Australian Surf Business Magazine #79

Australian Surf Business Magazine September

2017

ASBMAG.COM AUS $6.95 (INCLUDING GST)

FEATURE ARTICLES: The State of Women's Surfing/ Shop Insta Brand / Talking Shop / Buyers' Guide – Footwear – Denim – Bags.

#79

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Laminated & bonded fabrics eliminate wind chill.

Durable Water Repellent (DWR) treatments protect you through rain & storms keeping you dry.

AUTUMN 18 IN STORE FEBRUARY

Owen Wright

CONTENTS

ISSUE #79 SEPTEMBER

inside this issue

contents 10

Industry News

Ahoy!

20

Feature Article THE STATE OF WOMEN'S SURFING

Ordinarily you might expect us to introduce a new issue by telling you about industry developments. We could go on and speculate about the impact of Amazon or comment on a raft of store closures and other such grim topics.

26

Media Meter

But not this time. No sir. Because for the closing stages of this issue ASB has established an office at Matanivusi Resort on the Coral Coast of Fiji.

28

Later this month, Matanivusi will also play host to a wandering band of Australian surf retailers staying in this tropical paradise.

Fresh

30

Buyers’ Guide

31

Buyers’ Guide

32

Buyers’ Guide

36

Feature Article

41

Talking Shop

Here amid palm trees and the geckos and yes, the five-foot barrels at Frigates, we’re feeling renewed after what was a difficult period both personally and professionally last month.

FOOTWEAR

When you read Caz Ridings Emge’s terrific piece on Instagram Brands, you’ll experience that constrictive realisation that the pace of what we do is constantly escalating. That’s a good thing of course, but it’s also confronting.

DENIM

What matters most amidst all the frenetic change and innovation is that we all remember why we’re here; it’s the shared love of a truly unique lifestyle.

BAGS

Thanks for your support this issue, be it through advertising with us, subscribing to us or simply giving your time to answer our questions.

We appreciate it.

SHOP INSTA BRAND

So, bula to all that.

THE RETAIL DOCTOR

42

ActionWatch OZ Insights

44

Faces in the Lineup

Grab a quiet corner of the store, kick back and enjoy this issue.

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 COVER PHOTO Ed Sloane

36 Shop Insta Brand.

In the era of online disruption, influencer marketing and hypertargeting, how can labels stand out amongst the noise?

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QLD & NZ GREG SCOTT +61 (0) 407 577 997 sales@australiansurf.biz FASHION CO-ORDINATOR Fiona Hampson fashion@australiansurf.biz SUB EDITOR Jock Serong

EDITORIAL PLATFORM 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.

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.

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ASB PROUDLY SUPPORTS

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THE SPROUT

INDUSTRY NEWS

brand news BOARDRIDERS INC OPENS SELECT MYER STORES Quiksilver announced recent changes to its distribution strategy to include selected Myer stores, after conducting an extensive market research study into each of Boardriders Inc’s primary brands - Quiksilver, Roxy and DC Shoes. The study was the company’s most comprehensive global consumer analysis to date and follows the success Myer has had with DC Shoes.

“Our research on Australia confirmed a high level of demand for our brands in capital cities and urban regional shopping malls, but also noted that consumers were unable to find our products in some of these locations,” said GM for Quiksilver, Roxy and DC Todd Liddy.

“I want to emphasise that we will still be maintaining our focus on water performance and the core, with segmented lines and limited capsule ranges being developed for our key core partners,” said Liddy.

Responding to this demand, Boardriders Inc. has decided to expand its existing product offering in Myer to include Quiksilver and Roxy, effective from August 2017. Seven years earlier the company announced a move into rival David Jones with its juniors line for both Quiksilver and Roxy.

At the time of the David Jones movement with its juniors line, Quiksilver Asia-Pacific chief executive Greg Healy told press “Twenty-odd years ago, ourselves and few of the other leading surf brands were distributed through Myer.

“It’s definitely the first time in years that one of the leaders has decided to go back in (to department stores). To continue to be a market leader in our industry we must differentiate what we sell, who we sell to and through which channel,” continued Healy.

According to Quiksilver, the product offering will include a selection of mainline products across apparel, swim and kids. The assortment for Roxy will be focused on swim and kids. The assortments for both brands will be primarily lifestyle-based, reflecting the alignment between the Myer consumer profile and the lifestyle consumer profile as highlighted in the company’s marketing research. Details of that marketing strategy will be released to key stakeholders over the coming months and in the October issue of Australian Surf Business magazine.

A national campaign featuring marquee team rider Stephanie Gilmore helped solidify the partnership via social media.

In a battle for department store supremacy, Myer announced last year a $600m investment across the business to deliver a sharper and more focused offer to its customers. The 100-year-old fashion retailer was started by Sidney Myer, who migrated from Russia to Melbourne in 1899 and opened the first Myer store in Bendigo, Victoria in 1900.

The ‘New Myer’ strategy unveiled last year, sets productivity uplift targets of greater than 20 per cent sales-per-square metre improvement by 2020, and includes the redeveloped Warringah store, re-designed to meet those targets.

Myer said as part of its ongoing brand overhaul, the refurbishment is designed to host international fashion brands Topshop Topman, French Connection, Scotch & Soda, Jack & Jones, Nike, Apple and now includes Quiksilver and Roxy.

“We’re also looking at exciting options to bring unique and wanted services instore

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including talking to local community operators about cafes and pop up shops,” said Myer CEO, Richard Umbers.

“The entry into Myer will also include an online dropship model, further strengthening our premium brand messaging in the market. The model allows a focus on premium product and consistent brand messaging across all online platforms,” said Liddy.

“In addition to Myer, we have also recently entered into a dropship arrangement with SurfStitch. We will continue to work with SurfStitch on premium brand messaging and look forward to strengthening our current relationship.”

Myer Executive General Manager Merchandise Buying Karen Brewster said, “We are excited to announce the arrival of iconic Australian brands, Quiksilver and Roxy to selected Myer stores nationally in August.

“We’re continuing to evolve the Myer brand and fashion story to show newness and to inspire our most valued customers.

Welcoming Quiksilver and Roxy to our overall apparel and swim offer across women's, men's and kids adds further impetus to our wanted brands strategy and we know our Myer customers will love the introduction of both brands ahead of the summer season,” said Ms Brewster.

Boardriders Global President Greg Healy said, “Our decision to supply our Quiksilver and Roxy brands to Myer was based on the strong relationship we have formed with the Myer team and the success of our DC brand in Myer over the past few years. Myer is regarded as a premium department store within the Australian market. We have seen the energised revitalisation of Myer recently, including the introduction of other likeminded brands. The commitment shown by Myer to an inspiring customer experience is aligned with our youth-focussed brands DC Shoes, Quiksilver and Roxy.

“Myer understands the importance of long-term brand relationships and has a highly experienced retail management team that understands and respects the essence of our brands and the way they need to be represented. We look forward building on our successful partnership with Myer and continuing our track record of profitability and growth,” said Healy.

Full coverage and exclusive interview in our October issue.

VANS PARENT COMPANY TO BUY DICKIES VF, whose holdings include brands like The North Face, Timberland, Vans and Reef announced its deal to acquire WilliamsonDickie, the brand best known for the Dickies workwear line. For decades, Dickies and Vans were worn together and served as the uniform for skateboarders everywhere. In recent years, the Vans-and-Dickies combo has infiltrated the worlds of art, fashion, and celebrity teenhood. Not only does the acquisition mean the two worlds of Dickies and Vans will combine under the one roof, it also shines the spotlight on the bourgeoning US$30billion workwear industry and is the first major acquisition play VF have made in recent years.

According to the statement released by VF, the transaction is expected to be completed early in the fourth quarter of this year and VF will pay Williamson-Dickie shareholders approximately US$820 million in cash. On a trailing 12-month basis, Williamson-Dickie generated approximately $875 million of revenue.

Once finalised Williamson-Dickie will become part of VF’s Imagewear coalition.

Philip Williamson, Chief Executive Officer of Williamson-Dickie will remain with the company, headquartered in Fort Worth, Texas.

“When we introduced our 2021 global business strategy earlier this year, reshaping our portfolio to accelerate growth was our highest priority,” said Steve Rendle, President and Chief Executive Officer of VF. “The acquisition of Williamson-Dickie is another meaningful step that delivers on that commitment and further demonstrates our focus on being an active portfolio manager to drive transformative growth for VF and value creation for our shareholders” “For nearly a century we’ve worked hard to judiciously grow our company and portfolio of strong brands to maintain our leadership in the global workwear marketplace,” said Williamson.

“Today’s announcement is an authentic and natural next step as we look to combine the strengths of our two companies to create significant opportunities for our employees, vendors, retail partners and ultimately our customers. We expect that under VF’s leadership, we’ll be able to experience the next wave of growth and better meet the needs of workers everywhere.

“This acquisition combines two great companies and a group of iconic brands to create a global leader in workwear with approximately $1.7 billion in annual revenue,” Rendle continued, “Williamson-Dickie has a proud history and heritage, and has served a loyal consumer base for nearly 100 years. VF is the ideal steward to honour that heritage while providing a platform for growth that ensures continued success for another century. We look forward to welcoming Williamson-Dickie and its 7,000 dedicated employees to the VF family.”

Williamson-Dickie Mfg. Co. is the world’s leading provider of professional grade performance workwear - designing, manufacturing and delivering innovative work apparel for generations. Based in Fort Worth, Texas, the company’s collection of brands offers superior quality products at an unmatched value across an assortment of apparel, footwear and accessories in more than 100 countries, spanning six continents.

Williamson-Dickie employs over 7,000 individuals worldwide and its products are sold through a network of owned retail stores, franchisees, volume retailers, department stores, independent stores and online sites.

MICK FANNING JOINS OWNERSHIP GROUP OF CREATURES OF LEISURE Creatures of Leisure announced that threetime world champion Mick Fanning has joined the company’s ownership group. The deal is effective immediately and provides Fanning with ownership in the global business. According to Creatures of Leisure CEO Nathan Omodei, discussions were really organic as part of Mick’s contract renewal, starting around May this year.

Fanning now joins retired company founders John and Gabby Malloy as well as Stephen Gerard (Chairman), Nathan Omodei (Director & CEO) and Shane Partington (Director & Head of Business Development) as an equity partner and Chief Product Tester.

Commenting on the deal, Nathan Omodei told ASB that the company was super-excited to have Mick as an owner in the business.

“He’s real down-to-earth and approachable, which is a great fit for us – we’re all about enjoying surfing and the way of life that goes with it. Bringing Mick into our business is another step in the right direction and we’ve got a lot to look forward to.”

Thirty-six-year-old Fanning joined the Creatures team at age 16, and is equally excited by the latest development in his twodecade long connection with the company.

“Creatures of Leisure and I have always had a fantastic relationship,” said Fanning, “and this is obviously a huge vote of confidence in the company and the quality of their product. I see a lot of potential for growth, and can see us moving forward in a few new areas, too.”

“We started talking about future plans and ownership was put on the table as a way of me becoming more involved in the business” said Fanning, “and I thought that sounded absolutely perfect!”

“Creatures have been doing a great job for thirty years without me so I’m more than happy to let the people who’ve got it to where it is keep it going!” laughs Fanning.

“I picture my role being more as a sounding board, and working on the research and development front, which has always been something I’ve enjoyed.

“I’m really looking forward to getting my hands a little dirtier to create the best and most user-friendly products on the market.

I’m in the water all day testing leashes and tailpads, and carrying boardbags around the world every other week, so I can turn feedback around really quickly. Creatures already produce the best accessories on the market, and I can’t wait to help make them even better in future.”

Creatures of Leisure Director & CEO Nathan Omodei observed “Over the years Mick has grown into so much more than a three-time world champion, and his expertise and insights are going to be invaluable to us on a number of levels in the future.”

“I remember sitting down with Mick when we first partnered all those years ago,” said Director & Head of Business Development Shane Partington. “He was only a kid and in many ways so were we. You could say we grew up together, so to sit down now and have Mick alongside us in in the ownership group is amazing.”

BILLABONG TERMINATES OMNICHANNEL SOLUTION PROVIDER Billabong has announced it has terminated its agreement with NetSuite, the omnichannel service provider it had engaged to integrate its online and offline retail operations. NetSuite was initially brought on to integrate Billabong’s wholesale, retail stores, e-commerce operations and social media platforms.

Billabong says it’s still committed to rolling out its omnichannel solution, despite changing its service provider. The company expects to deliver what it’s calling “the overall solution” which will be materially close to its original range of budget expectations and to “accelerate implementation by utilising advancements in cloud computing and bestin-class technology for each of the major components.”

Billabong also confirmed it will launch its new Surf Dive ‘n’ Ski online store this year.

“The first of our new e-commerce websites, Surf Dive ‘n’ Ski, is expected to launch before the end of this calendar year,” Billabong said in a recent company statement.

Billabong said a full update in respect of the company’s performance and the roll-out of its omnichannel solution will be provided in its 2017 full year financial results at the time of press.

In its half year 2017 results, Billabong reported 2.6% decline in bricks and mortar store sales, however a significant 24.6% upturn in e-commerce sales, which represented 4.9% of total sales, acknowledging while “still under-developed in e-commerce”, it represents a “big opportunity for the company.”

For wholesale inquiries please contact Matthew Martin matthew.martin@patagonia.com.au

INDUSTRY NEWS

HIVE LABEL CALLS IT QUITS WHILE IT'S AHEAD Swimwear label Hive announced it will close at the end of the summer season after twelve years in business, during which it won several awards and supplied stores across Australia and internationally.

Owner Kat Hogg told local press she has chosen to go out a winner, bringing the label to an end that respected that success in a market increasingly impacted by global currency fluctuations and the dominance of Chinese mass production over unique brands. Kat said the growing impacts of those influences had raised questions about the return on investment.

Hive claims to have successfully pioneered the market for fit-for-purpose surf swimwear for women and became a sponsor of several of the new-generation Sunshine Coast surfers now making their presence felt on the sport, including world tour competitor Keely Andrew, Isabella Nichols and Jaleesa Vincent.

It also supported women's surfing at a grass roots level on the Sunshine Coast.

Started in 2005, Hive Swimwear at its peak sold in 100 Australian stores and held 40 international accounts for a product whose designs and prints were developed by Kat and her Noosa-based graphics team.

In her first foray into business on her own, Kat was awarded the 2007 Queensland Small Business Champion Award and was named the 2014 and 2016 Sunshine Coast Swimwear Designer of the Year.

"We've had a lot of success, it's been a fantastic chapter and I'm now ready to move on to the next stage," Kat said.

Kat said she loved the creative industries and being involved in design but had learned so much more from being involved with the business, invaluable skills she said could be used in a number of different areas.

"I'm happy with the success we've had in a competitive industry," she said. "I can walk away saying I'm proud of that, it's made me feel good as a person."

As to her next endeavour Kat is either not sure or not saying.

"I'm not the kind of person not to do anything," she said. "But first I want to finish the brand the way it deserves."

VIA Sunshine Coast Daily.

BILLABONG HAS ANNOUNCED ITS SECOND COLLECTION WITH ANDY WARHOL. Billabong has dropped its second collection with the Andy Warhol Foundation.

According to Billabong, for this collection the brand continued to dig through Warhol’s archives, in search of more untold stories that would become the canvas for this collection. “There's something about the way Andy Warhol captured simple things…

Even the palm trees he photographed were expressive, sort-of intimate and a little chaotic in their own way.”

In a statement, The Andy Warhol Foundation said "Warhol's rebellious spirit and attraction to the non-conformists led him to Southern California in 1968 where he spent two weeks filming surfers as part of his underground film, San Diego Surf.

The Foundation is proud to collaborate with Billabong to celebrate individuals who refuse to be defined by convention."

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marketing news MEET AUSTRALIA’S #THISFIRST HIRE AT VOLCOM. Volcom admit they weren't quite sure what the reaction would be when the company launched their #thisfirst campaign and asked influencers, "What's your 'this'?"

Volcom were flooded with over 10,000 photos, videos and statements of passion and what being able to put that passion first in life would mean.

Entries spanned a variety of topics, the most common being art, photography and travel, while music, surfing and skateboarding followed closely behind. But according to Volcom, it wasn't just artistic globetrotting types with a passion for boardsports that entered, people pursuing passions as varied as sustainable farm to table food sourcing, charity work, animal rescue, make-up artistry and even crochet, all shared their stories.

To pick just 60 finalists from the thousands of entries, Volcom judges locked themselves in an office for a week. According to Volcom, the deeper they got, the less it felt like they were going through contest entries and the more like they were parsing the results of a massive survey which was beginning to reveal some trends.

“A lot of you like to take photos and want to travel, especially Australians. Aspirations to become a successful YouTuber were not uncommon. And entrants in Asia had a tendency more than any other region to focus on charitable giving.

“Making the selection of the 60 finalists was hard, narrowing that field of finalists down to 15 winners was even more difficult and we appreciate everyone's patience (yes, we saw your comments on Instagram) awaiting the announcement.

“Before introducing the winners below, we just wanted to take a final moment and express how truly humbled we were by all the finalists and what it is that is driving you to pursue your 'this'. To you and everyone else who entered and gave us a peek into your lives, we cannot thank you enough!”

The lone Australian finalist in Volcom’s #thisfirst was Tylah Kerr, a music promoter from Melbourne, who is trying to break her way into the music business. According to Tylah she’s ready to quit slinging tickets for a corporate behemoth and concentrate on her own production and management company.

OAKLEY BATTLE CLIPS RETURNS Oakley and Surfing Australia announced the return of Oakley Battle Clips – Australia’s first man-on-man video competition for surfers aged twenty-nine and under.

Following the overwhelming success of its inaugural year of competition, Oakley Battle Clips is back in 2017 to elevate the best young talent in Australian surfing. The competition formalises the fierce video clip battle that plays out daily on social media by offering Australian surfers a chance to win $20,000 cash and prizes including $5,000 worth of Nikon camera gear and an expenses-paid trip to Hawaii to feature in the Oakley Battle Clips feature film.

28-year-old Brent Dorrington edged out a stacked field of competition in 2016, gaining a 50% share of public votes against finalists Jack Robinson (18, WA), Sheldon Simkus (19, NSW) and Soli Bailey (21, NSW.) Dorrington took home the $20,000 grand prize and $5,000 of Nikon camera gear for his filmer. According to Surfing Australia’s Digital Co-Ordinator Andy Rosenburg, the

focus this year is on refining the content execution for a better audience experience and continuing to offer competitors the fairest, and most thorough online competition platform for their surfing to be judged by both the public and the panel of Oakley and Surfing Australia judges.

“Last year we received 52 solid entries from the best under 29 surfers in the country.

Everyone from CT & QS competitors to underground rippers entered the competition,” said Rosennburg.

The important lesson learnt from the inaugural Oakley Battle Clips was that it’s important to reward the content creators, the Filmers, and their efforts to entertain us are all too often overlooked. To rally the troops: Surfing Australia leveraged its database of 20,000+ boardriders club members, to drive awareness of the competition with competitive surfers all over the country.

“We were surprised to see this also resulted in Boardriders clubs playing a big role in getting behind their club mates who entered the competition by voting online. It was great to see Oakley Battle Clips being driven by grass roots surfing in this way,” said Rosenburg. “If you’re going to do something like this, go big. Oakley and Surfing Australia throw everything at this.”

One of the key lessons from 2016 was the real power of unique content delivered socially.

“We dedicated a lot to making the videos as close to a real surfing contest as you can with clips. This year we’re taking that concept a step further in the man-on-man rounds and putting even more into the Oakley Battle Clips movie, which will be shot in on the North Shore in December. This is a 20-minute surf movie featuring the best surfers in the world, with the four finalist film parts in the middle. Best part wins!”

Each round of the 2017 competition will be judged by a three-man judging panel including Surfing Australia, Oakley and public vote via likes, shares, comments and views.

The competition will commence on September 1 2017 with the national qualification round calling all surfers to submit their best one-minute video edit via Instagram, using the hashtag #oakleybattleclips.

Oakley Battle Clips chose Instagram as the preferred social channel as the barriers for entry are low.

“All we asked was for competitors to post a one-minute edit to Instagram with the hashtag #oakleybattleclips, and they were in the running,” Rosenburg told ASB. “In addition, we could leverage the influence of the influencers. The massive prize purse definitely helped spark the interest of some of the top young surfing influencers. They then leveraged the power of their following to rack up votes by engaging with their videos.”

“Engagement is the perfect way to gauge public opinion. By using Instagram as a vehicle, we are able to gauge how much people like something by how engaged they are with it. In Oakley Battle Clips, public opinion weighs a 3rd of the overall vote so it’s in competitors’ interests to share as much as possible.”

The top 16 entries chosen by the public vote and the expert judging panel will move into a series of man-on-man, maneuver-specific heats where surfers will be matched up against each other to compete in a series of clip versus clip, trick versus trick rounds Air, Barrel & Turn.

The surfer to win their man-on-man heat will then progress to the semi-final where the format will evolve into an all-in, eightman round, each surfer competing for ‘Best Ride’ which can consist of anything from

heaving barrels to progressive combinations.

The top four clips will then move into the final.

The final four will travel to Hawaii with the mySURF.tv crew where they will take part in the making of the Oakley Battle Clips feature film. Each surfer will have their own 2-3-minute film part.

The overall winner will be judged on their Oakley Battle Clips film part, decided by the expert judging panel and public opinion, with the winner taking home a $20,000 grand prize and their filmer walking away with $5,000 of Nikon camera gear.

Entering the competition is simple: head to www.oakleybattleclips.com, complete the registration form, upload your surf clip to Instagram tagging #OAKLEYBATTLECLIPS and you’ll be in the running to win. All qualification entries must be lodged by midnight (EDST) on September 30, 2017.

“We’re extremely excited for the next chapter of Oakley Battle Clips; with last year's competition achieving over a million engagements - we can’t wait for the competition to kick off and highlight Australia’s young surfing talent once again,” said Ben Goss, Oakley Brand Director.

"Surfing Australia is stoked to see the Oakley Battle Clips competition continue in 2017. The competition has already proved that Australia is a hotbed of young surfing talent and we are grateful to be working with Oakley to give our young Aussie surfers the recognition they deserve through this innovative digital content driven surfing comp,” added Andrew Stark, CEO of Surfing Australia.

Both Oakley and Surfing Australia admit they were ‘stunned’ at the level of talent that entered the competition in 2016 and anticipate and even greater level of entries this year.

“Everyone from the CT like Stu Kennedy and Ethan Ewing, QS competitors Jack Robinson, Soli Bailey and Jacob Willcox, right through to underground chargers like Sean Mawson, Garrett Parkes and Jayke Sharp. It was really exciting to see the level of surfing in this country and Oakley Battle Clips is the perfect format and platform to showcase it,” concluded Rosenburg.

The winner of the inaugural Oakley Battle Clips competition will be crowned at a special event and screening of the Oakley Battle Clips film at the Australian Boardriders Battle national final in Newcastle on February 16, 2018.

The Oakley Battle Clips competition is powered by www.mysurf.tv, Surfing Australia’s dedicated surf video platform.

Visit, www.mysurf.tv for the latest Oakley Battle Clips content and updates.

Discover More: Website: www.oakleybattleclips.com Hashtag: #OAKLEYBATTLECLIPS

BILLABONG RESPONDS TO US WEBSITE IMAGE. Billabong has caused some friction online after the representation of women on its US website was called out on web aggregator content site Medium by author Karen Knowlton and quickly gathered interest online and across social media. Knowlton let loose on the brand after becoming enraged by ‘overt sexism’ on the website’s landing page “Man as subject, shredding waves.

Woman as object, back arched and head dropped back for ultimate titillating effect on the viewer. This doesn’t even pretend to be an image of a woman having fun on the beach, actually enjoying her beautiful body in the perfect swimsuit. It’s just straight objectification,” said Knowlton.

The story was picked up by a number of news sources, including local Gold Coast media. Knowlton added she knows sex sells, “but just do better” and urged the brand to “just be better than this, because this totally sucks and frankly the whole thing is a bit tired”. She said this kind of imagery impacts the psyche of women and girls.

To Billabong’s credit the image on its US site has been changed to that of a woman duck diving a wave with her surfboard.

association news SURFING AUSTRALIA ON THE HUNT FOR GOLD AHEAD OF 2020 OLYMPICS Surfing Australia are on the hunt for gold at the 2020 Olympic Games. They’ve announced two key hires following an extensive and rigorous review of their high-performance program, with a view to ensuring the organisation is set up to maximise its chances to achieve the first ever surfing Gold medal in the 2020 Olympic Games.

The extensive review process undertaken over the month of June engaged a wide variety of internal and external stakeholders, including elite surfing athletes, surf coaches, and other Olympic sport athletes, CEOs and Performance Directors and Head Coaches.

As the first major appointment of the review, Surfing Australia sent a clear message about its gold medal intent, appointing world tour competitor Bede Durbidge as Elite Program Manager. Durbidge is currently ranked World #22, and still well inside requalification for next year’s world tour, but announced his retirement set for later this year. (See On The Move).

The final review report recommended various major changes to the current program. One of the major changes is the need to decentralise the current Surfing Australia High Performance program to enhance Australia’s chances at obtaining its first ever Surfing Olympic gold medal.

Commenting on the review, Surfing Australia CEO Andrew Stark said: “This has been an extensive review and one that was certainly necessary given how seriously committed we are towards achieving the first ever Gold Medal at the Japan 2020 Olympics. We needed to understand the success profile of a legitimate Olympic highperformance program and how this could work in with the sport of surfing, and we are confident that while there are big changes required, the changes will result in us giving our country the best possible chance to achieve our goal of continued world titles and the first ever Gold Medal at the Japan 2020 Olympics."

LET’S GET READY TO RUMBLE: WSL APPOINTS FORMER UFC VP JOSEPH CARR The World Surf League (WSL) announced the appointment of Joseph Carr as the Chief Strategy Officer and Head of International for the organisation. In partnership with the senior management team, Carr will be responsible for overseeing the League’s strategy, corporate development, and the execution of international operations, sales, events, and athlete development.

Carr joins the WSL from UFC where he served as a Senior Vice President and Head of International and Content, managing the organisation’s global strategy, operations and media business. In his new role at the WSL, Carr will lead the strategy and execution of the League’s international business and spearhead further integration with the Kelly Slater Wave Co.

THE HURLEY SURFING AUSTRALIA HIGH PERFORMANCE CENTRE (HPC) SET FOR MAJOR EXPANSION Future Australian Olympic surf stars received another massive boost today as the Hurley Surfing Australia High Performance Centre (HPC) gets set to take on a whole new look and feel in 2018 after the first sod of soil was turned in a major expansion project thanks to both Federal and State funding grants. Construction officially begins August 31st on the 6-million-dollar expansion that will include: • Underground parking for 18 vehicles • Bigger and better AIS Aerial Surf Skate Training Facility • Significantly expanded and improved world class gymnasium • 100 seat auditoriums • Larger coaching and treatment room facilities • 11 new accommodation rooms with double beds and ensuites • New large dining and kitchen area • Office space that will also house the entire Surfing Australia staff All these new facilities will allow for a full blooded Olympic Campaign heading towards the 2020 games in Japan.

Surfing Australia CEO Andrew Stark said the expansion of the HPC would only serve as an even better tool for future Australian surfing success on the world stage.

“This is another fantastic step for Surfing in this country that is perfectly timed with the Olympic campaign for Japan 2020.

The current HPC has been an outstanding success and the new expanded facility will only grow on that success into the future. We are incredibly proud of the announcement today and the amazing legacy it will provide to surfing and also the local community.

We sincerely thank the Federal and state government for their support to make this dream come true.”

The expansion project was made possible by the Australian Government’s investment of $2.536 million in funding through the Building Better Regions Fund and the New South Wales Government represented by Sport and Recreation within the Office of Sport who funded $3 million for the expansion.

RIP CURL ANNOUNCED AS SUPPORT SPONSOR FOR WEETBIX SURFGROMS FOR 3 YEARS. Weet-Bix SurfGroms launched its seventh season at Currumbin with Mick Fanning and new major support partner Rip Curl on hand to help launch the seventh successful season.

Joining Fanning will be fellow Rip Curl team riders Owen Wright and Nikki Van Dyke who are brand ambassadors for the new seasons partnership. The program continues to strengthen moving into the new season, with Rip Curl coming on board for three years.

"At Rip Curl, we understand that surfing is the most fun a kid can have, bringing that to the next generation of surfers through the SurfGroms program is something we're stoked to be involved with. With that in mind, grommets are probably the most important surfers in the world and catching a wave is a great way to start the journey," said Neil Ridgway - Rip Curl Marketing Chairman.

Since Weet-Bix SurfGroms was launched in October 2011, more than 60,000 Australian children have experienced the thrill of surfing for the first time, and registrations for the latest programs are now open, just in time for summer. Weet-Bix has always been about helping Aussies stay healthy, so we are proud to support the Weet-Bix SurfGrom

program which seeks to actively promote and support the health and wellbeing for kids aged 5-12 years old through the enjoyment of surfing. Aussie kids are WeetBix SurfGrom Kids,” said Alex Garas – WeetBix Senior Brand Manager.

“These Surfing Australia programs are key to our sport’s growth and making this wonderful lifestyle accessible for all.

Woolworths’ support of surfing is fantastic and I’m so proud to be part of the journey,” said Stephanie Gilmore.

Weet-Bix SurfGroms offers youngsters aged 5-12 years old an opportunity to learn to surf while developing strong ocean awareness and beach safety skills at a very influential period in their lives, that they will enjoy and embrace for a lifetime. Coinciding with the season launch is a new Weet-Bix SurfGroms website, designed specifically to making becoming a Weet-Bix SurfGrom and surfer for life, easy. Weet-Bix SurfGroms programs are available through the Surfing Australia Surf Schools Network with more than 80 delivery centers around the country.

Parents can register their children through the website – www.surfgroms.com – which will provide contact details for their closest delivery center. Surfing Australia CEO Andrew Stark said: “We are stoked to be launching the sixth season of Weet-Bix SurfGroms with the aim of starting another 10,000 groms on their lifelong surfing journey. Surfing Australia is also hugely excited to welcome Rip Curl on-board as the Weet-Bix SurfGroms major support partner for the next three seasons. Their support will be crucial in the programs continued success and we thank them for that.”

Weet-Bix SurfGroms will also be offering youngsters the opportunity to learn how to Stand-up Paddleboard (SUP). Surfing Australia has developed this program as part of the Weet-Bix SurfGroms experience to teach kids the skills they need to SUP safely and confidently throughout their lifetime. Weet-Bix SurfGroms is backed by major support sponsors Rip Curl along with Woolworths, Wahu, Global Surf Industries, Surfing Australia and the Australian Sports Commission.

Adding to Woolworths’ partnership assets will be their support of the Surf Dive ‘n’ Ski Australian Junior Surfing Titles, Weet-Bix SurfGroms, Surf for Life Project, the Hurley Surfing Australia High Performance Centre (HPC) and the nudie Australian Boardriders Battle including 8 State events and a National Final.

WOOLWORTHS’ FRESH BOOST FOR THE NEXT GENERATION OF SURFERS

Larkin will be remembered by surfing history as a man who took Queensland surfing up a peg or two, but also as one of the first pioneers of Australian surfboard building.

RIP Joe Larkin.

Future Australian surfing champions will receive further help to ride the wave to success, with Woolworths expanding its commitment to the sport. Under the new partnership, Woolworths will be the driving force behind Surfing Australia’s junior surfing pathway. The partnership now includes the 10-event Woolworths Surfer Groms Comps presented by Wahu series, Surfing Australia’s six affiliated State branches Woolworths State Junior Surfing Titles, with 18 events to be run nationally, and the Woolworths Australian Junior Surfing Team.

Woolworths Director of Marketing Andrew Hicks said, “As an Australian brand we're proud of a partnership that helps develop the future talent of such an iconic Aussie sport.

“With the expanded commitment we’re pleased to be able to support more junior surfers in reaching their potential, as well as inspire a fresh wave of surfing talent to take a healthier path to their future success.

“As the major junior events cross the country we’re also looking forward to being able to connect our customers and store teams with the sport and to celebrate the next generation of champions in local communities in each state.”

With six-time World Surf League (WSL) Women’s World Champion Stephanie Gilmore already on board as a Woolworths brand ambassador, up-and-coming WSL World Qualifying Series competitor Soli Bailey will join Gilmore as an ambassador for the partnership.

“Woolworths’ ongoing commitment is a further boost to our sport and will be instrumental in helping continue the growth of future talent as they learn about developing a healthy and balanced lifestyle.

The beach to broadcast partnership will also see Surfing Australia continue to produce content across their digital and broadcast platforms in partnership with Woolworths, including on mySURF.tv and on Surfing Australia TV presented by Woolworths on Channel 9 GO! and Fox Sports.

RIP JOE LARKIN Pioneering surfboard maker and Hall of Fame honouree Joe Larkin passed away last month. Larkin was one of the pioneers of the surfboard building business in Australia in the 1950s, making toothpicks from timber.

He moved to Kirra in 1962, and set up Joe Larkin Surfboards factory where many a young grom came through and learned about life, surfing and surfboard building from Joe. At the peak, Coolangatta was a melting pot of ideas, innovation and incredible futuristic surfing and Joe Larkin was at the forefront of this pivotal moment in the sport. His factory ‘employees’ included Rabbit Bartholomew, Michael Peterson and Peter Townend.

“Some people make a difference in your life: Joe Larkin did in mine. Words can't describe the positive effect Joe had on my life in so many ways, made my first surfboard, made the first pink one, put me in my first ad. Joe Larkin makes hot kids even hotter,” said inaugural world surfing champion, Peter Townend.

retail news CITY BEACH & BRIAN WALKER NOMINATED AT AUSTRALIA'S PREMIER RETAIL AWARDS GALA The National Retail Association (NRA) is the largest and most representative retail industry body in Australia. The NRA represent the interests of over 19,000 retail and fast food outlets across the country, as well as online.

The National Retail Awards acknowledge and reward individuals and businesses in the retail sector that are thought-leaders in their field, whilst promoting the diverse opportunities in an ever-evolving industry.

This year's awards gala will be held on September 27th, and will be bigger than ever with a suite of new category and individual awards plus the all new People's Choice Award.

For over 40 years, the Young Retailer of the Year Award has recognised and rewarded exceptional young talent under 25 years in the retail and fast food industry. It provides a platform to test, recognise, inspire and coach our future leaders and to support the professional development of the best young talent in retail.

The 2017 Young Retailer of the Year will win a prize pool valued at over $15,000. The runnerup will receive a prize pool valued at $5000.

This year Letitia McVey of City Beach and Annalisa Finocchiaro also from City Beach are shortlisted as finalists for the REST and Scentre Group Young Retailer of the Year.

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INDUSTRY NEWS

Meanwhile, ASB’s own regular contributor Brian Walker – Retail Doctor Group is also being awarded for his Outstanding Contribution to the Industry. Congrats Brian.

brought it back. We’re proud of our products and we’re stoked to offer them to people about to take off on adventures around the globe,” said Ridgway.

“Sitting in the X-Class for the first time was a real thrill. As soon as I saw it I thought it has the style and design of a Mercedes-Benz and the power and versatility that I want in a vehicle,” said Mick Fanning.

"There is always money involved, you have to compete," Mr Papalia told ABC Radio Perth.

"It did cost money but we don't reveal the amount because that could compromise future negotiations on this event or similar events."

WILSON RETAIL INDUCTED INTO ARA’S HALL OF FAME

GENERAL PANTS ON THE TEAR

“I have a very active lifestyle and as a surfer it’s pretty natural to have an interest in the ocean and the environment. MercedesBenz Vans have vehicles like the X-Class and Marco Polo Activity, which encourage people to get outdoors. I’m always trying to influence others to experience the thrill of nature. At the end of the day, I can’t wait to throw my boards in the back and take it down the beach.”

Former world tour competitor and West Australia local Taj Burrow welcomed the announcement, saying visiting professionals inspired him to pursue a career as a touring pro and they would continue to do so for young surfers of the region.

The 2017 Australian Retailers Association announced an entirely new retail Award – the ARA Hall of Fame which was awarded to three-time winner of the ARA Independent Retailer of the Year, Wilson Retail. ARA’s Executive Director and SBIA Board Member Russell Zimmerman was on hand to present Wilson Retail founder and CEO Anthony Wilson with the inaugural trophy. In a statement, the ARA said Wilson Retail is an operator known for unwaveringly holding its own in a space dominated by major brands.

In lieu of their previous wins and unmatched achievements, Wilson Retail have earned the prestigious Hall of Fame status – a first in the history of the ARA Awards.

AMAZON CONFIRMS DETAILS OF FIRST FULFILMENT CENTRE Amazon confirmed the details of the opening of its first Australian fulfilment centre in Victoria’s Dandenong South, as well as urging the Australian public to apply for its local jobs. Amazon announced that it will create hundreds of new jobs with the opening of its first Australian fulfilment center in Dandenong South. Amazon will begin recruiting immediately for a range of roles, including operations managers, pickers, packers, systems technicians, and HR specialists.

Amazon recently announced its intention to bring a retail offering to Australia and the opening of this 24,000 square metre fulfilment center is an integral early step in the move towards that goal.

“We are thrilled to be creating hundreds of new roles in Dandenong South,” said Robert Bruce, Amazon’s director of operations for Australia. “This is just the start. Over time, we will bring thousands of new jobs to Australia and millions of dollars of investment as well as opening up the opportunity for thousands of Australian businesses to sell at home and abroad through Amazon Marketplace.”

“This new fulfilment centre will stock hundreds of thousands of products which will be available for delivery to customers across Australia when we launch our retail offering,” said Bruce. “We will be focusing on offering our Australian customers low prices on a great selection of products and can’t wait to get started.”

“Amazon is the latest global company to choose Victoria for its Australian operations,” said Wade Noonan, Industry Minister for Victoria.

“The company’s decision to locate its centre in Dandenong South will create hundreds of local jobs and open up retail opportunities for thousands of local businesses.”

The company has put out a release to urge the Australian public to apply for jobs at Amazon via its website www.amazon.jobs

RIP CURL OPENS NEW SYDNEY INTERNATIONAL AIRPORT STORE Rip Curl opened a brand-new Rip Curl Flagship Store at the Sydney International Airport. Located in the main retail area of the T1 Terminal at Charles Kingsford Smith, one of Australia’s busiest airports, the store will offer everything travelers need for their trip, no matter where in the world they’re headed.

“We had a store in the Sydney International Airport about three years ago, and it was really well received,” said Neil Ridgway, Chief Brand and Marketing Officer for Rip Curl.

“Because of the airport restructure it was eradicated. But due to high demand, we’ve 14/ Australian Surf Business Magazine issue #79

Exciting times for General Pants in QLD with its Robina store moving to an all-new and improved site. “Massive big ups to our team who have worked around the clock to get the store looking bang on,” the company said via social media. Meanwhile, General Pants opened its 27th NSW store in Narellan which is located 60 kilometers south-west of the Sydney central business district.

sponsorship news SAMMY PUPO WINS 2017 QUIKSILVER YOUNG GUNS SURF According to Quiksilver roaming ambassador and former World Tour competitor, Matt Hoy, the rules for the 2017 Quiksilver Young Guns competition were simple; “You have to express yourself. We’re judging the moment.”

To earn the right to this year’s Quiksilver Young Guns final in Sumatra, entrants around the world were challenged to impress Quiksilver team riders Mikey Wright, Ezekiel Lau and Jeremy Flores with an air, turn or combo. After over a thousand entrants the panel narrowed the list down to just 30 standouts. Those 30 kids made final edits after which the general public voted for the top five. Jeremy, Zeke and Mikey added three wildcards into the mix, to make up an eightperson final to battle it out for bragging rights and the $10,000 prize purse.

This year’s Quiksilver Young Guns finalists were; Dwight Pastrana, Kyuss King, Kehu Butler, Sandy Whitaker, Sammy Pupo, Kael Walsh and Kade Matson.

In a hilarious winners’ ceremony, Matt Hoy paddled out with a $10k novelty check under his chest and met the finalists in the channel. After three years of making the Young Guns Final, Sammy Pupo finally won.

Everybody clapped and cheered and then got annihilated when the biggest set of the day steamrolled through. Sammy desperately tried to hang on to his check and the last board of his Sumatran quiver and inevitably snapped both.

After an explosion of laughter, the rest of the Young Guns put Sammy on their shoulders and chaired the young Brazilian up the beach. “This was the best contest ever,” he said from his perch, while his yard sale dragged behind him. Though, really, it never even felt like a contest at all.

Check: Young Guns Surf (#YGSurf)

MERCEDES-BENZ VANS ANNOUNCES MICK FANNING AS BRAND AMBASSADOR Fans of Channel 10’s award-winning ‘The Project’ would have caught the news that Mercedes-Benz Vans Australia announced that three-time World Surfing Champion and first-class human being, Mick Fanning as their latest brand ambassador.

Mick’s sled of choice will be the highly anticipated X-Class ute and comes weeks after Mercedes-Benz announced their new X-Class will launch into the Australian market in April 2018.

According to a statement released by the company, Fanning is the perfect fit for the Mercedes-Benz Vans brand and for the new X-Class ute. “Mick is world renowned for his resilience and drive in and out of the water and needs a vehicle with a progressive design that expresses cool modernity and matches his thirst for adventure.”

Managing Director Mercedes-Benz Vans Australia and New Zealand, Diane Tarr said, Mick Fanning is an ideal choice for MercedesBenz Vans and for the X-Class specifically.

“Australians are buying more utes than ever before, there were just under 191,000 utes sold here last year, representing 16 per cent of overall new vehicle sales. With this market growth, we believe there is a new kind of Ute buyer, not only a tradesman who needs a Ute for work but also someone who is active and wants a vehicle that also supports their lifestyle.

“Mick perfectly embodies the Australian lifestyle that the Ute has been designed for.

Surfing is a sport which requires a vehicle that can get you to the ultimate surfing spots and also provides sufficient cargo space and towing capacity to take all your boards and wetsuits with you. The X-Class has been designed with the Australian landscape in mind so it can take you wherever the waves are, without compromise and with all the gear you need.”

Follow the campaign via the hashtag #Xtraclass or Instagram @mercedesbenzvans_au

MARGARET RIVER PRO SET TO RETURN TO WORLD SURF LEAGUE CALENDAR The World Surf League will return to Margaret River for at least the next two years, ending speculation the future of the popular event was in doubt. WA's minister for tourism Paul Papalia confirmed the event which is said to generate $5.4million in "economic impact" to the region-will remain on the WSL's calendar at a recent press conference from Surfers Point, Margaret River.

World champions Stephanie Gilmore and John John Florence were among many of the touring professionals to throw their support behind the famed southwest tourist destination remaining on tour as its future hung in the balance ahead of this year's event.

Both men's and women's divisions will return with organisers retaining access to a surf break at nearby Gracetown as a second backup location. Mr Papalia said the event was a huge drawcard for local tourism and a chance to showcase the region's natural beauty.

"Along with the thousands of spectators, competitors and officials who head to Margaret River for the event, a massive global audience follows the world class action," Mr Papalia said.

"This is fantastic exposure for the region's stunning coastline, natural wonder and powerful surf breaks." Mr Papalia said the event was also a huge money-earner for the world-famous region.

"The Margaret River Pro delivers $5.4 million in annual economic impact to the south-west region," Mr Papalia said.

"Retaining the event is so important for WA's professional surfers and our next generation of champions."

A spokesperson for the World Surf League said the full schedule for the 2018 tour would be released in November. Mr Papalia said securing the event did require a financial commitment from the WA State Government but declined to comment on the amount.

"I think it's a well-warranted venue and the best stretch of coastline on Earth," Burrow said.

"It's insane for the kids to see their favourite surfers live, and to meet them firsthand is the coolest thing on earth. As a kid myself I'd be down at these types of event with my t-shirt and textas trying to get all the autographs."

WALK 4 WAVES WILL NOT RUN. 2017 ASB Greater Good Award Recipient Walk for Waves will not ‘run’ this year.

According to organiser Jade ‘Red’ Wheatley said that due to work commitments, he was forced with the choice of competing in the World Adaptive Surfing Championships later this year or hosting the fundraising initiative. Walk4Walves was tentatively scheduled to run along The Great Ocean Road in Victoria this year. “I’m extremely bummed but obviously can’t be everywhere.

I have long service leave next year so I look forward to picking up where I left off then,” said Wheatley.

finance news AUSTRALIA WEIGHS ON BILLABONG RESULTS FOR FY17 Billabong announced the financial results for the 12 months ended 30 June 2017 (FY17) and issued the following media statement. With regard to brand performance in Asia Pacific, the Company noted some fashion misses and execution issues, notably with brand Billabong.

For example, in women’s swimwear the region recorded a very strong result in FY16. The same assortment formula that worked in the prior year was repeated for the start of FY17, just as the market was shifting to new trends.

The U.S. assortment was on or ahead of those trends, but Australia lagged. The U.S. range was quickly tested in a set of Billabong stores in Australia and produced a stronger outcome.

The new assortment has now been rolled out to all stores. With consumers increasingly connected globally through social media and digital commerce, the Company sees an opportunity to capitalise on trends moving more quickly across markets.

CEO Neil Fiske said, “Early reads on the new seasonal assortment were encouraging.”

Despite a hiccup (as reported) with its Omni Channel partner NetSuit, the Company remains focused on its Omni Channel strategy saying that Omni was not just ecommerce, 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. Billabong expects to move quickly into deployment of its alternative Omni Channel provider and says Surf Dive ‘n’ Ski is scheduled to be operational by the end of this calendar year.

Overview: • Strong second half lifts FY17 Earnings Before Interest Taxation Depreciation and Amortisation excluding significant items and discontinued businesses (EBITDA) to $51.1 million up 2.8% year-on-year constant currency (cc) • Key metrics improve second half (H2) over first half (H1); comparable gross margins up in all regions in H2 year-on-year (yoy)

• Americas leads the turnaround with full year EBITDA up 46.9% cc (yoy) before global allocations (excluding significant items and discontinued businesses) • Operating cash flow improved by $31 million (yoy) • Non-cash impairment of $106.5 million leads to statutory Net Loss After Tax of $77.1 million • Net Loss Before Tax of $8.4 million (excluding significant items and discontinued businesses) Billabong Chief Executive Officer Neil Fiske said, “At the Annual General Meeting we said we were confident that our strategy would produce a strong second half and drive overall EBITDA growth for the year, despite a first half that was behind the prior period. We have achieved those ambitious goals. This result marks a turning point for the Company, and one on which we can build.

“We had three core objectives for H2: continue the turnaround in our largest market of the Americas, expand comparable gross margins across all of our regions – a key indicator of brand health – and reduce the Cost of Doing Business (CODB). We hit all three of those targets.

“The key to our ongoing success is the relevance of our brands. We continue to strengthen the connection with our customers, with global social media followership up 42% year-on- year to almost 37 million.

“EBITDA for the year of $51.1 million is up 2.8% constant currency and is less than a million dollars below the guidance range that we provided in November and affirmed again in February, allowing for the sale of Tigerlily. If not for the widely reported weak retail conditions in Australia we would have been well up in the range.

“These results reflect the tangible progress we are making in implementing our turnaround strategy in all regions, particularly in the Americas and Europe. The outcome validates our approach and provides a way ahead to address the performance in the Asia Pacific region, where there have been challenges in the broader retail market over the past year, particularly in Australia.

“This half represents the first time in three years that comparable gross margins have improved in every region, year-on-year. Gross margin expansion is a key driver of our profit improvement plan and margins were up 210 basis points for the half, and up 380 basis points in our largest market of the Americas.

“In the second half, EBITDA on a constant currency basis was up 50%, by far the best growth we have reported for any period since the recapitalisation in 2013.

“The result in the Americas, on top of a strong EBITDA lift in H1, gives us confidence that this region, often described as our greatest opportunity, has turned the corner.

“We simplified the business with the sale of Tigerlily and paid down debt. As a result Tigerlily is excluded from these results.

“Looking ahead, market conditions remain challenging, particularly in Australia, but we see opportunities for sustained earnings growth driven by further expansion in gross margins, acceleration of our direct to customer channels, strength in the Americas, growth in our RVCA brand, expanded global distribution, cost efficiencies and the ongoing benefits of our global platforms.”

Brands The big three brands of Billabong, RVCA and Element continue to expand their consumer engagement, with global social media followership for the Group’s brands, athletes and ambassadors up 42% yoy to 36.9 million.

This growing cohort of fans and consumers demonstrates a strong endorsement for the qualities represented by the brands, and positions them well for ongoing market success.

In 2017 the Group’s brands were recognised by

the leading surf industry awards in the United States (SIMA) and Australia (SBIA). Major awards included: United States: • Billabong: Women’s Marketing Campaign of the Year • Billabong: Women’s Apparel Brand of the Year • Billabong: Women’s Swim Brand of the Year Australia: • RVCA: Men’s Brand of the Year • Billabong: Men’s Marketing Campaign of the Year • Billabong: Women’s Marketing Campaign of the Year • Billabong: Women’s Brand of the Year Asia-Pacific The result in Asia-Pacific was shaped largely by two distinct factors: macro retail conditions in Australia, and some correctable brand execution issues.

The weak Australian retail market dragged on the result. Retail comparable store sales were down 5.0% and retail gross margins were behind FY16 by 210bps due to higher promotions and clearance markdowns. Asia Pacific EBITDA before global allocations dropped $9.2 million, or 28.3%, on an 8.0% revenue decline.

In wholesale, the macro factors that pressured the retail results also impacted wholesale accounts, leading to further market consolidation, cautious buying and fewer repeat orders. In Australia, wholesale margins, however, improved substantially over the year from 70 basis points down in H1 (yoy) to 450 basis points up in H2 (yoy).

Americas The Americas has been the top priority for the Group’s turnaround and has delivered a vastly improved set of numbers, highlighted by: EBITDA up 46.9% prior to global allocations.

• Billabong and RVCA, the two biggest brands, gain market share in core specialty channel • Ecomm most developed in the Americas – 7.4% of sales (excluding Sector 9) and growing rapidly • Inventory down 14.0%. In the face of challenging market conditions, the top-line was planned conservatively and intense focus was placed on controlling inventories, streamlining the organisation, reducing costs, improving owned retail, growing ecommerce, and expanding gross margins through the Group’s sourcing and concept-to-customer projects.

Europe The region delivered its fourth consecutive year of EBITDA growth, up 8.9% for the year before global allocations, on the back of a strong second half. The UK market overall struggled after the Brexit decision, and was a drag on comparable store sales which were down 2.5%. Europe’s sustained year-on-year improvements reflect a disciplined approach to strategy, improved quality of revenue, concentration on the big three brands, and leveraging of global platforms.

Platform initiatives Work undertaken on global platforms has underpinned much of the Group’s operational improvements. Global sourcing and conceptto-customer, which have been key focal points of the Group’s turnaround strategy, helped deliver strong improvements in gross margins.

This momentum should continue into FY18 with further margin improvements.

A third initiative, focused on reducing global logistics and distribution costs by $10 million per annum at maturity, is now well into implementation. The Group closed its Canadian warehouse, stood up consolidation centres in Asia, transitioned to a third party logistics provider in the US and developed plans for further distribution centre rationalisation to

be rolled out in the next two years.

The Omni initiative remains at the heart of the Group’s customer engagement focus.

Good progress has been made on a number of key initiatives, such as deploying a new digital business-to-business system and a more advanced merchandising planning and allocation system for retail.

New industry-leading partners have been appointed to accelerate progress in ecommerce, retail point of sale, and customer relationship management.

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.

The Company emphasised that Omni was not just ecommerce, 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. The value of an Omni platform is in the integration of previously unconnected parts of the retail system.

Rather than rely on one provider for that solution, the Company outlined an approach that utilises the best off-the-shelf software solution for each of the major components, and proven system integrators to bring those building blocks together. Each of the major partners is a leader in their field, but importantly they have worked together extensively on similar implementations. The solution design is cloudbased and scalable to countries and distribution partners around the world.

Between the experience base of these partners, the advancement of the technology, and the work already done, the Group expects to move quickly into deployment. For example, Surf Dive ‘n’ Ski is scheduled to be operational by the end of this calendar year.

Financial Summary • Total sales of $974.7 million were down 4.7% cc, excluding Tigerlily and Sector 9. However, comparable retail revenue (comparable Bricks & Mortar stores + ecommerce) was up 0.1%, and ecommerce sales overall grew 22.0% cc, excluding Tigerlily and Sector 9.

• Group EBITDA of $51.1 million was up 2.8% cc and 0.3% as reported. In the second half, EBITDA of $27.2 million was up 50.1% cc and 41.1% as reported.

• Inventory was down 7.5% cc (excluding Tigerlily) and gross margins improved 90bps.

• The Company reported a Net Loss Before Tax of $8.4 million, excluding significant items and discontinued businesses. After a predominately non-cash impairment charge of $106.5 million the Net Loss After Tax was $77.1 million.

Via Press Release

media news TYLER WRIGHT NOMINATED FOR COSMO’S SPORTS WOMAN OF THE YEAR Each year Cosmopolitan, one of the most popular and longest-running women’s magazines in the world, conduct the Cosmopolitan Woman of the Year Awards presented by Avon. According to Cosmo, the magazine scours Australia for inspiration, searching high and low, in every part of the country, for the women who they think have really made an impact – who are extraordinary. Cosmopolitan’s search for the Woman of The Year has led them to 2016 World Surfing Champion and Rip Curl athlete Tyler Wright.

Tyler is in contention for the coveted Sportswoman of the Year Award where she’ll face tough competition including Paralympic

snowboarder Joany Badenhorst, cliff diver Rhiannan Iffland, rugby sevens player Charlotte Caslick and supercar racer Emily Duggan.

Finalists in the respective categories go into the running for the major award of Cosmopolitan Woman of the Year, where Tyler will face strong competition from other categories including Entrepreneur, Game Changer, Performer, TV/Radio Personality and Fashion Designer of the Year. Not surprisingly, social media is a hotly contested category, broken into subcategories of fashion, beauty, fitness and travel, social media, Woman of the Year.

To vote for surfing and for Tyler to win the prestigious Sportswoman of the Year Award head over to http://www.cosmopolitan.com.au/ women-of-the-year/woty-awards-2017-vote-23413

environment news SURFTECH JOINS SUSTAINABLE SURF’S ECOBOARD PROJECT Surftech has announced a partnership with non-profit Sustainable Surf to verify Surftech boards as Ecoboards. The result of the partnership will mean that Surftech’s surf and paddleboard range include Sicomin GreenPoxy bio resin, with more than 25% plant-based content; Purpose-moulded EPS cores, reducing foam waste; and Bloom DeckPads, made with algae from freshwater sources at high risk of algal blooms.

Sustainable Surf is a California-based 501(c) (3) non-profit organisation focused on transforming surf culture into a powerful force for protecting the ocean playground.

The organisation takes an integrated “systems thinking” approach with their innovative programs and campaigns, which engage both individuals and businesses together in partnership to solve the most pressing environmental issues facing our oceans.

Commenting on the partnership, Kevin Whilden, Co-founder, Sustainable Surf said “We’re stoked to be working with Surftech, and excited to see a growing number of their boards carry the Ecoboard Project logo.

“Surftech is a name that surfers and paddlers often associate with technology innovation and durability, and it's great to see the emphasis they are now placing on innovative ways to use renewable materials, reduce waste and improve energy use. Sustainable Surf conducts an annual audit of Surftech’s factory to verify these sustainability commitments and has given Surftech the stamp of approval."

According to Dan Watts, Surftech’s Product Director, “Surftech is very conscious about making products with ‘environmentallyfriendly’ materials whenever possible. We are proud to partner with Sustainable Surf and join the Ecoboard Project.”

FIREWIRE MOVING TOWARDS ZERO WASTE With Firewire's goal to create zero waste in its factory by 2020, the company has taken a major step forward announcing the inclusion of Rerez in a limited number of Timbertek surfboards that will arrive at surf shops soon in Australia, before anywhere else in the world. Rerez is a recyclable epoxy resin that has a number of important properties in that it’s recyclable and will eliminate waste in Firewire factories by preventing squeegees and stir sticks from ending up in the trash.

Firewire says it will bring its surfboard production closer to a ‘cradle to cradle’ solution. Any fiberglass, carbon or EPS product made with Rerez epoxy can be submerged into a concentrated vinegar 15/

INDUSTRY NEWS

The primary purpose of this new role is to ensure there is high quality daily training environment, coaching, and competition solutions available for nationally identified elite athletes who will form part of the Australian Olympic Squad to be announced in January 2018.

solution that dissolves the Rerez epoxy into liquid and separates it from the fiberglass, carbon or EPS product it was laminated to.

The dissolved Remez epoxy can then be turned into new products using injection moulding, including products like sunglass frames or surfboard fins.

The role will work closely with high performance coaches alongside nationallyidentified surfers across the network, and will lead the Australian Olympic Surfing Team at the key benchmark event the 2020 Tokyo Olympic Games.

Using Remez means Firewire surfboards built with the product are now partially recyclable. And the tools used to make surfboards with Remez in its factory now have a longer lifespan.

The company says it intends to expand its use of Remez epoxy into their LFT and Helium surfboards in the coming months.

All boards made with Remez will show the Remez lamination seen above the fin box on each board.

Stephanie Gilmore has re-signed with Creatures of Leisure.

MICK FANNING AND TYLER WRIGHT JOIN FORCES FOR WILDARK Just before the World Tour event at Jeffrey’s Bay kicked off, three-times World Champion Mick Fanning and reigning Women’s World Champion Tyler Wright decided to take a trip to help support and learn more about up-and-coming conservation organisation WildArk –at the Pridelands Conservancy, just outside the town of Hoedspruit, South Africa.

For Mick, an ambassador for WildArk, this was his second trip with the organisation.

Just last year he travelled to Alaska to help raise awareness of the pristine Bristol Bay wilderness, under threat from Pebble Mine.

For Tyler, it was a first-time and one-of-akind experience.

The journey started on Pridelands, a 4500-hectare former buffalo hunting farm that WildArk founders Mark and Sophie Hutchinson of Australia are rehabilitating into a wildlife conservancy. The couple’s mission is to drop fences into the adjacent reserve to extend the wildlife corridor of the Greater Kruger region, in line with the company’s mission to create more space for biodiversity worldwide.

“Coming to Africa to see Pridelands was something I had dreamt of,” said Mick.

“To be able to see for myself the difference between this property that hasn’t had elephants on it for 60 years, versus the other more natural systems next door was eyeopening. It’s crazy to think that it’s only some wire and a few wooden poles separating the wildlife on one side of it from this pristine wilderness area on the other and it’s time to let them all in.”

“The focus of this trip was to showcase the different aspects of South African conservation, both the opportunities and challenges,” explained WildArk founder Mark Hutchinson. “We hoped to take the athletes on an educational, fun and inspiring journey, meeting the people on the ground who are doing what they can for wildlife.”

team news STEPHANIE GILMORE RE-SIGNS WITH CREATURES OF LEISURE Creatures of Leisure announced that sixtime WSL world champion and long-term team rider Stephanie Gilmore has re-signed with parent company Leisure Collective for another three years.

“I’ve been with Creatures of Leisure for most of my career,” said Gilmore, “…and all these years later I’m still as happy about it as I was when I first signed. As a grom you always want to ride for a brand that has the cream of the crop on the team, and so I’ve always 16/ Australian Surf Business Magazine issue #79

loved being alongside guys I consider idols, from Mick Fanning to freesurfers like Jay Davies and Mitch Coleborn.”

Whether winning multiple world titles or working on award-winning film projects like last year’s ‘The Tempest’, travel is a constant in Gilmore’s life, and Creatures of Leisure are proud to have Gilmore on board to road test the range.

“Having top quality accessories is really important. As the products keep getting better it means I can travel the world without worrying about my equipment getting damaged, which has no doubt been a big part of my success. I’ve had an incredible relationship with Creatures of Leisure throughout my career, and I’m looking to many more successful adventures in the years ahead!”

Creatures of Leisure are thrilled to continue their partnership with Gilmore, and will release a new signature tail pad in surf stores in the coming months.

RIP CURL SIGNS 16-YEAR-OLD CROSBY COLAPINTO Talent clearly runs in the Colapinto family, with older brother Griffin Colapinto on the verge of cracking World Tour qualification.

16-year-old Crosby Colapinto, who has two USA U/16 championships under his belt, has been making his way up the US Junior rankings in the last few years. Hailing from San Clemente, his straightforward, fun approach to waves has caught the attention of Rip Curl, who have officially added him to their roster. Crosby recently won fellow San Clemente local Kolohe Andino's T-Street Invitational, which secured him a spot in the trials for the upcoming Trestles 'CT event.

There is no denying the kid has immense talent and a bright future ahead.

on the move DOUGALL WALKER TO EXIT VOLCOM Dougall Walker is set to leave Volcom on December 31st this year with Alison Thomas transitioning into the role of General Manager of the Australian business.

Dougall told ASB the reason for exiting the business was due to a global movement to streamline operations. Having held multiple management roles with Billabong and Volcom, Dougall said he’ll probably take a 6-month break and then look for new challenge. Commenting on Alison Thomas appointment as GM for the local business Dougall said “Alison is a star and has worked in many aspects of the business, so she understands it very well. The staff and brand are in very good hands."

Dougall’s resume is second to none and to fully acknowledge his impact on local industry, we’ll have an extended feature interview in the October issue of ASB Magazine.

BENNETT BACK AT BILLABONG Billabong Australia announced the appointment of (former Volcom Sales Manager) Luke Bennett back to the Billabong Leadership team. Bennett will report to Mark Rusher, Billabong ANZ Brand Manager and in his role, will work with the Sales team & Merchandise teams to ensure that Billabong’s merchandise strategies are aligned to both marketplace needs and global brand position.

Bennett is no stranger to the Billabong Group, having worked in sales roles across Billabong, Nixon, VZ and as National Sales Manager for RVCA, prior to taking up his most recent role with Volcom as Sales and Marketing Manager.

“I am excited to have someone with Luke’s experience in the team. He has a proven track record and is well regarded in the industry. It is a positive result that our sales and brand strategy have been able to attract talent like Luke to our business,” said Mark Rusher.

“To be back working for Billabong as part of the leadership team in a new role is something I’m super excited about. The opportunity to work with Mark and the global team is a massive drawcard – I can’t wait to get started,” said Luke Bennett.

“It’s great to have Luke back with Billabong.

He’s a guy who a lot of people have worked with in the past, and have a huge amount of respect for. Personally for me it will be great working alongside LB again, he’s someone who brings a lot to the business in both a professional and personal sense,” said Billabong Group General Manager Asia Pacific Paul Burdekin.

BEDE DURBIDGE ANNOUNCED AS SURFING AUSTRALIA ELITE PROGRAM MANAGER As reported, former Pipe Master, Triple Crown Champion and long-time World Surf League (WSL) competitor Bede Durbidge has accepted the role of Surfing Australia Elite Program Manager in a major boost to Aussie medal hopes at the 2020 Tokyo Olympic Games. After coaching Hawaiian John John Florence in his world title winning 2016 campaign, Durbidge said his focus is now building on already strong relationships with Australian athletes and coaches with gold medals the goal.

Durbidge, who incredibly returned to elite level competition at the beginning of the 2017 season after a life-threatening injury suffered in late 2015 at the Pipe Masters, will begin his new role in early 2018 and will officially retire from competitive surfing at the conclusion of the Australian WSL leg in Margaret River in 2018.

“I'm honoured to take on this role as Elite Program Manager. Coaching is something I'm so passionate about and to be able to work with Australia's best athletes and coaches, I'm just relishing the opportunity.

I feel I have fulfilled my competitive surfing dream and next year will be perfect timing to transit into this role. It's a very exciting time in surfing and the Tokyo Olympics will come around before we know it. Australia has a great chance of winning the first gold medals in surfing so preparation will be key over the next few years,” said Durbidge.

Three time Men’s World Champion Mick Fanning was stoked to hear the news his good friend and tour mate Durbidge would play a critical role in the Australia’s Olympic history come 2020.

“I’m extremely happy that Bede is the new Elite Program Manager. Knowing Bede on a professional and personal level I think he's the perfect person for the job. He’s been one of the most dedicated athletes on tour and an amazing tactician so he'll be able to help out in so many different areas. Bede is very willing to do the hard yards and will cover all bases when it comes to planning all programs for our athletes. He’s a man I respect immensely for many different reasons and I think Australian surfing will feel the benefits of having him on board,” said Fanning.

Surfing Australia CEO Andrew Stark said someone with Durbidge’s credentials and personality were perfectly suited to the newly created role.

“This is a critical role that will be instrumental towards our Olympic campaign. Bede is an amazing athlete and coach and has immense credibility and respect from all the Australian World Tour Surfers and their respective coaches and will be an amazing asset to our highperformance team. Bede will be the key and constant communicator with our Olympic Squad to ensure that our Australian team athletes are at their absolute best in Japan in the moment of the first ever Olympic surfing Gold Medals,” said Stark.

Surfing Australia Chair and seven-time women’s World Champion Layne Beachley said Durbidge’s appointment would only bolster Surfing Australia’s strong elite program as we head for success in the Japan Olympics.

“This is a major coup for Surfing Australia, our High-Performance program and our athletes as we edge closer to the Olympic Games in 2020. To achieve success, you must surround yourself with the best and Bede is the perfect choice for the role given his competitive record, coaching success, and resilience to overcome life-threatening injuries. Bede is a wonderful addition to the team and I am excited to work with him to achieve our shared vision of Gold in Tokyo,” said Beachley.

Australian Olympic Committee CEO Matt Carroll was quick to back Durbidge’s appointment and the direction Surfing Australia will now take towards Tokyo 2020.

“Surfing is one of five sports added to the Tokyo 2020 Games and this is a great appointment to kick-start surfing’s Olympic high-performance program in preparation of the sport’s Olympic debut in just under three years’ time,” said Carroll.

“The sport has long been ingrained in Australian culture, which has helped us to produce numerous men’s and women’s world champions. We now look forward to seeing our Australian surfing contingent continue to succeed under the guidance of Durbidge and the new elite program put in place by Surfing Australia.”

This important announcement comes only weeks after Surfing Australia completed an extensive and rigorous review of its highperformance program with a view to ensure the organisation is set up to maximise its chances to achieve the first ever surfing Gold medal in the 2020 Olympic Games.

FLITTON TO THERMAL DESORPTION TECH PEARL GLOBAL LIMITED Former Billabong Brand Manager Andrew Flitton has joined WA-based Pearl Global Limited, an Australian Securities Exchange listed company applying unique, nextgeneration technology to cleanly convert waste into valuable products. The Thermal Desorption Technology leader specialises in tyre recycling. Flitton joins the tyre tech, as Media and Investor Relations at Pearl Global Limited.

“After leaving Billabong in 2012, I was determined to do something different from my previous 30 years in the surf industry.

"To change the world" is probably too big of a statement but to do something that improved the planet was what I hoped for,” Flitton told ASB.

The company is targeting growth in Australia initially through the establishment of multiple sites close to the suppliers of tyres, as well as exploring opportunities in international markets with favourable regulatory environments. The technology has the potential to be extended to process other waste products including treated timber, contaminated soils and plastic bottles.

“From a media and communications perspective with Pearl Global I'm qualified to do that role but investor detail is not my expertise. On investor relations, I'll be the conduit to ensure enquiries get dealt with and as the business grows, we'll have a dedicated financial person who will be a specialist in that field. With 50 million tyres being discarded every year in Australia alone, without the existing stockpiles, that's a big waste stream that needs to be addressed.”

Flitton says that whilst possible surfboard and wetsuit recycling is achievable its some time off from happening as the company is fast growing in other sectors.

With environmental concerns rising and governments seeking or mandating solutions for waste, Pearl is uniquely placed to offer a solution that is both environmentally sound and commercially viable.

“Pearl Global is at a very early stage of development, similar to what Billabong was when I started back in 1990. The range releases back then were with Gordon and Rena Merchant, Dougall Walker, Greg Woods the production manager, and five sales people, and then later became major events with 100 people.

Pearl recently achieved Australian Securities Exchange listing through the reverse takeover of listed oil mining group company, Citation Resources Limited. The company name is changed to Pearl Global Limited and it is recapitalised to enable the construction of the first full-scale site and the commencement of commercial tyre recycling operations.

“I’d have to say I miss the surf industry, I've got a lot of friends still in it and I always loved the brother/sisterhood of the industry,” said Flitton.

Flitton told ASB that there’s ‘a lot going on’ while the company is being relisted whilst simultaneously opening its first QLD plant.

Pearl Global's thermal desorption plants convert rubber into clean fuels, offering a more environmentally-friendly method of disposing of used tyres amongst other wastes.

Sporting high-performance specialist Kim Crane, who has a lifelong connection with the ocean through surfing, outrigger canoe racing and stand up paddle-boarding and who is also a former member of the Australian Women’s Hockey Team, has accepted the position of Surfing Australia’s National High-Performance Director, further bolstering Australian surfing’s Olympic gold medal ambitions heading into the 2020 games in Japan.

Pearl’s technology represents a significant advancement on other tyre recycling processes and is currently focused on processing end of life rubber including waste tyres. It offers portability through the equipment being transported by truck and tray load capacity, all the while operating in a low emission environment with no hazardous by-products.

In an article appearing in The Australian it was reported that Pearl’s processing plant will fit within a sea container and can be transported to the site of the tyres. Pearl estimates suggest that each recycling site could generate around $5.8 million in revenues on operating costs of just $1.75m.

It is estimated that the world community currently disposes of more than 1 billion tyres every year. Tyres are not naturally degradable and governments are increasingly seeking solutions for dealing with the waste.

“One of the best things I learnt during my time at Billabong was the fiscal and reporting responsibilities required as the Sales and Marketing GM. Doing reports to guys like Shannan North and Scott Govenlock forced all of us to know what we were talking about. This scrutiny taught us to produce and analyse financial forecasting, business structure and to recognise profitability through pages of detail,” admitted Flitton.

SURFING AUSTRALIA APPOINTS NATIONAL HIGH-PERFORMANCE DIRECTOR

Tailor-made for the position, Crane not only has a genuine passion for surfing, but extensive knowledge and industry experience in high performance sport. Her impressive background includes involvement in multiple Olympic campaigns, sports administration and competing as a topflight athlete.

Crane’s recent role as the Australian Institute of Sport (AIS) Performance Manager has been the perfect primer to her new role. At the AIS, Crane was responsible for leading the engagement of key internal and external partners to develop high quality, effective high-performance plans and strategies in order to increase the likelihood of achieving and sustaining performance targets.

“The vision and values, and the quality of the people at Surfing Australia attracted me to the role. I look forward to starting this journey working beside Andrew Stark (CEO), Bede Durbidge (Elite Program Manager), HPC staff, the State bodies, and all the partners in the national sport network and surf industry " said Crane.

Surfing Australia Chair Layne Beachley was thrilled by the announcement and commented: “Kim’s wealth of Olympic knowledge, sporting experience and passion for surfing makes her the perfect candidate to take on this position. Obviously Surfing Australia has wholeheartedly embraced the

challenge of preparing for a new and exciting chapter as an Olympic sport and Kim’s appointment strengthens our team and demonstrates our commitment to providing the best opportunity for our athlete’s success on the world stage.”

In Brief: • Former Quiksilver Executive Harry Hodge has started a new position as NonExecutive Director at SurfStitch • Tom Bennett has started as Australia / Oceania Media & Communications Manager at World Surf League • Chris Chamberlain is the new HighPerformance Centre Manager at Surfing Australia Ltd. Prior to this Chamberlain was Global Brand Manager at Cobra International for the past 5 years.

• Former Billabong Accessories designer James Hodge has a new position as Category Manager - Apparel, Footwear & Accessories at Oakley.

• Matt Macaulay has a new position as Buyer at Ozmosis (Rip Curl Group) after a long career at Peninsula Surf Centres.

etail news SURFSTITCH ADMINISTRATION – CROWN FINANCIAL RESPOND The weight of two class actions, a legal dispute with CoastalWatch’s parent company Crown Financial and an investigation by ASIC have proved too much for the embattled SurfStitch Group, with the company calling in administrators for its listed and holding companies, citing the ‘adverse impact’ mounting legal action was having on its cash flow position.

However, SurfStitch's operating businesses - its online stores SurfStitch, SurfDome and Swell, as well as Magic Seaweed, and Stab - are not subject to the administration and will trade as usual. Responding to yesterday’s action, Crown Holdings’ Kim Sundell was blunt, telling ASB that “It was inevitable given the conduct of the Board. They continued to cover up the wrongdoing of the company,” adding “You can’t defend the indefensible.”

FTI Consulting were brought in as administrators of ASX-listed SurfStitch Group and SurfStitch Holdings, ending months of uncertainty about the financial position of the company.

"These challenges each bring high levels of uncertainty and material costs that are entirely outside the control of the group operational businesses," SurfStitch said in a statement to the ASX. Kim Sundell refutes that the class legal actions are the reason SurfStich has gone into administration.

“It is a direct result of the criminal and corporate wrongdoings by the company its directors, officers and advisors,” claimed Sundell.

“Think about it in these terms, the legal actions are a direct result of Surfstich’s ongoing financial fraud and gross negligence. Legal bills don’t cause a $500m company to go into administration. The class actions I believe will be successful and the final claims will be as high as $300m.”

Sundell says that the only way S urfStich is going to be able afford the mounting legal challenges is through Directors and Officers Professional Indemnity Insurance.

Sundell alleges that auditors KPMG helped SurfStitch through ‘accounting alchemy’ and failed in the most basic duties as Auditor. According to Sundell, “The structure was that they sold content to a third party and took the Net Present Value of that revenue and counted it as profit today. Even though they knew it to be a contra deal (so no impact to the bottom line) they ignored this and only looked at the revenue side and ignored the expense side.”

SurfStitch management assured customers will continue to receive their merchandise as usual and suppliers will be paid. Those claims, however, sparked a warning from consumer watchdog Choice for customers to be cautious when dealing with the company.

The appointment of administrators will stay two class actions against SurfStitch that could eventually result in heavy damages awards. The company forecast in May that it could make a $11.5 million loss this year.

Chairman Sam Weiss said the company had reluctantly made the appointment due to “several significant external challenges” including the class actions and ASIC probe.

“This has brought high levels of uncertainty impacting the companies’ trading position,” said Mr. Weiss.

“The administrators have been appointed with the intention of preserving value for stakeholders in the business while recapitalisation options are pursued.”

FTI Consulting corporate finance and restructuring leader John Park said the stay of legal action would provide the group with breathing space to focus on the peak Christmas trading period.

However, SurfStitch’s pursuit of a Deed of Company Arrangement could provide the legal mechanism that helps the embattled SurfStitch Group to sell off the assets and leave the liabilities.

More is expected to be delivered at a creditors’ meeting to be held on September 5th and Sundell speculates that the likely secured creditors will be the main brands involved, and asserts that the appointment of administrators was not unexpected as suppliers were already cutting credit lines.

Full coverage in the September issue of #ASBMAG 17/

OVERSEAS NEWS

u.s. news

salute his leadership and vision in making Olympic surfing a reality.”

“It is an honour for me to receive this award.

Duke Kahanamoku’s dream has now been achieved. We’ve come a long way since the ISA was founded in 1964, during the inaugural World Surfing Championship in Australia,” said Aguerre.

GENERAL PANTS OPENS SOHO STORE General Pants’ expansion continues in the USA, with the opening of its SoHo store in New York. The move to the US east coast follows GP’s west coast store on La Brea Avenue in West Hollywood, opened earlier this year. Dubbed “The Local” By General Pants Co opened its doors at 26 Greene St, New York, NY 10013, USA. According to GPs there’s a high demand for its Australian portfolio of brands including Ksubi, Insight, Zanerobe, Neuw, Rolla’s, The People Vs, Arvust, Spencer Project, Standard and Alice In the Eve amongst others. The mood — both economic and political — in the US might not make it the most appealing time for Australian brands to be opening stores there, but General Pants is pushing ahead with its expansion with its second store, on Howard Street in New York’s SoHo. “It’s hard not to be transfixed by it all,” General Pants chief executive Craig King told The Australian about President Donald Trump’s term in office.

“It’s a little bit unclear where the Trump administration is going to land. So, building a business strategy on the back of (Trump’s turbulent time in office) is a little complicated. Things will settle down. He’s pro-business, but obviously he’s US-centric, which may not be a great thing ultimately.

But time will tell.”

Despite the political situation, King believes that the similarities between American and Australian street style made the US an obvious choice for its first big international push, which it felt was required given the finite nature of the local market.

The move is not without a certain irony.

“Australian youth fashion is heavily influenced by American culture these days.

And in a reciprocal fashion, we’re designing fashion influenced by America and then selling it back to America.”

The General Pants approach is a unique one in this instance. The two US stores sell all the Australian brands that are sold here — including Zanerobe, Neuw Denim and Rollas — but they also act as wholesale hubs for the brands owned or distributed by General Pants, including Ksubi and Insight.

King says the wholesale sales are already “exceeding expectations quite considerably” out of LA, particularly for Ksubi, which has had a chequered history since it was launched in 1999. The brand became better known for its stunts — such as sending rats down the catwalk at Australian Fashion Week — and for financial and supply chain mismanagement.

General Pants took over its global distribution three years ago.

“The founders of that brand did great job building brand equity,” King said.

“What we’ve done is bring financial support and structure — all the things they weren’t so good at. Maybe we should have got together earlier. There’s incredible demand for the brand.

“We’re experiencing record sales for the brand at General Pants (in Australia) and internationally the retailers are falling over themselves to get hold of it.”

The next 18 months will be spent testing the pure retail waters, too, to decide whether the company should open more stores on US soil.

18/ Australian Surf Business Magazine issue #79

“I want to thank SIMA and everyone involved in this award for honouring the ISA and I’d like to share this award with everyone who helped me and the ISA in making this Olympic dream a reality. The Surfing community came together to support this historic common cause, and for that I will be eternally grateful. The Surf and Beach Festival to be held at Tokyo 2020, will allow us to share our values, lifestyle and culture with billions around the world. What a great way to spread surfing’s Aloha in an unprecedented way.”

Kelly Slater's surf ranch

“It’s definitely on our horizon, (but) the US is a big market, and it’s a fairly strained economy in America at the moment,” he said.

The filings said the Cambuhy-led group will pay 14.25 reais for each Alpargatas common share and 11.40 reais for each preferred share.

“We’re not going to be gung-ho and open 50 stores.

São Paulo-based Alpargatas makes Havaianas one of the world’s leading manufacturers of flip flops and its shares had surged 56 percent this year on expectations of a sale. Alpargatas also manages a wide array of Brazilian fashion brands including beachwear brand Osklen.

“We’ve got a toe in the water in LA and New York. Our job now is to read sales — read the tea leaves and discern whether it’s appropriate to open more stores.”

KELLY'S SURF RANCH WILL OPEN TO THE PUBLIC Last month the Kelly Slater Wave Company (KSWC) filed an application to transform the artificial wave park owned by the World Surf League (WSL) and plans to run a yearround operation open to the general public from 6 am to 11 pm, in Northern California.

The Surf Ranch developed by Kelly Slater and his engineers aims to host six yearly surf competitions with live music and a camping site.

According to the application, these events will attract around 8,000 people over a four-day period. The company plans to hire 50 people to run the 700 yards long and 70 yards wide surf park.

The Leemore Surf Ranch was announced and publicly unveiled in December 2015.

Since then, it has become a closed R&D man-made surf center with very few guests.

In March 2017, the KSWC filed an application to build an 80-acre project in Palm Beach, Florida.

The WSL has not yet confirmed if or when the surf pool will be included in the Championship Tour (CT) or Qualifying Series (QS) calendar, but several sources suggest they are likely to be before the end of the year.

BRAZIL'S BANKING FAMILIES TO BUY HAVAIANAS PARENT CO. FOR US$1.1 BILLION J&F Investimentos SA has agreed to sell a controlling stake in Havaianas parent company Alpargatas SA to the investment firms of Brazil's most prominent banking families for 3.5 billion reais ($1.1 billion), according to securities filings. Under terms of the deal, Cambuhy Investimentos Ltda, Itaúsa Investimentos SA and the fund Brasil Warrant will split J&F's 86 percent stake in Alpargatas, the filing said. Both had bid 3.3 billion reais for Alpargatas before talks appeared to have collapsed.

The much-awaited sale is the first by J&F, the holding company overseeing the fortune of Brazil's billionaire Batista family, since it was slammed with a record-setting leniency fine linked to a corruption probe. Proceeds from the sale will go to help repay J&F's debt and speed up payments on the 10.3 billionreal fine.

However, the loan is under investigation

by Brazil's audit court TCU for potential irregularities. The brothers signed a leniency deal in May after admitting to bribing almost 1,900 politicians to obtain cheap government loans for their businesses.

The Batistas had acquired Alpargatas in December 2015 from construction conglomerate Camargo Correa SA, which was ensnared in the same scandal "Operation Car Wash". In addition to the Caixa loan, the Batistas will also have to pay for financing they took to buy out minority shareholders.

FERNANDO AGUERRE HONORED AT ANNUAL SIMA WATERMAN’S WEEKEND International Surfing Association (ISA) was honored to receive the Special Recognition Award at the annual Waterman’s Awards, hosted by the Surf Industry Manufacturers Association (SIMA) in Laguna Beach. The prize, presented to ISA President Fernando Aguerre, was awarded by the world’s foremost gathering of surfing industry leaders for the “unwavering and successful efforts in getting Surfing included in the Tokyo 2020 Summer Olympic Games.”

At the 129th IOC Session during Rio 2016, the announcement was made that Surfing would be included on the Olympic Programme for Tokyo 2020 after decades of hard work and dedication from the ISA and its president. SIMA honored this work, as well as President Fernando Aguerre for “tirelessly spearheading” the Olympic Surfing movement.

Commenting on the Award, Paul Naude, SIMA Environmental Fund President and CEO of VISSLA, said: “Having Surfing included in the Olympics is a gamechanging moment for the sport, culture and lifestyle. The Tokyo 2020 Games will give Surfing a global platform and allow the world to see not only the incredible athletic performance of the sport, but also our amazing culture, values, style and passion.

“Fernando has worked tirelessly and with his trademark passion for over 20 years for the cause of Olympic surfing. His and the ISA’s efforts have been against no small odds and often in the face of skepticism. We want to

MICK FANNING INDUCTED INTO HUNTINGTON HALL OF FAME The Surfers’ Hall of Fame and Surfing Walk of Fame pay tribute to surfers each year, during the U.S. Open of Surfing, with Main Street shut down for the Surfing Walk of Fame induction ceremony organized

by Jack’s Surfboards. Mick Fanning and Bethany Hamilton were awarded top honours with the Huntington Hall of Fame Induction.

Fellow Australians and Walk of Fame honourees include Barton Lynch (Surf Champion) Pam Burridge (Woman of the Year) along with Jeff Hakman (Surf Pioneer), Jim Jenks (Surf Culture), Timmy Reyes (Local Hero), and the Huntington Beach High School 50th Anniversary Coaches — Bill Garland, Bruce Gabrielson, Rob Hill, Chuck Allen, Andy Verdone (Honor Roll).

The inductees were honored with a plaque embedded in the granite on the sidewalk along Main Street.

Coincidentally, both Fanning and Hamilton shot to international recognition following shark attacks. Fanning was awarded the Surf Industry Manufacturing Association Waterman of the Year award in Laguna Beach.

Barton Lynch – the 1988 World Champion – a member of the Australian Surfing Hall of Fame, had 17 championship wins during his 15 years on tour. He won the OP Pro – the U.S. Open predecessor – in 1987 and 1991.

The articulate Aussie headlines the group following his recent move to commentator for World Surf League events.

Woman of the Year went to Hall of Fame Inductee Pam Burridge, who achieved the most votes collectively from the categories of Surfing Champions, Surfing Culture, Surf Pioneers, or Local Heroes. Burridge joins fellow Australian’s Phillis O’Donnell and Layne Beachley with Huntington Walk of Fame honours.

Burridge, 1990 World Champion and 15-time World Tour event winner, shined brightly with the stoke of a grommet as she accepted the award, at the 24th anniversary of the ceremony.

“Surfing has saved me from a lot of things,” Burridge said. “But it doesn’t fix everything.

“I let surfing fuel me throughout my career, but it’s not just about me.

“I love these types of gatherings and sharing the waves with others,” said the 52-year-old Burridge who now runs the Pam Burridge Surf School at locations such as Mollymook, Narrawallee and Bendalong.

More information http://www.surfingwalkoffame.com

GLOBE LATEST CABIN STORE OPENS IN HERMOSA BEACH, CA

Main competitor Specsavers have said the merger needed to be viewed with caution.

One week after opening their store in Hong Kong, Globe opened its latest flagship “cabin” store in Hermosa Beach, California.

To celebrate, Globe skate and surf team riders, Mark Appleyard, David Gonzalez, Damien Hobgood, Paul Hart, Sammy Montano, Eric Geiselman, and skateboard legend Rodney Mullen were all on hand at the launch party on August 11th in Hermosa Beach. The event featured music by Josh Landau of the Shrine, Globe’s collaboration “Strange Paradise” beer with King Harbor x Select beer and a gallery exhibition by Innocnts artists Jose Aurajo, Rye Purvis and Stacy Kranitz.

Specsavers retail director Brenda Thompson said: "Mergers are a continuing trend in optics, but this is a significant development which will result in huge supply chain and retail implications for the industry and consumers worldwide".

Globe Founders Stephen Hill and Matt Hill attended the opening. Matt Hill commented “The Southbay in Los Angeles has been our home for Globe for over 20 years here in America, and so we couldn’t be prouder to launch our first U.S. retail store right here in Hermosa Beach. We look to place our stores in culturally relevant locations for the Globe brand with its skate and surf roots, and Hermosa is a perfect fit for us. The local support for the cabin launch proved that.”

The design of a Globe Cabin pays homage to the Arts and Crafts movement founded in the 19th Century by Elbert Hubbard (not the scientologist). The philosophy of Hubbard was to make consumer products but with craft and purpose. Hubbard reminded people that what they were buying needed to deliver more than a thrill of a purchase and had to deliver some emotional connection to the lifestyle they valued.

He was the world’s first hippy.

Globe Cabin stores are located globally in neighborhoods where they can make a real cultural connection to the locals and their scenes, places where Globe’s deep 30-year boardsports heritage can resonate and contribute.

Globe Cabin stores are currently located in Sheung Wan, Hermosa Beach, Hossegor, Canggu, Kuta, Burleigh Heads, Bondi Beach, Torquay, and St Kilda.

View more at http://www.globebrand.com @ GLOBESTORE_HERMOSABEACH

BRIGHT SPOTS EMERGE AT US CORE STORES The big boost in April sales due largely to the shift of the Easter holiday into April kept second quarter year-over-year sales growth in the black. Overall sales growth for all product categories tracked in the ActionWatch same-store retail panel was up 0.2% in the second quarter compared to the same time period last year. The most recent quarter was a big sequential improvement from the 12.4% decline the panel recorded in the first quarter of 2017.

Wetsuit sales growth was again the big winner with sales up nearly 20% compared to Q2 2016. Nearly all wetsuit classes experienced strong year-over-year sales growth, including the largest wetsuit class— full wetsuits—with sales up more than 22%.

Apparel sales were up 1.5% for all genders while male apparel sales were up by 1% and female apparel up by nearly 3%. Sales of wovens, polos and “other shirts” (e.g. knit crews) were up along with denim pants, women’s swimwear and skirts. Tanks/ sleeveless shirts performed poorly along with women’s non-denim pants.

Women’s swimwear is one of the largest apparel classes in the ActionWatch stores and also had one of the largest Q2 sales increases with an 18.3% sales gain over the same period last year.

Hardgood sales were essentially flat in Q2 with single-digit sales declines in both surf and skateboard hardgoods, but positive

"It is unlikely that the impact of the merger will be felt by consumers straight away but we will watch with great interest how the new organisation will arrange itself."

Source Stuff Co.

euro news

Globe store opener LA

growth from bodyboard and wakeboard hardgoods.

Accessory sales were down 1.3% with the most positive sales growth coming from some of the smaller accessory classes, including jewelry, belts and “other accessories” - items such as water bottles, key chains, towels, etc.

Hat sales grew almost 4% in Q2 while sunglass sales declined by almost 4% and bag sales were down low single digits.

Sales growth of watches and men’s wallets were particularly poor in Q2.

The worst performing major category in Q2 was footwear, which included a particularly big sales growth hit from the women’s shoe class. Men’s shoe sales were also down while sandal sales were only down low single digits.

It was good to see a much better sales growth performance in Q2 compared to the first quarter, but 0.2% growth is still not much to brag about, particularly considering that the last two months of the quarter had sales declines. Nevertheless, it provides hope for a better second half.

STANCE RENEWS ITS PARTNERSHIP WITH ISA WORLD ADAPTIVE SURFING CHAMPIONSHIP The International Surfing Association (ISA) announced that Stance has agreed to continue their dedicated support of Adaptive Surfing and continue as Title sponsor of the Stance ISA World Adaptive Surfing Championship for two more years, through 2018.

"At Stance, we are excited to continue being a part of this amazing event," said President and Co-Founder of Stance, John Wilson.

"Each athlete has an inspiring story of perseverance, courage, and determination that epitomize our core value of human originality.”

The 2017 edition of the World Adaptive Surfing Championship, taking place from November 29 to December 3 at La Jolla Shores beach in La Jolla, California, will notably be the first since the ISA was officially recognized by the International Paralympic Committee (IPC) as the International Federation for the sport of Para Surfing (Adaptive Surfing) and will mark another step towards the ISA's ambitions of including Adaptive Surfing in the Paralympic Games.

"I would like to give a huge thanks to Stance, who have shown their passion and commitment to being a socially responsible brand that makes a positive impact on the world. Stance has been a key partner in growing and developing Adaptive Surfing and we are thrilled to continue to count on their invaluable support." said ISA President, Fernando Aguerre.

n.z news LUXOTTICA MERGER UNDER INVESTIGATION IN NZ A proposed global merger between eyewear giants Essilor, and Oakley sunglasses parent company Luxottica is being investigated by the Commerce Commission in New Zealand.

If merged the eyewear companies would be called EssilorLuxottica. The commission is investigating whether the merged firm could reduce competition and lead to higher prices for shoppers in New Zealand.

RCG retail expert John Polkinghorne said New Zealanders were unlikely to feel a price rise for eyewear if the merger went ahead.

Essilor is a French company that supplies wholesale prescription lenses to opticians in New Zealand and owns online store clearly.co.nz.

It had 25 per cent of the world market for prescription lenses, sunglasses lenses and lenses for reading glasses in 2015, and a 41 per cent share of the world market prescription lenses alone.

Italy's Luxottica supplies wholesale prescription frames and sunglasses and owns OPSM, Sunglass Hut and Oakley stores in New Zealand.

It competes with Specsavers and independent optical retailers in New Zealand.

Essilor and Luxottica already have a commercial relationship. Essilor supplies prescription lenses to Luxottica, which in turn supplies complete prescription glasses to consumers through opticians.

The companies have said the merger would be "complementary" and in the interest of customers with little change in prices.

"The deal would generate significant synergies and innovation and would be beneficial to customers," said Essilor.

The commission has called for submissions on the proposed merger. A Commerce Commission spokesperson said the commission had the power to approve or decline the application.

If the application was declined Essilor and Luxottica could not merge their New Zealand businesses.

RCG retail expert John Polkinghorne said: "I think we'll see different brands start to rise and fall. The price is hard to say, it might go up slightly but I don't think there will be a noticeable change in price.

"Mergers certainly can raise prices for consumers and that is why the competition authorities take a good hard look at them."

VAMPIRATE AND EMERY SURFBOARDS JOIN THE GLASSING MONKEY FAMILY Al Emery of Emery Surfboards and Mark Gnech from Vampirate Surfboards will now be joining the family at Glassing Monkey.

These two juggernauts of the shaping world will join a host of their peers at Glassing Monkey with names such as Luke Short and Simon Anderson already on the roster.

“It’s insane to have these guys onboard…” said Glassing Monkey Founder Nuno “… we have learnt so much with Master Simon and with Luke, and now we complete our family with those two great guys and shapers.”

indo news INDONESIAN GOVERNMENT MOVES TO HOST 10 SURFING COMPETITIONS IN 2018 The Indonesian government is setting plans in motion to hold ten regional surfing competitions in different places across the country in 2018, two of which will be in Bali.

Given that the archipelago nation is home to some of the best waves in the world, the only surprise is that the government didn’t develop the strategy to cash in sooner. The ten competition destinations would include Mentawai Islands, Western Coast, South Nias, Pacitan, Batu Karas, Canggu (Bali), Keramas (Bali), Maluk, Dompu and Rote, according to the Tourism Ministry’s marine tourism acceleration team head, Indroyono Soesilo.

“We’re coordinating with World Surf League (WSL), Regional Manager Asia (WSL) and Indonesia Wave Surfing Association (PSOI) that is led by Stephen Robinson alongside the association’s general secretary to hold ten regional surfing competitions in ten surfing destinations in Indonesia in 2018,” Soesilo said in a statement.

OMBAKBALI FESTIVAL IS BACK! Celebrating its 9th year, South East Asia’s one and only surf film festival takes place from 13-15 September. Films lead us from the seething surf scene of Brazil in the 80’s to modern-day seaside towns in Palestine where surfing is changing lives. Highlights include Proximity, the latest from Taylor Steele, as well as Endless Winter II and Gaza Surf Club. This year's event will take place at the extraordinary La Laguna, that sprawls across the beachfront between Seminyak and Canggu. A bohemian wonderland of wooden caravans, ornamental gardens and tropical lagoon, this atmospheric open-air venue has a natural lawned amphitheatre perfect for screening movies under the stars. www.ombakbalifestival.com

19/

FEATURE ARTICLE / WORDS JOCK SERONG / PHOTOS ED SLOANE

20/ Australian Surf Business Magazine  issue #79

The State of Women's Surfing IF SOMEONE ASKED YOU TO EXPLAIN THE STATE OF WOMEN’S PROFESSIONAL SURFING, HOW WOULD YOU GO ABOUT IT? You’d need an overview of some kind: a selection of varied perspectives from which to see the whole, sprawling landscape of the sport.

Earlier this year ASB’s Jock Serong got such a view: sitting down after a surf with a group of women who bring a wide range of industry perspectives to bear. Among them were Sally Fitzgibbons, current world number-two and genuine social media juggernaut; Brooke Farris, GM of Digital at Rip Curl Australia; and Macy Callaghan, the 16-year-old phenom from Avoca Beach who’s the current world junior champion.

The idea for the conversation came from tech company Canon Australia, but this was much more than an exercise in branding. Nothing was hidden. No edits were made to please the sponsors. As well as discussing social media, image making and the role of the corporates in promoting women, we asked our panellists afterwards what they thought about the appointment of new WSL CEO Sophie Goldschmidt. What follows is a quick tour through some of their thoughts.

Gathered around a table on the lawn, the women are laughing at the unfamiliarity of it all: the lawn chairs are sinking into the turf after an overnight deluge. Someone’s knitted top is making fuzz on the lapel mic. A small dog barks at the boom mic, perhaps sensing romance there. The film crew have the sun behind them: they’re thinking about their shadows.

Brooke Farris opens by observing how positive it is that brands look to their athletes to represent them: “Whether you put the rash vest on and you’re in the water and competing, (or) on the land, you’re being you and you can participate and showcase a surfing lifestyle to the world.”

To put her point another way, the cameras are there, all the time. They’re hovering over this very conversation. If you’re sixteen and world champ, is that a lot to digest? Not according to Macy. “When there’s cameras in the water you just try and do your best and forget about them.” The rewards for that level of concentration are evident: “I think my favourite shot of me was in Hawaii last year – I was the only girl out there and there were heaps of guys, as in just to show that I’m strong as well, and they put it in a couple of magazines, so I was beyond stoked.”

The women are crowded around a picture of the Queen of It All: Layne Beachley with the Bells trophy. The image takes us down a brief detour about Bells: when Tyler came runner-up in 2014, she gave her trophy to Brooke. “I can’t possibly keep this,” Brooke said.

“How about I just hold it for you, like a museum?” Tyler shrugged.

“No worries,” she replied. “Cos I’m going to win a Bell.”

The Layne photo is so uniquely her: the larrikin grin and steely eyes. “I started working for Layne when I was 21,” says Brooke.

“It was meant to be for three months and it ended up being almost six years. And when I was working for her she started her Aim for the Stars Foundation, she started running the richest women’s surfing event in the history of the sport with a hundred thousand dollars prizemoney, and then she won seven world titles, so that’s quite an adventure really. There’s so much that happened in that period of time. We didn’t know back then that we were building a ‘Layne Beachley’ brand: she was just Layne, right? She just sets goals and goes ‘I’m gonna get that, I’m gonna do this. You can help me, great, let’s go ahead and do it.’ So it’s pretty inspiring stuff.”

Sal agrees. “I get so much inspiration from Layne. I saw the footprint she left on the sport and I guess we both jumped off the conveyor belt of what’s supposed to happen and how you’re supposed to play out your career. I just had that feeling that I wanted to stand on my own two feet and that I had done my apprenticeship.”

“Where were you when Blue Crush happened?” asks Sal, still rolling with the Q&A thing. Macy declares it the best movie of all time. “I watched it on repeat for like three weeks straight.”

But Brooke’s not so sure – “There were certainly some cringeworthy moments in it, just because when you know surfing, you can see the Hollywood side of it.”

“Yep, very stereotyped,” Sal agrees, before Brooke does a oneeighty. “Yeah, but for what it did, now we look at all these female empowerment movies and documentaries and it was ahead of its time. It took these girls and put them out at Pipeline and just went ‘this is normal, this is a young girl going for her dreams and it’s a great thing’. What that did for our sport and for females I think is probably a little underrated.”

21/

The sun starts slipping low over the lawn, and as only Torquay can do, the temperature drops about ten degrees in a minute or two. We grab the table and run it further out in the hope of capturing the last of the sun. By the time the crew have reassembled the lights and snaked all the cords out of shot, the girls are debating social media.

“Think about the effort it takes to create one piece of social media content,” says Sal. “It’s so emotive and powerful, but it’s hard to continually replicate it and to keep up with the speed and demand. Someone sees an Instagram image three seconds and it’s gone. It might’ve taken days to create.”

“It’s a challenge for each of you, what you show of yourself on social,” says Brooke. “As a sponsor of athletes, we (Rip Curl) can see the number of people you have following you, the number of likes, the engagement, how popular someone is. So while the athlete has been empowered to have this connection with an audience, we’ve also been empowered to see how they’re connecting. We sponsor athletes because of how they perform, the person they are, and as long as their social channels are a reflection of them as a person then it’s always going to feel natural.”

There’s an expectation that weighs on Macy in a conversation like this. At sixteen, social channels are as normal to her as breathing the air. So in some way it’s comforting to hear that she battles too.

“I feel like sometimes I struggle with trying to keep posting things that my sponsors want to see. I’m a surfer – I want to go surfing.

I want to be myself, but on the other hand I love Instagram, so…it works both ways.”

What about trolls? Are they limited to political discourse, or do they pick on surfers? “Recently I’d had a couple of results,” says Macy, “and I’d been putting myself out onto social media.

You always get weird guys and weird people. You get fans as well, but there’s also some hurtful things that can be put on social media. But I don’t really care.” She laughs again, rolls her eyes.

“I love myself.”

Brooke watches this closely, maybe not as ready to laugh it off.

“How do you handle it?”

“I’ve got a lot of support behind me,” says Macy. “And I know that there’s my sponsors, my family and friends. Those other people…they’re not a part of my life. I’m just here to do what I want to do and I love it, so I’m just gonna keep doing it.”

“All my social media, it’s always been me,” adds Sal. “No one can talk like you, or even the way they might edit a photo. I love the whole process, and it’s a proud feeling to put something out. When I look back it’s a bit of a personal diary - you flick back over your own feed, ‘oh wow, this is where I’ve been, this is what I did.’ And I can feel that exact moment.”

22/ Australian Surf Business Magazine issue #79

This somehow leads into a discussion about the things in surfing you’d change, the stuff that these women would throw out and rebuild. It starts with a comment from Sal about bringing back paddle battles, but turns into something bigger.

“For me it’s a hard question,” says Brooke. “What would I change, because I’ve been around it now for about twenty years, and I feel like each one of us here has the power to make that change.

So I wouldn’t sit back saying ‘oh, I wish it was like this’ because we have the opportunity. We’ve got the platform, we’re all sitting here chatting about it. We all care about the sport, so it’s kind of up to us. I think about you, Macy, you’re sixteen – what do you want to lead the change on?”

Each one of us here has the power to make that change... We’ve got the platform, we’re all sitting here chatting about it. We all care about the sport, so it’s kind of up to us.

No pressure. The cameras swing.

“I just want to see surfing progress,” she says. “I want to be part of that next generation that really steps the surfing up and I wanna surf bigger. I think girls are just as good as the boys: we have the ability and we’ve just gotta keep pushing ourselves.” Okay, so no storming the barricades, then. But if you’ve seen Macy surf, you’ll know that ‘just as good as the boys’ is no idle threat.

At the management level, professional surfing is now living out that creed of ‘just as good as the boys.’ The recent appointment of Sophie Goldschmidt as CEO of the WSL has the potential to put women’s interests front and centre in the sport for years to come. With this role, she becomes one of the few female executives to lead a global sports league for both male and female professional athletes.

Due to take over from interim CEO Dirk Ziff around the time we’re going to press, Goldschmidt has relocated from London, where she served as Group Managing Director with CSM Sport and Entertainment. In that role she had global responsibility for developing new business initiatives, along with managing the group’s brand development and marketing. Known to be passionate about surfing, Goldschmidt is expected to bring strong relationships from other previous executive roles; in the Rugby Football Union, National Basketball Association (NBA), Women’s Tennis Association (WTA), and Adidas. The aspect of that history that perhaps holds most interest for surfing’s future is her work with women’s tennis: as vice president in charge of sponsorship and marketing for the WTA, Goldschmidt was instrumental in negotiating a ground-breaking title sponsor deal - the largest sponsorship in the history of women’s sports.

“The scope of the role is a tremendous challenge,” says Brooke.

“When we think of WSL, we often think of the upper echelon and those competing for a World Title. However, the CEO's role encompasses every level of the sport and creates the career pathway for aspiring surfers in every part of the globe. It's that balancing act of monetising the Tours yet ensuring the next generation also has the platform in which they can perform and grow their skills.”

When asked what she thinks the real-world changes in the women's side of the sport will be, Brooke answers, “There have been many positive changes for women's professional surfing since the change of ownership, prize-money parity and more events being key progressions. I wouldn't say that the future of women's surfing relies on having a female CEO - it relies on having a clear strategy for the sport and a team of people whom all share that same vision and mission. There's no doubt Sophie's past experience will serve the sponsors, fans and athletes incredibly well.”

An early test for Goldschmidt will be the once-in-a-generation opportunity to capitalise on the Kelly Slater Wave Company purchase and the inclusion of surfing in the Tokyo 2020 Olympic Games. Goldschmidt has also outlined commitment to athletes, fan experience and further globalisation as key pillars for the WSL going forward. She has already said she intends to advance athlete development programs to build authentic interest in the sport in addition to tailoring fan experiences to be as immersive as possible through new formats, live content and other media.

In terms of the Australian landscape, one of the key endorsements Goldschmidt would welcome is that of seventimes world champ Layne Beachley. Approached by ASB for comment on the appointment, Layne was immediately on the positive: ““Her appointment is a fantastic choice. She’s obviously very experienced and respected as a leader and I look forward to working with her in my capacity as Chair of Surfing Australia and (as an) avid supporter of professional surfing.”

Part of the change, part of the progression for women’s surfing is going to be the Olympics in 2020. Sal and Macy are squarely in the frame. “I actually couldn’t believe it when it was announced,” says Brooke, “because I didn’t think it’d ever happen in my lifetime. And the platform that’s going to provide the sport is an incredible opportunity for both men and women.”

It’s going to be hard to make the team, according to Brooke, “because I think there’ll be a really small number of athletes per country. And I don’t think it’ll ever compare to a world title in surfing – that’s the pinnacle: you have ten or eleven events and it’s the best-of. But having the surfers become household names, especially should an Australian win a gold medal…it’s going to be a fascinating time.”

For Sal, who had to choose between surfing and a promising career as a track athlete, the Olympics represents a closing of the circle. “As an eight-year-old I said I’m going to be a world champion, or an Olympic gold medallist. Like it had to be an ‘or’.” Brooke thinks “it’ll keep Steph around for longer, (and) it’s lit a fire under Tyler. And then there’s you (Sal) who’s dreamt of it her whole life.”

Sal ends the discussion with her thoughts about how strongly she thinks women’s surfing is growing in this country, and I’m thinking as I’m hearing these words that it’s easy to reduce competitive surfers to an abstraction: they’re a body moving over a wave – until they remind you of what burns inside them.

That they’re living and breathing and fighting for something they hold important. “And now I see Macy and the next crop,” Sal’s saying. “There were certain definitive moments where women said ‘this isn’t supposed to be done, but I’m doing it.’

And I want to leave it a little bit better than I found it, and then Macy will carry it on from there.”

RVCA ADVOCATE JULIAN DAV IDSON

D E N I M | PA N T S

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Pro du c ed u s in g the most trusted and storied fabric mills, our goal is to p rov ide y ou with dependable denim and pants that you expect to age w ith; a piec e of c lothing that eventually becomes a walking journal of y o ur triu m p hs a nd travels, a living record of your proud spills and scars.

T H E B A L A N C E O F O P P O S I T E S

RVCA.COM

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

PRINT MEDIA METER

The Pointscore Legend

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

Advertising & Editorial Ratios Magazines are ranked in order of highest editorial content percentage.

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

ADVERTISING

MAGAZINES

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.

BRANDS

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

ATHLETE

AD

ATHLETE

TOTAL

BRAND

TOTAL

ASB#78

ISSUE PAGES %AD

1

68.00 282.75 350.75

1

Mick Fanning

68.00

1

Rip Curl

84.00

Surfing Life

114

0.00

2

Monty Tait

50.00

2

Billabong

58.00

Tracks 561

116

28.45

71.55

78.03

Quiksilver

44.00

SW 389

116

20.69

79.31

80.16

Mick Fanning

2 Craig Anderson

ED

TOTAL

264.50 264.50

17.54

%ED

82.46 77.05

3 John John Florence 11.00 209.50 220.50

3

Sean Mawson

41.00

3

4 Chris 'Chippa' Wilson

2.00

4

Gabriel Medina

40.00

4

Hurley

40.00

SW 388

116

28.45

71.55

77.59

5

Channel Island Surfboards

37.00

STAB

89

178

11.80

88.20

5

10.00 177.50 187.50

6

Globe

32.00

7

Monster Energy Drink

30.00

8

O’Neill

29.00

9

Volcom

28.00

10

Reef

25.00

Kelly Slater

6 Mikey Wright 7 8

Jordy Smith Dion Agius

215.00 217.00

30.00 129.50 159.50 12.00 130.00 142.00 22.00 116.25 138.25

9 Noa Deane

10.00 128.00 138.00

10 Ozzie Wright

0.00

11 Owen Wright

12.00 111.00 123.00

12 Matt Wilkinson

24.00 88.00 112.00

13 Bruce Irons

20.00 83.00 103.00

14 Russell Bierke

15.00 80.00 95.00

15 Dane Reynolds

0.00

94.00 94.00

16 Imogen Caldwell

0.00

90.00 90.00

17 Tyler Wright

5.00

84.00 89.00

18 Taj Burrow

0.00

81.50

19 Julian Wilson

30.00 50.50 80.50

20 Steph Gilmore

2.00

133.75 133.75

81.50

5

Josh Kerr

35.00

6

Albee Layer

32.00

7

Mikey Wright

30.00

8

Julian Wilson

30.00

9

Jack Freestone

26.00

10

Matt Wilkinson

24.00

11

Red Bull

24.00

11

Dion Agius

22.00

12

DHD Surfboards

19.00

12

Bruce Irons

20.00

13

Firewire

17.00

13

Soli Bailey

20.00

14

Oakley

17.00

14

Kevin Schulz

20.00

15

Electric

15.00

15

Kevin Squires

20.00

16

Corona

14.00

16

Creed McTaggart

18.00

17

Ocean & Earth

14.00

17

Joel Parkinson

17.00

18

Carve

13.00

18

Russell Bierke

15.00

19

Creatures Of Leisure

13.00

19

Jay Davies

15.00

20 Stuart Kennedy

15.00

21

15.00

20 RVCA

12.00

21

Vans

12.00

22

XCEL

12.00

76.25

78.25

21 Dave Rastovich

12.00 51.00

63.00

23

Slater Designs

9.00

22 Laird Hamilton

0.00

62.00 62.00

24

Brixton

8.00

25

DaKine

8.00

26

Epokhe

8.00

23 Scott Dennis

0.00

61.00

61.00

24 Creed McTaggart

18.00 41.00

59.00

25 Gabriel Medina

40.00 17.00

57.00

26 Filipe Toledo

5.00

51.00

56.00

27 Pama Davis

0.00

54.25

54.25

28 Ethan Ewing

1.00

53.00 54.00

29 Josh Kerr

35.00 17.00

30 Ryan Burch

5.00

52.00

46.00 51.00

31 Monty Tait

50.00 0.00

32 Jay Davies

15.00 32.00 47.00

50.00

Nick Vasicek

EDITORIAL ATHLETE

TOTAL

27

Pyzel

8.00

1

Mick Fanning

282.75

28

Tomo Surfboards

8.00

2

Craig Anderson

264.50

29

Rusty

7.00

3

Chris 'Chippa' Wilson

215.00

30 Spy

7.00

209.50

31

Haydenshapes Surfboards

6.00

32

Huf

6.00

33

Jeep

6.00

34

JS Industries

6.00

35

Nike

6.00

36

Nikon

6.00

37

Rockstar Energy Drink

6.00

38

Super Brand

6.00

4

John John Florence

5

Kelly Slater

177.50

6

Ozzie Wright

133.75

7

Jordy Smith

130.00

8

Mikey Wright

129.50

9

Noa Deane

128.00

10

Dion Agius

116.25

11

Owen Wright

111.00

12

Dane Reynolds

94.00

13

Imogen Caldwell

90.00

14

Matt Wilkinson

88.00

15

Tyler Wright

84.00

16

Bruce Irons

83.00

17

Taj Burrow

81.50

18

Russell Bierke

80.00

19

Steph Gilmore

76.25

20 Laird Hamilton

26/ Australian Surf Business Magazine issue #79

62.00

21

Scott Dennis

61.00

22

Pama Davis

54.25

23

Ethan Ewing

53.00

24

Dave Rastovich

51.00

25

Filipe Toledo

51.00

26

Julian Wilson

50.50

27

Ryan Burch

46.00

LEADERS

MICK FANNING PRINT MEDIA METER #1

RIP CURL PRINT MEDIA BRAND #1

ASB MULTI MEDIA METER 2017

#SOCIAL_MEDIA_METER

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.

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.

WSL #SOCIAL_MEDIA_METER ATHLETE

ORIGIN

1

BRA

Gabriel Medina

#SOCIAL MEDIA METER (ALPHABETICAL ORDER) FIELDS HIGHLIGHTED IN YELLOW ARE GLOBAL CHANNELS. 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 JULY. NOT HERE? CONTACT KEITH@AUSTRALIANSURF.BIZ AND FIND OUT HOW.

BRANDS #SOCIAL_MEDIA_METER TOTAL

243,000

1,292,442

4,200,000 5,735,442

BRAND

Rip Curl

488,000

1,872,390

65,700

2

Alana Blanchard

AUS

181000

2,093,086 1600000

3,874,086

Billabong

163,000

4,379,631

208,000

3

Kelly Slater

USA

499,000

1,773,229

3,772,229

Quiksilver

1,500,000

4,049,252

311,000

1,500,000

4

Mick Fanning

AUS

240,000

528,748

827,000

1,595,748

Hurley

1,400,000

4,537,041

245,000

5

Jordy Smith

ZAF

786,000

314,120

352,000

1,452,120

Channel Island Surfboards

230,000

66,767

25,400 47,000

6

Coco Ho

HAW

85700

767,082

499000

1,351,782

Globe

129,000

311,548

7

Sally Fitzgibbons

AUS

165000

713,617

438000

1,316,617

O’Neill

25,800

1,133,659

87,200

8

John John Florence

HAW

62,800

524,327

604,000

1,191,127

Volcom

55,000

4,022,972

304,000

9

Julian Wilson

AUS

117,000

424,327

607,000

1,148,327

Reef

12,500

1,593,900

79,200 4007

10

Alessa Quizon

HAW

5879

712,912

243000

961,791

DHD Surfboards

99,400

23,401

11

Stephanie Gilmore

AUS

104,000

475,217

382000

961,217

Oakley

37,900

4,958,871

11,800

12

Filipe Toledo

BRA

42,600

414,696

497,000

954,296

Firewire

85,500

45,820

13,300

13

Laura Enever

AUS

43200

348,970

359000

751,170

Carve

21,400

4,455

14

Adriano De Souza

BRA

49,100

401,761

292,000

742,861

Electric

107,000

192,285

25,500 2509

15

Taj Burrow

AUS

101,000

255,112

261,000

617,112

Creatures Of Leisure

45,100

10,560

16

Miguel Pupo

BRA

29900

220,989

252000

502,889

RVCA

37,900

452,408

70,700

17

Sage Erickson

USA

29300

237,969

228000

495,269

Ocean & Earth

13,300

25,246

172

18

Owen Wright

AUS

29,900

210,270

255,000

495,170

Vans

91,000

17,136,050

1,170,000

19

Joel Parkinson

AUS

120,000

60,126

313,000

493,126

XCEL

23,500

21,233

3003

20 Lakey Peterson

USA

39900

115,058

266000

420,958

DaKine

98,200

183,725

23,300

21

Bianca Buitendag

ZAF

7281

326,883

80700

414,864

Pyzel

80,200

9,054

245

22

Carissa Moore

HAW

36100

131,228

217000

384,328

Tomo Surfboards

44,600

4800

23

Kolohe Andino

USA

34,600

114,408

230,000

379,008

Slater Designs

85,500

45,820

13,300

24

Jeremy Flores

FRA

57400

162,246

144000

363,646

Spy Optic

3370

14,439

26,700

25

Courtney Conlogue

USA

12800

225,334

121000

359,134

Brixton

188,000

92,126

9515

26

Josh Kerr

AUS

56,000

26,039

224,000

306,039

Epokhe

53,700

16,500

226

27

Nikki Van Dijk

AUS

26831

237000

263,831

2271

LEADERS

GABRIEL MEDINA

STAB MAGAZINE

#SOCIAL_MEDIA_METER #1

SOCIAL MEDIA BRAND #1

Haydenshapes Surfboards

76,000

27,288

JS Industries

101,000

24,493

589

Futures Fins

100,000

29,641

9783

Huf

1,000,000

491,064

147,000

Nike

73,000,000

28,381,107

7,005,000

Nikon

222,000

12,640,853

23,000,000

Rusty

53,400

106,416

907

Wave Tools

6839

5,189

5

World Surfaris

17,300

18,411

517 848

DMS

7748

19,606

Go Pro

12,700

10,379,177

2,260,000

Nixon

13,300

1,214,565

55,900

Vissla

151,000

65,834

3031

Von Zipper

12,900

192,260

23,000

MAGAZINES #SOCIAL_MEDIA_METER MAGAZINE

1

STAB

1,075,256

708,000

32400

2

SW

351,956

128,000

1357

3

Tracks

257,984

101,000

32,000

4

Surfing Life

131,473

143000

76200

27/

fresh

QUIKSILVER VARIABLE BEACH SHORT Code: EQYBS03907 Colourway: Real Teal RRP: $79.99 Available: February Description: The variable beach short is a board short for living in. Built with the Quiksilver Dryflight technology its hydrophobic treatment repels water reducing dry time.

RES DENIM STRING IT OUT SHORT Code: RD-WWN18013 Colourway: Twoway RRP: $89.95 Available: November

VOLCOM FRICKIN SLIM CHINO Code: A1131601 Colourway: Beige RRP: $80.00 Available: March Description: 15" leg opening slim fit chino pant, 99% cotton 1% elastane light weight left hand twill.

28/ Australasian Surf Business Magazine issue #79

GLOBE MOONSHINE LOGO TEE Code: GB01721001 Colourway: Ombre Blue RRP: $49.99 Available: March

QUIKSILVER HIGHLINE LAVA DIVISION 20 Code: EQYBS03846 Colourway: Navy Blazer RRP: $79.99 Available: January Description: The Highline Lava Divison board short is build with Quiksilver’s Diamond Deluxe fabric.

Diamond Deluxe is a low-friction raised pattern lining that dries faster and feels amazing next to the skin.

PATAGONIA WOMEN'S RE-TOOL SNAP-T® FLEECE PULLOVER Code: 25442 Featured Colourway: RWX RRP: $179.95 Available: March Description: This warm, quintessential pullover has feminine seaming, a pouch-style handwarmer pocket and is made with Polartec® Thermal Pro® polyester fleece (51% recycled). Fair Trade Certified™ sewing.

RIP CURL INTERBLOCK ANTI-SERIES Z/T CREW Code: CFEKT1 Colourway: Dark Grey Marle RRP: $129.99 Available: March Description: With a contrast ripstop body and sleeves, a reversed front and micro polar fleece bonding, this fashionable crew is the latest and greatest in Rip Curl’s Anti-Series range.

GLOBE GOODSTOCK UTILITY JACKET Code: GB01837005 Colourway: Red RRP: $99.99 Available: March

DC SHOES BAH WAY BLOCK Code: EDYJK03149 Colourway: June Bug RRP: $129.99 Available: February Description:100% Nylon. Colour blocked windbreaker. Nylon plainweave fabric (114g/m2). Regular fit. 1/2 body lining. Welted pockets at waist with zip closure. Contrasted nylon coil zipper pocket at chest. Contrasted nylon coil zipper on front. Bungee cord at waist and hood. Full embroidered logo at sleeve. DC trim package.

PATAGONIA MEN'S RETRO PILE FLEECE PULLOVER Code: 22810 Colourway: ELKH RRP: $179.95 Available: March Description: A warm, easy-wearing pullover made of double-sided solid shearling. Fair Trade Certified™ for sewing, which means the people who made it earned a premium for their labour.

RIP CURL ANTI-SERIES ONSHORE JACKET Code: GJKCN1 Featured Colourway: Black Marle RRP: $149.99 Available: March Description: Made of a polyester micro twill, this fashion forward Anti-Series jacket is a must-have when battling the elements. Complete with a DWR treatment, an internal media pocket, a stack bag and Anti-Series trims.

VANS ULTRA RANGE Code: VN0A3MVUMTL Colourway: Metal RRP: $149.95 Available: March

review

VOLCOM FRICKIN REGULAR CHINO Code: A1131707 Colourway: Black RRP: $100.00 Available: March Description: 17” leg opening chino pant, Exclusive Sgene performance stretch fabric by Cone Mills.

RVCA PATCH STRIPE TEE Code: R283682 Colourway: Red RRP: $55.99 Available: January

VANS ULTRA RANGE Code: VN0A3MVU14A Colourway: Chilli Pepper RRP: $149.95 Available: March

Serong sets his third novel a few years into the future, when Australia’s inhumane treatment of asylum seekers has progressed to ever more brutal extremes. But with the recent, real world announcement of a new “super ministry” for national security, and a press conference with SAS officers in balaclavas and camouflage gear as stage props, it seems the present has caught up to the future.

RVCA BLACK HATS TEE Code: R183049 Colourway: White RRP: $49.99 Available: February

RES DENIM BAILEY STRAIGHT Code: RD-WPN18003 Colourway: Twoway RRP: $119.95 Available: November

ON THE JAVA RIDGE A federal election is looming. The government is desperate to show the tremulous Australia public that the boats have been stopped. Harsh new measures dispense with the quaint old maritime custom of assisting ships in distress. Border security has been outsourced to a shadowy private firm, its activities shrouded in secrecy and reliant on unmanned, but armed drones, patrolling the waters between Australia and Indonesia. Amid this dark tangle of swirling forces, a group of Australian surfers on the dream Indo boat trip intersects with the awful shipwreck of an asylum seeker boat at a remote reef.

Serong is well known to readers of the surfing media, for his always thoughtful, intelligent prose, his keen journalistic instincts and an ability to render complex issues accessible and entertaining. In his chilling third novel he marks himself as a fiction writer of rare distinction, with the smarts to tackle weighty social issues and engage us more effectively than any number of online petitions.

DC SHOES KEALEY CREW Code: EDYFT03351 Colourway: Dark Indigo RRP: $79.99 Available: February Description: 60% Cotton, 40% Polyester. Crew neck. Brushed fleece (320g/m2). Loose fit. Herringbone back neck tape. Cut and sew panels at body. Rubber print at chest. Poly jacquard tape at sleeves. DC trim package

This lawyer turned writer has pumped out three cracking novels in four years, all to critical and popular acclaim, a remarkable achievement by any measure. “Quota” won him a Ned Kelly Award for best debut crime novel and “The Rules of Backyard Critic” was shortlisted for the Victorian Premier’s Literary Award.

“On The Java Ridge” delivers an unflinching but much-needed exploration of Australia’s treatment of asylum seekers and an important new stage in the resistance to these shameful policies. Alongside activism, Serong makes a strong case that art has a role to play in shining a light on these dark elements of our national psyche. It makes for a disturbing, but riveting read. Some passages are excruciating, for their vivid evocation of unendurable agonies, yet it is almost impossible to put down. The surfers whose holiday is so shockingly interrupted are familiar and believable characters, placed in such extraordinary circumstances that we can’t help but wonder how we’d react.

Crude surgery in a tent with tequila to sterilise instruments, a sabotaged boat engine, unspeakable horrors at the hands of the ocean and desperate men, cynical political power plays, all coalesce in an ending you won’t see coming and will leave you shaken and ashamed. But be warned: you may never want to go on an Indo boat trip again.

A few years ago, Jock rang me to say he was thinking of ditching the law to pursue his writing full-time. With four kids to feed, and a shrinking market for writers, he asked my advice. I warned against it and asked if his wife worked. Keep the day job, enjoy writing for pleasure without the clawing financial desperation, I recommended knowingly. Thank God he didn’t listen to me.

Tim Baker

29/

buyers’ guide Footwear

REEF VOYAGE BOOT LE Code: A3627 Colourway: Chocolate RRP: $179.99 Available: January

GLOBE SPROUT MID Code: GBSPROUTM Colourway: Black/Black RRP: $99.99 Available: March

VANS CLASSIC SLIP-ON Code: AN0A38F7QCP Colourway: Checkerboard Ochre RRP: $99.95 Available: February

RIP CURL TRANSIT VULC Code: TCKAA6 Colourway: Black RRP: $79.99 Available: January

GLOBE FILMORE Code: GBFILMORE Colourway: Ebony/Gum RRP: $79.99 Available: March

DC SHOES MERIDAN Code: ADJS700051 Colourway: Black/White RRP: $129.99 Available: February

RIP CURL CREW WOMENS Code: TGLCB5 Colourway: White/White RRP: $99.99 Available: February

ETNIES CALLICUT LS Code: 4101000474-115 Colourway: White/Black/Gum RRP: $89.99 Available: March

RIP CURL #003 WOMENS Code: TGLAK1 Colourway: Brown RRP: $199.99 Available: February

DC SHOES EVAN SMITH HIGH ZERO Code: ADYS300423 Colourway: Light Pink RRP: 129.99 Available: February

RIP CURL BELLS BOOT Code: TCLAA4 Colourway: Black RRP: $199.99 Available: February

VANS ULTRA RANGE Code: VN0A3MVUMTL Colourway: Metal RRP: $149.95 Available: March

DC SHOES MERIDAN Code: ADYS700125 Colourway: Black/White RRP: $129.99 Available: February

ETNIES JAMESON LS Code: 4101000477-980 Colourway: Black/White/Grey RRP: $79.99 Available: March

REEF VOYAGE BOOT BREEZE Code: A3FE9 Colourway: Castor grey RRP: 169.99 Available: January

DC SHOES EVAN SMITH HIGH VELCRO S Code: ADJS300200 Colourway: Black RRP: $99.99 Available: February

REEF VOYAGE BOOT Code: A3626 Colourway: Bungee RRP: $159.99 Available: January

VANS AUTHENTIC Code: VN0A38EMQ6L Colourway: Blue Flower/True White RRP: $99.95 Available: April

KUSTOM HOTHAM BOOT Code: 4988102A Colourway: Black RRP: $99.99 Available: April

30/ Australian Surf Business Magazine issue #79

buyers’ guide Denim

GLOBE G.1 SLIM Code: GB01736006 Colourway: Washed Blue RRP: $99.99 Available: Now

PATAGONIA PERFORMANCE STRAIGHT FIT JEANS REGULAR Code: 56025 Colourway: DDNM RRP: $159.95 Available: March

VOLCOM VORTA DENIM Code: A1931501 Colourway: Seventies Denim RRP: $100.00 Available: March

ROXY ROCK SOUND Code: ERJDP03189 Colourway: BFN0 RRP: $99.99 Available: February

RVCA DAGGERS DENIM Code: R183224 Colourway: Black/Black RRP: $99.99 Available: March

RIP CURL SLIM RAW INDIGO Code: CDECW1 Colourway: Raw Indigo RRP: $99.99 Available: March

BILLABONG SLICKR TAPERED Code: 9575362 Colourway: Pacific Blue RRP: $99.99 Available: February

RES DENIM ANDY ANKLE WIDE Code: RW3044MIS Colourway: Misty Rose RRP: $119.95 Available: November

ROXY DOLPHIN MARIN Code: ERJDP03183 Colourway: BGY0 RRP: $99.99 Available: February

BILLABONG CHEEKY JEAN Code: 6585436 Colourway: Water RRP: $99.99 Available: February

PATAGONIA WOMEN'S FITTED CORDUROY PANTS Code: 55055 Colourway: SMDB RRP: $129.95 Available: March

VOLCOM 2X4 TAPERED DENIM Code: A1931610 Colourway: Ink Black RRP: $100.00 Available: March

RIP CURL MOM JEAN Code: GDECM1 Colourway: Light Blue RRP: $99.99 Available: February

RVCA HEXED DENIM OVERDYE Code: R183222 Colourway: Indigo Overdye RRP: $99.99 Available: March

LKI BRAND TORMENT DENIM PANT Code: L102A1012 Colourway: Light Indigo RRP: $109.99 Available: February

RES DENIM WHITEHAVEN ANTI FIT Code: RW1019SAI Colourway: Saint RRP: $119.95 Available: November

buyers’ guide Bags

VOLCOM ROAMER BACKPACK Code: D6531642 Colourway: Heather Grey RRP: $75.00 Available: January

NIXON CANYON BACKPACK Code: C2833-001-00 Colourway: All Black RRP: $149.99 Available: December

OAKLEY FP 45L ROLLER Code: 921021-02E Colourway: Blackout RRP: $319.95 Available: February

RIP CURL F-LIGHT 2.0 TRANSIT STACKA Code: BTRFB2 Colourway: Navy RRP: $199.99 Available: February

BILLABONG COMBAT PACK Code: 9685002A Featured Colourway: Dark Slate RRP: $99.99 Available: December

OAKLEY GEARBOX LX Code: 92908-01K Colourway: Jet Black RRP: $129.95 Available: February

VOLCOM PATCH ATTACK WHEELIE BAG Code: E6531615 Colourway: Pale Peach RRP: $190.00 Available: January

RVCA PUSH SKATE DELUX BACKPACK Code: R371477A Colourway: RRP: $69.99 Available: January

QUIKSILVER RACKER Code: EQYBP0340 RRP: $139.99 Available: January

REEF DIAMOND TAIL IV Code: A361D Colourway: Olive RRP: $139.99 Available: January

DAKINE CYCLONE WET/DRY 32L Code: 10001827 Colourway: Cyclone Black RRP: $199.99 Available: November

JET PILOT DUFFLE BACKPACK Code: ACS17308 Colourway: Black RRP: $69.99 Available: September

32/ Australian Surf Business Magazine issue #79

ROXY INSIDE THE ROCK Code: ERJBT03088 Colourway: Blue Light Rain Daze RRP: $69.99 Available: January

HERSCHEL SUPPLY CO. NOVEL DUFFLE Code: 10026-00007-OS Colourway: Navy/Tan Synthetic Leather RRP: $159.95 Available: Now

ROXY GIMINI Code: ERJBT03099 Colourway: Rouge Red Mahna Mahna RRP: $59.99 Available: January

DC SHOES THE BREED Code: EDYBP03135 Colourway: Black RRP: $69.99 Available: February

HERSCHEL SUPPLY CO. LITTLE AMERICA Code: 10014-01132-OS Colourway: Raven Crosshatch/Black Rubber RRP: $179.95 Available: Now

RIP CURL ESSENTIALS F-LIGHT TRANSIT Code: LTRFK1 Colourway: Black RRP: $199.99 Available: February

RVCA RVCA PACK IV BACKPACK Code: R332452A Colourway: RRP: $59.99 Available: January

PATAGONIA CHACABUCO BACKPACK 30L Code: 47927 Colourway: Black RRP: $139.95 Available: March

BILLABONG HERITAGE BACKPACK Code: 66885006A Colourway: Ash Rose RRP: $59.99 Available: March

GLOBE TERRA SKATE DUFFLE Code: GB71839020 Colourway: Black RRP: $79.99 Available: March

REEF DUFFEL IV Code: A361E Colourway: Olive RRP: $149.99 Available: January

BRIXTON PACKER BAG Code: 05159 Colourway: Brown RRP: $149.95 Available: February

DAKINE SPLIT ADVENTURE 38L Code: 10001254 Colourway: Tabor RRP: $199.99 Available: Now

BRIXTON AMALIE BAG Code: 05229 Colourway: Black/Natural RRP: $119.95 Available: February

JET PILOT X! JETLITE TRAVEL BAG Code: ACS17301 Colourway: Black RRP: $219.00 Available: September

PATAGONIA BLACK HOLEâ„¢ DUFFEL BAG 60L Code: 49341 Colourway: PBH RRP: $169.95 Available: March 33/

FEATURE ARTICLE / WORDS CAZ RIDINGS EMGE

Shop Insta Brand

IN THE ERA OF ONLINE DISRUPTION, INFLUENCER MARKETING AND HYPER-TARGETING, HOW CAN LABELS STAND OUT AMONGST THE NOISE? WELCOME TO THE AGE OF AGILE ‘INSTA BRANDS’; NICHE LABELS CARVING UNIQUE PRESENCES ONLINE AND REDEFINING THE WAYS PRODUCTS ARE CONCEIVED, MARKETED AND SOLD. 36/ Australian Surf Business Magazine issue #79

Michael ‘MC’ Crawley was looking even more chipper than usual. One half of the husband/ wife duo behind VALLEY Eyewear, MC had just jumped off a jet from LA where he’d been sorting the details of a custom frame with rocker Marilyn Manson. Fitting around Manson’s studio commitments and upcoming world tour preparations had been challenging, but MC had returned triumphant.

“Check this out,” he beamed, waving his mobile.

There on Instagram was the unmistakable profile of Manson arm in arm with actor Johnny Depp. The duo were angled toward the camera lens, matching custom shades at the fore, and Insta world was in rapture – a 194K likes and three thousand comments kind of lovefest.

Flipping on your phone to find you’ve been tagged in a selfie of Depp and Manson wearing your product might be beyond most brands, but it’s just another notch for VALLEY. In five short years of existence, the brand that sprang to life out of pure necessity has swiftly found a tribe amongst fashionistas and A-listers as diverse as Kanye, Miley Cyrus, Chris Hemsworth, Gwen Stefanie, Margo Robbie and Iggy Azalea. Instead of chasing endorsements, their eye-catching social media presence and commitment to product has drawn influencers to them. “We don’t have a PR company nor have we ever paid anyone for a post or to wear our product,” MC said.

Having stared down the barrel of redundancy after a decade-long stint with Quiksilver, and with a mortgage and young family to support, MC and wife Tenielle took a make-or-break gamble to start VALLEY in 2011. With an eye for photography and design, and having just learned the ropes of eyewear manufacturing in France with his former employer, MC spotted a market opening. Tenielle had a fashion and sales background at Roxy, and provided the perfect counterbalance to MC’s creative wizardry with savvy business and logistics.

While their ad spend is modest, the company puts its full weight behind creating stunning content to seed their brand message across social media channels – from photo shoots in farflung abandoned buildings in Bulgaria to stark, desert landscapes of WA’s Pinnacles, through to orchestrating online celeb Kat Von D playing piano in video shot by Slayer’s film crew. “Give me the company card and off we go. It seems to come pretty easily, and that’s the fun part.

Sticking to budgets is always the hard one for me,” MC said. Being Instagram early-adopters also helped solidify the brand’s arrival. “When we started, Instagram had just kicked into gear, so we were lucky to ride the growth and really put a lot of effort into that, creating unique content for our followers and also re-posting a lot of our consumers.” VALLEY’s follower demographics are 60/40 female to male, skewed to 60% USA-based with the remainder scattered across Australia and the rest of the world. “We have a big following in the USA, which is cool.

I guess a lot of celebs, musicians and artists we use are all USA-based so maybe that’s why we have a larger following there.”

As far as insights into Instagram and Facebook’s latest updates, they don’t own any secret sauce.

“Who really knows the algorithms to it all, even with the re-targeting marketing and everything.

I feel it’s a bit hit and miss sometimes. Sure, you can measure some sales, but sometimes it is all over the shop,” MC said. Instead, the one constant they bank on is that creativity and persistence pays dividends. “If I post on Instagram and keep consumers inspired by new product and fresh content, we notice consistency in sales or spikes. You stop keeping the consumer entertained and it will affect sales 100% like anything in fashion I suppose.

The moment you stop creating and making rad stuff it all slows down. I’ve always loved the line ‘you’re only as good as your last range,’ and you’re only as good as the last campaign you did – the moment you do something shitty or lame, you’ve lost your consumer’s trust and faith in your brand and they’re gone.

Kids these days can’t be fooled!”

“You’re only as good as the last campaign you did – the moment you do something shitty or lame you’ve lost your consumer’s trust and faith in your brand and they’re gone. Kids these days can’t be fooled!” Michael Crawley, VALLEY

Since then, they’ve made inroads across USA and Canada, with distributors in Europe, Israel, and Korea, and a year-on-year growth consistently above 30%. In Australia retail partners include General Pants, Surfstitch and The Iconic, with fashion boutiques and independent eyewear stores bolstering sales – that, and their own site. “Our website is our biggest doorway to the world and we do get a lot of traffic from social channels, but 75% of traffic is direct, which is even crazier, a lot of Google search referrals,” MC said. He estimated their site generates 20% of business, with the rest bricks and mortar. “Our website is really strong for us: we get to control the look and feel of the site and what we show and don’t – so I really love that side. But it’s also good for a consumer to pick up their frames instore and physically try the product on and feel the quality of the frames and optics versus taking a punt online about whether they suit them or not. Also, it’s important for a brand to tell its story in retail spaces as well - it shows a brand’s diversity, versus just being a one-trick pony online.”

37/

VIRAL LIKE PLAGUE From the moment Shaun Harrington stepped over the side of a boat, flimsy birdcage shoved over his head for comedic effect, and got up close with an agitated tiger shark, the fallout was swift. Footage of the surfer in his homemade shark cage - narrowly avoiding losing a limb quickly went viral, hitting every major network across Australia and much of the western world.

The brand, born from a fishing trip with mates, had gate-crashed the spotlight, and while much of the media coverage was damning, their tomfoolery instantly connected with an audience looking for the next Aussie lords of larrikinism.

Until that pivotal point, the Mad Hueys had been more a comedy of circumstances than a bona fide brand. It started when surfers Shaun Harrington, Damon Nichols and cameraman Joel Scott filmed their drunken escapades at a local annual fishing comp. The Mad Hueys was a moniker for their fishing team, and when their first videos racked up a few views they plastered the name onto a few t-shirts and hoodies for a laugh. Shaun’s twin Dean started spruiking the merch from his car to mates around town, and they soon recruited local conspirators like surfers Dean Morrison and Brent Dorrington.

On occasion mates like Mick Fanning and Joel Parkinson were also roped into skits, and their homemade videos were soon reaching an audience well beyond their immediate circle.

Still, none were more surprised than they when their online store (selling a motley debut range of branded t-shirts and caps) generated their first cheque for $500, which they fittingly celebrated by taking their wives out for schnitzels at the local tavern. As their profile grew, the antics grew more outlandish.

It wasn’t until the B-grade shark diving incident exploded, however, that the boys realised the potential of the business they’d unwittingly created. They credit former pro surfer and business partner Nathan Webster, who saw some genius in their malarkey, as the first to really help develop their business approach.

They’re now aided by designers and production staff and have a solid team guiding operations including Brodie Sweeney, Marketing Manager.

Sweeney admitted working for an ‘accidental’ brand has challenges. “We’re still finding little things all the time – like there’ll be some partnership they’ve had in place for years, and something will come up and we’ll discover there’s no paperwork. I’ll be like ‘how is it that a contract never existed?’ But everything seems to work.”

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“A lot of brands have pro surfers and whatnot too, but we’re always creating content that could go viral. We’re always looking for content that’s going to blow up, and that’s what brings our customers.”

Brodie Sweeney, Mad Hueys

The brand was originally only available through their website, but due to demand they started stocking major retailers like City Beach and BCF early last year. “Online is still pretty solid for us.

But yeah, it's not as big as it used to be, because we weren't in that wholesale region. Prior to that, online was huge,” Sweeney said.

Given the often-controversial nature of their content, they’ve relied on organic reach. “We were lucky in the beginning that we got that solid following. It’s hard to get it now,” Sweeney said. “We don’t have a big ad spend, pretty miniscule compared to what we could do.

But yeah, that’s something we’re looking at, increasing that. Especially with Facebook and Instagram’s algorithms now. It’s harder to reach everyone you want to reach without having a bit of monetary spend behind it.” When they do allocate budget, Sweeney said it’s most likely a carousel for people to shop on Facebook or re-targeting ads. They draw the line at Google Adwords, where their retail partners already excel. “We’d sort of be taking sell-through from them, which is like competing against yourself.

We’re happy for them to take those sales, they can put a lot more behind it than us.”

When it comes to creating content, there’s some method behind the madness. “I’m sort of the middle-man between our team and the rest of the brand,” Sweeney said. “A team rider might come to me with an idea or a trip they want to do, and we go from there – we work out budgets and plans and outputs and what we want from it. But Dean and Shaun sort of go off on their own tangent. Like Shaun will be ‘I just got this crazy clip, can I post it tonight?’ and that’s how it goes.”

It’s this ad-lib content that resonates with the brand’s audience. “The strongest point for our brand, content-wise, is our brand ambassadors who are constantly out there doing stuff. A lot of brands have pro surfers and whatnot too, but we’re always creating content that could go viral.

We’re always looking for content that’s going to blow up, and that’s what brings our customers.

We have Shaun and Dean Harrington who are the face of the brand, and they just love making people laugh. That’s how they make their clips.

And we might not have the best surfers in the world, but they add a certain flair – they might do something funny in the middle of the clip, and people will grab onto that and it all goes from there. We’re all about personality,” Sweeney said.

Indeed in the age of clicks being currency, love ‘em or hate ‘em their overboard antics have certainly amassed the Mad Hueys a fervent following. And don’t expect them to tone down anytime soon – they’ve realised brashness is their brand. Not long ago, faced with the closest thing to a sales plateau they’d experienced since inception, they looked at figures and discovered a correlation between stunts and sales. “It got to a point where we were doing crazy, crazy stuff, and as the brand got bigger everyone was like ‘maybe we should tone it down?’ But that’s not what built the brand. It was the crazy stuff, that’s why people love us. We worked out we need to stick to our roots.”

THE FAME LAUNCHPAD Becoming an overnight brand because you’ve amassed 350K Instagram followers doesn’t always require becoming mates with Manson or swimming with sharks. Some use offline credibility, natural prowess, or a fawning fanbase – or with Former, a combo of all three.

Former debuted in February this year and is the brainchild of surf megastars Dane Reynolds and Craig Anderson, skateboarder Austyn Gillette and the late Dylan Rieder. Aiming for a low-key branding look and simple, classic lines, the first glimpse of the apparel range designed by the team (totes, t-shirts, pullovers and the like) was via pop-up shops in Sydney and LA. For those who missed the all-star activations, an online webstore is currently the exclusive retail channel.

Their first collection, Luxury 29.99, was accompanied by several video drops on their Vimeo channel (where Craig Anderson’s sevenminute surf intro racked 82.6K plays), and they lean solely on Instagram to disperse other social media content.

The Former site states they’re independently owned and are shooting for quality at an affordable price, but with t-shirts from AU$43.99 plus shipping they’re roughly on par with other premium surf label pricing – just harder to get. It’s too early to say how their direct-to-consumer model will pan out.

“For me personally, if kids respond well a nd are stoked on it, if they get into it and we can build a culture around it, then it’ll be a success,” Dane told Monster Children.

Video is also the content of choice for Rage, a new grip pad and legrope brand from Creed McTaggart, Noa Deane, Ellis Ericson, Beau Foster and Toby Cregan. They rode into the New Year with a couple of hip promo videos directing back to a simple Shopify store, which is their only online brand presence. It’s not rare for pro surfers to launch their own brands (Think Kelly Slater with Outerknown, VSTR, Purps, Komunity etc), but Rage highlights how technology has greatly lowered barriers to entry – just add status, a Shopify account and a mate with a camera. Fame doesn’t guarantee commercial success (just ask Kelly), but it does create momentum.

Mick Fanning, with his 1 million Instagram followers, is also no stranger to using his profile to launch everything from a brewery to battery power chargers. The latter, Grapes The Cat, is a portable device for charging mobile devices on the go. Miles Kirchner, Grapes co-founder, said, “Mick has been a huge part of the growth of Grapes and he is not only a great friend but an amazing business partner. As far as the business side goes, he is an equity partner, and has a large say in brand direction. Part of finding a great retail partner in Australia is finding a partner that Mick and our Grapes team are enthusiastic about supporting on all platforms.”

At time of print Grapes were launching at Amazon Surf (NZ) in Sept, but were otherwise direct to consumer in Australia/NZ. Despite only being locally available online, they estimate half their orders originate from the region. Into their second year, they’ve experienced five-times growth without a strong international bricks and mortar presence. “Online sales are nearly all of our sales. We are finding great success with our direct-to-consumer model, which has enabled us to be patient in locating the retail suitors that we feel are the best fit to grow our brand,” Kirchner said. “We are now in a position where the product and production capabilities are where they need to be so that we can explore retail expansion into not only bricks and mortar, but also big-box accounts.”

With a team of athletes, photographers and ‘lifestyle connoisseurs’ all publishing Grapesrelated content, social media has obviously been integral for the brand. “Social media is a wild beast. It’s become the epicentre for marketing for so many companies, and Grapes is no different. Having all of these influential partners allows us to have a huge reach and we are able to touch millions of people with a few quick photos and a tap on our screen,” said Kirchner.

“Online sales are nearly all of our sales.

We are finding great success with our direct to consumer model which has enabled us to be patient in locating our retail suitors that we feel are the best fit to grow our brand.”

Miles Kirchner, Grapes

“Thus far it has been very organic, but we are now starting to forge on to some new advertising platforms,” Kirchner added, noting they’re ambivalent about new algorithms affecting reach. “If you don't like it, you need to invent the next big thing so you can do whatever you want.”

39/

Insta Fame While many new players have a strong Instagram game, they’re still eclipsed by the established labels (Aug, 2017) Nike

73.4 Million

Go Pro

12.9 Million

Levi’s

2.4 Million

Patagonia

2.8 Million

Quiksilver

1.5 Million

Billabong

1.4 Million

Rip Curl USA

894 K

Volcom

873 K

Mad Hueys

299 K

VALLEY

104 K

Outerknown

95.3 K

Grapes

29.2 K

Salt Gypsy

25 K

Former

24.4 K

Rage

8.8 K

Independent Surf Co 700

MAKERS & SHAKERS A key characteristic of ‘Insta Brands’ is disregard for established marketing and retail formulas, as observed in the recent flood of independent wetsuit labels trading, for the most part, direct to consumer. These include NCHE, a zipperless wetsuit label from ex-Billabong marketer Simon Barrett and former O’Neill surfer Jarrad Howse; Need Essentials, helmed by former Quiksilver VP of Products, Ryan Scanlon; and newcomer Independent Surf Co from Vin Ryan and Royce Leu, both ex-Billabong.

Vin Ryan had 24 years’ experience making wetsuits before redundancy forced a move; he released a small capsule range of men’s jackets, springsuits, steamers, leggies and grip earlier this year before Leu, also freshly redundant, joined the squad. The wetsuits are currently only available online, and the duo are keeping operations bare bones; to date the fledgling label’s biggest publicity spikes have come from a site take-over on Beach Grit, and a feisty David and Goliath-style editorial in The Gold Coast Bulletin. “Being a startup business, funds are tight so we try to keep spending on online and print ads to a minimum, and rely heavily on organic social media,” Leu said. Bypassing traditional market routes via an online store is one thing, but Independent aren’t pretending they’re tech savvy. “We have even gone back to old school and leave flyers on windscreens in carparks,” Leu admitted. Instead, they’re banking on customers spreading the word both online and off by providing features usually only found in seven hundred dollar suits – mesh panels, S-seals, thermal lining – for under three hundred. “We think people are over big companies having a monopoly over the surf industry and are looking for independent alternatives. If you can offer the same product at a better price it’s going to be attractive to the average surfer who works bloody hard for their money and is looking to save.”

40/ Australian Surf Business Magazine issue #79

On the flipside of the pricing scale, being an agile modern brand also allows the market to dictate higher prices, too. Danielle Clayton runs Salt Gypsy, a women’s surfwear label that has fostered a community of brand advocates happy to pay a premium for ethical, sustainable products.

What started as a way to document Danielle’s travels working on a Maldives charter boat became an overnight business opportunity.

After building a following of female surfers via her blog, she stumbled upon a product idea. “I was pretty conscious of the sun damage I was getting working in the tropics. I had cool rashies, but didn’t have anything to cover my legs as there was nothing in the marketplace. There was zero concept of wearing surf leggings. I had a few pairs made, and started blogging photos that my partner took while I was working and surfing,” Danielle recalled. Then a boatload of women came through. After a couple of days getting sunburned, Danielle lent out her spare leggings and everyone fell over themselves to get hold of a pair. “That planted a seed that I might have a product people would want to buy.”

Later, she put out a call on her Facebook page offering customizable surf leggings. “I didn’t have any money, so I was like ‘how can I get paid upfront, then produce and deliver?’ Offering a customizable product enabled me to do that.

I got about twenty orders, had them produced in Bali, shipped them a few weeks later and kick-started everything.”

“I never set out to start a brand, but once I was producing the leggings and getting momentum around that I started fielding wholesale inquiries. I was being really reactive in trying to keep up with catering to wholesale concurrent with going direct online, then in 2015 I had quite a large production muckup, which became this huge pivot point.” Relocating to Australia, Danielle put a handbrake on production. The brand created overnight in response to demand

just didn’t have the infrastructure to grow into the kind of business she’d choose by design. So she reinvented from the ground up, sourcing new local suppliers and manufacturers, and shifting textiles to regenerated nylon (Econyl) made from discarded ghost fishing nets, carpet offcuts and other plastics.

Opting for local production and ethical materials has naturally added to overheads.

“I’d be lying if I said that it hadn’t. From when I first started making leggings in 2012 in Bali, my production costs have more than tripled.

My retail price has doubled,” she admitted. On the upside she gained smaller minimums, the ability to do boutique production runs, tighter turnarounds, and a business more in tune with her ethos. “I have direct contact with the factory owner, meet the staff, see their working conditions, and know I’m engaging in a fair trade.”

The restructuring processes also afforded Danielle time to grow with a more considered approach. “I’m just slowly adding the wholesale business and trying to be selective with who we cater for, and that side of the business has been continuing to grow our sales.” Danielle also recently opened a concept retail space in Byron Bay with female surf/fashion photographer Ming Nomchong called Sea Bones, which stocks a handful of similarly-aligned labels.

Of the myriad of benefits modern technology affords her, the open lines of communication are what Danielle values most. “We’re continually tweaking things. Any feedback is good feedback for us to hear. Just having really direct conversations with people online, you can’t beat it for customer service.”

FEATURE ARTICLE / WORDS BRIAN WALKER

TALKING SHOP – THE RETAIL DOCTOR

The Changing Skill Sets to be a Retailer "YOU KNOW YOU’RE NOT ANONYMOUS ON OUR SITE. WE’RE GREETING YOU BY NAME, SHOWING YOU PAST PURCHASES, TO THE DEGREE THAT YOU CAN ARRANGE TO HAVE TRANSPARENCY COMBINED WITH AN EXPLANATION OF WHAT THE CONSUMER BENEFIT IS." JEFF BEZOS. Just as Uber is a software company, Amazon is a tech company. So are Google and Facebook.

It just so happens that retail is one of Amazon’s major weapons in trading currency for data. To describe Amazon as a retailer is like describing David Jones in Australia as a corner shop.

And it remains entirely conceivable that others of this scale, such as Google and Facebook will follow suit at the intersection of technology accelerating retail and in some ways redefining the very definition of retail. Complex and grand datasets all permeating into deep learning, personalisation and speed on steroids.

Classically, retailers employ all the roles we associate with retailing and if Amazon are a retailer by these standards, then they would employ all the roles a retailer employs wouldn’t they?

So who do these global tech companies employ and in what areas?

Amazon head office draws many of its staffers from nearby University of Washington in Seattle, and 83 per cent of its employees hold bachelor’s degrees. More than half (57 per cent) know Java, and 45 per cent are skilled in software development.

Even Apple, that we typically refer to as a retailer, has the following skill sets within its ranks, software development (28 per cent), with Java coming in second at 27 per cent.

At Facebook, programming languages are in demand, with 46 per cent of its employees knowledgable in Java and 44 per cent in Python.

Other top skills include C++, distributed systems, algorithms, and machine learning.

I wonder if David Jones or any other “traditional’ retailer would have such a profile in their collective skill sets? And for that matter should they? Are they the professional role profiles of our future retailers?

We are being swept into this wave of the science of retail. Consumer science is one thing , automated personalisation, predictive capabilities are another, although the “human to human” relationship is at the heart of retail if we do it brilliantly and with passion.

The art of retail if you like.

Very hard for a Java programmer to replicate that, isn’t it?

Happy ‘Surf ’ Fit for Retailing.

Brian Walker is Founder and CEO of Retail Doctor Group and can be contacted on (02) 9460 2882 or brian@retaildoctor.com.au.

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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 SALES GROWTH MEN/BOYS YEAR-OVER-YEAR SALES GROWTH

WOMEN/GIRLS YEAR-OVER-YEAR SALES GROWTH

JANUARY THROUGH JUNE 2017

JANUARY THROUGH JUNE 2017

6%

15%

All Product Categories Socks Bags Wallets Hats Belts

4%

2%

All Product Categories Hats Belts Socks Bags Wallets

10%

5%

0%

0%

-2%

-5%

-4%

-10%

-6%

-15%

-8%

-20%

-10%

-25%

Overall, when all product categories are included, the male segment experienced a 5% sales decline in the first half of 2017 compared to the same time period last year.

The socks category represented a bright spot with slightly positive growth. While bags and wallets experienced declines they performed slightly better than overall men’s sales in the panel stores.

Sales growth of female hats, belts and socks was higher than average for all female categories combined. Female bag sales were down 7%, but the wallets category was hit particularly hard during the first half of 2017.

MEN’S SHOES PERCENTAGE OF UNITS SOLD

TOP-5 MEN’S SHOES STYLES

JANUARY 2016 THROUGH JUNE 2017

JANUARY THROUGH JUNE 2017 (In alphabetical order) 2017 2016

›$120 $110-$120 $100-$110 $90-$100 $80-$90 $70-$80

SHOES

AVG Price

Nike - SB CHECK

$89

Vans - OLD SKOOL

$101

Globe - GS

$79

Vans - AUTHENTIC

$87

Globe - MAHALO

$217

SHOES GENDER MIX

$60-$70

JULY 2016 THROUGH JUNE 2017

$50-$60 Men 82% Boys 13% Women 5% Girls 1%

$40-$50 $30-$40 $20-$30 0%

5%

10%

15%

20%

25%

30%

Seventy percent of all men’s shoes sold in this time frame were priced above $80 with a significant increase over last year in the $90-$100 segment. Sales above the $100 price point remained steady at 21% of sales while sales below $80 declined slightly to less than 30% of the total.

42/ Australian Surf Business Magazine issue #79

Almost all shoes sold in the panel stores during this time frame were male-gender shoes with women’s/girls’ shoe sales representing only 6% during this time frame.

Men 82% Boys 13% Women 5% Girls 1%

PRICEPOINTS BASEBALL CAPS

DENIM

PERCENT OF UNITS SOLD

AVERAGE SALES PER STORE 2017 2016

$50-$60

$30000

$25000

$40-$50 $20000

$30-$40 $15000

$20-$30 $1000

$10-$20

$5000

‹$10

$0

0%

10%

20%

30%

40%

July 2014 - June 2015

July 2015 - June 2016

July 2016 - June 2017

50%

The $30-$40 price segment gained significant market share in the first half of 2017 compared to the same period last year while the three price segments below $30 lost share. However, the peak price point remained $20-$30.

Denim sales have experienced accelerating year-over-year declines over the last couple years in the ActionWatch panel stores, with the first half of 2017 losing a full quarter of the revenue earned from the category during the same time period last year.

BACKPACKS

BAGS

PERCENT OF UNITS SOLD

AVERAGE SALES PER STORE 2017 2016

$90-$100

$17500

$80-$90

$15000

$70-$80

$12500

$60-$70 $50-$60

$10000

$40-$50

$7500

$30-$40

$5000

$20-$30

$2500

$10-$20

$0

0%

Hats Bags

$20000

10%

20%

30%

40%

50%

More than 70% of all backpacks sold in the first half of 2017 were priced above $50 with a significant increase over last year in the $60-$70 and $70-$80 segments. Backpack sales above the $80 price point remained fairly steady while sales below $50 declined.

Jul

Aug

Sep

Oct

Nov

BACKPACKS GENDER MIX JUNE 2016 THROUGH MAY 2017

Billabong - COMMAND

$75

Billabong - JUGGERNAUGHT

$60

Globe - JAGGER

$63

Hurley - MISSION 4.0

$59

Quiksilver - GRENADE

$96

Feb

Mar

Apr

May

Jun

Nearly half of the latest 12-month’s bag sales occurred in December and January with the average store on the panel earning revenue of nearly $13,000 from sales of bags in the peak month of January. As usual, hats were a popular holiday gift this past year with more than five times the sales volume in December compared to the lowest sales months.

JANUARY THROUGH JUNE 2017 (In alphabetical order) AVG Price

Jan 2017

TOP-5 MEN’S BACKPACK STYLES B ACKPACK

Dec

2016

Men/Boys 60% Women/Girls 40%

The backpacks category had a relatively even gender mix in the latest one-year period although 60/40 was slightly more uneven than the previous year’s 58/42 spread.

43/

FACE

GLOBE STORE OPENING

NCHE LAUNCH

GLOBE SALES MEET

HONG KONG

SYDNEY

HONG KONG

WHALEBONE CLASSIC WA

44/ Australian Surf Business Magazine  issue #79

45/

We don’t follow, we create.