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Interesting article by Tabor, owner of Eastern Boarder.
http://business.transworld.net/2009/02/27/industry-insiderfriday-free-for-all-are-snowboard-shops-doomed/
http://business.transworld.net/2009/02/27/industry-insiderfriday-free-for-all-are-snowboard-shops-doomed/
hoon, i've been reading articles like these and trying to gain more insight into the industry as to where the changes, challenges and problems are. i agree/disagree with many of the opinions posted in response to that article - although my industry knowledge is minimal and growing with time.
crazy to think that there is little loyalty from the manufacturers to their suppliers. the business model appears to be broken, if that is the case. and the internet/web/ecommerce is only a fact of life. technology has dramatically forced change to almost every industry across the world - finance, telecom, airline, real estate you name it. and at the end of it, they've all adapted.
Snow sports will also need to adapt. The ones that kept up with the times are Sierra Snowboard, EvoGear, REI, etc. that have either transitioned to or gone with a web model.
Just a few quick thoughts.
crazy to think that there is little loyalty from the manufacturers to their suppliers. the business model appears to be broken, if that is the case. and the internet/web/ecommerce is only a fact of life. technology has dramatically forced change to almost every industry across the world - finance, telecom, airline, real estate you name it. and at the end of it, they've all adapted.
Snow sports will also need to adapt. The ones that kept up with the times are Sierra Snowboard, EvoGear, REI, etc. that have either transitioned to or gone with a web model.
Just a few quick thoughts.
achang, it's not that the business model is broken, it's just that manufacturers don't know how to control their distribution and are over saturating the market with too much product, especially on the internet. they're trying to front load retailers with too much product then wonder why it's all over the place marked down to nothing. destroying the businesses that aren't discounting to those same levels, which are usually brick and mortar stores. killing the long term longevity for actual shops who have been supporting these companies since day one, and allowing online dealers to make a quick buck and contribute to making a hands on thing like buying a snowboard and learning about snowboarding, very disconnected.
it's understandable that consumers will always shop online. especially for those who don't have shops near them, but if these manufacturers keep on not working with their dealers and don't contribute to trying to come together and build long term relationships that work for both the retailer and the manufacturer...then we're all in trouble. could you imagine a world with little to no snowboard shops, because the online stores offered such better deals that consumers started shopping more and more online and less in stores. you know what that results in? your local shop going out of business. i'm speaking from a very general standpoint, but this could very well become a reality if things don't change.
anyway, that's my rant. just my thoughts on the matter.
hoon, props on posting this link, i read that article pretty close to after it was posted and found it to be super on point. Tabor is pointing out what everyone in the retail side of this industry should be thinking, but most are turning their back too. pretending that these issues aren't real, and not taking the necessary steps to try and correct things now, and in a vigilant manner. a lot of this responsibility is going to come down onto how the manufacturers are prepared to handle these issues that they have helped to create.
it's understandable that consumers will always shop online. especially for those who don't have shops near them, but if these manufacturers keep on not working with their dealers and don't contribute to trying to come together and build long term relationships that work for both the retailer and the manufacturer...then we're all in trouble. could you imagine a world with little to no snowboard shops, because the online stores offered such better deals that consumers started shopping more and more online and less in stores. you know what that results in? your local shop going out of business. i'm speaking from a very general standpoint, but this could very well become a reality if things don't change.
anyway, that's my rant. just my thoughts on the matter.
hoon, props on posting this link, i read that article pretty close to after it was posted and found it to be super on point. Tabor is pointing out what everyone in the retail side of this industry should be thinking, but most are turning their back too. pretending that these issues aren't real, and not taking the necessary steps to try and correct things now, and in a vigilant manner. a lot of this responsibility is going to come down onto how the manufacturers are prepared to handle these issues that they have helped to create.
http://www.angrysnowboarder.com/2008/10/economy-and-your-local-snowboard-shop.html
http://www.angrysnowboarder.com/2008/10/economy-and-your-local-snowboard-shop_31.html
I wrote about this back in October and having worked for the largest shop in Summit County I can tell you the end is coming. Its going to be rental shops and big online stores.
http://www.angrysnowboarder.com/2008/10/economy-and-your-local-snowboard-shop_31.html
I wrote about this back in October and having worked for the largest shop in Summit County I can tell you the end is coming. Its going to be rental shops and big online stores.
thanks mujer.... i wouldn't go so far as to say that shops are going to be gone as we know them, but there definitely needs to be a large scale shift in thinking. stores like EB i think will weather the storm as they offer strong customer service, large-scale ground support in new england, are established and also have skate / BMX (two other markets that already have gone through serious growing pains, contractions, etc.) under their belt.
i think the shops that are going to get slammed are anyone who is snow only and not located within 15 minutes to a major hill. now you have to be diversified and offer product/categories yearround, else you are screwed.
i keep going back to the ski store/ski industry/golf model. they've weathered so many recessions and talk about a sport(s) that is more expensive than snowboarding!
step 1: make it ultra exclusive and based on the latest and greatest technology (real or madeup)
step 2: make sure said technology changes every year and is a requirement for performance (and fun)
step 3: create an exclusive (relatively) system where you need a shop to install your equipment (bindings to planks)
step 4: convince consumers that you need said technology and because of the cost, they'd be too scared to install it themselves (reinforce steps 2 and 3)
step 5: steal any influence from other sports and claim it as your own (repeating step 2 and 4)
step 6: repeat
snowboarding is at a cross roads (Happens every year). we can lament that broforms, online stores, ODATs (one deal at a time) are killing snowboarding, but really it's time for another contraction after large scale expansion. many other industries (skiing comes to mind or bike or surf) have weathered this similar storm and continue to move forward in the face of broforms, online and ODATs, etc.
it's just going to require a bit more work and a true understanding of what you're (shop, manufacturer, website, etc.) value add is to the customer and community.
btw - sierra has a brick and mortar (started that way) in sacramento
i think the shops that are going to get slammed are anyone who is snow only and not located within 15 minutes to a major hill. now you have to be diversified and offer product/categories yearround, else you are screwed.
i keep going back to the ski store/ski industry/golf model. they've weathered so many recessions and talk about a sport(s) that is more expensive than snowboarding!
step 1: make it ultra exclusive and based on the latest and greatest technology (real or madeup)
step 2: make sure said technology changes every year and is a requirement for performance (and fun)
step 3: create an exclusive (relatively) system where you need a shop to install your equipment (bindings to planks)
step 4: convince consumers that you need said technology and because of the cost, they'd be too scared to install it themselves (reinforce steps 2 and 3)
step 5: steal any influence from other sports and claim it as your own (repeating step 2 and 4)
step 6: repeat
snowboarding is at a cross roads (Happens every year). we can lament that broforms, online stores, ODATs (one deal at a time) are killing snowboarding, but really it's time for another contraction after large scale expansion. many other industries (skiing comes to mind or bike or surf) have weathered this similar storm and continue to move forward in the face of broforms, online and ODATs, etc.
it's just going to require a bit more work and a true understanding of what you're (shop, manufacturer, website, etc.) value add is to the customer and community.
btw - sierra has a brick and mortar (started that way) in sacramento
I would love to toss my opinion out there..... but being a rep, an ex-shop owner and a guy that came from a big player in the snow industry..... I'll just leave this alone.
at the end of the day the consumer needs to support locally no matter what.
I personally will never shop at Walmart or any Box-Store.... I'd spend a few extra bucks and keep my money locally. But thats just me......
at the end of the day the consumer needs to support locally no matter what.
I personally will never shop at Walmart or any Box-Store.... I'd spend a few extra bucks and keep my money locally. But thats just me......
Princeton died because IMO their customer service sucked.
Pulls out soap box. Stands on it. Clears throat. I believe that most shops need to do a better job on the things that they can control: presentation, service and community. The product will be the same as online or elsewhere but you can't replicate those three items online very easily. To Sierra's credit they've done a good job creating a community. Backcountry has a clean presentation and solid brand but I don't see too many people rocking a BC.com diecut. (yes I am on the Sierra boards)
The local shops (within 45 minutes) around me do an absolutely HORRIBLE time with most aspects of the above three. I've never heard of a local event and the service is deplorable. Out of loyalty I still head up to or call EB and Darkside in VT, even though it's usually only for something small.
And why aren't more shops using facespace, Twitter, blogs or even e-mail? One of the surf shops nearby does a great job of keeping everyone connected which surprise surprise leads to quality revenue.
Cough, cough. Is this thing on?
Pulls out soap box. Stands on it. Clears throat. I believe that most shops need to do a better job on the things that they can control: presentation, service and community. The product will be the same as online or elsewhere but you can't replicate those three items online very easily. To Sierra's credit they've done a good job creating a community. Backcountry has a clean presentation and solid brand but I don't see too many people rocking a BC.com diecut. (yes I am on the Sierra boards)
The local shops (within 45 minutes) around me do an absolutely HORRIBLE time with most aspects of the above three. I've never heard of a local event and the service is deplorable. Out of loyalty I still head up to or call EB and Darkside in VT, even though it's usually only for something small.
And why aren't more shops using facespace, Twitter, blogs or even e-mail? One of the surf shops nearby does a great job of keeping everyone connected which surprise surprise leads to quality revenue.
Cough, cough. Is this thing on?
90% of shops are doomed. They're just straight up fucked in the ass.
Prepare yourself for rental/repair shops, specialty boot fitting shops like sorefoot, and novelty stores to be the only form of local shops at mountains. The internet is destroying it and putting people like me out of business.
Prepare yourself for rental/repair shops, specialty boot fitting shops like sorefoot, and novelty stores to be the only form of local shops at mountains. The internet is destroying it and putting people like me out of business.
hoon, many interesting points in both your replies. I agree, I don't think shops will be gone as we know them. But there are definitely a lot out there that are disappearing. I also think shops like EB will be able to weather the storm, but Tabor is right on with all the points he makes talking about retailers and manufacturers partnering up, for both the short and the long term. It needs to be a two way street that both can rely on each other. And I see his points on all those aspects. Especially about maintaining profitability. If shops aren't profitable, what's the point of them even staying in business? There comes a point when you just have to do what the right thing is and that's either man up and do what needs to be done for the sake of business, or throw in the towel. Hopefully retailers and manufacturers will find a way to be able to reach some middle ground. But that takes a few things, first off understanding what the issues are, and second, taking the necessary steps to do the right thing...while before hand determining what the right thing is. There will never be one right answer that will make everyone happy. So I guess some companies out there have some thinking to do in regards to what their idea of the right thing is. And if that lines up with what their retail partners also feel is the right thing for them then that will be a successful way to climb out of this whole that has been dug.
Flour City, enlighten us with your opinion. That's what these sites are for...
hoon, on your second point. I agree, the best service is second to none. I never shopped at Princeton, so I cannot speak for how their service was. I do hear things through the grapevine, especially being a fellow right coaster, but unless I have experienced it myself I cannot give my own true perspective. Service is key, and building a customer base that will always support you through thick and thin is also huge. But usually if the service is there, the customer base will follow. As long as you stay competitive and continue to stay on the forefront of what your customers want. The hard part I think for a lot of these retailers, is once their business starts to slip, their service follows, and their product selection decreases soon after that if not before.
angrysb, I would actually have to disagree with you on your point. I will say that most shops will have some things to worry about, but I don't think 90%. I actually wouldn't even put a percentage on it. I would say the shops that are doomed are the ones that cannot adapt in the ways they need to. I think the next 6 months to a year could be very interesting for retailers and manufacturers. A lot of back and forth. A lot of this and that. A lot of fine tuning. Restructuring if you may. Rebuilding. Rethinking. Things are changing. And not like the used to change back the day in a course of 2-5years. Now what used to happen very slowly and build over time, is happening quick and becoming something completely different or progressing into something different within a matter of months. The snowboard industry in my opinion is in one of those huge changes right now. And it should be really interesting to see where shops and manufacturers are in the next few years. Who comes out of this and what changes they needed to make to stay on top of everything. One of the most interesting things about a time period like this is that with everything going on the world, times like this weed out those that are not able to adapt. And those that can, come out even stronger than they were before. And as a result of becoming or staying successful and on top, will learn some valuable lessons throughout the entire process. I do agree that the internet is contribute to some of this destruction. But at the same time, it's not going anywhere. So I guess there's a couple choices, stay and fight, or give up and surrender. I think it's probably going to take a little bit of both to be able to truly progress to the next level. It's all about finding the balance.
Flour City, enlighten us with your opinion. That's what these sites are for...
hoon, on your second point. I agree, the best service is second to none. I never shopped at Princeton, so I cannot speak for how their service was. I do hear things through the grapevine, especially being a fellow right coaster, but unless I have experienced it myself I cannot give my own true perspective. Service is key, and building a customer base that will always support you through thick and thin is also huge. But usually if the service is there, the customer base will follow. As long as you stay competitive and continue to stay on the forefront of what your customers want. The hard part I think for a lot of these retailers, is once their business starts to slip, their service follows, and their product selection decreases soon after that if not before.
angrysb, I would actually have to disagree with you on your point. I will say that most shops will have some things to worry about, but I don't think 90%. I actually wouldn't even put a percentage on it. I would say the shops that are doomed are the ones that cannot adapt in the ways they need to. I think the next 6 months to a year could be very interesting for retailers and manufacturers. A lot of back and forth. A lot of this and that. A lot of fine tuning. Restructuring if you may. Rebuilding. Rethinking. Things are changing. And not like the used to change back the day in a course of 2-5years. Now what used to happen very slowly and build over time, is happening quick and becoming something completely different or progressing into something different within a matter of months. The snowboard industry in my opinion is in one of those huge changes right now. And it should be really interesting to see where shops and manufacturers are in the next few years. Who comes out of this and what changes they needed to make to stay on top of everything. One of the most interesting things about a time period like this is that with everything going on the world, times like this weed out those that are not able to adapt. And those that can, come out even stronger than they were before. And as a result of becoming or staying successful and on top, will learn some valuable lessons throughout the entire process. I do agree that the internet is contribute to some of this destruction. But at the same time, it's not going anywhere. So I guess there's a couple choices, stay and fight, or give up and surrender. I think it's probably going to take a little bit of both to be able to truly progress to the next level. It's all about finding the balance.
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