The Industry Alliance 1.9

STRAIGHT FROM THE SOURCE
WHAT REALLY DRIVES SNOW SPORTS SALES – WEATHER, TRENDS, MONEY?
What drives season to season fluctuations in the snow sports market?  Is it the weather?  Innovation?  A healthy economy?  Social trends?   So far this season overall retail sales of snow sports equipment, apparel and accessories are up 11 percent over last season.  During the same time period, overall economic indicators including Consumer Confidence, gross domestic product, manufacturing orders, the Consumer Price Index, mass layoffs data, employment statistics, personal wealth data, and indexes of the New York Stock Exchange and NASDAQ show a weakening economy.  However, the weak economy doesn’t seem to matter to our market, while other industries are suffering snow sports is booming!  The snow has fallen in record amounts across the country this year so it must be the weather, but sales of equipment have increased far less than apparel and accessories.  More people are wearing snow sports apparel on the street, even if they never wear it on the slopes, so maybe social trends are driving the increases.  Much of the information about these trends is anecdotal, we believe what we can see and what our colleagues tell us, but sometimes that information can fool us.  Only a mathematical model that allows us to look at many different factors and their combined effect on snow sports sales can give us the objective answer.

What really drives snow sports sales?  Based on a new mathematical model SIA is working on, it appears that a combination of wealth, weather, and social trends drives the market and those factors differ in strength for equipment, apparel and accessories categories.  SIA’s new mathematical model is an index that can show the effects of product innovation, weather, the economy, and changing social trends separately and in concert with each other on the market or specific market segments.  The ability to see the actual impacts of drivers like innovation and weather can help optimize the positive effects on the marketplace.  For example, early results show that it was the introduction of shaped skis into the marketplace that drove equipment sales to new highs in the 1990’s, and this season heavy snowfall had the most impact on apparel sales but social trends also played a significant role.  Knowing those drivers and their impact can improve planning efforts across the industry.

In addition to the value of knowing what drives sales in the market, SIA’s new index may be used to predict market conditions.  For example, if we know that weather is the main driver of parka sales and most reliable weather predictions call for a milder than average winter then we can predict slow sales for parkas.  We will be able to answer questions like – what effect will the weakening economy have on snowboard sales?  What sport is most driven by heavy snowfall in the Midwest?  If the economy is weak, and snowfall is light next year, what will happen to equipment sales?  SIA will use the model to answer these questions and more.  Keep an eye out in late July for the unveiling of the SIA Snow Sports Market Index.   

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:

What are the future dates of the SIA SnowSports Trade Show?

THE WORD ON THE SLOPES
High Sierra Sport Company announced the addition of Jack Rohrbach, as Senior Director of Product Sourcing and Merchandising, and Stella Peterson, as Director of Public Relations, to its team… Flow amateur’s Petja Piiroinen and Sarka Pancochova struck gold at the 2008 World Junior Championships in Italy winning the big air titles for both the men and women…. Online retail trainer 3point5.com and the Board Retailers Association (BRA) announced a partnership to build and promote Web-based training for the board sport industry… BRA also announced that it has partnered with Board-Trac, a market research firm, to conduct quarterly brand specific, retail-focused surveys…For the fifteenth year, the International Skiing History Association, during its Aspen Skiing Heritage Week (March 30 – April 4), honored writers and filmmakers for their outstanding contributions to the historical record of skiing.  For a complete list of awards and winners, click on the full release in the Media Center on snowsports.org.

On a separate note, our industry has experienced some great media coverage of late highlighting some top athletes in their respective sports. Ellen Degeneres apparently is a huge fun of our industry having both Bode Miller on March 26 and Simon Dumont on April 21 on her show as guests. Meanwhile, Lindsey Vonn scored a great feature story in the April 15 edition of the New York Times highlighting her successful season as the World Cup overall champion.                         

SIA SEASON PASS
SIA MEMBERSHIP RENEWAL BEGINS TODAY!
Today is the first day of May and at SIA that means it’s membership renewal time.  This is the perfect time to verify the information we have for your company.  Change of address or phone number?  Have your contacts with us changed?  Now is the time to let us know.  The online renewal system will open TODAY – please look for our email with the link and password information you will need to complete the process.  Remember all of the information found in our published directory and on the web site is taken from our database – please take the time to make sure we have the correct information needed to promote your business.   Renew early and continue to enjoy the full range of services that SIA offers. 

BUSINESS OF SNOW
FROM ONE GREAT SNOW YEAR TO THE NEXT, LET’S CELEBRATE EARTH DAY 365.
As the world celebrated Earth Day on April 22, SIA distributed a survey to the snow sports industry to gain insight into helping structure our green initiative.

A healthy environment is critical to the snow sports industry and we are currently in the process of developing a Sustainability Charter that will help lead the industry to greener practices. 

Industry suppliers, retailers and sales reps were asked to read the SIA Sustainability Charter and provide feedback.  Most told us that their current level of sustainability performance was about average, but they want that standard to improve.  

Across the board there is support for an industry wide sustainability effort led by SIA. Specifically, the industry wants SIA to:

• Identify tactics and options that support sustainability;
• Develop a database of successful sustainable practices and activities;
• Create a set of standard sustainability principals for the snow sports industry.

SIA is continuing to work closely to develop and launch the Sustainability Charter by Summer 2008. If you want to read the SIA Sustainability Charter and provide feedback on it, please click here.

We strive to be Your Intelligent Partner.365. Help lead us to be a greener, more eco-conscious industry. Check out how the SIA SnowSports Trade Show pushed forward as an eco-friendly show.

SNOW SMARTS
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 order 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. 

POWDER TO THE PEOPLE
JOIN THE NATIONAL EFFORT TO CELEBRATE HEALTH AND FITNESS DAY
Since we are in the business of celebrating healthy lives and active participation in sports, SIA encourages everyone to celebrate Health and Fitness Day on May 21, 2008.  As created by the National Association for Health and Fitness in 1989, the National Employee Health & Fitness Day is “dedicated to inspiring employers’ from all sectors to address improving the health of their workforce.  The case for investment is compelling – employee health is an asset to the employee, to achieving employer goals and to America’s competitiveness in the global economy,” stated NAHF Board President Dr. Avron Abraham.

Join us in the national effort to celebrate on May 21 and encourage your employees to engage in active sports participation not just for one day, but year round as well.   For more information, you can also visit www.physicalfitness.org.