$295
Download
1 / 57

theretailmarketplaceanalysis - PowerPoint PPT Presentation


  • 297 Views
  • Updated On :

$295 The Retail Marketplace Analysis 2003 SnowSports Industries America 8377-B Greensboro Drive McLean, VA 22102 (703) 556-9020 Prepared by: Julie Lynch, Director of Market Research Executive Summary

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'theretailmarketplaceanalysis' - albert


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Slide1 l.jpg

$295

The Retail Marketplace Analysis

2003

SnowSports Industries America

8377-B Greensboro Drive

McLean, VA 22102

(703) 556-9020

Prepared by:

Julie Lynch, Director of Market Research


Executive summary l.jpg
Executive Summary

  • The 2002-03 winter sports season was the fourth best ever for the industry. The season advanced $2.2 billion spent by consumers at specialty and chain stores. This is up 4.1% from the previous season of $2.1 billion.

  • With more Specialty stores on the East coast and abundant snowfall, these types of stores led the advance with sales up 7.1% in dollars. Chain stores lagged behind 5.1% in dollars because of the slower than normal sales in the Western half of the country.

  • Unit sales during the 2002-03 season were up 5.3% overall. Specialty store units gained 14.4% while chain stores decreased 10.5%.

  • The big growth areas in equipment were the ski binding systems, soft boots and juniors.

  • This was the biggest season ever for junior snow sports products; 1,274,353 units were sold for $96.8 million. This is very promising for the ski industry. The earlier we get kids involved in snow sports the longer they will participate.

  • The trends for next season will be seen in Alpine Touring/Telemark equipment.


Table of contents l.jpg
Table Of Contents

INTRODUCTION.. .. .. .. .. .. .. 1

Average Snow Sports Retailer .. .. .. .. .. 2

CONSUMER SPENDING .. .. .. .. .. .. 3

Methodology and Sample Size .. .. .. .. 4

Specialty and Chain Store Information .. .. .. 5

Dollars Spent by Consumers at Specialty and Chain Stores: 2002-03 .. 6

Dollars Spent by Consumers at Specialty and Chain Stores: 2001-02 .. 7

Dollars Spent by Consumers at Specialty and Chain Stores: 2000-01 .. 8

Dollar Spent by Consumers at Specialty and Chain Stores: 1999-00 .. 9

Sales ($): Five Year Trend .. .. .. .. .. 10

Units Sold at Specialty and Chain Stores: 2002-03 .. .. .. 11

Units Sold at Specialty and Chain Stores: 2001-02 .. .. .. 12

Units Sold at Specialty and Chain Stores: 2000-01 .. .. .. 13

Units Sold at Specialty and Chain Stores: 1999-00 .. .. .. 14

Specialty Store Retail Sales ($): Five Year Trend .. .. .. 15

Chain Store Retail Sales ($): Five Year Trend .. .. .. 16

Retail Unit Sales: Five Year Trend .. .. .. .. 17

Retail Sales by Week for Winter Sports Products .. .. .. 18


Slide4 l.jpg

Table of Contents

Snow Sports Sales by Channel of Distribution.. .. .. 19

Alpine and Cross Country Equipment .. .. .. 20

Average Retail Price of Alpine Skis .. .. .. 21

Units Sold of Alpine Skis .. .. .. .. 22

Average Retail Price of Alpine Boots .. .. .. 23

Units Sold of Alpine Boots .. .. .. .. 24

Average Retail Price of Alpine Bindings .. .. .. 25

Units Sold of Alpine Bindings .. .. .. 26

Snowboard Equipment .. .. .. .. 27

Average Retail Price of Snowboards .. .. .. 28

Units Sold of Snowboards .. .. .. .. 29

Average Retail Price of Snowboard Boots .. .. 30

Units Sold of Snowboard Boots .. .. .. 31

Average Retail Price of Snowboard Bindings .. .. 32

Units Sold of Snowboard Bindings .. .. .. 33


Slide5 l.jpg

Ski/Snowboard Apparel .. .. .. .. 34

Accessories .. .. .. .. .. 35

Junior Products .. .. .. .. 36

Average Price Paid by Consumers at Specialty Stores .. .. 37

Average Price Paid by Consumers at Chain Stores .. .. 38

Product Mix of Total Winter Sports Product Sales .. .. 39

Total Equipment Sold at Specialty and Chain Stores .. .. 40

Total Apparel Sold at Specialty and Chain Stores .. .. 41

Total Apparel Accessories Sold at Specialty and Chain Stores .. 42

Total Equipment Accessories Sold at Specialty and Chain Stores .. 43

OTHER SNOW SPORTS ACTIVITIES .. .. .. .. 44

Snowshoeing .. .. .. .. .. 44

Trends in Snow Sports .. .. .. .. 45

SNOW SPORTS RELATED WEB SITES .. .. .. 49

BIBLIOGRAPHY .. .. .. .. .. 50


Slide6 l.jpg

“Are You Ahead of the Curve?” How do your margins on snow sports products compare to the average retail shop? This report can be used to compare your retail establishment performance to the overall retail market place and help you examine your business. It can be an important asset when gaining credit lines from financial institutions.

In an effort to keep the snow sports industry professional informed, the information in this report is gathered from many sources and compiled by SnowSports Industries America (SIA) especially for retail management. It is provided in a PowerPoint format so you can use these slides for your own presentations.

Special thanks to Leisure Trends for all their hard work on the Retail Audit.

The information contained in this report is the property of SnowSports Industries America (SIA). It cannot be reproduced or extracted in whole or in part in any way without the prior written permission of SIA.


Who is sia l.jpg
Who is SIA?

SIA is the national, not-for-profit, member-owned trade association of competing snow sports companies. Working together, our members promote and develop snow sports through a national trade show, market development programs and other special events.

Membership in SIA is open to product manufacturers, distributors, suppliers and retail shops that are involved in the snow sports industry and meet specific membership requirements. For retail shops, membership supports the development of winter sports through public relations efforts and consumer programs, while offering cost saving benefits, including valuable industry research, shop links to SIA’s web site (www.thesnowtrade.org), professional photographs for marketing use, competitive discount programs with FedEx® and more. Call SIA (703)-556-9020 for more information about membership and help continue making North America the best snow sports market in the world.


Introduction l.jpg

1

INTRODUCTION

The retailer has a tremendous economic impact on the winter sports industry. In each short season (August to March), retailers sell over $2 billion worth of equipment, apparel and accessories to consumers in the U.S.

Winter sports products are sold by different types of retailers. This report concentrates on five types of retailers which sell equipment, apparel and accessories within winter sports. These retailers include: sports specialty (carry two or more categories of sports), ski specialty, outdoor stores (hiking, climbing, camping etc and also winter sports), snowboard specialty and sporting goods chain (3 or more storefronts). This report does not include mass merchants such as Wal-Mart and Kmart, large mail orders companies or Internet companies and department stores.

Throughout the last decade, the number of alpine and cross country skiers has remained constant. Participation rates for alpine skiing have ranged between 7.4 and 12.4 million and for cross country between 2.2 and 5.8 million. The newest element in snow sports has been snowboarding. The number of snowboarders has exploded in the last 10 years, increasing 367% since the start of the decade from less than 1.2 to 5.6 million riders.


Average snow sports retailer l.jpg

2

Average Snow Sports Retailer

Average selling space devoted to winter sports products 3,134 square feet

Average yield per square foot $339

Percentage that keep their shop open all year round 50%

Percentage that carry alpine equipment 58%

Percentage that carry snowboard equipment 62%

Percentage that rent equipment 48% (alpine skis)

58% (snowboard)

32% (cross country)

Percentage that offer mail order/catalog sales 7.5%

Percentage that sell products from their web site 21.8%

Source: 2001 SnowSports Retail Market Study


Consumer spending l.jpg

3

CONSUMER SPENDING


Methodology and sample size l.jpg

4

Methodology and Sample Size

The SIA Retail Audit uses a representative sample of retail stores throughout the country that sell alpine, cross country and snowboard merchandise. These sample stores submit to Leisure Trends (the market research firm which does this research for SIA) their end-of-the-month sales and inventory figures.

Retail sales are tracked on a seasonal basis, August through March. The retail members submit their data for August-October, November, December, January, February, and March (6 reporting periods).

Retailers are in urban, suburban and resort locations. In a normal year, resort retail panel members report sales beginning in the month of November.

The data from panel stores are used to create a computer model that projects the sample data to the total population of stores selling alpine, cross country and snowboard merchandise.

Each year the panel is modified. These changes are caused by any number of reasons including closed stores, unwillingness to cooperate, data integrity issues and panel refinement.


Specialty and chain store information l.jpg

5

Specialty and Chain Store Information

The SIA Retail Audit defines specialty and chain stores in this manner:

Specialty Stores:

Higher priced merchandise

More technical products

Annual average sales per store front: $1.5 million

These are stores like Christy’s, Ski Market, Alpine Hut, Kenny’s Double Diamond, Blades Board & Skate, Mesabi

Chain Stores:

Lower priced merchandise

Less technical products

These are stores like Garts, Oshmans, TSA, Dunhams, REI, Sports Chalet

*Sales through mass merchants such as Wal-Mart and Kmart, large mail order companies or Internet companies and department stores are not included in the SIA Retail Audit.

* Due to confidentiality agreements between Leisure Trends Group and retailers on the panel, the list of participating retailers is not available.


Slide13 l.jpg

Dollars Spent by Consumers at Specialty

and Chain Stores

6

2002-2003 Season (August -March)

Apparel

Equipment

Accessories

Total

Specialty

$476,179,598

$662,255,120

$575,114,038

$1,713,548,756

(28%)

(39%)

(33%)

(100%)

Chain

$190,170,816

$487,572,541

$149,366,438

$148,035,286

(30%)

(31%)

(100%)

(39%)

+

+

+

+

______

______

______

______

$666,350,414

$724,480,476

$810,290,406

$2,201,121,297

(30%)

(37%)

(33%)

(100%)

Overall, the 2002/03 season advanced in dollars sales to $2.2 billion or 4.1% spent by consumers at specialty and chain stores. With more Specialty stores on the East Coast and abundant snowfall in this region of the country, these types of stores led the advance, with sales up 7.1%. Chain stores lagged behind 5.1% because of the slower than normal sales in the Western half of the country where the majority of snow sports retailers are chain stores.Apparel and accessories sales at chain stores took the biggest hit (-10.0% and 11.4%, respectively). Equipment sales in specialty stores were flat (-0.3%) but up a healthy 10.7% at chains. The biggest winner was accessories sales at specialty store, up a whopping 18.6%. In addition, due to the cool winter weather in the East, apparel sales gained 5.5% at specialty stores.

Source: 2002-03 SIA Retail Audit


Slide14 l.jpg

Dollars Spent by Consumers at Specialty

and Chain Stores

7

2001-2002 Season (August -March)

Apparel

Equipment

Accessories

Total

Specialty

$451,235,852

$664,102,348

$484,957,388

$1,600,295,589

(28%)

(41%)

(31%)

(100%)

Chain

$211,250,819

$513,650,000

$168,646,355

$133,752,827

(26%)

(33%)

(100%)

(41%)

+

+

+

+

______

______

______

______

$662,486,671

$653,603,743

$797,855,175

$2,113,945,588

(31%)

(38%)

(31%)

(100%)

Overall, the 2001/02 season fell slightly in dollars sales (-4.8%) to $2.1 billion spent by consumers at specialty and chain stores. Specialty stores sales were down 4.2% and chain stores 6.4%.Post 9/11 sales began to turn upward, as it looked like the mountains would become a refuge from the density of the city and a place where people could reflect and find some spiritual and physical nourishment. But it didn’t snow. Equipment sales at chain stores took the biggest hit (-12.2%). It was snowboard equipment that consumers were not buying specifically in its hot bed of Southern California. In addition, accessories sales were slow in both specialty (-9.2%) and chain (-8.2%). But overall, despite the weather, interest in snow sports and therefore sales, held up a lot better than previous seasons when snow never fell.

Source: 2001-02 SIA Retail Audit


Slide15 l.jpg

Dollars Spent by Consumers at Specialty

and Chain Stores

8

2000-2001 Season (August -March)

Apparel

Equipment

Accessories

Total

Specialty

$476,978,444

$659,127,545

$534,202,543

$1,670,308,532

(29%)

(39%)

(31%)

(100%)

Chain

$212,602,506

$548,731,176

$152,402,522

$183,726,148

(28%)

(33%)

(100%)

(39%)

+

+

+

+

______

______

______

______

$689,580,950

$717,928,691

$811,530,067

$2,219,039,708

(37%)

(31%)

(32%)

(100%)

The 2000/01 season was the third best with $2.2 billion spent by consumers at specialty and chain stores. The best season ever at $2.3 billion was 1999/00. This was due to heavy snowfall in the late winter and early spring. Feb/Mar posted $814 million or 34% of the 1999/00 season’s sales which pushed sales to an all-time high as compared to Feb/Mar sales this season which were $490 million. This season was down 4.7% in dollars but up 5.2% in units. The dollar sales downturn was caused almost completely by the average price drop of alpine ski equipment. However, at the end of the 2000/01 season, inventories were at their all-time low. The industry lost sales because of low stock of the best selling items. In most categories there was an 80% or greater sell through. Specialty stores saw a decline of 17% in apparel and 12% in equipment sales; however, a bright spot was accessories sales which gained 6%.

Source: 2000-01 SIA Retail Audit


Slide16 l.jpg

Dollars Spent by Consumers at Specialty

and Chain Stores

9

1999-2000 Season (August -March)

Apparel

Equipment

Accessories

Total

Specialty

$571,923,757

$742,464,015

$490,109,097

$1,804,496,869

(32%)

(41%)

(27%)

(100%)

Chain

$200,751,871

$522,890,848

$152,861,352

$169,277,625

(29%)

(33%)

(100%)

(38%)

+

+

+

+

______

______

______

______

$772,675,628

$659,386,722

$895,325,367

$2,327,387,717

(38%)

(33%)

(29%)

(100%)

The 1999/00 season was the biggest for the snow sports industry in terms of dollars spent by consumers at specialty and chain stores. Consumers spent a whopping $2.3 billion. Specialty stores saw increases in dollars spent on apparel (9%), equipment (1%) and accessories (12%), while chain stores saw a decline of 29% in equipment sales.

Source: 1999-00 SIA Retail Audit


Slide17 l.jpg

Sales ($): Five Year Trend

10

For the past five years, retail sales for winter sports products have stayed relatively flat. The largest year in history was the 1999/00 season where sales tracked at $2.3 billion.

Source: 1999-2003 SIA Retail Audit


Slide18 l.jpg

Units Sold at Specialty and

Chain Stores

11

2002-2003 Season (August -March)

Apparel

Equipment

Accessories

Total

Specialty

3,724,576

3,665,882

20,497,913

27,888,371

(13%)

(13%)

(73%)

(100%)

Chain

3,098,382

12,679,341

1,362,376

8,218,584

(11%)

(65%)

(100%)

(24%)

+

+

+

+

______

______

______

______

6,822,958

28,716,497

5,028,258

40,567,712

(12%)

(17%)

(71%)

(100%)

Overall units sales were up 5.3%. Specialty store units gained 14.4% while chain stores decreased 10.5%. Overall, unit sales for apparel were flat (-0.9%) while dollars increased. This can be explained by the higher average selling price this season. The opposite was true in chain store, where there were deals to be had in apparel. Equipment in both specialty (1.6%) and chain (4.0%) increased.

Source: 2002-03 SIA Retail Audit


Slide19 l.jpg

Units Sold at Specialty and

Chain Stores

12

2001-2002 Season (August -March)

Apparel

Equipment

Accessories

Total

Specialty

3,668,849

3,609,097

17,097,854

24,375,801

(15%)

(15%)

(70%)

(100%)

Chain

3,218,286

14,164,347

1,309,824

9,636,237

(9%)

(68%)

(100%)

(23%)

+

+

+

+

______

______

______

______

6,887,135

26,734,091

4,918,921

38,540,148

(13%)

(18%)

(69%)

(100%)

Overall units sales were down 10.6%, both specialty (-10.3%) and chain (-11.2%) saw losses. The accessories category led the way for unit sale losses. Both specialty (-12.9%) and chain (-16.8%) stores saw double digit declines. The only bright spot was seen in apparel at chain stores (+8.3%).

Source: 2001-02 SIA Retail Audit


Slide20 l.jpg

Units Sold at Specialty and

Chain Stores

13

2000-2001 Season (August -March)

Apparel

Equipment

Accessories

Total

Specialty

3,851,615

3,682,671

19,627,806

27,162,092

(14%)

(14%)

(72%)

(100%)

Chain

2,971,891

15,942,963

1,383,217

11,587,855

(9%)

(72%)

(100%)

(19%)

+

+

+

+

______

______

______

______

6,823,506

31,215,661

5,065,888

43,105,055

(12%)

(16%)

(72%)

(100%)

Even though sales during the 2000/01 season were down 5.4%, units sold increased in both specialty (2%) and chain stores (17%). Overall, the largest gains were seen in the accessories category with a 14% increase.

Source: 2000-01 SIA Retail Audit


Slide21 l.jpg

Units Sold at Specialty and

Chain Stores

14

1999-2000 Season (August -March)

Apparel

Equipment

Accessories

Total

Specialty

4,913,077

3,914,013

17,801,068

26,628,158

(18%)

(15%)

(67%)

(100%)

Chain

2,788,752

13,614,972

1,280,953

9,545,267

(10%)

(70%)

(100%)

(20%)

+

+

+

+

______

______

______

______

7,701,829

27,346,335

5,194,966

40,243,130

(13%)

(19%)

(68%)

(100%)

During the 1999/00 season, units sold at specialty and chain stores grew 11% over the previous season. The largest growth was seen in accessories at both specialty and chain stores, an increase of 16% and 20%, respectively.

Source: 1999-00 SIA Retail Audit


Specialty store retail sales five year trend billions l.jpg

15

Specialty Store Retail Sales ($): Five Year Trend (Billions)

Specialty store dollar sales for the 2002-03 were the second highest to date, tracking at $1.71 billion.

Source: 1998-2003 SIA Retail Audit


Chain store retail sales five year trend millions l.jpg

16

Chain Store Retail Sales ($): Five Year Trend (Millions)

Even with abundant snowfall in many parts of the country, the 2002-03 season for chain stores was one of the worst in the past five seasons. Sales tracked at $488 million.

Source: 1999-2003 SIA Retail Audit


Slide24 l.jpg

Retail Unit Sales: Five Year Trend

(Millions)

17

Like retail sales, units have stayed relatively consistent for the past five years. However, there was a slight up tick during the 2000-01 season due to increases in unit sales at chain stores.

Source: 1998-2003 SIA Retail Audit


Slide25 l.jpg

Retail Sales by Week for Winter Sports

Products

18

End f October

End of Nov

End of Dec

End of Jan

End of Feb

End of March

This graphs shows the peaks and valleys of retail sales by week during the season. The peak time for winter sports product sales are the end of November through end of December. There is also an increase in sales during the end of January through February when stores are trying to clear out inventory with the end of the season sales. This is also a popular time for ski vacations, during Presidents Day weekend and Martin Luther King Day.


Slide26 l.jpg

Snow Sports Sales by Channel of

Distribution

19

Other includes: Ski Specialty (multiple stores), Cross Country Specialty and Sporting Goods stores (single shop)

Source: 2000/01 SIA Distribution Study


Slide27 l.jpg

Alpine and Cross Country Equipment

20

2002/03 SIA Retail Audit

  • These numbers reflect cross country equip sold in ski/snowboard specialty and chain stores. It does not take into account xc equip sold in Outdoor specialty shops.

With the abundant snowfall in the East, alpine ski equipment sales made positive gains. Skis (including ski/binding integrated systems) (+0.5% or 3,385 units), boots (4.8% or 38,224 units) and poles (19.3% or 98,775 units) all increased in unit sales. Alpine boots were clearly the unit sales leader with a new product, alpine soft boots, accounting for 5.7% of boot sales. Alpine bindings declined in unit sales (-10.1% or 65,973)

Cross country equipment sales held their ground this year. Unit sales were up in boots (10.3%), bindings (2.7%) and poles (13.6%). Skis were down 5.7%. With the rising age of the Baby Boomers, many are taking the sport up again. We should see even more sales of cross country equipment in the next couple of years.


Average retail price of alpine skis l.jpg

21

Average Retail Price of Alpine Skis

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit

Fat: Skis with wider dimensions than Midfat, these are typically powder skis, waist dimensions are typically over 80mm, shovels are typically over 110mm

Mid-fat: Skis with normal sidecut, overall dimensions are slightly wider than carve waists, are typically over 66mm, shovels are typically over 100mm

Carve: Skis with normal amount of sidecut

Skiboards: Less than 110cm, have twin tip construction and are sold with non-releasable bindings

Twin-Tip: Both tip and tail are upturned, allowing for riding in either direction.

*Percent difference between the average cost and average retail selling price. For example: If the wholesale cost to the retailer is $50 and the retail cost to consumer is $100, it would therefore be a 50% margin.


Units sold of alpine skis l.jpg

22

Units Sold of Alpine Skis

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit

Fat: Skis with wider dimensions than Midfat, these are typically powder skis, waist dimensions are typically over 80mm, shovels are typically over 110mm

Mid-fat: Skis with normal sidecut, overall dimensions are slightly wider than carve waists, are typically over 66mm, shovels are typically over 100mm

Carve: Skis with normal amount of sidecut

Skiboards: Less than 110cm, have twin tip construction and are sold with non-releasable bindings.

Twin-Tip: Both tip and tail are upturned, allowing for riding in either direction

Traditional skis: These types of skis are not included on this chart, very few units are sold


Average retail price of alpine boots l.jpg

23

Average Retail Price of Alpine Boots

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit

High Performance: Sold at the highest price points, includes race boots

Sport Performance: These boots are sold at middle price points

Recreation: These boots are sold at the lowest price points

*Percent difference between the average cost and average retail selling price. For example: If the wholesale cost to the retailer is $50 and the retail cost to consumer is $100, it would therefore be a 50% margin.


Units sold of alpine boots l.jpg

24

Units Sold of Alpine Boots

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit

High Performance: Sold at the highest price points, includes race boots

Sport Performance: These boots are sold at middle price points

Recreation: These boots are sold at the lowest price points


Average retail price of alpine bindings l.jpg

25

Average Retail Price of Alpine Bindings

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit

*Percent difference between the average cost and average retail selling price. For example: If the wholesale cost to the retailer is $50 and the retail cost to consumer is $100, it would therefore be a 50% margin.


Units sold of alpine bindings l.jpg

26

Units Sold of Alpine Bindings

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit


Snowboard equipment l.jpg

27

Snowboard Equipment

Source: 2002-03 SIA Retail Audit

Today there are approximately 50 companies that manufacture or distribute snowboards worldwide. The snowboard equipment category stayed flat this season, overall gaining only 0.4%. Chains did extremely well, up 14.2% in units. Specialty stores experienced a 6.3% decrease which can be attributed to kids not buying products. Bindings did well this season (+5.3%) while snowboards (-2.1%) and boots (-1.4%) lagged behind.

After doing really well in their introduction season, snowdecks/skates, dropped slightly in unit sales (-1.8%).


Average retail price of snowboards l.jpg

28

Average Retail Price of Snowboards

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit

All Mountain: Also includes BAM, race, carve and powder boards

Freeride: Boards primarily for on mountain use (out of park/pipe use)

Freestyle: Boards primarily for park/pipe use

Ride/style: Combines attributes of freeride and freestyle boards

*Percent difference between the average cost and average retail selling price. For example: If the wholesale cost to the retailer is $50 and the retail cost to consumer is $100, it would therefore be a 50% margin.


Units sold of snowboards l.jpg

29

Units Sold of Snowboards

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit

All Mountain: Also includes BAM, race, carve and powder boards

Freeride: Boards primarily for on mountain use (out of park/pipe use)

Freestyle: Boards primarily for park/pipe use

Ride/style: Combines attributes of freeride and freestyle boards


Average retail price of snowboards boots l.jpg

30

Average Retail Price of Snowboards Boots

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit

Step-in: Used with step-in binding

Non step-in: Meant to be used with strap binding

*Percent difference between the average cost and average retail selling price. For example: If the wholesale cost to the retailer is $50 and the retail cost to consumer is $100, it would therefore be a 50% margin.


Units sold of snowboards boots l.jpg

31

Units Sold of Snowboards Boots

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit

Step-in: Used with step-in binding

Non step-in: Meant to be used with strap binding


Average retail price of snowboards bindings l.jpg

32

Average Retail Price of Snowboards Bindings

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit

Step-in: Step-in interface includes step-in high back and plate binding

Non step-in: Two buckle- traditional strap binding

*Percent difference between the average cost and average retail selling price. For example: If the wholesale cost to the retailer is $50 and the retail cost to consumer is $100, it would therefore be a 50% margin.


Units sold of snowboards bindings l.jpg

33

Units Sold of Snowboards Bindings

Specialty Stores

Chain Stores

Source: 2002/03 SIA Retail Audit

Step-in: Step-in interface includes step-in high back and plate binding

Non step-in: Two buckle-traditional strap binding


Ski snowboard apparel l.jpg

34

Ski/Snowboard Apparel

Source: 2002-03 SIA Retail Audit

Ski/Snowboard apparel did fairly well in specialty stores (+1.5%) but not as well in chains (-3.7%). The biggest seller in chain stores were apparel tops that were on sale from last season or carry-over. Among individual categories, tops, both alpine (+3.6%) and snowboard (+5.8%), did well overall. It was in the bottoms category that sales fell short, alpine (-1.0%) and snowboard (-2.6%).


Accessories l.jpg

35

Accessories

Source: 2002-03 SIA Retail Audit

The accessories product categories were chosen based on their popularity among consumers. Accessories have become an important part of on-snow retail sales, making up 33% of all dollars spent by consumers and representing 71% of unit sales. The 2002-03 season was great season for accessories, almost all categories saw increases. The largest increases were helmets (+23.6%) and headwear (+20.0%).


Junior products l.jpg

36

Junior Products

This was the biggest season ever for Junior snow sports products, 1,274,353 units were sold for $96.8 million as compared to the 2001/02 season with 1,095,923 units sold for $90.5 million. This was definitely the year of the big bang in junior products, all categories made double-digit gains. The largest gains were seen in the categories of alpine boots (+45.6%) and shell parkas (+87.5%). This is very promising for the ski industry. The earlier we can get kids involved in snow sports the longer they will participate. The only category to see a loss was alpine bottoms (-10.7%)

Source: 2002-03 Retail Audit


Average price paid by consumers at specialty stores l.jpg

37

Average Price Paid by Consumers at Specialty Stores

( ) represent 2001/02

One of the most frequently asked questions is “How much does the average ski or snowboard cost?” Prices paid by consumers for on-snow products have remained fairly consistent with last season. Most changes in price were in the $10 and under range. There were three products which decreased in price significantly compared to last season at specialty stores. These products were alpine skis (-$15.40), ski/binding integrated systems (-$95.63) and snowshoes (-$27.24).


Average price paid by consumers at chain stores l.jpg

38

Average Price Paid by Consumers at Chain Stores

( ) represent 2001/02

Consistently, winter sports products sold in chain stores sell for less then specialty stores. In chains this season, alpine skis (-$33.75), ski/binding integrated systems (-$116.54), cross country skis (-$11.59) and snowboards (-$12.33) saw price decreases. It seems that chain stores cut equipment prices slightly to move product out the door.


Product mix of total winter sports product sales l.jpg

39

Product Mix of Total Winter Sports Product Sales

Source: 2002-03 Retail Audit


Total equipment sold at specialty and chain stores l.jpg

40

Total Equipment Sold at Specialty and Chain Stores

2002/03

Dollars

Units

Typically, about 78% of equipment is purchased through specialty stores, with 22% sold through chains.

This chart shows that 55% of the total equipment sold (units) is alpine while 65% of total equipment dollars

is alpine. Total equipment dollars have been shifting away from alpine and toward snowboard. During

the 1999/00 season snowboard equipment represented 25% of total equipment dollars, currently it represents 30%.

Source: 2002-03 SIA Retail Audit


Total apparel sold at specialty and chain stores l.jpg

41

Total Apparel Sold at Specialty and Chain Stores

2002-03

Units

Dollars

This chart shows the breakdown of apparel by general product categories sold at specialty and chain stores. Tops are comprised of parkas, shells, vests, fleece tops and sweaters. Bottoms include bibs, shell waist pants, insulated pants, stretch pants, fleece pants and junior pants. Suits are comprised of insulated suits, shell suits, stretch suits and junior suits. Snowboard apparel includes tops and bottoms.

Source: 2002/03 SIA Retail Audit


Total apparel accessories sold at specialty and chain stores l.jpg

42

Total Apparel Accessories Sold at Specialty and Chain Stores

2002-03

Dollars

Units

The four largest apparel accessories categories in terms of dollars (besides “other”) are base layer (23%), gloves,(17%), headwear (15%) and socks (11%). These four categories contribute 66% of dollar and 68% of unit sales.

Source: 2002-03 SIA Retail Audit


Total equipment accessories sold at specialty and chain stores l.jpg

43

Total Equipment Accessories Sold at Specialty and Chain Stores

2002-03

Dollars

Units

Besides “other”, helmets and goggles are the largest category contributing 20% and 19%, respectively, of the total dollar equipment sales. However, the “other” category, which contributes 30%, contains items like wax, suntan lotion, watches, etc.

Source: 2002-03 SIA Retail Audit


Slide51 l.jpg

OTHER SNOW SPORTS ACTIVITIES

44

Snowshoeing

Even though snowshoes have been in existence for hundreds of years, the activity has recently experienced a resurgence. NSGA estimates about 1,014,000 people experienced snowshoeing in 2000. The SIA Retail Audit indicates that 140,997 snowshoes were sold in specialty and chain winter sports stores during the 2002-03. This is an increase of 5.2% over the 133,974 units sold during the previous season. Industry experts indicate that the growth of the sport is due to the heightened interest in exercise and family-oriented winter activities. Experts are also quick to point out the short learning curve and the low cost to get involved. The average price of snowshoes paid by the consumer at a specialty store during the 2002-03 season was $128 and shoes can be used with any winter boot and normal outerwear.

The demographics of snowshoeing participation for the 2000 calendar year are:

Gender: Male 59.2% Female 40.8%

Income: Under $15,000 7.7% Age: 7 to 11 9.4%

$15,000 - $24,999 3.9% 12 to 17 7.6%

$25,000 - $34,999 12.8% 18 to 24 5.5%

$35,000 - $49,999 24.6% 25 to 34 23.8%

$50,000 - $74,999 25.4% 35 to 44 20.4%

$75,000 + 25.6% 45 to 54 17.4%

55 to 64 12.6%

65+ 3.4%

Source: 2001 NSGA Sports Participation Study


Slide52 l.jpg

Trends in Snow Sports

45

Backcountry

Each year more skiers, riders and other winter adventure seekers discover the lure of powder snow and head for the backcountry. Backcountry offers freedom and untouched powder for advanced skiers and snowboarders who want to push their limits. Helicopter ski companies are booming and ski resorts- especially those built on National Forest Land- have responded by opening entry gates to ungrounded glades and bowls. Part of the boom in snowboarding is driven by backcountry snowboarders who use boards which split into a pair of skis for free heel touring but snap back into a single unit for downhill riding. Telemark skiing and Alpine Touring are ways to access the backcountry.

Telemark

Telemark is described as the “free heel method of skiing.” Telemark skiers can access the backcountry or buy lift tickets and tear up the slopes. With the development of the plastic telemark boot, which provides more stabilty and torsional stiffness than their leather predecessors, more and more people are trying telemark skiing. The plastic boots have helped make telemarking more about dynamic, powerful turns than casual touring. This has also helped fuel the trend of stronger tele bindings and increased the acceptance of wider, shaped skis that can hold an edge in challenging conditions. A new category that is emerging is the twin-tip tele-ski designed specifically for terrain-park tricks.

Alpine Touring (Randonnee)

While telemark gear is becoming more beefier, alpine touring gear is becoming the choice for accessing the backcountry. Alpine touring combines free-heel climbing convenience with fixed heel stability for downhill cruising. Alpine touring allows for a free lifting heel for skiing uphill but latches down for the descent so you can ski downhill with a binding like a alpine resort rig. Randonnee gear allows for people with alpine skis to ski backcountry without having to learn a new turn.


Slide53 l.jpg

Trends in Snow Sports

46

Snowdecks/Snowskates

Considered the “new winter skateboard,” snowdecks/snowskates are becoming one of the fastest growing trends in winter sports. Decks are essentially a snowboard without bindings (or skateboard without wheels) for sliding on snow, rails, tables, etc. The snowdeck consists of an upper and lower deck separated by two risers with skateboard like construction on the upper deck and a snowboard-like lower deck. While designed for tricks, this design greatly enhances a rider’s ability to carve turns. Riders can practice tricks they do in the streets on the snow.

Soft Shell Apparel

Soft shell is an emerging apparel category that currently offers highly breathable garments that are also abrasion-resistant and wind-resistant. They offer stretch and water repellency and are designed to replace two layers (the inner/insulating and hard shell outer layers of a traditional outdoor-apparel layering system) within one garment. This is the first generation product to replace multiple shells and insulating layers into one soft shell garment. It is a garment which you can wear closer to your body without restricting movement.

Alpine Soft Boots

Following in the wake of snowboard boots, soft boots could be the future of alpine. The current hard plastic of the boot has been sliced off the top of the boot shell and replaced with soft, fabric like flaps of waterproof artificial leather or plastic. The goal was to make boots warmer, more comfortable and much easier to put on and take off. These boots are aimed at the casual skiers- those that don’t ski aggressively enough that they’re willing to struggle with a stiff, high-performance shell.


Slide54 l.jpg

Trends in Snow Sports

47

Ski/Binding Integrated Systems

Integrated which means a pre-assembled set of skis, plates and bindings for one price.

Women Specific Products

More and more manufacturers are seeing the value in making winter sports products geared specifically to women. The physical differences between men and women account for differences in how the two sexes ski, snowboard and snowshoe. In the past couple of seasons, manufacturers are devoting new product lines to women in alpine, snowboard and snowshoe. Currently there is one snowboard company devoted to making snowboards specifically for women.

Skiboards

Skiboards look like they are constructed for Santa’s elves. They are snow-sliding tools that have elements of both traditional ski and snowboards. They are miniature snowboards, ranging in size from approximately 76 cm to 99 cm, - that strap to traditional ski boots and can be used for learning to ski, carving, cruising runs, floating through powder, skating on flats and catching big air. Fueling the growth of skiboards is its short learning curve. It can be picked up in two days or less, partially because balancing on skiboards is as easy as walking. The sensation is similar in ways to skiing and snowboarding, but the independent leg action and toned-down feeling closely resembles in-line skating. They are an easy transition into the world of winter sports. In addition, one set of skiboards can be used by the entire family since one size skiboard fits almost any boot, with a simple adjustment of the non-releasable binding. Skiboarding is a huge hit among the Echo Boomers (kids between the ages of 12 and 24). As skiboards have gained in popularity, the original skiboarders have since moved on to longer twin tips in order to ride faster, float better and go bigger when performing high level tricks.

Twin Tip Skis

These type of skis are used for freestyle jumping with flipping and twisting in half pipes. The ESPN X-Games has helped launch this product with the youth movement.


Slide55 l.jpg

Trends in Snow Sports

48

Snowtubing

Snowtubing is becoming a hot trend at ski resorts across the country. Snowtubing is just like tubing down the river except you do it on snow. Currently 43% of resorts offer snowtubing. It is most prevalent at resorts in the Southeast (83%), followed by Northeast (51%), the Midwest (39%), Rocky Mountains (29%) and Pacific West (31%). During the 2002/03 season, at resorts that offer snowtubing, the average number of snowtubing visits recorded was 17,378 which was up 9.2% from last season. Resorts began offering snowtubing as an alternative activity in the 1996-97 season. The peak years of introduction were 1999/00 (23%) and 1997/98 (19%). The rate of introduction has slowed with only 2 resorts adding tubing for the first time in 2002/03.

Ski Bikes

The snow bike or ski bike is a specially-engineered bike-like device with skis instead of wheels designed to use the force of gravity to descend snow covered mountains. The inherent characteristics of the bike allow you to navigate the mountain with a greater degree of control than other snow-riding tools. Generally, with practice, you can ride any terrain that would normally be negotiated on skis. There are currently about four manufacturers which make ski bikes. The bikes have been around Europe for 50 years. Please refer to www.ski-bike.org for more information.


Snow sports related web sites l.jpg

49

SIA Sites: www.thesnowtrade.org Association site

www.snowlab.com Consumer site

www.winterfeelsgood.com National PR Campaign

www.wintertrails.org Winter Trails Snowshoe Program

www.snowlink.com Consumer site

Industry Media and Association (Trade) Sites:

www.nsaa.org National Ski Areas Association

www.psia.org Professional Ski Instructors Assn.

www.saminfo.com Ski Area Management

www.outdoorindustry.org Outdoor Industry News

Consumer Snow Sports Sites:

www.powdermag.com Powder Magazine

www.snowboard.com Snowboard

www.skinet.com Ski news site

www.skiracing.com Racing news

www.twsnow.com Transworld Snowboarding Site

www.skipressmag.com Ski Press Magazine

www.skimag.com SKI Magazine

www.Freeskier.com Freeskier Magazine

www.skiingmag.com SKIING Magazine

www.freezeonline.com Freeze Magazine

Olympic Sites: www.usoc.org U.S. Olympic Committee

www.usskiteam.com U.S. Ski Team Info

SNOW SPORTS RELATED WEB SITES


Bibliography l.jpg

50

BIBLIOGRAPHY

SIA Retail Audit Report, Leisure Trends GroupMethodology: National sales volumes accumulated by a store panel collection of retail accounts including both specialty ski and chain stores. SnowSports Industries America 8377-B Greensboro Drive, McLean, VA 22102; (703) 506-4211 or [email protected]

NSAA Kottke National End of Season Survey, Rosall, Remen, & Cares. Lakewood, CO. Methodology: Survey of business volume taken annually of NSAA resort area members at the end of each season. To order, NSAA 133 South Van Gordon St, Suite 300 Lakewood, CO 80228; (303) 987-1111.

NSGA Sports Participation Study: SnowSports, National Sporting Goods Association, 1601 Feehanville Drive, Suite 300 Mt Prospect, IL 60056-6035; (847) 296-NSGA.

SIA offers many research reports to both members and non-members. Please contact our National Sales and Marketing Manager Chris Semon at 703.506.4211 or [email protected]


ad