The Industry Alliance 2.1

STRAIGHT FROM THE SOURCE
DO YOU KNOW ABOUT WOMEN, YOUTH AND THE INTERNET? COME TO THE SIA FALL WORKSHOPS AND LEARN EVEN MORE.
SIA’s Fall Workshops will examine the integration of internet marketing with traditional sales techniques all with a focus on youth and women. Snow sports product sales over the Internet retail channel jumped last winter. Total dollars spent increased 46% to $492M with the largest increases in equipment. Is your business part of this phenomenon or are you falling behind? 

SIA’s Fall Workshop Series - Women, Youth and the Internet: Are You Connecting? – examines integrating Internet marketing and sales with a more traditional approach practiced for years at brick and mortar establishments.  Workshops are scheduled in three locations – Springfield, MA on September 10, metro Denver, CO on September 17 and Sacramento, CA on September 18. 

You asked for it and we are responding -- this year’s workshops will feature two topics with more interaction. The full day program kicks off with a State-of-the Industry review of what is going on in the general marketplace and how this is impacting the snow sports industry.

A comprehensive morning presentation will outline state-of-the art tools that can drive traffic to your Web site, help you showcase and sell product and track your customers. Mike Duncan of Sage Island Productions will offer a practical hands-on approach to understanding and using Search Engine Optimization (SEO), landing page tips that appeal to the youth and women’s markets and tips on how to incorporate your Internet presence into other aspects of your business.

The afternoon session will focus on proven results-oriented techniques that will help with determining and communicating your message to consumers, merchandising, closing the sale, and how your Internet presence can change the dynamics of your overall sales performance.  Tom Shay of Profits Plus goes way beyond his previous well-received presentations and dissects sales approaches that will work for you. A break-out session will enable you to apply what you have learned to your own scenario.

Breakfast and lunch are provided and during lunch we will honor the Reps of the Year with an Awards presentation. For details, click HERE

MEMBER SERVICES: YOUR ASSOCIATION
inSIGHT™ – THE INDUSTRY’S GPS SYSTEM.
SIA will soon be releasing its 6th update of its popular and well-regarded industry database and sales management tool, inSight™.  SIA’s ultimate database and sales management tool is used by over 100 of the leading equipment, apparel and accessory brands in the industry as the source for the coming and goings of winter sports retailers in the US and Canada. Over 1,000 hours of time was invested by our Database Manager in the past year to not only track down which stores have closed, moved and opened in the past year, but we’ve also tracked hundreds of stores’ product mix changes.

Version 6.0 of inSight™ is available as an upgrade for current users or your company can start fresh with pre-loaded maps and lists that are perfect for planning your Winter season mailings, sales rep planning or prospecting for new accounts.  New orders of inSight™ will include your copy of Microsoft’s newly released MapPoint 2009 software. Sales reps -- ask your Sales Managers if they have the latest information from SIA that they can give you. We challenge anyone to find a more complete and comprehensive database on winter sports retailers and resorts. 

inSight’s™ database of US resorts and retailer storefronts stands at over 8,000.  We’ve made over 10,000 changes to phone numbers, addresses, product mixes and other details that are reflected in our latest update. You’ll be able to easily reference nearly 500 closed and out-of-business storefronts and also see almost 500 locations added to our database.

Contact Chris Semon at SIA (Chris@snowsports.org) for more information or view some screen-shots and see a list of suggested uses on our website snowsports.org/insight.  Pre-order your copy today.

THE RESULTS ARE IN
MADE IN CHINA?
2008 China Labor Law – Impacts on the Snow Sports Industry
The China Labor Law enacted January 1, 2008 will raise costs of manufacturing in China and may have a significant impact on the snow sports industry.  The following summary of this newly enacted law and its possible effects may help clarify issues and identify possible impacts.  For more information about China’s new Labor Law, please call or email Kelly Davis, SIA’s Director of Research, at 703.556.9020 x224, or email KDavis@snowsports.org

The Chinese government enacted the new Labor Law in response to the discovery of thousands of children working in slave-like conditions in brick kilns and coal mines in the Shanxi and Henan provinces.  In China, there is increasing public concern that employers are mistreating and exploiting China’s employees, specifically failing to pay proper wages and provide basic benefits. Previously, at least 40% of private Chinese companies’ employees had no contract at all.

A variety of factors are driving up manufacturing costs in China and the effects will reach our shores and our mountains. The producer price index was up 7.2% annually in May 2008 reflecting significant increases in costs to produce finished goods including parkas, skis and snowboards.  Rising commodities prices are a major culprit, particularly the staggering increases in the cost of petroleum and the declining value of the dollar exacerbates those costs.  The China Labor Law that went into effect on January 1, 2008 also adds significantly to the cost burden.  Chinese manufacturing facilities have raised prices to cover the higher costs of materials and labor resulting from market pressures as well as the new law’s provisions.  Many manufacturing plants in China typically operate on razor-thin margins and the combined burden of materials, labor and logistics costs have forced many manufacturing plants to shut down operations. The resulting diminished capacity has further raised production costs.

The China Labor Law has several components, it stipulates that:

• All employees have formal term contracts,

• Employees can only be terminated with cause (validity of cause for terminations TBD by the centralized Chinese Labor Party),

• After two term contracts, the employee must be given an open-ended contract. Combined with termination only with cause; it is comparable to the tenure system in American universities,

• Employees who have worked for over 10 years for the same firm or had a fixed-term contract renewed twice are entitled to an “open-ended” contract,

• The Chinese Labor Party, an important arm of China’s communist governmental system, has collective bargaining rights for all Chinese workers, and

• Employers must also contribute to a social insurance or unemployment fund for each worker.

Many U.S. companies that manufacture in China have voiced serious concerns about increasing costs due to the new law and other market pressures and they are exploring alternatives.  According to sources in the Department of Commerce Trade Administration contacted by SIA some U.S. manufacturers are bringing production back to the U.S.  They report that the savings realized by outsourcing production to low cost countries has quickly dwindled and the advantages of being closer to the end market and to the consumer now outweigh the benefits of cost reductions that outsourcing provided to them in recent years.  Others have indicated that they will explore alternative low cost markets such as Vietnam to keep their decreasing margins maximized. Gerald Evans, president for global supply chain at Hanes brands told the NY Times that compared with China, “we found more ready availability of both land and labor in both Vietnam and Thailand.” Hanes brands will be shifting some manufacturing from Mexico and Central America to Asia. (NY Times, by Keith Bradsher, published June 18, 2008).

Although countries like Vietnam, Thailand, India and some African and South American countries are attractive because labor costs are low, they lack the fundamental infrastructure to ensure smoothly operating supply chains. Close examination of China’s economic boom reveal that without fundamental infrastructure including modern ports, container trucks and well-maintained roads, China’s economic position in today’s world would be much different.  On the other hand, examining the infrastructure of alternative low cost countries like Vietnam exposes a lack of adequate infrastructure to ensure smoothly operating supply chains. To illustrate, currently many goods are exported from Vietnam by plane. In fact, 75% of all exports leaving Vietnam on a plane are garments (39%) and footwear (25%).  It’s possible that these goods are exported by plane, a far more expensive proposition than transporting goods via container ship, because the total throughput (i.e. capacity) of Vietnam’s seaports at 3.137 million TEUs (twenty foot equivalent unit, a standard shipping container = 2 TEUs) exported in 2006 was less than 16% of the port of Shanghai alone (Shanghai port moved over 20 million TEU and reportedly is growing at a rate of more than 10% annually). Additionally, the skyrocketing cost of fuel has made shipping freight via air a very expensive proposition.

In the snow sports industry prices will increase as the industry copes with rising labor, logistics and materials costs. Snow sports will not be alone; costs will increase across the board and will be passed along in the form of higher prices in all industries impacting the entire U.S. economy.  Fortunately, the snow sports demographic is better positioned to absorb higher prices and tough economic times than target audiences for most industries. And weather, as always, will play the dominant role in determining the health of the snow sports market in the seasons to come. 

In the global marketplace everything is connected and the price of tea in China now matters.  Over the next five to 10 years low cost manufacturing operations will emerge in developing countries around the world.  A ready supply of cheap labor and the means to move goods may make emerging economies in Asia, Africa and South America more attractive to U.S. producers who currently manufacture their goods in China.   American manufacturing may enjoy a comeback as the advantages of producing goods close to the end market and the ability to exploit the weakened dollar bring production home. One thing is certain, as costs of manufacturing rise, so will prices.

SHOW BUSINESS
SIA.09 SNOWSPORTS TRADE SHOW, WILL YOU BE THERE?
People with jobs go to conventions. People with passion come home.
Get ready for four of the most important days on the snow sports calendar (a.k.a. the industry’s largest trade show), hosted in Las Vegas 1.27.09-1.30.09. It is the one place to do business with the entire snow sports family: ski, snowboard, cross country, telemark/AT, snowshoe and fashion—all the branches of the industry family tree will be represented.

So come talk snow and do business with 90% of the retail community’s buying power. Come sneak a peak at next year’s hottest product innovations before they hit the mountain. Come celebrate our business—which is always a pleasure—with over 300 events including fashion shows, parties, athletes, clinics, award shows and more. Come home. Because whether you’re a buyer, seller, networker or fashionista, you’re in the family business of snow.

Online registration opens July 10, 2008. Find everything show-related at snowsports.org/tradeshow.

Book your hotels now, room blocks are open.

Don’t forget, it’s Goodbye to Vegas. We’ve called this town home since Elvis was still in the building. Join us as we thank Vegas for 37 incredible years. Be on the lookout to submit your favorite Vegas moments. Coming soon…

The SIA.09 SnowSports Trade Show, Las Vegas. One family. One house. Mandalay Bay Convention Center, Tuesday, January 27 – Friday, January 30.

Denver:  For the next several newsletters, look here to find answers for frequently asked questions as related to the SIA SnowSports Trade Show move to Denver in 2010.   This week’s featured question: 

WHAT ARE THE MAIN REASONS SIA WENT WITH THE COLORADO CONVENTION CENTER?

1. Snow – We are finally able to put the snow back in snow sports. Snow sports such as Alpine skiing, snowboarding, Nordic skiing and snowshoeing are dynamic, active, fun sports. Our access to snow is now a mile higher than what it has been in the past.
2. Mountain environment – Colorado is home to many of the industry’s key influencers including ski/snowboard publications, manufacturers, retailers, athletes, and world-renowned resorts.
3. Economics – There will be overall decreases in costs for attendees and exhibitors such as hotel room rates, move-in and move-out costs/time, travel and entertainment, etc.
4. Room to grow – Denver has built a brand new convention facility that will allow SIA to increase booth size for growing brands and new categories to the Show.
5. Only show in town – SIA and our industry will be the only trade show in Denver during our Show dates.
6. Big fish, little pond – SIA SnowSports Trade Show will be one of the biggest annual trade shows in Denver.

THE WORD ON THE SLOPES
The Word on the Slope is that we are still on the slopes – at least in certain locations – Snowbird (UT), Willamette Pass (OR)…who else is open? Where are you skiing, riding, snowshoeing? Let us know at pr@snowsports.org... HEAD is sponsoring the Bode Fest, August 23-24, in Franconia, NH…Biege Jones, a longtime employee of Sport Obermeyer, has won the Aspen “Commuter of the Year” award for the past three seasons.  He bikes to work every day (even in the snow).  He only used two tanks of gas during the past year and learned some very expensive lessons on cars and their lack of use!... World Sports Humanitarian Hall of Fame inducts former Olympic skier Jimmie Heuga.  Heuga, living with multiple sclerosis, founded The Heuga Center for Multiple Sclerosis to help people with MS improve their quality of life…The Tecnica Group USA, Inc. and Blizzard Brands will operate as a single business unit. Sam Cook will be the president of this business unit and Jed Duke will work closely with Sam as the Blizzard Division manager. Several key territories will be realigned – New England will be handled by Ivar Dahl, Connecticut and New York, Nick Robinson; Joe Decker, Colorado, Clem Smith, Northern California/Northern Nevada and in Utah Justin Harvey. Nordica and Nitro will operate under Andy Knittle, President and Peter Sachs will continue as GM of Lowa. Peter Weaver, CEO of The Tecnica Group USA, announced these exciting changes on June 24…Signal Snowboards is hosting a “Dream It, Build It, Ride It BBQ” in Huntington Beach, CA on Wednesday, July 23, RSVP to management@signalsnowboards.com … Some exciting news from Outdoor Gear, Inc., Adam Garry’s a father for the fourth time with baby #4, Jeffery Brody, born on June 24 at 12:34 PM…Mom, Jen, and Brody’s three siblings are all doing well (click here to view photo)…There are sad news to report in the SIA family and snow sports industry, Toby DesRoches passed away at the age of 84 on June 26. She was a lifelong participant in snow sports, active in our industry as the wife of Doc DesRoches, SIA’s first Executive Director, and skied well into her 70s. Send us any news you have to pr@snowsports.org.                        

SIA SEASON PASS
IT’S NOT TOO LATE TO RENEW YOUR MEMBERSHIP – OR BECOME A MEMBER!
We hope everyone is enjoying these first months of summer.  It is amazing to realize that we are already into the 08.09 membership year.  Now is the time to check your calendar to make sure you haven’t missed any important items.  Have you paid your member dues?  Remember the membership year runs from June 1, 2008 through May 31, 2009.  The annual payment is due by June 30, 2008.  Please note if your membership is not current by the grace period of July 11, 2008, your SIA membership will be dropped for nonpayment of dues. If you are an exhibitor, this means you will not be assigned exhibit space for the SIA.09 SnowSports Trade Show.  

Please do not risk losing your SIA member benefits. Take a moment and visit snowsports.org.  Click on member services to see all the available benefits SIA offers its members.

If you have any questions, please contact Patricia Grenke – E. PGrenke@snowsports.org or P. 703.556.9020 ext: 222.

WHAT DOES YOUR SIA MEMBERSHIP MEAN FOR YOU?
June 1 marked the beginning of a new year for all of our Premium, Standard, Supporting and Retail members.  The 08.09 year promises to be an exciting one as SIA plans for and executes its last show in Las Vegas, NV, January 27-30, 2009.  As an Association, SIA takes pride in knowing that, as Your Association, we offer unique benefits and services to the industry.

How can you become a member?  (click here for membership information)

Our Sales and Marketing Managers offer an array of tools to help you track and promote your business.  From brand share reports to blast emails, this group works with our members individually to customize the most beneficial packages.  The Sales and Marketing Managers map out sponsorship opportunities and work directly with the Trade Show department to provide advertising/marketing exposure for your brands through our lobby showcase and signage programs.  Along with our sales force, the research arm of SIA compiles the Intelligence Report and exclusive, useful survey information available only to current SIA members.

In addition to the outlined services, SIA offers a rich package of benefits.  Are you taking advantage of the shipping and logistical benefits offered through our member rewards programs?  Participating with the FedEx®, FedEx Kinko’s®, Yellow, and Roadway programs can save your company money throughout the year.  Additionally, as a member of SIA, you have access to legal counsel through DLA Piper Rudnick Gray Cary US LLP, and human resource management advice from SESCO.

Check out snowsports.org for industry information or call 703.556.9020.

BUSINESS OF SNOW
SAVE UP TO 70% ON SHIPPING WITH SIA'S LOGISTICS PROGRAMS
With everyone looking to cut budgets, are you taking advantage of SIA's discount shipping programs with FedEx®, Yellow®, YRC Regional and now Roadway®? If not, Enroll Today!

• NEW! Save up to 45% on select FedEx Express® international services, up to 40% on select FedEx Express U.S. services and up to 22% on select FedEx Ground® services. Enroll Here, use passcode DVGNO700.
• NEW! Save up to 70% on select shipping with Roadway®. Enroll Here.
• Save up to 70% on select shipping with Yellow®. Enroll Here.
• Save up to 70% on select shipping with YRC Regional Transportation. Enroll Here.

FedEx Questions? Call the FedEx Advantage Hotline at 800.475.3708.

Roadway, Yellow and YRC Questions? Call SIA's Roadway/Yellow representative, Jessica Bain at 800.647.3061, ext 6564.

SIA Questions? Contact SIA's Patricia Grenke at 703.556.9020, ext 222 or PGrenke@snowsports.org.

SNOW SMARTS
SIA FALL EDUCATION WORKSHOPS RETURN WITH THE FOCUS ON WOMEN, YOUTH AND THE INTERNET
Youth, Women and the Internet: Are you Connecting?
For a fourth year, the SIA Fall Education Workshops return to several regional locations mid-September. Sessions critical to the growth and future of the snow sports industry will be the focus: women, youth and the internet. Through marketing, merchandising and internet behavior/development learn how these targets are shaping the industry and your business. 

In response to your feedback, we have reduced the workshop presentations to two while adding break-out discussions and networking sessions. Keep an eye out for exact dates, locations and workshop details. The SIA Fall Education Workshops.08 are a SIA SnowSports Institute Program, a year-round initiative to further educate the snow sports industry through workshops, online education, research and trade show presentations.

POWDER TO THE PEOPLE
14TH ANNUAL WINTER TRAILS SCHEDULED FOR JANUARY 10, 2009
The organizers of Winter Trails have announced that the 14th annual event will be held on Saturday, January 10, 2009 at nearly 100 venues throughout North America. One large event, at Estes Park, CO, is scheduled for Saturday, February 14.

Winter Trails is a day when children and adults can try snowshoeing and/or cross country skiing free at participating host sites. With over 11,000 participants in 2008, Winter Trails is one of the largest demo programs in the snow sports industry and is geared to those NEW to snow sports. Winter Trails is an event coordinated by SnowSports Industries America (SIA) in partnership with the Cross Country Ski Areas Association (CCSAA) and the American Hiking Society (AHS).

Locations for Winter Trails events include Nordic Centers, Alpine ski resorts, U.S. Forest Service land, National Park Service land and local recreation and parks facilities. Each location is run by a local organizing group. Activities and times vary depending on the venue but all include free equipment and basic instruction. Many locations include nature walks, clinics and demonstrations on winter sports clothing and equipment. Official and up-to-date information can be found on wintertrails.org.

Presenters of Winter Trails include Alpina, Atlas Snow-Shoes, Atomic, Columbia, Exel, Fischer, Grabber, Kahtoola, Karhu, Mountain Safety Research (MSR), Nature Valley, PEPSICO, Redfeather, Rossignol, Salomon, Sorel, SWIX, Tubbs, Turtle Fur, Whitewoods, W.L. Gore and Associates, and Yukon Charlie’s with media partners Cross Country Skier magazine, OnTheSnow.com, Snowshoemagazine.com, Trax and XCSkiresorts.com.