ASBMAG#88

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Australasian Surf Business Magazine July

2019

ASBMAG.COM AUS $6.95 (INCLUDING GST)

FEATURE ARTICLES: Green is the Bottom Line, Not the Top-Dressing | A Life and Death Perspective: Inside The Raglan Surf Co Legacy

#88


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CONTENTS

ISSUE #88 JULY

inside this issue

contents 08 16

Industry News Feature Article GREEN IS THE BOTTOM LINE NOT THE TOP DRESSING LOHAS REPORT

20

Media Meter

24

Fresh

26

Buyers’ Guide

30

Buyers’ Guide

32

Buyers’ Guide

34

ActionWatch OZ Insights

36

Feature Article

42

Faces in the Lineup

DENIM

SHIRTS

WETSUITS

RAGLAN SURFO CO

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 Montgomery Carey & Associates www.mcaaccounting.com.au ACTING EDITOR editorial@australiansurf.biz ADVERTISING Keith Curtain 0417 747 855 sales@australiansurf.biz QLD & NZ GREG SCOTT +61 407 577 997 sales@australiansurf.biz FASHION CO-ORDINATOR Fiona Hampson fashion@australiansurf.biz SUB EDITOR Jock Serong Bryan Dickerson

ASB PROUDLY SUPPORTS

The Mobium/Patagonia LOHAS report represents a watershed in our thinking about environmental values in the surf industry.

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.

Before the report, it might have been reasonable to assume we all live in a fairly lazy status quo: those who shop on sustainability, the people who scrupulously separate their garbage and watch the descending price of solar batteries, will pay more for surf products they believe to be sustainable. They will put up with a lesser range, with less convenience. Others will shop on price and brand associations like sponsored athletes and logos, the things that amount to perceptions of tribe and prestige.

SOCIAL MEDIA

It’s all going out the window.

EDITORIAL PLATFORM Australasian 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.

@asbmag https://www.linkedin.com/in/keith-curtain https://twitter.com/asbmagazine https://www.facebook.com/asbmag2004/

Any brand that hasn’t sniffed the breeze by now is in for a rude awakening. Two processes are at work here: one is that concern for environmental values has spread right through the market now. It’s not just the Prius driver in the hemp jeans. The other, related phenomenon is that demand factors are favouring sustainable production, so that brands can now turn away from

toxic processes and yet remain comfortably within the market mainstream. Bottom line? The price penalties are gradually moving from sustainable production to unsustainable production. Two more observations to think about while you tend your non-GM heritage tomatoes: One, those price penalties apply throughout the production cycle, from sourcing to manufacturing, to retail and distribution. So changes can be made everywhere in the business, not just in the chemical ingredients of the wetsuit. And two, greenwashed marketing and lazy motherhood statements like “We’re 100% committed to our environmental values” will no longer cut it. The numbers – and we’ve set them out in some detail in our report – clearly demonstrate that consumers are asking tougher questions and are using the answers to guide their purchasing decisions. Jock Serong Guest Editor


@globebrand | GLOBEBRAND.COM | est. Australia 1994

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PARTY SHIRTS


INDUSTRY NEWS

brand news RIP CURL & ADCL ANNOUNCE GLOBAL EYEWEAR PARTNERSHIP Rip Curl and ADCL announced a new fiveyear global eyewear license partner¬ship, commencing in mid 2019. ADCL has operated the European Rip Curl eyewear license since 2008, and in that time Rip Curl has become a leading brand in the European eyewear market with over 300,000 units sold per year. “Rip Curl is stoked to announce the expanded global partnership in optical eyewear and sunglasses with ADCL,” said Steve Kay, General Manager of Rip Curl International. “ADCL has done an outstanding job of growing the Rip Curl optical eyewear business in Europe over the past ten years. They are a highly trusted partner who we believe have expertise and passion required to grow our business on a global basis with leading opticians and other eyewear specialists. The commercial advantages, said Steven Kay, are that ADCL are experts in the development and distribution of optical eyewear frames. “This is an area where Rip Curl has little expertise. We discovered in Europe that there is significant demand for Rip Curl branded eyewear,” Kay told ASBMAG. “ADCL will receive full marketing support from Rip Curl International, together with distribution opportunities in Rip Curl stores on a worldwide basis”. Olivier Petitfils, CEO of ADCL, echoed this sentiment and gives insight into the new global partnership. “ADCL has been receiving an increasing number of enquiries about Rip Curl eyewear from outside of Europe,” he said. “We have identified strong opportunities for these products in North and South America, Asia, Australia, Africa and the Pacific. ADCL is an independent French company created in 1994 by optical professionals and has been a leading player in optical frames and sunglasses since that time. With more than 25 years of experience, ADCL finds itself as France’s premiere eyewear manufacturer. Its mission is to find solutions that will achieve “great vision for better living” for its customers. There will be further development of optical products and a larger range of premium Rip Curl sunglasses, together with the development of a new mid-price range of sunglasses. As with all Rip Curl products, Rip Curl eyewear will focus on premium distribution only. Distributors have already been appointed for the USA and Canada. Potential distributors are currently being evaluated for other key regions. These distribution opportunities may include outlets such as Sunglass Hut, with Steven Kay confirming with ASBMAG that Rip Curl would have ‘no problem’ with distribution in Sunglass Hut.

MARQUEE BRANDS NAMES GBG OFFICIAL APPAREL PARTNER AND DISTRIBUTOR FOR DAKINE Marquee Brands announced its partnership with Global Brands Group (GBG) as the official apparel partner and distributor for Dakine brand, overseeing all apparel categories including sport performance, lifestyle, outerwear and swim. The Sports & Lifestyle division of Global Brands Group, based in Boulder, Colorado, will focus specifically on the design, development 8/ Australasian Surf Business Magazine  issue #88

and distribution of apparel dedicated to serving the needs of the action sports consumer. Dakine will join Spyder under GBG’s Sports & Lifestyle umbrella and will begin distribution in Spring 2020. Marquee Brands portfolio of brands also includes Body Glove and Ben Sherman brands.

Martin Dunn has more than thirty years of experience in professional surf coaching, including 25 WSL ranked surfers including Connor O'Leary and Nikki Van Dijk as well as the Australian national team for five years. As the co-contributor and author of the ISA Level 2 Coach curriculum,

international fashion shows; she’s downto-earth and authentic and at the same time she’s world class. We’re excited about working with Imogen and looking forward to enjoying the ride together,” said OTIS Eyewear CEO Nathan Omodei.

“Dakine has always been a product-driven company committed to creating trusted equipment and that dedication will only continue as we add a new best in class partner to drive our technical apparel and outerwear. GBG not only shares our commitment to product performance across all categories, but also brings global strategic partnerships with GORE-TEX and PrimaLoft®. We are excited to build on our foundation from the water to the mountains and the lifestyle in between.” said Pamela Levine, SVP of Brand Management, Dakine at Marquee Brands.

Martin’s knowledge is already the standard for coaches throughout the world. Together with the former corporate entrepreneur and digital innovation lecturer at LMU Munich, Raffael Schmidt, they’ll address the lack of availability and affordability of world-class surf coaching for the everyday surfer.

on the move

ASBMAG reached out to Nick Adcock President at GBG, Sports & Lifestyle Division who confirmed that it’s "business as usual in Australia while we evaluate the global business and product strategy. No immediate changes planned but will review in next six months to make sure we are maximising the product impact and distribution globally."

BURTON TO SUPPORT ATHLETES DURING PREGNANCY Burton (USA) have announced they would amend athlete contracts to ensure they are protected during pregnancy. According to Burton, American middle-distance runner Alysia Montaño's story in the New York Times, titled ‘Nike Told Me to Dream Crazy, Until I Wanted a Baby’ is the unfortunate status quo for women who become professional athletes, with sponsors often forcing hard decisions for mothers. Burton believe that no one should be forced to choose between a career and a family. As such, the company has made key amendments to its athletes’ contracts to support women who spend their lives pushing the boundaries. Ever since Burton’s Kimmy Fasani paved the way over a year ago by deciding to continue her professional snowboarding career through pregnancy, Burton have been exploring ways to reaffirm their commitment to athletes who may want to make the same choice. “To make sure our sponsored athletes never have to go through what runner Alysia and others endured, we’re changing all female athlete contracts worldwide effective immediately to include language that supports and protects women during and after pregnancy,” the company announced via its website. Burton Chief Marketing Officer Sarah Crockett announced the changes to Burton athletes by saying; "We respect you as whole people, and value your contributions to the sport of snowboarding, but also so much more than that. This is a partnership that has many dimensions and ensuring that this doesn’t lapse in times where you are growing your family is incredibly important to us, and we know it’s important to you as well," said Crockett.

AUSTRALIA’S MOST DECORATED COACH LAUNCHES SURF6 SURF6 is a new digital coaching service, headed by Martin Dunn, Australia’s most successful surf coach and 12 x head coach of the Australian surfing teams together with business partner Raffael Schmidt. SURF6 offers world-class digital coaching for the everyday surfer. Through a specially designed assessment that derives from professional coaching knowledge, the SURF6 coaching experience is completely personalised.

According to SURF6, there was no professional, state-of-the-art system accessible (at scale) for the average surfer to achieve fast progress and allow for self-paced learning. SURF6 finally closes the gap with their new digital training system. Users who follow this easy step-by-step approach see results in just thirteen weeks. The goal of SURF6 is to revolutionise surf coaching and become the global standard of surf technique, education and training to create better surfing and ultimately more fun. For more information visit www.surf6.coach

VANS & FORMER TO RELEASE FIRST-EVER COLLABORATION Vans and Former joined together for a firstever collaboration between the two—and the first footwear collaboration with any brand for Los Angeles-based Former—the Vans x Former collection was created hand-in-hand with the Former design crew and features three limited-edition footwear styles, an EverRide Stretch boardshort, and a zippered short-sleeve woven shirt. Founded in 2016 by Vans global team rider Dane Reynolds, along with fellow surfer Craig Anderson and skaters Austyn Gillette and Dylan Rieder (RIP), Former is an emerging Los Angeles-based lifestyle apparel brand working to establish a more distinct aesthetic beyond what is expected in action sports. Its exclusive drops introduce limited runs of monochromatic designs with artistic imagery heavily informed by its founders, four of the most stylish and influential riders of our generation. The Vans x Former collection debuted at select Vans Surf retailers here last month including;

BOARDRIDERS BURLEIGH HQ SOLD FOR $36M Boardriders has sold its Burleigh Heads Headquarters, with the sales and purchase contract recently inked between Singapore based Aims Apac Reit (AA Reit) and Boardriders subsidiary GSM Rocket Australia to buy the freehold industrial facility on the Gold Coast for a reported $38.46 million. In November, Boardriders announced its intention to sell the company’s Burleigh Heads base with the focus to free up capital to reinvest in its business. Further, Boardriders said it would maintain its occupation of the site under a twelve-year lease. The sale price was below market expectations for the former Billabong HQ in Burleigh Heads which market sources expected the price range for the property between the $45 to $50-million price bracket. The deal amount was arrived at after considering an independent valuation by CBRE Valuations, which put the property at A$38.46 million. After including stamp duty payable and other transaction costs, the total estimated cost of the acquisition is about A$41.5 million. The property will be leased to GSM Operations for twelve years on a triple net lease basis, which is a lease structure where the master tenant is responsible for outgoings of the property, including repair and maintenance costs, insurance, and taxes, among other things. According to press reports, the first-year rental from the property is A$3 million, and will increase by 3 per cent a year, with a rent review at midterm of the lease. Under the contract, the GSM Operations also has an option to renew the lease for another five years.

• Stay Luck, WA

The development, which sits on a land area of 33,300 sq. m, with a total net lettable area of 14,833 sq. m, comprises a warehouse and office facility, as well as a two-storey retail building.

• Thomas Surfboards, QLD

Source: The Strait Times.

• Sanbah Surf, NSW • Onboard Store, NSW • Lucky Surf, NSW

More www.vans.com.au

team news IMOGEN CALDWELL JOINS OTIS EYEWEAR OTIS Eyewear announced the appointment of Imogen Caldwell, a hard-charging surfer and international model as the brand’s newest global ambassador. Imogen was born and bred in Western Australia, where the OTIS mineral glass eyewear brand was originally established. Imogen is a true embodiment of WA style, and the brand could not be more excited to have her join the family. “We’re super excited to have Imogen join OTIS – she’s the perfect example of who OTIS is. She’s from remote Western Australia yet she’s widely travelled & loves what the world has to offer; she’s at home taking on eight-foot barreling waves as much as she is on the catwalk of the many

SPEAKYS MOVES TO MARKET SQUARE Surf retail icon Speakys has traded for the last time at its original Little Malop St location and has moved to a new ¬location in Market Square. Speakys, which celebrates its 50th year this year has relocated into Geelong’s inner-city Market Square shopping centre after 43 years trading from its Little Malop St premises. Owner Nathan Lyons said the reputation of the mall had finally “got the better of us”. ASBMAG congratulates Speakys on fifty fantastic years and to the bright future ahead at Market Square. More on this next issue.

AROONA GROUP OFFICE & WAREHOUSE RELOCATION Sydney (AUS) based Aroona Group, one of Australia’s largest suppliers of Surf, SUP and Kite products will move office and warehouse operations to the one location in Brookvale. The move means Aroona will shift from their existing 3PL provider (Third Party Logistics, which was based in Western


FIND REFUGE IN THE SEA


INDUSTRY NEWS

Sydney) and manage all operations and logistics in-house.

sponsorship news

“While we did have a great 3PL partner, we want to offer our customers a faster, more personal service in processing and delivering our products to the market,” said Managing Director, Mitch Ashton.

IKEA & WSL TO COLLAB ON ‘SURF-CENTRIC’ RANGE

“With the increase to our diverse surfboard brand portfolio, which now includes; NSP Surf/ SUP/Foil, Surftech (Lopez, Walden, Takayama, Munoz, August, DMS, Haydenshapes, Sharpeye, Bark), Maui Fin Co (Hydrofoils, Surf and Windsurf Fins and Accessories) and Nuu Surfboards, we hope that combining and relocating our warehouse /office to Brookvale, we will be offering a faster, more efficient service to our Dealers.”

In a new collaboration with World Surf League (WSL), IKEA is diving into life around the water, connecting sustainability with an active life and mobile living. With around 70% of its surface covered by oceans, Earth is rightly known as the blue planet. The ocean is also a major producer of the oxygen we breathe, making it a crucial part of our everyday life regardless of where we live.

Effective Monday 24th June 2019 Aroona Group will located at;

IKEA is teaming up with WSL to better understand the everyday life of people who have a mobile and active way of living in close rhythm with the ocean. There are 370 million people across the world interested in surfing and more than 40 million active surfers. No sport relies on the ocean as much as surfing, which is why sustainability and protecting the ocean are naturally important to surfers.

Aroona Group Warehouse 7B Green Street Brookvale NSW, 2100 Contacts remain the same

JEVON LE ROUX REPLACES JUSTIN HILLBERG AT SURFSTITCH Former SurfStitch Managing Director, Justin Hillberg has transitioned to a new role as Group Operations Director at (SurfStitch parent co) Alceon Retail Group. SurfStitch recently brought in a new MD to run the business announcing former South African, Jevon Le Roux to the role of Managing Director. Le Roux recently formulated and directed the strategic transformation of Gloria Jeans and previously launched Hurley, in South Africa and was General Manager, Sales and Marketing at Billabong South Africa.

AMY STEWART TO RIP CURL ECOM MANAGER Rip Curl’s Amy Stewart has been promoted to the position of ANZ eCommerce Manager in the surf and fashion industry, Marcie has worked as a creative director, airbrush artist and surfboard designer, shaper, copywriter, fine artist and poet. Indosole is a simple idea that translates seamlessly to product design. There is an elegant simplicity and integrity that give the Indosole brand its unique quality and feel. Check out https://indosole.com.au

SURF SHOP – RETAIL AND ONLINE FOR SALE Having spent almost fifteen years living their passion, the owners of Soul Surf have decided it’s time to wind down. Set up as a traditional-style surf shop, ideally located in Mona Vale on Sydney’s northern beaches, this successful and easy-to-run business has a unique range including vintage and retro, as well as their own brand of locally made surfboards, plus accessories, clothing and homewares. Included in the sale is all intellectual property, such as all social media, the trademarked brand name of “Soul Surf ” and exclusive labels. With an established client base, large social media following and an updated website launched in March 2019, you are set up and ready to roll. If you would rather be hanging in a shop full of surfboards, chatting with like-minded surfers, this is the business for you. For full details, contact: paul@gsebusinessconsultants.com.au Please let them know you saw the article in ASBMAG. Check out the website: www.soulsurf.com.au Price: $75,000 plus SAV Approx. Stock Value: $39,000 to $43,000

10/ Australasian Surf Business Magazine  issue #88

Through this partnership, IKEA and WSL will team up for a project to raise awareness about the climate challenge and inspire action to reduce plastic pollution in the oceans. IKEA and WSL will also collaborate on a jointly-designed, surf-centric range of products, using recovered ocean-bound plastic where possible. “At IKEA we’re excited to start a collaboration with the World Surf League and engage with the surf community on life around water. We’re curious to learn what it takes in areas such as organisation, mobility and humidity when you are constantly on the go. And we both share the ambition and passion around sustainability, so we want to keep the wellbeing of our ocean at the heart of it all,” said James Futcher, Creative Leader at IKEA of Sweden. “We are very excited to collaborate with IKEA and look forward to working together on a product collaboration around surfing that is using ocean-bound plastic,” said WSL CEO Sophie Goldschmidt. “IKEA’s sustainability initiatives really align with our own and we’re both dedicated to protecting the ocean.” IKEA wants to have a positive impact on the ocean, engage in projects to clean plastic pollutants from the ocean and proactively prevent ocean plastic pollution. Therefore, this collaboration also has the ambition to connect to the other ongoing initiatives on ocean-bound plastic and ocean plastic that IKEA is currently working with, to get a holistic approach towards life in and around the oceans. “A lot of people worry about plastic pollution and what it does to our oceans and at IKEA we want to contribute with solutions. In this collaboration, working together with surfers that are in the water every day and have a very direct experience of what plastic does to the ocean, we want to explore how we can contribute in a positive way,” said Futcher.

association news WSL & ISA REACH LANDMARK ANTI-DOPING AGREEMENT The (ISA) and the (WSL) have heralded a landmark agreement that will see both parties adopt a comprehensive anti-doping program ensuring athletes are eligible for the sport's Olympic debut in 2020. The program will be run in accordance with the World Anti-Doping Agency (WADA) Code

and the ISA's Anti-doping Rules and will be run throughout the WSL Championship Tour (CT) in 2019 and 2020 leading into the Olympics. The agreement is unprecedented and a powerful example of good collaboration between an International Federation and the associated professional league in the long-term Olympic interests of the sport and commitment to clean competition. With the 2019 CT serving as a qualification events for the Olympic Games Tokyo 2020, the WSL has agreed to a restructured anti-doping program ensuring all their CT surfers are compliant with Olympic Charter and WADA Code ahead of Surfing's historic Olympic debut. As a professional, independent body, the WSL is not a formal signatory to the WADA code - a requirement for athletes or events seeking Olympic eligibility. As such, and to ensure compliance for Olympic qualification, WSL has agreed to implement a tailored anti-doping program under the ISA's Anti-doping Rules. All WSL CT surfers voluntarily agreed to the program prior to the start of the 2019 CT and will now be subject to both in and out of competition testing and whereabouts requirements, conducted and managed by the WSL and the International Testing Authority (ITA) in accordance with the WADA Code. The ITA was formed last year by the stakeholders of the Olympic Movement to ensure greater transparency and credibility in global anti-doping efforts. By agreeing to the ISA Anti-doping Rules, the WSL's surfers reinforce their commitment to the sport's Olympic debut, which was achieved after decades of ISA lobbying. The WSL commitment reinforces the important impact that Olympic inclusion is having on the professionalism of the sport, the aspirations of the athletes, and the long-term future of Surfing around the world. "This historical agreement with the WSL and their professional surfers on this critical subject is very important news for our sport and a phenomenal step forward as we continue to prepare for Tokyo 2020. Surfing is a sport of integrity and we are committed to preserving and promoting clean sport. I am proud today to see WSL and ISA work together to adopt such a rigorous approach to clean sport. We are on the cusp of a special era in Surfing's history, and I am excited to be entering this era with robust processes and partners, said ISA President, Fernando Aguerre. WSL CEO, Sophie Goldschmidt, added: "This agreement not only reflects the WSL's continued commitment to clean sport, but also to being a good partner to the ISA and the Olympic Movement. I am proud that our surfers have understood the importance of this matter and willingly stepped up to this obligation. We appreciate this continued collaboration with the ISA on the Olympic qualification process,” said Goldschmidt. “Olympic inclusion has changed our sport for the better and I cannot wait to see the elite athletes of Surfing competing on the greatest stage - it will be an incredible spectacle. "

Programme for the Paris 2024 Olympic Games, after a vote by its membership during the 134th IOC Session in Lausanne. Final ratification will be made by the IOC Executive Board, after the sport makes its much-anticipated landmark debut at the Tokyo 2020 Games. The announcement moves Surfing even closer to long-term Olympic inclusion and also ensured that no further sports can be put forward for inclusion on the sports programme of the Olympic Games Paris 2024. Surfing was first added to the Olympic Sports Programme for Tokyo 2020 at the 129th IOC Session in Rio de Janeiro in 2016. Now, following this news, the ISA is looking ahead to Paris 2024 to create a pathway to permanent inclusion in the Programme in Los Angeles 2028 and beyond. “This is another amazing day for Olympic Surfing, as we move one step closer to Paris 2024 and long-term Olympic inclusion,” said ISA President Fernando Aguerre. “In Tokyo, we have the opportunity to show Surfing’s unique youthful personality and socially-engaged athletes to the world and cement our position within the Movement. Our Olympic Surfing Festival promises to be a truly innovative element to the programme, showcasing our sport’s vibrant culture. I am positive that, together with our partners in Tokyo, we can bring a new dynamic youth appeal and leave a lasting legacy for Japan, the Games and our sport. “France, meanwhile, has an incredibly rich Surfing tradition and has hosted some of the most important events in the ISA calendar. Together with the French Surfing Federation and the Paris 2024 Organisers, I’m certain we can put together an event that inspires the nation and continues to celebrate our sport’s unique value and culture on a global stage,” said Fernando Aguerre. Paris 2024 has announced a public tender process for the selection of the host venue for surfing. The process will be conducted in coordination with the ISA and the French Surfing Federation. It will begin immediately with expressions of interest, and will include a technical evaluation and site visits in the months of July and August, with the aim of announcing the host venue in December 2019.

WSL STEP UP THEIR GAME TO PROTECT THE OCEAN The (WSL) announced a series of sustainability commitments that set a new standard for global professional sports. These commitments – designed to inspire, educate and empower ocean lovers while addressing critical environmental issues – apply to all WSL Championship Tour and Big Wave Tour events and include: 1. Becoming carbon neutral globally by the end of 2019; 2. Eliminating single-serve plastics by the end of 2019; and 3. Leaving each place better than it was found.

ISA WELCOMES APPROVAL OF SURFING FOR PARIS 2024

This effort builds on the WSL’s existing ocean conservation efforts, including WSL PURE, its non-profit arm, which stands for Protecting Understanding and Respecting the Environment. As part of its announcement the WSL is also launching a global marketing campaign and inviting members of the ocean community to make the WSL PURE pledge to #StopTrashingWaves and joined a worldwide paddle out last month in honour of International Surfing Day, founded by the Surfrider Foundation.

The International Surfing Association (ISA) welcomed the decision by the International Olympic Committee (IOC) to approve the inclusion of Surfing on the Sports

“The WSL is incredibly proud to break new ground in sports in the urgent battle against climate change and ocean pollution,” said WSL CEO Sophie Goldschmidt. “We believe

Alongside Fernando and the entire ISA team, we are committed to the Olympic Movement's principles, including clean, competitive sport where genuine athletic ability is at the fore. I want to thank the ISA for their collaboration, and we look forward to an amazing year ahead for Surfing on the road to Tokyo 2020 and beyond," concluded Goldschmidt.


Unnatural Performance. Ramon Navarro Photo: Fred Pompermayer

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INDUSTRY NEWS

it’s our responsibility to be ‘all in’ with our efforts to protect the ocean and beaches amid the devastating climate crisis we all face. We invite everyone who cares about the ocean to join us." Some facts that have propelled the WSL to make these commitments: • Because of increased global temperatures, the ocean has absorbed more than 90 percent of the excess heat in the atmosphere, which causes more frequent and intense storms and dangerously rising sea levels. • Approximately 30 percent of the carbon in the atmosphere is absorbed by the ocean, causing acidification that harms coral reefs and other marine life. • Plastics break down into small microparticles that are ingested by marine life, ultimately entering the food we eat and water we drink. The specifics of the WSL commitments include: Becoming carbon neutral globally by the end of 2019, including at WSL Championship Tour and Big Wave Tour events. The WSL is offsetting its carbon footprint by investing in and supporting projects such as REDD+ (reduce emissions from deforestation and forest degradation) and VCS (Verified Carbon Standard) certified carbon offset projects that have a focus on restoring and protecting natural ecosystems and renewable energy ecosystems and are based in each of the WSL’s regions. In Asia Pacific: The Katingan Mentaya project in Borneo is a REDD+ peat swamp forest that fights deforestation from mining and palm oil plantations. VCS and Triple Gold Certified project recognised for its positive social impacts (34 communities; 45k people) and biodiversity (5 Critically Endangered, 8 Endangered, and 31 Vulnerable species). The WSL will also reduce its carbon footprint by regionalising its operation, limiting non-essential travel and implementing policies to reduce carbon emissions at its offices. The WSL carbon offset program is calculated and curated in partnership with STOKE (Sustainable Tourism & Outdoors Kit for Evaluation), a certification organisation with standards built specifically for surf and mountain tourism operators, destinations, and affiliated events. Eliminating single-serve plastics from WSL Championship Tour and Big Wave Tour events by the end of 2019: The WSL is specifically targeting items related to foodservice like bottled beverages, cutlery, and cups, as these single-serve items are often not recyclable. The WSL already provides clean drinking water stations for fans to refill their bottles and choose compostable materials where possible for food service. Leaving each WSL Championship Tour and Big Wave Tour stop better than it was found: The WSL is reducing its event footprint and developing a financial grant program to commit money to local projects and nonprofits that are working to safeguard our coasts and protect these habitats. As part of the commitment, the WSL is launching a multi-faceted digital and print marketing campaign, titled “Stop Trashing Waves.” Creative features pro surfers Conner Coffin, Filipe Toledo, Carissa Moore, Coco Ho, Tatiana Weston Webb, Paige Alms, Greg Long, Kai Lenny, and Bianca Valenti and will appear across social media and other platforms. “In the sport of surfing and beyond, it’s imperative that we all act immediately,” said Reece Pacheco, WSL SVP Ocean 12/ Australasian Surf Business Magazine  issue #88

Responsibility and Executive Director, WSL PURE. “Looking ahead, we plan to inspire more and more people to join us in reducing and offsetting their emissions through our upcoming carbon calculator and offset platform.”

Once the fog had lifted and the first heats began, there were periods of heavy rain mixed with bright sunshine, a further indicator of the unpredictable conditions surfers are used to but present a challenge to one of the Olympics’ newest sports.

More information at WSLPURE.org.

“We depend on mother nature, we depend on the natural conditions as they present themselves,” International Surfing Association Executive Director Robert Fasulo told reporters on the beach during a rare window of sunshine.

AIRASIA RENEWS PARTNERSHIP AGREEMENT AirAsia announced a new multifaceted deal and commitment to the sport. Head of Branding Rudy Khaw for AirAsia Group said, “The sponsorship renewal builds on a successful first-year partnership with Australia’s surfing bodies. Surfing is at the heart of Australian culture and we’re proud to have formed such a strong connection with the surfing community here.

“We are very confident and part of the reason why we are here in this period is to see how the conditions are running during the format. “I think that, from what we have seen, and we are on schedule, that the conditions are absolutely adequate.”

“By partnering with Surfing Australia and state surfing bodies in New South Wales, Western Australia and Queensland we’re demonstrating our commitment to making low-cost travel a reality not only for our surfers but for all Australians. Combined with our surfboards fly free policy, this makes us the airline of choice for surfers.”

Organizers expected waves to average between 1-1.5 meters during the test event and that this would be acceptable, if not perfect, if replicated next year, Fasulo said.

Surfing Australia CEO Chris Mater said, “We are delighted to continue our partnership with AirAsia.”

environment news

“Together we have delivered some great events and we look forward to seeing what we can do in this next chapter of our relationship. AirAsia will also extend its ‘Surfboards Fly Free’ initiative in 2019, meaning surfers from Australia will be able to travel with their surfboard with no excess luggage cost, to any of the surfing hotspots found in AirAsia’s network.

QUEENSLAND CHAMPIONSHIP CIRCUIT TO MOVE TOWARD GENDER EQUALITY. Surfing Queensland announced they are closing the gap between gender inequality with a step toward equal prize money in this year’s Queensland Championship Circuit (QCC). In summary, there is a base prize money amount of $750 AUD per event, with 25% of their gender-specific entry fees on top. The more entries there are in the division, the more prize money will be awarded. The Open Men’s QCC has long been Surfing Queensland’s premier event series and includes stops at some of the state’s most iconic breaks. Surfing Queensland’s CEO Adam Yates is proud to be closing the gap between gender inequalities in the global sporting industry. “We’re excited to be offering equal prize money in this year’s QCC series,” says Yates. “This is Queensland’s premier event series and we’re excited to once again be offering women the same competitive opportunities as the males,” concluded Yates.

MIXED WEATHER AND WAVES AT TOKYO 2020 SURFING TEST EVENT Tokyo 2020 organizers got a taste of surfing’s unpredictability this week and what might face them next year when the sport makes its Olympics debut July 26-Aug. 2 Heavy fog and small waves on Thursday meant the start of the four-day surfing test event at Shidashita Beach, some 60 kilometres north-west of Tokyo, was delayed for an hour. Organizers also had to contend with the more unexpected challenge of a sea turtle laying her eggs overnight, just 10 meters from the judges’ viewing area.

“This is absolutely contestable conditions if you look and see there are some great waves being ridden,” he added.

PATAGONIA RELEASE ARTIFISHAL & SAVING MARTHA DOCO’S Saving Martha is a short film about fish farms in Australia. Tasmania is regarded as one of our most pristine and wild states. However, in recent years that reputation has been tarnished by the boom of the local salmon farming industry. With environmental regulations struggling to keep pace with the industry’s growth, the marine environments that host the industry have been significantly impacted and, in some cases, have approached collapse. Increased scrutiny and criticism of the industry has forced operators to find new locations, including neighbouring King Island – adjacent to the world-class waves at Martha Lavinia Beach. Saving Martha highlights the plight of the King Island community, while emphasising the negative impact the proposed farms will have on the ecology of the region. Patagonia Founder and Executive Producer, Yvon Chouinard, and Director/Producer Josh “Bones” Murphy made Artifishal an 80 minute feature – the story of fish hatcheries and fish farms from California to Norway. After witnessing the conditions of factory fish farms as well as the genetically inferior, dumbed-down salmon they churn out, the film explores the repercussions of a wrecked net pen and the underwater destruction and disease caused by an open-water fish farm. “Humans have always thought of themselves as superior to nature and it’s got us into a lot of trouble. We think we can control nature; we can’t,” noted Yvon Chouinard, Patagonia founder. “If we value wild salmon, we need to do something now. A life without wild nature and a life without these great, iconic species is an impoverished life. If we lose all wild species, we’re going to lose ourselves.” Artifishal & Saving Martha will screen across Australia throughout July and August. Join Patagonia, locals on King Island and the global community in saying NO to farmed fish and- keep King Island fish farm free here https:// salmonpledge-environmenttasmania.nationbuilder. com

GLOBE PARTNERS WITH THE NATIONAL FOREST FOUNDATION Through partners like the National Forest Foundation, Globe International plants more than triple the number of trees harvested for skateboard production. As one the world’s largest manufacturers of premium skateboards, Globe use a significant amount of wood in their production. In order to offset the timber used to construct skateboards, the goal is to engage in forestry efforts that replace far more what is consumed. Globe have partnered with the National Forest Foundation (NFF) to donate to their tree-planting program. Already doubling Globe’s contribution from last year, in 2019 the company’s donation to the NFF will plant more than three times the amount of trees harvested annually in the making of Globe skateboards. Globe’s skateboard and skate hardware components are manufactured at dedicated partner facility, in Shenzhen, China. This state-of-the-art facility imports Hard Rock Maple logs from North America alongside regionally sourced Maple alternatives such as Cherry, Walnut and Teak. Globe also source other more sustainable materials including bamboo and up-cycled coconut husks to produce various skateboard products. The Globe Regrowth program covers all of skateboard brands including; Globe, Dwindle Distribution (comprising Almost, enjoi, Madness, Blind and Darkstar), Dusters and their OEM business, DSM, offsetting three times the number of trees their factory buys as raw materials.

FIGHT FOR THE BIGHT DISRUPTS EQUINOR AGM IN NORWAY Patagonia surf ambassador Heath Joske and a small Australian delegation led by Peter Owen from the Wilderness Society and aboriginal elder and singer Bunna Lawrie took the Fight for the Bight directly to Equinor’s heartland in Oslo, Norway. Heath and the delegation took the anti-drilling message directly to the Equinor board at their annual AGM. Over 150 people were in attendance at the AGM with a number of groups opposing the proposal to drill in the Great Australian Bight including Greenpeace Norway, the youth Labour Party, the World Wildlife Foundation, Followthis. org and a politician from Norwegian political party Venstre. Heath Joske spoke at the AGM and also personally delivered letters from over 300 concerned Australians to Equinor CEO Eldar Saetre. In his AGM address, Joske referred to the growing opposition to the proposed drilling, citing the open letter signed by Australian surfing world champions. "After the proposals, there was a period where stakeholders could comment. The delegation spoke well and the half-dozen Norwegians who spoke after the Australians were all supporting us in our fight,” said Heath Joske. "The CEO made a general statement at the end that basically said what they have always said, which is that the conditions are similar to the North Sea and that they are confident to drill the well safely, and that NOPSEMA will handle the approval process," concluded Joske. Commenting on the Equinor AGM, Brynn O'Brien from the Australasian Centre for Corporate Responsibility said "I have never seen a board and CEO go to such lengths to avoid answering legitimate questions from shareholders — the format of the AGM was designed to produce this outcome. Perhaps they have no answers. There are no good reasons to continue frontier fossil fuels exploration in a time of climate crisis." Stay up to date by following #fightforthebight


W W W. A S B M AG .C O M

PROFESSIONAL EDITION

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HOW TO BUILD A REVOLUTION – ONE BOARD SHOP AT A TIME BOARD SHOP DAY WILL TAKE PL ACE ON MAY 16, 2020. In this Professional Edition interview, we catch up with @Building_The_Revolution founder Mike Vavak to find out more about this fast-growing movement among independent surf retailers worldwide, and learn about its Australian connection with former Red Herring owner Victor Tilley and O&E’s Brian Cregan.


INDUSTRY NEWS

WA TO GET WORLD'S FIRST INFLATABLE SURF REEF The world's first inflatable surf reef, the Airwave, is about to undergo trials in Western Australia. The Airwave is a 20-metre round, 2-metre high dome which sits on the bottom of the ocean about 50 metres from shore, turning unrideable closeout waves into a surfer's dream Creator Troy Bottegal said it was a lack of waves at his local beach which prompted him to come up with the idea, that if successful it could have a huge impact for surfing communities all over the world. "It started me thinking about the way that waves are made and what was the least amount of area in an artificial surf reef needed to actually change wave characteristics for the better," he said. The Airwave is much smaller than other artificial reefs, using the minimum amount of resistance and impact to reshape the waves. "Normally what happens is swell acts in fairly straight lines, if there's no bottom shape to make it break in a certain spot it basically isn't surfable," said Bottegal. "What the Airwave does is make it break in one spot about fifty metres out, and then once you make it break in one spot it peels left and right to the beach in a way which is conducive to surfing." Filled with a combination of sand, water and air, the Airwave can be easily installed by two divers operating from a barge, in roughly two days. A trial installation will be conducted in Bunbury, Western Australia and will record data including the effects of sand movement to monitor success. Bottegal said he hopes to one day see Airwaves rolled out at beaches around the world and for all surfers from beginners to advanced, reaping the rewards.

finance news SURFSTITCH TIPPED FOR IPO According to reports in The Australian Financial Review (AFR), SurfStitch’s parent company Alceon is eyeing a cash injection and is believed to be eager to package up its companies and find an equity investor. Alceon Group is believed to be looking at more retail acquisitions after outlaying more than $100 million over the past few years to emerge as one of Australia's largest retail investors. Alceon Executive Director, Richard Facioni said that Alceon is also likely to explore an initial public offering for its online businesses EziBuy and SurfStitch. We reported in April last year when SurfStitch announced the completion of a Sale and Purchase Agreement between Alceon Group and SurfStitch Group Administrators. The SurfStitch acquisition was undertaken through Alceon Retail Holdco Pty Ltd, Alceon’s wholly-owned investment vehicle that houses Alceon’s ecommerce retail operations, which also include EziBuy Limited. EziBuy is a New Zealand-based apparel and homewares retailer that was established forty years ago and now ships almost two million orders per year across Australia and New Zealand. The combined group is reported to have total revenue of approximately $225m. Now the Sydney-based company is looking at half a dozen retail acquisitions worth between $5 million and $30 million each in segments including fashion, menswear and youth that it can bolt onto its existing investments – Noni B, Specialty Fashion

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Group's Katies, Millers Autograph, Crossroads and Rivers chains, James Packer's Pretty Girl group and discount variety retailer Cheap as Chips, in addition to EziBuy and SurfStitch. Alceon's retail investments now generate about $1.5 billion of sales from more than 1400 stores and account for about 75 per cent of invested capital. Richard Facioni, executive director of Alceon Group and head of private equity investments is a former engineer who joined Alceon in 2014 after fifteen years in mergers and acquisitions at Macquarie Group. He sees scope to apply this so-far successful formula to recent acquisitions and new investments. Talking to AFR, Mr Facioni said he sees scope to at least double sales at SurfStitch and expects the business to return to profitability this year. Alceon has doubled capacity at SurfStitch's distribution centre in Burleigh Heads and, since changes to the GST regime on July 1, has moved EziBuy's fulfilment from New Zealand to the SurfStitch distribution centre. "We can look at a business and say we can immediately give you an uplift in sales by accessing our customer base and taking costs out through shared services," he said. "All of a sudden it looks quite different in our hands than it does in the vendor's hands – we are seeing those sorts of opportunities at the moment." Mr Facioni told AFR that Alceon is likely to explore an initial public offering for EziBuy and SurfStitch. "Those two businesses will stay together and probably IPO and we'll look for more brands we can bolt onto that group," Mr Facioni said. "There are growth opportunities in both those businesses." SurfStitch began from humble beginnings in a garage on Sydney’s Northern Beaches in 2008. In 2014, it made a spectacular debut on the ASX and less than a year later, the share price had more than doubled, pushing SurfStitch's market value beyond $500 million. Through a series of ill-fated acquisitions, the company entered into voluntary administration in 2017 before it was acquired by Alceon/Ezi Buy in 2018. We’ll have more information on this development next issue.

media news WSL ENDS EXCLUSIVE FACEBOOK LIVE DEAL Last year the World Surf League signed an exclusive two-year digital distribution deal with Facebook in an effort to grow its audience. However, a year later and almost twelve months early, the WSL has ended that deal’s exclusivity and remarkably it has seen its audience grow. In 2019, the number of viewers tuning into the live broadcasts of the WSL’s professional surfing competitions online and on TV has increased by more than 25% compared to last year, according to reports in the mainstream press by WSL CEO Sophie Goldschmidt. That viewership increase appears to be an indication of how the WSL has worked to broaden its content and distribution mix in 2019, including the formation of an in-house studio to produce original programming, in order to broaden its audience.

The WSL has expanded its TV footprint from twenty countries last year to more than 135 countries this year. That expansion includes a deal with Fox Sports in the U.S. to air more than 500 hours of programming, including live contests, on Fox Sports 2 as well as the Fox Sports app. “To have that much coverage from a major network in this market is significant for us. And it very well complements our Facebook deal,” said Goldschmidt. The WSL’s decision to no longer exclusively stream its contests through Facebook Live signals how nascent the social network’s livestreaming technology remains, especially for a sports league with a global audience. Speaking on the Facebook Live experience, WSL CEO Sophie Goldschmidt observed there were complications with the live feed, compounded by language and regional nuances. “That added an extra complexity that they hadn’t had before,” said Goldschmidt. There was also a limitation on the league’s ability to generate revenue from the Facebook Live streams. Facebook pays the WSL to air its events through Facebook Live, and the WSL is also able to sell event sponsorships. But, while Facebook runs ads within some live and on-demand videos and shares the revenue with the media companies and creators, that wasn’t an option for the WSL. Facebook does not allow ads to run within live sports broadcasts, according to a Facebook spokesperson. “We were happy to collectively rework the partnership with World Surf League. Doing so enabled us to serve different audiences with different viewing experiences, including one on Facebook Watch where fans can watch together in a highly interactive and social environment,” said a Facebook spokesperson. However, the WSL hasn’t bailed on Facebook entirely. The pair have worked together to figure out how to enhance the Facebook Live viewing experience, said Goldschmidt. For example, the WSL has begun to use the live polling and live questions features that Facebook introduced in the past year so that viewers can vote on or write out answers to questions posed during a broadcast. “We learned a lot about each other through that partnership, and the situation we’ve now got works really well for everyone,” said Goldschmidt. In addition to broadening the distribution of its broadcasts, the WSL has been broadening the mix of content that it distributes outside of event broadcasts. In February 2019, they launched WSL Studios to produce original programming for people to tune into outside of contests on both its owned-and-operated properties as well as platforms like Facebook and YouTube. “We drive a tremendous amount of scale and usage around the events when we’re on, and when we’re not on, the key for us is: what is the narrative and what is the engagement?” said Erik Logan, president of content, media and WSL Studios. Last month, the WSL debuted one of the first projects from WSL Studios, a daily news show called “WSL Surf Breaks” that recaps the goings-on of the surf world in two-minute-long episodes. The league is uploading episodes twice a day, seven days a week to Facebook, Instagram’s IGTV, Twitter and WSL’s site and mobile apps. It will also produce weekly compilations to distribute through its YouTube and Snapchat Discover channels.


OVERSEAS NEWS

u.s. news PATAGONIA LAWSUIT TARGETS CHINESE KNOCK-OFFS Patagonia (USA) has filed a trademark infringement law-suit against suspected online counterfeiters in China. In a complaint filed with the US District Court for the Northern District of Illinois, Patagonia said the alleged counterfeiters, who were not named, sell unauthorised and unlicensed apparel and activewear bearing Patagonia ®️ trademarks. Patagonia said the defendants are based in China but conduct business throughout the US through the operation of online stores. It said that tactics used by the online store owners make it ‘virtually impossible’ for Patagonia to learn their true identities and the exact inter-working of their counterfeit network. These tactics include registering new online marketplace accounts under new aliases once they receive notice of a lawsuit. Additionally, the alleged counterfeiters also ship products in small quantities via international mail to minimise detection by US Customs and Border Protection. “Patagonia has been and continues to be irreparably damaged through consumer confusion, dilution, and tarnishment of its valuable trademarks” as a result of the online stores, the lawsuit said. Patagonia said that due to the success of its brand, it is frequently targeted by counterfeiters, and has consequently established a world-wide anti-counterfeiting program. Patagonia also said it regularly investigates suspicious websites and online marketplaces. It said the online stores owned by the defendants are just some of the ‘hundreds’ of domain names selling counterfeit Patagonia products. Additionally, it said the online stores run by the unnamed defendants all have ‘virtually identical layouts’, suggesting that the alleged counterfeit products were manufactured by, and come from a common source. Source: WIPR

BOARDRIDERS BOSS ELECTED PRESIDENT OF EUROSIMA EuroSIMA has elected Jean-Louis Rodrigues, General Manager Wholesale EMEA at Boardriders, who took over the role of EUROSIMA President from Wilco Prins, former General Manager of Rip Curl Europe, who has held the position since 2016. After two terms as President of EuroSIMA, Wilco Prins decided against running for a third term. Prins will remain involved by keeping a position on the EUROSIMA Board of Directors as an Honorary Member. After successive years of Rip Curl Presidency at the top of EuroSIMA from François Payot, Frédéric Basse and Wilco Prins, Boardriders Wholesale General Manager, Jean- Louis Rodrigues will lead the action sports manufacturers’ association. Jean-Louis Rodrigues has served on the EuroSIMA Board for seven years, four as Vice-president. The new EUROSIMA President said he wants to be surrounded by a Board of Directors and Board of Administrators that would be representative of action sports in Europe. This includes key players in our industry (Boardriders, Volcom, Roxy, Rip Curl) but also representatives of small to mid-size companies. All fields (manufacturers, retailers, service providers) and riding sports are represented (surfing, SUP, bodyboarding, wakeboarding).

Finally, business managers of various nationalities were invited to join the Board, thus allowing the association to ensure its international approach. EUROSIMA is present in seven European countries (France, Spain, Portugal, the UK, Germany, Switzerland, the Netherlands) but 89% of its members are based in France. By having an international Board, Jean-Louis Rodrigues wants to “bring back certain key international players of the industry such as Vans, O’Neill, Hurley or Oakley into the association and our projects” as well as “to ensure regular communication with our big-sister association, SIMA, in the United-States”. “The 2024 Olympics are key for our industry, our territory and for me with the WESURF2024 Application. I will work hard towards defending our “Biarritz-Hossegor” territorial application based on the fact that in the Basque Country and Landes, we have the best waves on our beaches, a historical expertise in organising competitions and have been working closely and operationally with territorial institutions for a long time,” said Jean-Louis Rodrigues. “As the birthplace of the European surfing industry, our territory must absolutely host this Olympic surfing event. Putting our brands and our athletes to work for that objective will help us reach our goal.”

ACTIONWATCH U.S. SALES +7% YOY IN MAY We suspect that the +15% growth in April was likely influenced by low 2018 comps, better weather and a more favourable Easter holiday calendar. In contrast, the May ’19 growth came against tougher 2018 comps, despite colder weather and a similar holiday calendar. The strong April and May results raised the YTD May 2019 performance to +5% growth compared to the same time period last year. The male segment grew +8% while the female segment was flat. Almost all geographic regions were strong, with the Northeast (+31%), the Midwest (+25%), and the South (+16%) leading the way, while the Southwest trailed a bit with +4% and the Northwest declined by -13%. Two of the broad categories were up by double-digits, namely Footwear (+15%) and Hardgoods (+11%), while Apparel grew +7% and Accessories grew +6%. Once again Wetsuits was the only broad category that declined, this time by a concerning -26%. Almost all of the categories enjoyed growth in the male segment, including Swimwear (+55%) Fleece/Hoodies (+36%), L/S T-Shirts (+23%), Pants (+20%), Boardshorts (+10%), Shorts (+4%), Wovens (+3%), Jackets (+2%) and S/S T-Shirts (+1%). Even Denim (+18%) and Sweaters (+71%) increased while only Polo Shirts, Fleece Pants and Tanks declined. In what appears to be a new trend, the Men's shoe segment showed continued robust growth including Sandals (+10%) and Sport Shoes (+54%), while only Casual Shoes declined. On a side note, based on client feedback we’ve combined casual and sport sandals into a combined sandals category. In Men's Accessories the biggest bright spots were Sport Watches (+123%), Belts/Buckles (+35%), Backpacks (+26%), Underwear (+20%), Wallets (+16%), Socks (+13%) and Hats (+6%). Men's Wetsuits (-27%) as a whole struggled again, with only Rash Guards (+13%) performing well. Almost all Apparel categories ¬grew again in the women's segment, including Fleece Pants (+49%), Jackets (+19%), Pants (+28%), Denim (+14%), Fleece/Hoodies (+29%), Shorts (+10%), S/S T-Shirts (+2%), L/S T-Shirts (+37%), Boardshorts (+22%), Swimwear (+9%) and Tanks (+5%). Only Sweaters, Dresses and Skirts declined.

The Women's Accessories segment slowed down to a -5% decline, but there are some bright spots led by Jewelry (+94%), Tote Bags (+80%), Sport Watches (+396%), Socks (+16%) and Underwear (+21%). The female wetsuit categories continued to struggle except for Spring Wetsuits (+9%), Wetsuit Jackets (+14%) and Rash Guards (+13%). The female Footwear category also lost momentum and declined overall despite growth in Sandals (+6%) and Sport Shoes (+42%). Overall the Hardgoods categories grew by double-digits (+11%) with many bright spots and only a few declining categories. Bright spots include Short Boards (+47%), Softboards (+45%), Traction Pads (+38%), Long Boards (+18%), Fins (+16%), and Surfboard Leashes (+8%). Mid-sized Boards, which we just started breaking out and consists of boards between 7 and 9 feet in length, grew by +145%. Skimboard and Bodyboard hardgoods grew as well at rates of +47% and +32%, respectively. However, what is truly remarkable is the continued momentum in Skate Hardgoods, which grew by +32% compared to last May and is up +14% YTD 2019. In May Skate Hardgoods is led by Short Completes (+48%), Trucks (+36%), Long Completes (+31%), Wheels (+31%), Grip Tape (+29%), Short Decks (+27%) and Motorized Skateboards, which we are starting to see in an increased number of doors on our panel. Overall average unit sales increased by +9% thanks to higher turn rates, which increased by one point from 20% to 21%. Average prices were down almost 2% and average margins were flat compared to last May, which resulted in +7% Average $ sales growth. Stores increased their inventory positions by an average of 3% per door at the end of May so assuming the weather remains favourable and the consumer demand continues to remain strong we will finish the second quarter with the highest quarterly growth that we have seen in many years. Let me close with a friendly reminder that we partnered with Exchange Collective to better reflect on-line and endless aisle sales in the core channel. Sales via their platform grew close to 300% Jan-May 2019 compared to the Jan-May period of 2018. If you haven't already, check out our latest blog exploring the reasons for the 15% growth in April either via our new website or our social media pages.

SC JOHNSON SIGNS AGREEMENT TO ACQUIRE SUN BUM SC Johnson a leading global manufacturer of household and professional products for cleaning, storage, air care, pest control and shoe care announced that it has acquired category leader Sun Bum, a fast-growing brand that makes quality personal care products including sun protection, hair care and lip care products. The acquisition also includes the Baby Bum brand of sun protection and baby care products. "The Sun Bum brand is a welcome addition to our portfolio of trusted products," said Fisk Johnson, Chairman and CEO of SC Johnson. "It also expands our robust selection of fast-growing, on-trend products like Babyganics, Method, Mrs. Meyer's Clean Day and Caldrea that appeal to consumers and their families." Sun Bum was founded in 2010 by two Aussies, Adam and Teagan Francis, in Cocoa Beach, Florida, USA. The brand launched in February 2016 with a star-studded event on Bondi, including Sun Bum Ambassador Surfer Julian Wilson, VIPs, media and influencers, including MTV’s Krit, former Miss Australia Erin Holland, Big Brother’s Travis Lunardi, wellness blogger Caroline Groth, singer Krystie Steve and beauty editor/style influencer Eleanor Pembleton.

Sun Bum has steadily gained traction in the action sports, specialty retail distribution with the brands easily-identified ape Mascot ‘Sonny’. The Sun Bum team includes World Tour ratings leader Filipe Toledo as well as Malia Manuel, Bede Durbidge, Kyuss and Rasmus King. In 2019, the brand led the Bum Rush Tour up the East Coast, looking for the best local surfing talent with no application, no qualification process or entry fee and awarding the eventual winner $1000 for first place. SC Johnson expects the deal to be finalised subject to U.S. regulatory approval. As a private company, SC Johnson does not disclose details regarding financial or business transactions. ASB reached out to local distributors (and agents), with Frostbland’s Lyndall Cortis, Senior Brand Manager saying that the feedback from Sun Bum USA is that the company has declined to comment and that as far as Frostbland is concerned it is business as usual.

MR TO BE HONOURED AT THE 30TH ANNIVERSARY WATERMAN’S EVENT The Surf Industry Manufacturers Association (SIMA) will honor a trio of breakthrough honorees at the 2019 Waterman’s event this August. Amongst them former four-time world champion and surf icon Mark Richards will receive the Lifetime Achievement Award. Kai Lenny is to receive the Waterman of the Year and Plastic Pollution Coalition co-founder Dianna Cohen the Environmentalist of the Year. They will join an esteemed list of past Waterman’s honorees that include Kelly Slater, Eddie Vedder, Lisa Anderson, Robert F. Kennedy, Jr., Mick Fanning, Wayne Bartholomew, Greg Noll, Jackson Browne, Al Merrick, Bethany Hamilton and many more. Celebrating its thirty years of environmental contribution, Waterman’s will return to the idyllic setting of The Ranch at Laguna Beach in Laguna Beach, Calif. The night serves as a gathering for leading surf industry executives, local business leaders and surf enthusiasts. “MR is such a unique character in the surf world and surfing wouldn’t be the same without him,” said Naude. “He was the first professional surfer to win four world titles. He not only shaped his own boards, but he’s as good a shaper as he is a surfer. And he was unmistakable out in the water, with his height and wounded gull style. There will always only be one MR!” Waterman’s benefits the SIMA Environmental Fund, a 501(c)(3) charitable foundation that awards grants to various environmental groups based on their dedication to preserving and protecting the world’s oceans, beaches and waves. Waterman’s attracts more than 500 people annually and is expected to raise more than $250,000 for fifteen ocean conservation groups this year.

TEMPLES OF STOKE - THE CALIFORNIA SURF SHOPS OPENING In recognition of the singular role surf shops have played in the world of surfing, the Surfing Heritage and Culture Center (www. shacc.org) announced its Summer 2019 exhibit, “Temples of Stoke - The California Surf Shops" on August 9th. SHACC has invited a select group of surf shops to take over the SHACC exhibit space to install their photos, memorabilia, and artefacts that tell the story of each shop and the role it continues to play in defining the ethos and values of each uniquely different beach town along the California coast. 15/


FEATURE ARTICLE / WORDS: JOCK SERONG

Green is the Bottom Line, Not the Top-Dressing Words: Jock Serong

THE SURF INDUSTRY MAY HAVE QUIETLY CROSSED A HISTORIC LINE ON SUSTAINABILITY, FROM MERE APPEARANCES TO PROVEN PROFIT GENERATOR.

Let’s start with an acronym you mightn’t have heard. ‘LOHAS’ stands for Lifestyles of Health and Sustainability – it applies to both consumers and also the market in which they’re active. New economy market researcher Mobium Group has surveyed over 50,000 adult Australians about health and sustainability over the past fifteen years, arranging consumers into four groups: Leaders, Leaning, Learners and Laggards. It’s an approach that traces back to American researcher Paul Ray, who coined the term “cultural creatives” to describe the people who drove a new and more conscious form of consumption. Mobium’s “leaders” are consumers who are committed to buying sustainable products, are interested in the brand story and will pay extra for genuine sustainability. Since 2007, that sector of the market has grown from 8% of Australian consumers, to 16%. Back in 2007, the LOHAS sector of the market (that is, products like organic foods, solar energy and recycled paper) was valued at $12 billion – by 2020 it is projected to nearly triple, at $35 billion. A ground-breaking new report, commissioned by Patagonia from Mobium, looks at the growth of the LOHAS economy, and in particular how it is interacting with surf. The results might surprise you. At its very simplest, this is a story about the relationship between what people want, and what they believe. Patagonia commissioned this research from Mobium, but they, and the wider surf industry, aren’t the only ones wanting to know more about sustainability-driven consumer behaviour. Mobium’s Andy Baker was recently hired by one of the big banks to provide insights into consumer behaviour in the wake of the Financial Services Royal Commission. For Patagonia, Mobium took the algorithm they’d devised out of their study of 50,000 consumers, and used it on a specific cohort of 1,000 people who’d bought a surf or surf apparel product in the past twelve months. This ‘deep dive’, driven by Patagonia, is believed to be an industry first. “For the past couple of years, we’ve been questioning Patagonia’s point of difference in the market,” says the company’s Australia/NZ head, Dane

16/ Australasian Surf Business Magazine  issue #88

O’Shanassy. “We’re developing a market report based on the findings to share with surf retailers. We’re saying to them ‘This might be the biggest market you’ve never heard of.’” So what did the researchers find out? Nearly all of the respondents (around nine in ten) wanted companies to act on sustainability, and three quarters of them stated that they were willing to change brands to support action. But they wanted clearer information about products, and there’s a background trend that people don’t trust companies to tell them the truth where green claims are being advanced. Australians spend $1.2 billion dollars on surf apparel annually. More than half of the people spending the money say they’d switch brands if they saw evidence of sustainability. That means there’s over $600 million up for grabs out there for companies with a convincing story to tell. What’s more, 60% of survey respondents say they believe sustainability will be a more important factor in buying decisions in the future. And consider this: we said in our intro that 16% of buyers in Australia are LOHAS “leaders”, the people who shape the market. But in surfing, that figure jumps to 26%. We can all speculate about why that might be: is it that we’re closer to the pointy end of environmental damage when we step into the ocean, as compared to our landlubber cousins? 76% of surfers in the survey have donated to an environmental cause. Two-thirds of surfer respondents would be willing to pay 25% more for sustainable products. Nearly half have participated in a demonstration. These are active, critical, principled consumers. To obtain a clear cross-section of the thinking among surf brands operating in the Australian market, we put the same set of questions to each of them, around sustainability and marketing. Here’s the results:


How does the average Australian view surf brands in terms of sustainability? Sustainability discussions in the surf industry have gone from fringe to the mainstream in relatively few years. There’s an interesting tendency in the research to talk about “social” and “environmental” changes in the same breath, as though one leads naturally to the other. But do they? If a company is good on recycling, are they necessarily also good on child labour, or the gender pay gap? Rip Curl was revealed in 2016 to have had garments made under forced labour conditions in North Korea: without their knowledge, their Chinese producer had outsourced the work. It’s easy for a global, de-centralised manufacturing business to lose control of supply chain, whether from a social or environmental perspective. Andy Baker says “Companies who’ve gone on the journey environmentally are more likely to have looked closely at social issues. And it’s the same for consumers: once they start looking at purchasing decisions through this lens, the whole spectrum (of ethical decisions) then becomes relevant.” But interestingly, those consumers are not looking for a halo: “They don’t need you to nail all of them, but they do need you to articulate which of them are central to your company.” Vissla’s John Mossop believes surf brands “generally have decent credibility (on) sustainability…but whether their work cuts through to the consumer is debatable. But I think surfers should feel reasonably proud of the good work being done by brands. There’s a long way to go but surf brands started the sustainability journey a long time ago.” Helen Sharp, Ethical Sourcing and Compliance Manager at Rip Curl, talks of consumers wanting more information. “We know the consumer is becoming more aware of what options are available to them, and are looking to the brands to be both transparent and responsible. Consumers want to make informed choices.”

appreciation of the changes needed: firstly, there is insufficient understanding of the urgency to act, and secondly when it comes to surfboards specifically, despite all the romance around riding waves, for many surfers, surfboards are still considered sporting goods equipment. With that in mind, IMHO, the perception of PU/PE superiority has slowed down the transition to less toxic materials.” So we’re environmentally conscious, but we’re gear snobs. What’s more, we’re driven by affordability: “In regards supplychain transparency and alternative materials,” says Price, “these initiatives inevitably add cost, and the consumer’s willingness to pay more for less toxic surfboards is limited. So manufacturers end up eating margin if they want to match, or just slightly exceed existing RRP’s. The surfboard business isn’t the most profitable at the best of times, so this is an obstacle that needs to be recognised.” John Mossop makes an interesting connection to the debate over surfers vs non-surfers leading surf brands: “Surfers generally have a green bent as our passion is exercised in a natural environment. We instinctively want to protect that environment so where you have surfers driving brands, then it’s likely those brands are working on environmentally-better outcomes.” The credibility of surfer-as-figurehead doesn’t get much higher than Outerknown’s Kelly Slater. Simon Krite agrees that surfers have “a real affinity with brands that are sustainable.” He asserts that Outerknown’s strong surf heritage “was born from Kelly’s vision to genuinely try and change the way we make our clothes.” Are we seeing a real change of direction, or more greenwash? There’s nothing that makes a manufacturer bristle like being accused of greenwashing. Each of the brands we spoke to (and no doubt many we didn’t speak to) are ready and able to point to genuine efforts they’re making – beyond mere marketing claims – to examine and improve their environmental practices.

Outerknown’s Simon Krite also sees a trend towards more careful and critical consumer behaviour. “We’re noticing Australians are becoming more conscious about their purchasing habits with regards to sustainability.” For a brand that wears its environmental credentials very publicly, he’s proud to say “Our sales have been on a steady incline and with the launch of our ladies collection we are seeing large growth.”

For Simon MacGregor, the Consumer Activation Manager for Quiksilver/Boardriders, there’s pride in having received a trophy from Repreve for recycling 100 million bottles into products. In 2020, 100% of Quiksilver’s boardshorts and 65% of their snow gear will be made from recycled plastic bottles. He says eco-friendly materials and manufacturing processes like Econyl and Spindye will grow in prominence.

Do surfers, specifically, view surf brands differently to the wider public?

Globe have partnered with the National Forest Foundation in the US, in an initiative that aims to plant three times as many trees as they use for timber in skate deck production. Globe also source other sustainable materials including bamboo and up-cycled coconut husks to produce various skateboard products. The NFF is an American not-for-profit that launched an ambitious campaign to plant 50 million trees across public National Forests between 2018 and 2023.

The Mobium LOHAS research tells us that surfers are more likely to be ‘leaders’ when making buying decisions than the wider public are. Do the brands see this in their market? Mark Price, CEO of Firewire, thinks they do, but he adds a note of caution. “There are a couple of stumbling blocks to a deeper

“I THINK SURFERS SHOULD FEEL REASONABLY PROUD OF THE GOOD WORK BEING DONE BY BRANDS. THERE’S A LONG WAY TO GO BUT SURF BRANDS STARTED THE SUSTAINABILITY JOURNEY A LONG TIME AGO.” – John Mossop, Vissla

17/


FEATURE ARTICLE /

Firewire’s Mark Price sets a high standard for claims of ‘sustainable’ production: “In the strictest interpretation, a sustainably-produced product is one that uses zero virgin raw material inputs and creates zero landfill waste by up-cycling or recycling any leftover materials. And the energy inputs are renewable as well. ‘Cradle-to-cradle’, as it’s often referred to, is an incredibly high bar, and one that few if any products achieve.” For that reason, Firewire’s boards are touted as ‘green-ER’, not ‘green’, and ‘less toxic’ as opposed to ‘sustainable’. Firewire have reduced waste-per-board-built by 95% over the past two years, “but that doesn’t mean our boards are sustainably produced. Any step towards reducing CO2 emissions, landfill waste, virgin raw material use etc, is a step in the right direction, but the wording does matter.” Be suspicious “if a business announces overnight change,” cautions Vissla’s John Mossop. “But equally, we can’t be sceptical of every initiative. Change is evolutionary and incremental.” Mossop sees value in brands teaming with others who are developing more sustainable solutions: “they have the science and the brand has the consumer.” Andy Baker can remember “years ago” when Naish were delivering SUP boards in a ‘keeper’ boardbag instead of plastic packaging. “We’ve been looking at this market for fifteen years,” he says, “and you’d have to be brave to bet against this change. But in every market, there are players who are just bolting on sustainability, as opposed to building it in. Do you want to be a Prius or a Tesla?” It’s an apt analogy: Toyota added the Prius to a range that includes monsters like the Landcruiser 200, but Tesla engineered an electric car as the centre of their enterprise, and their giant market capitalisation reflects the success of that strategy.

Vissla and Outerknown seem to be placing sustainability more clearly within their core value proposition. This can lead to a process of the majors buying up the new brands, as for Amazon buying out the organic supermarket chain Whole Foods Market. Patagonia have been building these practices into their core for decades and are clear leaders.” You’ll say ‘he would say that - Patagonia paid for his research.’ But it’s a universally-held view. Firewire’s Mark Price says “Patagonia is obviously the gold standard”, a view echoed by Vissla’s John Mossop: “Patagonia has built its brand on environmental stewardship.” Both Price and Mossop also see successes elsewhere, including Volcom’s Veecologic program, Firewire and Vissla. Simon Krite looks outside the industry for influences, at global movements like Bluesign, GOTTS and fair labour groups that promote transparency in supply chain. “We also lobby and work with governments to promote their understanding.” Internally, Outerknown “follows every piece of every garment through its life-cycle and audits the trail so we can comfortably add our name and confidently demonstrate transparency and sustainability.” There are, of course, a cohort of brands who are driving in the opposite direction - the ones who openly market on a petroleum and sugar platform. We won’t name them: you can imagine the examples. They cater to a consumer out there who can’t stand to be lectured to, and will actively buy against the tide. But as Andy Baker says, those brands are no longer the mainstream. In fact, “they’ve picked their niche, but they’re betting against the mainstream trend.” What more can be done?

Rip Curl’s Helen Sharp makes a similar distinction: “We take our social and environmental responsibilities seriously, and don’t believe they’re a marketing tool. For the past few years we have had an increased focus within the business to become more socially and environmentally responsible across our global Rip Curl Group, and we do this because it is the right thing – not for any marketing reasons.

Plenty, according to Andy Baker. “If you start from the position that sustainability is the biggest innovation opportunity available right now, then everything can change, from front office through to manufacturing, to distribution.” He asks: “What are the opportunities your business is being exposed to, and what matters to your consumers? The common ground between those two things is the sweet spot.”

But there are undeniable pressures – financial and marketing ones – to dabble in a greenwash. As Simon Krite tells us, “A lot of the bigger brands are caught in a pricing cycle that unfortunately doesn’t allow for genuine sustainable practices. We’re seeing a movement towards this from many brands. It’s a difficult road to travel.”

It’s clear from the answers that this question very quickly turns into another: ‘Who is responsible for pushing change?’

Which brands are driving it? Andy Baker stands outside the industry bubble, so it’s worth starting with his view on this question. “The major brands still appear to be playing at the margin, whereas emerging brands like

It would be great if corporations just did the right thing, says Mark Price. “But that’s not how the system is set up right now. I think we need demand pull, which will come about as consumers come to fully understand the existential threat that climate change represents.” This way, according to Price, the market will pressure companies to clean up their act or risk losing market share. “That will focus the minds of any businesses that don’t feel the need to get on the program.”

“…A SUSTAINABLY-PRODUCED PRODUCT IS ONE THAT USES ZERO VIRGIN RAW MATERIAL INPUTS AND CREATES ZERO LANDFILL WASTE BY UP-CYCLING OR RECYCLING ANY LEFTOVER MATERIALS. AND THE ENERGY INPUTS ARE RENEWABLE AS WELL. ‘CRADLE-TO-CRADLE’, AS IT’S OFTEN REFERRED TO, IS AN INCREDIBLY HIGH BAR, AND ONE THAT FEW IF ANY PRODUCTS ACHIEVE.” – Mark Price, Firewire

18/ Australasian Surf Business Magazine  issue #88


“…IN EVERY MARKET, THERE ARE PLAYERS WHO ARE JUST BOLTING ON SUSTAINABILITY, AS OPPOSED TO BUILDING IT IN. DO YOU WANT TO BE A PRIUS OR A TESLA?” – Andy Baker, Mobium

John Mossop concurs. “Demand is the best driver of change and our youth are pretty demanding.” Interestingly, Mossop differs with Rip Curl’s Helen Sharp about the role of legislation: “Political will to legislate environmental outcomes will also help drive change,” says Mossop, while Sharp cautions “Each brand needs to drive their own internal push. It needs to be something that comes from within – not pressure from any external entity.” The ‘gatekeepers’ of surf culture, people such as publishers, filmmakers and the WSL, do have an important role in changing market behaviour, according to Baker. He points to the Victorian Government’s Social Procurement Framework. It’s a big title for a simple idea: ‘if you want to do business with us, you’ll have to demonstrate certain social and environmental values.’ So for mags, that might read as ‘we won’t take ads that don’t meet our standards’. For contest venues, ‘you’re welcome to sell your merch here so long as you’re carbon neutral’. It’s important to remember that this stuff is not politics, nor ideology. It has real budget outcomes now, as much for a government as for a naming-rights sponsor. Simon Krite sees opportunity in the manufacturing process. “There’s many things that can be done. The first is education, and consumer and businesses understanding of this is vital. Currently it can cost from 20% to 300% more to produce a garment sustainably. The more the general public understands that, and begins to demand their garments are made sustainably, the quicker it will become the norm.” Maybe that educational role is not always about your own product. Boardriders’ Simon MacGregor points to the company’s twenty-year old investment in ‘The Crossing’, a boat circumnavigating the globe doing oceanic research, and its 2010 education campaign around water pollution. “As we look fifty years forward, we’re rethinking the way we approach sustainability with a refined strategy. We’re not perfect, but we are fully committed to a sustainable future.” What’s the market opportunity? Will consumers act to their own disadvantage on price or convenience if they feel they’re supporting change? The consensus here is that if demand factors move in the right direction, consumers won’t have to act to their disadvantage. “At some point in the future,” says Price, “and I don’t know exactly when that inflection point will happen, it will become a strategic imperative to operate with integrity and transparency on Co2 emissions and general environmental stewardship, and it will be driven by consumer demand based on an understanding of the existential nature of the climate change threat.” But he hastens to add that we’re not there yet. “Unfortunately, proactive strategic planning on this issue is in short supply… many of the incentives built into the existing capitalist structure reward short-term performance and in some cases like the public markets, actually punish longer term investments if they drive down short-term profitability. That needs to change.”

John Mossop thinks the market ‘opportunity’ is a stick, not a carrot. “I don’t think any business can afford not to be improving from an environmental or sustainability perspective. So the opportunity, in some respects, is get on board or else.” You might contrast that last line with Helen Sharp’s description of Rip Curl’s position: “All consumers are different and have many reasons why they purchase a certain product. What we need to do is have all the available options and information for them to make those decisions.” Progress, for Outerknown’s Simon Krite, is all about eliminating the need for a disadvantage. “We’re in a period of change, revolving around what consumers want for a cleaner and greener world. Hopefully everybody will have access to sustainable product one day. We’re still priced higher on many items than we would like, but we’re seeing growth, strong repeat business and we’re building a conscious consumer base. Our long-term goal is to make the same quality garments at better pricing. The danger with this, however, is there comes a point where the garment becomes disposable and doesn’t last as long. (It’s) a trap many surf brands have found themselves in.” Let’s return to that earlier idea about the $600 million that’s up for grabs here: 50% of a $1.2 billion market that could turn toward more ethical products. It’s not a given that the turn will occur merely because the product is green. The wetsuit still needs to keep you warm. The bikini still needs to look good. The board still needs to convince its rider that they rip. Andy Baker talks about “a world of near functional parity” – in other words, most products on the market are nearly as good as every other product, because if they weren’t, the market would swiftly sort them out. As Baker says, you want your product to be a hero, a purchase that the buyer recommends to friends because they’re proud of it. But the question is: in what way is it a hero? Price? Performance? Appearance? All of those dimensions are near parity. Sustainability might be that crucial differentiator. The Harvard Business Review recently confirmed that buyers will pay a premium for “virtue”. Translated to surf products, the premium is available not so much for “authentically surf ” as for “authentically sustainable.” Given their central role in the production of the LOHAS report, it seems fair that the last word on this topic should go to Patagonia. “Patagonia has always been focused on doing the right thing,” says Dane O’Shanassy. “We’ve stepped up our efforts, going deeper on recycled materials, Fair Trade-certified makers and keeping gear out of landfill through making it more durable and offering free repairs. We’re doubling down in our efforts to protect wild places like the Great Australian Bight. It feels like people, and surfers in particular, are responding to challenges of our times through their purchasing behaviours.”

19/


ASB MULTI MEDIA METER 2019

Print Media 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 MAY (2019) MAGAZINE COVER DATES. Magazines Tracks Magazine Australia’s Surfing Life Magazine Surfing World 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

MICK FANNING

RIP CURL

20/ Australasian Surf Business Magazine  issue #88

SURFERS Rank

Athlete

Total

1

— MICK FANNING

448.75

2

— JOHN JOHN FLORENCE

226.00

3

— CREED MCTAGGART

139.50

4

— MASON HO

129.00

5

— CRAIG ANDERSON

123.00

6

— MIKEY WRIGHT

112.00

7

STEPH GILMORE

97.50

8

ANDY IRONS (RIP)

97.00

9

JULIAN WILSON

96.00

10

GABRIEL MEDINA

93.25

11

— JOEL PARKINSON

90.00

12

— TAJ BURROW

86.00

13

HARRY BRYANT

70.00

14

RUSSELL BIERKE

67.00

15

MATT WILKINSON

66.00

16

KAI LENNY

63.00

17

KELLY SLATER

61.50

18

TOM CURREN

59.25

19

CONNOR COFFIN

53.50

20

HARRISON ROACH

52.00

21

TYLER WRIGHT

49.25

22

DANE REYNOLDS

48.00

23

CHRIS 'CHIPPA' WILSON

47.00

23

— OWEN WRIGHT

47.00

24

— KANOA IGARASHI

46.00

25

BRYCE YOUNG

44.00

26

— BEN SERRARO

37.00

26

— LEO FIORAVANTI

37.00

26

SOLI BAILEY

37.00

27

HEATH JOSKE

36.00

Rank

Brand

Total

1

— RIP CURL

94.00

2

— BILLABONG

73.00

3

— HURLEY

52.00

4

— DHD SURFBOARDS

48.00

5

— QUIKSILVER

47.00

6

RED BULL

42.00

7

REEF

38.00

7

ROCKSTAR ENERGY DRINK

38.00

8

OCEAN & EARTH

23.00

8

O'NEILL

23.00

9

— DRAGON

9

WORLD SURFARIS

20.00

10

MONSTER ENERGY DRINK

19.00

11

VOLCOM

18.00

12

OAKLEY

17.00

13

PYZEL

15.00

14

CHANNEL ISLAND SURFBOARDS

14.00

15

VANS

13.00

16

GLOBE

12.00

17

PATAGONIA

12.00

18

CREATURES

11.00

18

VISSLA

11.00

19

HAYDENSHAPES

10.00

20

ATOLL ADVENTURES

9.00

20

JEEP

9.00

20

JS INDUSTRIES

9.00

21

PIPING HOT

8.00

21

SLATER DESIGNS

8.00

22

FCS

7.00

22

NIKE

7.00

BRANDS

20.00

Advertising

Editorial


ASB MULTI MEDIA METER 2019

Social Media SURFERS Rank

Athlete

Twitter

Total

1

— GABRIEL MEDINA

9,479,007

2

— KELLY SLATER

5,251,092

3

— MICK FANNING

2,112,849

4

— JOHN JOHN FLORENCE

1,970,942

5

— JULIAN WILSON

1,447,920

6

— FILIPE TOLEDO

1,374,780

7

— STEPH GILMORE

1,250,801

8

— JORDY SMITH

988,015

9

— TAJ BURROW

664,827

10

— OWEN WRIGHT

656,778

11

— TYLER WRIGHT

357,200

12

— MATT WILKINSON

304,083

13

— DANE REYNOLDS

271,126

14

— CRAIG ANDERSON

247,606

15

— MASON HO

223,136

16

— CONNOR COFFIN

199081

17

— KANOA IGARASHI

190319

18

— LEO FIORAVANTI

171702

19

— MIKEY WRIGHT

147,106

20

— CHRIS 'CHIPPA' WILSON

138,722

Facebook

#SOCIAL_MEDIA_METER

Instagram

Using top brands and surfers 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 FEBRUARY. TABLE REPRESENTS THOSE BRANDS ON THE PRINT MEDIA METER ONLY. NOT EVERY BRAND.

BRANDS Rank

Brand

Total

1

— NIKE

127,352,901

2

— GO PRO

28,565,913

3

— VANS

19,882,590

4

— NIKON

15,265,883

5

— QUIKSILVER

9,016,727

6

— HURLEY

6,522,403

7

— OAKLEY

5,302,514

8

— BILLABONG

4,741,790

9

— RIP CURL

2,808,037

10

— NIXON

1,992,753

11

— O’NEILL

1,247,959

12

— SPY OPTIC

769,461

13

— RVCA

670,296

14

— GLOBE

523,772

15

— BRIXTON

359,029

16

— VOLCOM

354,701

17

— VISSLA

332,376

18

— CHANNEL ISLAND SURFBOARDS

326,099

19

— VON ZIPPER

224,393

20

— FIREWIRE

205,142

GABRIEL MEDINA

NIKE

SOCIAL MEDIA COMMENTARY

While perennial Social Media Meter leader Gabriel Medina sits at the top of our list, this table could easily be flipped upside down when ranked by New Followers or Posts and we’d see Julian Wilson on top. Still Gaby reigns supreme if we look at Audience Growth this last 30 days, possibly due to the Oi Rio Pro in June and a huge spike in visibility for the Brazilian superstar. Our Social Media Meter is benchmarked from our Print Media Meter and is by no means complete. On Audience Growth measure we have to give a shout to Bethany Hamilton (5m Followers) whose New Followers grew +9700 during the debut of her new film ‘Unstoppable’ in June and to Kevin Shulze (25.8k Followers) who gained +7000 New Followers after landing a ridiculous backflip at Stab High2.0 last month. Surfer

Twitter

Facebook

Instagram

Total

Audiene

New Followers

Posts

1

GABRIEL MEDINA

349,437

1,413,110

7,716,460

9,479,007

130,700

-2000

3

2

KELLY SLATER

927,848

1,834,179

2,489,065

5,251,092

25,100

-1800

14

3

MICK FANNING

323,266

551,563

1,238,020

2,112,849

8000

-723

20

4

JOHN JOHN FLORENCE

99,335

633,755

1,237,852

1,970,942

8300

51

2

5

JULIAN WILSON

199,432

446,680

801,808

1,447,920

2800

2200

5

21/


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GLOBE PSYCHOTROPICS SS SHIRT Code: GB01914008 Colourway: Washed Black RRP: $69.99 Available: August Description: Peachface poplin, classic fit, yardage printed, softener wash, chest pocket, curved hem.

SALTY CREW TIPPET SHERPA FLEECE Code: 20335070 Colourway: Black RRP: $99.99 Available: February Description: Sherpa lined, screen printed front, back and sleeve, heavy weight fleece 14 oz

PATAGONIA ISTHMUS QUILTED SHIRT JACKET Code: 26900-SIBR Colourway: Sisu Brown RRP: $249.95 Available: March Description: Made with a 100% recycled nylon shell with a DWR (durable water repellant) finish, the men’s Isthmus quilted shirt jacket is certified as bluesign approved and is Fair Trade certified sewn.

THE SHANE GANG SHANE STEDMAN RRP $32 - release October 2019 CREATURES OF LEISURE SUPERLITE LITE 6 Code: LSLL2006BK/ LSLL2006BKCY Colourway: Black, Black/Cyan RRP: $49.95 Available: July Description: Experience SUPERLITE for a no leash feel. The Creatures of Leisure SUPERLITE leash is the lightest, most comfortable leash in the world specifically developed with custom materials. The SUPERLITE leash fuses reliable Creatures of Leisure components with the latest technical innovation and materials. This is Comfort, This is Trust, This is Lite.

O’NEILL DUNES SLACKER Code: 5411812 Colourway: Dusty Sand RRP: $49.99 Available: August Description: The Dunes Slacker, for when you gotta get up, but you just don't want to. 100% cotton enzyme washed yardage, elastic waist.

RIP CURL KEEP ON SURFIN LONG SLEEVE SWIM SUIT Code: GSIOF9 Colourway: Navy RRP: $129.99 Available: January Description: Designed with a lux microfibre, offering good support and a flatting, cheeky cut, this is the ultimate surf suit. Look forward and lean back with Surf Revival, a celebration of our rich history in surfing.

PATAGONIA SILENT DOWN JACKET Code: 27935-CEP Colourway: Century Pink RRP: $379.95 Available: March Description: This soft, supple down jacket is made for travel and everyday use. Stretchy 70% recycled polyester shell with 100% recycled down (duck and goose down reclaimed from down products).

O’NEILL WOMENS COSMOS JUMPSUIT Code: 5421801 Colourway: Merlot Floral RRP: $109.98 Available: August Description: From beach to bar, in this Cosmos Jumpsuit O'Neill signature print. 100% viscose, strapless wide leg jumpsuit.

The production of this book reflects the very characteristics that people love in Tony “Shane” Stedman: he used a long-time mate (Phil Jarratt) as editor, knew a guy whose wife could set images, threw together all the pictures and stories he could think of. The result, of course, is far better than those DIY tendencies would indicate: there are a wealth of interesting details in here, and not just of the surf variety. Stedman’s strength is his instinct for storytelling, but there’s evidence here of careful research, with photos from everyone from Barrie Sutherland to the National Archives. There’s poems, even an entire song he wrote. We start way back, with the family’s convict beginnings and confectionery business. The atmospherics of a modest farm upbringing his childhood in Crescent Head, and some startling recollections of Aboriginal disadvantage. There’s his engineering training, his musical career. It takes over a hundred pages, and all sorts of fascinating characters and yarns, before we reach Stedman’s surfing life. The Stedman most of us recognise as a surfboard builder emerged in Eastwood, then Brookvale. His early willingness to sell to mixed sports stores marked him a maverick, an image bolstered by some wild advertising courtesy of John Witzig and Albe Falzon. Stedman’s always found talented collaborators: Terry Fitz, Simon Anderson, Dick Van Straalen, Randy Rarick, Luke Egan and Jon Laurenson graced his business in subsequent years. From there, it was a career in overdrive: Northern beaches surf reporting on 2SM, the complex evolution of Ugh boots (note the spelling). A brief career as a restaurateur, the storied headland home at Mona Vale. Wave skis, Luke’s career, Electric sunglasses… it’s an exhausting inventory. Stedman’s a showman: optimistic and flashy but with a heartwarming affection for family, and family history: he keeps photos and memorabilia (including his own Christening spoon and a silver tray.) Surfers are often myopic about the role of surfing in their lives, as though nothing else goes on. Surfing biographies reflect this. It’s heresy, I know, but there’s more to life, and often the land-based stuff tells you volumes about the inner life. Stedman has done a fine job describing the entirety. Link https://shane-surfboards.ecwid. com/The-Shane-Gang-p141747331

25/


BUYERS’ GUIDE

AUTUMN DENIM & PANTS

PATAGONIA FITTED CORDUROY PANTS – 32” Code: 55055-SKA Colourway: Sage Khaki RRP: $129.95 Available: March

RIP CURL SALTWATER CULTURE RIPPLE STRAIGHT PANT Code: CPAAK9 Colourway: Washed black RRP: $99.99 Available: January

GLOBE GOODSTOCK JEAN- SLIM FIT Code: GB01236003 Colourway: Black RRP: $69.99 Available: February

BILLABONG LARRY CHECK PANT Code: 9507302 Colourway: Black RRP: $89.99 Available: March

QUIKSILVER OG SUIT PANT Code: EQNYNP03183 Colourway: Medium Grey Heather RRP: $89.99 Available: March

PATAGONIA STRAIGHT FIT CORDS – SHORT Code: 55920-MKMO Colourway: Mojave Khaki RRP: $129.95 Available: March

LSKD TORMENTED DENIM PANT Code: L107C1003 Colourway: Black RRP: $109.99 Available: January

O’NEILL WOMENS STYLE: MOSS PANT Code: FA8409012 Colourway: Navy Geo RRP: $79.99 Available: February

VOLCOM MITER II CARGO PANT Code: A1111906 Colourway: Army Green Combo RRP: $90.00 Available: March

QUIKSILVER FLARE CORD PANT Code: EQWNP03012 Colourway: Sargasso Sea RRP: $89.99 Available: February

RES DENIM REVENGE STRAIGHT Code: RD-WPN20379 Colourway: Washed Black RRP: $119.95 Available: March

SISSTR STAR GAZER PANT Code: G308NSTA Colourway: DTG RRP: $89.99 Available: March

RIP CURL BOARDWALK PANT Code: GPANC9 Colourway: Yellow RRP: $69.99 Available: January

O’NEILL WOMENS BORONIA PANT Code: 5921802 Colourway: Rust Spot RRP: $89.99 Available: February

VISSLA BORDER CORDUROY Code: M307MBRE Colourway: RRP: $99.99 Available: March

26/ Australasian Surf Business Magazine  issue #88


WORK MEANS MORE

27/


BUYERS’ GUIDE

AUTUMN DENIM & PANTS

SALTY CREW BREAKLINE TECHNICAL PANT Code: 30135008 Colourway: Charcoal RRP: $99.99 Available: February

GLOBE SUB TITLE PANT- STRAIGHT Code: GB01916002 Colourway: Coal RRP: $79.99 Available: March

LSKD TORMENTED DENIM PANT Code: L107C1003 Colourway: Grey Snow RRP: $109.99 Available: February

VOLCOM SOLVER DENIM Code: A1931503 Colourway: True Black Selvedge RRP: $130.00 Available: March

VOLCOM LIBERATOR HIGH RISE Code: B1931900 Colourway: Premium Wash Black RRP: $100.00 Available: March

BILLABONG CHEEKY JEAN Code: 6507432 Colourway: Blue Acid RRP: $99.99 Available: March

PATAGONIA STAND UP CROPPED PANTS – 26” Code: 55335-PGBE Colourway: Pigeon Blue RRP: $119.95 Available: March

BILLABONG WONDERWALL PANT Code: 6507406 Colourway: Off Black RRP: $89.99 Available: April

RIP CURL RINCON WIDE LEG JEAN Code: GDECQ1 Colourway: Blue RRP: $99.99 Available: February

RUSTY EX-BOYFRIEND JEAN RIPPED Code: PAL1151 Colorway: Dust Blue RRP: $99.99 Available: February

O’NEILL WOMENS MASON Code: SU9409001 Colourway: Washed Denim RRP: $89.99 Available: March

QUIKSILVER HIGH WATER Code: EQYDP03423 Colourway: Blue Rip RRP: $119.99 Available: March

OUTERKNOWN STYLE: S.E.A. JEANS (SOCIAL ENVIRONMENTAL ACCOUNTABILITY) Code: 1630001 Colourway: Mirage RRP: $190-$220 Available: September

SISSTR GENERAL WOVEN PANT Code: G303OGEN Colourway: OLV RRP: $69.99 Available: March

OUTERKNOWN & LEVI COLLABORATION LEVI'S® WELLTHREAD™ 511™ SLIM FIT Code: 4511 Colourway: Rinse RRP: $220 Available: September 28/



BUYERS’ GUIDE

AUTUMN SHIRTS & TOPS

LEVI'S OVERSIZED BATWING SHIRT Colourway: Navy RRP: $99.95 Available: February

RIP CURL SALTWATER CULTURE FINE WALE L/S Code: CSHDE9 Colourway: Stone RRP: $99.99 Available: February

PATAGONIA SILENT DOWN SHIRT Code: 27925 – SKA Colourway: Sage Khaki RRP: $329.95 Available: March

ROXY REMIND TO FORGET Code: ERJWT03396 Colourway: MDT8 RRP: $79.99 Available: February

LEVI'S UNBASIC MOCNECK TRUCKER RRP: $159.95 Available: February

BILLABONG SUNDAYS FLORAL Code: 9507202 Colourway: Navy RRP: $69.99 Available: February

VOLCOM GETTING RAD PLAID L/S Code: B0531800 Colourway: Emerald Green RRP: $80.00 Available: February

VOLCOM CADEN PLAID L/S Code: A0512000 Colourway: Bronze RRP: $80.00 Available: March

BILLABONG ROXY SUNDAYS DYE TOP LIKE GOLDTIE WRAP Code: 9507205 Code: ERJWT03359 Colourway: Pink Haze Colourway: Honey Gold RRP: $75.99 RRP: $69.99 Available: February Available: November

BILLABONG ISA ISLAND SHIRT Code: 6507118 Colourway: Pistachio RRP: $69.99 Available: February

RIP CURL KEEP ON SURFIN CROP TEE Code: GTENH9 Colourway: Bone RRP: $49.99 Available: January

O’NEILL GLACIER PEAK Code: HO9104203 Colourway: Clay RRP: $69.99 Available: February

O’NEILL CLINT L/S SHIRT Code: HO9104207 Colourway: Grey RRP: $79.99 Available: February

OUTERKNOWN BBQ SHIRT Code: 1310095 Featured Colourway: Indigo Yerba Buena RRP: $142 Available: September

PATAGONIA LONG-SLEEVED FJORD FLANNEL SHIRT Code: 53947-DEFG Colourway: Defender: Feather Grey RRP: $129.95 Available: March

RES DENIM LAUREN SHIRT Code: RD-WSN20396 Colourway: Blue Lagoon RRP: $109.95 Available: April

OUTERKNOWN BEACHCOMBER S/S SHIRT Code: 1310100 Featured Colourway: Marine RRP: $142.00 Available: September

VOLCOM CAVEN L/S Code: A0541901 Colourway: Army Combo RRP: $90.00 Available: March

VISSLA OUTSIDER L/S CORDUROY SHIRT Code: M508NOUT Colourway: SUR RRP: $99.99 Available: March

30/ Australasian Surf Business Magazine  issue #88


RIP CURL SUNSET GLOW CREW Code: GSWBS8 Colourway: Multico RRP: $99.99 Available: February

QUIKSILVER LUXURY SHIRT Code: EQWWT03030 Colourway: Burnt Olive RRP: $79.99 Available: March

SALTY CREW HORIZON S/S UV WOVEN Code: 21035040 Colourway: Dusty Blue RRP: $79.99 Available: February

PATAGONIA L/S FJORD FLANNEL SHIRT Code: 53947-OBWG Colourway: Wren Gold RRP: $129.95 Available: March

SALTY CREW BUFFER FLANNEL Code: 21435014 Colourway: Dark Khaki RRP: $79.99 Available: February

VISSLA CENTRA COAST L/S FLANNEL Code: M513OCEC Colourway: RRP: $89.99 Available: March

QUIKSILVER TROPICAL FLOW S/S Code: EQYWT03982 Colourway: Snow White Tropical Flow RRP: $69.99 Available: January

GLOBE CLIFTON L/S SHIRT Code: GB01834010 Colourway: Slate RRP: $89.99 Available: March

RES DENIM BIANCA SHIRT Code: RD-WSN20394 Colourway: Daisy Blue RRP: $89.95 Available: February

ROXY LIKE GOLD WRAP TOP Code: ERJWT03359 Colourway: Honey Gold RRP: $69.99 Available: November

O’NEILL MOUNTAINTOP OVERSHIRT Code: FA9104214 Colourway: Khaki RRP: $89.99 Available: February

QUIKSILVER OG CAMP CHECK L/S Code: EQYWT03977 Colourway: Dazzling Blue Mini Check RRP: $89.99 Available: March

SISSTR OFFSHORE S/S WOVEN SHIRT Code: G501OOFF Colourway: DPN RRP: $49.99 Available: February

RES DENIM ENNIS SHIRT Code: RD-MSN20412 Colourway: Deep Blue RRP: $99.95 Available: March

BILLABONG FURNACE ANORAK Code: 9507211 Colourway: Navy RRP: $99.99 Available: March

31/


BUYERS’ GUIDE

WINTER WETSUITS

XCEL RADIANT REBOUND 3/2MM Code: MN32Z2L9 Colourway: Black RRP: $469.99 Available: Now Description (approx. 25 words or less): Xcels newest technologies - Channel Flex and Radiant Rebound. Utilizes a metal lining under the textile that blocks cold temperatures from penetrating the outer layer and reflects heat generated within the wetsuit back towards the body.

SISSTR 7 SEAS 3/2 CHEST ZIP FULL Code: GN10L32C Colourway: GVA RRP: $349.99 Available: March Description: The sister wetsuit to Vissla’s awardwinning 7 Seas.

VISSLA NORTH SEAS FULL CHEST ZIP Code: MW32MNFC Colourway:R AN RRP: $429.99 Available: March Description: Vissla’s premium cold water wetsuit returns with external liquid seams, environmental improvements including a recycled jersey, full body thermal lining and fresh colour blocking.

O’NEILL HYPERFREAK 3/2 Code: 5343 Colourway: B82 Black/ Graphite RRP: $399.99 Available: February Description: Feels like Freedom. Like surfing naked, but better. Claimed by our test pilots to be the most comfortable, flexible wetsuits that they have ever worn.

RIP CURL FLASHBOMB HEAT SEEKER Code: WST8PF Colourway: Black RRP: $699.99 Available: February Description: With heat generating flash lining and Flex Energy technology, the Heat Seeker is our warmest Flashbomb yet.

OCEAN & EARTH LADIES 3/2 CZ STEAMER Code: SLWE11 Colourway: Navy RRP: $339.00 Available: Now Description: More flex= less resistance, 360 ultra stretch neoprene, GBS + fully taped seams, internal plush lining.

VISSLA HIGH SEAS NO ZIP Code: MW32MHSF Colourway:NVH RRP: $369.99 Available: March Description: The new high performance High Seas with super flexible I-foam and heathered body.

ADELIO CHIPPA WILSON SIGNATURE MODEL 3/2 ZIPPERLESS Code: CWFS32 Colourway: Black RRP: $409.95 Available: Oct 19 & Mar 20 Description: A Limited Edition Collaboration with Chippa Wilson and LA based artist Nathan Kostechko. Boasting a minimal aesthetic , zipperless entry, reversed engineered GBS seams, Black on Black prints and a limited designed reaper print from Nathan Ltd 1/150.

PATAGONIA WOMEN’S R1 YULEX FRONT-ZIP FULL SUIT Code: 88483 Colourway: Black RRP: $649.95 Available: March Description: Offering stretch, comfort and warmth for high-performance surfing. Neoprene-free, 85% Yulex® natural rubber/15% synthetic rubber by polymer content. Natural rubber from Forest Stewardship Council® sources. Water temp: 60°–65° F/16°–18° C. Fair Trade Certified™ sewn.

32/ Australasian Surf Business Magazine  issue #88

ADELIO CHIPPA WILSON 4/3 HOODED SIGNATURE SERIES CHEST ZIP Code:CW43HFSP Colourway: Black RRP: $499.95 Available: Oct 19 & March 20 Description: A Limited Edition Collaboration with Chippa Wilson and LA based artist Nathan Kostechko. Boasting a minimal aesthetic , reversed engineered GBS seams, Light weight thermal Black on Black prints and a limited designed reaper print from Nathan. Ltd 1/150.

OCEAN & EARTH DOUBLE BLACK CZ 3/2MM STEAMER Code: SMWE01 Colourway: Black RRP: $339.00 Available: Now Description: More flex= less resistance, 360 ultra stretch neoprene, GBS + fully taped seams, internal plush lining.

QUIKSILVER 3/2 HIGHLINE LIMITED Code: EQYW103075-XCCG Colourway: Dark Ivy RRP: $449.99 Available: Febraury Description: Ultimate eco-flex. Like all of our wetsuits, it’s made in an environmentally certified factory and uses natural limestone and recycled tires instead of petrochemicals, plus uses waterbased glue and a smarter dyeing process. Less CO2 emissions and less water consumption than ever before. Very limited numbers available.

PEAK X-DRY 4/3 GB Code: PS631M Colourway: Black 0090 RRP: $259.99 Available: February

ROXY 3/2 POP SURF Code: ERJW103047-XKKM Colourway: Black/terracotta RRP: $399.99 Available: February Description: Cutting edge materials, a perfect fit, and adorned with unexpected colour - POP Surf is ROXY at its best. Fresh prints intermingle with top-tier tech. Winters most stylish steamer will have you dancing to your own tune. Very limited numbers available.


OCEAN & EARTH ONE ZERO ZIP 4/3 STEAMER Code: SMWE24 Colourway: Navy RRP: $429 Available: Now Description: The easiest Zip Free entry on the market. We have increased the size of the opening using O&E’s innovative 3 fold dry Seal System. Patent Pending.

O’NEILL PSYCHOTECH Code: 5336OA Colourway: GG6 Raven/ Acidwash RRP: $599.99 Available: February Description: Warmest in the water, the Psychotech is the ultimate in wetsuit technology. Evolved from 60 years of coldwater R&D.

O’NEILL HYPERFREAK 3/2 Code: 5438 Colourway: A00 Black /Black RRP: $399.99 Available: February Description: Feels like freedom. Like surfing naked, but better. Claimed by our test pilots to be the most comfortable, flexible wetsuits that they ever worn.

BILLABONG FURNACE REVOLUTION Code: 9707820 Colourway: Military RRP: $349.99 Available: February Description: Style and Performance. Innovative new graphene wrapped yarns trap and retain heat more efficiently. Lighter, stronger, warmer, longer.

O’NEILL BAHIA 3/2 FUZE Code: 95424 Colourway: Kl2 Black / Cactus / Tawny Orange / Gold RRP: $349.99 Available: February Description: Keep the cold out. New series, new designs, new graphics, new colours and now warmer than ever.

RIP CURL E-BOMB ZIP FREE Code: WSM8VE Colourway: Terracotta RRP: $449.99 Available: February Description: The ultimate in high performance wetsuits. 100% E6 super stretch neoprene, E6 ThermoFlex stress point taped. Deliver massive stretch, a smooth streamline fit and protection from cool water.

BILLABONG FURNACE REVOLUTION PRO 302 Code: 9707901 Colourway: Antique Black RRP: $449.99 Available: February Description: Our lightest, most flexible suit ever. Airlite jersey combined with smart foam. Minimal seams & maximum stretch = built for perfromance. All Biilabong suits now feature Furnace Graphine, a superior conductor of heat and 50% lighter than traditional hollow fibers.

RIP CURL SUNSETTERS CHEEKY CUT Code: WSP9KW Colourway: Navy RRP: $219.99 Available: February Description: The Bombshell is back in our Sunsetters style, made with E4 neoprene and E-stitch high stretch seams. Made for surfing, designed with style.

PATAGONIA MEN’S R2 YULEX FRONT-ZIP FULL SUIT Code: 88485 Colourway: Black RRP: $699.95 Available: March Description: Offering stretch, comfort and warmth for high-performance surfing. Neoprene-free, 85% Yulex® natural rubber/15% synthetic rubber by polymer content. Natural rubber from Forest Stewardship Council® sources. Water temp: 55°–60° F/13°–16° C. Fair Trade Certified™ sewn.

BILLABONG 302 WOMENS FURNACE COMP CZ FULL Code: 6707891 Colourway: Black Palms RRP: $499.99 Available: February Description: A cold water performance suit featuring Furnace Graphene Lining which retains heat more efficiently. It’s lighter, stronger, more flexible and warmer for longer.

C-SKINS SOLACE 3/2 BACK ZIP Code: C-SO32WBZ Colourway: Black/Mono Shells RRP: $299.99 Available: March Description: Solace is the benchmark of comfort, quality and style combining a flattering feminine cut, 100% Xtend Stretch neoprene with Thermotech panels, GBS seams, Back-up System and an epic design!

XCEL WOMENS COMP 3/2MM CHEST ZIP Code: WN32ZXC8 Colourway: Black Grapefruit Logo RRP:329.99 Available: Now Description: Engineered fit system fits like a second skin, plush thermo lite chest to knee, fusionx taped stress points, triple glued and blind stitched seams.

PATAGONIA MEN’S R1 YULEX FRONT-ZIP FULL SUIT Code: 88482 Colourway: Black RRP: $649.95 Available: March Description: Offering stretch, comfort and warmth for high-performance surfing. Neoprene-free, 85% Yulex® natural rubber/15% synthetic rubber by polymer content. Natural rubber from Forest Stewardship Council® sources. Water temp: 60°–65° F/16°–18° C. Fair Trade Certified™ sewn.

QUIKSILVER 3/2 HIGHLINE PLUS Code: EQYW103060-KVD0 Colourway: black/gold RRP: $549.99 Available: March Description: Good surfing doesn’t happen when you’re cold. The Highline Plus will keep you warm, light and loose to perform at your best. With state of the art Stretchflight 4 and new ergonomic fit, it’s the warmest and most flexible wetsuit we’ve ever made.

C-SKINS WIRED 4/3 CHEST ZIP Code: C-WI43MCZ Colourway: Black Diamond/ Slate Diamond/Warm Red RRP: $549.99 Available: March Description: New Wired is the ultimate combination of performance and durability. Minimal panels & fewer seams for best fit, Diamond Flex Neoprene, Liquid Skin Torso tech, GBS seams and liquid taping make it the warmest, flexiest and most durable Wired ever!

33/


ActionWatch INSIGHTS ANALYSIS OF WETSUITS, DENIM, SHIRTS AND DRESSES

ActionWatch Insights is only a snapshot of top line results from our ActionWatch Oz Retail panel. For more information please email keith@actionwatch.com

INSIGHT DATA WETSUITS SALES GROWTH

DENIM SALES GROWTH

JAN TO MAY 2019

JAN TO MAY 2019

SHORT JOHN WETSUITS

L/S SPRING WETSUITS

WETSUIT VESTS

MALE -1%

FEMALE -11%

-24%

-16%

-12

-7%

-2%

WETSUIT GLOVES

SPRING WETSUITS -2%

FULL WETSUITS -1%

WETSUITS

NEOPRENE TRUNKS

WETSUIT BOOTIES

S/S FULL WETSUITS

-40

WETSUIT HOODS

-20

WETSUIT JACKETS

0

RASH GUARDS

20

-1%

33%

40

6%

49%

65%

60

9%

80

86%

100

-10

-8

-6

-4

-2

0

Year-over-year sales were consistently down for female-gender denim sales in the first five months of 2019, while mens denim sales declined as well, it was significantly less than the decline female's experienced.

The whole wetsuit category combined increased by 6% compared to those same months last year. Year-over-year sales increases of Wetsuits Hoods, Jackets and Booties contributed to the overall increase.

WETSUITS PRICEPOINT

DENIM PRICEPOINT

JAN TO MAY 2019

JAN TO MAY 2019 1200

Male Female

1000 800 600 400 200

18

18

19

19

19

19

19

18

18

18

18

Jul

Oct

Jan

Apr

Jun

Feb

Dec

Nov

Aug

Mar

May

Sept

18

0

WETSUIT JACKETS

1200

Male

WETSUIT HOODS

Female

S/S FULL WETSUITS

1000

WETSUIT BOOTIES NEOPRENE TRUNKS

800

WETSUITS RASH GUARDS

600

FULL WETSUITS SPRING WETSUITS

400

WETSUIT GLOVES WETSUIT VESTS

200

L/S SPRING WETSUITS SHORT JOHN WETSUITS

Full wetsuits accounted for more than 50% of total wetsuit category sales.

34/ Australasian Surf Business Magazine  issue #88

June 2018 was the peak denim sales month during the 13-month period shown

19

19

19

19

19

ay M

Ap r

M ar

Fe b

n Ja

18

18 c De

8

8

t1

ov N

Oc

t1

18

$35000

Se p

$30000

8

$25000

l1

$20000

Au g

$15000

Ju

$10000

Ju n

$5000

18

0

$0


MEN'S AVERAGE SALES PER STORE

WOMEN'S AVERAGE SALES PER STORE

JAN TO MAY 2019

JAN TO MAY 2018

30,000

8,000

25,000

7,000 6,000

20,000 5,000 15,000

4,000

10,000

3,000 2,000

5,000 1,000 0

The average store on the panel earned almost $26,353 from sales of S/S tees in the first five months of the year making it the largest apparel class in the panel stores.

JAN TO MAY 2019

WOVENS

TANKS/ SLEEVELESS -15.7%

-30

6%

-10 -20

S/S T-SHIRTS

POLO SHIRTS

TANKS/SLEEVELESS

-40 -50 -60

-75%

S/S T-SHIRTS

-13%

-20

-7%

0% OTHER SHIRTS

WOVENS

0

0

-30%

TANKS/SLEEVELESS

85%

60

OTHER SHIRTS

10

-12%

11%

20

DRESSES

100

Sales of women's sleeveless tops declined by 15% in the first part of this year, but S/S tees and Polos each had solid sales growth.

6%

The class of shirts we call "other shirts" grew in sales by 85% in the first part of this year compared to the same period last year. However, the largest male shirt class S/S T-Shirts--experienced a sales decline of 7%.

20

OTHER SHIRTS*

WOMEN'S SHIRTS SALES GROWTH

JAN TO MAY 2019

40

S/S T-SHIRTS

The distribution of average sales between apparel product classes were a lot more even for the female gender category.

MEN'S SHIRTS SALES GROWTH

80

TANKS/ SLEEVELESS

DRESSES

OTHER SHIRTS*

TANKS/ SLEEVELESS

WOVENS

S/S T-SHIRTS

POLO SHIRTS

0

-70

-40

-80

MEN'S SHIRTS PRICEPOINT

DRESSES PRICEPOINT

JAN 2018 TO MAY 2019

JAN 2018 TO MAY 2019 $100+

$50-$60

$90-$100 $40-$50

$80-$90

$30-$40

$60-$70

$70-80

$50-$60 $20-$30

$40-$50 $30-$40

$10-$20

$20-$30 2018

$0-$10 0

2019

5

10

15

20

25

30

2018

$10-$20

2019

$0-$10 35

Percent of Units Sold

0

5

10

15

20

Percent of Units Sold

Short-sleeve t-shirt pricing did not change dramatically so far this year compared to the same time period last year. Price ranges were fairly broad across the $10-$50 segment.

35/


A Life and Death Perspective Inside The Raglan Surf Co Legacy THEY SAY THE PHOENIX RISES FROM THE ASHES, BUT WHAT THEY DON’T ALWAYS TELL YOU IS HOW TOUGH THAT JOURNEY ACTUALLY IS. LUKE HUGHES, MORE THAN MOST, KNOWS WHAT IT MEANS TO START FROM SCRATCH. HE SHARES HIS STORY WITH ASB’S DEREK MORRISON WHILE “SCRATCHING OUT A FEW BLANKS” AT HIS SHAPING BAY IN WHALE BAY, RAGLAN.

36/ Australasian Surf Business Magazine  issue #88

Luke’s whole world shifted beneath him in 2013 when his father, the legendary shaper and Raglan Surf Co founder, Craig Hughes, succumbed to cancer after an eight-year battle. “One year I came back from travelling and I will never forget it,” recalls Luke. “We had been in East Timor and we all shaved our hair completely off. We all walked back through customs and the first sight Mum and Dad had of me was with a completely bald head.” Luke had no idea that his Dad was sick. “That struck pretty hard for Mum and she was quite emotional,” he offers softly. “They then told me that he’d been diagnosed with cancer.” With that news Luke had a decision to make. “The decision was completely my own and was by no means pressured: to take on a more senior position in the business to alleviate the pressure on Dad so he could still shape boards, which he was doing, but so he wouldn’t have to be present for the retail side.” Craig and Liz started Raglan Surf Co in 1992 to accompany the thriving shaping business. It became an icon of not just Raglan, but New Zealand surfing. Luke was born into this environment – virtually “raised in the factory”. “This was when the factory was right out behind the retail store in town,” he adds. “So for me, I grew up surrounded in surf retail, surfboard manufacturing and surfing as a lifestyle with something that was literally right there on our doorstep. It was always around me and I was forever taking it in. When I look back on it now, I realise that I learnt so much in those younger years of my life just through osmosis of being here. I’ll often come across something in business and I’ll know how to do it from a memory I had as a little kid. Kind of like second nature.”


FEATURE ARTICLE / WORDS & PHOTOS: DEREK MORRISON

Luke is no prodigal son. He always had a strong work ethic and curious mind. He was head student, got honorary grades and applied himself all through his schooling. At the same time he was the top surfer in the Raglan Surf Academy. “I wasn’t the kid who would flunk class to go surfing,” he admits. “I spent my time in school getting an education.” He said he got sponsored early, at just 13, because he was Craig’s son. “Yeah, I might have been a good surfer, but I got sponsored because of who I was,” he smiles. “And with that came all the expectations to compete in contests, do photoshoots – but I still knew the fact that I needed to get an education for my future.” Once Luke had finished school he had the choice to pursue his career in surfing or take an option with the business. “That decision was never pressured and, as a result, I went off and did the Pro Junior Series and travelled with Billabong.” But the revelations imparted in that airport arrival hall upon return from his East Timor trip changed Luke’s perspective completely. “Naturally that decision was not a hard one to make,” he recalls. “I didn’t forfeit anything that I had with my surfing. I was still enjoying it and competing, but just not consistently on an international level.” As Luke started to manage the store he found himself tapping into what he’d learnt during his school years.

“ DAD HAD A BIT OF A PLAN. HE ALWAYS HAD A PLAN OR SOMETHING GOING ON – ‘A CUNNING PLAN’ HE’D CALL THEM. A LOT OF THEM BACKFIRED AND WE, AS KIDS, DIDN’T THINK THEY WERE THAT CUNNING,” LUKE LAUGHS. “I started to take responsibility for the retail environment and in my natural way of processing things, problem-solving, incorporating systems and figuring out strategies to make the retail business run more efficiently,” Luke explains. “It kind of worked in my head more naturally because I could relate to everything very easily. I never went to university and I didn’t get a degree. I’ve never had any further education beyond my high school years, but I’ve related to the entire situation because it has literally been my entire life.” Together with Craig, Liz and the family, Luke split the businesses into the Hughes Surfboards and Raglan Surf Co brands. “Dad had a bit of a plan,” smiles Luke, with a shake of his head. “He always had a plan or something going on – ‘a cunning plan’ he’d call them.” “A lot of them backfired and we, as kids, didn’t think they were that cunning,” he laughs. He points to a magazine clipping on the wall of the shaping bay. “You can see there it shows Dad watching this exact environment with a person shaping who is not me. It’s my younger brother, Nat,” reveals Luke. “So, originally Dad kind of had this intention of me taking the reins of the retail business and furthering that. And my younger brother would have an apprenticeship in shaping and the manufacturing craft of the board business.”

“What we didn’t realise was Dad’s condition of cancer and it worsening in the timeline that it did,” Luke shares, fighting back tears at the memory. “It got to a point where his condition was so severe that he himself could no longer shape. For us that was pretty scary – it was such an integral part of what our business was and who we were as people.” Luke evaluated the time and energy his father had put into the shaping business. It had been established for 20 years at that point and he had developed an incredible reputation across more than 40 years of building boards. “There was no option for it not to be a part of the business,” confirms Luke. “My younger brother at that point was still a bit young to take on that responsibility by himself. There’s a six year age gap between me and my brother. I was 23 and very busy with the retail side, but I put my hand up to take on the boards.” Luke said it was frustrating at first – juggling the business with time in the shaping bay. “There were days when Dad would sit at the end there with his walking stick and watch me do it and talk me through it all,” he recalls staring into the corner of the shaping bay immersed in the memory. “Then eventually I got through that stage where it was frustrating and it was hard. I started to get more confidence and naturally the boards I was crafting started to improve.”

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Nat joined Luke in the shaping bay to help out and to take the steps to move the business forward. “Taking on Dad’s legacy, his brand, his name and his reputation wasn’t easy and we had to work hard to not only upkeep that name, but ideally move it forward,” admits Luke. “I feel as though we’re in the process of doing that, which feels pretty cool.” Balancing the workload with Nat is exciting for Luke, but fringed with caution. “Nat loves getting into the shaping bay,” he offers. “It comes naturally for him also and he has a great eye. But he also has to make his own decisions. He has his own life and I don’t want to pressure him at all.”

“It was built in 1880,” offers Luke. “It has been a church and a list of things that would make your mind spin. It actually housed one of the first surf shops back in the day when Miki Dora was frequenting here. It has a very deep history, but most people in modern times would know it as Vinnies Restaurant.” Luke said it was fitting that it was the new home of Raglan Surf Co because as young kids growing up Raglan Surf Co and Vinnies were both icons in Raglan and he’s grown up alongside Colin and Rhonda’s kids (the owners of Vinnies) in Whale Bay. The chance to purchase the building gave the Hughes family an option to get away from “the clutches of someone else”.

“A good friend of mine and of dad’s – our accountant came to me two weeks after dad passed away,” recalls Luke. “He pulled me into his office and said we had to look at a situation that had evolved. He said we‘d known for some time, but we had to find a new location to run Raglan Surf Co from. I don’t regret him doing that, but it was pretty heavy at a time that we were still going through the grieving process.”

“But we had to man up and purchase the property,” reveals Luke, shaking his head at the prospect. “It was a heavy decision to make just two weeks after your father has passed away. We talked about it as a family and there were even discussions as to whether we even kept the retail store running. Truth be known, Dad never wanted a retail store – he hated the surf shop. All he wanted to do was to be in the shaping bay talking to his customers and out surfing with them. He didn’t want to sit in the shop and talk to a sales rep about which T-shirt was the new fashion and how he had to order this many as a minimum. That wasn’t who he was. He couldn’t be fucked with that. He wanted to create stuff and use his gift to allow people to enjoy their surfing experience.”

That decision came in the aftermath of Craig passing away. The Hughes family found themselves asking: “should we continue this? Should we keep it all going?”

Just as Craig and Liz had realised the importance of the retail store in the early ’90s, Luke also came to the conclusion that it was necessary.

“It was an emotional decision, that’s for sure,” considers Luke. “We looked at what we had, what we’d been through and we made the decision.”

“Everything he had done to build that business could have been gone in the space of two weeks if we hadn’t decided to keep it going,” he considers. “That seemed like the easy way out and Dad was never about the easy option. Although it was hard, we decided to continue.

More recently Luke’s focus has been consumed by the retail side with things coming to a head around the building that had housed Raglan Surf Co for around 25 years. They knew the lease might not be renewed, but hadn’t quite got through the process of planning as Craig’s condition worsened.

One of the earliest buildings in Raglan – with an historical title – came up for sale.

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Mum put herself in a hard position – something she had never done before and it scared her – she invested in this commercial property.” In 2017 the tenancy came up and Raglan Surf Co moved into the new premises. “It was the first time we weren’t dictated by someone else,” adds Luke with tears flooding. “We had no landlord watching over us – that had never been a reality to Dad. He had wanted to invest in a property, but he never had the chance.” The family found themselves in a new chapter – grieving a lost father, running the business and renovating a building all at the same time. “Timing-wise it was tough,” he concedes. “Everything came together at the same point. We were like, ‘fuck, are you kidding me?’” Luke credits their navigation of that time to a group of mentors and advisors who gathered around the family to support them through it.

“ THAT’S BASED ON MY FATHER’S MORALS AND PHILOSOPHY. HE WANTED TO MAKE SURFBOARDS SO THAT HE COULD TO SEE HIS CUSTOMERS RIDING THEM AND TO SEE THAT SMILE ON THEIR FACES. IF I CAN OFFER THAT TO PEOPLE THROUGH THE NEW SHOP, THEN I’M SUCCEEDING. IT’S FURTHERING A LEGACY.”


“A lot of them had lived through Dad’s eightyear fight and understood what we’d gone through in losing him,” Luke explains. “They knew deep down that we were good people and they knew that what we were aspiring to create in that new environment was a succession of the business that had already been established. It was going to be a reflection of not just Dad, but our values and who we are as people. So with a lot of late nights, hard work, blood, sweat and tears we got in there as a family and we ground it out.” “I remember the night before we opened, my mum, at age 57, myself and my now partner, we were there until 4am merchandising product and just getting it ready so we could trade the next day.” After all the adversity and hard work, Luke said it was a surreal feeling to finally sit back and look at what they had achieved. “We had done it,” he smiles. “We opened the store the day we planned, we vacated the other store the day we needed to and we did it all exactly the way we had hoped to do it. Now we have a new environment to call home and it is ours.” Luke wasn’t afraid to seek guidance and mentorship as he set the new retail space up. “A lot of advice I have taken is around implementing systems to make it easier and save time and money,” he smiles. “Then I can spend more time doing what I want to be doing. Just like my father, I would love to spend more time making surfboards and interacting with customers around their board designs.” Luke, who has spent 10 years now in the retail store, said he would spend about 60% of his time in retail and just 40% shaping. “My partner says I spend too much time doing both of them,” he admits. “I have a vision for the retail side and I intend to achieve that vision,” Luke asserts. “It will be hard work that will get us there. If I can create a lifestyle where I own and have a retail business that I direct, but I can spend my time shaping boards, then I’ll be happy.” “And surfing, of course,” he laughs. He said some of what he wanted to achieve in the retail space remained a guarded secret, but hinted that adding the coffee bar to the shop front was part of that evolution. “We’ve built a reputation on the service that we offer in the retail environment and we stand by that,” Luke explains. “Times are changing in retail – all retail – but it’s even more dramatic in surf retail. What people are now looking for through a retail portal is different to what they were in the past.” “I’m trying to create a retail environment that has a community around it,” he shares. “We have culture and we have a real place for people and surfers to relate to. Yes, it is a retail environment where people can buy things, but it’s not an environment where you’re obligated to spend your money. You can just come and grab a coffee and just hang out, talk to us and get some insights. If you want to spend your money then that is cool as well.”

Luke said he saw the future success of physical retail stores as being centred around their point of difference. “A successful bricks and mortar store needs to be unique,” he offers. “Our story is unique and the environment we have now is unique. This is a real surfer’s surf shop … okay, that term is cliched, but in our case we are real surfers riding the same boards and using the same gear as our customers. That’s based on my father’s morals and philosophy. He wanted to make surfboards so that he could see his customers riding them and to see that smile on their faces. If I can offer that to people through the new shop, then I’m succeeding. It’s furthering a legacy.” Luke admits he likes a good goal to chase and when you look at his past six years he’s been on a very steep learning curve littered with goals. He’s learnt to shape surfboards, learnt to run the business and successfully delivered the relocation. “The essence of our business will always remain the same: it comes back to who Mum and Dad are and what we can give back to our customers,” Luke confirms. “Surfboards will always be a part of that and the space we are creating and developing will be different to everything that exists in New Zealand. It will be something that gives back to the community and has a positive effect on it.” Luke said, rightly or wrongly, he wore his heart on his sleeve. “I don’t hide anything,” he confesses. “I’ve learnt a lot about myself throughout the journey and I have a weird way of looking at things now.” “We don’t need to go into that and get all hippy on everyone,” he laughs. But I’m curious to know how he manages himself from a place of loss and despair to a place of resilience and opportunity. “It’s about understanding yourself,” Luke tells me. “The biggest thing I can pull up is the grief. We can choose to be positive or negative. We can choose to let things affect us or not. It is all a learning curve and things are going to come at you and they might not always be ideal, but if you can learn from those experiences then you can use them as an advantage.” He tells me a story about a recent trip he took to Indo – a month-long journey with a bunch of good mates and a Mentawai boat trip in the mix. “We’d been planning it for years – it was my reward to myself for getting the shop relocated and going through everything,” he explains. “I had damaged my thumb before the trip so hadn’t done a lot of surfing in the lead up. I was just really looking forward to getting there and relaxing and surfing with friends.” “What do I do?” he asks rhetorically with a roll of his eyes. “Third day on my first wave at HTs I jump off in the whitewash of a closeout, as I have done many thousands of times in my life, and my surfboard smacks me in the side of my head. It perforates my ear drum. Because we are in the Mentawai island chain on a boat it gets heavily infected and I can’t surf for the rest of the trip. I end up in hospital. I’m like, ‘are you kidding me?’ I couldn’t even drink because I was on antibiotics.”

“ WE’VE BUILT A REPUTATION ON THE SERVICE THAT WE OFFER IN THE RETAIL ENVIRONMENT AND WE STAND BY THAT. TIMES ARE CHANGING IN RETAIL – ALL RETAIL – BUT IT’S EVEN MORE DRAMATIC IN SURF RETAIL. WHAT PEOPLE ARE NOW LOOKING FOR THROUGH A RETAIL PORTAL IS DIFFERENT TO WHAT THEY WERE IN THE PAST.”

It’s a heavy situation, but Luke refused to cave into his circumstances. “I found myself doing something completely different, because I couldn’t surf,” he shares. “I’ve always travelled with surfboards. For the first time ever in my life here I was with three and a half weeks in a country where I couldn’t surf and couldn’t party. So, I went on a different journey. I spent a lot of time by myself, did a lot of yoga, which was cool, and visited some awesome surf shops and shapers.” “I didn’t let the injury bum me out and I took as much positive from that unfortunate situation as I could. That’s the way I try to look at things now. Especially with Dad. I wouldn’t have started shaping if Dad hadn’t died. He was so good at it that there was no need for me to shape boards. Now I am in a process where I am learning more and more through shaping and business. But I am taking positives from it rather than getting down when it doesn’t go the way I had hoped. That’s the way life works – it doesn’t always go according to plan, but it is your outlook and how you treat the experience that’s important.” Last year Luke and his partner Karamea brought a wee girl into this world, Peara, which means pearl in Maori. Like all new arrivals she has changed the future for Luke and Karamea. “To have a little human there that wakes up in the middle of the night … I don’t really know how to explain how amazing it is,” Luke shares welling up. “For me to see my partner carry a child and nurture a child all that time and to bring her into the world … of all the things I have experienced in my life that is by far the most powerful thing I have ever been a part of.” “It, like death, puts a lot of things into perspective.”

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FEATURE ARTICLE / WORDS BRIAN WALKER

TALKING SHOP WORDS PETER SHEPPARD THE RETAIL DOCTOR GROUP

How Fit Retailers Overcome a Tough Environment It seems one cannot pick up a retail news article these days without reading about the demise of at least one retail business, and in some instances these are major businesses that have been national or international iconic businesses for decades. This week it’s about the likely collapse of TopShop and TopMan. This business has been a stalwart of the fashion business for more than six decades! So this begs the question. What actions do retailers take in order to survive and prosper in the current retail world? Bear in mind, the tough trading conditions are not just being experienced in Australia, but around the westernised world. Even in USA, which is currently experiencing strong economic growth, stores are closing and shopping centres are not attracting the traffic or sales that they once enjoyed. (A Credit Suisse report recently forecast 20 to 25% of American Malls would close in the next five years). In 2018, 6,400 shopping centre stores closed, with less than half that amount opening, despite some favourable deals being offered by the landlords. This trend is forecast to continue for the foreseeable future.

Some important disciplines to create a growth strategy in the current retail conditions: 1.

4.

Is this a retail apocalypse of Bricks and Mortar stores? Will it happen here? We don’t know the answers to those questions yet. What we do know is that retail is tough here too (April 2019 sales were negative on LY). ‘Retail is in Recession’…NAB. This appears to be true in online sales as well. In more general terms, the Australian economy only grew by 1.8% over the last 12 months. (ABS, 5 June 2019)

5.

Yet some retailers are still growing and showing strong returns. This begs the question: What are they doing and why are they not feeling the pinch? Whilst there is not one ‘silver bullet’ there are many indicators that contribute to their success.

6.

These are two of our retailers getting it right and showing good growth.

7.

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Having a relevant marketing and promotional plan, particularly in social media, with the correct pricing strategy, will be essential to gain attention and drive traffic. It is no longer good enough to just be in the right location, retailers need to drive their own foot traffic to their business.

9.

Providing in-store product information, sometimes with interesting related stories, adds value and appeal. I.e. Where it comes from, what its made of, is it environmentally efficient, what’s its history etc.

Having an appropriate flexible strategy for the fast changing retail customer, and constantly analysing customer messages and trends.

2. Having a discernible and strong point of difference, providing the customer with a tangible benefit. (If the customer does not experience it, it is not a point of difference) 3.

8.

Having a seamless Omni Channel distribution model that allows the customer to purchase at times, methods and places that suit her/him. Having a team of effective people, who demonstrate the right attitude and go the extra mile to satisfy customers, particularly with regards to providing a great experience. (Some of the world’s leading brands such as Sephora and Westfield have Experience Managers, or XM as the role is known, to assist focus on this important differentiator) Being right on top of creating the right stock and services mix, which is curated to the customer’s wants and needs. (Most retail businesses are sitting with a significant percentage of slow stock) The installation of up to date technology and the ability to manage the data is key in this important aspect of successful management. Being ‘connected’ with your regular and high value customers, and treating them as V.I.Ps. Through media and effective database communication retailers will build loyalty and enhance the brand appeal, leading to better sales. Keeping the store visually attractive and fresh. Many stores do not change the windows or interiors with new merchandise often enough. Consumers today need a reason to open their wallets and if the store looks the same as it did last week or month, then they will not even consider your store as new and relevant.

Singularly, they don’t make much of a difference, however together they are the difference between success and failure. We call it being ‘Fit for Business’. How ‘fit’ are you for the challenges ahead? Are you an athlete or a spectator? In most retail business, a 10% variance in sales will make the difference between a profitable store and a non-profitable store. This applies to both big and small businesses and can be tested with any Profit and Loss statement. The above astonishing results in profitability are simply from a 10% variance in sales. By doing the above nine key disciplines in your business well, you will guarantee a 10% increase in sales. The businesses which implement some or all of the above actions and are showing a 10% growth, whilst those that are not, are up to 10% down on last year sales and watching their profits disappear.0 Get Fit for Business!


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FACES IN THE LINEUP

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BEHIND THE SHAPER PREMIERE

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42/ Australasian Surf Business Magazine  issue #88


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