The Industry Alliance 2.2

STRAIGHT FROM THE SOURCE
WHERE DO 90% OF YOUR CUSTOMERS GO FOR INFORMATION?
The Internet. Some think the Internet is a fad that will go away, that it’s more of a nuisance to real business than a vehicle for commerce; some thought that way about air travel and snowboarding, too.  There’s no stopping the Internet; snow sports consumers go online to meet and talk with each other, to research products and places, and increasingly they are clicking to buy products. In fact, more than 90% of snow sports consumers use the Internet daily and for many of them, it has become their primary information source.  Snow sports consumers are buying more of their equipment, accessories and apparel online although most products are still sold in the shop.  The snow sports Internet retail channel grew 46% in 2007.08 reaching $492 million, roughly 17% of the $2.9 billion sold through all retail channels last season.  Retailers and manufacturers alike have a golden opportunity to captivate this audience with product information, online product review pages, viral marketing campaigns, commerce enabled websites, and other sales and marketing strategies that take advantage of this change in consumer behavior. 

Currently, snow sports information is available across the Internet from Facebook groups, to ski blogs, to a favorite brand’s website, to the local shop’s website; the online community of snow sports participants is growing every day.  Manufacturers and retailers who understand this shift in consumer behavior are positioned ideally to exploit it in the marketplace and increase sales.  Signs are good that the industry is keeping up, 80 percent of U.S. snow sports specialty shops have web sites¹ and the number grows every day.

The majority of Americans use the Internet on a daily basis to check their email, to get information about their health, the weather, their hobbies, and the products they plan to buy.  They also buy products online.  Over the past ten years, this shift in consumer behavior has changed the landscape of the marketplace for all industries, and the snow sports industry is no exception.  In fact, snow sports consumers are more likely than the average American to use the Internet for product research and to buy products online.  According to Pew Research, more than 90% of the snow sports demographic uses the Internet on a daily basis² and the trend toward shopping for, and purchasing products online is increasing at a sharp rate.  In response to this change in buying behavior, many snow sports retailers and manufacturers are providing a vast array of product information, social networking opportunities, and links to other related sites including travel and music, as well as products for sale (and where to buy if they don’t engage in direct sales) on their websites. Snow sports consumers are not alone; they are following a broad trend in the global marketplace.  John Horrigan of Pew Research sums up how consumers use the Internet and their online buying behavior:

The Internet and Consumer Decisions:
Summary of Findings from the Pew Research Internet and American Life Project³

¹SIA Retail Distribution Study 2006/07
²According to the Pew Research Internet and American Life Project (survey conducted Oct-Dec 2007, 92% of 18 to 29 year olds,  90% of those with household income of $50,000 or more, and 91% with a college degree say they use the Internet at least once monthly, and most go online daily.
³Source: John B. Horrigan. The Internet and Consumer Decisions. Washington, DC: Pew Internet & American
Life Project. May, 2008.

• Search: Online information can make product research more efficient, and it can be particularly useful for a feature-rich product. But it is not the only tool buyers use to gather information.
• Influence: Online information is generally modest in its impact on decisions, but looms larger when a purchase requires a big commitment. 
• Participation: Rating products after purchase is surprisingly rare, but music buyers [e.g.] make direct connections with artists after they have bought their tunes.
• Disintermediation: When it comes time to make the transaction, it is still an offline world. But fewer barriers between buyers and sellers can help consumers get better deals. Online resources augment the shopping experience in tactical ways for users.

This Pew Research study indicates that the shift in behavior does NOT mean that consumers rely solely on online information and buying big ticket items online is not typical.  Snow sports consumers still rely on the expertise a specialty shop can offer, and typically, they still buy goods in the shop. However, these days they have a wider array of information sources to tap, including each other in a virtual environment for tips on the best equipment, apparel and accessories. 

Fewer than 20 percent of all snow sports goods sold were sold online in 2007/08 so most customers are buying their big ticket items in the shop.  One common misperception about the Internet is the myth of lower prices.  It makes sense to think that consumers can find a lower price somewhere on the Internet, but there are some disadvantages to buying online.  As shown below, in most cases, the Internet average price is not the lowest average price in a product category.  Take a look at the ski category below, the Internet average price was lowest for midfat and carve skis which were the two lowest performing categories of skis this season.  Keep in mind that shipping costs are not included in the average prices shown below and mounting and tuning may be more expensive for skis not purchased “in-house.” 

Another advantage offered by local shops is the value inherent in a relationship with the shop’s staff.  The Internet does not replace that, it may help customers to be more informed walking through the shop’s door, but they still find value in the expertise of the shop staff.  Keep in mind that consumers only purchased 14 percent (units) of their equipment online during the 2007/08 season.  Additionally, as with the music example given by John Horrigan above, many snow sports consumers identify with the products they buy and engage in social networking on related websites after they purchase an item such as skis or a snowboard giving shops and brands opportunities to maintain relationships with customers, market directly to them, get feedback on products, and build loyalty.

A second misperception about the Internet centers on the online auction site, eBay. The eBay channel is often confused with the Internet retail channel, but it is an independent sales channel that in many ways is not comparable to Internet retail.  Online auctions allow sellers to set a minimum price then buyers make competing bids in an effort to purchase the item of their choice, hopefully at the lowest possible price. Sometimes that happens, but if demand outstrips supply in the market then the price is sure to be higher on eBay than in the retail marketplace.  Think of the Nintendo Wii, the Smart Car, and the iPhone.  Adam Smith would be proud of eBay as a tool of unblemished capitalism; this makes it particularly interesting as a price setting tool because literally, it measures what the market will bear in terms of price.  It can also show which products are most in demand.   An influx of eBay “stores” and click and buy goods on eBay may change the nature of the channel in the near future and make it more comparable to Internet retail, it is a development to watch in the coming season.

The snowboard category was the strongest on eBay of all snow sports hardgoods categories but new (not used) snowboard sales increased just 8 percent in dollars and 3 percent in units in the 2007/08 season.  Compare that to Internet retail snowboard sales that increased more than 70 percent in dollars over the same time period.  The average price of a new snowboard on eBay was $241 including (average) shipping, more than $40 more than the average price in chain stores, and just $40 less than the price of the average board bought in online retail last season.

These changes in consumer behavior driven by the Internet raise many questions about the snow sports marketplace and how to compete in it.  For instance, what can a retailer do to compete successfully when their customers have the whole Internet to shop from?  What can a retailer do to distinguish the shop and attract customers who may be able to find the same product a few bucks cheaper online?  How do you get customers into the store once they have visited the shop’s website?  How do we all use the Internet to grow the industry?

For answers to these questions and complete online purchase data for each product category, please look for the SIA Internet Intelligence Report on September 9th.  This report is free to SIA members and can be purchased for $425 by non-members.

MEMBER SERVICES: YOUR ASSOCIATION
E-MAIL BLASTS – WHAT’S IN IT FOR YOU?
What’s in it for you?  Results, results, results.  SIA has over 12,000 e-mails for buyers, owners and management for at least 99% of all the winter sports retailers and resorts in the US and Canada. SIA Trade Show Exhibitors benefited from fantastic open and click-thru rates during the 07.08 season when emailing to our list. Companies averaged 30% open rates, with some as high as 44%.

Lock in pricing now for Fall, Winter or Spring blast e-mails sends.  Only four spots remain in January, prior to the SIA.09 SnowSports Trade Show. Reserve your send date today, for only a $100 deposit, and pay in February `09. Prices for blast e-mails to buyers in the U.S. start at around $500 per send.

Contact your Sales & Marketing Managers (Ed Wray at EWray@snowsports.org; Reddy Kennedy at RKennedy@snowsports.org; Dave Wray at DWray@snowsports.org).

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 1.27.09-1.0.09. 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 is now open. 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 LIQUOR AND OPEN CONTAINER LAWS IN DENVER?
Denver is not much different from other cities. Open container laws are as follows:

• In booths / in the show hall?  Alcoholic beverages distributed in the Colorado Convention Center (CCC) can travel anywhere within the four walls of the CCC.
• In the lobby area of the CCC?  Alcoholic beverages distributed in the CCC can travel anywhere within the four walls of the CCC.
• Outside on the sidewalk directly in front of the CCC?  Certain changes to the exterior, on-property location can be made via a ‘premises modification’ process.  Centerplate (caterer) holds the liquor license at the CCC so they would handle any such request.  It does take some time to accomplish a ‘premises modification’ so the more advance notice the better.
• On the light rail?  No open container outside of the building unless on CCC property with special permit from city – would require a special event type of permit.
• On the Denver city streets?  No open containers allowed. 
• In cabs or limos, assuming you are not driving?  Limos are fine, cabs are not...

THE WORD ON THE SLOPES
The Word on the Slope is that we are still on the slopes – at least in certain locations – winter 365 can’t get enough, send us your photos from this summer’s journeys on snow: Timberline/Mt Hood, Whistler camp scene, Valle Nevado, Portillo, New Zealand, Australia …. What’s your favorite restaurant /bar in Denver? A winner will be picked from all entries and that person will receive a $250 gift certificate to that establishment … Finally, what have you been reading this summer? Send all entries and photos to PR@snowsports.org... Phill Gross, a leading Boston area investment banker and enthusiastic skier, has been named to the board of trustees for the U.S. Ski and Snowboard Team Foundation according to President and CEO Bill Marolt…. Mt. Hood’s Government Camp played host to Oakley’s big rig as their presence was in full force at the High Cascade Snowboard Camp (click here for Oakley photo), but summer snow sliders are also looking for alternative means of transportation as seen by Motorcycle Guy (click here for Motorcycle guy)….will snowboarders begin to skate to the mountains, skiers ride their mountain bikes or inline skates…rail, light rail, bus, carpool, scooter or hitchhike…how will you get to the mountain this season?... In response to demand from its ski retailers, Q-Active, a division of Quality Bicycle Products (QBP), has partnered with Rossignol to distribute Rossignol’s cross-country ski bindings and related small parts in an exciting dual distribution partnership announced on July 17 read more at http://www.snowsports.org/industry_resources/newsletters_releases... Mountain Hardwear Inc. and Montrail Inc. have announced the addition of three new sales teams to their joint U.S. sales rep force. Effective immediately, the Upper Central Territory will be covered by Brad Werntz and the Pemba Serves group; the Mid Atlantic Territory by Kevin Brew Sales and the South Central Territory by Tri-Marketing agency which includes Greg Allen, Tim Goodwin and Ali Tajiran. “All three of these rep groups, and the individuals involved, have successful histories in the outdoor and surrounding industries." said Donna Williams, Mountain Hardwear and Montrail Eastern Region Sales Manager… Send us any news you have to PR@snowsports.org.

Our industry has suffered some great losses recently. George Bauer, Phil Clark and Jim Woolner all passed away recently. We honor them.

As reported in the New York Times, an instrumental member of the snow sports industry and one of the “greatest generation,” James L. Woolner died on Tuesday, July 15 at age 88. A 1941 graduate of Horace Mann and Yale University, Jim was in the Army four and a half years and in combat across Europe with Patton’s Third Army in 1944/45. He emerged as a Major with four Battle Stars. He was a Pioneer in the Ski Industry as President of Beconta Inc. Jim was one of the most influential people in the ski industry and in the SIA organization. He was one of the key supporters for SIA funding along with National Ski Areas Association (NSAA) the first study about marketing the ski industry called “Getting More People on Snow” by the Glendenning agency. He was also the key player for getting SIA to expand beyond being a trade show organization by supporting investments into marketing and research.

“Jim was one of the most influential people I ever met.  He was a doer and a people person. Jim knew it was people who made the difference and he did what he could to find the right people, support them and challenge them,” stated David Ingemie, President of SIA. “Above all he was fair and loyal, as many of us can attest to.” It is important to note that Jim was very instrumental in SIA moving to one annual show from two as well as the move to Las Vegas.  Finally, Jim was involved in the hiring of the last two Executives to run SIA, Doc DesRoches and David Ingemie. Jim’s service to SIA was long and expansive, from 1960 – 1982 [1960-63 Board of Directors, 1963-64  Executive Committee, 1964-67 Vice President, 1967-69 President, 1969-72 Honorary Chairman, 1972-76 Honorary Director, 1976-79 Board of Directors, 1979-80 Secretary and 1980-82 Board of Directors]. The snow sports industry has lost a true innovator and supporter. He will be missed.

Our industry also lost another supporter on July 13, George Bauer.  After serving as the Advertising Director of SKI Magazine in the late 1960s, George became the Publisher of the nation's oldest ski magazine in 1977. He was SKI's Publisher for the next 15 years, the longest period for any publisher of the magazine in its 72-year history. He retired in 1992. George at one time also served as Publisher of Golf Magazine. During his time at SKI, he became a leading a leading figure in the ski industry and a great promoter of the sport.  He promoted the nationwide Nastar, the National Standard Ski Race, the professional ski racing tour, and a children's instruction program, SKIwee. He created a Ski Business Hall of Fame to honor pioneers whose products and innovations were important to the development of the ski industry. With Pepi Gramshammer of Vail, George established the annual Legends of Skiing award, honoring international skiing stars of the past, through which he befriended many prominent citizens and celebrities, including former President Gerald Ford. In 1986, he created America's 50th Ski Birthday celebration at Sun Valley, marking the 50th anniversaries of SKI Magazine and the Idaho ski resort.

To those who worked with him in the ski industry, he was a legend himself.  He was inducted into the U.S. National Ski Hall of Fame in 1991.

A long-time industry veteran, Phil Clark, born in Denver, CO Oct. 6, 1926, died in Georgetown, CO on July 11, 2008.                       

SIA SEASON PASS
SIA.09 TRADE SHOW REGISTRATION CONTINUES
Will you be attending the 2009 show?   Remember that show badges are a must!  Registration for the SIA.09 SnowSports Trade Show opened in July.  To register online visit the SIA Trade Show web site – or by using this direct link: https://resources.snowsports.org/Registration/.  The show is open to our current members, retailers and media.  If you have questions regarding show attendance policies, please contact Patricia Grenke, our membership manager, at 703-556-9020 x 222 or PGrenke@snowsports.org.

BUSINESS OF SNOW
IT ISN’T ALWAYS EASY BEING GREEN; Yellow Transportation Think It's Worth It
Good citizenship is a company core value. One way Yellow demonstrates good citizenship is by protecting the environment, supporting sustainability in a variety of ways.

Yellow:

• uses biodiesel and alternative fuels
• governs speed for increased fuel efficiency
• reduces emissions
• recycles tires, paper and other materials
• minimizes waste

Yellow is proud to partner with the SnowSports Industries America, an organization that embraces the importance of being green. SIA Members are eligible to receive a 70% discount on qualifying shipments with Yellow. To learn more about the SIA | Yellow shipping partnership, contact Jessica Bain at 800.647.3061, Ext. 6564 or enroll online at Enrollhere.net.

SNOW SPORTS YEAR-ROUND CALENDAR HAS ARRIVED!
Join SIA in the launch of the 2008.09 snow sports season. The annual SIA Industry Planner details some of the most critical dates in the industry trade season from show dates to competition schedules. With over 40,000 copies distributed, the entire industry can be kept up to date on year-round events. All events are subject to change, so please continue to check the online version. A downloadable iCal of the Industry Planner is also available on snowsports.org.

SNOW SMARTS
HAVE YOU SIGNED UP FOR SIA’S FALL EDUCATION WORKSHOPS?
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. 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.

SIA Fall Education Workshop dates and locations:

For more information and to register for the SIA Workshops, please visit snowsports.org/fallworkshops

POWDER TO THE PEOPLE
ON-LINE REGISTRATION AND SPONSOR INCENTIVES ADD NEW TWIST TO WINTER TRAILS 2009
An on-line registration feature and “added-value” sponsor coupons are two new elements of Winter Trails, one of the largest learn-a-snow sport programs in the industry. The program offers free snowshoeing and cross country skiing to children and adults and is scheduled for January 10, 2009. More than 100,000 children and adults have been introduced to snow sports through Winter Trails since its inception 14 years ago by SIA member companies.

The on-line registration will make it easy for participants to register for the Winter Trails event in their local community. This new feature also will help ensure the capture of consumer names of those who participate at a Winter Trails venue and give retailers and suppliers valuable information on who might be interested in purchasing product.  A survey conducted after the 2008 Winter Trails event indicated that more than 50 per cent of respondents said they would purchase as a result of going to a Winter Trails event and an additional 30 per cent said they might purchase.  A little over 11,000 people attended a Winter Trails event last year.

Last year, there were more than Winter Trails 80 locations throughout the U.S. Organizers expect at least that many locations for the 2009 event. New locations will be announced shortly.

Added value coupons will be determined by individual sponsors. Retailers interested in becoming involved with Winter Trails should contact Mary Jo Tarallo at MJTarallo@snowsports.org.

WINTER FEELS GOOD INITIATIVE TOP AT UPCOMING RESORT ASSOCIATION CONFERENCES
School and community outreach efforts through SIA’s Winter Feels Good initiative will be a seminar topic at upcoming resort association conferences in Michigan, New Hampshire and New York. Resorts are interested in learning more about how the Winter Feels Good CD is being utilized in schools and with community groups and how their own outreach efforts can work in tandem with the SIA approach.

Presentations are scheduled for the Midwest Ski Areas Association conference at Boyne Mountain, the New England Summit at Bretton Woods, and at the Ski Areas of New York/Pennsylvania Ski Areas Association conference at Holiday Valley. For the past four years, the Winter Feels Good initiative has been working with resort associations that have school or passport programs. CDs were distributed last year through resorts with active learning programs for younger children.

AND THE ENVELOPE SAYS
NOMINATIONS REQUESTED FOR REGIONAL REP OF THE YEAR AWARDS
SnowSports Industries America (SIA) is proud to announce we are currently accepting nominations from retailers for the third annual SIA SnowSports Regional Rep of the Year Award.  This award recognizes those sales reps in the snow sports industry that have successfully fostered relationships with retail storefronts to help move winter sports products.   

Voting for the regional rep awards began last week with surveys sent out to nearly 7,000 retail storefronts.  Nomination criteria focused on five main components including:  relationships with retail shops; communication with retailers; proactively helping stores manage inventory; conducting shop clinics; and timely response to retail shops’ calls and emails.  

The 2008.09 SIA SnowSports Regional Rep of the Year winners will be recognized at the SIA Fall Education Workshops held in three locations throughout the U.S.  Each winner will receive a commemorative plaque recognizing their commitment to the industry.

Please click here to place your nomination. Please submit your nomination(s) no later than Wednesday, August 13, 2008.

Should you have any questions or concerns, please feel free to contact Sara Hobbs at 703.556.9020 x204 or SHobbs@snowsports.org.