11,641 -5.4%

Sugarloaf, Maine 3,695 0.8%   Mt. Snow, Vt. 3,600 -5.6%

Page 17: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO
Page 18: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Model for Success

18

This study aims to determine what it will take to increase sales of downhill

conveyances and, if so, to identify the means of doing so.

Page 19: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Findings

19

Source: * From Stage III Model For Success – October, 2005

• The study shows that the potential market is far larger than the actual market. Approximately 10% in any given year enter the season with the goal of replacing their gear. However, an additional 20% would “definitely” upgrade if doing so guaranteed them improved performance.

• The most likely candidates to buy are the “solid” and “expert” participants—nearly 30% would upgradewith the promise of a performance gain. Solid skiers are those “uncomfortable on steep slopes and bumps,” while experts “ski all trails.” These two groups are the most attuned to advances in gear and most appreciative of what new gear can do for them. These groups respond strongly to the notions of improved or easier performance.

Page 20: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Findings (Participants)

20

Alpine skiers tend to be older, more skilled, longtime participants, with higher incomes than other snow sports enthusiasts.

● Skiers enjoy a sense of mastery and controlled gliding.

● They are looking for improved or easier performance.

● Skiers especially respond to a presentation of features, technology, and benefits.

● At the store, they are most interested in personal service and fitting.

● They are impressed by lightweight equipment, new shapes and designs.

Snowboarders are younger and more visual.

● They are more enthusiastic about speed, air and tricks. One ad response example: “Photos were inspiring, especially the one where it was very steep and only the tail is touching the snow. This gets to your emotional response even if I can't handle the extreme stuff, you want to see someone doing it.”

● They are influenced more by graphics and styling than by technical explanations.

● They look to their magazines and to the industry for product information, not just the Internet.

● They are interested in a snowboard's width, and like skiers, pay attention to shapes and design.

● The younger snowboard audience responded well to the idea of “mountain graffiti”—leaving their signature on the mountain.

Page 21: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

21

Findings (Participants)

Cross Country (XC) skiers are looking for an escape into a scenic, tranquil environment. “I liked the mountains and the sayings—they made you feel as if anything is possible,” one respondent said about one test ad.

● XC skiers also respond to ease-of-use features, such as no wax skis and one-pull lacing.

● They want a good workout, but “it's not cheating to have a ski that makes kicking easier,” another respondent noted.

● Cross-country fans picked up on the idea that “a great work out doesn't have to be hard.”

● They value boot-binding integration and new materials.

Telemark skiers are the most passionate of all.

● Similar to cross country skiers, they appreciate scenic and tranquil mountain experiences.

● Since telemark technique is demanding and must work in all types of snow conditions, tele fans want the latest

technology. “All mountain” gear gets their attention.

● They are very interested in materials along with shape and design.

Snowshoers incorporate elements of the above, as they are often drawn from the same ranks. Otherwise, weight is a key factor.

Page 22: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

22

Findings (continued)

Page 23: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Millions of former participants are looking for a reason to come back to the mountain

Recession impacted the snow sports market particularly in retail margins but participants continued to ski and ride

Tight credit and low risk tolerance may significantly impact 2009/10 sales

New technology can still drive the market e.g. reverse camber

Understanding and communicating with consumers in their own language, providing them with better equipment for a better day on the mountain, and providing clear descriptions of how the product will make consumers’ snow sports experiences better will help increase sales

In Summary…

Page 24: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

OTHER RESEARCH

Market Intelligence Report

Consumer Research

Page 25: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

SIA Alpine Ski Suppliers Meeting

June 23rd, 2009

Denver, COAttendees: Atomic, Icelantic, Fischer, Amer, Rossignol, Dalbello-

Elan, Sterling Skis, Salomon, Volkl, VIST, 4FRNT

Page 26: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

PURPOSE OF THE MEETING

• Get accurate picture of Alpine ski market

• Figure out how to sell more skis

• Develop action plan to increase sales of Alpine Skis through specialty shops

• Where are you going to be in 10 yrs??

Page 27: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

MARKET CONDITIONS│David Ingemie

Industry Numbers• Retail sales down 7% in $

and 6% in Units• Wholesale down 10% in units

and dollars• Inventory levels up 7% in

units and 17% in $• Margins and sell through

declining• Rental increasing

Participation• Participation flat to down• Skier/Rider visits ok at 57.1

million• # of resorts declining (small

local resorts)

Weather• Snowfall was average

overall in 2008/09• Snowfall outlook – possible

El Nino in 2009/10

Page 28: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Shrinking the MarketSome Retailers and Producers Will Not Survive!

• Total snow sports market sales declined 4.4%

• 29% of all skis sold at or below cost in 2008/09 and current year model sales down 14.4%

• Significant amount of receivables at 90 + days past

• Alpine equipment inventory up 17.4% despite carryover sell off

• Margins and cash flow strangled

• Pre-season orders for hard goods down as much as 30%

• Credit tight for producers, retailers, and customers

Dollars Sold as values YTD Growth 

Equipment Specialty -8.37%

Internet 12.30%

Chain -22.89%

All Stores -7.95%

Apparel Specialty -9.94%

Internet 3.69%

Chain -2.96%

All Stores -5.49%

Accessories Specialty -6.40%

Chain -2.57%

Internet 19.69%

All Stores -2.60%

All Products -5.20%

Source: SIA Retail Audit for current season model only 2008/09, carryover not included

MARKET CONDITIONS│David Ingemie

Page 29: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Keeping Up With Customers90% of snow sports consumers use the Internet

on a daily basis as a primary information source

• Media defused – Bad News; Media defused – Good News

• Print media marketing losing effectiveness

• Many retailers will not embrace Internet commerce

• Snow sports product information on the Internet is scattered, vague, and unreliable

• Producers and retailers are not taking full advantage of customer emails/mobile numbers/social networking to market snow sports

MARKET CONDITIONS│David Ingemie

Page 30: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

MARKET CONDITIONS│David Ingemie

How Do Consumers Get Information?• 90% of snow sports consumers use the Internet as a

primary information source

• Consumers use the Internet as a tactical research tool, but online marketing drives offline sales

• When the product in question requires a large commitment by a buyer, the internet’s influence on the choice is greater.

Sources: ComScore – How Data Changes Media Markets, April 2009,. Pew Research Center, Internet and The American Life

Study 2008

Page 31: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

32 Brands

1,556 Models

Brands and SKUs in Alpine Category

BACKGROUND OF THE ALPINE SALES SITUATION│Kelly Davis

Page 32: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Retailers, Resorts and Other Wholesale Buyers

2,841 Specialty & Chain managements that sell snow sports hard goods

5,181Specialty & Chain storefronts that sell snow sports hard goods

2,000Other Specialty & Chain managements that sell apparel and/or accessories related to winter sports, but would not be called a “ski / snowboard shop”

900 Downhill & XC ski areas / resorts, includes private and mixed use areas

BACKGROUND OF THE ALPINE SALES SITUATION│Kelly Davis

Page 33: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

To grow the snow sports industry we must shift from an exclusively transaction focus to

a life time value focus.

Page 34: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

The Core Strategy

It’s very simple:

1. Keep your eye on lifetime value.2. Target lapsed, light and moderate users.3. Move from random transactions to regular

relationship based communications .

Page 35: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Some Tactics

Capture critical customer information – name, address, proficiency, frequency, etc.

Partner with retailers – share info, reinforce 3-4 key messages.

Time marketing to purchase decision cycle – aging equipment, new technology, new competence .

Invest in growing proficiency – make every marketing dollar work harder.

Reward loyalty and heavy users . Focus on kids’ lifetime value – families.

Page 36: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

The Bottom Line . . .

There is considerable latent market growth out there, but we cannot continue to operate as usual for another 10 years.

Page 37: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

STATE OF THE INDUSTRY│The Economy Overall

• Unemployment doubled over the year but stabilizing in snow sports demographic at 4.7% and Mass layoff events cut in half June (1,235) to July (621) 2009

• All retail sectors’ sales down 9.4% annually (August to August)– Snow Sports Down 4.4%– Clothing Retailers down 7.6%– Department Stores down 11.5%– Sporting Goods down 6.4%

• Consumer confidence rising, expectation of good economic times are higher than any since December 2007

• Productivity up 6.6% in Q2 2009

• In July, new orders and shipments of manufactured goods rose about 2% and industrial production increased for the first time since Dec 2007

Sources: Bureau of Labor Statistics Unemployment Situation, employment by educational attainment, July 2009. U.S. Census Bureau – Retail Trade and Food Services Sales Assessment Seasonally Adjusted, June 2008 to June 2009, Conference Board Consumer Confidence survey August 2009, BLS Labor, Productivity and Costs September 2009, Manufacturing Orders, Shipments, and Inventories August 2009.

Page 38: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO
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Print media marketing losing effectiveness

Many retailers will not embrace Internet commerce

Snow sports product information on the Internet is scattered, vague, and unreliable

Producers and retailers are not taking full advantage of customer emails/mobile numbers/social networking to market snow sports

Keeping Up With Customers

Page 45: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO
Page 46: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO
Page 47: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO
Page 48: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• Ideas to Address the Problem

– Project Connection

– Demo Initiative

OPEN DISCUSSION

Page 49: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

RESULTS OF THE ALPINE MEETING

• Alpine equipment sales are down over the past 5-10 years.

• This pressure on Alpine sales greatly acerbated by the current recession, sales number down double digit overall – over 8% for specialty shops but 22% for chains.

• Reported evidence from manufacturers & retailers that profit margins are also under long term pressure.

• SIA Board Member Mike Noonan summed up the situation quite eloquently: “Alpine sales suck.”

Situation

Page 50: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• While the impact on the industry of the current recession is unambiguous, there are numerous and complex reasons for the longer term decline in sales.

• The dramatic sales decline this year may be at least partly a postponement of purchases as in past recessions.

• Increased competition and new discount sales channels such as the internet have added to the pressure on pricing.

• The flat levels of snow sports participation have helped flatten alpine equipment sales as well.

• But the single most significant cause of flattening or declining sales is likely to be the glut in alpine equipment brands (32) and models (over 1,500). This proliferation of consumer choices has surely led to:

– Consumer confusion at time of purchase;– Erosion of brand differentiation, eliminating a major source of consumer guidance and price

support;– Blurring the customer benefits from new ski technology;– Complicating the job and reducing the sales effectiveness of retailers; and, of course,– Putting ever greater pressure on prices.– Making the ability to communicate benefits & features very difficult

RESULTS OF THE ALPINE MEETING

Causes

Page 51: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• Snow sports industry and alpine manufacturers have enormous opportunities to boost sales.

• Only 1 in 15 skiers purchase new equipment each. 1 in 7 skiers purchasing a year seems possible.

• Technology developed over the past few years provides relevant “new news” to capture consumer attention and imagination.

• Research suggests consumers consider new technology a very compelling reason to ski more and, one assumes, purchase new equipment.

• New media, provides the industry with far less expensive means to better target their market and convey product information.

• The cost of alpine equipment is lower than previous years in real dollars.• If the industry better focuses on the large moderate skier market the return

should be substantial.• Targeting marketing activity to product use lifecycle and customer lifetime value

should produce both short and longer term results.• In short, the alpine ski equipment industry is leaving sales on the table.

RESULTS OF THE ALPINE MEETING

The Opportunity

Page 52: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• Given this evidence and following a robust conversation, the group agreed with five very important conclusions.

• The industry faces serious, systemic problems that require that we change the way we market.

• The industry needs to speak with one, consistent voice to consumers -- on their terms and in their language.

• The industry needs to understand and harness new media to communicate more effectively with consumers and influencers.

• The industry needs to work better collaboratively on these industry-wide concerns, with SIA playing a useful role as independent expert/advisor.

RESULTS OF THE ALPINE MEETING

What We Agreed Upon

Page 53: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Although we did not have formal agreement on this subject, I believe that during the discussions a core strategy for addressing these issues emerged.

Utilize available assets to communicate more appropriately w/ the customer the several key messages w/ one voice

Possible Key MessagesThe group had not quite reached formal agreement, but we believe several essential messages began to emerge from our discussions.

• New advances in equipment technology and design have made skiing easier to master, more enjoyable, with greater overall performance.

• Like milk, ski equipment has an expiration date when it is no longer safe or suffers from diminished performance – check with us.

• We’re making it a lot easier to select just the right equipment for each skier of any age or ability level.

• Through bundling, smart selection and new retail options the real cost of ski equipment has declined over the past ten years -- we’ll help you buy smart.

A Core StrategyRESULTS OF THE ALPINE MEETING

Page 54: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• The challenges to the industry are daunting, but the new opportunities are greater still – with enormous latent market demand. But to harvest that neglected demand it will take the best leadership in the industry, working together, with staying power to turn this ocean liner.

• Lastly, we cannot lose sight of the admonition.

RESULTS OF THE ALPINE MEETING

Staying Engaged

Page 55: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Suppliers are willing to invest in helping specialty shops connect with their customers

Goal: Utilizing work ticket information to develop a digital database capable of targeting people, messages, product, and activity.

Concept: • Suppliers will invest money and resources to

connect work tickets into a digital database owned by the specialty retailer

• Supplier to provide scanners to convert tickets to digital bar

• Supplier to supply and pay for post card mailing by the retailer with appropriate message based on product and also incent consumers to supply email address.

PROJECT CONNECTION

Page 56: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

ENVIRONMENTAL

SNOW SPORTS RECYCLING SOLUTION

Old Gear = Recycle, Reuse, Renew

Page 57: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO
Page 58: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

TRADE SHOW│Update

• Show Update

• Winter Sports Market

• Free Skiing

• Hotels

• Transportation Discounts

– Super Shuttle, United, Hertz

• Daycare

Page 59: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• Fashion Show

• New InnovationS, NOW

– exhibit of new products

• TransWorld Riders Poll Awards

• Olympic Send-off

• Seminars/Clinics

• Apres Ski Party

TRADE SHOW│Events

Page 60: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• Demo open to hardgoods buyers only

• Fest open to all other attendees

• Lodging

• Transportation to/from Denver

• Free lift tickets, rentals, lunches

• Downhill/Snowboard (Rondo)

• Winter Park

• WWSRA

• Events – Rondo

• Nordic

• Devil’s Thumb Ranch

• CCSAA

• Salmon/Aquavit Party

TRADE SHOW│On-Snow Demo / Free Ride Fest

Page 61: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• 2nd year for the Digital Floor Plan feature, siasnowshow.com

• Easier to use than past online Floor Plan static PDF file

• Login & Build Custom Show Route w/ Floor Plan of SIA Show Exhibitors you want/need to see

• Or simply browse Floor Plan to view company descriptions, booth names & locations

• Easy Search for Exhibitors by Name or Category

• Ability to print/email Floor Plan

• Online listing of Educational Sessions,

• Parties and Events for Show planning

• Set to go live end of September

TRADESHOW│Interactive Floor plan & Show Guide

Page 62: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• Build awareness of Snow Show Retailer Attendees as Local Experts

• By attending the SIA Show and seeing all of the latest products, innovations, trends, technologies – you are the “Snow Expert” to your customer

• Identify the Specialty Shop Attendee as a “Snow Expert”

• Communicate to your customers that you are the “Snow Expert”

• Window decal• Badge for website• Icon next to shop listing in SIA Retail Database on snowsports.org and

snowlink.com

TRADESHOW │Retailer Recognition Program

Page 63: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

SNOWSPORTS.ORG + SNOWLINK.COM RETAIL DATABASE

Page 64: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• Influence consumer travel behavior by encouraging people to “ship” their skis/snowboards to avoid airline baggage fees, continue the purchase of new equipment

• Developed Ship Your Gear logo and Campaign

• Bolster Ship Your Gear Campaign through a “tool kit” for the snow sports industry

• Distributed to SIA Members, Industry Retailers and Reps 2008.09 season

• Pick up by New York Times Ski Guide December 2008

Page 65: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Logo/Sample Ads Print/Banner comps/Posters + Staff Talking Points in Tool Kit

TOOLS

Page 66: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• Alpine Ski Shop – Sterling, VA

• Announced Tune & Ship Program with Shipping Gear for Customers

• Combines Tune Up Before Trip, Ships Skis/Snowboards FedEx Ground

• Ship in Sportube• Tune gear before send/possible tune on return• Include TSA lock and return label• Price set to generate revenue, different for 1 or 2 skis/snowboards• Need Six Day Advance Drop Off

• Customers Very Pleased, Gives Reason for Them to Come Back into the Shop

SHIP YOUR GEAR TUNE & SHIP

Page 67: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• How Do We Increase Awareness?

• How Can We Implement the Program?

SHIP YOUR GEAR

Page 68: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

Social media are primarily Internet- and mobile-based tools for sharing and discussing information among human beings.[1][2] The term most often refers to activities that integrate technology, telecommunications and social interaction, and the construction of words, pictures, videos and audio.

• This interaction, and the manner in which information is presented, depends on the varied perspectives and "building" of shared meaning among communities, as people share their stories and experiences.

• Social media are distinct from industrial media, such as newspapers, television, and film. While social media are relatively cheap tools that enable anyone (even private individuals) to publish or access information, industrial media are relatively expensive tools that generally require significant financial capital to publish information

• Social media can take many different forms, including Internet forums, weblogs, social blogs, wikis, podcasts, pictures, video, rating and bookmarking

SOCIAL MEDIAWIKIPEDIA SAYS…

Page 69: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

SOCIAL MEDIA

What are you doing??

Page 70: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

 

Awards that affect Retailers• US/ Canadian Retailer of the Year – Voted on by Reps in Nov.;

presented at Show Did you get your Reps to vote??

• Canadian Rep of the Year – Voted on by Retailers in Sept./Oct.; Presented at Show

Did you vote on your favorite Reps??

Past winners of Retailer of the Year (on the RAC):• Cole Sports – 05.06• Darkside – 05.06, 08.09• Viking Ski Shop – 05.06, 06.07• Joe’s Ski Show -- 2008

  

AWARDS PROGRAM

Page 71: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• Succession in the fam business slide

Page 72: SIA Retailer Advisory Committee Meeting September 23 rd, 2009 Denver, CO

• Where are we going as an industry?– Where is the snowboard headed? Numbers were down.– Getting schools and your orgs in non-resort towns to embrace the sport– How to diffuse the common perception that the sport is expensive / elitist ?– Aligning suppliers/retailers/resorts to better coordinate efforts

• What is it going to take to keep specialty shops in business?

• What do you need from SIA?

• Would a shift in the selling season bring any benefits?

• What can retailers do to increase sales?– Ski sales – reduce demos or offer guaranteed to specialty shops

• How are you communicating w/ your customers?

OPEN DISCUSSION