Specialty Market RETAILER!

A SportsOneSource Trade Publication
VF Corp. Lays Out Major
Plans for The North Face
The North Face had revenues of $238
million with significant operating losses in
2000, the year VF Corporation acquired
the brand. Today, the brand produces
revenues of over $540 million and has an
18% operating margin, but the parent now
believes the child can achieve over $1
billion in sales within five years with a
compounded annual growth rate of
roughly 15%.
November 2005
Winter Storms Bring Holiday Cheer
When the top story on the evening news focuses on the winter storms blanketing the
United States, outdoor specialty retailers are smiling. In interviews with Specialty Market Retailer, storeowners report significant sales increases triggered by cold temperatures and snow depths that have moved enthusiasts to leave the office a few hours early
to purchase skis, clothing, and accessories before heading to the ski slopes.
Kim Walker of Outdoor Divas in Boulder, Colo. is pleased by the heavy snowfall in the
Rockies. “This is one of the
biggest opening seasons we’ve
had here in quite a while and
people are excited to see so
much snow,” she said.
TNF sales for 2005 are expected to grow
by 20% to 22%, with sportswear sales –
including Tekwear, Flight, and A5 products - increasing 29% and footwear sales
increasing 40%. TNF’s pre-season booking are up 36%. TNF sees footwear as the
biggest product opportunity but also expects aggressive growth from its sportswear product, with average annual growth
forecast at 15% through 2010.
After several years of inconsistent snow, Midwest-based retailers are also celebrating. In
Minneapolis, Midwest Mountaineering’s Rod Johnson reports that since Thanksgiving,
sales have increased 15% over
the same period last year,
while ski and snow sports sales
have increased 86%.
Other growth is expected to come from
expanding the brand’s owned retail presence and partnership stores. Currently
TNF has 10 owned-retail locations and 15
partnership stores, a number that is expected to increase substantially by 2010,
including the potential roll-out of TNF
branded mall-based shops.
At Adventure 16, sales of packs, tents, and sleeping bags have grown approximately
10% after two flat years. Darren Bush, of Rutabaga in Madison, Wisconsin has also
seen increased sales.
Mike Egeck, president of VF Corp’s Outdoor Coalition, recently told investors,
analysts, and the media that, contrary to
popular belief, The North Face growth is
not driven by increased distribution and
lower price points. Since VF acquired the
brand in 2000, TNF has closed more doors
than it has opened and average selling
price’s continue to climb.
It’s no surprise appropriate winter weather conditions trigger sales. John Mead of Adventure 16 in California has seen unusually warm and dry conditions in November and
early December. Without weather acting as a tipping point, sales are down slightly.
December sales totals include seasonal gift purchases, but pent-up demand from winter
enthusiasts is clearly making a difference. Women purchasing gender-specific gear and
apparel are driving sales higher and higher. Outdoor Divas typically sells more hard
goods in January than pre-holiday. “This year we are seeing a lot of people coming in to
buy their skis early,” Walker reports. She continues, “In the women’s segment there are
more choices than in the past. Last year there was an issue with K2 selling out of their
top model of women’s skis and we’re seeing some rollover from that. They are not waiting for a ski to sell-out and getting them now,” said Walker. Increased ski sales also
bring in ancillary purchases such as boots, bindings, racks, and waxing services.
Midwest Mountaineering has seen sustained, consistent growth in women’s sales. This
season, women’s technical apparel and outerwear sales are up 32% over last year.
Continued Page 4 >>>
INSIDE SMR: •
•
•
Utah Becomes Outdoor Industry Hub
The Business of Social Responsibility…
You and Your Customers
Gear Preview: Lifestyle Apparel and
Backcountry Hardgoods
And Now for Something
Completely Different...
Specialty Market RETAILER is
published by SportsOneSource, the
leading provider of business information in the Sporting Goods industry.
From The PUBLSIHER
Other SportsOneSource titles include:
2
Much has occurred since the last time
I took the time (and too much space)
to pontificate about the state of trade
publishing, our perceived needs of the
market, and the stated intention of
our little venture here with Specialty
Market RETAILER. I won’t blame
faulty pre-show intelligence, and I
didn’t intentionally flip-flop on the
issue, but a very strong reception to
the product we produce has led us to
re-think our long term position for
this nascent publication.
When last I wrote in this column, I
was quite content with my position as
managing editor of a team of editors
and writers that churn out more quality content in a week than most trade
publishers produce in a month. This
week is probably the best example of
how this team bands together to get
the job done. No less than five publications went out the door this week,
including three trade newsletters, The
B.O.S.S. Report, SnowSports Market
Report, and Sports Executive Weekly,
and two hybrid trade publications,
this Specialty Market RETAILER and
Performance Sports RETAILER, which
now serves the Running Specialty
Retailer, or RSR, market.
Both of these hybrid trade publications were developed for markets that
were under-served by current trade
publications and are developed with
the specialty retailer in mind. Many
others find value in the content presented in the publications, but our
intent is to develop a product that
serves as a communication tool for
the small specialty shops that fight
the good fight every day.
Apparently, this positioning has hit
home. The reception we have received
from the market for both publications
has given us the confidence to expand
each publication beyond its current
size and format. While the timing of
these changes is still under review, we
will quickly ramp up our efforts to
broaden the coverage, tweak the format, and improve the presentation of
this product each month.
These changes, among others that will
be announced shortly after the new
year, require that I take on a role as
Group Publisher for the company.
Yes, I still plan to write as I can, particularly in the finance, retail analysis, and M&A areas, but I must move
away from my preferred role of conducting footwear and apparel product
line reviews for our show issues. This
change is necessitated by our objective to clearly separate the editorial
and publishing roles within this organization. We hear too many stories
from vendors that have experienced
interviews that soon turn into sales
calls.
This change will require me to spend
more time on the business development side of our venture here, building revenues, nurturing partnerships,
and expanding the business to better
service our constituency. We have
recently added Lou Dzierzak as Group
Managing Editor, overseeing content
for all publications, while Kris Versteegen takes on his new role as
Group Specialty Editor. Kris has also
recently been promoted to Managing
Editor of The B.O.S.S. Report, our
executive-level weekly trade newsletter that covers the Bicycle, Outdoor,
and SnowSports market. The editorial team, which also includes Andrew
Kerrigan as Associate Editor, will be
supported by a broader group of freelance writers than we have used up to
this point.
Each issue of Specialty Market RETAILER will provide you with the
usual mix of industry news and product previews, but we will also strive to
provide you with in-depth coverage of
best practices for the retailer, valuable
market research data and trends, and
broader coverage of groups that advocate on behalf on the environment
and our industry.
We’re just getting started and we welcome you to grow along with us as we
work to redefine the role of trade publishing in our market.
- james
The B.O.S.S. Report
Sports Executive Weekly
SnowSports Market Report
Performance Sports RETAILER
Specialty Market UPDATE
Sports Market UPDATE
*****
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SportsNewsSource, LLC
dba SportsOneSource
PO Box 480156
Charlotte y NC y 28269
704.987.3450
704.987.3455 fax
specialty@SportsOneSource.com
Group Publisher
James Hartford
james@SportsOneSource.com
Group Managing Editor Lou Dzierzak
lou@SportsOneSource.com
Specialty Editor
Kris Versteegen
kris@SportsOneSource.com
Associate Editor
Andy Kerrigan
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and other SportsOneSource products
can also be accessed at:
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Specialty Market RETAILER
DECEMBER 2005 • Volume 1, Issue 3
Feature
10
Utah Becomes Outdoor Industry Hub - Specialty Market Retailer
takes a look at the state of Utah and the Outdoor HotSpot it has
quickly become...
MarketWatch
6
8
The Business of Social Responsibility...and Your Customers
Lifestyle Apparel:
When Function and
Fashion Manage to
Get Along
12 Backcountry Skiing
and the Technology
Driving Next Year’s
Growth
16 OIA & SIA Win
2005 Quota Battle…
but What About
2006?
NewsWire
17
18
Industry
Business
Specialty Market RETAILER
And Specialty is Winning at the Big
Boy’s Games
Continued from cover...
turns,” Walker said.
Increased store traffic means higher sales
and better margins. Discounting is applied strategically rather than as a last
resort effort to reduce inventories. Adventure 16 uses a planned promotion strategy in November and December. If
needed, clearance sales come into play
late in the year.
Although some cards are lost or never
redeemed, the service is seen as a profitable marketing tool. “We actually have a
85-90% sell through. It helps with our
cash flow and we have use of the cash
before the sales process,” Walker said.
Midwest Mountaineering has used shortterm price promotions to move Marmot
and North Face apparel but maintains
prices across all categories.
At Wild River Outfitters in Virginia Beach,
sales are slightly slower than they were
last year, but the average sale price is
higher. Wild River only offers discounted
prices to select customers on their e-news
mailing list.
Cold temperatures and deep snow have
motivated consumers to replace old
equipment and upgrade to the latest
technology. Where they spend their
money is always a concern to specialty
retailers. Competition from big box and
chain stores keeps specialty retailers
diligent.
Although two REI stores have opened in
Adventure 16’s market area, John Mead
believes they have heightened awareness
for outdoor activities rather than reduc-
Rutabaga’s discounts a limited
selection of gear on the store’s
website, but sees little need to
cut prices on the retail floor. “We
build an affinity with the customer. People would rather visit
a shop that’s doing good practice
and pay retail instead of getting
a 20% discount for a place that
they don’t like,” explains Bush.
In addition to Mother Nature’s
contribution, Bush credits some
sales growth to a new marketing
campaign based on natural fiber
clothing. “We’re promoting the
concept of fair share practices,”
he said.
Customers are interested in where the
materials are coming from and how the
raw materials suppliers are treated.
Natural, sustainable clothing offered by
Icebreaker, Ibex, Smartwool, and Teko
have been well received.
At this time of year, gift cards are some
customers’ first choice. At Outdoor Divas,
sales of gift cards are up substantially
over last year. Their gift cards are promoted with point-of-sale materials and
packaged in special ribbon wrapped
boxes. Walker believes the cards expand
selling opportunities into January. “We
are also hoping the gift cards will cut
down on the post Christmas returns and
exchanges. We hope people will come in
and shop instead of dealing with re4
ing sales at his stores. In his opinion, big
box or traditional sporting goods chains
have no measurable effect on sales.
In Minneapolis, competitive wars have
actually helped Midwest Mountaineering.
Johnson reports that after Dick’s Sporting Goods acquired the Galyan’s stores,
there is much less product mix overlap
between Dick’s and Midwest Mountaineering.
With Christmas a few days away, specialty retailers will meet customer demand with existing staff. Instead of hiring
short term help, current employees work
expanded schedules and longer hours. As
television weather forecasters warn of
new winter storms, those hours may get
even longer.
November Retail Pleases;
Outdoor Climbs
November was another solid retail month
for the action sports side of outdoor retail,
with Zumiez delivering another doubledigit increase in comparable store sales
for November. Total sales were up 38.6%
to $18.0 million for the month ended November 26, compared to $13.0 million in
the year-ago period. Comp store sales
were up 18.8% for the month on top of a
1.8% gain in the same month last year.
According to data released by SportScanINFO, the Thanksgiving week saw a strong
jump in outdoor footwear, outerwear, and
snow sports hardgoods, thanks to the turn
to colder weather in late October that carried over into November.
The outdoor footwear category, which also
includes work boots and military/duty
product, posted a 42% increase in sales
for the November period versus the comparable period last year.
Most of the
gains came from strength in the midmarket department store, family footwear,
and sport specialty channels, which includes the outdoor specialty business.
The mall specialty channel posted a decline as the category loses momentum as
a fashion product in the urban markets.
Full-line sporting goods sales of outdoor
footwear rose more than 19% for the
Thanksgiving week, according to the
SportScanINFO data.
Nowhere was the impact of the weather
felt more than in the outerwear category,
which saw sales more than double for the
month compared to last year, while sales
for the last week of the year grew more
than 150% versus the year-ago period.
The category was probably the biggest
disappoint in the retail fourth quarter last
year, so this nice start should bode well
for both retailers and vendor re-orders.
The total numbers were driven by the
gains in the full-line sporting goods channel, which closely mirrored the overall
gain.
Internet sales in the outerwear
category were up nearly 150% for both
the month and the week.
Snow sports hardgoods sales were up
5.0% for November, but jumped more
than 22% for the last week of the month.
Online sales were up 30%.
According to the SnowSports Industries
America Retail Audit, overall sales for the
entire winter sport market, including specialty and chain stores, were up 9% in
dollars to $348.8 million for the 2005 August through October period, compared to
$319.6 million reported last year, with
unit sales increasing 10%. Unlike last
year, specialty retailers are fueling the
majority of the growth with an increase of
10% to $278.5 million. Unit sales at specialty were up 12%. Sales at chain stores
were up 6% to $70.3 million.
Specialty Market RETAILER
The Business of Social Responsibility
…and Your Customers
Specialty MarketWatch
Today’s retail environment is evolving
into a very different landscape than it
was 20 years ago and consumers are
more concerned with social and environmental issues than ever before. This
is clear in several different retail sectors, including the food industry and
the outdoor industry.
A University of Ohio study points out
that the "greening of America" created
individuals who want to be environmentally correct in their purchasing decisions, but the flood of information on
what is environmentally correct is confusing and overwhelming.
Organic Grocery stores like Whole
Foods Market and Earth Fare are showing consistent growth not only because
consumers believe organic foods to be
healthier, but also because the general
public is learning that organic products
are better for the environment.
Nowhere is this more evident than in
the Outdoor Industry where many
brands have built their entire story and
brand image around environmental
activism and as a result, the distinguishing lines between one brand’s
achievements and another’s are often
blurred.
Consumers have already drawn this
parallel between organic groceries and
the environment and could easily draw
the same parallel between environmental advocacy and the outdoor specialty retailer.
At OR Winter Market this year, there
are currently over 80 exhibiting companies participating in their “Green Steps”
program, but what can retailers do to
draw more attention to these initiatives?
The Conservation Alliance is a non-profit organization of outdoor businesses
whose collective annual membership dues support grassroots citizen-action
groups and their efforts to protect wild and natural areas. Unlike many organizations with high overhead expenses, a full one hundred percent of its member companies' dues go directly to local community groups across the nation - groups like
Southern Utah Wilderness Alliance, Alliance for the Wild Rockies, and The Greater
Yellowstone Coalition. For these groups, the Alliance's grants are substantial in
size, usually about $35,000 each, and have often made the difference between
success and defeat.
Since its inception in 1989, the Conservation Alliance has contributed $4,775,059
to grassroots environmental groups across the nation, and its member companies
are proud of the results. To date, the groups funded have saved over 34 million
acres of wild lands and 14 dams have been either prevented or removed-all
through grassroots community efforts. In 2005, the Conservation Alliance gave
$435,000 in grants to 15 different local advocacy groups.
Conservation Alliance Executive Director John Sterling said that more and more
outdoor customers are expecting their favorite brands and retailers to be active
advocates of conservation.
“Increasingly, the industry has become so competitive, and in some cases so similar, that customers are looking behind the product to see if there is anything interesting. Companies with a story to tell other than product have a definite advantage,” said Sterling. “At the same time, more than any other industry, the Outdoor
Industry relies on protected wild areas. If you are selling tennis racquets, you’d
make sure there were plenty of courts nearby. Protected rivers, mountains, and
wilderness areas are our tennis courts.”
6
Taking The First Step
While most companies in the Outdoor
Industry would remain active in social
and environmental issues regardless of
potential economic gains, there are
some real advantages to promoting a
brand’s social responsibility.
In an age where consumers are primarily driven by price, environmental and
social responsibility is one more differentiating factor that can help keep retail margins higher and inspire customers to keep coming back. The challenge
is in communicating this message simply and effectively to the customer.
Taking advantage of trends like this are
not simply “good ideas” for specialty
outdoor and snowsports retailers, it is
vital. Big box stores are getting better at
identifying product trends and training
their staff to provide better service.
By not only highlighting the features
and benefits of products, but also providing customers with an environmental status symbol, specialty retailers can gain a considerable competitive
advantage over their larger counterparts.
Marty Lillis is the President of Franklin
Resource Group, a team of retail execution experts who go from store-to-store,
coast-to-coast to create “a brand advantage” for their clients. Mr. Lillis feels
finding these competitive advantages
could be the difference between simply
making ends meet and thriving.
“It is almost imperative for a specialty
retailer to find a way to differentiate
themselves from the REI’s and TSA’s of
the world,” he said.
Lillis suggested stated “There is a definite chasm between small retailers and
the manufacturer and it is the local
retailer, especially the outdoor retailer,
that makes up the backbone of the industry.
“Retailers should first contact the marketing department of these brands and
say, ‘I am here, I want to promote what
you are doing. Second, and most importantly, they need to execute.”
Specialty Market RETAILER
Local and National Advocacy to Keep Climbers Climbing
Since 1990, the Access Fund has been
the only national advocacy organization
that keeps climbing areas open and conserves the climbing environment. The
Access Fund supports and represents
over 1.6 million climbers nationwide in
all forms of climbing: Rock Climbing, Ice
Climbing, Mountaineering, and Bouldering. Five core programs support the mission on national and local levels: public
policy, stewardship & conservation
(including grants), grassroots activism,
climber education, and land acquisition.
The organization’s most successful and
high profile community program has
been Adopt-a-Crag. This program is
about inspiring and organizing climbers
to give back to the climbing areas they
use on a regular basis. Climbers are frequent land-users, and Access Fund feels
it is important to make an effort to maintain and care for that land. Adopt-a-Crag
encourages climbing communities to
engage local land managers, landowners,
park service employees, and forest rangers in conversation about ways to conserve and protect climbing areas and
environments. Steve Matuos, the Access
Fund’s executive director, said that retailer involvement is key to the success of
his organization and that they often help
coordinate efforts in and among the
climbing community.
“The local climbing shop is often the
center of the climbing community, and
we try to engage directly with the retailer,” he said. “We do whatever we can
to support their business and the climbing community, whether we send promotional materials or send one of our volunteers to answer questions at a big event.”
Northeast
Appalachian Mountain Club
5 Joy Street
Boston, MA 02108
Phone: (617) 523-0636
E-mail: information@outdoors.org
Website: www.outdoors.org
The Access Fund has seen some success
with its new Community Partners program, which targets retailers and gyms
and helps them publicize events and
gives the Access Fund the opportunity to
host membership drives. “Retailers are
the industry’s face to the public. Not only
for vendors and manufacturers, but also
for organizations like ours.” said Matuos.
“The most significant thing a retailer can
do to help the Access Fund is to be aware
of what it is we do.”
Rockies
Big City Mountaineers
820 Spyderco Way
Golden, CO 80403
Phone: (303) 271-9200
E-mail:
info@bigcitymountaineers.org
Website:
www.bigcitymountaineers.org
Local Advocacy Groups Go Directly to Local Customers
The Northern Forest Canoe Trail is a nonprofit organization devoted to creating a
740-mile paddling trail along an historic
waterway through the Northern Forest.
The group’s mission is to celebrate the
rich human heritage and diverse natural
environment of the Northern Forest by
Specialty Market RETAILER
Pacific Northwest
Washington Trails Association
2019 Third Ave, Suite 100
Seattle, WA 98121
Phone: (206) 625-1367
E-mail: info@wta.org
Website: www.wta.org
Mid-Atlantic
Coal River Mountain Watch
PO Box 651
Whitesville, WV 25209
United States
Phone: 304/ 854-2182
E-mail: crmw@charter.net
Website: www.crmw.net
Southeast
Carolina Climbers Coalition
Website:
www.carolinaclimbers.org
While both the Access Fund and Conservation Alliance support local issues and
work with local groups, working with
large national advocacy groups is not the
only way a brand and a retailer can distinguish themselves.
Local and regional groups, like the Northern Forest Canoe Trail or the Appalachian Mountain Club, can often provide
the same level of recognition from customers and they can deal with issues
that impact the local community more
directly.
Advocacy Near You:
establishing and stewarding a water trail
tracing historic Native American travel
routes across New York, Vermont, Québec, New Hampshire, and Maine.
The Northern Forest Canoe Trail has
been quite successful in gaining support
from several key government policymakers, as well as nearly every boat manufacturer in the U.S. market, Timberland,
The Mountaineers Publishing Company,
Thule, and Cascade Designs.
Great Lakes
Fox-Wolf Watershed Alliance, Inc.
PO Box 1861
Appleton, WI 54912-1861
Phone: (920) 722-2151
Email: foxwolf@fwwa.org
Website: http://www.fwwa.org
Southwest
Santa Monica Mtns Conservancy
Phone: (310) 589-3200
Email: info@smmc.ca.gov
Website: www.smmc.ca.gov
7
Specialty MarketWatch
Lifestyle Apparel: When Function and
Fashion Manage to Get Along
While the Outdoor Industry has always been at the forefront
of technological innovation, both in hardgoods and softgoods, in recent years, customers have been looking for
more than just the most advanced fabrics or utilitarian
clothing. It’s not that the outdoor customer is ignoring technical innovation, more to the point, outdoor customers expect more from an outdoor brand. Today’s customer demands better styling, better fit, and better function all in
one package that looks and performs equally on the mountain and off.
Outerwear to go Anywhere
arm, while the men’s features a rib knit collar and cuffs.
Known for it's technical products, Cloudveil has extended
their line into everyday wear over the past few seasons. New
for Winter 2006 are the Wild Wooly
Jacket in men's and women's,
which offers travelers a
wool/spandex blend in a
stylish jacket and the new
Women's Snow Princess
Parka, a three-quarter
length
down
parka
that offers slope side
style and warmth.
Additionally,
the
Women's
Cord-o-let
Jacket and Vest blends
a flair of funk with classic western styling.
Mountain Hardwear’s Downtown Jacket
and Vest, available for men and women,
feature urban styling in a down
jacket acceptable round the world
from Katmandu to the streets of
New York City. Swerving quiltMid-Layers Focus on Design
The new mid-layer sweaters, sweatshirts, and hoodies for ing for women and geometric
this season all reflect the sensibilities of this new consumer quilting for men add style. Both
with varied colorways, textures, and designs that cater to Jacket and Vest have 650-fill
power down insulation. The
anyone’s tastes.
Jacket sports Mountain HardHot Chilly’s is offering a new
wear’s PimpChimp fleece in the
ribbed textured fleece with a
jacket body for added warmth.
soft pile fleece backer
The Bridger Jacket by Marmot is a stretch cotton canvas,
called "Agave" for men,
insulated, everyday jacket that is slightly peached for texwhich is offered in fullture. It is lined in DriClime and insulated with MarmaLoft
zip, half-zip, and hoodie
polyester insulation. Four front pockets and inside climbing
styles. This fleece is deshoe warmer pockets finish the look.
signed to be layered with the
men's technical shells.
The Torrent line from Sierra Designs features waterproof/
Mountain Hardwear’s Skye Sweater in women’s and Nevis breathable outerwear pieces that apply polyester corduroy
Sweater in men’s are made of heavy weight, washable Luna weave. Styles are designed with the urban adventurer in
Merino Wool from Australia. The Skye Sweater is cut with mind, but perform in the outdoors and on the mountain and
feminine lines and a fun swerve from the zipper to the left include the men’s Cartwright Jacket and Montague Bomber.
Marmot will introduce the women’s Rockchuck Sweater at
OR this winter made of an Alpaca fiber blended with polyester that is warm, lightweight, machine washable, and hypoallergenic. It is lightly brushed for texture and has a small
rock pocket on the side for collectibles.
The new Annabelle by Horny Toad is a
lambswool hooded poncho with a distinctive look, feel, and fit. With a
generous, functional hood and decorative fringe hem, the Annabelle
looks both modern and classic with
a five-button front that is made of
lambswool shell.
SmartWool continues its push into
apparel with the new Synergy categ o r y , which features the Synergy knit, blending SmartWool, nylon, and polyester for a closed knit fabric that
sheds moisture on the outside, while absorbing and evaporating from the inside. The Synergy line has pieces for top
and bottom including a pullover and hoodie.
8
The go everywhere, do everything idea is especially evident
in this season’s new outerwear line-up, where companies
are unleashing a plethora of fabrics and textures including
corduroys, twills, and herringbone to appeal to a wide demographic.
SWIX is getting into the
fashion side of Outdoor with the Polaris, a clear jacket with
visible down filling that is dyed in a variety of colors for the
daring trendsetter.
Specialty Market RETAILER
Patterns, Plaids, and Prints Help Shirts Jump
See Them at
Off the Rack
Prints and patterns are major players in both men’s and women’s shirts, with
companies offering up everything from stripes and plaids to overprints. Little
details like ethnic stitching and unique necklines complete the looks that will
appeal to customers.
From Horny Toad come the Balboa in men’s and Lana in
women’s. The Balboa is a contemporary plaid buttonfront shirt that doesn’t need babysitting. With a special
cotton-polyester blend, the Balboa wears easy without
the need for ironing. The chest pockets have a flap
patch, the shirt tail is curved, and the back yoke is a
bit biased. The Lana is crafted from Horny Toad’s winter-weight Mambo fabric. Free breathing and actively
wicking, the fitted-cut Lana has a gathered front placket
with velvet ribbon trim. The sleeves are slightly flared
and the wrist vents feature their own velvet ribbon trim.
A part of Marmot’s Tommy Caldwell Collection, the Box Canyon Shirt is a long
sleeve cotton stripe, with two chest pockets with magnetic closures, window
snap closure on the front and cuffs, a split hem, and a semi-fitted shape. On the
women’s side, the Beth Rodden Collection features the Tinkerbell T, a longsleeve, garment washed T-shirt with layered sleeves and appliqué detail.
Mountain Hardwear unleashes a line of shirts ranging from plaids and herringbone to ethnic prints and styling. The men’s Wyatt Shirt features a lightweight,
hollow core, herringbone/twill plaid with anti-odor and a DWR finish that feels
like cotton flannel and retains warmth. The women’s Samara Shirt includes a
spiro-graph-inspired overprinted, double-woven cotton which traps a bit of dead
air for insulation, and garment wash for softness. The cozy feel combined with a
subtle abstract floral print makes it a favorite.
Black Diamond
Contact: Chris Grover
Phone: (801) 278-5552
Email: chrisg@bdel.com
Booth: 826
Cloudveil
Contact: Katie Jackson
Phone: (307) 734-3880 ext. 109
Email: katie@cloudveil.com
Booth: 1301
Fritschi
Contact: Thomas Laasko
Phone: (801) 278-5552
Booth: 826
G3
Contact: Sally Carmichael
Phone: (604) 924-9048
Booth: 2801
Denim and Corduroy Making an Appearance
Garmont
For hiking, climbing, working, kicking back, or hanging out, America (and the
rest of the world) is obsessed with jeans. Mountain Hardwear was born just
across the bay from the original jean made by Levi Strauss, so perhaps their new
denim line was inevitable. The women’s Sidetrack Gene features a low cut, wide
waistband, belt loops with raw edges, front hand pockets, two rear flap pockets
with raw edges, straight legs with a slightly flared hem, and raw hem edges. The
men’s Sidetrack has a low cut rise, five pockets plus a side utility pocket with a
raw edge, a wide waistband, and straight legs.
Contact: Gord Bailey
Phone: (802) 658-8426
Email: gb@garmontusa.com
Booth: 2927
Aside from denim, corduroy has found itself a mainstay of American culture,
though more prone to fads. Mountain Khakis will add the Cottonwood Corduroys
to their line for Fall 2006, featuring a style for both men and
women. The men’s Cottonwood Corduroy is patterned from the
Original Mountain Pant, complete with deep drill pockets, reinforced cuffs, and a gusset crotch for comfort and versatility. The
women’s Cottonwood Corduroy features a slightly new pattern,
with flat vertical front pockets creating a streamlined look, while a
contoured button tab waistband with an 8.5 inch rise provides a
flattering and comfortable fit. A 14 inch back rise ensures that the
low waist won’t be too low, and the back pockets feature a new flap
design with riveted metal buttons.
PrAna introduces the streetwear-styled, performance women’s Lined
Pant for Fall 2006. This relaxed fit, jean styled pant features decorative back pocket stitching detail, and boasts a technical fabrication
of 97/3 polyester/spandex. Best of all, the 100-percent poly fleece
lining offers warmth and insulation for cold climates.
Specialty Market RETAILER
Horny Toad
Contact: John Bales
Phone: (805) 865-8623
Email: john@hornytoad.com
Booth: 2852
Hot Chilly’s
Contact: Ray Bolton
Phone: (800) 468-2445
Email: sales@hotchillys.com
Booth: 1715
Lowa
Contact: Peter Sachs
Phone: (203) 353-0116
Email: peter@lowa.net
Booth: 2821
9
Utah - The Outdoor Hub of The West...
Park City is seeing some recognition
from the Outdoor business
community. He also thinks the
addition of this large of a company will
draw more talent to the area.
“The business environment is very
favorable,” he said. “We’re close to an
International airport, it’s insanely easy
to get around, and the quality of life is
great… Recruiting and finding talent is
relatively easy—you can get someone
to move here from just about
anywhere.”
Specialty Feature
Photo courtesy of Park City Mountain Resort
Quiksilver’s decision to move its
wintersports headquarters to Park City
helped catalyze the Utah ski town to
evolve into one of the major hubs for
the outdoor and SnowSports
industries. For years, Utah has played
host to several major outdoor brands,
but more recently, ski vendors have
been joining the business community.
According to OIA, there are 34
different companies with their home
office in the Salt Lake City area
between Provo in the south and Ogden
in the north.
The recent influx of companies began
two years ago when Descente created
an internal search committee to
investigate moving the company to
different locations in the western
United States. Eventually, the
company decided on downtown Ogden,
just north of Park City and Salt Lake
City. The committee cited Utah's
favorable e conomic con dit ion s,
excellent quality of life, and Ogden's
close proximity to various world-class
ski resorts as the reasoning behind
their decision. Additionally, the city is
planning a Gondola that will stretch
from downtown to the backside of
Snowbasin.
The next big move involved
Quiksilver’s Mountain Sports Division,
which includes Rossignol, Dynastar,
Look, Lib Tech, DC Shoes, Roxy,
Mervin, and Gnu. Shortly after this
announcement, Scott USA decided to
re-locate their distribution facility to
Salt Lake City. The company will keep
its headquarters in Idaho.
10
Sean Stinson from the Economic
Development Corporation of Utah said
that the state has been targeting
Outdoor companies for a few years.
“Governor Huntsman is a huge
proponent of economic development…
we began an initiative targeting
economic clusters—from software
companies to furniture companies. We
consider Outdoor companies to be
Competitive Accelerators—they help
create jobs and add to the quality of
life.”
Utah Helps Define Outdoor
Lifestyle
DC Shoes, which has been a division
of Quiksilver, Inc. since 2004, already
operates a Park City-based ‘Mountain
Lab’ which helped the brand develop
its snowboard boot program. The DC
Mountain Lab will play an integral role
in helping to create Quik’s facility.
Rossignol and Quiksilver management
have made it well-known that they see
considerable opportunities in the
SnowSports and
Outdoor Market.
Stinson went on to
“Quiksilver
wants
to
point out the fact
capture a leadership po- “ Q u i k s i l v e r
that the Salt Lake
sition in the Outdoor wants to capture
City metro area is
le a de r sh ip
Market... This relocation a
r e a l l y
t h e
position in the
is
only
the
first
step
in
“crossroads of the
the Master plan to ac- O u t d o o r
West,” with a major
M a r k e t … ”
complish this.”
rail line, I-15, I-80,
Rossignol
N.A.
- Francois Goulet p r e s i d e n t ,
and I-70 all easily
accessible. The state
Francois Goulet said in The B.O.S.S.
implemented tax-friendly measures for
Report, “relocation is only the first step
businesses that relocate with tax
in the Master plan to accomplish this.”
credits for the new jobs created. “We
It is unlikely that the Salt Lake City
aren’t paying people to move here,”
area will overtake Boulder as the
Stinson said, “but we are offering tax
Outdoor Industry’s cultural home;
breaks if they meet certain criteria and
roughly 60% of the companies in the
goals once they are here.”
outdoor industry are based in Boulder
or the surrounding area. However,
Locals Are Optimistic
with Quiksilver, Scott USA, Black
Diamond, Descente, Backcountry.com,
Locals expect Quiksilver’s move to
Petzl North America, and several other
transform the area, mainly from a
major industry players calling Salt
business standpoint. Bob Merrill, asLake City and its surrounding resort
sistant buyer at Backcountry.com,
communities home, the area is already
and long-time resident of Park City
well on its way to becoming a hub for
said he can see the construction on
the industry that rivals any other in
the new Quiksilver building from his
the U.S.
office window and is encouraged that
Specialty Market RETAILER
See the OR Winter Market
registration form as an
insert to this issue.
Key Off-the-Floor Events for RETAILERS...
OIA Events
Other Events
Industry Breakfast
Join us for breakfast and a keynote presentation and help kick off
Outdoor Retailer Winter Market 2006. This signature event will
include a complimentary breakfast, dynamic speaker and a kit
from the Toolkit for the Trade Series filled with practical tips on
how to tap into growing markets.
Sign up now; space is limited to 500. To RSVP, please email
Cathy Howland at: chowland@outdoorindustry.org.
Town Hall on Sustainability
This session is designed for those interested in developing a
foundation for the Green Steps Association (GSA) to advance
the principles of sustainability within the industry. Topics include:
culture, fair trade, natural fibers, the role of the retailer, and
manufacturing practices and the questions related to these issues. The goal of GSA is to create a cohesive agenda that is
expandable and allows for self education, while providing educational tools and resources for the purpose of promoting sustainability within the outdoor industry.
OIA Retailer Seminar
Join Outdoor Industry Association as we host two seminars for
retail owners and managers on effective sales and marketing
strategies. The event is perfect for retail veterans and new business owners and will provide a non-competitive atmosphere to
share successful business ideas and strategies.
To
RSVP,
pl e as e
em ai l
Cat h y
Ho wl a n d
at
chowland@outdoorindustry.org.
The Outdoor Recreation Participant
Growing retailers are looking at serving their current customers
as well as identifying customers for the future. Outdoor Industry
Foundation has been tracking participation in 22 activities over
seven years and will be presenting the changing profile of the
Active Outdoor Recreation Participant. This session will help you
understand the most important trends in the active lifestyle and
how this applies to the outdoor specialty retailer.
Presented by Michelle, Barnes, VP Marketing, OIA
Sport Trends & Influences
Promostyl, a global trend research & design agency, presents an
in-depth analysis of lifestyle trends and influences affecting the
outdoor, active, and athletic sports markets. Created for both
designers and buyers, this one-hour seminar also provides a
color, fabric, and silhouette forecast of the upcoming season.
Proactive…No Pressure Selling… A Lost Art-Form
The title alone suggests a serious contradiction in terms. Being
“proactive” usually indicates a salesperson’s aggressiveness,
while “no pressure selling” belies that aggressiveness. Thus, if
it’s possible to combine the two, the result becomes a retailers’
ally and a valued art-form. This fast-paced presentation discusses the obvious lack of teaching salesmanship or absence of
sales training so prevalent in retailing today. Included are those
things that retail sales associates should and should not do…in
order to make “the sale.”
Backcountry Skiing and the Technology
Driving Next Year’s Growth
Specialty MarketWatch
Alpine Converts Fuel The Growth
The majority of growth in the sport of Telemark skiing is coming from people that are not new to skiing. They are Alpine
skiers merely learning a new turn. The learning process takes
place on familiar territory, but with unfamiliar gear. A key
lesson in learning to Telemark is weighting the back foot.
With a boot that is too stiff, many who are new to the sport
won’t be able to get the ball of the foot down to leverage
weight into the ski edge to carve a turn. For this reason, and
rightly so, new Telemark skiers are geared toward softer flexing boots. Previously, this meant a
lower-cut boot, since the only softer
flexing boots on the market are designed primarily for touring and thus
sacrifice some downhill performance.
In order to address these issues, Garmont has created a new boot designed
for alpine skiers switching over to telemark. The Genesis provides the
softer flex needed for learning
the tele-turn, but with a
height that is better suited
for the steeper terrain and
speeds most alpine skiers
expect. The flex is softer than existing tall boots on the market, but not too soft for an experienced Telemark skier. Although targeted at new Telemark skiers, Garmont maintains
that backcountry skiers who prefer a tall boot will enjoy the
softer flex when skiing soft snow and touring.
Crispi’s new XR is designed as a high performance Telemark
boot to drive bigger skis at faster speeds. The
Polyetere SH 5533 shell matched with a 3 mm
Carbon frame provide stiffness, while the Pebax tongue, Thermo Liner, 3 Inclination possibilities, and 4 Aluminum Micro-adjustable Buckles
are designed to provide customizable
comfort.
Crispi’s second offering caters to the
Telemark skier that likes to drive big
skis and take bigger drops in the
backcountry. The Diablo Free Ride
uses a Pebax Stiff shell and a 3mm
Carbon frame with a Pebax Stiff Extension.
Scarpa redesigned the T1 this year, making it even more powerful. The Fall 2006 T1 will have dual density lowers and
cuffs designed to transfer power into edging and turning. A
stiffer torsion bar that extends into the toe initiates even
faster and a 4th buckle locks the boot on. It comes with Plus
Fit Thermo Liners.
12
The T-Race has also been updated this year with similar features. The dual density components and a fourth buckle increase power transfer and the stronger Torsion Beam provides better lateral stability and return. Designed for racers,
the walk-mechanism has been removed to maximize downhill
performance. The T-Race also comes with Plus Fit Thermo
Liners.
Women Get More Gear of Their Own
With continued growth in the sport of Telemark skiing, more
women are reaching expert levels and demanding performance gear. Dickie Hall, founder of the North American Telemark Organization, said that his backcountry courses are
now more than 50% female. Women’s instructional organizations like Babes in the Backcountry and Ultimate Grooves are
seeing similar trends, with higher demand for backcountry
trips and intermediate to expert level courses, like the
“Babes’” program called “Sisters in the Steeps.” This year,
many manufacturers worked to design products to give these
advanced female skiers a boot that can keep up with them.
The new Garmont Elektra is a high performance 4-buckle Telemark boot designed for
female skiers and engineered to compliment
Garmont’s existing Venus, but with added
height and a stiffer flex for better control on
steep terrain and for driving wider skis.
The Elektra features a triple-injected
shell and double-injected cuff tuned
for proficient female Telemarkers. In
addition, Garmont has designed a new women’s specific GFit3 W thermo-formable liner for the new Elektra. This liner
will also be available as an upgrade to next year’s Venus.
The Next Binding Revolution
The compression spring binding revolutionized telemark skiing several years ago, providing skiers of all abilities the
power to carve with bigger, fatter skis. This made the sport
much more accessible for the average athlete that is able to
hit the slopes only occasionally. As a result, over the last few
years, new telemark skiers have been honing their technique
at resorts, and eventually venturing off into the backcountry.
The only problem is that those compression spring bindings
that deliver big-ski-carving power also offer considerable resistance while touring and skinning up hills. This year, three
of the biggest names in bindings, G3, Black Diamond, and
Rottefella are all offering solutions to this problem. While the
solutions presented by these companies will certainly improve
the touring performance of the bindings, there is still only
one company making a DIN certified releasable telemark
binding, 7tm.
Specialty Market RETAILER
Any release mechanism not only makes driving big skis in big boots safer, but it
also offers more safety in an avalanche. Consumers are looking for options that
combine performance, light weight, and safety. Nonetheless, while the technological advances in bindings this year do not address releasability, they do offer benefits over previous compression spring bindings and will surely be welcomed by
anyone heading to the backcountry.
See Them at
Garmont’s new Rottefella R8 Tour binding, which will be
launched at OR Winter Market and SIA’06, combines Rottefella’s downhill performance with a touring mode for more
efficient striding and uphill skinning. In the touring
mode, the R8T binding housing rotates forward unrestricted on an axel under the toe. Boot flex resistance
is eliminated resulting in longer strides and less
wasted energy. To return to downhill Telemark mode, flip the front toe lever
and it’s ready for descent.
Marmot
Black Diamond’s new 01 Telemark Binding, scheduled to be
launched at OR Winter Market, combines the most powerful binding BD has ever made with a touring pivot-point
located 35mm behind the pin line for efficient and
comfortable uphill skinning. BD designed the 01 for
the modern telemark skier who looks to balance efficient power for on
mountain and backcountry performance.
G3’s latest binding, the Targa Ascent continues the evolution of G3’s binding series. Through an innovative patentpending, free-pivoting system, the Ascent eliminates the
resistance created by stiff boots and spring cartridges.
While in tour mode, G3’s patent-pending, biomechanically
correct free-pivot system allows for efficient touring. For
the descent, a pole-activated, powerful actuator easily and
securely moves the retention system into place to lock the Ascent
in ski mode. To maximize downhill power, an active, built-in 3° wedge
reduces rocker launch and improves the transfer of energy from boot to ski
by immediately engaging the G3 spring cartridges upon initiation of the turn, producing a more active binding.
Backcountry Safety Remains Top Priority
With so many newcomers entering the backcountry and so many resorts opening
their boundaries, making access easier and faster than ever before, there has been
a marked increase in backcountry accidents. This is causing resorts, guides, and
even gear manufacturers to place more emphasis on safety as the top priority.
This year, Black Diamond took the next logical step with
their revolutionary AvaLung — they integrated it into
two new backpacks, the Anarchist and Covert. Both
packs provide seamless integration of the AvaLung
into the pack design, keeping the device accessible at
all times. Time is critical in an avalanche situation
and the new Anarchist AvaLung, which comes in a
42 liter and 35 liter version, and slightly smaller
Covert AvaLung, which comes in a 32 liter and and
22 liter version are a non-intrusive way to add an
extra measure of safety. Black Diamond will also
introduce the same packs without the AvaLung.
One new product designed specifically for backcountry access points on either
public lands or resorts is Ortovox’s new avalanche beacon checkers. The checkpoints are compatible with all avalanche transceivers on the market and are designed to provide confirmation of a beacon’s transmit function before users enter
into avalanche prone terrain.
Specialty Market RETAILER
Contact: Karen Smith
Phone: (707) 544-4590
Email: rmiller@marmot.com
Booth: 3507
Mountain Hardwear
Contact: Brad Bates
Phone: (510) 558-3000
Booth: 3641
Mountain Khakis
Contact: Noah Robertson
Phone: (866) 686-5425
Booth: 5026
Ortovox
Contact: Marcus Peterson
Phone: (603) 746-3176
Booth: 2721
prAna
Contact: Demian Kloer
Phone: (760) 566-1070
Email: demain@prana.com
Booth: 315
Scarpa North America
Contact: Chris Clark
Phone: (866) 998-2895
Booth: 537
Sierra Designs
Contact: Andy Genewick
Phone: (303) 262-3050
Booth: 3621
SmartWool
Contact: Regan Spindler
Phone: (970) 879-2913
Email: regan@smartwool.com
Booth: 3327
Swix
Contact: Steve Poulin
Phone: (800) 882-5450
Email: steve@swixsport.com
Booth: 3127
13
As Technology and Education Make
the Backcountry Safer
This year promises to be revolutionary in the backcountry safety
market. Many companies, from avalanche transceiver manufacturers to apparel vendors, are looking at this area as a necessity
for their customers and are designing product to give the most
performance while skiing or riding, as well as the most safety in
the event of a slide. Most beacon manufacturers are keeping
quiet about their innovations for the season, but word has leaked
out from Barryvox concerning a new technology that could
“significantly improve the time it takes to rescue victims in the
event of a backcountry avalanche.”
Peips is also offering a unique option for owners of its DSP beacon: a software upgrade program that gives
customers the latest in beacon technology
without having to buy a new beacon. The
second generation software offers a
faster search, improved multi-burial
scan, enhanced ability to locate a
broader range of signals, improved
range, beacon diagnostics, and
longer battery life.
While nothing can truly replace the
portability and safety afforded with
the proper use of an avalanche beacon
in the backcountry, several resorts are
beginning to look at more effective ways
of locating victims in the event of an avalanche. Recco developed a system that can
find victims faster and more accurately than beacons and many
manufacturers are integrating Recco reflectors into their
hardgoods and softgoods. While the technology is not easily
transportable, it is currently used by resorts and Search & Rescue teams world-wide. The reflector, however, weighs less than 4
grams, needs no batteries, has an unlimited life span, and requires no attention by the user to work. For the 2006/07 winter
season, Arc’teryx has incorporated these Recco reflectors into
every Decent Hardshell.
Alpine Touring Gear
Alpine touring is quickly becoming the primary growth category
of many outdoor and ski retailers, with more resort skiers looking for access to the backcountry without spending the time to
learn a new style of skiing. This year it is becoming more evident
that the latest generation of skiers, after honing their big trick
skills in the park and pipe, have noticed the big mountains. AT
boots and bindings are getting stiffer and more akin to alpine
gear than ever before.
Last year, Garmont produced a new high performance alpine freeride boot, the Adrenalin,
that is equally at home hiking for turns or
cruising in-bounds. This year, Garmont translated the same idea into a women’s boot. The
company said that freeriders “have been
on our case since the launch of the
Adrenalin.” The Xena is designed first
and foremost as a performance Alpine
boot. The double-injected cuff and
14
the lower shell of the Xena are reinforced with fiberglass, providing a stiff frame designed to enhance control and leverage. The
Xena shell is anatomically shaped for comfort, warmth, and is
engineered to provide skiing sensitivity. Garmont tailored the
boot specifically for women with its new G-Fit3W women’s specific thermoformable inner boot. The G-Fit3 W accommodates
women’s lower volume feet by adding more foam around the heel,
over the instep, on the tongue, and in the toe box. To address the
needs of backcountry alpine touring enthusiasts, the Xena features the Garmont ski mountaineering sole. It is cramponcompatible, self-cleaning, and rockered for easy climbing and
hiking. In addition, for those days spent riding the lifts, a pair of
ISO Alpine Norm soles are provided that can be swapped out for
use in traditional Alpine bindings.
Scarpa’s new Magic boot has lowers and cuffs manufactured
specifically for women’s feet. The Pebax shells transfer energy to
the ski efficiently without too much weight. The redesigned cuff
extends further back to let women backcountry skiers move even
further with every step while skinning up in search of the next
run. The three buckle plus power strap boot comes standard
with Plus Fit Thermo Liners and Tech Fittings.
For men in Winter 06-07, Garmont created the new Endorphin,
which takes last year’s Adrenalin one step further. Garmont used
a mix of Pebax, Polyurethane, fiberglass, and carbon fiber to create a boot that will allow ski mountaineers to leave their alpine
boots in the closet all season. Magnesium buckles and canting
mechanism are chosen for their strength and light weight, keeping the swing weight low, saving energy on the climb. Like the
Xena, ISO Alpine Norm soles are provided that can be swapped
out for use in Alpine bindings.
Lowa created the Struktura Degree Ultra, a 3-buckle AT boot
with a heat moldable liner. The precise medial/lateralcanting function allows the Struktura to be finetuned to the exact requirements of individual skiers. The dual-density rubber outsole and PU midsole offer comfort, warmth, and optimal grip. A simple lever activates the Ski-Walk system. The ladies’
model comes with specially lasted liners and
sculpted cuffs to accommodate ladies’
calves.
Fritschi is also creating a stiffer platform
for backcountry skiers with their AT binding design. The new
Diamir Freeride Plus is designed to perform at a level equal to
that of regular alpine bindings and retain the same
touring functionality as other Fritschi bindings. The company says that the Diamir
Freeride Plus offers increased stiffness
and power transfer with no significant weight gain over previous
Diamir Freeride models.
Fritschi’s second new
offering of the season,
the Diamir Explore,
is designed for classic alpine touring,
but utilizes the same stiffened rear end as the Diamir Freeride
Plus for increased power transmission, and trims off any excess
weight for long, hard tours that still demand downhill performance.
Specialty Market RETAILER
Specialty MarketWatch
OIA & SIA Win 2005 Quota Battle…
but What About 2006?
Due to last minute negotiations from
Outdoor Industry Association and
heavy technical work from SnowSports
Industries
of
America,
Chinamanufactured ski and snowboard pants
will be allowed into the country this
winter. The two organizations came at
the issue from separate angles, but
managed to get the message across
effectively, and the Committee for the
Implementation of Textile Agreements
(CITA) determined that certain imports
of ski and snowboard pants from
China do not contribute to market disruption.
concern among the industry is the potential for a quota on man-made fiber
coats – including any Gore-Tex, fleece,
nylon, or polyester jackets made in
China. It is estimated that roughly 80%
of all Gore-Tex Jackets are produced in
China.
“While CITA’s decision solves a big
problem for the outdoor industry for
2005, there are more potential quotas
on the horizon,” said Frank Hugelmeyer, president of OIA. “The possibilities of jacket quotas and the reapplication of quotas on ski and
snow pants for 2006 are currently being considered by
CITA... Should these quotas be
enforced, they could potentially
be devastating to the outdoor
industry.”
It is likely that if this decision
had not been made, more than
half of all ski and snowboard
pants would be stuck in customs
until at least the end of December. However, both industries
are still facing an ongoing challenge that could effect future
apparel shipments beginning
Shipping Containers Waiting for Customs Clearthis spring.
The issue began in January ance at a California Port
when existing trade quotas were removed from all apparel coming out of
China, a change that was ten years in
the making as part of China’s entry into
the World Trade Organization. In the
following months, many apparel vendors -- from across all industries -placed an unprecedented number of
orders with third-party Chinese manufacturing companies. According to Chinese Customs data, as of May 2005,
China's textile and apparel exports to
the United States were up 85%.
While these increases are drastic, the
overall number of imports into the U.S.
remains relatively stable. “China is not
a threat to textile manufacturing –
other Asian countries will pick up the
manufacturing,” said Lonnie Drosihin,
senior product development manager at
Sierra Designs. “Even finding the fabric
in the U.S. to produce some of our
products is difficult, and there isn’t
anyone who can produce the finished
goods. Yes, the increases from China
are huge, but the total imports from
Asia are relatively stable.”
16
Shortly after these initial figures were
reported, a heavy lobbying effort was
initiated by domestic manufacturing
trade groups. Then CITA imposed the
“safeguard provision” of China’s World
Trade Organization ascension agreement on May 13, 2005. This provision
established quotas that allowed import
volume to grow only 7.5% over last
year’s volume. When these quotas were
filled in August, Customs embargoed
imports in these categories.
The problem was not necessarily the
quotas themselves, but rather the timing of the placement. According to OIA,
CITA is placing quotas on apparel that
is no longer manufactured in the U.S.
and they are looking at restricting fall
2005 and spring 2006 apparel, when
they should be looking at spring 2007
in order to give vendors enough time to
react to any decisions.
Finally, in late October, OIA and SIA
were both notified that CITA determined
that certain imports of ski and snowboard pants from China do not contribute to the market disruption. The pants
under embargo were released on Nov. 1,
2005. SIA worked hand in hand with
the Commerce Department to develop
the physical and functional description
of the product for the carve-out.
Even before CITA’s decision, the domestic textile industry filed petitions asking CITA to reapply quotas on apparel
products and to apply new quotas on
additional apparel categories that
should ship in Spring 2006. The biggest
Following their broad memorandum of understanding with the
Chinese Government last month,
CITA has dismissed all pending
petitions to further limit trade
with China and released certain
products currently embargoed
including man-made fiber knit tops,
and man-made fiber pants.
This decision only applies to the 2005
calendar year and no agreement has
been reached concerning 2006. On
January 1, all petitions to limit entry of
textiles produced in China may be resubmitted. This includes potential limits on the importation of waterproofbreathable jackets and pants, as well as
soft shells, fleece, and other apparel
vital to the outdoor and snow sports
industries.
Both OIA and SIA continue to watch the
situation closely and work with members of CITA and the Department of
Commerce to find a solution to these
conflicts. OIA fully expects various textile groups to apply for safeguards in
these categories next year, and there is
no language in CITA’s recent decision to
stop them. If either organization is able
to secure a permanent exemption on
these broad definitions for technical
outwear jackets and pants, it will end
the industry’s exposure.
Specialty Market RETAILER
Industry
ANWR Saved for Now...
The U.S. House of Representatives
managed to pass the budget reconciliation bill just before adjourning for the
Holiday. The vote went along partisan
lines and narrowly passed by a 217
vote in favor with 215 opposed. 14
Republicans joined all Democrats and
one Independent in opposing the bill.
The trip focused on the House of Representatives’ debate over budget legislation for 2006 in which a provision
was included that would provide subsidies for oil drilling in ANWR. Prior to
the debate, a group of 29 moderate
Republicans sent a letter to their party
leadership saying they would oppose
any budget legislation that includes
the Arctic drilling provision. On November 10, after two days of Capitol
Hill meetings the House agreed to drop
this provision from the budget bill.
The budget passed by House Republicans puts at risk other lands that
could be even more influential to the
Outdoor Industry. The budget includes
language seeking to sell off millions of
acres of public lands currently protected by the federal government. Areas in or near national parks, including Yosemite, Yellowstone, and the
Grand Canyon, could all be at risk.
NPS Proposes Broad Rule
Changes
The U.S. Department of the Interior
released its revised and re-written
rules governing the National Parks
Service and so far, the Outdoor Industry and conservation community is
reacting with skepticism and, in some
cases, hostility. The largest controversy
so far is due to the modifications to the
NPS Foundation, or the underlying
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The 275-page document is divided into
ten chapters that dictate every aspect
of the NPS and the rules that affect the
end users. News of the proposed
changes first leaked out of the Department of the Interior last month, when
the New York Times reported on a
memo, authored by Paul Hoffman, a
deputy assistant secretary at the Department of the Interior. The leaked
memo proposed broad changes to existing statutes that protect the NPS
from overuse. The changes were clearly
written to allow more commercial access to preserved areas, which could
lead to the occurrence of more environmental damage. The final document
does not include all of the changes
proposed by Hoffman, but many conservation groups have called the proposals “Hoffman-lite” because key protections are still weakened.
The Coalition of National Park Service
Retirees is one of the more out-spoken
groups fighting these changes. “Not
only has no compelling case been presented for rewriting the 2001 NPS
management policies, but we are seeing what we believe is most likely a
false claim that the revised draft represents the views of 'more than 100 key
NPS professional staff.' We challenge
the Interior Department to name these
100 of our former colleagues who
would embrace this only somewhat
watered down version of Mr. Hoffman's
deadly prescription for national parks,”
said CNPSR spokesman Bill Wade, the
former superintendent of Shenandoah
National Park. “We simply do not believe that 100 key/non-political NPS
officials -- that is career people such as
ourselves -- actually signed off on this
document…We look forward to seeing
the list to which the Interior Department and NPS Director Mainella keep
referring in defending this rewrite.”
One of the key arguments in favor of
the changes to the rules is that “the
American people” are asking for them.
“To suggest that the American people
are clamoring for changes in the way
our National Parks are managed is not
supported by the facts,” said OIA’s
president Frank Hugelmeyer in a statement to the press. “Since 1998, statistics collected annually in conformance
with the Government Performance
Results Act have shown visitor satisfaction with our National Parks at or
above 94% each year. I can’t imagine
there is another program within the
Department of Interior or the entire US
Government that has higher public
approval and is slated for such wholesale changes.”
SAFETEA-LU Bill Provides
Funding For Recreation
T h e
S a f e ,
Accountable,
Flexible, Efficient
Transportation
Equity Act-Legacy
f o r
U s e r s
(SAFETEA-LU) was
signed into law by
President
Bush
last
month,
providing
$612
million for Safe Routes to School, $370
million for Recreational Trails, and
$893
million
for
Transportation
Enhancements, including pedestrian
and bicycle lanes and trails. Roughly
$3.2
billion
is
set
aside
for
‘Transportation
Enhancements.’
According to the League of American
Bicyclists’ analysis of the bill, roughly
$1.6 billion over five years should be
allotted for bicycle, pedestrian, and
trail projects across the country.
Specialty NewsWire
Shortly before the vote took place, The
Conservation Alliance led a delegation
of outdoor business leaders in a lobby
trip to Washington, DC. Representatives from The Conservation Alliance,
Montrail, Patagonia, and Timberland,
joined the owners of Zumiez, Kennan
Ward Photography, and the Anchorage
Guest House to show Congress that
many businesses support protection
for the Arctic Refuge.
governing principals of the Nation’s
parks. Critics contend that the new
document represents “Tectonic shifts
away from traditional philosophy and
the intents of governing statutes.”
The most important part of this bill for
the
Outdoor
Industry
is
the
‘Recreational Trails Program,’ which
was funded at $370 million over the
five-year life of the bill, with a
minimum of 30% of this amount going
to non-motorized trail building.
The newest part of the bill is the Safe
Routes to School program, which is
designed to create safe walking and
bicycle routes around middle and
elementary schools in every state in
the country. Under the program, each
state will receive at least $1 million in
funding for SR2S programs.
17
Business
C.A.M.P. USA Moves Down
the Road
Specialty NewsWire
As a result of a spike in
sales and anticipated
future growth, C.A.M.P.
USA, the U.S. distributor
of
Italian-made
C.A.M.P. climbing gear,
has moved its operations around the
corner to a larger warehouse and office
space. The street address remains the
same, only the Suite number has
changed.
With three times the warehouse space
and an efficient, organized team of representatives, C.A.M.P. USA is poised for
future growth and success. Customers
can look forward to ever-increasing
efficiency with transactions, on-call
availability for questions and concerns,
and overall prosperity as they continue
to grow with C.A.M.P.
Loki and Mountain
Sprouts Team Up
LOKI USA and Mountain
Sprouts have teamed up
to bring LOKI's patented
LOKI Mitt and LOKI Face
Shield technology to children's outerwear, effectively solving every parents ongoing
winter struggle to keep mitts from being
lost by designing the mitts onto the
sleeve of the jacket. LOKI founder Seth
Anderson said three reasons compelled
him to enter the kids clothing market:
Adult enthusiasts already reaping the
rewards of the LOKI features were asking LOKI to make jackets for their kids;
big kids who fit into the smallest adult
sizes were among the company's biggest
fans; and they found a trusted local
marketing partner.
sorts. Collectively, the four resorts offer
hundreds of kilometers of snowshoeing
trails and other terrain for guests to
explore on their own or with a guide.
With snowshoeing, visitors of any age
and athletic ability can quickly and
easily get outside and enjoy a lowimpact and fun exercise without worrying about buying additional equipment
or hefty costs.
Allan Kettlehut, Redfeather CEO, commented, “Thousands of people every
year are taking up snowshoeing as a
new source for exercise and fun. It only
makes sense to offer the sport in ski
resort environments where people can
truly take advantage of beautiful surroundings, get out on snowshoes, and
go anywhere.”
Spyder Forms Adventure
Racing Team
Spyder
Active
Sports
signed a major sponsorship
in the adventure race realm
by forming Team Spyder.
Spyder said that their
growth in the Outdoor market inspired the brand to
connect with a sport. Team
Spyder’s race season will consist of
single- to four-day non-stop, continuous events.
Kathy Carroll, Spyder’s marketing director, explained the decision to support the team and niche sport. “We
believe adventure racing is an excellent
fit for the energy of our brand. It’s aggressive, it’s dynamic, and those at the
top of the sport represent the quintessential Spyder athlete. Adventure racing
showcases the performance and broadbased utility of the Outdoor products
we bring to market,” she said.
Redfeather Inks Deal with Patagonia Becomes MEC's
Largest Apparel Vendor
Vail Resorts
Redfeather Snowshoes
has formed an exclusive multi-year rental
partnership with Vail
Resorts. Redfeather Snowshoes are now
available to visitors at Nordic Centers
located at Vail’s Golden Peak, Beaver
Creek, Keystone, and Heavenly ski re18
Mountain Equipment
Co-op will feature the
Patagonia product line
as part of its offering to its members for
the first time this year. Patagonia’s
products will be featured in all MEC
sales channels including retail stores,
catalog, and website. With this move,
Patagonia becomes MEC’s largest apparel vendor.
In keeping with the environmental commitment of both companies, MEC has
agreed to consolidate its community
involvement programs and join 1% For
the Planet – an organization co-founded
by Patagonia owner Yvon Chouinard. In
addition, MEC has committed to join
the Conservation Alliance, with a focus
on Canada specific actions – and has
agreed to embark on a joint Patagonia/
MEC Canadian environmental project.
"We are pleased to be aligned with
Mountain Equipment Co-op, a company
that shares our concerns and commitments with respect to the environmental crisis,” noted Bill Kzulczycki,
Patagonia’s VP of international sales.
“Together we look forward to increasing
awareness for the need for more sustainable business practices, as well as
joining efforts on a significant environmental project in Canada."
This new relationship is the culmination of years of discussions between
Patagonia and MEC. Patagonia’s decision to solidify the arrangement was
made because of the environmental
alignment of the two companies. Additionally, the relationship is a natural
extension of Patagonia’s mission of using business to inspire and implement
solutions to the environmental crisis.
Timberland Increases
Anti-Counterfeit Efforts
Timberland is
ramping up its
efforts to prevent counterfeiting with a two pronged
program that focuses on both the dealer
and consumer. First, Timberland is
creating a new, uniquely coded sticker
for each of its authorized Timberland
dealers, which will be prominently displayed wherever authentic Timberland
products are sold. In addition to the
stickers, the company is also creating
an anti-counterfeiting advertising campaign. The first advertisements will
appear on mobile billboards in New
York, Philadelphia, and Baltimore over
the next few weeks, with additional
advertisements and markets under
consideration for 2006.
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Business
Year-to-date, the company’s counterfeit
investigation effort has resulted in multiple arrests, and the seizure of more than
100,000 pieces of counterfeit Timberland
goods. Timberland also maintains an authentic product hotline to gather confidential information regarding suspected
counterfeit activity.
K2’s
Outerwear
Group
Forms Under Marmot...
All sales, marketing, and
product development operations of the K2 Snow
apparel brand have fully
transitioned
from
K2
Sports in Vashon, Wash., to Santa Rosa,
Calif., where they will operate under Marmot. K2 Inc. acquired Marmot in 2004,
enabling the company to establish an
apparel and softgoods platform that would
be able to create product for all of K2
Inc.’s brands.
During a conference call with analysts
and the media last month, K2 Inc.’s CEO,
Dick Heckman, said that the outerwear
platform was in place on the design development side, with K2 Freestyle, Volkl, and
Marker Ski branded apparel already under the Marmot umbrella, while Ride
snowboard
apparel
was
“expected
shortly.” In addition, ExOfficio is working
in conjunction with Stearns to create their
line of BuzzOff apparel.
Black Diamond Acquires
Anker Climbing Equipment
Black
Diamond Equipment has acquired the big wall climbing
assets of Anker Climbing Equipment, a
manufacturer of portaledges and other big
wall necessities.
Conrad Anker will re-join Black Diamond
as a consultant and technical advisor
through 2008. Anker Climbing Equipment, LLC was created when Conrad
Anker acquired the A5 Ledge assets from
The North Face in 2002, and will continue
to exist under Anker’s ownership. Black
Diamond will integrate manufacturing
and marketing of current ACE products
starting January 2006, displaying them at
the Winter Market Outdoor Retailer and
ISPO Shows respectively.
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Refinements of the big wall equipment
line, utilizing design ideas that BD has
been developing, are expected as ACE
products are integrated into BD’s existing
wall category. Products will be warehoused in Black Diamond’s Salt Lake City
and Basel, Switzerland warehouses, making them immediately available for climbers worldwide. Financial details of the
acquisitions were not disclosed.
Next Month in
•
Gear Preview: Technical Apparel, Technical Footwear,
and
Winter
Camping
Hardgoods
L.L. Bean Inks New Market- •
ing Partners...
Ultralight
Merchandising:
Heavy Sales on Light Gear
L.L. Bean is shifting its
marketing strategy and
has hired two new advertising firms to address the reality of
multi-channel marketing in today’s retail
environment. The company has hired
JWT, a New York advertising firm, to handle its traditional media advertising needs
and MEC Interaction, a firm that specializes in on-line and electronic media.
In published reports, the company said
that it is looking for a new approach to
communicating with web shoppers as online sales grow as a percentage of total
sales. The primary goals of the new relationships are to infuse some “new energy”
into Bean’s ad campaign and to become
more proficient at multi-channel marketing and advertising. The new contracts
are reportedly worth roughly $20 million.
•
Fighting Shrinkage: A Look at
the New Technologies
•
Retailer Profile: Marketing
Specialty Retail Work
•
The Latest News in the Outdoor Industry
•
The Youth are in the Backcountry: How to get them in
Your Door
Liberty Helps VauDe Post
Strong Pre-Season...
VauDe is looking at double-digit pre-season order
increases for the summer
2006 season for both the
German and the international market. The strongest growth was
reported in the apparel and backpack
product lines, but positive pre-season
gains were seen in all other sectors as
well. Jan Lorch, international sales manager at VauDe attributed much of the
growth to the Asian market and the company’s new distribution partners in Switzerland and USA. In June, Vaude inked
an agreement for a long-term relationship
with Liberty Mountain. The deal called for
Liberty to start selling the Spring ’06
Vaude line this year, which they successfully executed at Outdoor Retailer Summer Market.
19
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