ASBMAG#80 by ASBMAG

Australian Surf Business Magazine November

2017

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FEATURE ARTICLES: Better Known – The Evolving Future of Outerknown/ BRANDSCOPE – Beyond Thunderdome Buyers' Guide – Eyewear – Wetsuits – Electronics.

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CONTENTS

ISSUE #80 NOVEMBER

inside this issue

contents 10 20

Industry News

Relaunch, reset and embracing new ways of doing the same thing. Last issue we spoke about the constrictive pace of change and the many challenges that it presents.

Feature Article

Rather than succumb to the pressure of change, we’ve embraced it, and in the last two months, we’ve worked around the clock to relaunch our website ASBMAG.com

BETTER KNOWN. ASB TAKES A GLIMPSE INTO THE EVOLVING FUTURE OF OUTERKNOWN.

Media Meter

Fresh

Buyers’ Guide

Feature Article

ActionWatch OZ Insights

The State of Independent Retail

Faces in the Lineup

I’d like to welcome Lincoln Eather a digital marketing guru, founder of Empire Ave and a ripping surfer in his own right. We welcome Dave Johnson formerly with Call Dave recruitment agency and most recently Corporate Lead Engagement with Job Adder digital recruitment platform. In this issue, we investigate ‘The State Of Independent Retail - by the numbers’. Drawing on ASBMAG’s database over a ten-year period from 2007 to 2017 we examine the number of store closures and their locations for both independent surf shops and multi-chain stores. Those store closure numbers are confronting and a reminder that the only constant is change.

EYEWEAR

The catalyst for the story came when Rip Curl acquired Victorian retail icon Mordy Surf last month. Group Marketing Advertising Chairman Neil Ridgway observed that it's important to respect the tradition of core surf shops by keeping the Mordy's signage on the front of the store alongside Rip Curl as a part of retaining that legacy. There’s something very refreshing and respectful in that gesture and so in tribute to Mordy’s we’ve placed their sign on our cover.

WINTER WETSUITS

ELECTRONICS

And while the Mordy legacy continues under the Rip Curl banner, there have been approximately 210 independent surf shops close forever since 2010 as well as 60 chain store closures. Each of those closures tells an emotional story, but we wanted to keep it scientific in these pages, diving deep in ASBMAG’s data to determine what external influences might be at play, or whether – more confronting - those stores were ever really ‘fit for business’.

BRANDSCOPE. BEYOND THUNDERDOME.

As always, we wanted you, our readers to draw your own conclusions - based purely on the facts and numbers in the comfort of your own store, in your own time, either in print…or now online. Read part one of ‘The State of Independent Retail - by the numbers’ here or sign up for our Professional Edition and full coverage at the all-new ASBMAG.COM Thanks for your support past, present and future.

Keith Curtain Publisher

PUBLISHER ASB is published six times a year by Australian Surf Business Pty Ltd ABN 38 109 415 983

AUSTRALIAN SURF BUSINESS PTY LTD PO Box 747 Torquay VIC 3228 Australia Phone/fax 03 5568 3488. Mobile 0417 747 855. Email info@australiansurf.biz

CREATIVE

If you have any comments to make about ASB, or any aspect of the surfing industry, drop us a line: editorial@australiansurf.biz

fluid.com.au studio@fluid.com.au

ACCOUNTING & FINANCE Crowe Horwath www.crowehorwath.net/au/ ACTING EDITOR editorial@australiansurf.biz ADVERTISING Keith Curtain 0417 747 855 sales@australiansurf.biz

20 Better Known ASB takes a glimpse into the evolving future of Outerknown.

Australian Surf Business (ASB) magazine objectively reports on all aspects of the Australasian surf market. ASB is committed to editorial excellence and provides the only one-stop forum for the entire Australasian surf industry. Views expressed in ASB do not necessarily represent the opinions of the editors or publishers. No responsibility is accepted by ASB for the accuracy of advertisements or information within the publication.

ABOUT THE ENVIRONMENT Australasian Surf Business Magazine is printed using ECO-CLEAN print processes. We use vegetable based inks and recyclable metal plates during the printing process. ASB is printed on FSC® accredited stock.

QLD & NZ GREG SCOTT +61 (0) 407 577 997 sales@australiansurf.biz

Our printer is accredited for ISO9001, ISO14001, AS/NZS 4801 and is an FSC® certified printer ensuring that we uphold the highest international standards for the prevention of pollution and promotion of a clean environment. No animals were harmed during the production of ASB.

FASHION CO-ORDINATOR Fiona Hampson fashion@australiansurf.biz

SOCIAL MEDIA

SUB EDITOR Jock Serong

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INDUSTRY NEWS

brand news ELECTRIC AUS/NZ TO SIDELIFE DISTRIBUTION. Electric has entered into a distribution agreement with Sidelife Pty Ltd to better serve the Australia and New Zealand markets. Sidelife is a wholesale and retail company based in Byron Bay. Established in Melbourne in 2003, Sidelife brands include Herschel Supply, Mr. Simple, Simple Watch Co and Electric. “This move will provide Electric an opportunity to partner with a strong local business to improve our sales strategies and service levels to your retailers,” said Electric California President and COO Steve Hurst. “The change takes place effective November 1st and the new sales manager will be an old friend, (former Electric GM) Mr. Peter Dodd.” The announcement follows the news former Electric AU/NZ Manager Damion Fuller had left the company to pursue other interests. See full brand interview with Electric CEO and Sidelife Founder and CEO David Fraser at www.asbmag.com

RIP CURL ENGAGE INDEPENDENT ADVISER GRESHAM. Michael Daly, CEO Rip Curl Group responded to the persistent rumours that the company was for sale. These rumors have dogged the company since Founder Brian Singer described the public market as a cesspit in 2013 when reports surfaced the company had engaged US advisory firm Merrill Lynch to field several ‘unsolicited’ inquiries from Private Equity. Daly told ASB that Rip Curl’s current position on the sale of the company was that they have no position. “Our focus as a team is to just ensure the Rip Curl brand and company remains strong. We think we are doing a fair job of this. We have no plans to undertake a formal sale process anytime soon. “Our job as management is to run Rip Curl and give the shareholders options. It's fair to say that Brian and Claw as the majority shareholders have plenty of options available to them. You'll need to ask Brian and Claw what options they may or may not pursue in the future. What I can say is that they are continuing to live the Search, travelling the world on surf trips and skiing in the mountains. They are certainly enjoying life after doing all the hard work and are now enjoying the spoils. I am not sure they spend a whole lot of time thinking too much about exit strategies anytime soon.” The Australian Financial Review’s report ‘Street Talk’ recently claimed that Melbourne (VIC) based independent adviser Gresham and US-based boutique RW Baird had been engaged to run a new sale process for Rip Curl. Four years ago, Rip Curl disengaged talks with Bank of America Merrill Lynch when offers failed to reach founder Brian Singer's and Doug Warbrick's expectations, which were believed to be around $470 million, representing a multiple of 10 times forecast 2013 earnings. According to AFR’s dig into privately-held Rip Curl's ASIC filing, earnings before interest, tax, depreciation and amortisation fell 30 per cent to $35.5 million in 2016 despite a 7 per cent rise in sales to $476.5 million. This followed flat earnings in 2015 and a 35 per cent increase in EBITDA in 2014. Rip Curl have been contacted to respond to the AFR claims and we’ll update this story as it unfolds.

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PATAGONIA LAUNCHES PATAGONIA PROVISIONS Dane O'Shanassy, Country Director for Australia and NZ at Patagonia, announced the company’s entry into the food market in Australia with its ‘Patagonia Provisions’ brand. The debut line, available now on the company’s website, includes wild salmon, organic soups, trail mix bars and cereals. To provide a deeper understanding around Patagonia’s entry into the food market here, Patagonia will debut ‘Unbroken Ground’, a compelling Patagonia Provisions film directed by Chris Malloy, that explains the critical role food will play in the next frontier of their efforts to solve the environmental crisis. This film explores four areas of agriculture that aim to change our relationship to the land and oceans. Most of our food is produced using methods that reduce biodiversity, decimate soil and contribute to climate change. Patagonia believe our food can and should be a part of the solution to the environmental crisis – grown, harvested and produced in ways that restore our land, water and wildlife. The film tells the story of four groups that are pioneers in the fields of regenerative agriculture, regenerative grazing, diversified crop development and restorative fishing. Announcing the new entry, Dane O'Shanassy said “I am stoked to share that this week in Australia, we have officially launched Patagonia Provisions, Inc. Why would a clothing company decide to get into the food business?” According to the company’s Founder Yvon Chouinard, “It only makes sense that we’d want to share some of our favorite food with our customers. But that’s just the beginning; we also believe there is great opportunity— and an urgent need—for positive change in the food industry. With Patagonia Provisions, our goals are the same as with everything we do: we aim to make the best product, cause no unnecessary harm, and perhaps most important, inspire solutions to the environmental crises. “And nowhere is the crisis more pressing than in the food industry. Patagonia Provisions is about finding solutions to repair the chain.” said Yvon Chouinard. Patagonia premiered Unbroken Ground screenings and Provisions products tastings around the country last month. See photos in Faces in The Lineup.

DARE JENNINGS SELLS STAKE IN DEUS According to reports in the Australian Financial Review, Dare Jennings has sold his stake in Deus Ex Machina and whilst the investment may be private, there is also a professional element at play. Federico Minoli – former chief executive of Swiss luxury fashion house Bally and former chief and chairman of Ducati, a man who helped shape the fortunes of companies from Benetton to Woolrich – quietly replaced Jennings on the ASIC register as Deus Ex Machina's new CEO. Minoli has been part of the Deus for a while. He and his cousin, Filippo Bassoli, were the ones who took Deus into Milan in 2013. According to AFR, Minoli has organised what he calls a ‘group of friends, primarily around my family’, to invest their own money into buying a majority interest in Deus so that the brand can change gears up a level. Deus now includes Bassoli, who's now chief of Deus Milan, and Santiago Fallonier, a Milanese restaurateur. There's son Ottavio Missoni, Masaki Kato of Japan's Jack of all Trades, a fashion distributor that's taken more than 30 labels from Australia, France, Germany and the UK into Japan. And there's Antonio Belloni, group managing

director of the world's largest luxury company, LVMH (and also Minoli's cousin). Together they've bought 60 per cent of Deus, pouring in $11 million plus more for working capital. All are passionate about motorbikes and Deus Milan. "We are all from Gallarate, which is a small town outside Milano," Minoli told AFR. "We have known each other forever; the Missonis were our next-door neighbors – back before they became famous – in the '50s and '60s." While the consortium's commitment is modest, Jennings says there's $5 million in working capital for immediate growth plans. Jennings co-founded Mambo in 1984 and sold to Gazal Corporation in 2000 for $25 million. And Deus is very much the son of Mambo. The creative genius behind Deus, Carby Tuckwell, describes himself as a "child of Mambo". Tuckwell, 45, started out making Mambo knock-offs in the bucolic NSW surf town of Lennox Head. Source: AFR

VONZIPPER ADDS FORMER SPY EXEC MICHAEL MARCKX AS GLOBAL GM. Creative branding executive Michael Marckx has joined VonZipper (VZ), as Global General Manager - his appointment underscoring a recommitment to the brand’s style and performance projected through the prism of its irreverent legacy. After decades of brand building and turnarounds, Marckx will lend his unique talents in product development, storytelling, strategy, culture and experience curation to VZ and parent company, Billabong Group. “I feel very enthusiastic and lucky to be joining GT and the rad VZ team,” said Marckx. “It’s easy to see that the eyewear category is ripe for some freshness and a bit of unfettered happiness. VZ’s heritage of individualism and irreverent brand positioning provides us an opportunity to shock and awe the market in unique and inspiring ways.” VZ founder Greg “GT” Tomlinson said: “Michael brings a unique combination of left- and right-brained freakiness that is the kind of disciplined yet spontaneous energy the VZ brand will thrives with. Not only are we going to expand the VZ product offering, our brand is going to stand out in fun ways just as it did originally, as we have done since rocking the category in 2000. “Michael’s industry peers and coworkers have described him as one of the best strategic and creative thinkers they’ve worked with. He has been responsible for some incredible marketing campaigns, products and world-class events. He not only has a strong understanding of youth sub-culture, but also advertising, branding and marketing, factors that VZ will continue to focus on to set itself apart in the sector. “His appointment is a recommitment to the brand’s celebration of the individual and a healthy disrespect for blending in, as we look to stand out in the crowd, create new excitement and generally make people smile again,” said GT. Billabong Group CEO Neil Fiske added: “We’re thrilled to have Michael joining the VZ team and the group more broadly. He’s a tremendous creative talent and brand builder. It’s not easy to find that kind of creativity combined with such rich experience and success in our industry. He’ll be a game changer. One thing is for sure—it’s going to be fun to watch this next chapter of the VonZipper story unfold.”

SPEAQUA SOUND CO TO MULTI SPORT IMPORTS Multi-Sport Imports (MSI) announced their Australian distributorship for Speaqua Sound Co and their range of 100% waterproof speakers. Since 2006, MSI has focused on sourcing high quality brands in the outdoor adventure market. MSI have an extensive background in outdoor and adventure pursuits including whitewater rafting and rock climbing as well as surf lifesaving, marathon paddling and outrigger canoe races. “It’s this love of the water and the Australian coastal lifestyle that made it an easy decision and perfect fit to become the Australian Distributor for the Speaqua brand and The Barnacle speakers,” said a spokesperson for MSI. For more information or to become a stockist contact Greg or Debbie at Speaqua Australia, email: speaqua@multisportimports.com.

BOARDRIDERS INC. RESPOND TO REPORTS OF ROXY “FOUNDER'S” LIFE IN A HAREM Last month, Nine’s 60 Minutes aired a report that a former model founded the Roxy brand and made other scandalous claims. In a tell-all book ‘The Currency of Love: A Courageous Journey to Finding the Love Within’ author Jill Dodd alleges that in 1989 she “founded the surfing and snowboarding inspired clothing line Roxy and became a successful business owner.” Responding to Dodd’s claims that she founded the Roxy brand, a spokesperson for Boardriders Inc. head office said “Bob McKnight and other executives started the Roxy concept in 1989. After that initial development, Jill Dodd worked for the Company as a designer for Roxy, focusing on swimwear.” Dodd revealed to Channel Nine’s Peter Stefanovic more about her life in a harem. She was once married to billionaire Saudi Arabian arms dealer Adnan Khashoggi.

SUPERBRAND PARTNERS WITH GLOBAL SURF INDUSTRIES Superbrand announced a new licensing partnership with Global Surf Industries (GSI). GSI will manufacture and distribute Superbrand epoxy surfboard models featuring Superflex technology. The three models are the Unit, Vapors, and Fling, with delivery scheduled for early January 2018. The Superflex technology was developed by Superbrand and creates flex and strength throughout the board. “The partnership with GSI is a step forward on the evolution of our surfboard business, and one that provides retailers with better margins and surfers all over the world with easier access to our boards. I’m very impressed with their global operations, people and vision, making this partnership a great match that will enhance our board offering and bring new fans to the brand,” said Superbrand CEO Marcelo Bengoechea. "GSI is very proud of the addition of Superbrand to our brand portfolio. We’re very strategic about our offerings and Superbrand fits nicely into the performance end of our range. Their branding is deliberate and evolving into a demandcreating machine. At GSI we enjoy doing business with people and companies we like and everyone at Superbrand has been great to deal with - they understand our business well and we feel that it will be a case of one plus one equals infinity,” said Global Surf Industries CEO Mark Kelly.

INDUSTRY NEWS

HAYDENSHAPES ENDORSES PAYWEAR WESTPAC Westpac have announced the arrival of PayWear – a tap-and-go payment device that is wearable, waterproof and battery-free. Westpac have invited Hayden Cox as the first Australian designer to create an exclusive range to be revealed this December and available for sale in limited quantities early 2018. Hayden is working on prototypes and will be sharing parts of design process and concepts on his instagram page. “The accessories will be wearable in the surf to axe the need to bring a wallet or cash to the beach, but also be something you’d wear anywhere and have an element of style and flavour to them. The product itself isn’t too technical, so there is freedom to have a bit of fun with it. It’s a type of device that’s likely going to create a new product category for brands in general, like say, the phone case did. As a designer, it’s an opportunity that I am really grateful to be a part of,” said Hayden Cox. The range will be available online at the Haydenshapes website and is titled ‘Objects’ – a collection that will include other multifunctional items/accessories also designed by Hayden Cox.

DRAGON’S SUPPORT OF NATIONAL MENTAL HEALTH WEEK. As part of National Mental Health Week and World Mental Health Day, Dragon South Pacific is setting out to improve the lives of our community by enabling mental health awareness and education. Mental health affects everyone and with 1 in 4 young Australians aged 12 - 25 experiencing a mental health illness each year, mental health disorders among Dragon’s predominantly youth customer base are undeniably common. Mental health disorders are very treatable, however, the stigma surrounding this due to misunderstanding and prejudice frequently can delay or even prevent people from seeking the support they need. Dragon has set a goal of shedding a more positive light on mental health, using the brand’s influential voice to normalise this conversation and facilitate better understanding and awareness of mental health among their customer and retail base. This is an additional step for the brand after completing Youth Mental Health First Aid Training earlier this year and earning the Gold Standard Workplace Accreditation from Mental Health First Aid Australia for the Dragon South Pacific workplace. “Dragon recognises we all have a shared responsibility to raise awareness and drive the communication of this issue with our staff, retail partners and importantly our end customers,” said Dragon Director, Mark Hudson. “Special thanks to our athletes for their direct support with this initiative also.”

GSI LAUNCHES LIFE IS BETTER WHEN YOU SURF SCHOLARSHIP PROGRAM Global Surf Industries is launching the Life Is Better When You Surf® Scholarship Program to promote positive values around surfing and education. The Life Is Better When You Surf Scholarship Program will be awarding 30 kids, aged 10- 14 years old from across the United States of America, Australia and New Zealand, $1,000 (to be used for educational purposes) and two surfboards to each scholarship recipient. The idea behind the scholarship is to give back to the surfing community, cultivate the positive values of surfing and encourage academic involvement. The scholarships

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will be awarded to kids who exemplify that Life Is Better When You Surf®, rather than focusing on competitive achievements. “Education in and out of the water is so important that we want to encourage kids to progress in their surfing and at school,” said Mark Kelly, CEO and GSI Founder.

CORPORATE RESTRUCTURE OF LUXOTTICA AUSTRALIA GROUP Luxottica in Australia is reorganising its internal company structure, which includes the transfer of Luxottica Australia Pty Ltd’s assets and liabilities to Luxottica South Pacific Holdings Pty Limited, an affiliate company within the Luxottica Group, effective 1st December 2017. Luxottica South Pacific Holdings is a wholly-owned subsidiary whose ultimate holding company is Luxottica Group S.p.A. As such there will be no impact to the Luxottica trading operations in Australia or New Zealand. All contact details remain the same.

marketing news OZMOSIS CAMPAIGN COPS BACKLASH Ozmosis’ latest campaign, which rewards customers who show off surfing and skating injuries, has come under fire from child safety advocates. According to reports in various media outlets, the advertising standards bureau says it has received a number of complaints about the Ozmosis campaign #paywithpain. The paywithpain campaign encouraged customers to hashtag #paywithpain, with a picture or video of injuries to get a deal or go in the draw to win $5000. It also says they can go to a store with a scar or wound, to receive 20 per cent off a Rip Curl item. "More than a promotion, the campaign is a philosophy about life. That in pursuing our passions we get knocked down but those failures make us better," said campaign manager Gary McCreadie. Since launching the promotion last week, the campaign has received a backlash online and from parents. KidSafe WA CEO Scott Phillips said 27 children died from accidental injury and 4300 were hospitalised for a sport-related injury each year. “I think it's glorifying injury, as a bit of a badge of honour,” Phillips told Perth Now. Ozmosis has defended the promotion and says it doesn’t condone unnecessary risk-taking. “We cater to the youth market and you can't talk to this generation in the language of advertising - you can't get them to do anything unless they are already doing it” “That's why this campaign celebrates passion and the things they love - We see our customers come in sporting off their battle scars and we want to reward their passion and stories.” Source Perth Now / Campaign Brief

HOUSE OF VANS MELBOURNE The Accent Group announced the arrival of House of Vans Melbourne. The two-day, pop up event was held at The Meat Market, North Melbourne. House of Vans showcases Vans’ unique culture through multifaceted activations including D.I.Y workshops, shoe personalisation, curated musical performances, street markets, art exhibitions and Vans Skate and BMX team Demos plus much more.

The two-day celebration was headlined with special musical performances from Melbourne songstress Ali Barter and Newcastle heavyweights Trophy Eyes with support from other Australian acts. According to a statement by The Accent Group “House of Vans is where ‘Off The Wall’ lives; it’s a place where imagination lets loose over concrete bowls, art installations, workshops and concert stages, inspiring every person who runs, rolls or stomps through its door. Located in Brooklyn, New York, Chicago, Illinois and within the Old Vic Tunnels under Waterloo Station in London, as well as pop-ups around the world, House of Vans is home to the creativity that moves us.”

association news WORLD SURF LEAGUE (WSL) RELEASES 2018 SCHEDULE The World Surf League (WSL) has released the 2018 schedule of events covering the men's and women's Championship Tours (CT), Qualifying Series (QS), Pro Junior and Longboard tours as well as the WSL Big Wave Tour (BWT).Key changes to the 2018 Championship Tour calendars include last week's announcement of the CT event at Surf Ranch, Indonesia replacing Fiji, the world's best women surfers joining the men at Jeffreys Bay in South Africa, as well as the removal of Cascais, Portugal and Trestles, USA for 2018 (both markets planned to return to the schedule in the future). "We're excited about the release of the 2018 calendar, which includes some important changes designed to ensure we continue to champion the best surfing across the world and with a view to delivering longterm investment for the sport," Sophie Goldschmidt, WSL CEO, said. "Indonesia is universally-regarded as home to world-class waves and is a location where the League is exploring long-term opportunities for the sport. While Fiji has been a multiyear pillar of the Dream Tour and we may return in future, appropriate support from the government of Fiji is needed to bring the world's best back to Cloudbreak and Restaurants. Keramas is a fantastic venue and we are stoked to go there in 2018." "Additionally, we can't wait to see what the world's best women surfers will bring to the canvases of Jeffreys Bay in South Africa next season, accompanying the men to the iconic South African wave. Trestles and Cascais are not on the tour in 2018, which were difficult decisions for the League due to the heritage and the welcoming communities of both - however we'll look for opportunities to incorporate those markets into the WSL calendar at some level in seasons to come." "The 2018 calendar has some of the most significant changes we have implemented in many years," Kieren Perrow, WSL Commissioner, said. "While we sadly depart from some locations and say thank you to the communities who have supported us, we are also excited with the return to Indonesia and to hold the first ever CT event in a wave system at Surf Ranch. As the sport evolves we will continue to explore opportunities to enhance the schedule, collaborating with our stakeholders - Surfers as well as Partners." "As we move into a new era of professional surfing, it's reassuring to have the support of WSL and commitment to putting the world's best surfers in the world's best waves," Adrian Buchan, CT competitor and athlete representative, said. "Whilst we are disappointed at losing Fiji and Trestles for 2018, we are really excited to be returning to Keramas, Indonesia and for the inaugural Surf Ranch event. I have no doubt that the

2018 season will be injected with some fresh excitement from these new venues." "2018 is looking like the most exciting calendar year for women's surfing yet," Sage Erickson, CT competitor and athlete representative, said. "Mixing up the venues and adding in new ones for us like Keramas and Jeffreys Bay is going to really showcase a new level of surfing from the women." 2018 WORLD SURF LEAGUE (WSL) MEN'S CHAMPIONSHIP TOUR: Quiksilver Pro Gold Coast, Australia March 11 - 22, 2018 Rip Curl Pro Bells Beach, Australia March 28 - April 8, 2018 Margaret River Pro, Australia April 11 - 22, 2018 Oi Rio Pro, Brazil - May 10 - 19, 2018 Bali Pro, Indonesia - May 27 - June 9, 2018 Corona Open J-Bay, South Africa July 2 - 13, 2018 Tahiti Pro Teahupo'o, Tahiti August 10 - 21, 2018 Surf Ranch Lemoore, California/USA. September 5 - 9, 2018 Quiksilver Pro France, France October 3 - 14, 2018 Meo Rip Curl Pro Portugal, Portugal October 16 - 27, 2018 Billabong Pipe Masters, Hawaii/USA December 8 - 20, 2018 The 2017 WSL Men's Championship Tour will finish with the Billabong Pipe Masters in memory of Andy Irons in Hawaii, USA from December 8 - 20, 2017. 2018 WORLD SURF LEAGUE (WSL) WOMEN'S CHAMPIONSHIP TOUR: Roxy Pro Gold Coast, Australia March 11 - 22, 2018 Rip Curl Women's Pro Bells Beach, Australia - March 28 - April 8, 2018 Margaret River Pro, Australia April 11 - 22, 2018 Oi Rio Pro, Brazil - May 10 - 19, 2018 Bali Pro, Indonesia - May 27 - June 9, 2018 Corona Open J-Bay, South Africa July 10 - 17, 2018 Vans US Open of Surfing, USA July 30 - August 5, 2018 Surf Ranch Lemoore, California/USA. September 5 - 9, 2018 Roxy Pro France, France October 3 - 14, 2018 Hawaii Women's Pro, Hawaii/USA November 25 - December 6, 2018 The 2017 WSL Women's Championship Tour is culminating next week at Honolua Bay, Hawaii with the Maui Women's Pro. 2018/2019 BIG WAVE TOUR: Puerto Escondido Challenge, Oaxaca/Mexico Pe'ahi Challenge, Maui/Hawaii Mavericks Challenge, California/USA Nazaré Challenge, Costa de Prata/Portugal VIA PRESS RELEASE.

WOOLWORTHS AUSTRALIAN JUNIOR SURFING TEAM FINISH 4TH AT VISSLA ISA WORLD JUNIOR SURFING CHAMPIONSHIPS The Woolworths Australian Junior Surfing Team has finished 4th in the overall team standings at the 2017 VISSLA ISA World Junior Surfing Championship in Hyuga, Japan. On the final day of competition, Team USA narrowly held off Team Hawaii to be crowned Team World Champion.

Dylan Moffat, Australia’s sole individual finalist, was in sensational form all week in the Under18 Boys’ division, finishing with a Copper medal in the main final after accruing a 11.63 two-wave total. Trailing USA by only 263 points, Team Hawaii earned the Silver Medal with five individual medals of their own, Japan with the Bronze, and the Woolworths Australian Junior Surfing Team with the Copper. Earlier in the day, fellow Australian Alister Reginato was unable to progress through his Under 16 Boys’ Repechage final, finishing with a 14.4 two-wave total. The Woolworths Australian Junior Surfing Team journey will be broadcast via a halfhour episode of Surfing Australia TV on Channel 9 nationally in December 2017. The Woolworths Australian Junior Surfing Team is proudly supported by the Australian Institute of Sport, Hydralyte Sports and Surfing Australia.

FLIGHT CENTRE AIMS FOR THE STARS WITH LAYNE BEACHLEY Flight Centre announced its partnership with the Layne Beachley Foundation, Aim for the Stars, as this year’s Presenting Partner. Aim for the Stars was created to nurture talented young women through mentoring and financial support to fulfill their potential. With two thirds of its 19,000-global workforce being women, this partnership is a logical step for the travel agent. “Our organisations share core values that include striving to see more women in senior leadership roles,” said Flight Centre Travel Group’s Chief Operating Officer, Melanie Waters-Ryan. “As a global company, we share Layne’s core belief that women need to support and be kind to other women, and that for true change to happen, we need to have male champions to get on board and be part of the journey. We have key groups at all levels of our company to implement our strategies and vision, so that all women and men are equally represented, valued and rewarded,” she said. As Presenting Partner, Flight Centre is looking forward to being actively involved in the Foundation’s key events for the forthcoming year.

BURRIDGE AND BEACHLEY HONOURED AT CELEBRATION OF AUSTRALIAN WOMEN IN SURF. Generations of Australian women’s surfing royalty gathered in Sydney last month to celebrate the iconic women of the sport at a glamorous black-tie gala event, hosted by the Sally Fitzgibbons Foundation. The annual Celebration of Australian Women in Surf attracted over 220 guests who joined in celebrating the incredible lives of Pam Burridge and Layne Beachley. Both women were honoured for their sacrifices and achievements in shaping the careers of our country’s top competitors. “It’s quite a remarkable opportunity to have lived the life we’ve lived as professional surfers,” said Layne Beachley. “To be back in this room with so many influential friends, families, mentors, champions and legends of the sporting world is incredible. To look back on the career that I’ve lived and go, wow... the opportunities surfing has presented me are incredible to consider.” “I’m just grateful I’ve been able to stand on the shoulders of giants, like Pam (Burridge), like Pauline (Menczer) and other people who’ve shaped the career I’ve lived.”

Other greats in the room included Australia’s first wold champion in 1964, Phyllis O’Donnell, 10 times Bells Beach Champion, Gail Couper, 1993 World Champion Pauline Menczer, former #2 pro surfer, Jodie Cooper, Rookie of the Year, Keely Andrew and future star, Sabre Norris. In accepting recognition, Pam Burridge said, “I’m really proud to be here. This is such a special event. Last year, I remember going home saying to myself, ‘I can’t wait for next year’.” “Congratulations to Sally and the foundation team. To back it up again this year - I mean, one is easy, backing it up is hard,” the 1990 World Champion joked. “I’m so proud to be a part of this”, said Sally Fitzgibbons. “To be a beneficiary of the legacy, the energy, the heart and soul you’ve put into your performances. It’s a great night to share our stories. Bringing us all together is a privilege for me, it’s completely humbling. Thank you for celebrating.”

retail news RIP CURL ACQUIRE MORDY SURF CENTRE Rip Curl acquired Victorian surf retail icon Mordy Surf Centre. Established in 1970, Mordy’s is one of Victoria’s longest-running independent retailers, specialising in surf hardware, located in suburban Melbourne. Mordy’s reputation as a core surf shop has ensured that the store has stood for over 40 years as a destination for Melbourne surfers. Located in Melbourne’s bayside suburb of Mordialloc, Mordy’s mission has been to support the surfing lifestyle and the vision with new partner Rip Curl is to continue to be the one of the most influential independent surf, skate and lifestyle boutiques in Australia. In 2013, Mordy Surf Centre won the SBIA Vic/Tas Retailer of the Year Award and has been a perennial finalist at these awards. Similarly Rip Curl and their associated Ozmosis retail business acquired Peninsula Surf Centres in November 2015. Peninsula comprises five stores on Victoria’s Mornington Peninsula, with Rip Curl acquiring the Mornington Nepean Highway store and the Rye stores, while Ozmosis will be taking over the Mornington Main Street, Frankston and Rosebud stores. Commenting on the sale Neil Ridgeway Rip Curl Group Marketing Advertising Chairmen said “Rip Curl are very proud to keep the Mordy's legacy created by Mike and Jane Strong at a time where Mike was planning on exiting the business. The same could be said with Peninsula Surf and its owners too - which are Rip Curl stores with strong original heritage displayed.” “We believe that good, core destination surf shops need to be kept in play so surfers can continue to get the gear they need where they always have in their trips up and down the coast. It's important to respect the tradition of those type of surf shops, so we will keep the Mordy's signage on the front of the store alongside Rip Curl as a part of retaining that legacy,” “We will make sure that all Mordy's memorabilia and heritage is displayed well in the store so customers continue to feel the tradition.” Commenting on any loss of staff, Ridgway said that key staff will be retained wherever possible. “Troy Blake (store manager) and his crew will continue to be front of house offering boards and wetsuits and clothing to surfers the way they always have. We see the store

as a hub for surfers in Melbourne who want good surfing products - same as it ever was.” “With Llew Callahan - a well-known Victorian surfer - running the sales and operations side of all Rip Curl Stores across Australia and New Zealand now, there's a renewed energy, so combining expertise at Mordy's will be good for everyone.” Mordy’s digital assets including their website mordysurf.com.au and social sites are now being redirected to Rip Curl channels and also to make sure Rip Curl continue to service those customers on existing databases and channels. “For quite a while now these existing Mordy's channels have been under-utilised and we aim to help make the whole experience better for the customer with our in-house resources here at Rip Curl,” said Ridgway. Rip Curl will be hosting a grand opening early in October where the company will involve the local board riders club, surf community and businesses together with Rip Curls team to cement the new partnership with Mordy’s. “All in all, we're about making surf shops great places for surfers. Simple as that,” concluded Ridgway.

WILD THINGS GALLERY EXPANDS TO BYRON BAY. Sydney based collective Wild Things has opened a new retail showroom in the Byron Industrial Estate. Since launching five years ago, Wild Things Gallery and distribution has grown from an unassuming warehouse space in Manly Vale on the Northern Beaches of Sydney to become an extremely diverse business. Wild Things is both a retail showroom for Gato Heroi longboards and other handpicked brands, as well as the base for the Australian distribution of Captain Fin and Octopus (accessories). The new location in Byron Bay industrial estate launches with a large range of Gato Heroi and Creme longboards, art from Ozzie Wright and Otis Carey, the full range of Captain Fin and Octopus, as well as a selection of other premium brands such as Birdwell, Bata and Resin. The wholesale distribution will also be based from the Byron location. Byron Industrial Estate is a mecca for a diverse selection of surfboard makers and retailers such as McTavish, Vouch, Takyama, Channel Islands, Surfection, Sean Nettleton, McCoy, Morning of the Earth Surfboards and Wayne Lynch all within a close radius. The Wild Things Gallery also serves as an occasional venue for live music, featuring diverse bands playing over the years, including The Growlers, Allah Las, Skeggs, The Babe Rainbow, Goons of Doom, Mylee and the Milkshakes and The Ruminaters. Wild Things is also an exhibition and co-working studio space for artists, photographers and designers. Mylee Grace Music Sabrina Sterk (artist), Dusty Road Upholstery and Ali Mandalis (Resin) all work from the Byron Space, with Sydney currently hosting Ben Brown (artist) Jase Ierace (photographer) Anamone Studios (ceramics) and Ash Holmes (artist).

SNEAK PEEK AT THE SURFBOARD EMPIRE Currumbin (QLD) has a new surfboard specialty ‘Surfboard Empire’ is the brainchild of former Billabong sales manager Matthew Cairns who operated their Nobby Beach store for the last two years. 'Surfboard Empire' stocks Lost, Mayhem, Pyzel, DMS, Lib Tech as well as all the major surf hardgood brands.

M/SF/T – POP- UP STORE Misfit opened a pop-up store in Manly for a few summer months till Sunday January 28th. The store will showcase Misfit apparel including some exclusive capsule ranges, a complete range of all models of Misfit Shapes surfboards, and a range of special pieces and products from friends Epokhe, Globe, Atlas Lifestyle Co., Monster Children, Rage, and Alkali Fins. Along with the brands there will be art from the Misfit Mad Minds family - Irvine, Rad Dan, Otis Carey, and Joe Lenny. The Misfit Pop-Up Store will also serve as the venue for events over the duration including an opening party a combined Misfit Mad Minds 'BELOVED' art show, live broadcast of the 'DOWN AGE' radio show, collection releases from Misfit and partner brands, and responsibly-served beers after work every Friday. See photos in Faces In The Lineup.

JR’S MARION RE-BRANDS AS THE WEEKENDS SURF CO. After trading as JRs Marion for over thirty years, the iconic South Australian retailer and family-owned store has undergone an exciting transformation and re-branding. The store will now trade as Weekends Surf Co. Owner Craig Reeve said the store was inspired by a passion for the Aussie beach lifestyle. Surf is still their number one, core focus at the Weekends Surf Co. ‘We’ll always strive to deliver the best range of surf culture products and brands. We’ll also be offering a wider range of the latest street and skate fashion styles, to keep up with (customer) needs,” said Reeves. “The one thing that isn’t changing is our decades-long reputation for outstanding service. Our end goal is to provide a memorable experience, every single time you step into our store.”

INDEPENDENT SURF RETAILERS ALLIANCE (ISRA) EXPLORE E-COMMERCE PLATFORM OPTIONS Members of the Independent Surf Retailers Alliance (ISRA) met recently to explore e-commerce platform options for its members with the recent demise of Surfstitch. “We firmly believe the online channel must add value to the customer experience. Online has got to be about delivering a premium message and experience to our consumer.” explained ISRA’s Andy Ireland.

RHYTHM BEST BOARD STORE & BEST RENTAL STORE AT SIA TRADE SHOW The SIA Awards sponsored by Falls Creek inducted Hall Of Fame Inductees Tommy Tomasi & Paul Reader. Award winners for Best Boot Fitter went to Andy Burford, Best Ski Shop went to Auski, Best Board Store & Best Rental Store to Rhythm (Cooma), Best Tuning Pullins, Best Resort Thredbo Resort, Best Terrain Park Perisher, Best Industry Sales Rep Nick FJ.

PAUL BURDEKIN STEPS DOWN FROM SBIA BOARD The SBIA held its Annual General Meeting late last month at the Crowne Plaza Hotel at Coogee Beach, Sydney. Six board positions were up for election and nominations received from the six sitting board members all were re-elected unopposed. With the acceptance of the President’s Report and Treasurer’s Report, the AGM wrapped up. 13/

INDUSTRY NEWS

Damian Campbell was re-elected as Secretary / Treasurer. The meeting saw Billabong Asia Pacific General Manager Paul Burdekin stepping down from the Vice President position. SBIA President Anthony Wilson thanked Paul for his contribution: “Paul has put in countless hours and commitment to the SBIA over the last few years and our industry is a better place for his service.” Taking over the reins of the Vice Presidency is Jo Branch, Roxy’s Australasian Business Manager. Since joining the board in May, Jo has driven the Sponsorship & Membership Sub Committee as well as being heavily involved in the Events Sub Committee. “I’m super excited about the future of the SBIA and looking forward to contributing more as Vice President,” said Jo. The SBIA board for the next term will consist of: • President: Anthony ‘Macka’ Wilson – Saltwater Wine | Stormriders • Vice President: Jo Branch – Roxy • Secretary / Treasurer: Damian Campbell – Luxottica • Retail Board Member: Neil Ritchie – Alto Sports • Retail Board Member: Andy Ireland – Saltbush Surf • Retail Board Member: Glenn Callegari – Hillzeez • Brand Board Member: Paul Burdekin – Billabong • Brand Board Member: Mark Hudson – Dragon • Independent Board Member: Russell Zimmerman – Australian Retail Association. After surveying members and discussions at the Roundtable with brand and retailers alike, changes to the SBIA Awards in 2018 include: State-based retail awards make way for single store and multi store “Australian Retailer of the Year” awards. A newly developed “Excellence in Digital Marketing” award for Independent retailers. A brand-new category of “Innovation in Business” open to Retailers, Reps, Agencies and Brands alike. Next year’s Banquet and Awards Night will move from May to October. The change in date will bring the Awards as close as possible to summer maximising the impact on the industry’s peak trading season and will see the awards program kick off in July. Coinciding with the Quiksilver and Roxy Pro, March will see a massive program for the SBIA on the Gold Coast including a new format, full-day agenda focused on retail up-skilling, featuring recognised industryspecific experts; and the “SBIA Industry Surf Stomp”, dedicated to raising awareness and funds for the Surfrider Foundation.

sponsorship news RIP CURL PRO RIDES ON AT BELLS BEACH UNTIL 2022 The Victorian Labor Government has locked in the world’s longest running surfing contest – the Rip Curl Pro – at Bells Beach until at least 2022. Minister for Tourism and Major Events John Eren joined young surfers from the Indigenous and elite Surfing Victoria Program at Bells Beach today to announce the new five-year deal. “The Rip Curl Pro is going nowhere – these world-class competitions are right at home in the sporting capital,” said Minister for Tourism and Major Events John Eren. 14/ Australian Surf Business Magazine issue #80

“For over 30 years, this event has helped shape the proud history of Bells Beach. This new deal will keep attracting thousands of visitors to the region, creating jobs and boosting local business.” Around 30,000 people attended this year’s event and checked out the sweeping turns of the Great Ocean Road, with millions of fans worldwide tuning in on their screens. World Surf League Senior Vice President of Communications Dave Prodan echoed the thoughts of Minister Eren. "Bells Beach is such an important event on the WSL Championship Tour calendar and we look forward to bringing the world’s best surfers back to Victoria each year to showcase their incredible talents at such an iconic location.” The Labor Government is proud to have helped secure the Rip Curl Pro thanks to funding from the Major Events Fund, designed to attract the biggest and best events to Victoria.

WORLD SURF CHAMPION BARTON LYNCH JOINS TEAM SURF LAKES Surf Lakes Holdings Ltd are building Australia’s first wave pool and announced that former professional world surfing champion Barton Lynch has joined the team. The 1988 world champion, who currently features as a regular commentator on the World Surf League (WSL) will commence as a brand ambassador. Lynch’s role will be centred on promotion of the Surf Lakes brand during the ongoing roll out of Surf Lakes sites across the globe. With Mark Occhilupo maintaining his position as the face of the brand, Lynch’s communications skills will be used to the full.

finance news RIP CURL REVENUE UP 2.3 PER CENT TO A$489.3M Rip Curl has posted a well-timed leap in profit against a background of heavy discounting across the industry and sales talks led by advisory firm Gresham’s. It’s a good time to be onboard with Rip Curl, not only did connections to the brand have a stake in Rekindling, last week’s Emirates Melbourne Cup winner, but Rip Curl nearlydoubled annual profit of $18.4 million, up from $10.06 million. The profit jump comes amid reports the company’s owners are considering a sale of the business. While persistent rumors emerged about likely suitors on other media platforms, Rip Curl CEO Michael Daly squashed those that suggested that the brand was in discussion with private equity firm Oaktree Capital and rival Billabong “(There’s) certainly no truth to the rumor regarding Oaktree or Billabong. We are not in conversations with either about a sale,” Michael Daly told ASB. According to Rip Curl’s annual ASIC filing revenue rose a modest 2.3 per cent to $489.3 million.

BILLABONG TALKS STRATEGY AT AGM Billabong’s overseas markets have given the company a boost, while APAC remains a problem for the company. While the company says it remains focused on its seven-part turnaround, given big currency swings and disruption in retail markets around the world, Billabong believes it has made meaningful progress. The APAC region dropped 28.3 per cent in EBITDA for the year while in the company’s largest region, the Americas, Billabong recorded 46.9 per cent EBITDA growth on a constant currency basis. “By any measure this is an outstanding outcome in the face of tough market conditions” Billabong chair Ian Pollard told shareholders at the company’s AGM held yesterday. “We are confident that this improvement is not an isolated result but part of a sustained turnaround in a region that has been described as our greatest opportunity.” Pollard highlighted the company’s simplified brand portfolio with the sale of Sector 9 and Tigerlily. Social media profiles came under scrutiny of some shareholders in attendance. Managing director Neil Fiske said first half results were weighted toward APAC and the retail channel, the second half toward the Americas and the wholesale channel. “The earnings profile of the company has shifted substantially to the second half, a trend we expect to see again in the year ahead,” said Fiske. Billabong, Element, and RVCA, now comprise 91 percent of external wholesale sales. “At our last AGM, we set some ambitious goals for the balance of the 2017 financial year. We achieved those and came in just shy of our guidance – despite a very challenging environment, particularly here in Australia,” Fiske told shareholders.

state of the art customer direct marketing capability, and a new digital platform to support the wholesale channel,” said Fiske. “The future of retailing lies in being seamlessly omnichannel – with stores, e-commerce, social media and customer database marketing all connected together to give us one integrated view of our customers while allowing them to shop the way they want to shop. “Brick and mortar stores are very much part of that future. However, consumers demand they be better merchandised, easier to shop, and more engaging. Less clutter, more wow factor. Here too we are making progress.” AUSTRALIA HIGHLIGHTS 1. Billabong are applying lessons learned in the U.S., and have fast-tracked assortment changes and are growing speed to market capabilities. Early indications at Billabong stores show that the product changes are working, and they are hopeful product improvements at Billabong retail will flow to the wholesale channel next. 2. The company is focused on growing the underpenetrated e-commerce channel and has hired new staff to help. 3. The company is focusing on fewer, bigger and better stories in stores, and building depth behind key styles. Billabong-owned Kirra Surf on the Gold Coast where these changes have been implemented, sales are up 22% year to date. 4. Stores in Queensland are also showing positive sales trends since the start of the Australian spring. BRAND UPDATES The Billabong brand accounted for 55% of external wholesale sales in Fiscal ’17, which ended June 30. RVCA accounted for 20%, and Element, 16%. Other brands accounted for 9%. 1. Billabong • Billabong opened nine new company stores during the year, and e-commerce sales rose 28% globally.

“It is worth repeating: two of our three regions performed well last year – the Americas and Europe. APAC fell short, some of it due to macro conditions and some of it from our own execution issues, which we are correcting.

• The women’s business performed especially well, winning brand of the year in both Australia and the U.S.

“Where we fell short was in Asia-Pacific, and most acutely in Australia,” said Fiske.

2. RVCA

“We certainly confronted tough macro conditions last year. Reports of retail weakness in Australia were widespread in a year marked by a number of retail chain closures, declines in mall traffic, and heavy discounting. All of these factors weighed on our result. Still, we can do better. We had some misses on product and on sales execution, and we needed to make some leadership changes. We have responded to these issues – and the early positive signs we are seeing in the market give me confidence that we are on the right path.” Fiske acknowledged that the company is digitally underdeveloped in the APAC market – at 1.9 percent of e-commerce sales compared with the Americas at 7.4 percent. “This is a big opportunity for us,” said Fiske

Directors said in new filings with the corporate regulator that while trading conditions remained challenging, Rip Curl was focused on “quality sales”.

“We have hired experienced leaders for both our mono-brand and multi-brand web businesses, have staffed up the teams and are investing much more aggressively this year to accelerate growth, especially in mobile.”

“Our channels to market delivered solid margins and where possible we have avoided heavy discounting, which we see as brand dilutive, despite this being prevalent in global retail markets,” said Daly.

Over the past week, Billabong has launched the first of a series of websites on a new, e-commerce platform, first with Surf Dive and Ski to be followed by other websites in the next financial year.

The results supported a dividend payout of $18.4 million to Rip Curl’s shareholders, who are led by directors and founders Doug Warbrick and Brian Singer.

“Australia will be the region of first deployment for the broader set of Omni channel platform initiatives – which include modernised systems for our retail stores, a

• According to ActionWatch, Billabong now has twice the market share of its nearest competitor. • Billabong wrote down the goodwill value of RVCA in the 2017 fiscal year. The company said the impairment charge was more of an accounting issue that had to with the difference between the company’s share price and the carrying value of the group’s net assets. “We believe that there has been no impact to the underlying value of the RVCA brand,” Pollard said. “We have consistently described RVCA as a brand with enormous potential and we are confident that with investment in development and expansion it can grow very quickly.” • Billabong believes RVCA can grow to two to three times its current size. • Billabong sees expansion for RVCA in consumer segments, channels and geographies. Growth can come from men’s, women’s and kids; RVCA sport and accessories; and in underdeveloped territories like APAC, Europe, Brazil and emerging markets. • The company has made “significant improvement in RVCA staff and marketing to drive growth.” • RVCA will open RVCA stores in Southern California, Tokyo and Bali this year, and Billabong is expanding the brand’s presence in its multi-brand retail such as Kirra Surf.

3. Element • The company still believes Element can turn around in the U.S., where it sees the greatest opportunity. Its business in its largest territory, Europe, continues to perform, and business has improved in Australia in the past six months. Concluding the AGM Neil Fiske said that for the Billabong Group, “Our character is in our brands, our people, our culture. It’s is in our passion, our authenticity, our drive to be the very best at what we do.” “I’d like to finish by thanking the tens of thousands of talented people around the world who are so incredibly dedicated to building our brands and delivering for our customers. By any measure of character, you rise to the very top."

media news SURFSTITCH SELLS STAB BACK SurfStitch sold Rollingyouth, the owner of STAB Magazine, back to its co-founders for a nominal sum after buying the media group for approximately $6 million during an illfated acquisition spree. The administrators of SurfStitch Group, John Park, Quentin Olde and Joseph Hansell of FTI Consulting, announced the sale of Rollingyouth Pty Ltd which was confirmed on STAB’s website on Monday. Mr. Park said STAB Magazine had been sold to Rollingyouth Media Pty Ltd, a company owned by STAB co-founders Sam McIntosh and Tom Bird for a nominal cash consideration. Discussions had been under way for months before SurfStitch went into administration. According to a report in the Financial Review, McIntosh and Bird sold the business to SurfStitch in May 2015 for $2.26 million in cash and 2.43 million SurfStitch shares worth $3.6 million at the time. Under the terms of the deal SurfStitch and Rollingyouth Media would maintain a close commercial relationship, with both parties entering into a three-year agreement for the supply of marketing and content development and advertising services to the SurfStitch Group. “We’ve been in talks for some time, and were trying to get the timing right. And while I can't reveal what "nominal" sale price is, what I will say is this: There isn’t exactly a queue trying to buy print titles, let alone in surf,” said Sam McIntosh. “SurfStitch were a partner of ours before and will continue to be in the future. And, they had always loosened our leash enough for us to operate in isolation.” In related news at STAB, McIntosh also announced the company had brought on former ‘Surfer’ correspondent Ashton Goggans as newly appointed Editor in Chief.

MONSTER CHILDREN PARTNERS WITH VIRGIN AIRLINES Monster Children has launched its seventh annual photo competition and entries have just closed online. The Monster Children Photo Competition carries a total prize pool of $30,000 In other Monster Children news they’ve partnered with Virgin Airlines with MC films now screening on Virgin flights until the end of the year. According to their website “Yep, if you’re on the red-eye and you’re jack of Hollywood’s melodrama propaganda, then you can pour yourself an outrageously priced drink and hit play on almost two hours of our cinematic efforts from the last ten or so years”

Amongst the movies on offer include ‘The Tempest’ which was filmed and produced during the making of the Steph Gilmore guest editor issue of MC and won the Surfer Mag film of the year, making Steph the first female to ever take the crown.

SURFING AUSTRALIA: A COMPLETE HISTORY OF SURFBOARD RIDING IN AUSTRALIA Surfing Australia tells the story of surfing’s humble beginnings in the early years of adventure and experimentation to the organised events of today. Australian surf culture has always had competing impulses of chaos and order. For every tragic drug disqualification, a World Title winner. From Tommy Tanna, Alick Wickham and Freddie Williams’ pioneering surf lifestyles to the hedonism of 1950s beach culture, the Coolangatta Kids of the 1970s, to the eventual professionalised machine that surfing in Australia has now become, this is the complete, no-holds-barred history of both sides of the story. Featuring photographs, surfing paraphernalia and stories of the larger than life characters who have shaped the sport, and forewords by Mark Richards and Layne Beachley, Australia’s World Champion surfers, this is the definitive guide to Australia’s surfing history. Author: Phil Jarratt Hardie Grant Books, RRP AU$45.00/NZ$49.99

environment news RIP CURL FOR PLANET DAY Rip Curl celebrated Planet Day late last month with every crew member from Rip Curl Torquay putting down the phone and picking up the tools – all in an effort to help keep the local environment healthy and rejuvenated. In conjunction with environmental action groups SANE, the Surf Coast Shire, Torquay Coast Action / Shire, GORCC and Jan Juc Coastal Action, Rip Curl’s annual Planet Day was once again a success, planting over 950 trees in a single day. "Here at Rip Curl we really place an emphasis on the importance of Planet Day,” said Nichol Wylie, the General Manager of Australia and New Zealand. "Everyone who works at Rip Curl here in Torquay gets the huge benefit of enjoying what the Surf Coast has to offer, and we want to do everything we can to keep the community, and the coast, in good condition." “Getting crew out into nature and working with the community and environment is invaluable. It's epic to see the positive impact that people can make when they get out and work together for a common goal, and to then see that hard work flourish over the years."

RAY COLLINS STARS IN ‘FISHPEOPLE’ – A FILM ABOUT LIVES TRANSFORMED BY THE SEA Patagonia released a new documentary film, Fishpeople, directed by Keith Malloy. It tells the stories of a unique cast of characters who have dedicated their lives to the sea. From surfers and spearfishers to a long-distance swimmer, a former coal miner and a group of at-risk kids on the streets of San Francisco, it’s a film about the transformative effects of time spent in the ocean - and leaving behind our limitations to find deeper meaning in the saltwater wilderness that lies just beyond the shore.

Individuals featured in the film include Dave Rastovich (surfer), Matahi Drollet (surfer/fisherman), Lynne Cox (open-water swimmer), Eddie Donnellan (youth worker) and Kimi Werner (spearfisher).

team news

Australian photographer Ray Collins grew up near Wollongong, New South Wales. His eye for dramatic and arresting seascapes— combined with an uncommon comfort in dangerous ocean conditions - earned Collins acclaim as a fine art photographer. Through Ray’s lens, we’re shown the power of the ocean in a unique and elemental way.

CREATURES OF LEISURE WELCOMES JACK FREESTONE

According to Collins; “My aim is to show the ocean as a living, breathing thing, to document it in all of its intimidating strengths, and to bring awareness to its quiet fragility.” Trailer & Tour Schedule: https://www.patagonia.com.au/pages/fishpeople

WILDERNESS SOCIETY UPDATE Statoil and the remaining oil and gas companies wanting to drill in the Great Australian Bight whale nursery should follow BP and now Chevron in quitting their Bight operations, the Great Australian Bight Alliance said after Chevron’s announcement to leave the Bight. “Chevron has worked out what BP realised when it pulled from the Great Australian Bight a year ago almost to the day,” said Wilderness Society South Australia Director Peter Owen. “BP showed that drilling in the deep, rough waters of the Great Australian Bight was unviable when it could not produce an acceptable drilling plan for Australia’s offshore oil and gas regulator, NOPSEMA. Despite BP’s withdrawal, community opposition to Bight drilling has only kept growing. Statoil, the Norwegian oil giant that picked up BP’s cast-off Bight project, should see the writing on the wall now that Chevron has also quit the Bight. Sea Shepherd Australia Managing Director Jeff Hansen said: “We should not be expanding the fossil fuel industry into pristine treacherous seas where the risk of spills is far greater than we’ve seen before. A rapid transition away from this industry is our only hope for a livable climate for our children. “The Great Australian Bight’s pristine waters are a haven for 36 species of whales and dolphins, including the world’s most important nursery for the endangered southern right whale as well as many humpback, sperm, blue and beak whales. It’s also Australia’s most important sea lion nursery and supports seals, orcas, giant cuttlefish and some of Australia’s most important fisheries. Former Australian Greens leader Dr. Bob Brown said: “The Great Australian Bight is one of the most intact natural ecosystems left on Earth. BP's oil spill in the Gulf of Mexico a few years back was the worst on Earth. Such a spill here would wreck the South Australian, Victorian and Tasmanian coastlines.”

YOGI PEACE CLUB JOINS FORCES WITH CLEAN COAST COLLECTIVE Torquay based Yogi Peace Club has launched their summer collection “Lotus Love Child". The range includes a collaboration with Clean Coast Collective ensuring that $2 from every yoga mat sale goes to this environmental not for profit organization. Based in Byron Bay, Clean Coast Collective is dedicated to cleaning up Australia’s most polluted beaches. “I feel this is the most innovative Eco collection to date. I have worked hard to make the yoga mats more luxurious and grippy than ever, while still being PVC free,” said founder and owner Emma Barr.

Creatures of Leisure announced that World Tour athlete Jack Freestone has joined their elite International team. A two-time World Junior Champion, who’s showcased his talents in a string of sizzling video parts over the years, Freestone couldn’t be happier about coming into the Creatures fold. “I’m so pumped to join a core brand like Creatures of Leisure,” says the 25-year-old natural-footer. “From the incredible team, to the people involved behind the scenes, it’s a phenomenal company and I’m really excited to be a part of it.” As an elite talent, Freestone understands the importance of quality surf hardware better than most, and he’ll take more confidence into his surfing knowing that his leashes and traction pads will never fail him in the water, no matter the critical situations he puts them in. “Having full faith in your equipment is crucial,” said Freestone, “and at the end of the day as a competitor that’s something you can’t put a price on.” “Jack’s such a great fit for our team,” explained Paul Anderson, Brand Manager at Creatures. “Jack’s heavily into product and will bring some really fresh perspective to our design team, we’re stoked to have him on board”. Jack Freestone’s contract with Creatures of Leisure starts immediately, and no doubt a fruitful partnership will ensue long into the future. Keep an eye out for his signature traction pad coming early in 2018.

RVCA WELCOME SAGE ERICKSON RVCA welcomed Sage Erickson to the RVCA family. Born in Ojai, California, Sage moved with her family to the North Shore of Oahu at the age of nine, where she first paddled out at the iconic Sunset Beach and started surfing. Eventually moving back to Ojai she started competing in the NSSA and hasn’t stopped since. Her confidence, commitment to training and amazing personality drive her competitive spirit which has led to her success. Currently, Sage is competing on the WSL Women’s Championship tour.

HAYDENSHAPES WELCOME DION AGIUS Dion Agius has joined Haydenshapes. Dion joins pals Craig Anderson, Creed McTaggart, Nate Tyler and Dylan Graves - plus - Cole Houshmand, Marti Paradisis, Warren Smith and Hanalei Reponty.

on the move NATHAN EDWARDS TO REEF TERRITORY MANAGER Torquay, VIC-based Reef Australia & New Zealand welcomed Nathan Edwards as Territory Sales Manager, effective immediately. Edwards will be responsible for all sales of the Reef brand in both Australia and New Zealand, and goes to Reef after an extensive career at GSM brands. “We are privileged to have Nathan join our team and drive our sales force to the next level, with the introduction of ‘Reef Escape’ for ladies and our new ‘Voyage collection’ Reef is on a growth trajectory,” said Reef AU/NZ Brand Manager Tim Barr. 15/

“I’m stoked to be part of such a great brand, and to be back in the thick of it in the surf industry. It’s an exciting time for the brand, and I’m looking forward applying some more sales structure and focus to help the brand continue to grow into the future,” said Nathan Edwards. “I’m looking forward to the challenge of a broader role and working closely with the team of agents for both the Australian and New Zealand regions. The opportunity to take on a National role, remain based in Torquay and work with a tight community team is epic.”

CASWELL TAKE ON SAXX’S SAXX’s expansion in Australia is set to continue with the recent signing of surf industry veteran, Zoe Caswell. Launched in Australia mid-2017, SAXX is gaining momentum thanks in part to endorsements from big name Ambassadors like pro surfer, Mark Healey and DC Shoes Founder, Ken Block. Zoe Caswell takes the reigns in NSW with her fast-growing business, Coast Agency. For further information visit www. saxxunderwearaustralia.com.au

“With Nathan’s experience, we are looking forward to delivering the best sales team and service in the industry. Nathan is an avid surfer, waterman, and traveler - a perfect fit for Reef and our ‘just passing through’ brand ethos,” added Tim Barr.

etail news

THOMAS PEARS TO VOLCOM

“On 24 August 2017, we published comments made by Mr. Kim Sundell regarding the directors and officers of SurfStitch.

Volcom announced that experienced account manager Thomas Pears has joined the company’s legendary customer support team. Pears most recently worked as Sales Manager at Electric Visual Evolution. Prior to that, Pears held positions at Puma as National Account Executive and Key Account Manager at the Billabong Group. Pears’ early career included various roles within Stacey Surfboards and Rip Curl retail in Manly. “Tom has an extensive background in retail account support as well as working for many years in retail himself. He is also a keen surfer, skater and snowboarder so he fits very nicely into the Volcom Family,” said Volcom Oz/NZ CEO Dougall Walker. “Tom will work under General Manager Alison Thomas and alongside industry legend Shayne ‘Patto’ Patterson and her award-winning service team.” “To be part of the Volcom family is an honor. I have been lucky enough to work with some amazing businesses and people in the past. I’m looking forward to being part of the team,” said Pears. Please welcome Thomas to the Volcom Oz/NZ team.

DAMION FULLER EXITS ELECTRIC Former General Manager for Electric Australasia Damion Fuller has exited the business to pursue new opportunities with Aloha Zen, the surf apparel and homewares project he started while living in California. Fuller announced via Instagram that he’d taken the leap to follow his passion and dedicate himself to working full time with his partner Fern Levack on Aloha Zen. “At the end of the day Aloha Zen is the essence of who I am and what really matters to me. Surfing, authenticity and friendship,” said Fuller. “It has been just over three and half years since we moved the Electric office from Byron Bay Industrial Estate to Camperdown to explore new channels of distribution and be more actively involved with our buyers, the action sports media and local stylists.” “It’s been a great ride for me and I’ve enjoyed working with some great people in the US. I feel that I achieved all I can for the business in Oz and it’s time for me to move on and for Electric to re-structure to be better suited to the changing Australian market place.” An official announcement regarding new management at Electric is expected to follow. In the meantime, checkout http://www. alohatozen.com.au

PUBLICATION OF DEFAMATORY ARTICLE.

We accept that there was no basis in fact for the allegations made by Mr. Sundell, as a result of which we have removed the article from publication. ASB Magazine apologises unreservedly to the directors and officers of Surfstitch for the publication of the article and the damage which it has caused to the persons involved.”

BILLABONG FINDS ITS OMNI CHANNEL GROOVE Billabong ditched its deal with NetSuite following technical implementation issues. Instead, the company has broken up the core components of its omni-channel overhaul and handed the pieces to separate software providers. Billabong revealed it has appointed Salesforce as the provider of its e-commerce and digital marketing platforms, and Aptos for point-of-sale and order management and loyalty. At its full-year 2017 results, Billabong revealed it had restructured its omni-channel overhaul into pieces that would be served by "multiple out of the box best in breed global platforms". "The selection of the new partners was based on one overriding principle – delivering the best possible omni channel experience for customers with certainty and speed," Billabong said in financial filings. "[We] emphasised that omni was not just e-commerce, but the ability for customers to shop the way they wanted to shop – in stores and online, retail and wholesale, across all channels with richness of content and a personalised experience. "Each of the major partners is a leader in their field, but importantly they have worked together extensively on similar implementations." Billabong is using Australia as the test case for the first deployment of the new global platforms; the first of the new e-commerce websites, Surf Dive 'n' Ski, is scheduled to launch before the end of this year. "The new solution is expected to lower implementation risk and improve certainty of delivery for the balance of the project," Billabong said. Billabong selected the Aptos Singular Commerce platform for point of sale, Customer Relationship Management, Enterprise Order Management, Merchandising, and Audit and Operations Management — all in the cloud.

According to the statement; “With Aptos’ market-leading solutions, Billabong will be able to blend its physical and digital retail channels and support orchestration of complex omni-channel journeys through a single view of customers, inventory, orders and more.

SURFSTITCH SELLS SURFDOME

“With Aptos’ Singular Commerce platform and end-to-end cloud solutions, Billabong will integrate every part of its retail enterprise to enable an experience — no matter where, when or how its customers shop.”

FTI Consulting, the administrators of SurfStitch Group and SurfStitch Holdings, have announced the sale of wholly-owned UK subsidiary, Surfdome Shop Limited to Internet Fusion Limited. Internet Fusion has paid cash and has an obligation to pay deferred consideration for the acquisition. According to Inside Retail, the total consideration (including the deferred consideration) for the acquisition amounts to c.GBP £7m.

“Aptos’ global presence, leading cloud-based technology, and professional services and implementation team were important considerations in our selection process,” said Michael Yerkes, SVP, Global Operations of Billabong International Limited.

John Park, Quentin Olde and Joseph Hansell of FTI Consulting said the companies had agreed terms and entered into an exclusive process with Internet Fusion in relation to the Surfdome transaction before they were appointed administrators.

LEX PEDERSON ON NEW ECOMMERCE CONSULTANCY

Internet Fusion is a UK-based sports and adventure retailer, servicing a number of markets with specialist websites via its proprietary e-commerce platform.

Periscope has announced their launch as a specialist eCommerce consultancy and marketing-partner-for-hire. Founded by SurfStitch co-founder Lex Pedersen, newlydeparted SurfStitch Global Marketing Director Martin Corr, and SurfStitch Director of Business Integration and Intelligence Clover Chambers, the team is headed up by some of Australia’s most awarded and experienced eCommerce operators across strategy, logistics, business intelligence and marketing. Joining them at launch is Nathan Crouch who previously headed up the global group’s digital marketing division. Periscope offers a new proposition to businesses seeking assistance in developing and delivering eCommerce strategies including DTC, operational excellence, technology guidance and marketplace positioning solutions. Essentially, Periscope is powered through 20+ years of collective ecommerce experience, leveraging the successes achieved to date combined with, just as importantly, the lessons hard-learnt. “After more than a decade in ecommerce, I’ve absorbed many an invaluable lesson,” said Lex Pedersen. “The irony is that the principals are quite simple but the number of cogs that need to turn in a business-wide, synchronised manner are considerable. I believe that only when you have this holistic view will you be poised to truly extract your digital revenue potentials and cross channel sustainability. “With the right team, right partners and commitment, the opportunity for so many businesses is right at their fingertips. It is these opportunities that have us on the edge of our proverbial seats. Growing a business isn’t just profitable for the leaders of that business; it’s something I find deeply satisfying, probably due to my competitive nature. “To be able to not only focus on my own area of expertise in eCommerce, but get that satisfaction from contributing to and participating in that growth for a larger number of businesses is definitely win, win, win from my perspective.” Launching with offices in both Queensland and Sydney, Periscope caters to businesses across the APAC region whom are seeking to ensure their eCommerce potentials are optimised and implemented efficiently. As businesses are faced with the emergence of Amazon in the region, amongst other international players, Periscope believe the necessity for evolution and adaptation are not a luxury but a necessity - a need they aim to fulfill. www.thisisperiscope.com

“The sale of Surfdome to a synergistic buyer, Internet Fusion, is a good outcome for the ongoing growth of the Surfdome business and continues with the execution of the restructuring plan for the group to sell down non-core assets to focus on the profitable and successful SurfStitch Australian business,” said Olde. SurfStitch’s operating subsidiaries continue to trade while the holding company is in administration. Source: Inside Retail.

BILLABONG EMERGES AS UNLIKELY FRONT-RUNNER IN SURFSTITCH SALE The Australian Financial Review (AFR) is reporting that Billabong is tipped to be the frontrunner to buy (back) SurfStitch. According to AFR’s tattle-tale section ‘Street Talk’ Billabong was among several parties that submitted a proposal to SurfStitch's administrators, John Park, Quentin Olde and Joseph Hansell of FTI Consulting. FTI and legal counsel King & Wood Mallesons are expected to send two or three bidders through to the next stage of discussions. Billabong is understood to have submitted an expression of interest in a field that also includes local and offshore trade and private equity buyers. Sources suggest that City Beach and General Pants Group are the other parties at the negotiating table through to the next round of discussions. ASBMAG reached out to Billabong for comment but the official response was that Billabong had “no comment at all regarding the SurfStitch administration process.” It’s understood for any deal to proceed, SurfStitch’s non-core assets needed to be divested and with the sale of Surfdome to UK based internet Fusion Limited for approximately A$11.8 million it potentially opens the door for a sale to Billabong or City Beach or General Pants to proceed. Earlier SurfStitch shed Magic Seaweed and STAB magazine in a fire sale. Although the price was not disclosed, it’s believed to be a small fraction of the $13.8 million SurfStitch paid in 2015 when it acquired Magicseaweed and STAB Magazine as part of an ill-fated content deal. If Billabong is the front-runner, as the AFR are reporting, it’s an interesting twist of events since Billabong sold its 51 per cent interest in SurfStitch and its US online business, Swell, to SurfStitch co-founders Justin Cameron and Lex Pedersen for about $35 million in 2014. Regardless, the sale of Surfdome suggests that an outcome to the SurfStitch sale process is likely to proceed.

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OVERSEAS NEWS

u.s. news HURRICANE IRMA IMPACT ON ACTIONWATCH USA Q3 RESULTS There was a 7.4% overall sales decline for September 2017 that indicates an acceleration of a downward trend after a 4% decline in July and a 6% decline in August, leaving us with a 5.5% overall sales decline in Q3 2017 for all product categories tracked in the ActionWatch same-store US retail panel compared to the same time period last year. However, if we exclude Florida-based retailers, which were negatively affected by Hurricane Irma, the sales declines did not accelerate for the rest of the same-store panel as their declines remained steady in the -5% range for both August and September. Hopefully, as we move into Q4 we will see sales move into positive growth territory for all the retailers on the panel, especially those located in Florida. Inclusive of data from Florida-based retailers, there was a 5.3% decline for the Apparel category, almost identical to the overall same-store panel (-5.5%), with a lower rate of decline from the female segment (-2.8%) compared to the male segment (-7.2%). Bright spots in the Apparel category for both men and women included long-sleeved T-Shirts and fleece tops while the women's short-sleeved T-Shirt category represented one of the fastest growing categories with +34% year over year sales growth. Once again, footwear was the worst performing major category in Q3 with a double-digit decline (-10%), which included a particularly big sales growth hit from the women’s shoe class (-15%). Men’s shoe sales were down as well, but stayed in the single digits for both sandal and shoe sales. The lone category that saw any growth in footwear was the very small men's casual sandal category. Although accessory sales were down 8.3% there are two bright spots, with positive sales growth for hats (+2.2%) and belts (+2.1%). Most of the other accessory categories suffered to various degrees with watches, sunglasses and wallets being hit especially hard. Hardgood sales declined at a slightly lower rate (-4.1%) with single-digit sales declines in both surf and skateboard hardgoods (-4.7% and -7.5%, respectively). Sales for wakeboard hardgoods were essentially flat (-.4%), while we saw positive doubledigit growth from softboards (+24%), surfboard fins (+22%) and bodyboard hardgoods (+10%). Wetsuit sales growth was once again a very encouraging sign with sales up +8% compared to Q3 2016. Nearly all wetsuit classes experienced strong yearover-year sales growth, including the largest wetsuit class—full wetsuits—with sales up +5% Clearly, the overall declines are continued cause for concern. However, it is encouraging that we see sales increases in categories that could eventually translate into an increase in the number of surfers. Let's hope they all have good experiences with their softboards and bodyboards while the new wetsuits are keeping them warm so they eventually convert into core consumers. Patrik ActionWatch USA

GOPRO SEES Q3 REVENUE GROW 37 PERCENT GoPro, Inc. announced financial results for its third quarter. In the third quarter, GoPro achieved strong revenue growth, gross margins and adjusted EBITDA. Revenue was $330 million, up 37% year-over-year, gross margins were approximately 40%, and adjusted EBITDA was $36 million, up $109 million year-over-year. "We launched our premium-priced HERO6 Black with global on-shelf availability and strong critical acclaim. We are now focused on driving consumer demand to reach our goal of full-year double-digit revenue growth and non-GAAP profitability,” said founder and CEO Nicholas Woodman. GoPro achieved strong revenue growth across all key regions. Growth in the Americas was up 20% year-over-year. EMEA was up 26% year-over-year. APAC was up 153% year-over-year. More than 50% of GoPro's revenue was generated in markets outside of the U.S. in the third quarter. "GoPro has turned a corner, restoring growth and profitability to our business," said Woodman. "During the quarter we generated US$47 million in cash and gross margins were 40 percent. Year-over-year, we grew revenue by 37 percent and dramatically reduced operating costs without impacting our product roadmap.”

‘PT’ TO COACH CHINA’S 2020 OLYMPIC SURF TEAM. ASB MAGAZINE: Last month it was revealed that current WSL #22 Bede Durbidge would retire at the season’s end competition at Pipeline in December. This week it was announced that Australia’s ‘original’ professional world IPS champion Peter ‘PT’ Townend has officially been appointed the National Coach of the Chinese National Surfing Team. The news broke international headlines when a feature appeared in the LA Times. PT says coaching the Chinese team for Olympic aspirations is ‘a big challenge’ and he’s currently in China after a month-long stint working with the National Team. ASBMAG approached PT about his new role. “Well, I’m the first appointed National Coach of the Chinese National Surfing Team with Olympic aspirations as directed by the Beijing government’s Central Sports Agency and its Watersports Bureau division,” he said. According to PT, the position opened up through his exposure in China over the past five years as the Event Director of the Silver Dragon “river bore” event on the Qiantang River in the city of Hangzhou. “I had to go through an interview process after surfing was announced in September 2016 to be in the Tokyo 2020 Olympics,” said PT. Commenting on the general surf conditions, PT said there’s plenty of surf for training; conditions not unlike they may encounter in Tokyo in 2020. “Well, on Hainan Island where the National Team training is based, there’s lots of breaks around the island, many yet to be discovered and uncrowded: reefs, points, rivermouths and beach breaks. We just need swells and at this time of year (winter), which is typhoon season, there’s a reasonable number of swells producing quality waves in the 3’ to 6’ range. Summertime tends to be pretty flat though.”

Surf Ranch.

“The main team are housed on the island and are receiving a government stipend and train full-time, along with trips like the recent one to California. And we will be coming to Australia in Jan-Feb,” said PT. Asked whether the Chinese Team could one day threaten teams like Australia or the USA, PT’s response was blunt. “That will take quite a long time: realise this is the first generation of Chinese surfers. Chinese surfers have yet to be surfing for a decade, unlike Australia and America which have 100-year histories in surfing. “It’s pretty exciting to be on the ground floor of helping to develop surfing in a country with the global impact of China it’s keeping me young!” enthused PT.

VOLCOM INC. SALES DISAPPOINT Kering reported revenues in its Sport & Lifestyle segment grew 15.9 percent on a currency-neutral basis as a 17.3 percent jump at Puma offset a decline at Volcom. Puma reported its results earlier separately. On a reported basis, sales in the Sport & Lifestyle segment increased 11.9 percent to €1.19 billion. However, Kering said in its statement “Volcom’s performance continued to be hampered by the challenges faced by specialist distributors in the US.”

WSL HOLDS GROUNDBREAKING TEST EVENT AT KELLY SLATER’S SURF RANCH The World Surf League (WSL) held a test event at Kelly Slater’s Surf Ranch in Lemoore, CA to evaluate the new technology as it pertains to performance, competitive format, broadcast and spectator interaction as well as overall experience. "Having the ability to replicate, even partially, the power and shape of ocean waves for anyone in the world, in any location and at any time is a truly magical thing,” said Sophie Goldschmidt, WSL Chief Executive Officer. “The WSL intends to learn a lot - how this technology can be applied to live competition, how the surfers perform, how waves are scored, how we cover in broadcast, the overall experience that we can create and what it feels like to witness this kind of surfing." “This is just a magical day, I can’t believe it,” said six-time WSL Champion Steph Gilmore. “Every single wave is so much fun and challenging and nerve-wracking. That was just so special!”

On-site were the WSL elite including KSWCO founder and 11X WSL Champion Kelly Slater (USA) as well as seven founding members of the sport of surfing: Peter Townend, Shaun Tomson, Wayne Bartholomew, Mark Richards, Ian Cairns, Randy Rarick and Fred Hemmings. “I’m just blown away by the whole project and to see it in real life is so amazing,” said Richards. “The wave is actually way bigger in real life that it looks on video. It’s been an incredible experience to be here and see the surfing.”

SENATOR NICK XENOPHON TAKES ON DECKERS OVER UGG Senator Nick Xenophon is hiring a flock of sheep for an extraordinary international protest against Deckers Outdoor Corporation’s headquarters in Santa Barbara this week, over the global rights to the Ugg boot name. Senator Xenophon will join Australian Ugg boot manufacturer Eddie Oygur in the fight against Deckers. Mr Oygur’s Sydney business, Australian Leather, is being sued by Deckers for millions of dollars for alleged breach of trademark. Senator Xenophon says this is a classic David versus Goliath battle where the little battler deserves to win. “Think of it like a version of the iconic movie The Castle,” he said. “Over $1 billion worth of Ugg boots are sold by Deckers around the world, their brand is Ugg Australia, their boots are made in China or Vietnam,” Senator Xenophon told Sky News. He argues Australia should protect the word Ugg because potentially thousands of jobs could be created if it could have that export industry. Deckers bought the rights to the name Ugg Australia during the 1990s, and now sells $1.5 billion worth of Ugg Australia boots a year. Mr Oygur's western Sydney factory is one of just a few remaining authentic Australian Ugg boot manufacturers, where once there were 40. "He's mortgaged everything he owns to fight this case in the US and we think Americans need to know what is happening to this little Aussie battler," said Senator Xenophon. Mr Oygur said Deckers had demanded all his stock be sent to the US to be destroyed. VIA AAP

“But the water is always tropical.” The Chinese National Team is a full-time occupation for Townend as well as seven men and five women, but there also a development squad.

17/

SUNRISE SURF SHOP WINS OAKLEY SURF SHOP CHALLENGE HISTORY

JAGUAR LAND ROVER MAKES PLASTIC SURFBOARD Land Rover is making its first foray into the ocean with the ‘Waste to Wave’ surfboard, created using recycled plastic derived from early clay design models.

Seven Regional Champion surf shop teams from around the U.S. traveled to Nicaragua to compete in the 2017 Oakley Surf Shop Challenge National Championships. Fourto-six-foot surf welcomed competitors at Playa Colorado’s where Sunrise Surf Shop became five-time National Champions. “This was the closest National Championships we’ve been a part of,” said Evan Thompson of Sunrise Surf Shop. “Every shop is stacked and was surfing really well in and out of the competition. We were really nervous during the final, competing against all the teams but especially HSS’ Brett Simpson and Brad Ettinger. We’re stoked to take the win back home to Jacksonville.” Originally conceived to provide a fun and competitive format for the hardcore surf shop riders, the SURFER Shop Team Challenge was one of the most popular and exciting Southern California contests of the early 1980s. Through the years the contest has evolved, with seven qualifying regional events around the country, culminating in a national championship in Bali, Indonesia for the first time in 2012. The underlying principles, however, have remained the same. The Oakley Surf Shop Challenge is still about giving back to the shops, the true backbone of the industry and the heart of the sport of surfing. Each year the competition level rises, the stakes become greater and the prizes become bigger. For full results check out surfshopchallenge.com

SURVEY SAYS NIKE IS LOSING ITS HEAT AND STREETWEAR IS ON THE RISE Piper Jaffray Companies, a leading investment bank and asset management firm, completed its 34rd semi-annual Taking Stock With Teens research survey, which highlights spending trends and brand preferences amongst 6,100 teens across 44 U.S. states. Since the project began in 2001, Piper Jaffray has surveyed more than 155,000 teens and collected nearly 40 million data points on teen spending in fashion, beauty and personal care, digital media, food, gaming and entertainment. “For the first time in years, we’ve seen the Nike share moderate as a preferred brand. Offsetting this weakness, we’ve seen an unexpected rise in trends like streetwear with Vans and Supreme gaining momentum. In addition, other brands such as adidas, Puma and New Balance have been capturing more mindshare as teens gravitate towards that 1990s retro look,” said Erinn Murphy, Piper Jaffray senior research analyst. Fall 2017 Key Findings; Overall Spending Behavior • Overall teen spending moved down 4.4% year-over-year, while parent contribution to teen spend is 67%, just below the longterm average of 68%. • Wallet shifts in fall 2017 include slight downtick for video games, slight uptick for clothing, and moderate downtick for food. • Food ticked down from 24% in spring 2017 to 22% in fall 2017, but remains larger than clothing at 20%.

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With an estimated 8 million tonnes of plastic dumped in oceans every year, taking hundreds of years to decompose, Jaguar Land Rover has strengthened its commitment to achieving its zero waste goal by creating a range of surfboards made wholly from recycled plastic. The surfboard was created in partnership with SkunkWorks Surf Co, a surf company with a focus on minimising environmental impact, and tested by the English Women’s Open Surfing Champion surfer, Lucy Campbell off the coast of Northern Ireland.

Rip Curl Canggu.

Apparel • Athletic apparel is moderating somewhat led by Nike, but there is no slowdown in athletic footwear. Apparel brand preference is shifting towards streetwear with brands like Vans and Supreme. • Nike, Ralph Lauren, Steve Madden, UGG (Deckers), Fossil and Michael Kors saw the largest declines among major brands. Technology Spending & Behavior • Snapchat is the preferred social media platform for 47% of teens using the platform – up 12% year-over-year. • 82% of teens expect their next phone to be an iPhone, which is up from 81% in spring 2017, and more importantly, the highest we have ever seen in our survey. • Teens who expect >50% of their future video games to be digitally downloaded increased to 50% from 45% in spring 2017 and 37% from two years ago. • Streaming continues to gain teen video share as preference for linear TV declined 2% since last fall. • Only 35% of teens listen to Pandora radio versus 49% last year as on-demand services such as Spotify, YouTube and Apple Music continue to gain share. • 23% of teens prefer to shop specialty retailers, which is down 3% year-over-year, while pure-play e-com tied its spring 2017 peak at 17% – up 2% year-over-year. • Teens increasingly prefer Amazon as their favorite website at 49% share – up 9% year-over-year. About the Survey The Taking Stock With Teens survey is a semi-annual research project comprised of gathering input from approximately 6,100 teens with an average age of 16.0 years. Teen spending patterns, fashion trends, and brand and media preferences were assessed through surveying a geographically diverse subset of high schools across the U.S.

euro news NEW RETAIL PARTNERSHIP BETWEEN SURFDOME & MAGICSEAWEED Following the acquisition of Surfdome by UK online retail group Internet Fusion Ltd, there is more news for Surfdome with the announcement that they will power and administer the Magicseaweed store on a global scale going forward. Just last month it was also announced that Magicseaweed had been acquired by Surfline, the same company behind www.buoyweather. com and www.fishtrack.com. According to a press release, Magicseaweed has entered into an exclusive license agreement with Surfdome, Europe’s largest online surf retailer, to power and operate the Magicseaweed store on a global basis. “Magicseaweed has always provided an efficient way for its users to investigate and purchase surf accessories and products” said Jeff Berg, CEO and Chairman of Magicseaweed’s parent company, Surfline. “This agreement with Surfdome will enable Magciseaweed to continue to meet our users’ needs in a way that is both relevant to surfers, and under terms that align our interests.” The store customer experience will benefit from Surfdome’s highly efficient fulfillment capabilities and excellent customer care, and Surfdome’s significant infrastructure will enable the Magicseaweed Store to reach customers in new geographies as well as better support existing European customers. “This is a great relationship for Surfdome and Magicseaweed,” said Surfdome Founder and Director, Justin Stone. “Each party can focus on its core capabilities, whilst benefiting from each other’s strengths. Our suppliers have been very supportive of this partnership and customers will ultimately benefit from the range of products and service levels Surfdome is able to deliver.” The Magicseaweed store will remain focused on selling core surf hardware like surfboards, fins, leashes, wetsuits and board bags, and carry core brands and exclusive product lines.

indo news RIP CURL OPEN IN CANGGU BALI Rip Curl opened its latest retail shop, amongst the bars and restaurants and main shopping hub of the Love Anchor Complex in Canggu, Bali. The new store boasts floor to ceiling displays and two floors of approximately 220 square meters of retail space. There will be plenty of room to consider the latest Mirage Boardshorts collection, Rip Curl’s award winning My Bikini Swimwear collection and all the other quality products that have made Rip Curl Bali’s premium international surf brand for decades. More than a flashy showroom, the Canggu store is a hardcore surf shop with the entire second floor featuring the finest range of high performance surfboards on the market including DHD, Lost/Mayhem, Firewire, Slater Designs, Pyzel and a collection of hand-shaped Single Fin Hull and Flex-tail designs. The store includes an impressive array of fins by Futures, FCS and all the other accessories a core surfer needs. The Canggu store gives special attention to pooled lighting and in-wall video displays, mixing a modern edge with a time-honored look. “Canggu is an amazing part of Bali, with great waves and a vibrant scene on land. We're stoked to be part of the energy up there with our new core store.”, said Mick Ray, CEO Rip Curl South East Asia.

FEATURE ARTICLE / WORDS ASB MAGAZINE

Better Known ASB TAKES A GLIMPSE INTO THE EVOLVING FUTURE OF OUTERKNOWN Since its release in 2014 , Kelly Slater’s apparel line Outerknown has stood for something different in the marketplace – sustainability and ethical production, no matter what the cost. While those lofty aims have been met thus far, the resulting price points have confined the market to a small sector willing to pay higher prices. But all that might be about to change, with an affordable range coming. And the pitch, called Project Nomadic, is aimed squarely at the travelling surfer. ASB spoke to Outerknown CEO Mark Walker about the much-anticipated launch.

ASB: Can you tell us a little about your experience recently at Surf Ranch? MW: Awe and gratitude...the wave and the surfing experience itself was insane and to witness the best surfers on the planet ripping it apart and sharing their stoke with all was mind blowing. The whole vibe was amazing. I left wanting more and can’t wait to see what happens with the WSL and the KSWC in the near future. ASB: Did Kelly fly you and the global OK crew in for this? MW: Kelly hosted us and the whole crew were so generous in so many ways. The event was brilliant - so much excitement, tension and energy. Witnessing the future unfolding first-hand was pretty special. The warm up sessions were insane: John John’s ally-oop five metres from my face was spectacular, Steph’s 14-second barrel hanging five on her shorty was pure class, watching MR, Rabbit, Pottz, Cairns, Rarick, Thomson and other legit legends stoking out like little groms in their session was magic. So much goodness happening there – can’t wait for these to roll out. ASB: Can you speak about Outerknown’s initial sell-through in the US? Initial reports are all super-positive. I know there’s been a few stores already re-ordering product and that’s really encouraging for us in Australia. MW: We (Outerknown) and our retail partners are very excited by what we’re seeing and hearing from our customers. We took the right amount of time to launch into this market in a meaningful way. Price point, strategic retail partners, branding and product assortment all had a huge part in the success of the initial sell-through and launch of Project Nomadic. ASB: Who are some of the key retailers you’re seeing with the new range, and what are their reactions? MW: We took a quality vs. quantity approach with the launch. Project Nomadic is a celebration of our deep roots founded in surf culture, and we aligned with retail partners who embrace and embody this nomadic lifestyle. We launched in 37 locations globally and went after the most iconic surf stores by location.

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ASB: The technical boardshort you'll launch in Jan/Feb (awesome boardies, by the way) - is this the Kelly short? And will this will be the start of your launch into the Australian surf market? MW: We stepped back and asked ourselves, “What are we known for?” We want to be a destination brand for anyone looking for quality, sustainable and stylish swim. We will have four different swim styles for different customers types and end uses. The pinnacle of the four will be a high performance boardshort, designed for high performance surfers, professional or not. If you are fortunate enough to work with the greatest surfer of all time, you should design THE short that he wants, and will wear… ASB: Can you speak about why Kelly is putting his signature name to this piece? MW: From inception, we had Kelly top of mind. His input was crucial to developing and designing a product that could be worn by athletes who surf at his level. Kelly’s wear test feedback has been instrumental in executing a product that both he and Outerknown are extremely proud to debut. It seemed appropriate to name it “his” short. ASB: What are some of the price points of key items from Nomadic? MW: Tees at $70, shirting at $140, shorts $120. ASB: Will there be a parallel line in DJ's online with Iconic, etc? In other words will the line be segmented across distribution? MW: We’re still working with these important retailers, however there will be some segmentation, particularly with the fashion and higher-price pointed collection pieces. Our hope is to eventually bring these items into the surf market: we know surfers are coming to find us, we’re just not sure the surf stores are ready for higher-priced items yet.

“Kelly’s wear test feedback has been instrumental in executing a product that both he and Outerknown are extremely proud to debut.” Mark Walker

Traveling to Tavarua island is no easy feat. Kelly gave us some insight on what being on the road as a competitor was like and we designed thoughtful and practical gift bags for all the competitors. It wasn’t just a bunch of schwag, they were things of necessity like a hat, sunscreen, a book, a power converter, etc… a true gift bag. We engaged Kelly on the content side using Facebook Live and Outerknown.com. We got his thoughts on the contest and stories like the one about the giant clam rehabilitation. ASB: You’ve committed to the event for the next three years. What are the future plans for OK within the APAC region?

ASB: What are the lessons learned from the first drop of OK? Will you drop ship and when? MW: The biggest lesson I’ve learned is how hard it is to make a truly socially and environmentally sustainable piece of clothing. It’s a sad reality, how socially and environmentally damaging traditional clothing manufacturing is and has been. Outerknown have maintained very high standards and in doing so the brand’s price architecture has been high and inconsistent. Fortunately, we have experienced continued growth and support and this is helping us bring down our cost and we will continue to do this as we grow. ASB: OK took the extraordinary step of sponsoring the OK Women’s Pro, despite not offering a women’s apparel range. Is a women’s line on offer now or in the immediate future? MW: The short answer is yes. We are all beyond thrilled that Outerknown women’s is on the roadmap, so get excited ladies! Outerknown women’s is still in its early stages of development. Similar to the thought process behind the launch of Project Nomadic, we are taking the appropriate amount of time to deliver a well-designed, executed and sustainable collection. ASB: Congratulations on sponsoring the OK Fiji Pro, can you give us a little more background around that decision? MW: We view ourselves as a sustainable clothing brand birthed from surf culture. When the opportunity to take the title sponsor role presented itself, it just felt right. Fiji is one of Kelly’s favorite waves and he has a deep personal connection with the people of Tavarua. While surf is a core pillar of our brand, we don’t view ourselves as just “another” surf brand. Thus we approached Fiji as an opportunity to show up un-traditionally. Change the game. Redefine what title sponsor looks and feels like. We were heavily involved in the creative process around the contest and used our digital platform to tell the story of the island, the people and the culture…not just the scoreboard. As for next year, I’ll get back to you once we hear what plans the WSL has for 2018. It’s going to be interesting to see what the future brings here. It’s no secret Kelly loves Fiji but he does have special connections all over the world.

MW: From an event sponsorship standpoint, we are more than content with Fiji. We are stepping up our game on the digital front and hope to be able to reach more people in the APAC region via Outerknown.com. ASB: Can you outline your launch plans into the surf market, for example via the Nomadic range? MW: Our goal is to design an assortment of products with the right mix of style, quality, and price while remaining true to what Outerknown stands for: people and the planet. This assortment will live on Outerknown.com. We will then work with our partners to determine what collections can be curated from the master assortment to be sold in retail locations with a specific target customer in mind. We always strive to personalise the experience based on who and where the consumer is engaging with the brand. ASB: Given the highly competitive landscape and dominance of major surfwear brands, are you targeting surf stores? Who is the OK customer? MW: Sustainability for All is our mantra. Making amazing items that are made the right way for people and the planet will continue to be our mission. Aligning with strategic surf stores makes Project Nomadic more accessible. Who made it and where is it coming from? I personally have spent decades in the apparel retail word and usually revenue and sales are the primary goals, all at the expense of the people and planet. Our goal is to generate consumer awareness around the direct effect of fast, disposable fashion. Although the nomadic surf culture will always be at our core, we want everyone to feel like they can wear Outerknown, even if they don’t surf. ASB: Supply chain transparency and ethical responsibility are high on the agenda for OK. Are you seeing a shift in consumer focus towards these brand values? MW: Absolutely. Outerknown made the decision to open its complete supply chain for all to see and the comments we get from the public are very encouraging and supportive.

ASB: Can you outline some of the brand activations around the OK Fiji Pro? There’s a drink bottle, WSL merchandise, video insights with Kelly…what else? MW: Last year we were involved in the creative of the look/ feel of the judges’ boat, video towers and other WSL locations at the event. We supplied an OK FIJI Pro T-shirt that was only available to people who were on the island. It’s now become a little bit of a legendary piece, if you are one of the lucky ones to own the shirt. From a product standpoint we took some of our core items and made them feel ‘Fiji’ by incorporating images and the contest lockup. With our mission of sustainability, we felt the best giveaway was a water bottle so people would carry less plastic around and create less waste. We didn’t want to create more waste or something people didn’t need.

21/

ASB MULTI MEDIA METER 2017

THE PRINT MEDIA METER SHOULD BE USED AS A GUIDE ONLY TO SURFERS’ AND BRANDS’ IMPRESSIONS IN THE FOLLOWING MAGAZINES OVER THE SAMPLE PERIOD OF JANUARY THROUGH UNTIL DECEMBER (2017) MAGAZINE COVER DATES. TRACKS MAGAZINE AUSTRALIA’S SURFING LIFE MAGAZINE SURFING WORLD MAGAZINE STAB MAGAZINE

The Pointscore Legend

Surfers Cumulative advertising and editorial impressions using the point score legend opposite.

Cover Poster (pull-out) Three-page action gatefold Double page spread Full-page plus column Full-page Half-page Quarter-page Less than Quarter-page

Brands First past the post. To qualify company logos must be clearly legible to the average person. Corporate advertising bearing more than one company logo earns one impression. Brands accrue one point for every legible impression including all editorial and advertising. Advertising & Editorial Ratios Magazines are ranked in order of highest editorial content percentage.

20 points 20 points 15 points 10 points 7 points 5 points 2 points 1.25 points 1 point

Media Meter BRANDS #SOCIAL_MEDIA_METER

MAGAZINES #SOCIAL_MEDIA_METER

BRAND MAGAZINE

Go Pro - 25, 718, 141 Vans - 18, 734, 738 Nikon - 13, 375, 673 Quiksilver - 7, 485, 612 Hurley - 6, 276, 463

TOTAL

STAB

1,359,186

734,000

33,100

2,126,286

350,506

135,000

977

486,483

Surfing Life

131,262

142,000

77,600

219,600

Tracks

257,198

102,000

32,800

134,800

MAGAZINES

Oakley - 5, 084, 290 Billabong - 4, 832, 983 Volcom - 4, 414, 689 Rip Curl - 2, 594, 664 Nixon - 1901390 0

5000000

10000000

15000000

20000000

25000000

ASB#80

PAGES

%AD

%ED

Surfing Life 338

114

21.05

78.95

Tracks 562

116

27.59

72.41

SW 390

116

21.55

78.45

30000000

BRANDS PRINT MEDIA METER

BRAND LEADERS

BRAND

Rip Curl - 84 Billabong - 58 Quiksilver- 44 Hurley - 40 Channel Island Surfboards - 37 Globe - 32 Monster Energy - 30 O’Neill - 29

RIP CURL PRINT MEDIA BRAND #1

STAB MAGAZINE SOCIAL MEDIA BRAND #1

But as an opener, here’s two things that had me scratching my head a little:

have a quick look at what’s happening there. A couple of quick snapshots: in the race for the top, Quiksilver rule the roost with 1.6m followers & Hurley are close behind at 1.5m. From what I can see neither of these brands is heavily into the regional/store account vibe.

Volcom - 28 Reef - 25 0

100

Social Media Stats AS A LONG-TIME READER, FIRSTTIME WRITER FOR ASB, I HAVE A MISSION IN MIND. I’M AIMING TO HELP GIVE SOME CLARITY AROUND THE SOCIAL SPACE FOR US ALL. WITH THAT IN MIND, I’LL START WITH SOME BASICS BEFORE EVOLVING THE IDEAS IN FUTURE ARTICLES

First things first: let’s hit the brands with who have the really large followings — GoPro, Nike, and Vans. These three rule the roost, with totals well above the rest of the field. To be fair though, they’re also brands which have the ability to play across multiple demographic & psychographic profiles and can reach bigger numbers. Below them, we have the big boys of the surf industry — Billabong, Rip Curl, Volcom, Oakley, Quik & Hurley. This is where the juice really is: all these guys fighting it out around the same numbers, hovering between 3 and 6 million total followers. Moving forward, I want to really try to squeeze out some fun insights about their social presence.

22/ Australian Surf Business Magazine issue #80

1/ I thought Reef, Nixon, and Globe, given their presence, would have had larger followings. Yet they have work to do to catch the front-runners; and 2/ There are surprises to be found in Da Kine, Spy & RVCA. Da Kine and Spy because I didn’t think they’d have numbers like they do, and RVCA because I thought their numbers would be bigger. Half the field have 500k or more following on them on Facebook, and Twitter is, well, Twitter. It feels like we should shift our focus to Instagram &

Quiksilver’s feed, dare I say, looks the best and has a good balance of riders and content, and throws out some solid aspirational vibes. Hurley’s feed is based around surfing (mainly), art and events, and has a strong feeling of ‘happening right now’ through it. More often than not you see JJF, followed by the rest of the team.

ASB MULTI MEDIA METER 2017

#SOCIAL_MEDIA_METER USING THE WSL TOP ATHLETES AS OUR BENCHMARK, WE’VE COMBINED BOTH THE MENS WSL #TOP34 AND WOMEN’S #TOP17 TO DETERMINE THEIR OVERALL SOCIAL MEDIA PROWESS. WHILST THIS LIST IS BY NO MEANS INDICATIVE OF ALL SURFERS' SOCIAL MEDIA PERFORMANCES, USING THE WSL AS THE PINNACLE OF THE SPORT'S ELITE, WE SEE THIS LIST AS A GUIDE ONLY.

If you believe there’s a surfer outside the WSL elite who deserves to be on our list e.g. Alana Blanchard (2.99m), then write to us. Using our print media meter top performers we’ve tallied surf brands or brands operating in surfwear distribution as the baseline for our social media list. Using the social media links from each brands Australian website homepage, we’ve combined their Facebook ‘likes’ as well as Instagram and Twitter ‘followers’ to determine our overall social media top performers. If there’s a brand that deserves to be on the list, write to us and let us know. If the link to your social media site isn’t the right one or there’s an alternative social media page for your brand we should be monitoring, also let us know.

#WCT SURFERS SOCIAL MEDIA AT SEPTEMBER

#SOCIAL MEDIA METER (ALPHABETICAL ORDER) NB NO TOTAL OR RANK DUE TO THE MIX OF GLOBAL AND REGIONAL SOCIAL MEDIA CHANNELS. SHOULD BE USED AS A GUIDE ONLY. TABLE CORRECT AT OCTOBER. TABLE REPRESENTS THOSE BRANDS ON THE PRINT MEDIA METER ONLY. NOT EVERY BRAND.

ADVERTISING

EDITORIAL

SURFER

Gabriel Medina - 5, 735, 442 Kelly Slater - 3, 772, 229 Mick Fanning - 1, 595, 748 Jordy Smith - 1, 452, 120 Coco Ho - 1, 351, 782 Sally Fitzgibbons - 1, 316, 617

TOTAL

ATHLETE

TOTAL

Mick Fanning

68.00

Craig Anderson

296.50

Gabriel Medina

50.00

Mick Fanning

289.75

Monty Tait

50.00

John John Florence

226.50

Matt Wilkinson

44.00

Chris 'Chippa' Wilson

222.00

Sean Mawson

41.00

Kelly Slater

187.50

Josh Kerr

35.00

Dane Reynolds

147.00

John John Florence - 1, 191, 127

Albee Layer

32.00

Ozzie Wright

143.75

Julian Wilson - 1, 148, 327

Mikey Wright

30.00

Taj Burrow

140.50

Stephanie Gilmore - 961, 217

Julian Wilson

30.00

Dion Agius

135.25

Filipe Toledo- 954, 296

Jack Freestone

26.00

Jordy Smith

130.00

1000000

ATHLETE

2000000

3000000

4000000

5000000

6000000

SURFER LEADERS

SURFER PRINT MEDIA METER SURFER

Mick Fanning - 350.75 Craig Anderson - 264.50 John John Florence - 220.50 Chris 'Chippa' Wilson - 217.00 Kelly Slater - 187.50 Mikey Wright - 159.50 Jordy Smith - 142.00 Dion Agius - 138.25

MICK FANNING PRINT MEDIA METER #1

Noa Deane - 138.00 Ozzie Wright - 133.75 0

100

150

200

Rip Curl, who have accounts all the way down to store level, are doing a pretty good job with regional accounts so let's have a quick peek at their two main accounts — Australia (490k) and the US (900k). Both run fairly similar content until it gets seasonal: right now it’s all summer vibes and blue water on the Aus channel whereas it’s a little more rubbery on the US. Billabong (1.4m), who also have a number of accounts happening (Australia is at 164k), run content that seems to be a little more sporadic, less seasonal and more ‘what’s happening right now’ for them.

250

300

350

GABRIEL MEDINA #SOCIAL_MEDIA_METER #1

400

On a final note, regional accounts are a challenge and odds on a few of you are calling it out right now. We’ll be working towards trying to find a solution, or a work-around, for that before the next instalment. Happy Tapping :) Lincoln Eather

'Welcome to the ASBMAG team' Lincoln Eather. Lincoln is co-founder of Empire Ave, an Australian-centric content platform whose core focus is on art, fashion and tech-product developments across contemporary mens fashion and beach lifestyle. Lincoln Eather is a branding, marketing and social media strategist known for creating renewed value, life and traction for brands that intersect function and lifestyle. Head over to #ASBMAG.com for full social media results and analysis, including expanded coverage on the top 10 posts on Instagram for the month from Quiksilver.

23/

P L I M P T O N

W I L D L I F E

P O L A R

fresh

OAKLEY RAMP Code: 482377AU Colourway: 01K-Jet Black RRP: $79.95 Available: Now Description: Four-way stretch, 19”performance board short with back welded pocket.

PATAGONIA LONG SLEEVED COTTON/POLY RESPONSIBILI-TEE Code: 39042 Colourway: DFTG – Drifter Grey RRP: $69.95 Available: Now Description: Regular-fit, long-sleeved T-shirt made with a 50% recycled cotton/50% postconsumer recycled polyester fabric; screen-printed with PVC- and phthalate-free inks. Fair Trade Certified™ sewing.

PATAGONIA W PROW BOMBER VEST Code: 28115 Colourway: SMDB smolder blue RRP: $199.95 Available: Now Description: A bomber-style vest made of supersoft 100% recycled nylon satin woven with a DWR (durable water repellent) finish and insulated with warm 600-fill-power traceable down.

26/ Australasian Surf Business Magazine issue #80

GLOBE LAII Code: GBLAII Colourway: Olive/Black RRP: $99.99 Available: March Description: Evolution of the game changing surf casual, the Los Angered. Features Shocked insole and Globe’s Super-V outsole.

CREATURES OF LEISURE NAVAJO SOX Code: CSNS8060CYNY Colourway: Cyan Navy RRP: $54.95 Available: Now Description: The Navajo Stretch Sox are designed for simple board protection from scratches, dirt, sand UV exposure. Features include: Padded nose panel, drawstring with barrel lock closure and re-usable mesh packaging, perfect for storage of wax and beach essentials.

RIP CURL MF COACHES JACKET Code: CJKCX1 Colourway: Black RRP: $119.99 Available: April Description: A signature Mick Fanning piece, designed by the 3x World Champion himself, the MF Coaches Jacket is the must-have cold weather item this coming winter. Made with a jersey lined body, a MF felt badge and stud front closure.

SALTY CREW DEEP SEA WALKSHORT Code: 115601 Colourway: Camo RRP: $89.99 Available: March Description: 20” outset, dual cargo pockets, plier pockets, 80% polyester / 20% elastane.

OTIS LIFE ON MARS Code: 21-1806 Colourway: Woodland Matte/ Tropical Brown RRP: $189.95 Available: Now CARVE THE GUIDE Code: 2521 Colourway: Matt Black RRP: $59.99 Available: Now

RIP CURL ON CORD JACKET Code: GJKCO1 Colourway: Navy RRP: $129.99 Available: April Description: Fashionable and functional, the On Cord Jacket is made of a cotton stretch cord and is detailed with a sherpa lining, for extra protection from the cold. Everyone’s new winter favourite.

SALTY CREW TAIL CHASING HOODIE Code: 311703 Colourway: Black RRP: $89.99 Available: February Description: Chest, back and sleeve graphics, 80% Cotton / 20% Polyester.

DRAGON BAILE (MICK FANNING SIGNATURE) Code: 35075-003 Colourway: Matte Black H2O Floatable / Smoke P2 Polarised RRP: $230.00 Available: Now Description: Mick Fanning’s Signature Sunglass brings a generous dose of style to your everyday look, marking the latest in the long-time partnership between Dragon and the 3x World Champ.

DRAGON FAKIE Code: 35060-010 Colourway: Matte Black & Red / Smoke RRP: $180.00 Available: Now Description: Pushing the style envelope once again, if you want to make a statement, Dragon’s Fakie is the perfect sunglass with the style and features to spare. GLOBE YES X GLOBE RRP: $24.99 - $999.99 Available: Now Description: An ongoing functional outdoor product collaboration for on and off the snow.

ELECTRIC KNOXVILLE PRO Code: EE16101020/884932337911 Colourway: Matte Black/OHM Grey RRP: $120.00 Available: Now

O’NEILL BAHIA LS SPRING 2MM Code: 4282OA Colourway: Indigo/Navy/White RRP: $169.99 Available: Now

VONZIPPER MAXIS Code: SMSMAXPDC Colourway: Black Satin Gold Chrome Wildlife RRP: $219.99 Available: Now

QUIKSILVER HIGHLINE AIRLIFT RRP: $1299.00 Available: Now Description: Developed in collaboration with Aqua Lung, the global leader in professional and recreational scuba diving equipment, the QUIKSILVER X AQUA LUNG INFLATABLE VEST is the culmination of two year’s development and represents the cutting edge of big wave surfing safety technology.

CREATURES OF LEISURE WRAP RAX- SINGLE SILICON RAP Code: ASW8001BKOR Colourway: Black Orange RRP: $79.95 Available: Now Description: The Creatures of Leisure Auto products are made using the highest quality materials available. From silicon-encased corrosion resistant buckles to our heavy-duty UV treated and colour-fast webbing and pad materials. Each piece has been carefully engineered and designed to be durable, functional and aesthetically pleasing.

OBFIVE SUMMER VAYCAY CRUISER Code: OB5SVC RRP: $179.95 Available: Now Description: Bamboo veneer deck. 5” Silver polish truck, 14mm riser pads, 65mm 78A wheels. Abec 7 chrome bearings. Die cut grip tape . Length 28” x width 8”

OBFIVE SNAKE CHARMER CRUISER Code: OB5SCC RRP: $189.95 Available: Now Description: Olive wood veneer deck.v 5” OBfive matt black trucks, 14mm riser pads, 65mm 78A wheels. Abec 7 chrome bearings. Die cut grip tape . Length 28” x width 8”

VONZIPPER FAIRCHILD Code: SJJFAIRGC Colourway: Rose Gloss/Rose Gold Chrome RRP: $159.99 Available: Now

GLOBE GEMINON XL Code: 10525324 Colourway: Bamboo/Half cut Lit RRP: $389.99 Available: Now Description: Continuous rocker with subtle nose and tail. LED Light-up wheels powered by Sunset. Artwork by Gina Kiel.

GOPRO HERO6 Colourway: Black RRP: $749.95 Available: Now Description: With the GoPro HERO6 Action Video Camera, capturing breathtaking footage while out adventuring has never been easier. Capture smooth images in 4K60 and 1080p240 video, and with quick and seamless upload speeds you can share your experiences with more convenience. New GP1 processor that has been optimised to provide your GoPro with superior image quality. Waterproof to a depth of 10m without housing, and new wind noise reduction. Voice control system allows for hands-free operation of specific tasks such as, “GoPro shoot burst.”

O’NEILL HYPERFREAK LS CREW 1.5MM Code: 4640 Colourway: Black/Black/Black RRP: $179.99 Available: Now 27/

buyers’ guide Eyewear

ELECTRIC DUDE Code: EE16701020/884932341680 Colourway: Matte Black/OHM Grey RRP: $100.00 Available: Now

DRAGON BAILE (MICK FANNING SIGNATURE) Code: 35069-004 Colourway: Matte Black /Smoke P2 Polarised RRP: $220.00 Available: Now

ARNETTE CHENGA Code: AN4240 01/55 Colourway: Matte Black/Blue Mirror Lenses RRP: $109.95 Available: Now

NIKE SB LEDGE Code: EV1058 074 Colourway: Matte Cool Grey/Cold/ Teal Lens RRP: $160.00 Available: Now

SPY+ LOMA Code: 873498759863 Colourway: Dark Tort/Matte GoldHappy Grey Green RRP: $189.95 Available: Now

QUIKSILVER BRIGADE Code: EQYEY03070 - XKKG Colourway: Matte Black/ Glass Polarized Green RRP: $189.99 Available: Now

RIP CURL BRIGHTON Code: VSA314 Colourway: Milk tortoise RRP: $149.99 Available: Now

CARVE THE GUIDE Code: 2521 Colourway: Matt Black RRP: $59.99 Available: Now

LIIVE KERRBOX Code: L0612A Colourway: Glow Tort RRP: 49.95 Available: Now

ELECTRIC ZOMBIE S Code: EE16801020/884932341901 Colourway: Matte Black/OHM Grey RRP: $100.00 Available: Now

OTIS MIDNIGHT CITY Code: 14-1702 Colourway: Matte Dark Tort/Rose Gold RRP: $189.95 Available: Now

OAKLEY CROSSRANGE PATCH Code: OO9382-05 Colourway: Matte Grey Ink/Prizm Ruby RRP: $239.95 Available: Now

28/ Australian Surf Business Magazine issue #80

otiseyewear.com

L I V E

T H R O U G H 33.830296ยบ N

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-116.545292 W

L I T T L E

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buyers’ guide Eyewear

LIIVE LAGUNA Code: L0459C Colourway: Revo Black/Xtal Matt Beer RRP: $59.95 Available: Now

OTIS NON FICTION Code: 99-1703 Colourway: Matte Black/Cool Grey RRP: $189.95 Available: Now

NIKE SB CURRENT Code: EV1057 002 Colourway: Matte Black/Pewter/ Amber Lens RRP: $170.00 Available: Now

ARNETTE DWEET D Code: AN3075 696/87 Colourway: Black/Grey Lenses RRP: $139.95 Available: Now

ROXY RAGDOLL Code: ERJEY03053 - XKKS Colourway: Matte Black/ Grey RRP: $129.99 Available: Now

SPY+ PISMO Code: 873501779355 Colourway: Matte Black/Rose GoldHappy Bronze Fade RRP: $189.95 Available: Now

RIP CURL MYSTO COMBINE Code: VSI310 Colourway: Black RRP: $139.99 Available: Now

CARVE SANTORINI Code: 2600 Colourway: Champagne Iridium RRP: $69.99 Available: Now

OAKLEY CROSSRANGE SHIELD Code: OO9387-02 Colourway: Matte Black/Prizm Ruby RRP: $239.95 Available: Now

DRAGON MONARCH H2O FLOATABLE Code: 34876-041 Colourway: Matte H2O Floatable/ Smoke P2 Polarised RRP: $220.00 Available: Now

VONZIPPER DITTY Code: SMPDIPPSV Colourway: Black Satin Wildlife Polar Lens RRP: $209.99 Available: Now

30/ Australian Surf Business Magazine issue #80

VONZIPPER LESMORE E Code: SMSLESPDC Colourway: Black Satin Gold Chrome Wildlife RRP: $219.99 Available: Now

zombie s @lewiebuddons by @harrymarkphoto

contact :

Peter Dodd I Sales and Operations Manager 0438 690 162 02 6680 9886 pete@sidelife.com.au SIDELIFE.

Mr. Simple / Simple Watch Co / Herschel Supply Co. / Electric

5 Fern Place, Byron Bay, Australia

buyers’ guide Winter Wetsuits

RIP CURL FLASHBOMB PLUS ZIP FREE Code: WSM6QF (4/3), WSM6PF (3/2) Colourway: Black RRP: $799.99 (4/3), $749.99 (3/2) Available: February

XCEL DRYLOCK-X 3/2 Code: MC32DRP7 Colourway: Black outside, inside exclusive 'Celliant Black' RRP: $649.99 Available: February

OCEAN & EARTH LADIES BACK ZIP STEAMER Code: SLWE08 Colourway: Charcoal RRP: $349.00 Available: Now

ROXY 3/2 POPSURF FZ GBS Code: ERJW103036 Colourway: Pop Surf BTE0 RRP: $429.99 Available: February

BILLABONG SALTY DAZE – 302 CHEST ZIP FULL Code: 6785830 Colourway: Tribal RRP: $319.99 Available: March

O’NEILL PSYCHOFREAK Style: PsychoFreakFUZE Fuze 3X2MM 3x2mm Code: Code: 4959 4959 Colourway: Colourway: Black/Black/Black Black/Black/Black RRP: RRP: $649.99 $649.99 Available: Available: February February

RIP CURL WOMEN’S FLASHBOMB Style: Women’s Flashbomb CHEST ZIP Chest Zip Code: Code: WSM7FG WSM7FG (4/3), (4/3), WSM7ES WSM7ES (3/2) (3/2) Colourway: Colourway: Blue Blue RRP: RRP: $699.99 $699.99 (4/3), (4/3), $649.99 $649.99 (3/2) (3/2) Available: Available: February February

ADELIO DELUXE CONNOR Style: Deluxe Connor3/2 3/2 Code: 32CDS16 Code: 32CDS16 Colourway: Colourway: Black/Forrest Black/Forrest Green Green Logos Logos RRP: RRP: $449.00 $449.00 Available: Available: April April

PATAGONIA R2 YULEX FRONT ZIP FULL SUIT Code: 88438 Colourway: Black RRP: $699.95 Available: March

PEAK X-DRY 3/2 CHEST ZIP Code: PK632M Colourway: Black RRP: $349.99 Available: February

32/ Australian Surf Business Magazine issue #80

The Surf Series By O'Neill Womens Australia

WELIVEINTHEOCEAN

buyers’ guide Winter Wetsuits

TRM WETSUITS SAMURAI SISTER 3/2 STEAMER CHEST & BACK THERMO BARRIERS Code: TRM5 Colourway: Black/Mulberry/ Leopard RRP: $635.00 Available: Now

JETPILOT THE CAUSE MENS 3/2MM FULLSUIT Code: JA8130W Colourway: Black/Char RRP: $159.99 Available: March

O’NEILL PSYCHOTECH FUZE 3X2MM Code: 4988 Colourway: Black/SGlass/ DBlue RRP: $499.99 Available: February

BILLABONG FURNACE CARBON COMP – 302 ZIPPERLESS Code: 9783892 Colourway: Black Heather RRP: $499.99 Available: February

PEAK CLIMAX PRO 3/2 ZIP FREE Code: PK630M Colourway: Black RRP: $274.99 Available: February

PATAGONIA R3 YULEX BACK ZIP FULL SUIT Code: 88442 Colourway: Black RRP: $799.95 Available: March

OCEAN & EARTH ZERO ZIP 3/2MM STEAMER Code: SMWE16 Colourway: Charcoal RRP: $450.00 Available: Now

QUIKSILVER 3/2 QUIKSILVER ORIGINALS MONOCHROME SERIES Code: EQYW103053 Colourway: Navy RRP: $429.99 Available: February

JETPILOT THE CAUSE LADIES 3/2MM FULLSUIT Code: JA8104 Colourway: Navy/Sky RRP: $149.99 Available: March

XCEL WOMENS AXIS 3/2 Code: WT32AX17 Colourway: Black RRP: $269.99 Available: February

34/ Australian Surf Business Magazine issue #80

W W W . C R E AT U R E S . C O M . A U | # c r e a t u r e s c o u n t r y

SILICON BUCKLE COVERS

NEW

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buyers’ guide Electronics

GOPRO Style: Bite Mount Code: ASLBM-001 RRP: $49.95 Available: Now Description: This versatile bite mount with an easy-to-spot float is ideal for capturing hands-free POV footage and more. Plus, the built-in mounting buckle slides into any compatible GoPro mount.

GOPRO Style: Shorty Code: AFTTM-001 RRP: $59.95 Available: Now Description: A portable mini extension pole and tripod with a sleek, subtle design that makes it the perfect little camera partner for all your on-the-go activities.

3SIXT Style: Aramid case for iPhone X RRP: $49.95 Available: Now Description: Five-times stronger than steel, the 3SIXT Aramid case is made from 100% Dupont Kevlar® fibre offering extreme protection in the thinnest form.

3SIXT Style: Ultra HD Wi-Fi Sports Action Camera RRP: $179.95 Available: Now Description: Designed for active families, the adventurous, and sportscrazy, this camera is purpose built to capture the adrenaline that fuels our unforgettable moments.

3SIXT Style: 30 Piece Action Camera Accessory Pack RRP: $49.99 Available: Now Description: Everything you need to get the best out of your 3SIXT Sports Action Camera.

DAKINE Style: School Case Code: 08160041 Colourway: Tabor RRP: $24.99 Available: Now Description: Holds all your writing and learning utensils into one handy zippered compartment. Also great for managing cables, chargers- any of the loose stuff.

36/ Australian Surf Business Magazine issue #80

GOPRO Style: The Handler 2.0 Code: AFHGM-002 RRP: $49.95 Available: Now Description: A floating grip for handheld shots in and out of the water. Perfect for selfie, POV and follow footage.

SPEAQUA SOUND CO Style: The Barnacle Plus Code: BP1010 Colourway: Tidal Blue (Balaram Stack Pro Model) RRP: $99.00 Available: Now Description: World's first functionally waterproof, floatable,Bluetooth speaker with 4GB built-in memory and suction cup. Designed to go where other speakers can't, no phone required! speaqua@ multisportimports.com.au

SKULLCANDY Style: HESH 3 Colourway: Black RRP: $219.95 Available: Now Description: 22 hours of battery life with Rapid Charge technology, delivers 3 hours of additional listening after just 10 minutes of charging. multi-foldable design houses 40mm drivers, an integrated digital amplifier, and noise-isolating memory foam ear cushions for a highly refined acoustic experience. Complementing the integrated microphone and call, track, and volume control buttons, audible voice prompts for low battery and pairing assistance create a user-friendly experience.

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Only available at select retailers with the purchase of HERO6 Black or HERO5 Black. While supplies last.

BRANDSCOPE – Beyond Thunderdome.

COULD AN ONLINE PLATFORM SPELL THE DEATH OF THE ROAD WARRIOR? A few years from now, in the not-toodistant future, surf retail is teetering upon an apocalyptic breakdown thanks to a cyber-attack known as ‘Black Monday’ and we look back fondly at an analogue world of catalogues and Road Warriors ruling the information superhighway… Okay, maybe we’re over-dramatising here, but the road blocks in bringing a new technology to the forefront of an industry are sometimes as just as far-fetched as a Hollywood blockbuster. Thanks to a $330,000 Commercialisation Australia grant and the perseverance of three friends Simon Blockey, Bryan Heenan and David Hine, Brandscope now sits on the verge of breaking old traditions and embracing new ways of doing business - not just within the surf industry but in fashion, lifestyle and other industry sectors. Online ordering platforms aren’t new to the industry, almost a decade ago HUB360 launched in the USA as a B2B marketplace for the action sports industry. We reached out to the founders of that platform for this article but ultimately were left with a cold trail. It’s a matter of fact that platform failed but there’s evidence that the platform was clearly ahead of its time. While the market in Australia remains fragmented, the efficiencies presented by one unifying ordering platform have meant that Brandscope now has over 5,000 active users in Australia/NZ and was nominated by 80% of surf and board sports retailers as the best digital platform in a recent independent industry survey. ASB Magazine sat down with founder Simon Blockey to ask the tough questions and find out if he’s really all about saving trees… and whether Brandscope might actually spell the death of the Road Warrior.

38/ Australian Surf Business Magazine issue #80

Can you explain how you, Bryan and David came together? We were all mates at Deakin University, Geelong and had a common interest in surfing and snowboarding. Hec and David have established careers in global IT and Merchant Banking respectively so were a great fit when I pitched the idea of Brandscope to them about five years ago. They could immediately see the issues that the industry faced and how the Brandscope process and software could help streamline the inefficiencies. In a world of escalating costs, smaller margins and limited time, the traditional methods of selling are unsustainable. Brandscope aims to help rectify this, making everyone’s lives easier by offering the very best tool to help all sides of the equation achieve smooth efficient selling and buying. As a team, we hope we're on the path to achieving this. There's been speed humps along the way but one of us has had the skill base or market experience to navigate a resolution. It's been an amazing experience, punctuated but some harrowing lows and ecstatic highs but the things you remember are the odd ones like Hec introducing me to heavy metal at 3am during an all-nighter or David expressing how stoked he gets when we sign a new supplier compared to signing a billion-dollar mining deal with some Russian oligarch. How important was the Commercialisation Australia grant in establishing the platform? We made the decision very early on to build the business organically, which places a lot of pressure on cash-flow - so the grant was very helpful in early-stage funding. The driving force behind this decision was to maintain control of the direction of the business, which has placed us in good stead to date. When you self-fund you're also very focused on getting bang for buck which translates to painstaking decisions on which functions to develop. The result is a very clean, non-cluttered application with a high level of market relevance. Though autonomous, we're very close to our Supplier, Agent and Retailer customers and do a lot of research on their needs. In essence, Brandscope is a product of the market.

The bigger win though is validation of concept, which is a powerful tool to sell the platform. The board overseeing the funding is very business savvy and will only allocate funding only if there's merit. They saw growth and impact potential. Can you explain the current and possible future role of the sales rep for brands utilising the platform?

with the luxury of vertical margin are struggling to maintain sales-teams to service indices. We need to deliver efficiencies into the market, be it less Reps managing more brands through a mix of physical and digital means or Retailers continuing to empower themselves. Our job is to constantly engage with the market, determine the inefficiencies and deliver the functionality and processes to assist.

It comes down to the individual. Some fear it and others embrace it. The system aims to empower Supplier, Retailer and Sales Rep and stimulate interaction, not stymie it. Those who embrace the technology free up time to work closer with their customers and become more of a business manager focusing on marketing, education and product planning. Currently, Reps embracing the tool spend a lot more time assortment planning and presenting product selections to their retailers, thereby taking ownership at the beginning of the sales process. They've also got a greater visual on what's available in their Supplier's warehouse to assist with replenishment opportunity. They also tend to communicate marketing information a lot better as it's all on the one portal. As the tool improves, they'll only become more efficient, resulting in less reps managing more brands across broader distribution channels.

Do you think the boardsports industry as whole is willing to adopt new platforms and ways of doing business?

The other factor is that retailers are also taking things into their own hands and becoming more efficient at maintaining their own ranging and inventory levels. On average, over 80% of orders are submitted by Retailers. A percentage of those would be initiated by the Sales Rep and then adjusted/submitted by the Retailer, but you can see the trend.

Youâ&#x20AC;&#x2122;ve got 100% of the hardware market using the platform. Is it fair to say apparel, with so many classes and styles, is more problematic for Brandscope than hardware?

Do you think Brandscopeâ&#x20AC;&#x2122;s success will result in a review of the role of sales reps and ultimately impact their commission structure? Greater market forces than Brandscope will dictate roles and commissions. You'd have to be living under a rock not to see the margin squeeze that is walloping our industry, placing incredible pressure on the middle-men. It's unsustainable and as an Agent for over 10 years I experienced this first hand! Even bigger brands

Absolutely, and Brandscope's broad entrenchment into the Australian and New Zealand and gradually global market place is testament to this. Whether it's Suppliers, Agents or Retailers the willingness to adopt newness is born out of necessity as the market continues to heat up. Beasts like Amazon show us all what can be achieved with technology which inspires us to improve. While the independent market is fragmented it's challenging to introduce efficiencies but through aggregation a lot can be achieved. "Herding the cats" was our primary goal - we can only compete if we're a coordinated, highly efficient group from Supplier/Agent through to Retailer. The "go it alone" concept simply simply doesn't work.

Quite the opposite. The system was originally designed for indent because there was nothing in the market that catered for this. We quickly discovered that Retailers, while in the Brandscope environment finalising indent, were then shopping for refill. We modified the tool and introduced things like QUICKFILL (4-click reordering) and COUNT'NFILL (stock model orientated re-ordering) which kicked refills even further. Retailers then started pressuring the hardware guys to jump on and make their lives easier (more brands in their showroom) which snowballed. We're architecting a new function which focusses on the core product lines to drive even greater inventory efficiencies. 39/

“ The system aims to empower Supplier, Retailer and Sales Rep and stimulate interaction, not stymie it.” Simon Blockey

Do you think the oversupply of product, subsequent discounting and challenges the industry has faced in recent years could’ve been avoided if Brandscope was adopted earlier? That's a very simplistic view of the situation but if used to its full extent, the system influences greater inventory control through PO placement, sales into store and sales out of store which results in less stock obsolescence. If inventory's tight you're not clearing and damaging your brand. If there's less excess, clearance specialists go hungry and the market’s kept clean. Nirvana but unlikely we'll get there. Our mantra is to make independent retail super-efficient by ensuring the right stock is on the floor at the right time, all the time. We need to negate the impact of having too much of the wrong stock and not enough of the right stock which murders your bottom line. This is the only way we'll be able to complete in an increasingly competitive market. Timing also plays a large part in the equation. When we launched the alpha site five years ago it was a tough sell but the market is generally a lot more receptive to B2B now through financial necessity. Intuitive flow plays a big hand in this. One supplier told me it's easier to order on Brandscope than to look at online porn! We'll take that as a compliment. Is the Quickfill function available across all brands? No. Retailers are currently siloed into single brand when buying but they've been asking for cross-brand comparison because it facilitates their current buying processes. Imagine this... it's 10pm at night, you're shagged from dealing with the public all day and you're copping enormous heat to get your orders in. What follows is a ritual of manual cataloguing, shuffling that would drive anyone insane! Retailers would like this current process digitised which makes a lot of sense. We've discussed indent and refill cross-brand comparisons with some Suppliers and there's polarised views. Some welcome the open market because it continues to hone their product and marketing strategies while others fear it for its impact on price. Retailers are not using the platform for price comparison to the same extent as consumers. It's a business tool that facilitates a gamut of buying focuses, not just a price decision. Competition drives refinement which benefits the industry as a whole. To shy away from this opportunity jeopardises everyone's position. How does a brand maintain its own identity and marketing flair on the platform? How do brands ‘stand out from the crowd’ on the same platform? The fear of losing brand identity on the system is a misnomer. Brandscope allows for a plethora of up-loadable formats which allows brands to enrich the customer experience. Brands tend to "grow into" the system and place more focus on the generation of digital assets as opposed to printed assets. In essence, the greater the commitment to the medium as the primary sales/marketing/ educational tool, the more flavorsome the user experience. We're also seeing the tool used on the shop floor to showcase products and supporting educational assets to end customers. Some of these customer engagements are resulting in at-once refill orders sent straight to Suppliers. In essence, Brandscope is a blank

40/ Australian Surf Business Magazine issue #80

canvas that is already being looked at by the Retailer down to floor level. Suppliers simply paint it as they see fit to further stimulate the retailer's engagement. Typically, the bigger the brand the greater the resource library. The greater the impact, the stickier your brand is and the more purchasing activity it receives. We're also seeing that Retailers are buying within the environment because it's "easy". As an example, they'll confirm an indent then send a couple of refill orders through for the same or a few other brands while in their showroom. Brands that fear being amalgamated need to weigh it off against the ordering benefits of the aggregated market and the direct access they have to influencing a buyer. Obviously, reports are limited to participating brands and retailers, but who is eligible to receive a Brandscope market report? We don't provide a market report. The system offers a reporting suite that caters for the a-typical reporting requirements but we still find that most Suppliers and Retailers rely on their POS and ERP systems for more complex reporting which are already customised for their requirements. We’re not oblivious to the power of the data, it just hasn’t been our focus. Entrenchment and functional relevance have been front of mind. Can you update how the international roll out is going? The system is now being used in 40 countries so the footprint is growing rapidly, especially in Europe and the US where we're spending more time. The US is a challenging market because the rep model is still sustainable, though barely, due to the smaller territories and higher incomes. As such, B2B is characterised by rep tools, but this will gradually change as the Australian experience becomes known. Action sport and lifestyle fashion channels are strong but we're also seeing a huge uplift in Outdoor and Leisure which dwarf the surf market on a global scale. Globally, we're seeing cross-overs in these distribution channels resulting in functionality that can be shared across other markets for the good of all. We're confident that a collusion of forces and a cross-pollinisation of ideas across all channels will fortify independent retail as a whole. Global expansion is in the cross-hairs but we’re being very mindful of who we align ourselves with given the expense of expansion. The corporate graveyard is full of companies that have grown too fast and lost their way or control and we’ve no desire to risk what has already been achieved with dreams of becoming the next Google. Lifestyle and work-play balance is also an important part of our business culture, compounded by a long-term strategy. No doubt, the future’s exciting!

2018

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ActionWatch INSIGHTS ANALYSIS OF SALES GROWTH, PRICEPOINTS AND WATCHES

ActionWatch Insights is only a snapshot of top line results from our ActionWatch Oz Retail panel. For comprehensive brand, style and category reports contact keith@actionwatch.com

INSIGHT DATA SUNGLASSES & WETSUITS SUNGLASSES

SUNGLASSES

PERCENT OF UNITS SOLD

UNIT SALES & AVG UNITS IN INVENTORY PER STORE SELLING SUNGLASSES 300

Avg Inventory Avg Unit Sales

$200-$300 250

2017 2016

$100-$200

200

150

$75-$100

100

$50-$75

$30-$50

Au g

Ju l

Ju n

17 Ap r1 7 M ay 17

M ar

b Fe

Ja n

c De

35%

30%

25%

20%

15%

10%

A much higher percentage of sunglass units were sold in the $50-$75 price range so far this year compared to the same time period last year, continuing a trend from the previous year. This price category jumped from 10% of units sold in 2015 up to 27% of units sold this year

In the slower sunglass sales months of May and June only about 10% of average inventory was sold while 51% of average inventory was sold in December.

SUNGLASSES TOP-9 STYLES

SUNGLASSES - AVG $ SALES PER STORE

JANUARY THROUGH AUGUST 2017 (In alphabetical order)

JUNE 2016 THROUGH MAY 2017 $20000

17 g Au

Se p

$0 l1

$171

1.7%

Dragon - MONARCH

$2500

$204

2.4%

Otis - AFTER DARK

$5000

$235

2.5%

Oakley - TURBINE ROTOR

$7500

$180

2.9%

Otis - YOUNG BLOOD

$221

3.0%

Oakley - BATWOLF

$10000

$196

3.6%

Dragon - THE JAM

$12500

$194

3.8%

Dragon - REMIX

$231

4.5%

Oakley - TURBINE

$15000

$204

6.3%

Oakley - HOLBROOK

$17500

AVG Price

$ SHARE

BRAND

The average store on the panel earned revenue of almost $16,000 from sunglass sales in December 2016 and dropped down to just over $2,500 in June. 42/ Australian Surf Business Magazineâ&#x20AC;&#x192; issue #80

WETSUIT SALES GROWTH

AVG $ SALES PER STORE

JAN-AUG 2017 vs JAN-AUG 2016

JANUARY THROUGH AUGUST 2017

60%

50% Wetsuits Short John Wetsuits S/S Full Wetsuits Rash Guards Wetsuit Gloves Wetsuit Vests Spring Wetsuits Wetsuit Booties Neoprene Trunks Wetsuit Hoods L/S Spring Wetsuits Full Wetsuits Wetsuit Jackets

50%

40%

30%

20%

40%

30%

20%

10%

N eo

tJ oh

st s

rin

L/ S

ke Ja c

s ie

-10%

S/ S

rin

Fu sh

The whole wetsuit category combined declined 2.5% in the January through August time period compared to those same months last year. Year-over-year sales declines of full wetsuits, the largest wetsuit category, could not be off-set by significant growth in many of the smaller classes.

Full wetsuits accounted for almost 60% of total wetsuit category sales in the latest 8 months while rash guards made up about 13%.

WETSUIT CATEGORY BY GENDER

FULL WETSUITS

JANUARY THROUGH AUGUST 2017

UNIT SALES & AVG UNITS IN INVENTORY PER STORE SELLING FULL WETSUITS 200

Avg Inventory Avg Unit Sales

Male 77% Female 23% 150

100

Male 77% Female 23%

17 Au g

17 Ju l

17 Ju n

17 M ay

7 r1 Ap

17 M ar

17 Ja n

16 N

6 Oc t1

Se p

Less than a quarter of ActionWatch panel members' wetsuit category sales came from female-specific items during the last 8 months.

The number of full wetsuits carried in the average store on the panel was fairly consistent throughout the year even though December and January the sales to inventory ratio increased to ~20%.

WETSUITS TOP-9 STYLES

SPRING WETSUITS (SHORT LEGS, SHORT SLEEVES)

JANUARY THROUGH AUGUST 2017 (In alphabetical order)

PERCENT OF UNITS SOLD

BRAND

$ SHARE

AVG Price

Rip Curl - FLASHBOMB 4/3 GB

4.1%

$430

O'Neill Wetsuits - EPIC 3/2

1.9%

$255

Rip Curl - FLASHBOMB 3/2 GB CZ

1.8%

$462

Vissla - 7 SEAS 3/2

1.8%

$300

Xcel Wetsuits - DRYLOCK 4/3

1.7%

$391

O'Neill Wetsuits - SUPERFREAK 4/3

1.6%

$260

O'Neill Wetsuits - EPIC 4/3

1.4%

$263

Billabong - REVOLUTION TRIBONG 202

1.3%

$132

O'Neill Wetsuits - SUPERFREAK 3/2

1.3%

$240

2017 2016

$300-$500

$200-$300

$100-$200

â&#x20AC;¹$100

10%

20%

30%

40%

50%

The price point growth shifted from the higher $200 to $500 ranges in 2016 to the below $200 ranges in 2017. 43/

FEATURE ARTICLE / WORDS BRIAN WALKER – CEO/FOUNDER – RETAIL DOCTOR GROUP

The State of Independent Surf Retail by the numbers "SURFING'S ONE OF THE FEW SPORTS THAT YOU LOOK AHEAD TO SEE WHAT'S BEHIND." LAIRD HAMILTON

How is the health of the Australian independent surf retail sector – relative to the retail trends nationally? How does the effect of store closures have a knock on effect to sales volumes and category performances? The world of retail is changing, faster than many of us can keep pace with. Aldous Huxley’s “brave new world” will soon be a reality. Retail shop distribution in Australia, and internationally, has followed the growth of communities, anchored predominately in shopping centres and the high street; and specialty retail has seen many waves itself. The choice of the suburbs for shopping centre locations in our metropolitan cities was no accident. The post-war immigration and construction boom, combined with cheaper cars and more convenient public transport, meant our cities began to spread. The pioneer shopping centre developers and major retailers recognised that it was more sensible to go into the suburbs, where their customers lived, rather than expecting the customers to continue to come to them in the central business districts. A new era of retailing was born. These new shopping centres combined both major retailers and small retailers to deliver a ‘one-stop’ shopping experience, usually in air-conditioned comfort, under the one roof. As our cities continued to sprawl and the services and infrastructure that were needed to support the growing population were installed, the number and size of shopping centres multiplied. These new centres were not confined to the cities: they’re now an important part of rural and regional Australia. On average, around 24 shopping centres have opened each year in Australia since 1957 and existing shopping centres have expanded through redevelopments. Perhaps the best illustration of the growth and development of the shopping centre industry can be gained by looking at that very first shopping centre in Brisbane. Nearly sixty years later that centre, now called Westfield Chermside, is home to 391 retailers including three department stores, three discount department stores, three supermarkets, 16 large speciality stores (known as ‘mini-majors’), 383 speciality stores, a 16-screen cinema and a major food court. The “lake of parking” has become an ocean with space for 6,500 cars. According to the Urbis Australian Shopping Centre Industry report (August 2015) there were 1,753 shopping centres in Australia which exceeded 1,000 square metres of gross lettable area (GLA). These comprised of: // 67 regional shopping centres (i.e. those that include at least one department store) // 286 sub-regional centres (i.e. those that include at least one discount department store as the major anchor tenant) // 1,104 neighbourhood or supermarket-based shopping centres (i.e. those that include at least one supermarket as the major anchor tenant) // 107 CBD centres 44/ Australian Surf Business Magazine issue #80

This number also includes 189 factory outlet centres and themed centres which are often categorised as shopping centres because they have adopted the shopping centre format (that is, usually a single, enclosed centre which houses many retailers). Note: this data excludes homemaker/large format retail centres. These shopping centres contain more than 65,000 speciality shops. Now we know through RDG insights that an average of 85% of all shopping is done in shopping centres and approximately 15% is done in the high street nationally so very broadly there are approximately 75,000 retail shops for our current 24 million population. The context here is that retail has, over the last ten years, seen rapid growth in the “houses of retail” and this has always been competitive, with heavier regulatory and landlord costs than many comparable overseas markets. This contributes to general pressure on sales and margins, whilst fluctuations in our exchange rate, growth of international retail and online shopping all changing the structural framework. However, as a country we have experienced very significant growth in the number of locations in which retail shopping can take place. Add to that the next era of growth being the development of the retail ecosystem including development of online retail, currently averaging 6-9% per cent of sales and growing in double digits and we see a marketplace increasingly spoilt for choice, both physically and online and at any time of the day or night, in person or by device. Consequently, digital communities are rising in prominence and product transparency is becoming more common. Consumers can view products when they’re online: therefore retailers and surf retailers are not immune and must focus on their differentiation/ point of difference strategies. Australian retail sales average more than $300 million per annum and this has not increased substantially, nor has it fallen dramatically over the last ten years, although the mix has changed slightly, with more spent on food and related retail as well as services over recent years. [Ed’s Note:] For more in-depth analysis, join us at ASBMAG. COM for full analysis and supporting ActionWatch data on the effect of sales volume decline and category performances in Australia and the USA.

AVG $ SALES YOY%CHANGE AUSTRALIA

20%

HARDGOODS WETSUITS ACCESSORIES APPAREL FOOTWEAR

15% 10% 5% 0%

-5%

After the first three months of 2016 sales growth in the ActionWatch same-store panel stores has struggled. Footwear, apparel and accessories categories have been hit the hardest while wetsuit sales have performed better. Hardgood sales growth only dipped slightly negative at the end of 2016 and beginning of 2017 but have otherwise performed relatively well.

-10% -15%

Jan-Mar '16 Apr-Jun '16

Jul-Sep '16

Oct-Dec '16 Jan-Mar '17 Apr-Jun '17

CHAIN STORE CLOSURES SINCE 2007

INDEPENDENT STORE CLOSURES SINCE 2007 BY STATE 1

CITY BEACH SURF DIVE N SKI OZMOSIS RUSH SURFECTION WAVES SDS PLANET SURF

Jul-Sep '17

ACT NSW NT QLD SA TAS WA VIC

51 67

28 3 2

4 3

45/

FACES

M/SF/T STORE OPENING

RVCA SPRINGTIME

CELEBRATION OF AUSTRALIAN WOMEN IN SURF

PATAGONIA PROVISIONS

MANLY

MELBOURNE

SYDNEY

MANLY, SYDNEY, TORQUAY

SNOW INDUSTRY OF AUSTRALIA

VOLCOM NORTHERN PARTY

CANBERRA

SYDNEY

46/ Australian Surf Business Magazineâ&#x20AC;&#x192; issue #80