The Industry Alliance 1.8

STRAIGHT FROM THE SOURCE
SNOW SPORTS PRODUCT SALES CLOSING IN ON $3 BILLION BY SEASON’S END
Snow sports sales surpassed $2.75 billion in February with $768 million in equipment sales, $1.1 billion in apparel sales, and $895 million in accessories sales.  While apparel and accessories sales have increased in both units and dollars through all channels this season, equipment sales have remained relatively flat overall.  “Apparel and accessories have sold very well this year in all channels, in fact, apparel and accessories are primarily responsible for the 11% gain in dollars sold across the snow sports market so far this season,” said Kelly Davis, Director of Research for SnowSports Industries America (SIA), the not-for-profit industry trade group that represents manufacturers and distributors of snow sports products.  Equipment sales in snow sports specialty shops increased less than 2% in dollars over last season with slight decreases in the number of alpine skis and in the number of snowboards sold. Chain stores sold less equipment than they did in 2005.06, but dollars spent on equipment were up slightly.  Although equipment sales on the Internet are quite strong, the channel is still too narrow to make a significant difference overall. 

The marketplace is made up of three primary sales channels; the Internet, Specialty shops, and chain stores.  Specialty shops sell the largest share of equipment, apparel and accessories but the Internet and chain store channels have a significant share of the market; and the Internet channel grew by close to fifty percent this season.

Specialty Shops
Snow sports consumers have spent more than $1.7 billion dollars in specialty shops so far this season.  Apparel sales lead the way with $609 million followed closely by accessories with $579 million in sales.  Apparel sales have increased 6% in dollars over the August to February period last season and accessories are up more than 7% in dollars.  Curt Geiger, Vice President at Descente reported, “Leisure Trends and Descente/DNA dealers report to us that we performed very well this past season at specialty retail.   Most dealers reported that the two brands were nearly completely sold through.”  “The upper end of Descente/DNA products led the way in consumer demand, he added. Only equipment sales have remained flat this season.  This time last season, 436,133 pairs of skis had been sold in specialty shops compared to 429,621 this season.  Snowboard sales weren’t much brighter in specialty with an overall decrease of about 1% in units so far this season.  Nordic propped the equipment category up with increases of 26% in units and more than 28% in dollars.

Chain Stores
Consumers have spent almost $574 million on snow sports equipment, apparel and accessories in chain stores so far this season.  Equipment sales in chain stores are down from 2005.06 totals for the August to February time period by 7% in units and 1% in dollars.  Equipment declined by 11% in units with integrated ski systems leading the decline with a 40% decrease in unit sales.  In fact, of the 645,000 pairs of skis sold across the market, chain stores sold just 18% (117,838).  Snowboards were down 13% in units and 6% in dollars since the 05.06 season.  On the bright side, apparel is selling well in the chain stores channel; apparel sales have increased 19% in dollars since 2005.06.

Internet
The Internet channel continues to become both wider and deeper with vast increases in sales of equipment, apparel and accessories.  Overall, the Internet channel for snow sports goods has increased 42% in units and by 47% in dollars.  Clicking consumers have spent $453 million this season online for snow sports goods.  Keep in mind that currently, Internet sales account for less than one fifth of all sales in the snow sports marketplace.  However, at the current growth rate, Internet sales will reach more than $650 million and account for 25% of all snow sports sales by the end of the 2008.09 snow sports season.

Customers appear to be increasingly more comfortable clicking to buy skis, snowboards, parkas, goggles, helmets, and pants online.  Snow sports equipment sales over the Internet increased by 60% in units and by 79% in dollars.  Compare that to the flat or decreasing sales of equipment in specialty shops and in chain stores.  Equipment is the fastest growing category in the Internet channel this season.  For example, online sales of adult twintip skis have increased from 7,500 pairs last season to more than 22,000 this season. 

SIA partners with Leisure Trends Group to provide reliable data about the snow sports market, and about the people who work and play in the snow.

THE RESULTS ARE IN
CAN THE IRS HELP YOU?
The season is almost over and the IRS – Intelligent Research Source – is here to help you understand the market.

How do your inventory levels compare to the industry average?
What is your position in the marketplace?
What are the top selling brands and products?
What is selling through specialty retail shops?  Chain stores?  The Internet?  eBay?
Who plans to buy uniforms and rental equipment and what is their contact information?
What kinds of skis, snowboards and apparel are women buying?
Do you really know where your prospective retail customers are located?

These are just some of the questions that can be answered using SIA’s exclusive research products and services including:

Intelligence Reports | Retail Audit products - Brand Share Reports, Top Line Reports | eBay Market Share Reports | inSight™ | Uniform and Rental Surveys | Model for Success | and many more.

To get you started, look at this free Executive Summary. For additional information, please visit snowsports.org or contact your Regional Sales and Marketing Managers.

MEMBER SERVICES – YOUR ASSOCIATION
GET THE DETAILS ABOUT SNOW SPORTS SALES ON EBAY
How many new skis and snowboards sold on eBay during the past two seasons?  The numbers are hard to ignore!

How does that compare to specialty sales?
How many items sold by brand? 
By model?  
How much do they sell for on eBay? 
How do eBay prices compare to prices in other sales channels? 
Who buys more snow sports products on eBay – men or women? Teenagers or 40 year olds?

The SIA eBay sales report answers these questions and more, including model-share reports, brand share reports, and category top line summaries for Alpine, Snowboard, Nordic, and Accessories (goggles and helmets).   If you want to know the market position of each brand sold on eBay during a given season, or month, and you want to know how much it’s selling for and who is buying it then this report is for you.

Did you know that more than half of the snow sports equipment sold on eBay is new?  Consider that in 2006.07 between August and March, more than 56,000 snowboards, the equivalent of 18 percent of all snowboards sold in specialty retail were sold on the eBay website.  According to the NY Times, eBay’s share of the online auction market exceeds 95 percent, and they are growing at a rate of 30 percent each year.  The online market for snow sports is growing fast and eBay is a big player.  The SIA eBay Sales Report summarizes data for the 2005.06 and the 2006.07 seasons on every single sale on the eBay website of alpine, Nordic, and snowboard equipment as well as helmets and goggles.

Contact your Regional Sales & Marketing Manager for more information.

CBP & CHINA AGREE TO TRADE SECURITY PILOT PROGRAM
In a joint effort, U.S. Customs and Border Protection (CBP) and the General Administration of China Customs moved to improve global supply chain security by starting a pilot validation program in China.  The trial program will allow U.S. inspectors access to validate the security practices of the Chinese suppliers.

The pilot program was formulated by China using the C-TPAT minimum security criteria as guidance.  CBP supply chain specialists also aided China by providing technical assistance.

Three C-TPAT certified U.S. companies volunteered to participate in this pilot program.  These companies were chosen based on volume, product types, and the location of their supply chains in China.  CBP will now use this information to determine if these companies can receive a higher level of benefits through the C-TPAT program. 

Under C-TPAT, companies that take action to meet minimum security requirements for their industry sector are potentially subject to fewer time-consuming inspections and other benefits that will help improve transit time and costs.  To be eligible for the benefits, importers are expected to require foreign suppliers to follow the same criteria. 

This initiative was an important first step toward cooperation between CBP and China Customs in regards to import security.

For complete details, please see Customs New Release at: http://www.cbp.gov/xp/cgov/newsroom/news_releases/archives
/2008_news_releases/march_2008/03242008.xml    

SHOW BUSINESS
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: 

ARE THERE ENOUGH RESTAURANTS?
Denver has close to 100 restaurants within walking distance of the Colorado Convention Center or accessible via the 16th Street free shuttle or free light rail. There are over 30 shuttles alone for 16th Street Pedestrian Mall where over 90 restaurants (zones 1 and 3) are located. The 16th Street shuttle runs every 70-90 seconds from 6:00-1:00 AM, Monday thru Saturday and 7:00-1:00 AM on Sunday. It is also interesting to note that the 16th Street Mall is approximately two blocks from the Colorado Convention Center, which is less distance from the Mandalay Bay Convention Center to the Luxor. Denver offers diverse menu options.

THE WORD ON THE SLOPES
FLOW announced the 08/09 women’s Myriad snowboard in partnership with the Boarding For Breast Cancer foundation.  In other news, FLOW snowboarding introduced an exclusive line of signature series snowboards inspired by its team of pro riders. Scotty Lago’s Signature Series “Quantum” snowboard graphic features a spin on the “toxic avenger” that not only raises awareness about the pollution going on in his back yard, but also gives back to an organization called the Action Sports Environmental Coalition (A.S.E.C)…BULA teamed up with “Keep Winter Cool,” an innovative campaign to fight global warming. BULA will contribute 2% of its GREEN product line sales to support a sustainability grant program coming on line in the 2008/09 season to provide seed money to innovative resort initiatives on global warming… Leed’s, a member of Polyconcept North America announced a multiyear extension to its 2005 agreement with High Sierra. Starting in 2005, Leed’s carried 29 High Sierra products and since has almost tripled its offering… Chris Steinkamp joins Factory Design Labs as Vice President of Account Services, effective immediately. He will be responsible for overseeing the agency's Account Services department and leading the agency's efforts in client strategy, planning and relationship management…For the second year, PrimaLoft® will continue its support of the World Backcountry 2008 Freeride Jam by sponsoring The North Face Race Series.  The races will be held on April 19 and 20 at Whistler Resort, B.C.  To read more information about these happenings, click on the full releases in the Media Center on snowsports.org.

John Leland Sosman, MD, of Concord, Massachusetts, died at his home on 3 April after long illness. He was 87.   He began organizing local ski races in the walk-up era of the sport, and went on to volunteer in all levels of racing, from high school leagues to the Olympics, for the next 50 years. He was a Director of the United States Ski Association (USSA) for over 30 years and a delegate and committee member for the International Ski Federation (FIS) for 25 years. He served on the hill for Winter Olympic games from 1964 in Innsbruck to Salt Lake City in 2002. The current generation of skiing directors, many of whom he recruited and trained, looked on "Doc" as a booster, teacher, mentor and example; several of them still consider themselves his pupils. Among numerous awards for his contributions to the sport, he received USSA's highest volunteer honor, the Blegen Award, in 1976, and was inducted into the U S Ski Hall of Fame in 1999.                         

SIA SEASON PASS
May is fast approaching!   Mark your calendars now for "National SIA Membership Renewal Month" which begins May 1st.    During the month, we encourage you to renew your membership using our online system.   Remember, SIA’s membership year runs from June 1, 2008 through May 31, 2009.  

Stay tuned, you will be receiving an e-mail from SIA's membership department on May 1, 2008, to renew your membership online for the 08-09 season. We will provide you with the online link and your username and password to access the system.  SIA member companies who exhibit at the SIA SnowSports Trade Show, must have a current membership in place in order to be assigned exhibit space.  

As a member-owned organization, we are here to grow your business through the support and collective development of the snow sports industry. Please take a moment and review the many assets SIA offers as we work for you and with you year-round as Your Intelligent Partner.365.

BUSINESS OF SNOW
SIA HOSTS NEW YORK MEDIA SHOWROOM TO HELP SHOWCASE MEMBER PRODUCTS
The third annual SIA Summer Snowdown will take place in Manhattan this summer on Wednesday, July 16.  This summer media showroom event is aimed at A-list New York journalists.  With proper timing and planning New York City showrooms have proven an effective and efficient approach to securing product placements for winter season gear reviews, fashion layouts and holiday shopping guides in major newspapers, magazines and television.  Over the past two years, the Summer Snowdown has experienced significant success in getting winter sports products in front of mainstream publications with over 50 magazines attending each year.  Journalists attending last year’s event accounted for over 150 million total circulation for their respective publications.  Additionally, winter sports products were featured in numerous mainstream publications, representing millions of dollars in ad equivalency.

This event continues to provide the ideal environment for media to experience the products hands-on, ask questions and form substantial relationships with company personnel that will extend well into the future.  Over 100 media outlets will be extended invitations to attend the Summer Snowdown which will take place at Westside Loft, located at 336 W 37th St. from 10:00 am – 3:00 pm.  Food and beverage will be provided throughout the previewing hours.

Currently there are five spots left in this year’s event and requests will be honored on a first-come, first-serve basis.  You must be a current member of SIA and have exhibited in the SIA.08 SnowSports Trade Show to participate in this event.   Space/booth rental for the SIA Summer Snowdown is $3500 with additional rental packages available from GES for display needs.  Companies interested in participating should contact Alicia Allen at aallen@snowsports.org.

ARE YOU PREPARED FOR THE FUTURE? CALLING ALL FAMILY OWNED BUSINESS OWNERS
SIA, as Your Association, is offering an invaluable seminar – Planning for Succession – on Wednesday, June 18 in Denver. The day-long seminar will feature you writing your family mission, business mission, family strategic plan, business strategic plan as well as several other important and timely matters. The seminar will feature Audrey Drosser of Baltimore-based SC&H Financial Advisors and an expert on business succession plans and Stu Keiller, author of SIA’s Planning for Succession Guide. Keiller and Drosser will work with participants to tackle a number of serious business concerns such as the Family Mission, the Business Mission, Integration of Missions, Family Strategic Planning, Business Strategic Planning, Determining Goals and Objectives, Compensation and Ownership and many related topics.

Planning for Succession will run from 9 a.m. to 5 p.m. and will take place at the Curtis Hotel. “This is a unique opportunity for retailers, suppliers and reps to learn from experts what they should do to prepare for a transition of their business to a successor whether that means a family member, a partner or another entity,” said Mary Jo Tarallo, director of Education for SIA. “This seminar was well-received at the trade show so we are bringing it back by popular demand.”

Business owners and entrepreneurs, with or without children, should plan to attend. Cost for the seminar, including a workbook, CD, continental breakfast and lunch is $250.00 (value - $1500). Lodging arrangements can be made at the Curtis Hotel. Questions can be directed to Tarallo at 703.556.9020. Click here for seminar registration form.

Interested parties will also have the opportunity to learn more about the Denver Convention Center, the site of the 2010 SIA SnowSports Trade Show by attending a tour to be held on June 19 from 9 a.m. to 12 noon. Additional information about the tour will follow shortly.    

WHAT ARE YOU DOING FOR EARTH DAY?
Earth Day is Tuesday, April 22.  What impact will you have on Mother Earth?
Go green. Plant a tree. Volunteer. Offset your CO2 output.
Recycle. Reuse. Renew.

On Earth Day, you will be receiving an e-mail with a survey requesting your input on SIA’s environmental efforts. 

Building on SIA’s ongoing sustainability efforts, SIA has engaged The Brendle Group, Inc. (brendlegroup.com) to work with the snow sports industry in developing SIA’s first Sustainability Charter. The Charter will provide you with a road map and guiding principles for environmental stewardship and sustainability efforts. 

The survey seeks to involve our diverse industry to assure that the Charter encompasses the unique products, company cultures and local conditions we represent to effectively move the industry forward in demonstrating our commitment to environmental responsibility and sustainability.  

Go green and think about what you are doing for the environment. And, what should SIA be doing for you and the industry.

SnowSports Industries America
Your Intelligent Partner.365.

POWDER TO THE PEOPLE
SIA WFG PROGRAM EXPOSES SNOWSPORTS AND ITS PRODUCTS  TO HUNDREDS  AT NATIONAL CONFERENCE
SIA hosted a Winter Feels Good exhibit at the annual American Alliance for Health, Physical Education, Recreation and Dance (AAHPERD) conference held in Dallas, TX, last week and distributed the newly-developed Winter Feels Good educational CD to nearly a hundred physical education and recreational teachers attending the conference. The CD includes lesson plans, take home flyers, video clips and interactive learning modules designed to help to teach elementary level children “best practices” for alpine skiing, cross country skiing, snowboarding and snowshoeing. Content on the CD was reviewed by the National Association for Sport and Physical Education (NASPE) and lesson plans were developed by credentialed physical education professionals.

“We considered the event a huge success for the program and the industry since many people had heard about what we had to offer and came over to our booth to learn more about how they can get youth involved in winter outdoor activities,” said Mary Jo Tarallo, director of Education for SIA. “Elementary level physical education teachers see an average of 500 children per school so our reach for promoting snow sports stretches way beyond the conference. It was interesting for us to note that many industries such as tennis, golf, bowling and even archery now are exhibiting at AAHPERD conferences because they know the power of this market for their activities.”