Boardsports Forecast: Continued Growth Expected and International Expansion
Apparel sales for boardsports are taking off amid improving economic conditions, according to local manufacturers.
“Quiksilver has had significant momentum in the last several seasons, even in a difficult retail environment,” Dave Rosenberger, vice president and national sales manager for Quiksilver’s young men’s division, said.
The Huntington Beach, Calif.–based surf, skate and snowwear company saw #8232;5 percent growth with a second-quarter gross profit of $262 million. Net revenues in the Americas increased 5 percent in the second quarter to $210.7 million, according to a company statement.
Retail sales grew throughout 2011 and are continuing to demonstrate steady improvement, Rosenberger said.
In particular, women’s and direct-to-consumer sales both saw significant increases over the past year.
“Roxy has really turned on, starting with Spring 2011,” Rosenberger said. Additionally, Quiksilver’s newly launched Quiksilver Girls has been performing extremely well, and yearly increases for online sales have been very significant, he said.
Michelle Devine, girls’ product manager for Costa Mesa, Calif.–based Rip Curl USA, said retail sales over the past year exceeded the company’s expectations.
According to Devine, sales for women’s surf apparel have grown and web sales have continued to increase because of a larger number of wholesale accounts that represent the company online. Fiscal year 2011 is expected to show a double-digit increase in online retailers selling Rip Curl compared with fiscal year 2010, she said.
Overall, the boardsport market is expected to see an increase in consumer spending with sales forecasted to reach $20.5 billion by the year 2017, according to a recent report by Global Industry Analysts. The report profiled 165 companies, including Aloha Boardsports, Billabong International Limited (Australia), Body Glove International, Hurley International, Quiksilver and Rip Curl, among others.
Aside from a drastic dip during the recession in 2008 and 2009, boardsports have taken off in popularity in recent years, with more than 100 million participants across the globe, the study stated. Wide television coverage of extreme sports and growing consumer wealth during the pre-recession economy helped promote the industry, and consumer spending is expected to grow with a swell of new participants in snowboarding, surfing and skateboarding, according to the report.
The United States, Canada, France, United Kingdom, Norway, Switzerland, Australia and New Zealand have become known as the prime boardsport destinations, with key industry growth expected in Asian countries and South Africa, the report stated.
“As the economy improves globally, we will be growing as well,” Quiksilver’s Rosenberger said. “We are taking a much more offensive approach right now in regards to investing in infrastructure and marketing. We plan to continue to take market share and grow several key divisions and product categories.”
Rip Curl—which has retail stores in Australia, Asia, Europe, New Zealand, and North and South America—also stated interest in international expansion for retail and manufacturing as part of the company’s future plans.
“Globalization is key,” Devine said.—Deidre Crawford
