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Surf industry treads water in economic downturn
Sector's retail sales came in at $7.2 billion in '08, down slightly from '06.
By Kristen SchottPublished: July 15, 2009 10:21 AM
Orange County is home to a number of surf and skate lifestyle brands, and it seems that despite suffering losses due to the economic decline, the industry is holding its own, according to Aliso Viejo-based Surf Industry Manufacturers Association's Retail Distribution Study.
The third-party biannual report – conducted by the Leisure Trends Group and commissioned by SIMA, which represents 74 O.C. companies, as well as brands nationwide – found that retail sales came in at $7.2 billion in 2008. Though the number is down 3.5 percent compared to 2006 (sales were $7.48 billion), the sector has seen "substantial growth of 10 percent" over the last five years. SIMA also reports that softness was most noticeable in the fourth quarter of last year.
“While the surf-skate retail industry is not immune to the downward pressure on retail sales nationwide caused by the global recession, the resiliency of the surf-skate industry is very positive and promising,” says Doug Palladini, SIMA president and vice president of marketing for Vans.
He says what's key for growth as the economy rebounds is for the brands to maintain a close relationship with consumers.
Among the factors that support the industry: loyalty from surfers and skaters to the lifestyle and sport. The industry maintains a youthful demographic of surfers and skaters who "view the industry as a lifestyle, not a passing trend," SIMA says in a statement.
What's more, sports industries are some of the first to recover from negative global events and previous recessions, according to Leisure Trends Group.
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The third-party biannual report – conducted by the Leisure Trends Group and commissioned by SIMA, which represents 74 O.C. companies, as well as brands nationwide – found that retail sales came in at $7.2 billion in 2008. Though the number is down 3.5 percent compared to 2006 (sales were $7.48 billion), the sector has seen "substantial growth of 10 percent" over the last five years. SIMA also reports that softness was most noticeable in the fourth quarter of last year. “While the surf-skate retail industry is not immune to the downward pressure on retail sales nationwide caused by the global recession, the resiliency of the surf-skate industry is very positive and promising,” says Doug Palladini, SIMA president and vice president of marketing for Vans. He says what's key for growth as the economy rebounds is for the brands to maintain a close relationship with consumers. Among the factors that support the industry: loyalty from surfers and skaters to the lifestyle and sport. The industry maintains a youthful demographic of surfers and skaters who "view the industry as a lifestyle, not a passing trend," SIMA says in a statement. What's more, sports industries are some of the first to recover from negative global events and previous recessions, according to Leisure Trends Group. NEXT PAGE >> Related headlines OC METRO, July issue: 'Summertime, and the livin's easy' Hyundai's Car Allowance Rebate rollout spikes sales Orange County bankruptcies up 62 percent O.C. left off Fortune's roster of fastest-growing companies 'OC METRO Minute,' July 10: SBA loans up in second quarter |
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