Buyers Dodge Storms and a Tough Economy at Surf Expo

The effects of Hurricane Ike and a slowing economy put a damper on buyer traffic during the Sept. 12–14 run of the Surf Expo trade show, held at the Orange County Convention Center in Orlando, Fla. While many said traffic was noticeably off, several reps and buyers remained enthusiastic about the industry in general and were upbeat about the new Spring offerings.

The show caters to the action-sports industry as well as resorts and lifestyle retailers offering everything from surfboards and skateboards to swimwear and sportswear.

California companies once again made a strong showing among the 2,400 booths on hand. Many were represented by their East Coast sales teams, having just come off the recent Action Sports Retailer Trade Expo show in San Diego.

Most noticeably absent from the show was the contingent of Gulf Coast stores, whose owners were sidelined by the Category II Hurricane Ike, which swallowed up Texas seaside towns such as Surfside Beach, where Bingo Boards surf shop owner Bingo Cosby was forced to evacuate due to rising water.

Others were not as dramatically affected but were forced to deal with flight cancellations in major hubs such as Houston. California rep Mike Henderson of Elwood Clothing said the hotel he stayed at experienced a 40 percent cancellation rate as a result.

Surf Expo spokesperson Dan Darby said retailer attendance was down 9 percent from the September 2007 show, which was the largest September show on record. He said stores were economizing their show travel due to the tough economy.

“The reduction can be attributed to fewer buyers attending per store. Stores brought an average of three buyers each, which is one buyer less than usual, and there were significantly fewer buyers attending from the Texas and Louisiana coasts due to Hurricane Ike,” he said.

Close to 900 new stores pre-registered for the show, which gives a strong indication for future growth, Darby added.

“We believe, therefore, that we will find, while the number of retailers in the aisles was slightly lower, our overall buying units were on par or higher than last year’s event,” he said.

Many buyers in attendance were playing percentages and sticking with tried-and-true brands.

Don Niemann, buyer for specialty chain Ron Jon, based in Cocoa Beach, Fla., said the company was sticking with vendors that deliver value, good prices and fashion. On-time deliveries were just as important, he added.

“You have to accentuate the positive right now. There’s a lot of uncertainty in the marketplace,” he said.

Ron Jon isn’t necessarily just picking the big brands. “There’s some innovation taking place, and you have to look at that, too,” he said.

California vendors reported fair business with existing accounts but slowness with new business.

“It started off slow, but it came around,” said Mike Martin, vice president of sales and marketing for Irvine, Calif.–based Ezekiel Clothing.

The company showed woven shirts, Tshirts, shorts, dresses, skirts and fleece. One thing Martin noticed in the current economic climate is that stores are selling more T-shirts. He attributed that to their lower price points and novelty value.

“Stores went from about 30 percent of their businesses to about 45 percent to 50 percent,” he estimated.

“With the Internet, shoppers are more savvy,” he said. “You have to take that into consideration. Girls are combining Cavalli with clothes from Target now.”

Monica Wise, principal of L*Space swimwear, based in Lake Forest, Calif., said she did business with her pre-booked accounts but picked up very few new accounts.

“The show was slower than normal. I’m sure the hurricane had a lot to do with it. The aisles weren’t as busy.”

The company showed lots of textured fabrics, fringed maillots, chain-link racerbacks and a new color palette freshened up with lots of jewel tones.

Tom Kabbash of Encinitas, Calif.–based eyewear brand Pleasure Ground said the show was more about networking than selling for his year-old company.

“The foot traffic was pretty darn slow,” he said. “We did OK. We met some potential new reps and new accounts. We made the most of it.”

The company markets sunglasses for the “surfer that graduated,” Kabbash said. All retail price points are at $95.

Lira Clothing exhibited for the first time, hoping to grow its brand on the East Coast. Owner Todd Kellogg said the company has thus far been perceived strongly there. “We growing into a full collection [from graphic T-shirts] and can cross over from a straight urban boutique to a boutique like The Closet, and buyers like that.”

Surfside, Calif.–based Katin, a boardshorts brand that has been around since the 1950s, was also looking to balance its distribution with more East Coast representation. The company launched a campaign about 2frac12; years ago to branch out from its retail roots and has made steady progress, opening about 500 doors, reported rep Mac Beu.

Katin was highlighting a throwback line of boardshorts at the show.

“There was a good vibe in our booth,” he said. “There was a pretty good reception to our brand. The news is that we’re back in a big way.”

In the Raj Manufacturing booth, buyers were picking up swimsuits by new licensed brand Ella Moss and Luxe, a new in-house line for the Tustin, Calif., company. Tie-dyes, ombreacute; designs and anything with some glam sold well, reported rep Marcey Bender-Trinka. “Resorts were trying to eke out as much business as possible before the winter,” she said. Bender- Trinka characterized retailers as taking a conservative approach to buying.

“Price isn’t necessarily a factor,” she said. “One of our most expensive pieces, a Guess suit, is selling like gangbusters. If the look is correct, it won’t matter. The January show should be extremely strong as buyers will have to buy product for next summer.”

Among the growing trends seen at the show were stand-up paddleboarding, or SUP, as several SUP vendors were on hand. Also up was the presence of offshore surfboard and equipment manufacturers. And the vendor count appeared to be down as the industry continues to consolidate. Powerhouses such as Billabong have been on an acquisition binge, having snapped up Honolua Surf Co., DaKine and Quiet Flight Surfboards in recent months.