ASBMAG#82 by ASBMAG

Australian Surf Business Magazine May

2018

ASBMAG.COM AUS $6.95 (INCLUDING GST)

FEATURE ARTICLES: The State of Brand Management / Indomitable: The Many Lives of Rob Bain

#82

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CONTENTS

ISSUE #82 MAY

inside this issue

contents 12

Industry News

Media Meter

Fresh

Buyers’ Guide

ActionWatch OZ Insights

Feature Article

Talking Shop

Faces in the Lineup

Many hands make light work. This issue is one of the largest we’ve produced in several years, and I’d like to stop, pause, rewind and thank our generous advertisers. While much of our life is increasingly absorbed online, it’s timely to reflect on what makes print so great. This magazine has passed through many skilled hands, from the brilliant cover shot by Alex Brunton, to Phil Jarratt’s insight into the current State of Brand Management. Jock Serong’s skilful expose on the Indomitable Rob Bain. Bryan Dickerson joins our editorial team and adds international depth to ASB’s talent pool while Brian Walker contributes another insightful edition of SurfFit for Business.

BOARDIES

Aside from our mainstay contributors, there’s another layer of talented designers, printers and production staff that collectively input their skills to deliver the magazine you are holding in your hands right now. I’m convinced that the essence of print is in the many skilled hands that this issue has passed through. Each contributor has applied their own ‘touch’ to bring you this world-class surf industry publication.

SWIMWEAR

So magazines are more about people, than pixels and that’s worth supporting.

FOOTWEAR

This issue we focus on the key categories of boardshorts, swimwear, open toe footwear and surf hardware – all bread and butter categories if you’re a core surf retailer. Also, inside you’ll find marketing intelligence into these categories, you won’t find anywhere else, thanks to our partnership with ActionWatch Oz.

HARDWEAR

For 14 years we’ve relied on the generous support of our advertisers to reach every surf shop in Australia for free, as well as select stores in New Zealand and Bali. And while this business model has served us well since 2004, it’s a precarious existence bouncing from one issue to the next. These days there’s no lock-in contracts, no guarantees beyond the next issue and we need to evolve the way we do business with you.

THE STATE OF BRAND MANAGEMENT

To help smooth out the ebbs and flows of our advertiser’s targets, we’re asking our loyal readers to subscribe to ASBMAG.COM, either in print or online (or both) for less than $2 per week. If you subscribe before December 2018 you’ll also go in the draw for a trip for you and a mate to Aganoa Lodge in Samoa thanks to Pegasus Lodge.

INDOMITABLE: THE MANY LIVES OF ROB BAIN

For now, kick back and enjoy this bumper issue of ASBMAG and we hope you’ll help us keep them coming by SUBSCRIBING today. Our future is in your hands.

BOARDS OF TODAY AND TOMORROW

Keith Curtain Publisher

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

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

CREATIVE

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

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

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

#20 The State of Brand Management

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

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

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

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

FASHION CO-ORDINATOR Fiona Hampson fashion@australiansurf.biz

SOCIAL MEDIA

SUB EDITOR Jock Serong Bryan Dickerson

https://www.instagram.com/australiansurfbusiness/ https://www.linkedin.com/in/keith-curtain https://twitter.com/asbmagazine https://www.facebook.com/asbmag2004/

ASB PROUDLY SUPPORTS

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10/ Australian Surf Business Magazine issue #82

EDITORIAL PLATFORM

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@globebrand | GLOBEBRAND.COM | est. Australia 1994

INDUSTRY NEWS

Greg Healy.

brand news THREE AUSTRALIANS NAMED IN BOARDRIDERS LEADERSHIP TEAM After shareholder and court approval of the Boardriders bid for Billabong last month, Boardriders has announced the leadership team that will guide the company's growth across the globe. Dave Tanner, Chief Executive Officer of Boardriders, said the following appointments are in place following the closing of Billabong International Limited last April. The two key appointments are both Australians with Greg Healy taking on Global President, President APAC and Board of Directors responsibilities while Shannan North does Global President, Billabong and Retail Strategy as well as Board of Directors duties. A third Australian, Garry Wall, will assume the responsibility of Global General Manager and is also part of the 16-person global management team. "Our new leadership team is a combination of seasoned global talent from Boardriders, Billabong and from outside the organization,” said Dave Tanner. “This team will lead the integration of two great companies, creating the world's leading action sports company. I am particularly excited to announce the elevations of Greg Healy and Shannan North who bring significant industry experience and will be instrumental in leading our global growth with their new Board responsibilities.” Billabong CEO Neil Fiske will exit the company. "We want to thank Neil Fiske, Peter Myers, Tracey Wood, Jim Howell, Mara Pagotto, Paul Burdekin and the Billabong Board of Directors for their dedication to the success of Billabong, its people and heritage,” added Tanner. “While they will be transitioning from their roles, we greatly appreciate their partnership throughout this transaction and the strong organization and legacy they leave in their wake.” Other management announcements include: • Joe Scirocco, Chief Financial Officer • Thomas Chambolle, President EMEA • Jean Louis Rodrigues, General Manager Wholesale EMEA • Nate Smith, President Americas • Dan Levine, Chief Brand Officer • Garry Wall, Global General Manager Quiksilver • Emilie Souvras, Global General Manager Roxy • Mike Jensen, Global General Manager DC Shoes 12/ Australian Surf Business Magazine issue #82

ASBMAG supports award-winning water safety program, Surfers Rescue.

• Kevin Meehan, Global General Manager RVCA

Modom CEO Jack Perry says the deal will be mutually beneficial.

• David Brooks, Global General Manager Element

“Sharing resources in a competitive industry makes sense,” said Perry. “Both companies have great people that are well placed to assist both brands. We have been in informal talks for the last two years and the discussion only became serious in the last six weeks. It was great to formalize the partnership in such a short period of time.”

• Ilene Eskenazi, Chief Human Resources Officer and Global General Counsel • Julie Ott, Chief Operating Officer • Mike Yerkes, Chief Logistics Officer • Nico Foulet, Chief Information Officer • Sonia Lapinsky, Chief Integration Officer

SHARK SHIELD ANNOUNCE IPO Ocean Guardian Holdings Limited (Ocean Guardian) has launched its initial public offering (IPO), providing investors the opportunity to invest in the world’s only scientifically proven and independently tested shark deterrent technology. Ocean Guardian is the manufacturer of electrical shark deterrent products using Shark Shield Technology with product approved by the Western Australian government for rebates and tested by leading independent shark scientists worldwide. Under the IPO, Ocean Guardian is seeking to raise up to $5,000,000 (before costs) issuing 25,000,000 new Shares at an Offer Price of $0.20 per Share, with an oversubscription to raise up to a total of $6,000,000. “We are seeking to raise $5 million to increase global demand for our surf and dive products, along with developing a new range of boat and beach products using existing technology and new technology,” said Lindsay Lyon, CEO of Ocean Guardian. “We see significant future growth in the boat market addressing consumers who have higher disposable incomes, and a more service driven B to B business model in the beach protection markets with the potential to remove shark nets, the use of drum lines and prevent shark culling. It’s a win for humans, sharks and our environment.”

MODOM & DHD PARTNER ON DISTRIBUTION DEAL Modom Surf and DHD Surf announced the formation of a partnership to develop and produce surf hardware. Both DHD and Modom identified strengths in each other’s businesses and believe the combination of the two will lead to exciting opportunities within the surf hardware category. “DHD welcomes the fresh thinking of the talented Modom team,” said DHD CEO Tony Emerton. “The addition of surf accessories is a logical step for DHD. Our growth has allowed us to invest in the partnership and we are excited about the opportunities that the category presents.”

“The opportunity to work with one of the best shapers in the world, along with the DHD team riders is incredibly exciting,” added Perry. “Having that kind of expertise and experience is invaluable as we look to expand on new innovative products and categories. We have already produced a leash for DHD and will look to expand into other categories down the track.” Commenting on Modom’s recent expansion into the soft board category Perry said that it will be great to have Darren (Handley) as a sounding board while working to produce the best performance soft boards on the market. On the topic of athlete endorsements and existing rider relationships Perry stated that the company will be “respecting the relationships that all DHD athletes have with other brands.” As a global partnership Modom and DHD will share each other’s vast distribution network. Modom will continue to design and develop product from its Torquay headquarters.

STACEY + PERISCOPE: ENTER DEAL FOR GROWTH Periscope e-commerce, the specialist e-commerce services agency founded in late 2017, has been appointed to work with Stacey Surfboards & Manufacturing as they develop an online offering across their surfboard and apparel business. The appointment comes after the successful launch of the Stacey MFG men’s apparel line in 2017 as well as securing distribution partners in the US to support their e-commerce in the region. Founder and head shaper Lee Stacey offered that “We screen the people that we work closely with pretty stringently. Periscope are a great addition to the team that we’re building globally, including the talent we have in the US.” Stacey General Manager Tim Hill pointed to Periscope’s expertise in digital marketing and e-commerce as strengths that will help the expanding Stacey MFG business. “The team at Periscope has supported us – albeit unofficially - through a really positive transitional period,” said Hill. “To solidify that arrangement as we continue to evolve our offering and enter new markets gives us

even greater confidence in our approach, and leaning on Periscope’s expertise in all things e-commerce is invaluable and far above and beyond the usual agency relationship.” Periscope will be assisting Stacey MFG across data analytics, digital marketing and transition of e-commerce platforms. Periscope Director, Nathan Crouch relishes the new growth opportunities. “We love working with brands like Stacey that have a strong sense of self as well as a great vision for where they want to go – really are the dream client,” said Crouch. “The boys at Stacey are open to trying new things, and we look forward to being a big part of that learning process with them.” “The company, brand, and the people in there, are all great strengths they already have – our job is to present those things to a new public in the best light with an ROI focus.”

HYDRATION LEADER IN GOOD HANDS Hydration leader Mizu distribution will change hands with former Brand Manager of Mizulife Australia, Andrey Jakimoff, taking on the distribution for the brand this month. Previously in Australia and NZ, Mizu was a brand in the line-up of Principle Distribution where Jakimoff had been working for the last two years. Outside of surf, Mizu are heavily rooted in the snow industry as its founder Jussi Oksanen was a pro snowboarder for 20+ years. The story goes that on one of Oksanen’s trips in the back country he just kept on collecting more and more plastic bottles that had been discarded on the side of the road. He wanted to do something about it, so he designed a stainless-steel bottle for himself and his friends so they could be part of the solution rather than the problem. The aptly titled M8 bottle by Mizu is still around today and is one of the company’s best selling bottles. Jakimoff says he’ll continue to work closely with the team at Mizu in the USA on release dates and branding to address the needs of the local market. “We are now gaining traction in Outdoor and Lifestyle as that is where our industry is headed,” said Jakimoff who added they also have clients in the coffee business. “But by far the fastest growing part of our business globally is our Custom Program. We allow for any brand or company to collaborate with Mizu.” Brands such as Electric, Outerknown, T&C, Rojo, SurfStitch and others have all worked with Mizu on custom programs.

INDUSTRY NEWS

The Margaret River Pro in Western Australia that was cancelled last month due to shark activity, will be completed at Uluwatu, in Bali.

Pauline Menczer became the 40th inductee into the Australian Surfing Hall of Fame, cementing herself as one of surfing’s great individuals.

“Hydration is a saturated category but what separates Mizu from the competition is not only the amazing story and lifestyle, but our quality of product. We are happy to go head-to-head with any competitor in the market and come out on top.”

The event will commence within 48 hours after the conclusion of the Corona Bali Pro at Keramas, and finish no later than June 13th, 2018. In the men’s event, 24 competitors remain in the field and competition will recommence with Round 3. In the women’s event, eight competitors remain in the field and competition will recommence with the Quarterfinals.

Contact: andrey@mizulife.com.au Web: www.mizulife.com.au

association news

Surfing NSW Executive Director Mark Windon OAM, said he is stoked to have the support of ASB Magazine. "Surfing NSW is delighted to join forces with ASB Magazine to promote the Surfers Rescue 24/7 program," said Windon. "It’s a good way to shine a light on the program amongst the industry. This is a great opportunity to inform the industry on upcoming courses and news within the water safety realm." Tom Dickson, Surfing WA Sport Development Manager, believes this program is critical across Australian Beaches.

ASBMAG SUPPORTS AWARDWINNING WATER SAFETY PROGRAM, SURFERS RESCUE

"Surfing WA is passionate about the Surfers Rescue 365 program and the overall safety of the surfing community," said Dickson.

Australian Surf Business Magazine (ASBMAG) has joined forces with Surfing Victoria, Surfing New South Wales and Surfing Western Australia to roll out the award-winning Surfers Rescue program for industry groups around Australia.

"The partnership of state surfing bodies and the ASB Magazine with the Surfers Rescue program will help further develop the initiative across the country and we are very excited to work as a group towards further ocean safety."

Branded as Surfers Rescue 24/7 in NSW and Victoria, and as Surfers Rescue 365 in WA, the program teaches recreational surfers how to do CPR and board rescues. It provides crucial training to assist in an emergency situation and could ultimately save a life.

Information on the Surfers Rescue Program in your state can be found at the following links:

Surfers are in the water from dawn until dusk, 365 days a year and are often first to assist in emergencies. With select beaches around the country only patrolled during summer months, surfers can be trained to help out.

Western Australia: www.surfersrescue365.asn.au

Keith Curtain, Founder/Publisher of ASB MAGAZINE, said he is proud to be partnering on such an important program. "Surfers Rescue 24/7 provides all layers of the surf industry an opportunity to get involved with hands-on training and to upskill and maybe save a life,” said Curtain. “As an industry we're responsible for more surfers switching onto the sport and the lifestyle. With that comes an equal responsibility to care, support and protect each other out there. ASBMAG are stoked to partner with Surfers Rescue 24/7 and encourage all brands, all surf shops everywhere to get involved." Industry brands already involved in the program include Dragon, Modom Surf, Need Essentials and Hurley. "It is fantastic to have Keith and the team at ASB Mag supporting this program" said Surfing Victoria CEO, Adam Robertson. "Having the support of the wider Surfing Industry is crucial in ensuring that this program reaches the right people across the coastline.

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Victoria: www.surfersrescuevic.com New South Wales: www.surfersrescue247.com The Victorian Surfers Rescue 24/7 Program is supported by Play it Safe by the Water – a Victorian Government Initiative, Coastalwatch.com, ASB Magazine and Surfing Victoria.

ULUWATU WILL COMPLETE CANCELLED WESTERN AUSTRALIA The World Surf League (WSL) has confirmed that Event No. 3 of the 2018 WSL Championship Tour (CT), the Margaret River Pro in Western Australia that was cancelled last month due to shark activity, will be completed at Uluwatu, in Bali directly following the Corona Bali Pro at Keramas next month. The news although understandable and welcomed by competitors is nonetheless a major blow for Western Australia tourism. In a WSL statement CEO Sophie Goldschmidt said; “The cancellation of the Margaret River Pro was due to unique circumstances this season and we look forward to returning to Western Australia in 2019,” said Goldschmidt. “After consulting with Surfing West Australia about completing the event in 2018, we felt that the shark activity that prompted the event cancellation had not significantly improved and returning was not in the best interests of the surfers this season. We extensively explored various alternatives before deciding to invest in completing the event at Uluwatu in Bali.”

However, according to a statement released by Surfing Western Australia Chairman Mike Best “It’s great news for surfers that WSL has decided to finish off the Pro and allow surfers to earn CT points, particularly so for the WA wild card entrants still in contention – Kael Walsh and Jack Robinson,” said Best. “It’s important to note that WSL owns and manages every WSL Championship Tour event and our role at Surfing WA is to provide recommendations, infrastructure, event logistics, permits and support staff for the Margaret River Pro,” “If up to us, we would’ve liked the Margaret River Pro to be completed in Margaret River. At the end of the day, it’s WSL’s decision on where they wish to complete the Pro and it’s a decision we respect. Surfing WA was not involved in the decision regarding the completion of the event nor did we provide advice on the conditions at Margaret River. We look forward to welcoming WSL, athletes and the travelling event crew back in 2019,” “Surfing WA is constantly reviewing safety strategies for surfers that includes shark mitigation and this will continue in the lead up to year’s Margaret River Pro,” concluded Surfing WA Chairman Mike Best WSL Commissioner Kieren Perrow admits it's a tough call. "As highlighted when we cancelled the Margaret River Pro, there were extenuating circumstances surrounding this season’s event and we committed to trying to finish the competition if possible." “It’s a significant investment for the WSL, but it’s the right thing to do. Uluwatu is a world-class wave and we’re excited to be completing the event there,” concluded Kieren Perrow.

SURFING VICTORIA APPOINTS ASHLEIGH WALL TO THE BOARD The Board of Surfing Victoria announced the appointment of Ashleigh Wall as the new Chairperson taking over from the outgoing Paul Robson. Ms. Wall is the first female chair of Surfing Victoria. Joining the Board of Surfing Victoria in 2014, Ms. Wall is an experienced corporate lawyer, passionate sportsperson and advocate for corporate social responsibility within the state.

Key priorities for Surfing Victoria under Ms. Wall’s leadership will be to continue to work with key stakeholders to increase participation in all levels of surfing and promote gender equality through such things as its female stand up paddle boarding program Coasting. “Surfing already plays a large role in the economy through tourism and businesses,” said Wall. “We will work with stakeholders to create greater value for our state.” Surfing Victoria CEO Adam Robertson is looking forward to having Ms. Wall’s experience leading the organisation. “We are stoked to have Ash elected as Chair of the Surfing Victoria Board,” said Robertson. “She has been an invaluable contributor in her role as board member over the past four years and has the experience to take Surfing Victoria to the next level as Chair.” “I look forward to working with Ash into the future on some new exciting projects.”

THE AUSTRALIAN SURFING AWARDS NAME WINNERS, INDUCT PAULINE MENCZER INTO THE HALL OF FAME The Australian surfing community honoured 1993 Women’s World Champion Pauline Menczer who was inducted into the Australian Surfing Hall of Fame. Menczer became the 40th inductee into the Hall of Fame, cementing herself as one of surfing’s great individuals. Menczer overcame enormous odds, including lack of sponsorship and crippling rheumatoid arthritis, to build a superb pro surfing career, including an epic world title win. She defied every possible female stereotype in the process, sustained by her ingrained surfing talent, courage, and a lethal sense of humour. By doing so she also earned the complete respect of every other surfer on tour. Menczer’s induction was one of a number of presentations as part of the 2018 Australian Surfing Awards. It was a family affair for top individual honours with 2017 WSL Women’s World Champion Tyler Wright and brother Owen winning the Female and Male Surfer of the Year awards, while young Queenslander Reef Heazlewood and North Shelly’s World Junior Champion Macy Callaghan took the Male and Female Rising Star Awards.

WE STAND WITH GRASSROOTS ACTIVISTS All around Australia, in community halls and bowling clubs and around kitchen tables small groups of concerned locals meet regularly to discuss ways of protecting beaches, clean ocean, coastal amenity and wilderness. They’re people willing to stand up for their local coast, often against large, zealous commercial interests. Patagonia stands with these grassroots activists. Since 1985, we’ve given 1% of sales to grassroots environmental groups working to preserve and restore the natural world. As of summer 2017, that amounts to some $89 million in cash and in-kind services, and instead of giving large sums to a handful of causes we give modest grants—up to $25,000 each—to small groups every year for whom this money makes a world of difference. In Australia, that money goes to groups like the Bob Brown Foundation, fighting to preserve the Tarkine coast, and the South West Marine Debris Cleanup which boats in and removes rubbish from the beaches of Tasmania’s inaccessible South West Wilderness.

patagonia.com.au

INDUSTRY NEWS

Billabong lab announces Andy Warhol and Jean-Michel Basquiat collection.

Ryan Hipwood was awarded the Milwaukee Heavy Water Award. Hipwood received $2,000 and a Milwaukee tool pack valued at $1,849 for his impressive year that included a stand-out performance at the seasonending Pea’ahi Challenge at Jaws in Hawaii. The Peter Troy Lifestyle Award which is presented to the person who has given his or her life over to surfing, and in doing so has enriched the lives of other Australian surfers over time, was awarded to David ‘Rasta’ Rastovich. Rasta took a different line through his surfing life, devoting himself to a better understanding of the natural world and of human relationships within the sport. He has pioneered and assisted with numerous charitable and beneficial ocean and surf-related causes. The ASB Greater Good Award was taken out by shaper Nev Hyman’s ‘Nevhouse’ – a cheap and effective method of small-house construction which can be used in the aftermath of traumatic natural disasters in Third World countries. The Surf Culture Award for a project that captures and explores a quintessential element of Australian surfing culture was won by “The Life of Brine” by Phil Jarratt whilst the Simon Anderson Club Award was taken out by the Coffs Harbour Boardriders Club. Trent Mitchell’s amazing convergence of four waves was named the Nikon Surf Photo of the Year and ‘The Big Wave Project’ by Tim Bonython the Nikon Surf Video of the Year. The winners of the Nikon Surf Photo of the Year and Nikon Surf Video of the Year received a brand-new, top-of-the-line Nikon D850 and NIKKOR AF-S 24-120mm f/4G ED VR lens – valued at $6,800. Don O’Rorke was awarded Surfing Australia Life Membership, having retired from the board of Surfing Australia in November 2017, after 12 years of service. The Australian Surfing Awards honours and celebrates the sport’s great achievers and those who have made a significant contribution to the development of surfing in Australia. The Australian Surfing Awards incorporating the Hall of Fame is proudly supported by Tourism and Events Queensland, QT Gold Coast, the Australian Sports Commission, Nikon, Milwaukee, nudie, Australasian Surf Business Magazine, XXXX Summer Bright Lager, Drinkwise, OnStone and Andrew Peace.

media news BETHANY HAMILTON’S NEW FEATURE FILM “UNSTOPPABLE” LAUNCHES WORLDWIDE At 28 years of age Bethany Hamilton has done more and seen more in her life than most of us could ever imagine. She’s tackled challenges on every end of the spectrum, from overcoming a shark attack to learning to live her life in the public eye, to tackling one of the heaviest waves in the world, to figuring out how to become a loving wife and mother… of two. Today she gives us an insight into her incredible story and life like never before in her new feature film “Unstoppable.” The film documents her journey from before the shark attack at age 13 all the way up to her life today. “Unstoppable” is Bethany’s first film since the blockbuster “Soul Surfer,” a 2011 biographical drama film directed by Sean McNamara based on the 2004 autobiography “Soul Surfer: A True Story of Faith, Family and Fighting to Get Back on the Board” which was written by Bethany Hamilton. The film premiered at the Tribeca Film Festival in New York last April.

OCEAN RULES: THE BIKINI COLLECTIVE What does it take to be the best, and what does that even mean anyway? “Ocean Rules,” book one of The Bikini Collective, series follows fifteen-year-old Jaspa Ryder who is on the crest of qualifying to join the World Junior Tour along with her best friends, Mel and Carolyn. But as the girls soon discover, the ride to stardom doesn’t come easy. Jaspa’s head and heart are in battle – she isn’t sure she wants to be a professional surfer which, given her incredible talent, infuriates everyone, especially her envious brother. Who will qualify for the tour? Will Jaspa’s friendships survive the pressure of competition? Multiple world champion Stephanie Gilmore is a confessed fan of the new book series from Kate McMahon ex-editor of SurfGIRL magazine telling sources, "McMahon picks you up and drops you into the ocean with her.” Targeted at the younger end of the YA reader, Ocean Rules, book one of The Bikini Collective, series is a sea-soaked journey on the intricacies of impactful friendships, the transition between sport for fun turning

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competitive, understanding and calling out sexism, lessons learnt from anxiety surrounding the notion of an unexpected plan b, and, of course, plenty of exhilarating surf action.

marketing news

Australian legend Layne Beachley enjoyed the pages and said it’s inspiring for young readers.

GLOBE ROLLS OUT SESAME STREET COLLECTION

“A book that gets to the heart of surfing friendships and competition,” said Beachley. “It’s a must-read for all young ocean lovers.”

Sesame Street’s most beloved characters are now featured on Globe premium skateboards: Cookie Monster, Oscar the Grouch, Bert and Ernie, Count von Count, Big Bird and Elmo.

retail news

All the decks in this collector series use Globe’s Resin-7 construction, with holographic prism foil, transparent and pearlescent ink details, and art plucked from the Sesame Street archives.

CITY BEACH EMBRACE NEW GIFT CARD LAWS, GO ONE FURTHER

As part of the collaboration, Globe is supporting The Sesame Street Yellow Feather Fund, which brings educational materials to children in need around the world.

Australian shoppers and gift givers can now enjoy a lifetime of fairer and simpler shopping with changes to the expiration date of their gift cards. Iconic Australian surf and streetwear retailer City Beach has dumped gift card expiry dates for good. City Beach Chief Operating Officer Anita Dorwald said while New South Wales legislation ruling mandatory three-year gift card expiry terms have recently come into effect, City Beach decided to go one better and remove expiry dates all together. “Not only are we extending our gift card terms to include a lifetime validity, expiry dates will also be lifted for City Beach gift cards bought from 1 April 2017,” said Dorwald. In March the NSW Government introduced a mandatory minimum expiry period of three years for gift cards and gift vouchers sold to consumers in NSW, as well as a ban on post-purchase administration fees, The new requirements have been made by amendment to the Fair Trading Act 1987. The changes strike a fairer economic balance for consumers and businesses in the gift card market. The reforms give consumers access to the full value of their gift card over a reasonable period, while maintaining a workable business model for traders. City Beach offers customers multiple gift card purchase and redemption points including in-store, online, supermarkets and third-party marketplaces. “We decided to take this as an opportunity to scratch expiry dates all together, nationwide,” added Dorwald. “When we first pitched the idea internally it was met with a resounding yes from all stakeholders.” “As well as refreshing our gift card design in March, we embarked on a comprehensive changeout of all old gift cards to make the purchase and redemption experience fairer, simpler and more seamless for all customers. Dorwald added that gift card systems have evolved a lot since the company first launched their cards back in the early 2000s with financial structures that now better manage the burden for retailers in addressing contingent liabilities. “We feel it’s only right we pass these benefits onto our customers,” she said of the changes. “When customers purchase a gift card, their intention is for the recipient to be able to enjoy the full value of the gift card.” “Eliminating expiry dates means gift card holders will enjoy complete flexibility to use them as they please, without having to worry about losing any residual balance.” The iconic company first launched in Australia in 1985 and since then has served millions of Australian shoppers and employed thousands of workers.

In 1969, Sesame Workshop, the nonprofit educational organization, launched Sesame Street to provide better educational opportunities for disadvantaged children. Using the power of media and its beloved characters, Sesame Street reaches little learners at the earliest time in their development and sets them on a positive path for life. Sesame Workshop’s initiatives, funded in part through The Sesame Street Yellow Feather Fund, include: Partnering with the International Rescue Committee to bring early education directly to young refugees in the Syrian response region; Promoting girls’ empowerment around the world, with the help of engaging girl Muppets like Zari in Afghanistan and Chamki in India; Increasing acceptance and understanding of autism through the ‘Sesame Street and Autism: See Amazing in All Children’ initiative. More Information at https://yellowfeatherfund.org

BILLABONG LAB ANNOUNCES ANDY WARHOL AND JEANMICHEL BASQUIAT COLLECTION Billabong announced their latest collection featuring the collaborative works of Andy Warhol and Jean-Michel Basquiat. The collection continues the underground love affair that Warhol had with the surfing community and the dynamic influence Basquiat had on youth culture. "Warhol x Basquiat x Billabong is a delightfully unpredictable ménage à trois of creativity, celebrating what happens when fearless minds come together," said Michael Dayton Hermann, Director of Licensing, The Andy Warhol Foundation for the Visual Arts, Inc. Brad Lancaster, Global VP of Creative for Billabong added, "The best part of this collection is how it brings some the world's most inspiring and exclusive art to a collection of boardshorts and products for the kid who wouldn't otherwise experience it." Billabong explained how the line is a fun departure from their more traditional designs. "Their styles gave us permission to play with a look you wouldn't typically expect from us," said Allison Brook Roberts, Billabong Women's Creative Director. "Swim and tees are the main canvases for the collection, featuring a collision of graffiti-esque yardage prints created by the two highly celebrated artists."

ENJOY THE JOURNEY. LEAVE NOTHING BEHIND.

The Island Surf & Espresso custom V8. Customise your own products at www.mizulife.com.au

INDUSTRY NEWS

team news CLAY MARZO RE-SIGNS WITH CARVE EYEWEAR Clay Marzo is continuing his partnership with eyewear sponsor Carve. Considered one of the best surfers on the globe, Clay first signed on with Carve in 2012 and has now re-signed for another two years cementing his place on the team roster which includes Stu Kennedy and Keanu Asing. “It’s the perfect fit,” said Marzo. “I’m really happy to be part of the Carve family.” Sally Fitzgibbons has joined the Softech team.

It comes through Billabong LAB, a division of the company that supports artists, musicians, designers, photographers and surf icons, The Andy Warhol Foundation for the Visual Arts, a non-profit organization recognized as one of the leading funders of contemporary art in the United States and Artestar, a global licensing agency and creative consultancy representing highprofile artists, photographers, designers and creatives.

WORLD TOUR SURFERS TESTED, EXOTOSIS (SURFERS EAR) DISCOVERED Preliminary findings from a study carried out on a number of the world’s best professional surfers by the Water Base Research Unit at Bond University show that 100% of high level surfers suffer from some level of auditory exostosis, or Surfer’s Ear. The likelihood of Surfer’s Ear drops slightly in recreational surfers, but it’s easy to conclude that as wetsuit technology continues to improve and people can surf in cold water for longer periods of time, ear infections and cases of Surfer’s Ear will continue to rise, leading to an increase in the need for medical attention and ear surgery to repair damage. The Water Base Research Unit – comprised of Doctor Vini Simas, Associate Professor Mike Climstein, Professor Wayne Hing and Associate Professor Rodney Pope – conducted a survey of 14 highly ranked professional surfers for a paper published in the Medical Journal of Australia, and found that all but one had auditory exostosis in both ears, despite only one of them ever having been previously diagnosed. The remaining subject had auditory exostosis in one ear. SurfEars is distributed in Australia by The Leisure Collective and is a revolutionary product developed by Ear Labs, a team of professional designers and dedicated surfers in Sweden.

e-tail news SURFSTITCH ISSUES STATEMENT ON NEW OWNERSHIP SurfStitch announced the completion of its sale to Alceon Group. The SurfStitch acquisition was undertaken through Alceon Retail Holdco Pty Ltd which includes Alceon’s own ecommerce retail operations as well as EziBuy Limited. EziBuy is a New Zealand-based apparel and homewares retailer that was established 40 years ago and now ships almost two million orders

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per year across Australia and New Zealand. SurfStitch and EziBuy will continue to operate independently but utilise the benefits of scale that come from the combined group which has a total revenue of approximately $225m. Alceon is a specialist advisory, investment and capital solutions firm. Alceon’s other retail investments include a 40% interest in Noni B Limited (ASX: NBL) and a controlling interest in Cheap as Chips Discount Variety Stores. Since inception in February 2010, Alceon has funded more than A$1.5bn of equity and debt investments across a total asset base in excess of A$2.5bn. Richard Facioni, executive director of Alceon Group and head of private equity investments, said yesterday he was looking forward to returning SurfStitch to its previous highs. “The underlying SurfStitch Australia business is in good shape; it is fundamentally a good business,” said Facioni. “Unfortunately, it has been caught up in the group’s administration which has caused issues, such as uncertainty for staff, suppliers and customers that we can now put to rest.” Mr. Facioni said Alceon’s plan was to invest capital and restore confidence in the business and capitalize on its unique strengths. “Having the support of Alceon, with our proven retail expertise and ecommerce investments which include EziBuy, creates exciting opportunities for SurfStitch, its team, its customers and its partners.” The Alceon Group have confirmed their confidence in the SurfStitch management team under the leadership of General Manager Justin Hillberg. “Throughout the last 12 months we have continued to focus on our core competencies while preparing the business for success post VA,” said Hillberg. “Now with the support of Alceon and conviction in our strategic plan we are looking forward to generating responsible growth through disciplined execution.” Now that stability has returned to the business SurfStitch will be investing in the brand through awareness initiatives and promoting a revitalised brand proposition to consumers and partners alike. After migrating to a new e-commerce platform in the last 12 months, SurfStitch has the ideal foundation to further develop the customer experience into a truly industry leading proposition. Whilst the responsible and sustained growth of SurfStitch is the primary focus, the management team said it has plans to launch additional storefronts that cater to more specific niches while leveraging off the best-in-class e-commerce and fulfilment capabilities of the existing business.

Clay has been surfing, travelling and working on a new film project due to be released this year called “This is Clay.” The film showcases his talent in the water and his connection to the ocean. Introducing his own signature model eyewear into the Carve eyewear range just over 18 months ago Clay is also proud to be giving back, with part of the sales going directly into supporting Autism Australia (ASPECT) and the work they do. There are plans to broaden the scope to help with similar organisations around the globe in 2018. “Clay is unique in so many aspects of his life, in or out of the water and we love having him as part of the Carve family,” said Matt Whyte Owner of Carve.

MASON HO & SALLY FITZGIBBONS JOIN SOFTECH TEAM Surf Hardware International (SHI) announced two of the sport’s most iconic surfers: Mason Ho and Sally Fitzgibbons, have joined the Softech Ambassador Team under multi-year deals. The Softech softboard range is split into three categories;  The Performance Series, the Summer Series and the Original Series. Sal and Mason will endorse different categories within the brand that tie back to their individual personalities and appeal within the surfing fraternity. “I’m stoked on the Softech range because these boards are opening up new boundaries and opportunities with my surfing,” said Ho. “Like before, it was fun surfing close to rocks, now it’s way more fun, I can pretty much glide right over them.” Sal’s commitment to promoting a healthy lifestyle, and her encouragement around female participation in surfing, makes her a perfect fit for the Original Series, that’s predominantly made up of beginner boards. “I’m super excited to be joining the Softech team, and launching my signature board for beginners,” said Fitzgibbons “Designing a board to start people on their own surfing journey, and riding their first wave with them in spirit, is a really rewarding process. I’m amped to spread the stoke of surfing with every pink board in the line-up.” Mason, on the other hand, never ceases to amaze FCS with his rock hopping antics and his entertaining approach to wave riding, and therefore aligns perfectly with the more agile designs typical of the Performance Series category. Work is well underway on two new signature Softech board models for both Sal and Mason. Sal’s will be a female specific beginner model that’ll come in a variety of sizes, while a new twin fin fish design is on the cards for Mason. Both are scheduled for release in September 2018. Mason and Sally join Softech Brand Ambassadors Tom Carroll, Eric Geiselman, Kyuss King and Asher Wales.

finance news GLOBE’S HALF YEAR RESULTS Globe’s recent profit release confirmed a 28% recovery in profits despite flat sales revenue in the six months to December. As usual, Globe was quiet on details, making it hard for outsiders to glean the underlying trends in each region and brand. After a flat year last year, sales in Australia were down 7% in the six months to December to $38.3m, however EBITDA rose 2% to $5.2m, driven by higher gross profit margins. The North American operation seems to have recovered from poor hardware sales this time last year, posting a 19% increase in sales to A$20.1m (it is not clear if last year’s acquisition of Salty Crew helped here). Globe restructured its US business last year, removing costs in response to lower hardware sales, and things seem to have stabilised. The operation returned to profits briefly in the second half of FY2017, however slipped back into a mild loss of A$1.1m in the recent trading period. European sales rose 1% to A$11.8m, with the division posting a marginal profit of $0.1m. Globe’s overall gross profit margin rose from 46% to 48%, which CEO Matt Hill attributes to favourable “brand mix, customer mix, sourcing improvements, and foreign exchange impacts.” “The results for the half year reflect the significant effort in finding, developing and investing in new brands and categories across our business,” said Matt Hill. “And, at the same time, rightsizing the investment in our traditional business while remaining committed to those brands and categories. It is the ability to continually make these changes which makes this a dynamic and exciting business, with great opportunities for future growth.” The company has been run aggressively for cash in the past 18 months, with total gross operating cash flows of $15.2m versus EBITDA of $10.3m. Globe has been winding down inventory, which has created a $5m working capital benefit back to shareholders. Hence the company was able to pay 40% higher dividends despite profits not necessarily growing at the same rate. Globe’s balance sheet remains very healthy, with no debt and cash on hand of $13.6m. Last March Stephen Hill made an offmarket purchase of 35,956 shares valued at $44,358.92 taking the elder Hill brother’s shares to a total of 12,561,562. Clearly the Hill Brothers believe in the business strategy. Retailing and property billionaire Solomon Lew is among shareholders benefiting from a lift in dividends at Globe in which he's held a 5.9 percent stake for 13 years. Mr. Lew's corporate vehicle Poly Town Pty Ltd is the fourth largest shareholder at Globe. Globe is unlike most listed companies. To quote the CEO Matt Hill in the 2017 annual report “we are essentially a family run business.” The Brothers Hill own over 68% of the company, and comprise two of the three board members, notwithstanding the global push by proxy advisors to beef up boards with non-executive directors. With this level of control, it’s understandable that the company is tight on detail – why make it easier for competitors to look under your financial skirt?

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INDUSTRY NEWS

Surf industry rallies in the Fight for the Bight.

KERING TO SELL U.S. SPORTSWEAR BRAND VOLCOM Kering announced that it intends to sell Volcom to focus purely on luxury goods. The French luxury goods conglomerate, which owns Gucci and Saint Laurent, said it had decided to sell Volcom as part of its strategy to "fully dedicate itself to the development of its luxury houses." It acquired Volcom, which sells skateboarding, snowboarding and surfing apparel, for US$608 million in 2011. The company's decision to sell Volcom is the latest in a series of moves for Kering as it seeks to tie itself more closely to its luxury brands. The company said in January it will shed most of its controlling stake in German sportswear company Puma, and announced last week that it will sell its 50% stake in Stella McCartney back to the U.K. designer.

environment news SURF INDUSTRY RALLIES IN THE FIGHT FOR THE BIGHT ASBMAG has joined Patagonia Australia and a chorus of industry brands and retailers in opposing drilling for oil in the Great Australian Bight. Patagonia, ASBMAG, SBIA as well as thirty brands and retailers have expressed concerns directly to Statoil and together have requested that Statoil abandon drilling in the Bight. “It has been very encouraging to see many brands and retailers from all parts of the surf industry and across Australia unite for a common good,” said Dane O’Shanassy Country Director for Australia & New Zealand at Patagonia. “As we are all aware, this endeavour exposes our pristine coastlines, unique marine life and our industry to an unacceptable risk.” Last Wednesday Patagonia sent an email to Statoil’s Australian Country Manager and also their CEO formally opposing drilling in the Bight. The statement was signed by 32 retailers and brands from the Australian and New Zealand surf industries, including the Australian Surf & Boardsports Industry Association (SBIA). “It’s unimaginable that an oil spill in the Great Australian Bight might wash up on the SurfCoast,” said Keith Curtain, Publisher at Australian Surf Business Magazine. “Yet an oil spill covering Bells is exactly what the independent research shows will happen if Statoil get their way. This isn’t the Mexican Gulf on TV. This is our backyard and we urge all industry to get behind this campaign.” Patagonia’s National Sales Manager Matt Martin said the pristine area is unique and that the fight will continue.

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Cabarita Beach.

“This fight is not over and may be of interest to your customers,” said Martin. “So we encourage you to continue in your support of this important issue.” Support the cause at www.fightforthebight.org.au

"The community is stoked to see our surfing environment honored in this outstanding way,” said Long-time community advocate and Griffith University coastal researcher, Dr Kerrie Foxwell-Norton. Via Tweed Daily.

RIP CURL OFFERS NEW WETSUIT RECYCLING & UPCYCLING PROGRAM Rip Curl is offering a new Wetsuit Recycling Program, and they’re looking for your old rubber to make it happen. The program is being trialed at the Rip Curl Torquay Store and accepts all old wetsuits customers bring in. The old rubber will either be crumbed down and given another life as bitumen (used for road surfacing and roofing), or will be upcycled through Surfing Victoria’s Victorian Indigenous Surfing Program. Other suits will be recycled into another life by Tyre Crumb Australia. The end result is the reduction of waste hitting the landfills and also a new source of wetsuits for those who cannot afford new ones. The trial program ran until the end of April, and if deemed successful will be extended into the future and potentially carried out in Rip Curl stores around the world. If you're not in the Torquay region and you still want to recycle or upcycle your old rubber, simply post a package to the Rip Curl Torquay Store (101 Surf Coast Hwy, Torquay VIC 3228, Australia) with a note saying whether you want to recycle or upcycle the suit.

CABARITA APPROVED AS NEXT NATIONAL SURFING RESERVE The Board of National Surfing Reserves announced that Cabarita Beach and Bogangar region will be declared as a surfing reserve. Local Steering Committee chairperson Dr Kerrie Foxwell-Norton has welcomed the move. The board, which includes a group of coastal experts and is led by Professor Andrew Short and Brad Farmer, commended the locals' nominations of the Tweed Coast break. "While declaring Surfing Reserves at such beautiful places like Caba are largely symbolic in nature, it acknowledges the past, the present and more importantly to future generations, that surfing beaches are a valuable and integral part of our national identity and way of life and need to be respected, preserved and shared,” said Brad Farmer. The Cabarita Beach-Bogangar LSC will develop a commemorative booklet, the installation of an official plaque and host a formal dedication ceremony.

on the move DRAGON'S NEW TORQUAY LAIR* After more than 14 years at their Baines Crescent address, leading eyewear manufacturer Dragon Alliance has moved its South Pacific operation to a new premise located in the recently established Surf Coast Business Park. The brand-new facilities will service as the centre for key sales, marketing and overall brand management operations. Signing a long-term lease, the move demonstrates Dragon’s commitment and investment to Torquay and the Surf Coast community. “After significant planning to ensure our brand’s heritage was represented in the new office fit-out, we are super excited about the new space,” said Mark Hudson, Director for Dragon South Pacific. “It rewards our dedicated employees with a dynamic and progressive space, as well as integrating creative zones within the office design. Torquay and the Surf Coast continues to be the perfect fit for Dragon with its proximity to the ocean, active outdoor community and the presence of many of our peer brands.” The new office will also facilitate key account showings, retail training sessions, and both local and industry events. Dragon’s new office is located at Unit 3, 12 Castles Drive in Torquay, Victoria.

LUSH PRODUCTIONS NAMES NEW HARDWARE SALES REPRESENTATIVE Lush Productions has announced Joey Dodd as the company’s new Skate hardware manager. Dodd’s involvement with the company spans back almost a decade. From sponsored team rider to store manager, all the way through to skate team manager, Joey’s experience in all facets of skateboarding see the process of him stepping in to this new role as a natural and smooth progression. Lush are excited to welcome Joey as the official Hardware Representative across Santa Cruz, Independent trucks, Creature, Ricta wheels, Oj wheels, Mob grip, Krux trucks, Slime balls, Bullet, Black label, Bronson, Habitat, Skate Mafia.

Lush also have recruited a new apparel and soft goods sales representative in Al Wilson. Al brings with him a long history in the industry and will manage all clothing, footwear and accessories across Santa Cruz, Independent, Dark Seas, Loser Machine, Dog Town and State Footwear. “Al will be a great asset to the Lush team with his sales experience and the full-time focus on the brands will be a great asset to the business and customers,” the company said in a statement.

RUSTY ARE COLLECTIVELY ON POINT Torquay, Victoria based Action Sports Sales Agency On Point Collective have officially welcomed Rusty Australia to the OPC family. On Point Collective is home to some of the industry’s leading brands within the action sports market including, Afends, Kustom, VZ, Super, SunBum and Mizu.

SURF CULTURE IS MOVING Surf Culture Bondi will relocate from its current Bondi Junction address to 186 Bondi Road, Bondi. According to a statement released by Andrew Froggart “We have secured a bigger, better and long-term location which is currently in the early stages of the fit-out process. We are looking at opening mid-June,” said Froggatt. “Our current Bondi Junction store will continue to trade right up until opening night.”

KYE FITZGERALD LAUNCHES. NETWORK AGENCY Kye Fitzgerald has launched a new brand agency network. Fitzgerald says the goal is to provide emerging and established brands with affordable and great representation within Australia's boardstores including majors such as Quiksilver, Rip Curl and Board Sports Retail and independents including Beach Beat, Vidler’s, Aloha, Akwa, Strapper and 30 or so other leading accounts. Fitzgerald says he’s already fetched a number of referrals from retailers for brands seeking independent representation. “I will be working on a national level, which may be something that interests quite a few wholesalers out there,” observes Fitzgerald. Checkout https://www.kyefitzgerald.network

COMPLETE NEW REPS AT SURF COMPOSITES Surf Composites have made some lineup changes to their sales force with Justin McMahon from Next Level Agencies representing GoPro & Hydro Flask in NSW from the southern border up to Port Macquarie including Sydney metro region. Surf Composites also announced Bruce Howarth from Aerial Agencies will be representing both brands in SA and NT.

2018

Australian Surfing Awards

INCORPORATING THE HALL OF FAME

W i n n e r s

MALE SURFER OF THE YEAR

MILWAUKEE HEAVY WATER AWARD

Owen Wright

Ryan Hipwood

FEMALE SURFER OF THE YEAR

SIMON ANDERSON CLUB AWARD

Tyler Wright

Coffs Harbour Boardriders Club (NSW)

RISING STAR - MALE

SURF CULTURE AWARD

Reef Heazlewood

Phil Jarratt, “The Life of Brine”

RISING STAR - FEMALE

NIKON SURF VIDEO OF THE YEAR

Macy Callaghan

The Big Wave Project by Tim Bonython

ASB GREATER GOOD AWARD

NIKON SURF PHOTO OF THE YEAR

Nev Hyman, NevHouse

Trent Mitchell

PETER TROY LIFESTYLE

HALL OF FAME INDUCTEE

Dave Rastovich

Pauline Menczer

Photo: Trent Mitchell – 2018 Nikon Surf Photo of the Year

OVERSEAS NEWS

Volcom has officially been voted in by the Fair Labor Association (FLA) as an accredited ‘member.’

ISA forms athletes’ commission in lead up to Tokyo 2020.

u.s news

The Oakley One Obsession survey was conducted by Kelton Global between March 23 and April 8, 2018, among 508 American committed athletes ages 18 and over, using an email invitation and an online survey.

VOLCOM REACHES ETHICAL HIGH WITH FAIR LABOR ACCREDITATION In February of 2018, after years of being an affiliate brand, Volcom was officially voted in by the Fair Labor Association (FLA) as an accredited member, an achievement Volcom has had its sights set on since 2014. It's a badge that sets the brand apart and recognizes the commitment and diligence that has been put into their social compliance program over the last twelve years. In joining the FLA, Volcom will commit to 10 Principles of Fair Labor and Responsible Sourcing and agree to uphold the FLA Workplace Code of Conduct in their supply chain. The Code of Conduct is based on International Labor Organization (ILO) standards and seeks to protect the workers who manufacture a company's goods. Brands can sign on as affiliates, but it takes years of implementation to bring their supply chains into compliance with the FLA's expectations to become and accredited member. The standards aim to achieve decent and humane working conditions in global supply chains and address important subjects like nondiscrimination, forced labor, child labor, compensation, hours of work and more. In 2014, as a first step, Volcom became an FLA affiliate noting that "The FLA provided Workplace Code of Conduct and Compliance Benchmarks that helped Volcom achieve the goal of making sure workers were not only receiving wages for basic needs and training for promotions to improve their lives, but also to be treated with dignity and respect." During its implementation period, the P.A.S.S. team at Volcom (Product and Social Safety) worked with FLA to: • Conduct internal assessments of facilities • Adopt and communicate workplace standards • Provide workers with confidential reporting channels • Train staff to assess and remediate noncompliance issues "We're honored and proud,” said Big Tony Alvarez, Volcom's VP of Global Supply Chain and the head of its compliance program. "It's been a learning process and a challenge, but a continuously positive one. It's been a real partnership between our suppliers, the FLA, and our teams internally. We're so stoked for this achievement and it's a win for all involved."

22/ Australian Surf Business Magazine issue #82

Volcom's compliance program, referred to now as P.A.S.S., began in 2006 with the implementation of their first Code of Conduct and has steadily developed and matured ever since. Volcom's P.A.S.S. team is built on the FLA's shared belief that "The products we buy should not come at the cost of workers' rights." Their membership recognition reinforces that belief. Volcom's accreditation will be up for renewal every three years following a satisfactory FLA evaluation of labor compliance systems and activities during the timeframe.

OAKLEY CAMPAIGN DISCOVERS MANY PREFER SPORT FLARE TO JOB SUCCESS Oakley launched the next chapter of the One Obsession campaign, encouraging participants to make room for their sporting passions – be it sacrifices in family-life, career or friendships. In building the campaign, Oakley created the One Obsession athlete survey that examines the behaviors and lifestyles of “The Obsessed” – the committed everyday athletes who tirelessly pursue their sport – to find true insights into what drives them. The brand movement invites athletes of all abilities to join Oakley’s ambassadors in celebrating the very real, not always glamorous, moments of pursuing your passion. The One Obsession survey looked into everything from daily routines to the biggest sacrifices – be it time, careers or relationships. It provides a window into the emotional connection we have with the sports we love to pursue. The findings were very revealing about what’s OK in the name of obsession: • 91% think about their sport at least once a day. • 21% say they would be ‘completely lost’ without their sport. • 40% of employed athletes would rather excel at their sport than at their job. • 23% of employed athletes say their sport is more important than receiving awards or recognition at  work. • 34% of athletes who have made sacrifices have let go of romantic relationships for their sport. • 29% of athletes who have made sacrifices think they have given up financial success for athletic  excellence. • 51% have trained on their birthday and 40% have worked out on major holidays like Christmas or  Thanksgiving. • 15% simply ‘don’t feel like themselves’ when they are not doing their sport, whether they are cyclists, golfers, skiers & snowboarders, runners & triathletes, or motorsport athletes. Their sport is at the heart of their identity.

O’NEILL’S PARENT COMPANY ADOPTS CUSTOMER-CENTRIC AI MARKETING Independent marketing platform company Emarsys announced that La Jolla Group plans to personalise and enhance its overall customer lifecycle management using the Emarsys artificial intelligence (AI) optimised platform. Gaining access to Emarsys advanced data segmentation and analytics capabilities, La Jolla Group plans to become customercentric through unifying customer experience across email, web and social channels for flagship brands, such as O’Neill. With customers visiting more than 3,000 retailer locations worldwide, La Jolla Group wanted to deepen customer engagement by customising its communications across digital channels, and increase postpurchase conversions and improve lifetime revenues by integrating personalisation and automation into marketing campaigns. O’Neill is leveraging a range of Emarsys solutions to revamp its marketing strategy, including Web Extend that collects comprehensive customer intelligence from its website to deepen personalisation across email and web, and also social channels through CRM Ads. La Jolla Group has also advanced the use of AI by deploying Emarsys Product Recommendations to personalise shopping experiences for customers. “Personalisation is becoming increasingly critical to better serve our active lifestyle customers who seek it at every point during the purchasing lifecycle,” said Nathan Liu, Vice President of E-Commerce and Digital at La Jolla Group. “By embedding AI into our marketing strategy, Emarsys is helping us automate and deliver cross-channel personalisation to both new and existing customers. This partnership and investment will ensure we build longer and better relationships with our customers while effectively meeting their active wear needs.” Sean Brady, President of Americas at Emarsys said the company is excited to support O’Neill’s vision to strengthen customer engagement. “Businesses in the retail space need to take advantage of the digital disruption that lies at their doorstep,” said Brady. “At an early stage, La Jolla Group identified that they can achieve business gains by investing in personalisation, and unite the online and offline experience.”

ISA FORMS ATHLETES' COMMISSION IN LEAD UP TO TOKYO 2020 OLYMPICS The International Surfing Association (ISA) announced the formation of a new Athletes' Commission to ensure that athletes' opinions are heard at the highest level of governance in surfing, standup paddle (SUP) and all surf-related disciplines. France's Justine Dupont, who has medaled in three ISA disciplines (shortboard, longboard and SUP), has been appointed the Chair of the commission. Dupont most recently earned Team Gold at the 2017 ISA World Surfing Games and individual Silver in SUP Surfing at the 2017 ISA World SUP and Paddleboard Championship. Five-time Olympian Barbara Kendall of New Zealand, who serves as ISA Vice President, Chair of the Association of National Olympic Committees (ANOC) Athletes' Commission, will serve as Ex Officio the commission. Along with Dupont and Kendall, the full ISA Athletes' Commission will be comprised of the following members: • Dylan Lightfoot (RSA) • Alana Nichols (USA) • Masatoshi Ohno (JPN) • Casper Steinfath (DEN) • Miguel Tudela (PER) • Ella Williams (NZL) The ISA Athletes' Commission will operate with the following objectives: • To represent the rights and interests of the athletes to the ISA Executive Committee. • To ensure the athletes' opinion is heard at the highest level of governance of Surfing, Stand Up Paddling and all surf-related disciplines. • To proactively consider issues relating to athletes and give advice to the ISA on athlete-related matters. • To liaise with the Athletes Committee of the International Olympic Committee and other sporting organisations to enable the sharing of information and research. • To provide current and past international athletes with the opportunity to contribute to the continuous development, evolvement and growth of the sport of Surfing, Stand Up Paddling and all surfrelated disciplines.

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INDUSTRY NEWS

"What an amazing group of high character people to represent the athletes of Surfing, SUP, and all of their disciplines in the ISA!” said ISA President Fernando Aguerre. “We are proud and honored that these accomplished athletes have accepted to join our commission, which features gender equality and athletes from all continents of the globe. This group is a great representation of the inclusive nature of the sport of surfing.”

Overall Spending Behavior • Overall teen spending up 6% from fall and up 2% from a year ago. • Food, beauty and video games continue to dominate teen wallet. • Athletic cycle above historic average but streetwear cycle accelerates. • Teens opt for Snapchat and Instagram as Facebook stabilizes.

"These athletes will play a vital role in the development and growth of Surfing as we head into the final stages of preparation for Surfing's Olympic debut at the Tokyo 2020 Games. We will be heavily weighing these athletes' advice and recommendations to take their interests into account when making high-level decisions,” concluded Aguerre.

Spending & Shopping Behavior

POLLED TEENS SAY VANS IS THE NUMBER 1 FOOTWEAR BRAND

• Department stores and legacy channels continue to shed share as online hits new highs.

Piper Jaffray has just completed the 35th semi-annual Generation Z survey of U.S. teens and found that overall teen spending has increased. The survey recorded input on overall spending behavior, spending and shopping behavior and overall brand preference. The company gathers input from approximately 6,000 US teens with an average age of 16.4 years. The spring 2018 key findings by Piper Jaffray also included:

• Food re-accelerates as teens’ No. 1 spending category, returning to its 24% peak. • Male spending on video games reaches a new peak at 13%, closing in on fashion. • Beauty spending hit a new high for females at $368 per year led by skincare, up 18% year-over-year.

Brand Preferences • Streetwear has seen the largest incremental gains led by Vans (No. 1 footwear brand) with a 1990s revival underway with Champion and Tommy Hilfiger rising. • Nike mindshare declines; adidas is firmly No. 3 brand (14% share footwear, 6% apparel).

JOB CUTS AT VOLCOM USA HIT EVERYONE INCLUDING SENIOR EXECS Volcom cut several jobs in the USA as the company looks to improve operating income. The reductions included senior executives who had been with the company a long time, including Eddie Miyoshi and Randy Childress. “We confirm that we have made several adjustments to our cost structure,” CEO Todd Hymel told Shop Eat Surf. “We are seeing positive momentum in all distribution channels as a result of our recent brand initiatives to remain strong in our core markets while increasing our efforts to reach new consumers.” “Over the past two years, we have not only evolved the way we market but also the way we operate and manage the business with much stronger financial visibility,” he continued. “These improvements are allowing us to take a proactive step in removing costs that will directly improve our financial results and bring us to a healthier level of operating income.”

There is a lot of change potentially on the way for Volcom as parent company Kering is looking to sell the brand to focus exclusively on its luxury division. In 2017, Volcom revenue totaled ¤230 million (US $284 million), a decline of 3.2%. Volcom’s bottom line improved to a breakeven status compared to 2016. During earnings season in February, Kering called Volcom’s breakeven bottom line in 2017 a real achievement given that the company reported a ¤3 million loss in 2016, and because the top line shrunk in 2017. The bottom line improvements in 2017 were due to Volcom’s push to reduce its cost base and streamline its organizational structure, Kering said. Via SES

Hymel said the move will ensure that Volcom remain nimble in a still volatile and evolving market while also maintaining stronger levels of profitability each year.

• Ralph Lauren moves out of top-10 brand list for males, formerly a top-10 brand since 2002. • Intent to buy iPhone reaches a new high – 84% of Gen-Z will choose the iPhone next (compared to 82% last fall). • eBay mindshare declined to its lowest level recorded at 1.8%, compared to 3% in fall 2017.

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ASB MULTI MEDIA METER 2018

Print Media SURFERS Rank 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. Magazines Tracks Magazine Australia’s Surfing Life Magazine Surfing World Magazine Stab Magazine Surfers Cumulative advertising and editorial impressions using the point score legend opposite. Brands First past the post. To qualify company logos must be clearly legible to the average person. Corporate advertising bearing more than one company logo earns one impression. Brands accrue one point for every legible impression including all editorial and advertising. Advertising & Editorial Ratios Magazines are ranked in order of highest editorial content percentage. The Pointscore Legend 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

20 20 15 10 7 5 2 1.25 1

Athlete

Total

Advertising

—

MICK FANNING

333.75

JOHN JOHN FLORENCE

140.75

CREED MCTAGGART

139.50

1.25

TAJ BURROW

86.00

MASON HO

85.00

CRAIG ANDERSON

68.00

RUSSELL BIERKE

57.00

TYLER WRIGHT

49.25

HARRY BRYANT

46.00

MIKALA JONES

40.00

Brand

Total

Editorial 24

309.75 120.5

20.25

138.25

68 29 29.25 46 8

BRANDS Rank 1

ROCKSTAR ENERGY DRINK

37.00

RIP CURL

36.00

BILLABONG

31.00

QUIKSILVER

26.00

DHD SURFBOARDS

24.00

HURLEY

23.00

RED BULL

23.00

DRAGON

17.00

REEF

14.00

VOLCOM

13.00

Social Media Commentary To kick this instalment of social commentary off, let it be known that we’ve switched it up a little bit and are now ranking surfers via how they’ve performed over on the Print Media Meter Results (meaning the rankings will be the same between the two). This allows a wider range of surfers to be measured, and isn’t just limited to the ‘CTers. With that out of the way, what’s the big news for surfers? Total followings aren’t what you’d expect, Gabby has the game on lock with over 7mil in total. Slater is back on 5mil, then there’s a big drop down to the newly retired Fanning at just under 2mil.

In total, there’s 7 surfers on our rankings that are over the million mark. If you zoom in to just Instagram only, then it shrinks to 4 (Gabby, Slater, Mick and JJF). Follower numbers are kinda stagnant though when trying to find out who is actually doing well, so I had a fish around some social media sites while writing this and found the following engagement rates interesting: Filipe - 3.8% Stephanie - 1.9% Mick - 1.6% Slater - 1.2% Gabby - 0.9% Julian - 0.7%

26/ Australian Surf Business Magazine issue #82

The biggest thing I found interesting here is Filipe vs Julian. They both have very similar numbers follower wise (across all three platforms), but the engagement rates of 3.8% for Filipe and 0.7% for Julian just didn’t add up for me. With that in mind I took a look at all three of their profiles and noticed that: Julian is active across all three major platforms // Filipe is really only active on Instagram. So, to make the playing field a little more even I went to Instagram (seeing that’s the platform of choice right now) and pulled data from their last 30 posts (equal to a month or there about) and got the following rates (based on interactions of 1 point for a like or comment)

Julian is running at 3.1% Filipe is running at 3.47% With that done it made more sense to me that these two are much closer when we compare numbers on the main platform. The biggest difference is in the comments, where Filipe had 8800 comments over the 30 posts and Julian had about half that (4500). Content wise video reigns supreme with Filipe dropping a lot more clips than Julian and noticeably getting a lot more double taps for it too.

ASB MULTI MEDIA METER 2018

Social Media SURFERS Rank #SOCIAL_MEDIA_METER USING THE WSL TOP ATHLETES AS OUR BENCHMARK, WE’VE COMBINED BOTH THE MENS WSL #TOP34 AND WOMEN’S #TOP17 TO DETERMINE THEIR OVERALL SOCIAL MEDIA PROWESS. WHILST THIS LIST IS BY NO MEANS INDICATIVE OF ALL SURFERS' SOCIAL MEDIA PERFORMANCES, USING THE WSL AS THE PINNACLE OF THE SPORT'S ELITE, WE SEE THIS LIST AS A GUIDE ONLY. If you believe there’s a surfer outside the WSL elite who deserves to be on our list e.g. Alana Blanchard (2.99m), then write to us. Using our print media meter top performers we’ve tallied surf brands or brands operating in surfwear distribution as the baseline for our social media list. Using the social media links from each brands Australian website homepage, we’ve combined their Facebook ‘likes’ as well as Instagram and Twitter ‘followers’ to determine our overall social media top performers. If there’s a brand that deserves to be on the list, write to us and let us know. If the link to your social media site isn’t the right one or there’s an alternative social media page for your brand we should be monitoring, also let us know. #SOCIAL MEDIA METER (ALPHABETICAL ORDER) NB NO TOTAL OR RANK DUE TO THE MIX OF GLOBAL AND REGIONAL SOCIAL MEDIA CHANNELS. SHOULD BE USED AS A GUIDE ONLY. TABLE CORRECT AT OCTOBER. TABLE REPRESENTS THOSE BRANDS ON THE PRINT MEDIA METER ONLY. NOT EVERY BRAND.

Onto brands! Nothing new here, the top dogs are still the top dogs – Vans, Quik, Billy, Hurley, Rip Curl and Volcom are all still running hot with large followings. What’s a little different is the brands approach to content, and not the feed either, the stories.

Athlete

Total (millions)

—

GABRIEL MEDINA

7.764

—

KELLY SLATER

5.026

—

MICK FANNING

1.993

JOHN JOHN FLORENCE

1.848

JULIAN WILSON

1.425

FILIPE TOLEDO

1.260

STEPH GILMORE

1.162

JORDY SMITH

0.955

TAJ BURROW

0.674

OWEN WRIGHT

0.643

Brand

Total (millions)

Facebook

Twitter

Instagram

BRANDS Rank 1

—

NIKE

115.086

—

VANS

19.309

—

GO PRO

15.930

—

NIKON

14.096

BILLABONG

4.806

QUIKSILVER

2.019

HURLEY

1.850

REEF

1.831

O’NEILL

1.266

HUF

1.246

Quik and Hurley are dropping a lot of BTS highlights from the WSL tour with Quik giving you a solid look at what their team is up to at the events and Hurley (with Hurley now presenting 5 tour stops you can expect a lot more) doing a lot with their Surf Club program. The others have a highlights program happening more around product/brand happenings, all worth checking out.

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

27/

LIGHTER. STRONGER. TANGLE FREE. FCSFRE E DOM LEASH.COM

fresh

VOLCOM NOA NOISE L/S Code: A0531805 Colourway: Black RRP: $80.00 Available: July Description: Noa’s signature shirt from his Noise Noise Noise Collection. 100% cotton plain weave with wet print stripe.

FCS FCS II MR PC TWIN LIMITED EDITION Code: FMRX-PC03-XL-TS-R Colourway: Pink/Grey Swirl RRP: $149.99 Available: Now Description: The FCS II MR Twin features a contemporary twist on Mark’s original 4 x World Title twin fin design. This popular twin + stabiliser set-up produces exceptional drive and speed, with enough control to confidently push through your turns with power.

MIZU V8 Code: V08AMZAEUA Colourway: Enduro Blue RRP: $64.99 Available: Now Description: The V8 is perfect for longer days when you need to step up your hydration. We may even sneak in a few beers (2 ½ to be exact) or mix up a cocktail for cold drinks all day long. 30/ Australasian Surf Business Magazine issue #82

GLOBE GOODSTOCK UTILITY JACKET Code: GB01837005 Colourway: Sand RRP: $99.99 Available: Now Description: Nylon Taslon, 600mm waterproof coating, brushed poly tricot body lining, taffeta sleeve lining.

BILLABONG ARCH RIVAL TEE Code: 9581020 Colourway: Light Khaki RRP: $49.99 Available: July Description: Introducing the Arch Rival Tee, from the latest Billabong Re-Issue Collection. A reinterpretation of the past.

SALTY CREW MOSSBACK TEE Code: 20035083 Colourway: Black RRP: $49.99 Available: Now Description: Standard fit, 100% combed wingspan cotton.

NIXON BASE TIDE PRO Code: A1212-536 Featured Colourway: Lime RRP: $199.99 Available: June Description: Have Swell, Will Travel. Featuring 550 pre-programmed tides and sunrise/sunset locations inside a super durable, individually tested, waterproof TR90 case, the Base Tide Pro is the toughest in the line-up.

BILLABONG TRIBONG X Code: 9581424 Colourway: Coastal RRP: $79.99 Available: August Description: Introducing the Tribong X, from the Orange Sunshine Collection.

PATAGONIA LOST WILDFLOWER DRESS Code: 58395-sunb Colourway: Sunburst Crux: Beryl Green RRP: $179.95 Available: September Description: Our Lost Wildflower Dress is just right for deep summer: It has spaghetti straps and a racerback, and it’s made of 100% TENCEL® lyocell fabric, which is more absorbent than cotton, softer than silk and cooler than linen—the ideal summer fabric.

SALTY CREW TIPPET COVER UP SNAP Code: 20935021 Colourway: Camo RRP: $109.99 Available: Now Description: Hooded snap jacket. Chest, sleeve and back graphics. 100% Nylon with 3300 DWR coating.

QUIKSILVER WAX OFF LS Code: EQYZT05041 KVJO Colourway: Black RRP: $59.99 Available: August Description: Quiksilver Originals, A modernised strand of Quiksilver's DNA.

VOLCOM DOUBLE DITSY DRESS Code: B1331876 Colourway: Bone RRP: $75.00 Available: August Description: An update to Diamond Tropic Dress S317, this style employs the signature black and white splicing that has been so successful for Volcom. Metal charms complete the detail on this signature style.

VANS ULTRARANGE GORE Code: VNA3MVRBLK Featured Colourway: Black RRP: $159.95 Available: June Description: The brand new UltraRange Gore builds on the athleteinspired UltraRange to create a versatile, slip-on style for women featuring textile, neoprene, and gore strap uppers.

O'NEILL MONSOON SWITCH Code: 4711814 Colourway: Black AOP Available: August Description: 4 way stretch, reversible. Your favourite shorts, just became your 2 favourites. Originals Collection.

RIP CURL F-LIGHT SURF Code: BBPSR2 Colourway: Midnight RRP: $179.99 Available: Now

QUIKSILVER COASTAL OASIS II Code: AQYLI00633 XKKC Colourway: Black RRP: $59.99 Available: June

NIXON REGULUS Code: A1180-001 Featured Colourway: All Black RRP: $249.99 Available: May Description: Team-Designed and Custom-Built in collaboration with The US Special Forces. Dual Chronographs, Water Resistant Pushers, Adjustable Brightness, 5-Year Battery.

O'NEILL PSYCHO 1 Code: 4966 Colourway: Black Graph RRP: $499.99 Available: Now Description: Perfectly balanced design & materials technology align in a wetsuit created for high performance surfing throughout long sessions, in all kinds of cold water temperatures & conditions. Firewall liner combined with TB3 neoprene, minimal seam design & seam weld for maximum warmth & flexibility.

MIZU V5 WITH COFFEE LID Code: VW05AMZAEWCL Colourway: Enduro White RRP: $54.99 Available: Now Description: When you want one small, easy-to-stash container to do two jobs, reach for the V5. Designed with coffee and tea in mind, it is your go-to traveller when leaving home in the morning.

VOLCOM NOA NOISE CHINO Code: A1131805 Colourway: Black RRP: $100.00 Available: July Description: Noa’s signature chino from his Noise Noise Noise Collection. Relaxed straight leg fit, 18" leg opening.

VANS ULTRARANGE AC Code: VNA3MVQR4X Colourway: Drizzle RRP: $159.95 Available: June Description: The athlete-inspired UltraRange AC takes versatility, comfort, and fit seriously providing a clean aesthetic to get you from your local break to worldwide adventures.

SOFTECH ERIC GEISELMAN SIGNATURE 5.0 FLASH Code: FEGII-BUM-050 Colourway: Blue Marble RRP: $409.95 Available: Now Description: This hybrid shape strikes a balance between paddle power, speed and turning response. Equipped with the FCS II system & fins.

RIP CURL MIRAGE ESSENTIALS CROP Code: GSIXC1 Colourway: Blue RRP: $69.99 Available: August

PATAGONIA LONG-SLEEVED FLYING FISH RESPONSIBILI-TEE Code: 39346-GLH Colourway: Gravel Heather RRP: $69.95 Available: September Description: This 100% recycled long-sleeved T-shirt is made from 4.8 plastic bottles and .26 pounds of fabric scrap, and saves 63 gallons of water compared to a conventional cotton T-shirt. Fair Trade Certified™ sewing.

WSL 2018 ATHLETE JERSEY Colourway: Red RRP: $90.00 Available: Now Description: The Official WSL Athlete Jerseys for the 2018 Championship Tour. 100% authentic, made with recycled plastic bottles and part of WSL's Pure campaign. New and improved design, featuring the athletes sponsor logos on the sleeves. 31/

buyers’ guide Boardies

QUIKSILVER HIGHLINE SILENT FURY Code: EQYBS04007 Colourway: TAPESTRY BPH6 RRP: $69.99 Available: August

PATAGONIA WAVEFARER– 19IN. Code: 86622-BBSB Colourway: Balkan Bust/Shadow Blue RRP: $99.95 Available: September

VOLCOM DELUSION STONEY Code: A0831801 Colourway: Pine RRP: $75.00 Available: August

PROTEST CHET Code: 2710481 Colourway: 897 RRP: $119.00 Available: June

OUTERKNOWN APEX (KELLY SIGNATURE) Colourway: Fatigue Block RRP: $240.00 Available: Summer 2018

RHYTHM CANTINA Code: JUL18M-TR03 Colourway: Clay RRP: $79.99 Available: July

RHYTHM HERITAGE Code: JUL18M-TR05 Colourway: Tobacco RRP: $69.99 Available: July

PATAGONIA WAVEFARER– 5 IN. Code: 76598-CEUB Colourway: Cereus Flower/Bend Blue RRP: $79.95 Available: September

VOLCOM SIMPLY SOLID 5” Code: O0811700 Colourway: Black RRP: $50.00 Available: October

RUSTY MIE GORENG ELASTIC BOARDSHORT Code: BSM1255 Featured Colourway: Navy Blue RRP: $69.99 Available: September

ROXY FEARLESS LOVE Code: ERJNS03173 Colourway: BGZ6 RRP: $59.99 Available: August

RIP CURL MIRAGE CONNER SPIN OUT Code: CBOST7 Colourway: Red RRP: $79.99 Available: August

32/ Australian Surf Business Magazine issue #82

OUTERKNOWN APEX (KELLY SIGNATURE) Colourway: Bright Black RRP: $240.00 Available: Summer 2018

PICTURE ORGANIC NEO 20” Code: MBS030 Colourway: Palm Tree RRP: $149.95 Available: July

VISSLA NEOTANICAL Code: M130HNEO Colourway: Black RRP: $79.99 Available: July

VOLCOM NOA NOISE MOD 19 Code: A0831805 Colourway: Black RRP: $80.00 Available: July

SALTY CREW TRANSATLANTIC SHORT Code: 30035008 Colourway: Slate Blue RRP: $89.99 Available: Now

O’NEILL THE ALOHA Code: 4711810 Colourway: Black AOP RRP: $69.99 Available: August

REEF ORCHID WAY Code: A3FBL Colourway: Black RRP: $89.99 Available: July

SANTA CRUZ SEABRIGHT Code: SC-MBC8911 Colourway: Black RRP: $69.95 Available: July

BILLABONG D BAH AIRLITE Code: 9581420 Colourway: Indigo RRP: $89.99 Available: July

BILLABONG HONEY DAZE Code: 658 1366 Colourway: Honey Gold RRP: $59.99 Available: August

RIP CURL MIRAGE MEDINA FLIGHT Code: CBOWK7 Colourway: Green RRP: $79.99 Available: August

GLOBE RED STRIPE Code: GB01728015 Colourway: Red Stripe RRP: $79.99 Available: August

33/

buyers’ guide Swimwear

ROXY PRT SOFTLY LOVE REG UN BRA & FULL RV MID WAIST BOTTOM Code: ERJX303726 & ERJX403628 Colourway: MMG6 RRP: $59.99 & $59.99 Available: September

RIP CURL SUNKISSED PALMS ONE PIECE Code: GSIXM1 Colourway: Peach RRP: $89.99 Available: September

PATAGONIA NIRETA 1PC Code: 77310-VAFR Colourway: Valley Flora/Rosewater RRP: $199.95 Available: September

ROXY GOLDEN SANDY REG BRA & MINI BOTTOM Code: ERJX303750 & ERJX403613 Colourway: CQY0 RRP: $49.99 top, $39.99 bottom Available: September

SANTA CRUZ LAGUNA ONE PIECE SWIMSUIT Code: SC-WBC8674 Colourway: Pineapple RRP: $79.95 Available: July

O’NEILL BOWFIN BIKINI TOP & ISLAND BIKINI PANT Code: n4721922 Colourway: Black Tropical RRP: $49.99 top, $39.99 pant Available: August

PROTEST ESPERANZA BIKINI Code: 7619081 Colourway: 290 RRP: $109.00 Available: June

BILLABONG CARAVAN TINY TRI & ISLA TIE SIDE BOTTOM Code: 658 1612, 658 1615 Colourway: Mineral Green RRP: $45.99 each Available: August

RHYTHM ISLANDER BANDEAU TOP & ZAMBIA HI CUT PANT Code: SWM00W-S132, Oct18W-SW19 Colour: Plantain RPP$: $44.99 each Available: October

AMUSE SOCIETY LIA BRALETTE & CLIO CHEEKY Code: ST15HLIB, SB98HCLC Colourway: Blue RRP: $99.99 top, $79.99 bottom Available: August

RUSTY DELILAH BRALETTE BIKINI TOP & MIDI PANT Code: SWL1260, SWL1261 Colourway: Black RRP: $45.99 top, $49.99 pant Available: July

34/ Australian Surf Business Magazine issue #82

Soli Bailey x Shady Palms.

O R IGI NALS CO LLECTIO N Summer 18 - contact your agent. 35/

buyers’ guide Footwear

RIP CURL BLUEYS Code: TGTCY7 Colourway: Rose Gold RRP: $49.99 Available: July

QUIKSILVER COASTAL OASIS II Code: AQYLI00633 XKKC Colourway: Black RRP: $59.99 Available: June

RIP CURL P-LOW SLIDE Code: TCTE49 Colourway: Black 0090 RRP: $49.99 Available: July

HAVAIANAS SLIM FLORAL TROPICAL (STRIPES) BLACK/WHITE Code: HSPT4343 RRP: $34.99 Available: August

VOLCOM DON’T TRIP Code: V08118S9 Colourway: White Combo RRP: $40.00 Available: July

RUSTY COMPETITION SLIDE Code: FOMO340 Colourway: Black RRP: $29.99 Available: July

DC SHOES BOLSA SP Code: ADYL100032 Colourway: BKW RRP: $29.99 Available: June

VOLCOM NEW SCHOOL Code: W0811550 Colourway: Brown RRP: $35.00 Available: July

ROXY KAIA SLIDE Code: ARJL200654 Colourway: Black RRP: $59.99 Available: August

VANS CHECKERBOARD SLIDE Code: VN-04KIIP9 Colourway: Checkerboard/ White RRP: $59.95 Available: June

REEF FANNING LOW Code: A3KIH Colourway: Black RRP: $69.99 Available: July

RUSTY FLIPIN THONG Code: FOLO125 Colourway: Nude Solid 2 RRP: $19.09 Available: July

REEF CUSHION BOUNCE VISTA Code: A3OKS Colourway: Black Natural RRP: $49.99 Available: July

HAVAIANAS PHOTOPRINT (SHARK) BLACK/BLACK/GREY Code: HTPB1103 RRP: $34.99 Available: August

O’NEILL NACHO LIBRE Code: SP6184005 Colourway: Black RRP: $39.99 Available: July

O’NEILL AUSTIN SLIDE Code: fa8484001 Colourway: Cog Cognac RRP: $39.99 Available: July

BILLABONG LEGACY SLIDE Code: 668 1801 Colourway: Rose Gold RRP: $39.99 Available: July

SANTA CRUZ CLASSIC STRIP SLIDE Code: SC-MYC7635 Colourway: Black RRP: $34.95 Available: July

PROTEST DOWLAND Code: 5690300 Colourway: 269 RRP: $74.99 Available: June

VANS SLIDE ON Code: VN-04LG27K Colourway: Checkerboard white/black RRP: $59.95 Available: June

36/ Australian Surf Business Magazine issue #82

buyers’ guide Hardware

FCS JULIAN WILSON SIGNATURE TRACTION Code: FJW01 Colourway: Black/Orange RRP: $64.95 Available: September

DAKINE ALBEE LAYER PRO Code: 10001754 Colourway: Resin RRP: $59.99 Available: Now

OCEAN & EARTH LAUNCH PAD Code: TP54 Colourway: Black RRP: $60.00 Available: May

CREATURES OF LEISURE JACK FREESTONE Code: GJFBKMXPK Colourway: Black Mix Pink RRP: $64.95 Available: August

TOOLS SURF PRODUCTS J.O.B. SIGNATURE MODEL Code: 4008001 Colourway: '80s RRP: $59.99 Available: Now

MODOM SURF CRAIG ANDERSON SIGNATURE TRACTION Colourway: Black/Light Grey RRP: $59.95 Available: Spring

CREATURES OF LEISURE ARC ICON GROM SINGLE TAB Code: FAI9RX13CI Colourway: Citrus RRP: $89.95 Available: August

FUTURES FIREWIRE FW2 THRUSTERMEDIUM Code: 1018-466-00 Colourway: White/Carbon RRP: $169.95 Available: April

FCS FCS II NEO GLASS ACCELERATOR Code: FACC-NG03-MD-TS-R Colourway: Red RRP: $99.95 Available: September

GLIDE FINS SHORT BOARD Code: HDL Colourway: Black on Orange RRP: $139.95 Available: Now

GLIDE FINS BIG WAVE GUNS Code: QB4 Colourway: G10 Glass RRP: $249.95 Available: Now

FCS FCS II JW PC + AIRCORE LARGE Code: FJWL-PC01-LG-TS-R Colourway: Orange RRP: $169.95  Available: September

38/ Australian Surf Business Magazine issue #82

CHANNEL ISLANDS LINED UP FLAT PAD 3 PIECE2.5MM Code: 20614100993 Colourway: Salt & Pepper RRP: $49.95 Available: Now

FINSOUT FIN REMOVAL TOOL Colourway: Black RRP: $24.95 Available: June

CHANNEL ISLANDS 6”0- SNUGGIE 4MM ENHANCED RAIL PROTECTION Code: 2061510001360 Colourway: Green/Black RRP: $59.95 Available: Now

CREATURES OF LEISURE 6’7” ALL ROUNDER 3-4 Code: CA349067BKBL Colourway: Black Blue RRP: $389.95 Available: August

MODOM SURF MATTE BLACKNESS COMP CORD Colourway: Matte Blackness RRP: $44.95 Available: Spring

TOOLS SURF PRODUCTS CRUISER (8’0) Code: 4001630 Colourway: Black RRP: $40.99 Available: May

CREATURES OF LEISURE GROM LITE 5 Code: LGL9005BKCI Colourway: Black Citrus RRP: $34.95 Available: August

MODOM SURF QUAD BOARD COVER Colourway: RRP: $249.95 Available: Spring

OCEAN & EARTH TRIPLE COMPACT Code: SCSB12 Colourway: Black/Blue RRP: $265.00 Available: May

FCS FREEDOM LEASH Code: FREE-ORG-06F Colourway: Orange RRP: $59.96 Available: Now

OCEAN & EARTH ONE-XT COMP 6’0 Code: LC60XT Colourway: Camo RRP: $48.00 Available: May

CHANNEL ISLANDS COMPETITION HEX CORD Code: 195031000070 Colourway: Grey Cuff/Grey Cord RRP: $39.95 Available: Now

DAKINE 6’0” CYCLONE THRUSTER Code: 10001766 Colourway: Cyclone Black RRP: $170.00 Available: Now

TOOLS SURF PRODUCTS DENIM CASE 6’0 Code: 4560489617954 Colourway: Navy RRP: $69.99 Available: October

DAKINE KAINUI TEAM 6 1/4 Code: 10001081 Colourway: Resin RRP: $44.99 Available: Now

BALIN SUPER 6 CLASSIC ALL ROUNDER Colourway: Black RRP: $49.95 Available: Now

39/

ActionWatch INSIGHTS ANALYSIS OF SALES GROWTH, PRICEPOINTS AND WATCHES

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

INSIGHT DATA SUNGLASSES & WETSUITS SANDALS & BOARDSHORTS AVGSandals $ PER STORE&MAR 2017 TO MAR 2018 Boardshorts

SUNGLASSES AVG MARGINS MAR 2017 TO MAR 2018

Sandals (Girls, Women)

Boardshorts (Boys, Men)

Sandals (Girls, Women)

Boardshorts (Boys, Men)

60%

$12K

50%

$10K

40%

$8K $6K

30%

$4K

20%

$2K

10%

18 M

17 c

n Ja

ov N

pt Se

7 l1

g Au

n Ju

ar M

18 M

c De

ov N

t1 Oc

g Au

l1 Ju

ay M

r1 Ap

ar M

Sales volumes and sales patterns were almost exactly the same for the women's sandals and men's boardshort categories in 2017. Almost half of the year's total sales for each category occurred in January and December.

Average retail margins for boardshorts and sandals varied considerably across the months of 2017 with highest margins above 50% in November, December and January and lowest margins all the way down to 20% in April.

TOP STYLES, MEN'S/BOYS' BOARDSHORTS JAN-DEC 2017 VS JAN-MAR 2018 (IN ALPHABETICAL ORDER) TOP STYLES JAN-DEC 2017

AVG Price

TOP STYLES Q1 2018

AVG Price

PRICE DECLINE

Billabong - ALL DAY

$49.35

Billabong - ALL DAY

$44.95

-9%

Billabong - FIFTY50 X

$74.02

Billabong - ALL DAY OVERDYE

$49.91

Billabong - FLUID X

$77.04

Billabong - FIFTY50 X

$61.02

-18%

Billabong - SERGIO

$46.95

Billabong - FLUID X

$70.78

-8%

Billabong - TRIBONG X

$70.00

Billabong - SERGIO

$41.33

-12%

Hurley - PHANTOM FAST

$77.83

Billabong - SPINNER LAYBACK

$43.04

Hurley - PHANTOM FREDDY

$77.50

Hurley - PHANTOM FAST

$63.63

-18%

Quiksilver - BLOCKED RESIN CAMO 20"

$79.23

Hurley - PHANTOM FREDDY

$63.94

-17%

Quiksilver - NEW WAVE EVERYDAY 20"

$57.06

Hurley - PHANTOM BLACKBALL

$62.84

Rip Curl - HAWKSON 21"

$68.37

Rip Curl - HAWKSON 21"

$54.25

7 of the Top 10 Styles in 2017 also show up on the Top 10 list for Q1 2018, but with dramatically lower average prices.

40/ Australian Surf Business Magazineâ&#x20AC;&#x192; issue #82

-21%

SANDALS SALES GROWTH

MEN'S SANDALS

YEAR-OVER-YEAR

PERCENT OF UNITS SOLD

25% Men / Boys

20%

Women / Girls

$80+

Q1 2018 2017 2016

$70-$80

15%

$60-$70

10%

$50-$60

5% $40-$50 0% $30-$40

-5%

$20-$30

-10%

$10-$20

-15%

$0-$10

-20% -25%

Q1-17

Q2-17

Q3-17

Q4-17

Q1-18

The downward trend since Q2 2017 continues in 2018, especially for men and boys. Women's sandals declined by double-digits 4 out of the 5 quarters.

10%

20%

30%

40%

50%

60%

For all three categories the price points are trending towards the lower segments.

BOARDIES / SWIMWEAR SALES GROWTH

MEN'S BOARDIES

JANUARY THROUGH DECEMBER 2017

PERCENT OF UNITS SOLD

15% Boardies - Men / Boys

Swimwear - Women / Girls $80+

10%

$70-$80

$60-$70

$50-$60 $40-$50

-5%

$30-$40

-10%

Q1 2018 2017 2016

$20-$30 $10-$20

-15%

-20%

10%

15%

20%

25%

Women's swimwear growth and Men's boardshort sales growth patterns were almost identical with more pronounced declines for Men's Boardshorts in the last three quarters.

PERCENT OF ANNUAL SALES - SANDALS

WOMEN'S SWIMWEAR

Q1 - 2018

PERCENT OF UNITS SOLD

Q1 2018 2017 2016

$100+

Women Men Girls Boys

$90-$100 $80-$90 $70-$80 $60-$70 $50-$60 $40-$50 $30-$40 $20-$30

â&#x20AC;¹ $20 Over half of the year's sandal revenue still came from sales of women's sandals in Q1 2018, but the noticeable shift towards men's continued.

10%

15%

20%

25%

30%

41/

FEATURE ARTICLE / WORDS PHIL JARRATT

The State of Brand Management HISTORY OF BRAND MANAGEMENT: HOW THE WORLD’S MOST POPULAR BRANDS DID IT AND WHAT THE NEW CREW IS AIMING FOR IN TODAY’S MARKET Almost 20 years ago when I was doing some work for Quiksilver I wrote a paper that was circulated within the global management group about the rising resentment towards branding. It was heavily influenced by the recent publication of Canadian author Naomi Klein’s ground-breaking work, No Logo, but also included my own theories about youthful surfwear consumers turning away from the brands their fathers wore – a direct consequence of the big surf brands pushing into the mall majors to create volume to appease shareholders. A couple of people in the management chain must have thought my paper made sense because I was asked to present it at a global sales and marketing meeting at Les Arcs in the French Alps, where it almost ended my executive career in the surf industry before it had properly begun. A lot of people in the room started fiddling with their bindings and thinking about another session on the mountain before the light was gone. Others looked thirstily in the direction of the bar. Still others – mostly the generals – just looked at me in disbelief. This was heresy! You couldn’t say this stuff. You couldn’t even think this stuff. At the time the Big Three were fast-tracking into the billion dollar stratosphere. Their brands ruled, and would always rule. Amen, pass the Kool-Aid.

42/ Australian Surf Business Magazine issue #82

The big bosses were kind of right – there was still plenty of tread on the tyres for the big brands, even as they rolled out into the mass market, driven by the growth prerequisite of any public company – and Naomi Klein and I were kind of wrong about a few things. She thought globalization would cause a revolution, I thought a couple of hundred more fat slobs coming out of WalMart in Quik or Bong tees would result in brand desertion – the apocalyptic endgame of that ‘90s mantra, “big is the enemy of cool.” But there was also an element of truth here. Brand arrogance would ultimately almost bring down the big guys, and set in train a shift in brand preferences that has become far greater than the management teams could ever have anticipated. Now, as many of the legacy brands have given up much of the sacred ground of the core market to startups, there is so much more choice, not just of logo but of fundamental brand values that govern purchasing power. Now more than ever, when a surfwear consumer buys Patagonia, it’s because he wants to save the world. When he buys Rip Curl, it’s because he wants to be corer than thou. Now more than ever, the murky science of brand management has to be precise.

So what the hell is brand management? So much bullshit has been written about “branding” that it’s easy to forget that it originated with cattle being herded into a pen and burned with a red hot iron! If you do the rounds of the business studies websites you’ll pretty much get confusing and repetitious babble like this: “Brand management begins with having a thorough knowledge of the term ‘brand’. It includes developing a promise, making that promise and maintaining it. It means defining the brand, positioning the brand, and delivering the brand. Brand management is nothing but an art of creating and sustaining the brand. Branding makes customers committed to your business. A strong brand differentiates your products from the competitors. It gives a quality image to your business.” All of which could be summarized in three words: build brand loyalty. In the surfing context, I’ve always liked the simplest assessments. How could you ever top Quiksilver founder Alan Green sending off a very young Bruce Raymond to California to oversee the brand’s first licensing deal with this instruction: “Make them like us.” Greeny meant make them the same as us, by which he not only meant recreate the revolutionary scallop-leg, high-yoke boardies, but also recreate the no-bullshit Torquay surf mongrel ethos. It was a great licensing philosophy, even though it didn’t always go strictly to plan. (In Europe the first Quik boardies had underpants sewn inside them, which is about as un-Torquay as you can get.)

In California an entrepreneur named Duke Boyd used McVay’s surf team concept to promote a brand he established in 1960 called Hang Ten. Over the next decade a roster of just about every quality surfer who emerged became aligned with the brand, and when Boyd sold it to the supermarkets in 1970, he did it all over again with Golden Breed, and when Golden Breed began to falter, he did it all over yet again with Lightning Bolt. To both Duke and Kimo, brand management was rather like managing a sausage factory. In the 1960s Platt’s and Adler’s became the first boardshorts brands in Australia, quickly moving into limited surfwear ranges where they were joined by Kream and Baron, who attempted to merge surf with fashion and failed. But by far the best brand manager of the period was surfboard manufacturer Shane Stedman, whose Shane Gang featured the best surfers and shapers in the country, plus a few rock stars and hot chicks, and soon moved from hardware into jeans and – most successfully – into sheepskin “Ugg” boots. Stedman used his outgoing personality and sharp sense for trends to go where no surf company had gone before, and it must be said, where some never wanted to go again.

“THE SUITS HAVE REDUCED AND

Grooming a successful licensee is only one element of what we now know as brand management, but if we just slightly skew the meaning of Alan Green’s words they also form the essence of the whole wide world of brand management. “Make them like us.” Better yet, make them love us! That’s the guts of the whole thing. To put it into modern marketing-speak, “maintain subcultural credibility”.

SHRUNK THE INDUSTRY, SO I SUSPECT

Branding, a Brief History

THE MEANS TO DO MORE THAN THAT.

I suspect maintaining subcultural credibility was the last thing on Jack O’Neill’s mind when he invented the modern wetsuit in 1952 and started selling them from a pop-up shop (generations before the term was born) in chilly San Francisco. He just wanted to be able to enjoy a session without freezing! But perhaps inadvertently he established surfing’s first great brand and became its first great brand manager – his authentic surfer persona and the technical savvy of his product the twin drivers of its success.

AS I TOLD GREENY CIRCA 2007,

THAT THE PEOPLE INVOLVED IN BRAND MANAGEMENT NOW ARE JUST SHUFFLING THINGS AROUND AS THEY DON’T HAVE

THE KOOKS HAVE TAKEN OVER.” - BRUCE RAYMOND

Ironically, 20 years later Jack would also become the guru of succession planning when he lost his left eye while testing son Pat’s invention of the surf leash. The leggie needed a bit more R & D, but Jack’s new pirate look became the brand motif for the next 40 years, and Pat turned out to be one of the few successful second-generation founder/brand managers.

The Shane business model was built on loveable hype. Alan Green’s Rip Curl wetsuits and his subsequent Quiksilver boardshorts were both built around a distinct lack of bullshit. Residing at the crossroads where form meets function, they became the defining products that created the modern Australian surfwear industry and ultimately influenced the world.

The next two great brand managers in surfing were more like hucksters than surfers, but both played an important role in promoting surfing to a broader audience. Kimo Wilder McVay was a Honolulu nightclub talent manager (he discovered Don Ho) when he decided to do something about the declining fortunes of surfing’s biggest name, Duke Paoa Kahanamoku. In 1961 he formed the Duke Kahanamoku Corporation making Duke a figurehead for Duke’s Restaurant in Waikiki’s International Market Place and created the Duke Kahanamoku Surf Club, which used the talents of budding surf stars Joey Cabell, Paul Strauch, Fred Hemmings and Butch Van Artsdalen to sell everything from skateboards to surf trunks to pop-out surfboards, all bearing Duke’s name.

These brands emerged nearly half a century ago with Gordon and Rena Merchant’s Billabong not far behind. Yet they remain the inspiration for and the greatest influence on the generations of brands that have followed, even though two of the Big Three now live in the ethereal world of capital management. Still, the brands themselves retain some clout.

Just as the whole thing was about to disappear into a swamp of tackiness, McVay hired schoolteacher and big wave rider Fred Van Dyke to create a Duke Kahanamoku invitational surfing contest at Sunset Beach which finally gave the brand credibility with a new generation of surfers - particularly after the inaugural event was won by cute-faced local man-child Jeff Hakman.

What did Quiksilver, Rip Curl and Billabong do? Wanting to hear what the brand managers themselves thought about the evolution of surf biz, I sent out a brief questionnaire to an eclectic mix of yesterday’s heroes and a few of today’s. And I even heard back from a couple, although in the time-honoured tradition of marketing department imperiousness, several thought a response was uncalled for. For an outside-the-tent-pissing-in viewpoint, I also consulted one of Europe’s leading brand doctors, a boutique agency that successfully made the transition from surf to fashion and back again.

43/

Bruce Raymond The first port of call in any discussion about surf brand management has to be Bruce Raymond, the one-time pro surfer who designed and finessed the global image of Quiksilver over decades at the helm of its licensing branch, Quiksilver International. Amongst Bruce’s credits (some of them shared) are the first branded surf videos (The Performers, Quiksilver Country etc.), the dream-tour instigating Quiksilver Pro G-Land, the Quiksilver Crossing and The Young Guns series. He also played a part in grooming Kelly Slater and Lisa Andersen as brand icons, so it came as no surprise that when asked his call on the heroes and legends of surf brand management, Bruce nominated himself, tongue only slightly in cheek. This is, after all, the man responsible for what many people regard as the defining moment in surf brand management – when Raymond, backed by members of a local martial arts society, seized a truckload of counterfeit print fabric from a factory in Bali. “You are stealing our spirit!” he screamed from the back of the truck. Raymond then dumped the fabric on the low tide reef at Uluwatu and made a bonfire of it. The photo, a visual warning to all counterfeiters, appeared in Newsweek magazine and around the world. Now busy developing a mid-life, late-blooming talent for painting, as well as becoming a health foods entrepreneur, Bruce’s responses were clipped and to the point. What is the role of a brand manager in the surf industry today? “To put your brand at the forefront, and if that can grow the industry as it goes… all the better.” Are there any major differences between managing a surf brand and a fashion or sports brand? BR: “Yes and no.” Who makes the best brand managers – salts or suits? BR: “Salts, with suits just behind them, or off to the side.” What’s the future of brand management? BR: “The suits have reduced and shrunk the industry, so I suspect that the people involved in brand management now are just shuffling things around as they don’t have the means to do more than that. As I told Greeny circa 2007, the kooks have taken over.”

Gary “Spurter” Wall Quiksilver’s contemporary Bruce Raymond, Gary “Spurter” Wall, echoed many of Bruce’s sentiments, including his mentor’s selfselection as a brand management legend. But he also showed a clear understanding of changing roles in a changing landscape. “A brand manager’s job today is to define and articulate the ‘why’ of the brand. I think the principles are the same for surf, fashion, sports or anything else - defining and executing brand strategy. What your brand represents in the consumer’s mind might be completely different but the management principles would be similar. Ultimately, it’s about getting consumers to join your tribe, and as long as a brand continues to contribute to the culture,

those in the tribe will continue to believe in it. Salt is in the blood, suits can be purchased, so in choosing the best attributes for a brand manager I would still lean on the side of educated salts with a degree from the school of life. You can’t study the X-factor. Today we need strong leaders who can inspire a well-rounded team of specialist individuals.”

Neil Ridgway One-time Tracks editor and long-time Rip Curl global brand manager (although he wears a much fancier title than that) Neil Ridgway is an affable fellow with a penchant for sharing his many opinions with the world at large. He is also in the unique position of representing the brand values of the only surf brand in the world that is still doing what it set out to do – disprove the mantra that big is the enemy of cool. Privately-held Rip Curl’s growth has had its ups and downs over its half-century in the marketplace, and of course its monitoring is more difficult than for public companies, but trust me, the Curl is in a pretty good place and Ridgway can take some of the credit for that. Ridgy said: “We are a brand marketing company, so my job is to make sure that the message and product that is delivered to surfers respects the brand’s vision and values and purpose in all territories, across all channels, at all times. The brand manager’s job is to get everyone singing from the same hymn book, and then to strategize around those assets. In Rip Curl’s case it’s to be the ultimate surfing company and to keep our feet planted firmly in the sand and our minds in the lineup.” He’s good, Ridgy! Even when he trots out the clichés, they’re usually quality ones. But it can’t all be about vision and values, can it Neil? What about product? “If you don’t make it with quality and you don’t respect the value proposition to the customer at all times, they will walk away pretty quickly. We know this because we are the customer, and we test all the products ourselves and on our pro team.” Ridgway declined ASB’s offer to nominate a legend or hero of surf brand management, saying, “No one person is bigger than the brand. People come and go, but the values and vision of the great brands never waiver.” However he was not so sure that the value and vision was any different to other sports or even fashion: “The theory (of brand management) is the same in terms of strategy. Only the tactics are different. The surfers are the most potent connection with the audience we have, so you need to use them as an amplifier of brand voice. You also need to find the emotional connection to surfers and the things they really love about you, which in Rip Curl’s case are wetsuits and tech products, and (marketing campaigns like) The Search, and everything it means deep down. The rest flows from there.” A salt or a suit in the brand manager’s chair? “Salts. The suits can never really understand because they will never be the customer.”

“SALT IS IN THE BLOOD, SUITS CAN BE PURCHASED, SO IN CHOOSING THE BEST ATTRIBUTES FOR A BRAND MANAGER I WOULD STILL LEAN ON THE SIDE OF EDUCATED SALTS WITH A DEGREE FROM THE SCHOOL OF LIFE. YOU CAN’T STUDY THE X-FACTOR. TODAY WE NEED STRONG LEADERS WHO CAN INSPIRE A WELL-ROUNDED TEAM OF SPECIALIST INDIVIDUALS.” - GARY “SPURTER” WALL

44/ Australian Surf Business Magazine issue #82

“THERE’S A RELATIONSHIP BETWEEN HYPE AND DELIVERY, AND IF YOU GET IT WRONG THE CUSTOMERS WILL WALK AWAY. TOO MUCH HYPE AND YOU DON’T DELIVER UP TO EXPECTATION, YOU’RE IN TROUBLE. THAT HAS BECOME MORE PRONOUNCED IN THE NEW MEDIA WORLD. KEY MESSAGES CAN SELL BETTER THAN SWAMPING THE MARKET WITH YOUR STUFF.” - DEAN BENNETT

Andrew Flitton Another long-termer in the branding trenches is Billabong’s Andrew Flitton whose perceptions – like so many first generation “brand understanders,” Raymond, Walker, Law, Warbrick, Merchant, Hurley, Lee etc. – are framed by the journey from surfer to surfwear executive. “In those days knowing what was real surf was not so important because the customer had nothing to compare it to, and was basically stoked on anything,” he says. “With limited media and an inflated importance of word of mouth, legends and heroic stories were shared between surfers, and early survivor brands like Rip Curl capitalized on these legends through their associations with the best of the time, like Wayne Lynch. In those days the tribe was small and surfers travelled and stayed together in tight-knit groups. The commercial leaders had perfect relationships between commerce and creativity, and were able to fan the flames of intrigue through making products that improved the surfer’s experience and were endorsed by the legends.” Flitton hypothesizes that this successful formula remained basically unchanged into the 1990s – the industry’s heyday – but in the new millennium expansion has led to dilution and become difficult to control. “Retailers began having more influence over the outcome of the brands and the brands were forced to listen to maintain sales. New managements were then grappling with maintaining the balance between staying in business and remaining relevant. The push for product marketing was overtaking storytelling and the need for personnel that could activate overtook the need to understand.” Andrew Flitton is only too aware that old hands in the industry are calling this phase “the race to the bottom,” but he remains optimistic about the future of the surf brands. “There’s a lot to be learned from Patagonia and the brands that are trying to make a difference. There are many changes ahead for the surf industry and retail in general, but surfing has a kind of magic and it will always prevail.”

Dean Bennet & Alex Craven Englishman Dean Bennett graduated from Plymouth University at the turn of the century with a degree in “surf science and technology,” which sounds like he should be designing wave pools, but in fact his specialty was marketing, which led him to a job at Quiksilver, just as the European company was imploding over the purchase of Rossignol. Bennett left to start his own Londonbased branding and PR agency, Coffin On Cake, with partner Alex Craven. When the surfcos began to tank, Coffin switched focus to fashion, but their final gig before selling the agency last year to start And Consultancy in Portugal was to create global hype for Red Bull’s big wave vid “Let’s Be Frank”. Few people of their generation understand crossover branding in the youth market better than Bennett and Craven.

Bennett said: “In any industry the role of the brand manager is to see that the credibility and the authenticity stays with the brand. It should be the number one point with every brand because as soon as you lose those things you’ve lost your core and you’ll never get it back.” Craven added: “When people sell out they lose everything, and you can never come back from that. Our advice to people was always never relaunch, never rebrand. When people hear a ‘re’ they know that you’re admitting failure.” Bennett: “We had so many people rock in and say they wanted to start a tee shirt brand tomorrow because they were so sick of how commercial the industry had become, and they wanted to do something cool and credible. As soon as I heard ‘cool and credible’ I switched off. If you’re talking about it you’re not.” Craven: “Their ideas are not coming from any real passion, they’re just reacting to what they perceive as the faults of others. But many of the really cool and credible brands evolved simply from the passion of the people who started them. I think you can tell when a brand has that if you strip away the product entirely and just focus on the sticker – if a kid can love and care about that sticker, then you have a successful brand.” Bennett: Well, speaking about brands rather than individuals, I like what Vissla is doing,. They have strategically positioned themselves very well. They’re not high performance and they’re not total hipster. They’re somewhere in between and that’s a safe place to be because you’ve got room to grow and maintain credibility at the same time. Vans is the classic case of clever brand management and sustainable growth. Outside of surf to some degree, I think Red Bull is a very well-managed brand. They put so much money into marketing but it seems to pay off in sales domination.” Craven: “Vans has a huge product range and it’s everywhere, but their marketing is focused on footwear and skate, so they’ve maintained credibility while broadening their market, which is not easy to do, because as many brands find, you can’t be everything to everyone.” Craven: “The medium has changed but the message and the theories remain the same. What’s really changed is the speed of change, and you have to manage around that.” Bennett: “There’s a relationship between hype and delivery, and if you get it wrong the customers will walk away. Too much hype and you don’t deliver up to expectation, you’re in trouble. That has become more pronounced in the new media world. Key messages can sell better than swamping the market with your stuff.”

45/

FEATURE ARTICLE / WORDS JOCK SERONG

Indomitable: The Many Lives of Rob Bain FROM A FACTORY JOB CHOPPING TIMBER, TO SHOP GROM AND SKATEBOARD WHIZ TO SURFING WORLD TITLE CONTENDER, AND ON TO GLOBAL ROLES WITH A PIONEERING SURF BRAND...ROB BAIN HAS SEEN AND DONE THINGS MOST OF US CAN ONLY DREAM OF.

46/ Australian Surf Business Magazineâ&#x20AC;&#x192; issue #82

It’s tempting to say he’s been lucky. Or outrageously talented. But that would be to overlook his most striking characteristic – a straightforward determination to get the best out of everything life throws at him. Because life has thrown Bainy some lifethreatening, soul-destroying shockers. He gets up, he dusts himself off, and he starts again – as likeable as the Road Runner, yet as indestructible as Wile E. Coyote. As life stories go, this one is more instructive for us in the surf industry than a thousand positive thinking podcasts. So it’s worth asking – just what makes Rob Bain tick?

Why Rob Bain is Rob Bain The part of life you might call an ordinary Australian childhood, growing up just across from Manly Beach, was tragically brief for Rob Bain. His father died when he was thirteen, and in his own words he “went off the rails a bit” after that. “I was on the Coca Cola skateboard team with Cheyne Horan and travelling the country doing demos. It was the same time as Dogtown and the Z Boys. My dad was in hospital with cancer and there was nothing they could do for him. I also realised that the chaperone of our skate team (and teacher at our school) had a fancy for young boys. I quit the skate team, lost my dad to cancer and hit the streets. I think the thing that influenced my life from that point was maybe an inner anger that could’ve been both a help and a hindrance in my case. It made me very competitive, but it also brought out a dangerous wild side and lack of trust.” After a succession of unremarkable jobs, including one in a factory and some others in surf shops, Bain managed to turn the surfing obsession that had begun at age ten into a slot on the Australian team for the world amateurs. In a fairly typical evolution for surfers in the early ’80s, he slept on couches in California through his evolution into pro ranks in 1984, clinging to financial survival through a solitary surf shop sponsor.

Cheating Death Things turned his way over successive years. He says he “survived the ’80s madness” (without being too specific about the nature of that madness) though his most celebrated feat of survival in that decade was the monster forty-foot closeout set at Waimea in 1986 that almost drowned him – legend has it that he passed out on the sand, then smoked his way through the shock. By 1990 Bainy had risen to become a genuine world title contender. He blew it, he says – the first of several hard realities that were to descend on him in coming years. In 1994 he survived being trapped in a collapsed hut in the jungle during a tsunami in G’land: underwater, in the dark, pinned by debris and tangled in a mosquito net. At thirty-two, he’d cheated death twice. He retired the following year ranked a creditable ninth in the world. Taking stock at that point, he had a wife and two kids, a mortgage and an urgent need to find a living.

Looking back over his surfing career, Bainy noted “I don’t think I’ve necessarily been the best at certain things, but I’ve always had an inner burning to win. I did a few sports well when I was young, but surfing took me out of a bad situation and put me in what was the best job in the world. I walked out of that factory job with a view to do whatever it took to not return. If that meant beating people in a surfing competition, then so be it. I think the one thing it taught me was that if you get knocked down, you get back up, dust off and have another crack. I’m not sure that pro surfing really opened any doors, but it may at least have let me be heard once or twice.”

Life Post Tour So it was that in rapid succession Rob Bain opened the Manly Surf School, took a share in “the original airport store” Beach Culture, and even had a plan to open a backpackers in Fiji. None of those ventures came to fruition for him. He doesn’t like to discuss why. He finally got some traction with a role as a “Hot Tuna sales guy” for NSW. The company didn’t want to pay him to surf anymore, but they had a sales position going in Sydney. “I vividly remember sitting in my car in peak hour traffic, making my way to an inner-city office, watching Qantas flights going overhead and thinking ‘what have I done?’ Around that time I was selling to a small store retailer and he stopped me mid-sales pitch and said “Mate, how does it feel? A month ago you were one of the top surfers in the world, and now you’re here making me coffees and trying to sell me this shit.”

“I didn’t know what to do, but I knew this was the beginning of my new journey. Hot Tuna was a very fashion-forward brand in a conservative surf market. The owner, Richard (Meldrum), wasn’t afraid to tell the biggest buyer in Australia to get stuffed if he thought he was getting the rough end of a deal. He’d send me in to see the biggest account in Australia, with an accessory range with no prices, no colours, no delivery dates, to simply see what they thought.” None of this was easy for a recently-retired athlete, but Bain concedes it did teach him to sell. It turns out competitive instinct has a place in sales, too. From Hot Tuna Rob moved on to a sales manager role at Peak Wetsuits. “We had a very small team, and we were under the tutelage of Rip Curl. I was the GM - green as anything and trying to learn what I could. One thing I did learn was that you need to make people want to work for you, or with you. No matter the situation, if you can make someone feel better about themselves and empower them in some way, it helps in any situation. When it all boils down, we all just want to feel a little better. We all spend a lot of time at work, so it’s crucial to have a good culture and show that you always have people’s back and that you can get your hands dirty.”

47/

“I quit the skate team, lost my dad to cancer and hit the streets…it made me very competitive, but it also brought out a dangerous wild side and lack of trust.” O’Neill

Another Brush With Death

Rob had always been intrigued by the culture at Californian wetsuit pioneers O’Neill. “What I admire most about O’Neill is Jack and the wetsuit. The fact that he pioneered this industry, opened the first surf shop, invented the first wetsuit and did it all in his own maverick way - it’s just epic, really.” Bain said he tried to join the company in the late ’80s, but they knocked him back because he was “too unprofessional and a bit of a party guy.” It wasn’t until he’d proven himself at Peak that they reconsidered their assessment of him in 2000. “I took on the role of national sales manager. Didn’t do any due diligence and walked right into a horror show. Closed accounts across the country, excess stock in the millions and a product line all over the place.”

After O’Neill Bainy started again, casting back to friendships from a brief, earlier stint at Morrison Media (with Surfing Life mag). But before we delve into that phase, there’s another classic piece of Bain survivalism that needs covering: the head injury. Here’s how Bain described the incident to Surfing World magazine a couple of years ago:

Bain said O’Neill had remained solid across performance products like wetsuits, but had lost its way a little when it came to surf fashion apparel. “When you consider the challenges of competing against the biggest three surf brands, having a similar product portfolio can force you to do many things, but it can also lead you to develop product that is not in keeping with the brand. We had to get back to basics and reform what was essentially a core brand back to having the retailers trust us. I hit the road for years and we worked our arses off to improve things.” It’s the stint that’s often seen as defining Bain’s post-pro career, but fourteen years in a global GM (whom Bainy archly points out was a non-surfer) made him redundant. In corporate terms such sackings might look ballsy, “disruptive” even. But in human terms a widely-loved surf industry icon had been thrown on the streets. “We’ve seen it all too often. A new CEO comes in and cuts a swath of destruction through an organisation to disrupt and bring change. I was part of a culling, and it was a pretty traumatic experience. It was hard not to take it personally. I was always considered a lifer at O’Neill, and I thought I was doing a good job in my region and globally, so it came as a shock to me to be let go so matter-of-factly. Many blokes define themselves with their roles and their work and I was no different. Part of my role was to keep the brand aligned to surf at all times, and this ended being the very thing that put me offside with the CEO at the time. Rather than embrace an expert in the field, because he didn’t understand it, he chose to push it away.” Bain continues to make a clear distinction between that incident and the deeper history of the company. “O’Neill is, and will always be, a very solid surf company. The original surf brand. It has to ensure that it has saltwater in its veins at all times.”

“I walked out of that factory job with a view to do whatever it took to not return. If that meant beating people in a surfing competition, then so be it.”

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“It was October 2009 at North Avalon, my local. I was surfing with my son Billy, who was about seventeen at the time. It was four foot, really good conditions. I caught one from way inside and did a really long floater and landed in the flats. The wave sectioned so I dived in, head-first with no hands up – straight into a boulder. I felt everything explode down my spine like a bomb went off. I reached up to my head, as you do when you think you’ve cut yourself, and my hand went inside my head. I’d scalped myself from the back of my right ear all the way over the top of my head. I’d peeled it like an apple. Eventually the scans showed I’d fractured the C7 vertebra in my neck, and the T2, 4, 5 and 7 vertebrae in my thoracic spine, as well as snapping my first rib.” “I spent three months in a body brace. At one stage my wife came into the hospital and I was on a walking frame in the corridor with this gigantic swollen head and I smiled and she kinda smiled back politely, and I realised that she hadn’t recognised me. We laughed our heads off over that later.” Bain was out of the water for nearly six months, graduating from “just a dip” to a stand-up paddleboard, then a mal, and finally a shortboard. “I was shit-scared lying on that beach. I was scared of having a brain bleed – I knew how hard I’d hit that rock. But there was only a small amount of time that I was really low. I’ve never been helpless, and I’ve always fought my way out of situations. I don’t know if this is this an aspect of my competitiveness, but when I was trapped under that hut (in ’94) I felt that competitiveness to fight my way out. With this, it wasn’t like that. It was about going with it.” “The one thing I learnt from the accident is that it’s the small things that matter. Love, family, surfing, walking the dog, enjoying work even. I don’t think it was until (the accident) that I came to realise how precious just being around is. When you think you’re gonna cark it, it has an effect on you. And being laid out in a body brace for a while gave me some time to take stock of my hectic life and the need to re-group. I know also that I’m on borrowed time and every surf is a good surf; it’s my happy place, where I’m totally in that moment. I love it more now than ever and want to keep doing it.”

New Media Beginnings Fast-forward to 2014 and that O’Neill retrenchment. Turning a dark chapter into an opportunity, Bain formed a partnership to buy Morrison Media’s surfing stable with Craig Sims and Gra Murdoch. “I’d been unemployed for some months. I started to stress about money and my family. I got a call from Craig Sims (Morrison Media’s publisher) offering me a job back selling ads, after twenty years! I’d recently been interviewed by a recruiting firm: ‘So Rob, tell me about yourself…’ I was dressed in a suit, thinking ‘What the fuck is going on here?” “I didn’t want to be working in some office out west, but the surf industry’s well-known to think you’re dead if you’re over fifty. I knew Simsy from competing against him in Africa in the ‘80s and knew he was a straight-up guy. So I started selling ads for him, started hitting budgets and working closely with Surfing Life and in particular White Horses. Call us old school if you like, but there is a beauty in print – you can escape into the pages and there’s a real sense of occasion. Digital has its place but it’s a noisy environment and polluted with anyone remotely considering themselves credible or wanting to be heard. We wanted to develop two titles that stood for something real and were based on the real values of surfing and a love of the ocean.” “But Morrison Media was bought by another business, who really only wanted the Frankie brand and we could see that our time was numbered under their ownership. We valued the titles, had grown them and were experiencing support. So we decided to buy them and start our own small publishing/media business. And so three goofyfooters went at it on our own. I’m part-owner of both titles, but my involvement is negligible (for reasons which will become clear below). We know there’s a place for print, but only if it can do something that is not easily replicated by digital. We’re building something that’s timeless, reputable and of high quality.”

O’Neill Part Two If this looks like an outbreak of middle-aged calm and order in the helter-skelter life of Rob Bain, don’t be deluded. Because just when things had settled down, he took a call from O’Neill’s Australian GM Justin Daniels – would he come back? “We spoke about his goals with O’Neill. What he envisioned needed to happen, and I knew that he was on the right path. He spoke a language I could relate to, and was realistic in his aspirations. He’s a family man, a full surf frother and a solid bloke.” Bain agreed to let bygones be bygones, and returned to O’Neill. “It feels good. I know the young crew who work there. I know and love the brand and I was honoured in a way that they asked me to return. The role is a few notches down in career status from where I was sailing before, but it’s fun and a challenging environment with good people, so I welcome the opportunity.” As with everything these days, Bainy is philosophical about his prospects. “If it lasts for a long time, great. If it doesn’t, I go surfing more.” “The culture is real good internally, which is super-important. Plenty of surfers and we’re now very clear on who we are and why we exist. We’ve developed a brand USP we believe in, across all our pillars and products. We’re comfortable in who we are and where we’re going. It’s better to grow slowly and strongly than to rise fast and fall faster.”

“My role is vastly different in the sense that I’m not working globally at present and my role focuses on the ONSP brand marketing. Previously I was travelling a lot and working with many different distributors, licensees, cultures and businesses. It feels like a return to the past in a way, as I’m now thinking closely about local accounts, the local market and what it takes to transition aspects of the brand in the right areas. There’s no place like home, and it gives me the opportunity to surf more.” One comparison Bain can now make is between the culture at O’Neill in America and the one here in Australia. “There’s market differences from the US to Australia, but in general terms we’re a lot closer in surf than Europe. We work closely with the US in many forms and have a very solid relationship built over a long time. If we take trends out of the picture and talk about the attention to detail in the way the wetsuit guys work on their product, then there are lessons for us (in Australia), for sure. We have often pushed the US to move on certain things, but they will never do anything if it is to be at the sacrifice of the performance of the product. That I respect. I also love the way that their business is driven by the tides, winds and swell of Santa Cruz.”

“We (O’Neill) have often pushed the US to move on certain things, but they will never do anything if it is to be at the sacrifice of the performance of the product. That I respect.” Rob recently launched an Insta account with the arresting handle ‘@bigbadbobbain’. He laughs at the mention of it: “My kids gave me the name when they said I should join up. I actually really enjoy it, as it gives me the chance to take the piss out of myself and also tell stories and reconnect with a bunch of people I’d normally not see or hear from.” Perhaps it’s a sign of a more relaxed approach from one of the firebrands of our culture. When asked what deeper insights he’s drawn from the remarkable highs and lows of his surfing life, he offers “Just enjoy it for what it is. We all have certain strengths, so play hard towards those. Learn what you can and listen.” “Surround yourself with people who make you feel good and return the same as much as possible.” And lastly, on the old work/life balance, “It’s easy to go the wrong way, so keep it in check. Work to live, don’t live to work.”

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FEATURE ARTICLE / WORDS BRIAN WALKER

TALKING SHOP – THE RETAIL DOCTOR

Boards of today and tomorrow “AGILITY IS FUNDAMENTAL TO LEADING A TEAM THROUGH TIMES OF CHANGE” - SANDRA E. PETERSON Boards stepping in, CEOs being replaced, impatience with results all lead me to wonder whether the role of the board has changed in modern times. Or is it in fact changing, or does it need to change? And are these valid questions for today’s retailers? I suspect so, as retail moves at breakneck speed, as technology and its respective iterations permeate our society in every imaginable way and consequentially consumer behavior is radicalised in ways that many, if not most, retailers are candidly struggling to keep speed with. If boards are charged with, amongst other topics, managing risk – why is the mantra for retailers today to make riskier decisions with far less margin for error? What metrics does the modern retail board use to assess performance of a retailer? Is it the classic return on capital invested, sales, margin or even market share, yet the majority of capital required to increase the relevance of today’s and tomorrow’s retailer simply wouldn’t use these metrics in isolation or in entirety to measure return ratios. End to end integration, fulfilment, data mobility, social media conversion, the growth of retail communities, A.I, investment, are all topics for today’s board.

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Let’s also consider what skill set is required in today’s retail organisation to fulfil these growing customer needs? And what are the skill sets of today’s modern board member to equally accommodate this change, provide overseeing, and governance and risk management? “The board is responsible for the overall governance, management and strategic direction of the organisation and for delivering accountable corporate performance in accordance with the organisation’s goals and objectives. This responsibility is usually set out in the organisation’s constitution or in the enabling legislation under which the organisation is registered or incorporated,” so say the Australian Company Directors association. This interpretation is very similar in citations from 1999 and 2017 and therein lies the point regarding as to whether boards and their current composition/structure and impact are as relevant.

The other factor to consider is time. The classic board and executive horizon is also being dismembered as classic performance criteria, dividend results and shareholder expectations drive the agenda, yet time acts are a different paradigm to many of these traditional parameters once again. How does long term tenure and agility reconcile? Traditional thinking, responses and actions provide us traditional results and outcomes when our customers move far faster. To be an agile board for today and tomorrow requires, coaching, agility, responsiveness, and advocacy. First published on Inside Retail on February 23rd, 2018.

This quotation from Sally Freeman, Senior partner for KPMG as to the ongoing necessity for boards to add value and be agile is interesting and highly relevant. “The board of tomorrow needs to be agile. It needs to be able to adapt to changing stakeholder moods, expectations and demands for greater transparency. To stay relevant, future boards will need to be able to change composition depending on the issue, disruption or opportunity presenting itself – and these are likely to change rapidly.”

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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