European Market Survey 2007/2008remi.forsans.free.fr/European snowboard market survey 0708.pdfBad...

EuropeanMarket Survey

2007/2008

A BOARDSPORTS CONSULTING JOB

Sell-In 07/08 : BOARDS

-4,01%100,00%395225TOTAL

-0,95%0,18%730Bulgara

25,00%0,25%1000Greece

17,23%0,25%1000Kosovo

1,01%0,27%1067Croatia

-14,69%0,34%1333Slovakia

-17,75%0,34%1333Romania

-11,36%0,40%1600Denmark

21,17%0,43%1700Serbia montenegro

-3,68%0,43%1700Hungary

1,82%0,67%2667Slovania

10,70%2,45%9680Poland

-13,21%2,97%11750Finland

4,50%3,01%11900Czech republic

-1,30%3,02%11940Benelux

-20,36%3,07%12125Sweden

-21,79%3,54%14000Spain

-19,92%3,75%14833Norway

-5,53%4,43%17500UK

-7,32%6,30%24900Italy

-8,37%10,78%42600Austria

45,83%10,93%43200Russia

-3,22%13,87%54833France

-8,76%14,13%55833Germany

-8,29%14,17%56000Switzerland

% 0708 Vs 0607Market share %Boardscountry

Sell-In 07/08 : BOOTS

1,12Ratio

-4,76%100,00%441551TOTAL

0,93%0,15%650Bulgara

-44,53%0,24%1050Slovakia

6,06%0,24%1050Kosovo

-31,79%0,25%1117Romania

-1,14%0,27%1183Greece

-6,94%0,29%1300Croatia


-55,91%0,43%1900Hungary

-27,27%0,52%2288Denmark

-26,14%0,70%3073Slovania

-5,56%2,44%10780Poland

-0,25%2,83%12476Czech republic

-11,97%3,11%13749Finland

-20,79%3,34%14750Sweden

-8,13%3,40%15015Benelux

-13,28%3,83%16900Spain

-4,53%4,38%19333Norway

-1,69%5,63%24840UK

-1,78%6,53%28833Italy

26,74%9,79%43240Russia

-5,28%10,45%46140Austria

-3,49%13,35%58933Switzerland

-5,50%13,66%60333Germany

-2,76%13,75%60717France

% 0708 Vs 0607Market share %Bootscountry

Sell-In 07/08 : BINDINGS

1,04Ratio

-5,02%100,00%412370TOTAL

130,47%0,18%738Bulgara

-7,58%0,25%1017Greece

0,82%0,33%1350Slovakia

-6,39%0,33%1367Romania

69,82%0,37%1525Kosovo

-29,55%0,40%1650Denmark

48,76%0,41%1675Croatia


-3,02%0,63%2600Hungary

21,64%0,70%2900Slovania

20,38%2,50%10320Poland

-12,90%2,90%11975Finland

-2,69%3,06%12600Czech republic

-7,37%3,11%12840Benelux

-14,32%3,20%13188Sweden

-17,86%3,47%14300Spain

-23,47%3,94%16267Norway

-10,95%4,49%18520UK

-10,22%6,28%25917Italy

-9,11%10,35%42680Austria

49,70%10,98%45260Russia

-7,38%13,74%56667France

-7,58%13,78%56833Germany

-13,44%13,96%57583switzerland

% 0708 Vs 0607Market share %Bindingscountry

Evolution of the Global European snowboard sales (Sell-In)

45

34

80

46

25

59

41

22

51

39

52

25

50

68

28

52

68

37

46

41

59

44

15

51

47

46

59

48

46

74

43

40

44

41

23

70

0

100000

200000

300000

400000

500000

600000

2004/2005 2005/2006 2006/2007 2007/2008

Boards

Boots

Bindings

Sales evolution over last 4 years

Global 07/08 turnover ESTIMATION based on retail prices

4%25%71%

8 931 820 €62 861 981 €177 845 517 €TOTAL

2 309 272 €15 948 042 €40 820 140 €bindings

2 472 686 €16 456 912 €44 992 405 €boots

4 149 863 €30 457 027 €92 032 972 €snowboards

KidsWomanMenIn €

249 639 317 €TOTAL

59 077 453 €bindings

63 922 003 €boots

126 639 861 €snowboards

European Market in Euros

26%

24%

50%

snowboards

boots

bindings

Main markets variation in EU season 0708 : units

-1006UK

-1789Finland

-1822France

-1968Italy

-3100Sweden

-3691Norway

-3901Spain

-3890Austria

-5064Switzerland

-5362Germany

BOARDS

-523Italy

-918Norway

-1329Benelux

-1724France

-1870Finland

-2258Switzerland

-2570Austria

-2587Spain

-3511Germany

-3872Sweden

BOOTS

- 1 773 Finland

- 2 204 Sweden

- 2 278 UK

- 2 950 Italy

- 3 110 Spain

- 4 278 Austria

- 4 513 France

- 4 663 Germany

- 4 988 Norway

- 8 945 Switzerland

BINDINGS

Main markets variation in EU season 0708 : Reasons

�Snowboard as a trend is flat or decreasing.

�Stock situation in shops.

�Increasing part of rental, product mix up, pro shop sales down, close out sales up.

�Lack of believe in wintersport.

�Overall purchasing power decrease.

�Small shops run out of money.

�Less money : weak economy in Europe.

�Elitisation of the sport.

�lack of innovation.

�Lack of mass media support.

�Cost of ski resort vacations (average is 2700 € per week for a 4 person’s family ).

�Bad Winter 06/07, global warming impact.

Main reasons for deacreases :

Main markets variation in EU season 0708 : units

BOARDS

BOOTS

BINDINGS

512Czech

republic

936Poland

13 577 Russia

362 Serbia

montenegro

9 123 Russia

1333Serbia

montenegro

1747Poland

15026Russia

Main markets variation in EU season 0708 : Reasons

�Economy is picking up, accumulated needs of the society in all areas.

�Backlog demand, developing economies.

�Strong outdoor market.

�Russia, Poland: increasing snowboard population, distribution investment.

�Growing economies in these countries.

�Snowboard is trendy in Russia.

�Freestyle become trendy.

�Renewing of stuff.

�Rental market.

Main reasons for increases :

�Snow Hall development in EU.

Global Trend :

Forecast Sell In 2008/2009 after order season

12%Apparels

10%Helmets

-5%Bindings

-6%Boots

-6%Boards

Global Decrease confirmed all over Europe.

Increase or stabilization (Russia) confirmed in Eastern countries.

Brand ranking Estimation , season 2007/08

Atomic/Volkl10

Elan9

Nidecker/Crazy

Creeks/Quechua8

Rome7

Head6

Rossignol5

Salomon4

K2/Ride3

Nitro2

Burton1

BOARDS


Atomic/Volkl10

Elan9

Nidecker/Crazy

Creeks/Quechua8

Rome7

Head6

Rossignol5

Salomon4

K2/Ride3

Nitro2

Burton1

Forum/Rome/SP10

Head9

Rossignol8

Quechua/Crazy

Creeks7

Drake6

Salomon5

nitro4

Flow3

K2/Ride2

Burton1

BOOTS


Atomic/Volkl10

Elan9

Nidecker/Crazy

Creeks/Quechua8

Rome7

Head6

Rossignol5

Salomon4

K2/Ride3

Nitro2

Burton1

Forum/Rome/SP10

Head9

Rossignol8

Quechua/Crazy

Creeks7

Drake6

Salomon5

nitro4

Flow3

K2/Ride2

Burton1

Flow10

329

Quechua/Crazy

Creeks8

Deeluxe7

Vans6

Head/Northwave5

DC shoes4

Nitro3

Salomon2

Burton1

BINDINGS


Scott3

Red2

Giro1

O'Neill6

Protest5

Billabong4

Quiksilver/

Roxy3

Volcom2

Burton1HELMETS

APPARELS

Brand ranking Estimation , season 2007/08 Vs 2006/07

Rossignol / Atomic / K2/

Deeluxe / Flow

Elan/ Atomic/ Nidecker

Volkl/ Flow/ Elan

10FlowForum/

Rome/SPAtomic/Volkl10

DCRossignolNidecker932HeadElan9

VansHeadAtomic8Quechua/

CrazyCreeks

RossignolNidecker/Crazy

Creeks/Quechua8

32NitroHead7DeeluxeQuechua/

CrazyCreeks

Rome7

NitroQuechua /

CrazycreeksQuechua/

crazycreeks6VansDrakeHead6

Quechua / Crazycreeks

DrakeK2/Ride5Head/North

waveSalomonRossignol5

NorthwaveSalomonSalomon4DC shoesNitroSalomon4

HeadK2 / RideRossignol3NitroFlowK2/Ride3

SalomonFlowNitro2SalomonK2/RideNitro2

BurtonBurtonBurton1BurtonBurtonBurton1

BootsBindingsBoards06/07BootsBindingsBoards07/08

Boards production site winter 0708 :

1. China 50%

2. Austria and East countries 35%

3. Spain (Rossignol)

4. Tunisia (Salomon)

tendencies for future:

AUSTRIA and CHINA

Boards production site

64%

36%

70%

30%

0%

20%

40%

60%

80%

100%

season 0708 season 0607

resorts

cities

73%

28%

0%

20%

40%

60%

80%

100%

120%

season 0708

resorts

cities

percentage of sales between ski resorts Vs cities (global market hardware) :

cities : 64 %

ski resorts : 36 %

percentage of sales between ski resorts Vs cities (global market apparel)

cities : 73 %

ski resorts : 28 %

Distribution segmentation : details

83%

17%

86%

14%

0%

20%

40%

60%

80%

100%

season 0708 season 0607

rental

sales

percentage rental Vs sales (global market hardware) :

sales : 83 %

rental : 17 %

Distribution segmentation : details

0%

36%

31%28% 20% 21%

29%

16%19%

0%

5%

10%

15%

20%

25%

30%

35%

40%

proshop sport shops

(independant)

sport chains big box flagship store

0708

0607

Distribution segmentation in %

0%0%Flagship store

19%21%Big box16%20%Sport chains

36%31%Sport shops

(independant)

29%28%Proshop06070708

Based on retail price informationBoard price segmentation season 0607

92122444%

X >500 €400€<X<500€300€<X<400€199€<X<300€X < 199 €Board price

Board price segmentation in % winter 0708

14%

23%

30%

21%

12%

X < 199 €

199€<X<300€

300€<X<400€

400€<X<500€

X >500 €

Board price segmentation season 0708

1221302314%


Boards price segmentation Men products

Based on retail price information

60,332,47,4%

X >150 €80 € < X < 150 €X < 80 €Boots price

Boots price segmentation season 0607

Boots price segmentation in % winter 0607

8%

33%

59%

X < 80 €

80 € < X < 150 €

X >150 €

Boots price segmentation Men Products


59338%

X >150 €80 € < X < 150 €X < 80 €Boots price

Based on retail price informationBindings price segmentation season 0607

39,444,915,7%

X >150 €80 € < X < 150 €X < 80 €Bindings prices

Bindings price segmentation in % winter 0607

10,0

36,054,0

X < 80 €

80 € < X < 150 €

X >150 €

Bindings price segmentation Men products

Bindings price segmentation season 00708

543610%


Based on retail price informationBoard price segmentation season 0708

213472316%


Boards price segmentation Women products


59338%

X >150 €80 € < X < 150 €X < 80 €Boots price

Bindings price segmentation season 00708

61390%


011364922%

othersFreeride

Backcountryfreestyle

Freeridefreestyle

freecarveAlpinRiding type

Men , Season 0607

Riding type Men and Women

Men , Season 0708

010384831%

othersFreeride


Freeridefreestyle


2,2933,653,80,90,5%

othersFreeride


Freeridefreestyle


Women , Season 0607

Women , Season 0708

08256710%

othersFreeride


Freeridefreestyle


Gender segmentation (sales)

Season 0607

70%

6%

24%Girls

Kids

Boys

Season 0708

68%

7%

25% Girls

Kids

Boys

market share men-women in wintersport in % (practice)

52 5064

49

48 5036

51

0

20

40

60

80

100

120

Alpin ski nordic ski snowboard other

women

men

Source: INSEE France

Wintersports global : market share men-women

REMINDER OF LAST YEAR PRESENTATION

1 3 25 3 6

2721

20

22

24

22

12

19

1216 20

45

3

69 16

12

18 14

58

13

7

0

20

40

60

80

100

120

Alpin ski Nordic ski Snowboard others

student

reprocessed

workmen

employees

intermediate profession

higher intellectual profession

entrepreneur

farmer

In % of Stay

Wintersport practice by social and economic category 2006/07

Source: INSEE France

Girls market:

�Growing again

�Styles ,designs and prices are always important

�Girls are freeriding much more

Kids market (<14 years old) :

�Freeski more cool for kids

�Industry needs to invest in this category as kids are the future of the sport and business�Kid boots prices have to be very low

�Growing segment but parents are still not willing to spend money on proper equipment

Gender segmentation : details

Primary industry concerns :

� Less demand. No hype anymore.

� Lack of snow in lower altitude regions.

� Conservative/ low risk attitude from the retailers.� Less and less investment in the evolution of the sport : No Innovation

� US influence getting bigger, less room for the Euro way

� People are getting more price sensitive due to declining economies.

� Inventory in shops/distributors.� Shy Consumer behaviour and trend to save money rather to spend on new gear.

� Free skiing gets more attention than before.

Negative market influencies Winter 0708

Negative market influencies Winter 0708

�Concentration of brands, loss of good mix in shops, fear of monoculture shops, rentability of

hardgoods compared to softgoods

�Snowboards can be bought everywhere.

�Pressure from the industry brings prices down and down.

�Fewer independent shops. Consolidation of the distribution channels

�Many retailers are in a bad financial state, as many of them have a lot money still tied up in inventory. (In the back room or on the sales floor..)

�Discount sales starting too early, too big (-20/-30%)

�Rental market number increase : competition with sales number.

�The big chains are going for price more than ever and contribute to a new type of generic

products redefining the basic quality of snowboard equipment.

�The core shop network has suffered more from the green 06 winter. Core shops are the lungs of

the sport and need support.

�Bad situation for snowboarding in the city shops

�Production numbers are too big.

�Drop in instore snowboard display.

Statement of the distribution concerns:

your overview on the global market in Europe

�Some brands just simply produce too much product, growing close-out and grey market business

�The importance for shops of the hardgoods business is declining compared to the apparel and outdoorbusiness.

�The number of participants is not increasing.

�A lot of the feedback insinuates that kids are moving more towards technology hobbies (myspace, computers in general, facebook, iphones, etc…) and taking them away from wintersports.

�The sell-out season starts later and later, with « end of season » sales that start at the beginning of the season(beginning of January). Dangerous tendency that needs to be changed quickly for the survival of the market. Shops are however starting to understand this and are slowly changing their way of buying and of selling.

�Rental is increasing and infrastructures will evolve together with the ski market.

�European market is still very contrasted and requires a very local approach (product and distribution)

�Internet sales influence should also hit the market pretty soon enabling the bigs to get bigger.

�Pressure on prices is higher and higher both on brands and shops.

�Our market will need a couple of season to digest the winter 0607. Retailers had lot of old stock whichdecreased the sell-in for 0708 and 0809 seasons.�The snowboard community needs to react now and to show its unity .�It is still more versatile freestyle oriented but will for sure evolve towards more “low tech” freestyle products.

�As snow is disappearing in most of the big cities, less people are attracted to go to wintersports.

�Sport is OK, economies are down !!!

Influences from other markets (freeski, outdoor…) :

your opinions summary

�Most of them are skiers who discovered a new style of skiing. Some of them, especially the

younger Freeskiers might have choosen a snowboard in previous years but now stay on a ski.

�Freeski is still growing but having so many Freeskiers does not mean that they are all converted

Snowboarders.

�Participants are switching between skiing and snowboarding according to snow condition.

�Freeski market is hyped up, but figures are not particularly great when you look at how many twin

tip/fat skis are really sold in the shops.

�More parks, more media awareness for freestyle in general.

�Still more positive influence from the Freeski market as kids go to the mountain and have fun

together.

�There is a good number of kids that switch from snowboarding to skiing.

�There is quite a lot of kids that start winter sports with Freeskiing.

SWOT of the market (Strength, weakness, opportunity, threats)

�Still part of the youth culture.

�There is still a lot of interest for snowboarding: The magazines do good sales, the homepages are

well visited, the big events enjoy enourmous numbers of spectators.

�New brands are still coming to the market , they are adding the cool factor to the sport.

�Local EU specificities lowering the risk factor.

�Euro “vision” of snowboarding expressed by media.

�Some of the very best riders in the world are european.

�Park equipment installation is up, More snowparks available.

�The whole Alps as playground.

�Solid consumer base.

�Cool Image.

� Markets with good distribution channels.� Culture and style around snowboarding.

Strength:


�Fragmentation of the market and hence a lack of power of reinvestment in marketing and promotion for the sport in general.

�Lack of new participants. No dedicated snowboard teachers because of legislation.

�Offer > demand , especially in a bad snow year.

�Product mix going down.

�Less Euro brands that have a worldwide position.

�Infrastructure / economy.

�Less Dealers are backing the Snowboard Category and see Snowboard only as an

accessory to sell softgoods. Conservative retail policies.

�Lack of coordination in between the sport's players.

�Elitist marketing. Lack of mass media support.

�Cost of wintersport for families. Decreasing purchase power

�Global warming effects.

�Not enough innovation for the same price level.

Weakness:


�Still need to improve binding technology to make snowboarding accessible.

�To develop a pan European snowboard instructor diploma.

�Markets for women/kids and lower priced boots.

�New way of buying from shops (fewer brands, less stock), to make the market more

sane.

�More pro shop support (loyalty programs, incentives..).

�Improvement of equipment in resort (parks, maintenance, creative playground,,) and

easy access to ski resort (travel agencies…).

�Education of dealers : Attract beginners and keep them on a board (vs 2 boards).

�Snow halls.�Growing potential in new EU countries.

�The World snowboard day to make the sport open to the masses,,,Need to work on mass media impact events to get more major brand money.

�New « easy » shapes, new technologies. Industry needs to be more open to joeconsumers (youth and middle age).

Opportunity:


�We are addressing a young target group which exactly loves the lifestyle and expression of our sport….they like to change.

�Big groups fighting on prices (especially rental).

�Freeski competition.

�Core Distribution survival.

�World wide economical crisis.

�The freestyle « ghetto » !

�Global warming and its presentation by medias.

�Kids are more attracted by digital wonderland.

�Skiing or snowboarding gets more and more expensive (vacation, lift pass, travel..).

Threat:

Contact informations :

Boardsports Consulting

Rémi FORSANS

Mobile phone :+33626914039

Email: [email protected]

KEEP RIDING ….AND STAY COOL !

European Market Survey 2007/2008remi.forsans.free.fr/European snowboard market survey 0708.pdfBad...

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