Australian Surf Business Magazine October
2018
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FEATURE ARTICLES: From Losmen to Luxury – The top 20 travel Co’s changing the way we travel / First look at Rip Curl’s kinetic energy wetsuit Buyers’ Guide – Wetsuits / Jackets + Knits / Footwear
#84
H A N A L E I BAY CO L L ECT I O N
AVA I L A B L E N OW TO FILL FOR SUMMER 18 SALES
SURFER LEAH THOMPSON - A PRODUCT OF THE SEARCH
Photo: Andrew Shields
CONTENTS
ISSUE #84 OCTOBER
inside this issue
contents 08 20
Industry News Feature Article FROM LOSMEN TO LUXURY THE TOP 20 TRAVEL CO’S CHANGING THE WAY WE TRAVEL
30
Media Meter
32
Fresh
34
Buyers’ Guide
38
Buyers’ Guide
42
Buyers’ Guide
44
ActionWatch OZ Insights
46
Feature Article
48
Talking Shop
50
Faces in the Lineup
WINTER WETSUITS
JACKETS / KNITS
FOOTWEAR
FIRST LOOK AT RIP CURL’S KINETIC ENERGY WETSUIT
AMAZON DISRUPTION THROUGH THE EYES OF CONSUMERS
Surf Travel 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
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ACCOUNTING & FINANCE Montgomery Carey & Associates www.mcaaccounting.com.au ACTING EDITOR editorial@australiansurf.biz ADVERTISING Keith Curtain 0417 747 855 sales@australiansurf.biz
EDITORIAL PLATFORM Australian Surf Business (ASB) magazine objectively reports on all aspects of the Australasian surf market. ASB is committed to editorial excellence and provides the only one-stop forum for the entire Australasian surf industry. Views expressed in ASB do not necessarily represent the opinions of the editors or publishers. No responsibility is accepted by ASB for the accuracy of advertisements or information within the publication.
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Guest Editor – Phil Jarratt In the broadest sense, surf tourism began about 120 years ago, when adventure writer Jack London’s description of surf lessons at Waikiki set off a wave of Matson liners, bound for the land of beach boys and palm trees and cocktails with umbrellas in them. Then the wars got in the way, although Australia’s Jack “Bluey” Mayes was only one of many merchant sailors who carried a board with them on Pacific voyages. In the Fifties, California surfers made Oahu their own and in the Sixties Peru, France, Spain and Portugal made us aware that good waves were not restricted to dots in the Pacific. But it was my generation of surfers who blew the lid off it in the Seventies, using Bali as a stepping stone into Asian paradises beyond our wildest dreams. I guess that’s why, having been an early adopter of Bali, and having seen the mess we made of that surf colonization, I have been fascinated to watch (and sometimes participate in) the seismic shift of surf
exploration to surf tourism over the past 30 years. And speaking of seismic shifts, in the course of writing the lead article for this edition, I have been revisiting the surf discoveries of my youth, from the seedy beach bars of Canggu to the even seedier beach bars of the Rip Curl company town that used to be Peniche. (I think of it now as Torquay with smokestacks.) And guess what? The earth moves wherever I go, weeks of it in Bali and a 5.2 mother this morning here in Portugal. I see it as prophetic: a warning perhaps, to the entire surf tourism industry to tread lightly, to leave a few places for future generations to discover For all that, however, I see a lot of good emerging with the (perhaps belated) recognition of many of the major players that they have to do more than pay lip service to the principles of sustainability, or lose all that they have created. Phil Jarratt Guest Editor
THE TILT EVO The evolution of the Tilt on the Strobo Evo outsole. Focused on fit, form, and comfort, the Tilt Evo is a new addition to the growing heritage collection. Available now at better shops.
@globebrand | GLOBEBRAND.COM | est. Australia 1994
INDUSTRY NEWS
brand news FCS EXCLUSIVE DISTRIBUTOR FOR FINSOUT Finsout and Surf Hardware International (SHI) have signed an exclusive global distribution agreement to bring the new Finsout® fin removal tool to surfers the world over. The patent-pending design, which enables you to change your FCS II fins with a simple flick of the wrist, was released earlier this year. FCS Brand Ambassador and former WCT competitor Richie Lovett commented, “As someone who likes to change my fin set-up almost every session, this tool now makes that process so much faster”. With SHI having offices in the USA, Europe, Japan and Australia, and distribution in over 60 countries worldwide, Finsout® inventor Kris O’Brien is understandably stoked to have signed an agreement with the largest distributor of surf accessories in the world. “To have access to the distribution resources of such a well-established company means the Finsout® tool will now be available wherever FCS II fins are sold”, O’Brien said. Finsout® will be available through Surf Hardware International stockists worldwide from November, 2018.
MF SOFTBOARDS TEAMS UP WITH SURFGROMS In a major boost to the eighth season of SurfGroms, the program has been given the endorsement of Australian icon, Mick Fanning whose signature Mick Fanning Surf School model will be the official soft board for the upcoming nudie SurfGroms season. Mick is truly an inspiration and his association with SurfGroms will inspire the up and coming generation of kids to get involved. The 2019 Mick Fanning Softboards Surf School Edition has been redesigned from the ground up with input from Mick along with some of the most respected and experienced surfing instructors in Australia. SurfGroms forms the base of Surfing Australia’s development pathway, ensuring more participants continue surfing throughout their lifetime, the partnership with Mick Fanning Softboards will further strengthen this robust, innovative and cutting edge junior development program.
ACCENT GROUP TURNS STORES INTO DISTRIBUTION CENTRES Five years ago, Accent embarked on what is today referred to as digital transformation, developing a strategy that would ensure they stayed relevant to shoppers in the future. Over the same period the business has grown rapidly, finalising a merger between Accent Group and RCG and acquiring Hype DC. Accent now operates more than 445 stores across 10 different retail formats — most notably the Athlete’s Foot, Platypus shoes and Hype DC — in Australia and New Zealand. By thinking of digital and e-commerce as a distinct business unit, traditional retailers are failing to leverage their assets to deliver better services and experiences to their consumers, argues Mark Teperson, Chief Digital Officer, Accent Group. “We wanted to create the digital arm to our business that was an extension of what we were creating in our stores,” Teperson told Which-50. Over the last three years Accent has built out its digital marketing and e-commerce capabilities, and in the last 12 months turned 350 of their stores into distribution centres 8/ Australian Surf Business Magazine issue #84
to better connect the digital and physical shopping journey.
GREG WEBBER WAVE POOL GETS APPROVAL
Accent recently launched “true” click and collect, which made products available in real time at local stores, rather than sending it from a warehouse to the store to be collected by the customer. Creating that real time inventory hook up led to the launch of ship from store, which allowed products to be delivered to customers more quickly. It also means Accent can make its entire inventory available to purchase online – not just the stock sitting in a warehouse.
A full-sized version of the wave generation technology developed by Greg Webber has been long anticipated. Not least of which because for years Webber himself has claimed his tech can produce 500 waves per hour, is fully customizable, and far superior to that of Kelly Slater Wave Co., WaveGarden, et. al. The proof, as it were, would be in the pudding.
“By using our stores as distribution centres, we are going to be able to make product available same day to 70 – 80 per cent of the Australian population. For those services we’ve engaged with several same day courier freight providers that enable us to access all of our markets in metropolitan or capital cities.” Accent also plans to launch endless aisle to give store associates the ability to have products that aren’t in-store when the customer wants them delivered to them free of charge the next day. “We think endless aisle will be another powerful innovation for us that further strengthens the link between how digital and physical really come together to create better experiences,” said Teperson.
AROONA GROUP LAUNCH NUU SURFBOARDS Aroona announced the launch of NUU Surfboards. NUU is collaboration between local artist, shaper, designer Marcie O’Neill and graphic designer and former Aloha rep Alex Dietrich. “The pair wanted to create a no nonsense, clean looking, modern shaped range of boards that employed modern technology and more eco-friendly materials. Looking at the market, there wasn’t too many other options for on trend boards that were epoxy/eps.” said Aroona’s Mitch Ashton Check out https://www.nuusurfboards.com
LIVEHEATS PARTNERS WITH BOOST MOBILE Action sports comp management app LiveHeats has teamed up with Boost Mobile to help more Australian Boardriders Clubs transform their clubs from paper heat draws and judging to a fully digital online experience. Under the partnership, select Australian Boardriders Clubs will receive a connectivity pack, comprised of a powerful hotspot device, and free 4G data on the Telstra network to use LiveHeats at their events. In addition, new clubs joining the LiveHeats platform will have access to 3 months of free data to run LiveHeats at their events. LiveHeats is a web-app that allows surfing contest organisers to run sophisticated competitions with little effort. Globally, there are 120 organisations, and 17,000 organisers, surfers, friends, and family who use the platform every month for online registration and payment, automated heat draws, tracking live scores and surfer dashboards, and automated rankings. To run the system at events, clubs simply need a tablet or phone per judge, and a 4G connection. The team at Boost Mobile is equally excited to be getting involved in the grassroots surfing community. As the official telco partner for WSL in Australia, Boost now can help connect the surfing community from the ground up. The first benefactor was North Avalon Surfriders Association (NASA), one of the largest clubs on Sydney’s Northern Beaches (see video below). To follow local events, live, or to get LiveHeats at your own club, head over to www.liveheats.com.
Last December, though, news broke that a company called Tunnel Vision Holding Pty Ltd intended to bring a wave pool, powered by Webber Wave Pools’ technology, to the Gold Coast. The information came as a result of a development application leaked to the Gold Coast Bulletin. The pool was coming, but legal hurdles and bureaucratic red tape remained. Last month, Tunnel Vision announced official development application approval to construct its wave pool in Logan City, QLD. “Tunnel Vision Wave Park can confirm the approval of the development application to build their first wave park in Australia,” explains the company in a release. “With the ongoing support of invest Logan, the team are stoked to be one step closer to delivering Tunnel Vision Wave Park in Logan City, a great location between Brisbane and the Gold Coast.” The release both explains that construction may begin “immediately” but is also dependent on “the resolution of the Logan City Council and Logan Alma Park Zoo legal case.” In 2015, a plan to develop a zoo in Logan City fizzled after the city council invested half a million dollars in the project. The city sued – a matter that isn’t yet fully resolved. This is the reason Tunnel Vision’s release stops short of throwing out an expected opening date. Still, according to their website Tunnel Vision is already asking interested surfers to reserve their session before the launch. “Tunnel Vision Wave Park is set to be an Australian first, delivering up to 500 waves per hour peeling both left and right,” the site reads. “The flawless 500+ waves can reach in excess of 2 meters in height and will deliver up to a 20-second ride of perfection. All day, every day.” Cost per session also hasn’t been solidified. “We have a few ideas being thrown around on what a single session will cost,” explains the website. “We will be getting feedback from Tunnel Vision members in the near future.”
GSI LAUNCHES DEALER DROP-SHIP PROGRAM After two years of development, Global Surf Industries (GSI) launched a system for retailers to automate their Dealer Drop-Ship program.
within 12 hours to give back to their consumer. There are no freight charges as everything is included in the online price. It’s a beautifully simple program that will allow dealers to maximise sales without having to pick, pack and ship products themselves. More Information: https://www.surfindustries.com
FIREWIRE AFFIRMS ITS B2B MODEL Firewire CEO Mark Price sent an open letter to the company’s global retail partners last month. Firewire’s decision to maintain its business to business (B2B) model was a ‘hot topic’ at the company’s global strategy meeting. Price asserts that the retail landscape has changed dramatically since Firewire launched in 2006. “Surf specialty retail is under assault like never before. The omni-channel marketplace, especially with the likes of B2C Ecomm, vertical company stores and online-only platforms such as Amazon, which we police regularly to make sure no (Firewire) or Slater Designs products are sold on that platform either, have all exponentially increased the challenges faced by surf specialty retail.” said Mark Price, CEO of Firewire. As a result, Firewire has made the decision not to go direct to consumer in its major markets at this time (or for the foreseeable future) preferring instead to maintain their current commitment to Firewire’s retail partners.
NEW AND IMPROVED AWAYCO In the eight months since AwayCo launched its innovative boardless travel and try before you buy platform the company has expanded too 26 locations in seven countries. The company recently launched its new premium membership, Awayco Prime. Awayco’s Premium Service gives customers special perks like comprehensive damage protection, advanced pre-booking and more. The company also announced Mick Fanning had joined the list of ambassadors (alongside Ace Buchan) and allowed its customers to make longer bookings and pay as you go services. It’s also expanded its offer to include skis and snowboard rentals.
DRAGON’S 25 YEAR CELEBRATION Dragon threw a party to celebrate both its new digs and Dragon’s 25 Year Anniversary. Beers by Blackman’s Brewery and some cheeky espresso martinis fuelled the night. In attendance, Dragon team riders, local retailers and reps from around the state and overseas. It was the first official opening since Dragon Alliance has moved its South Pacific operation to a new premise located in the recently established Surf Coast Business Park.
GSI have built a feed from their ERP system that gives dealers access to all of the information required to present their range of surfboards, SUPs, Paddles etc. effortlessly on their own dealer websites. This is done via a CSV or JSON feed this can be automated via a RESTlet if required. They provide everything they have on their website with regards to the products. images, videos, text content, categorisation, dimensions, etc for dealers to use on their own sites. This inventory level is live so with each data call it gives a to the second inventory count. Their dealers will never miss an online sale.
“After significant planning to ensure our brand’s heritage was represented in the new office fit-out, we are super excited about the new space,” said Mark Hudson, Director for Dragon South Pacific.
All boards are sold at the same price GSI have on their own website, GSI ships the board for dealers to the consumer, they send the consumer a packing slip from the dealer, they send dealers tracking information
The new office will also facilitate key account showings, retail training sessions, and both local and industry events. Dragon’s new office is located at Unit 3, 12 Castles Drive in Torquay.
“It rewards our dedicated employees with a dynamic and progressive space, as well as integrating creative zones within the office design. Torquay and the Surf Coast continues to be the perfect fit for Dragon with its proximity to the ocean, active outdoor community and the presence of many of our peer brands.”
INDUSTRY NEWS
OUTSTANDING EMPLOYEES HONOURED AT 2ND ANNUAL RIP CURL GALA
Stephanie Gilmore, six-time World Champion, was stoked on the levelled playing field.
Over 300 Rip Curl employees ditched wetsuits and boardshorts and donned tuxes, suits, party dresses and ball gowns, heading out to The Sands for the 2nd Annual Rip Curl Gala Night. Held for the first time in 2017, the Gala is all about looking back on the Financial Year and celebrating successes around the company, specifically recognising those who stood out in certain categories throughout the year.
“This is incredible, and I am thrilled,” said Gilmore. “The prize money is fantastic, but the message means even more. From the moment current ownership became involved, the situation for the women surfers has been transformed for the better in every way. We have been so appreciative, but this takes it to another level. I hope this serves as a model for other sports, global organizations and society as a whole.”
“This night is all about looking back on the long hours and hard work we’ve all put in throughout the last 12 months, and I think each and every one of you did the company proud,” said Michael Daly, Rip Curl Group CEO
In further support of its commitment to women’s surfing, the WSL also announced three initiatives which will launch in 2019:
Daly kicked off the night with a speech congratulating all staff around Rip Curl, as well as Ozmosis – a recent Rip Curl acquisition. The warehouse crew was especially acknowledged, as they worked tirelessly throughout the summer months moving the large Ozmosis warehouse down to Rip Curl’s head office in Torquay. “This night is all about looking back on the long hours and hard work we’ve all put in throughout the last 12 months, and I think each and every one of you did the company proud,” Daly said. “Enjoy tonight and let’s celebrate a great year, while we gear up for the next.” It was a night to remember honoring a successful year in local business. A huge congratulations to all nominees and especially to the winners of each award. Until next year! The winners in each category were as follows: Customer Service Award – Samantha Frith, Customer Service Creativity and Innovation Award – Angie Vendy, Retail Management Committed Crew Award – Lee Graham, Warehouse and Distribution Community and Environmental Award – Shasta O’Loughlin, Global Purchasing Honesty and Integrity Award – Paul Mayes, Finance Best Newcomer Award – Summer Buckland, Group Sourcing and Development Retail MVP Award – Maia Harrison, Byron Bay Retail Store Unsung Hero Award – Wendy Denholm, Finance Distribution MVP Award – Hassan Azleem, Warehouse and Distribution
association news WSL ANNOUNCES PRIZE MONEY EQUALITY The World Surf League announced that it will award equal prize money to male and female athletes for every WSL – controlled event in the 2019 season and beyond, becoming the first and only US based global sports league, and among the first internationally, to achieve prize money equality. WSL CEO Sophie Goldschmidt said, “This is a huge step forward in our long-planned strategy to elevate women’s surfing and we are thrilled to make this commitment as we reveal our new 2019 schedule. This is the latest in a series of actions the League has undertaken to showcase our female athletes, from competing on the same quality waves as the men, to better locations, and increased investment and support.” 10/ Australian Surf Business Magazine issue #84
• A global marketing campaign to highlight the women’s tour as well as increase event viewership and fan engagement. • A local community engagement program for girls around the world, featuring instructional clinics with WSL athletes at each women’s Championship Tour stop to inspire the next generation to embrace surfing. • A monthly content series about the pioneering women of surfing, celebrating them across WSL channels, starting next week with seven-time World Champion Layne Beachley. Surfing Victoria, the Bass Coast Shire and the Victorian Government also announced they will continue their commitment to gender equality in surfing with the announcement that for the second year running, there will be equal prize money at the Phillip Island Pro QS1000 event in November.
SUPER SALLY FITZGIBBONS WINS GOLD IN JAPAN Team Australia has finished on a high after team captain Sally Fitzgibbons claimed the Gold Medal in the women’s division at the UR ISA World Surfing Games at Long Beach, Tahara. Fitzgibbons defeated Paige Hareb (New Zealand), Bianca Buitendag (South Africa) and Summer Macedo (USA) in a dominant display, posting a massive 18.64 point heat total in small but contestable conditions in the final to secure the women’s individual Gold Medal and a Silver Medal for Team Australia. Fitzgibbon won six of the seven heats she contested over the week-long event in a dominant display of surfing. Aussie Holly Wawn had an extremely strong campaign, falling just one heat short of the final while teammate Phillipa Anderson charged through the repechage rounds to finish strongly in repechage 10 to help secure Team Australia a silver medal behind host nation Japan.
AUSSIE TRIO CLAIM MASTERS CHAMPIONSHIP IN THE AZORES Australians Rob Bain, Layne Beachley and Dave Macaulay won the Azores Airlines World Masters Championship in historic fashion, claiming victory in the Final bouts against Cheyne Horan (AUS), Rochelle Ballard (HAW) and Shane Beschen (HAW) respectively in the Grand Masters, Women’s Masters and Men’s Masters divisions held in good three foot surf at praia de Santa Barbara. Bain and Horan took it to the water first in the men’s Grand Masters Final and while the first half of their matchup was a low-scoring affair, Bain started throwing fireworks on the 15 minute mark. Sitting on the inside peak and selecting perfect little runners on the left, Bain built an incredible 17.10 scoreboard on two excellent waves, displaying radical forehand carves and great flow linking
manoeuvres on long waves. Horan could never climb out of that combination situation and Bain claimed a first-ever World Title in the Grand Masters division. “Cheyne was always going to be a hard competitor and I was a bit nervous I thought if the waves are small it’s going to be a battle,” Bain stated. “I’m glad I picked up some waves and I felt good on them, it was just a matter of picking them. This is really a special moment and a dream come true. It’s taken a lifetime of ups and downs in competitions.” A late entrant into this event, Bain has been the best surfer all week in his division and dominated every heat he entered until claiming the coveted World Title. The Australian celebrated his 56th birthday with an incredible performance. The women’s Masters Final was up next between 7-time World Champion Layne Beachley and a former QS Champion and runner-up in the world Rochelle Ballard. The Hawaiian had the best start with a 6.50 in the opening minutes of their heat but Beachley was quick to find her own little left for a 6.60 to claim back the lead. She quickly backed it up with another 6.33 to strengthen her pole position. Beachley’s experience came into play as she perfectly controlled the rest of the Final and walked away with an eighth World Title, but more importantly wrote another page in surfing’s history books winning the first-ever Women’s Masters title. “It was really tricky conditions, but I had my game plan and I stuck to it and luckily it worked!” Beachley stated. “Whenever I talked to the guys they said they kept moving up and down the beach chasing the waves so that’s what I did and I just trusted Huey would send me the waves and I feel fortunate that he did.” Dave Macaulay and Shane Beschen finally paddled out for the day’s last Final in the men’s Masters division. The Australian had a great start and looked fired up, scouring the line-up to find the gems and continuously improving on his scores to impose a big requirement on his opponent. With a couple of 7s on the board, Macaulay remained out of reach for the Hawaiian and the two-time former World No. 3 claimed his first World Title as the oldest competitor in the master’s division.
2018 WSL JUNIOR & LONGBOARD CHAMPS TO BE CROWNED IN TAIWAN The World Surf League (WSL) announced that both the 2018 World Junior and World Longboard Championships will be held in Taitung County in Taiwan. The Taiwan Open of Surfing, which has previously hosted surfers to QS1,000, QS1,500 and LQS events, will now be the location to crown two World Junior Champions and two World Longboard Champions. This will be the first time in WSL history that World Champions from separate disciplines will be crowned at the same event. Having proven itself as an incredible location for surfing events over the last seven years, Jinzun Harbor in Taitung will act as the event’s primary location. The competition window for the World Longboard Championships will be from November 26 to December 1, 2018. The World Junior Championships will run from December 1 through 9, 2018. “Jinzun Harbour in Taiwan looks like a super high-performance wave, so I’m really excited to see the world’s best Juniors battling it out at an exciting new location,” said Travis Logie, WSL Deputy Commissioner.
MARGRETS BACK ON TOUR IN 2019 The WSL released its 2019 Championship Tour calendars for the men’s and women’s tours. A key change in the 2019 CT calendar is the breakup for the three-event Australia leg with a break following the Gold Coast and Bells Beach events before recommencing with the Bali event and returning to Margaret River as the fourth stop of the season. A notable absence from this year’s schedule is the title sponsor to this year’s Gold Coast Men’s and Women’s Pro. The event has run for more than a decade as the Quiksilver and Roxy Pro. We’ve followed up with WSL for clarification around this. “Margaret River has been a key stop on the CT for several seasons now and we had the unique and unfortunate circumstance of having to cancel this season’s event due to aggressive shark activity in the area,” said WSL Commissioner Kieren Perrow. “Working with our surfers, event partners and the local community, we’ve moved the dates of the Margaret River event later in the year to improve the pacing of the season as well as ensure the best chance for world-class conditions at all breaks.” WSL CEO Sophie Goldschmidt explained the changes in the tour’s calendar. “Working with our many stakeholders, we’ve shifted the start of the season from March to April, increasing the offseason for the world’s best surfers to recover and continue to push the boundaries of high performance surfing, also creating a more fan friendly condensed calendar.” The women’s Championship Tour schedule mirrors the men’s schedule in quality venues, but will see the transition of the Vans US Open of Surfing in Huntington Beach from a CT event to a QS10000 (alongside the men’s), as well as joining the men’s CT event in Peniche, Portugal.
JESSI MILEY-DYER INDUCTED INTO UNSW SPORTS HALL OF FAME Congratulations to WSL Commissioner Jessi Miley-Dyer who will be inducted into the UNSW Sports Hall of Fame. Miley-Dyer joins AFL stars Ted Richards and Tadhg Kennelly, and cyclist Stephen Wooldridge (posthumously) at a gala luncheon at Randwick Racecourse on October 25. The UNSW Sports Hall of Fame was launched in 2003 to honour UNSW students and staff, past or present, who have achieved success at the highest level of sporting competition or made a significant impact on community, country and the sporting world. Jessi becomes the first surfer to be inducted into the UNSW Hall of Fame.
ISA PRESIDENT FERNANDO AGUERRE RE-ELECTED Fernando Aguerre was re-elected unopposed as President of the International Surfing Association (ISA) at the ISA Annual General Meeting (AGM) during the 2018 UR ISA World Surfing Games in Tahara, Japan. Aguerre, whose tenure at the ISA is highlighted by Surfing's inclusion in the Tokyo 2020 Olympic Games, will commence his ninth term as President since being first elected in 1994. "My first words are ones of gratitude to the ISA Members for the continued confidence and support of me on this amazing ride," said President Aguerre. "I am honored to be able to continue to lead this organization and to dedicate my time and efforts to this worthy cause as we look ahead to a bright future. The ISA AGM also passed sweeping reforms to the ISA Constitution creating a more modern, document in line with contemporary standards of good governance in the Olympic Movement. In addition
HYPERFREAK SERIES Soli Bailey
INDUSTRY NEWS
to key revisions on transparency, integrity and institutional athlete involvement, the Executive Committee was expanded to include two new positions for regular members as well as including the Chair of the Athletes' Commission, currently Justine Dupont of France. In doing so, the AGM increased the size of the EC from five to eight and confirmed women make up 40 percent of the ISA executive body, well above the IOC-mandated standard. For the two new positions on the EC, the AGM elected Jean-Luc Arassus of France, President of the French Surfing Federation, and Atsushi Sakai of Japan, President of the Nippon Surfing Association, two accomplished leaders in the ISA's medium and long-term ambitions for Olympic Surfing.
SURFERS AND LIFESAVERS REACH HISTORIC AGREEMENT. For the first time since surfing’s boom in popularity in the 1960s, leaders of Surf Life Saving NSW and Surfing NSW have reached an agreement between the two state bodies. Increased co-operation, strong developmental pathways for athletes, and shared industry knowledge are just some of the many benefits for Australia’s coastal communities. A Memorandum of Understanding is being signed by Surf Life Saving NSW CEO Steven Pearce and Luke Madden (Surfing NSW CEO), which heralds a new era of cooperation. Some of the features of the new agreement include lifeguards and lifesaving assets provided to increase safety at Surfing NSW competitions, while the Surf Life Saving Academy will conduct First Aid Training for the Maroubra-based organisation. Additionally, Surfing NSW will provide fully accredited judges to the Midford NSW Board Riding Championships, and both organisations will cross-promote events and development opportunities for their members. “It’s a wonderful chance for our two organisations to share knowledge and introduce members to a diverse range of new opportunities,” said SLSNSW CEO Steven Pearce. “At the end of the day we both share the same passion for the ocean and many of our members are keen surfers when they are not volunteering on patrol,” he said. Surfing NSW CEO Luke Madden says he’s excited for this partnership to come to fruition. “We’ll be bringing to life combined initiatives like our Surfers Rescue 24/7 water safety program - providing CPR and board rescue techniques to surfers. SLSNSW has helped with the growth of this program that is now engaging and empowering surfers along the entire NSW coastline to help out when there are no lifeguards or patrols available.”
SBIA APPOINTS THOMAS AND HUDSON TO NEW POSITIONS The SBIA announced the appointment of Volcom AU/NZ General Manager, Alison Thomas as the newest SBIA Board Member. Alison has a long history in the boardsports industry, dating back to when she was a sponsored freestyle snowboarder and snowboard instructor. Over the past 13 years Alison has been a part of the Volcom Family where she’s had the unique opportunity to manage all departments from Production, Product Development & Merchandising, E-commerce and Retail until her recent appointment in 2017 as General Manager.
12/ Australian Surf Business Magazine issue #84
Additional announcements include current SBIA Board Member and Head Awards Process sub-committee, Mark Hudson (Director – Dragon South Pacific) has been appointment SBIA Vice President. Mark ‘Huddo’ Hudson has been an integral part of the SBIA as a board member and sub-committee contributor since 2016. SBIA President Anthony ‘Macka’ Wilson commented they are extremely fortunate to have someone with Alison’s diverse industry experience join the SBIA board. “The SBIA Board are excited with the addition of Alison and the appointment of Mark as VP,” said Macka. “Both Alison and Huddo bring valuable experience and insight to help ensure that the services and resources we provide remain accessible to our members”.
SURFING AUSTRALIA’S OPENS MASSIVE 4000 FT2 OLYMPIC TRAINING FACILITY World Surfing Champions and future Olympic surf stars attended the unveiling of Surfing Australia’s newly refurbished and revitalised $7m High Performance Centre (HPC). The expanded 4000 square feet HPC was made possible due to both Australian and State government funding grants combined with philanthropic donations by Don O'Rorke from Consolidated Properties, Hutchinson Builders and an anonymous private donor. The newly expanded HPC is also an officially recognised Olympic Training Facility and is four times the size of the original HPC building that opened in 2012. The opening of the new facility is timely given surfing’s debut at the Tokyo 2020 Olympics in just under two years and also a milestone achievement for the organisation led by outgoing CEO Andrew Stark, who steps down next month. All these new facilities will allow for a fullblooded Olympic Campaign heading towards the 2020 games in Japan, whilst ensuring the continued flow of Australian World Champions on the World Surf League (WSL) World Tour. The facility will offer talented surfers from around the nation a world class training environment. The HPC is also open to recreational surfers via paid camps and other sports will utilise the facility. The expansion project was made possible by the Australian Government’s investment of $2.536 million in funding through the Building Better Regions Fund and the New South Wales Government represented by Sport and Recreation within the Office of Sport who funded $3 million for the expansion. The balance of the facility funding was through Surfing Australia Investment and through philanthropic donations by Don O'Rorke from Consolidated Properties, Hutchinson Builders support and another private donor. Minister for Regional Development, Territories and Local Government John McVeigh said the local economy is already benefiting from the new state-of-the-art centre. “There’s been a big increase in the number of surfers riding waves at Casuarina which means business is on the crest of a boom. The regional economy has been given a $1.3 million boost since 2012 and it’s likely to more than double over the next five years,” said Dr McVeigh. The HPC has also been supported by the SAE Group who provided the facility with a 100 KW solar system to ensure the building is environmentally friendly.
retail news VANS ROLLS OUT RETAIL STORES Vans will expand its Australian retail footprint under the Accent Group with new stores set to open in Perth and Brisbane. Accent Group is cementing its leadership of the $3.3 billion footwear market by lifting targets for new stores and online sales while exploring growth opportunities in Asia. Chief executive Daniel Agostinelli told AFR his guidance for mid-single-digit earnings (EBITDA) growth in 2019 was likely to prove conservative as Australia's largest footwear retailer opened more than 30 new stores and used its existing 446 stores to distribute online orders, beating rivals such as Amazon on same-day deliveries. "We're conservative in our very nature," Mr Agostinelli told The Australian Financial Review on Tuesday after delivering a better than expected 18 per cent increase in underlying net profit to $47.1 million in 2018. "If we continue to trade at the levels we're at, it's likely we'll do a bit better than mid single-digit growth," he said. "But we're only seven weeks into the year (and) the environment remains uncertain.” Accent expects same-store sales to rise by low single digits this year but sales in the first seven weeks are already ahead of forecasts, rising 4.6 percent, despite widespread industry discounting and political upheaval. Accent is also launching a new website focused on selling children's shoes, and will make its entire catalogue available to customers instore and online as part of an "endless aisles" strategy. It will also start selling brands also under Accent Group such as Skechers on Amazon.com.au. Accent's decision to avoid "lazy discountfuelled retailing" paid off in 2018 – helping boost gross margins by 200 basis points – and said it would stick to its guns in 2019. "It was a gutsy call... but we've enjoyed better margins from fewer sales," Mr Agostinelli told AFR. The 2018 result, which excluded a $9.7 million write-down on the Hype DC brand in 2017, exceeded consensus forecasts around $42.1 million. Underlying earnings (EBITDA) rose 16 percent to $90.8 million – beating consensus forecasts of about $86.7 million – as reduced discounting sent gross margins up 200 basis points to 54.8 percent. Group sales (including sales from The Athletes Foot) rose 4.9 per cent to $861 million, with online sales soaring 131 percent, augmenting same-store sales growth of two percent. The roll out of Vans stores also introduces the first Vans Concept store to Brisbane CBD.
AKWA TURNS 10 AKWA Surf celebrated their 10th birthday recently with owner Kurt Nyholm extolling the virtues of following your heart for a business dream. “Ten years ago we had a lot of butterflies in our stomachs as Matt and I both left good jobs to pursue a dream we had both shared since boyhood,” said Nyholm.
“We had a lot of guys doubting our decision to open a surf shop especially in the retail climate, some thought it was an expense gamble, but we could foresee a hole in the market where we set up and backed our knowledge of surfboards and hardware as well as introducing a younger more fashion forward apparel range to our area which proved to be a hit, plus we always knew the product which ultimately is "surfing" is not going away.” said Kurt Nyholm. “We are extremely lucky to be part of an industry that we truly love and live where coming to work is a constant pleasure.”
RIP CURL OPENS NEW PERTH STORE AT WESTFIELD CAROUSEL Rip Curl announced the opening of its brand new Westfield Carousel store, expanding an already strong Rip Curl presence in and around Perth. With retail doors already in Whitford, Scarborough and Fremantle – not to mention the Domestic Terminal and International Terminal stores – the opening of Westfield Carousel means that anyone, anywhere in Perth, can grab surf products on the go without travelling out of their way. Westfield Carousel is located at Shop 1223 , 1382 Albany Hwy Cannington, WA 6107.
e-tail news INSTAGRAM POLL REVEALS ‘NAY’ TO AFTERPAY Thousands of online and brick-and-mortar retailers took part in massive sales for AfterPay Day, a 24-hour period where a massive range of online and brick-andmortar retailers heavily discount all their prices. If you’re not already familiar with AfterPay, it’s a “buy now, pay later” service that works like a temporary credit card. Over the past two and a half years, AfterPay has emerged from nowhere to become a $4billion juggernaut - one of Australia's biggest fintech successes. AfterPay allows consumers to purchase products online or in store and instead of paying the cost upfront, they pay it back in four fortnightly instalments. The money is automatically taken out of your account on payment day. There is no interest charged on these payments, unless buyers fail to meet the fortnightly payment deadline. Thousands of Australian retailers are signed up to AfterPay and offered some amazing sales on Afterpay Day; The Iconic: 20 per cent off selected items, City Beach: 30 per cent off site-wide, Surfstitch: 25 per cent off selected stock as well as various offers from surf brands like Billabong, Quiksilver, Rip Curl. Despite its successes, the results of our straw poll on Instagram revealed that; 73% of those polled said ‘NAY’ to AfterPay Day. The company has also copped criticism for drawing more Australian’s into debt. According to a report on Mumbrella, Australian household debt is the fourth highest in the world, and with a net national debt accruing interest of $31,664,835,069, it is clear that many Australians are struggling to get on top of their debt.
For all enquiries please contact Surf Composites • 02 4225 7995 • www.surfcomposites.com.au
INDUSTRY NEWS
marketing news O’NEILL LAUNCH THE O’RIGINALS SERIES O’Neill South Pacific dropped their latest campaign ‘The O’Riginals’ and it’s a departure from the normal lineup up of brand ambassadors we are used to seeing from O’Neill. The three part O’Riginal series featured artist Billy Bain, design student Dan Johnson and gardener Lachie Rombouts. Captured and crafted by former Surfing World Editor Vaughan Blakey, filmmakers Shane Fletcher, Darcy Ward, Max Zappas and Josh Simpson, produced by Rob Bain and Lulu Wilkinson and with sounds by Pist Idiots. “We all celebrate the professionals in our sport – and rightly so,” said ONSP Men’s Brand Marketing Manager, Rob Bain. “But thinking of surfing not as a sport, but as a pleasure – we want to celebrate people who break barriers in different, yet also important, ways.” Bain added that producer Vaughan Blakey was a natural choice to lead the project. “To really get the subjects to open up and share their passions, their vulnerability and feel comfortable in front of the camera, Vaughan was the right fit, due to his relaxed easy-going style of interview.” According to Bainy, “These are the people Jack O’Neill developed the brand for, way back at inception. Their innate froth really matches with his famous catchphrase, “First in, Last out.” By just following their own instincts, these guys are original. And in really interesting and different ways, their surfing helps them be happier and more creative in their daily life too.”
FIREWIRE LAUNCH #STOKELIVESATSURFSHOPS Firewire are encouraging their retailers to send photos of their new Cymatic design and tag for a chance to see their shop mentioned on the Firewire Surfboards website. “We’re doing this because stoke does live at surf shops,” said Chris Grow, Global Marketing Manager at Firewire, Slater Designs, Tomo Surfboards. “They're the cornerstone of our culture. And we want to remind our audience that our surfboards are only available through surf shops. Not on our website. Not at flagship stores. Not factory-direct.” Those interested can take a photo of the Cymatic on the rack or in front of a tree or floating in the sea. (Just make sure no other boards are in the image.) Then simply post the image to Instagram and hashtag it #StokeLivesAtSurfShops along with any caption. Firewire will be searching this hashtag all month and choosing random photos to repost on @slaterdesigns and @firewiresurfboards.
DRAGON ALLIANCE INTRODUCES REFRESHED BRAND IDENTITY Dragon Alliance unveiled its revamped brand identity and image campaign, which build upon the brand’s storied history while preparing Dragon® for a new era of growth. Dragon’s remarkable legacy of product innovation, athletic achievement, and unique designs remain the focus and the platform, while the brand expands to engage a broader audience interested in sharing the Dragon brand experience and innovative products. The brand’s distinctive logo has been given an updated look to reflect the modernity of the brand and investments have been made in updated visual merchandising and packaging which showcase the product innovation and details. 14/ Australian Surf Business Magazine issue #84
The dragonalliance.com website has also been refreshed for a more insightful user experience. Built on a more robust e-commerce platform, the site is fully responsive and mobile-friendly, providing a hassle-free consumer experience. The intuitive new site also features a clean design with easy access to product information, athlete news, and marketing initiatives. The new global imagery sees a return to Dragon’s “Frame of Mind” campaign, which focuses on compelling storytelling and the motivational drive behind each of the brand’s snowsports and surf athletes. Many of Dragon’s world class ambassadors – such as Mick Fanning, Rob Machado, Bryan Iguchi, Evan Geiselman, Danny Davis, Jossi Wells, Blake Paul, and Griffin Colapinto – will be shown in their respective environments wearing the latest Dragon eyewear and goggles. The new print and digital campaign will be complemented by a series of dynamic videos featuring each of these athletes, which will roll-out this fall on Dragon’s social media channels using the #ItsAFrameOfMind hashtag.
team news FCS SIGNS USA STAR GRIFFIN COLAPINTO FCS announced the signing of USA surfing star Griffin Colapinto to a deal that will see him endorsing the FCS II System and Fins. Following a meteoric rise onto the WSL World Championship Tour, Colapinto, is being touted as a world title contender at the young age of 20. “It’s a real honour to join the FCS team and have the opportunity to work closely with their staff on my fin set-ups. It really was the last bit of board education I was missing,” said Griff after signing the deal. Further to the Griffin deal, FCS has also signed younger brother Crosby to a regional USA contract covering the full array of FCS hardware categories. Crosby is a super talent in his own right, having achieved a well celebrated junior career including three consecutive USA Championships.
C-SKINS SIGNS MATT MEOLA C-Skins announced the signing of Maui native Matt Meola to their Slaves International team. “Matt loves pushing boundaries and experimenting, which is a great fit for C-Skins,” said Mark Brown, Technical Director at C-Skins. “Having Matt give feedback to our design team will only help to improve our products further, we are so happy to have him on board.” Matt Meola’s contract with C-Skins starts immediately, and both are looking forward to an exciting future ahead.
media news COASTALWATCH PARTNERS WITH FOX SPORTS 3CMG announced it has completed a licensing rights deal with Fox Sports for its Coastalwatch Surf Check app that saw the app become a free download in July of this year. The new partnership brings together Australia’s largest sports producer with the country’s most popular surf information provider. Coastalwatch live streams over 100 surf cams nationwide, produces daily
surf reports, surf forecasts and surfing news reaching over 3.6 million unique visitors each year. Under the deal Fox Sports will licence access to advertising and content channels on the app while Coastalwatch will continue to produce, develop and publish the app. Both companies will join forces to promote the app across combined digital and TV audience. The partnership is exclusive to the Coastalwatch Surf Check app and does not include the coastalwatch.com website or the Coastalwatch Plus service. Since its launch in 2009, the Coastalwatch Surf Check app has been downloaded over 500,000 times across Apple and Android platforms and is regularly listed as the number one app for Sports in Australia (Paid). Starting from July 2018 the app became free to download (was $4.99) and a series of upgrades are underway that include new features and an improved user experience. 3CMG’s Managing Director, Kim Sundell said, “Our Coastalwatch Surf Check app is a daily ritual for thousands of Aussie surfers planning their lives around going for a surf. Live surf cams, forecasts and reports represent the surfing version of a scoreboard, making the partnership with Fox Sports a natural fit.”
STAB HIGH PAY PER VIEW WRAP WITH SAM MCINTOSH Despite a glitch that PPV partners Cleeng admit happened during the live broadcast, ASB were more than happy to shell out AUD$15 for five hours of Video On Demand. The time zone for the STAB HIGH wave pool contest in Waco Texas at the BSR Surf Resort didn’t align well on AEST, so the VOD was an obvious way to tune in on Sunday at our own time and leisure. We filed this up-to-the-minute report as STAB were still streaming Stab HIGH on-demand at the time of writing. There’s obvious questions around the PPV numbers, but we need to stop, pause and rewind here and appreciate this was a ‘world first’ for surfing and future iterations of STAB HIGH can only get better. The fine details: Noa Deane won and took home a cool $25k. Eithan Osborne won the highest air, and $20k. The Vans’ sponsored ‘Acid Drop’ was a personal highlight and the loot was distributed evenly by legend Nathan Fletcher. Monster Energy sponsored it and got their boy Bobby Martinez on the mic. Personal highlight? Seeing little ripper Jackson Dorian running riot on his birthday and his dad, Shane Dorian commentating on Jackson’s Big Day Out. Best on Ground, Mason Ho. But to the business side of the event, the obvious questions are will it be back? What were the PPV numbers ? We caught up with STAB’s Sam McIntosh for this post event wrap. ASB: Hello Sam. Sam: This is gonna be contradictory coming from me, but is this gonna sit behind a paywall? ASB went 50/50 on this, one behind the paywall, the other not. But no, this won’t rest behind a paywall. So, all eyes will see it online …. and in print! What was the highlight of the event? Sam: Seeing these surfers digging the format. The unfiltered nature of it all. The beer, the breasts, the realness (sorry couldn’t use the word authenticity). It felt like surfing even though it was a long way from the ocean. We’re a really small team at Stab and we just had to wing it. Our Editor-inChief, Ashton was brilliant live announcing. Our Creative Director, Shinya Dalby had to do the graphics package for TV. Morgan Williamson took responsibility of all press.
Sam Moody and Dylan Roberts worked with the broadcast team using filming equipment four times bigger than they’re used to. Stab writer Mike Ciaramella was head judge. Rick Snowden had to help set up the audio, produce, and backline for our poolside gig. I was the event director and have never even run a boardrider’s contest. What were the PPV numbers? Sam: Better than we ever expected. The feedback has been really good, and it feels like those who paid are more invested in the success of the event. We wanted loyalists. We want people to be talking about highlights that not everyone saw. We still see value in great things you have to pay for. Will STAB HIGH be back? Sam: We learned a lot. And I think we did okay. But yeah, we’ll be back. Why does STAB continue to push the boundaries? Sam: This was a natural evolution of our business, more than pushing the boundaries. We’ve got a team who are very detail oriented, and who have come to understand the culture on such a granular level, that we can see where we can improve things – take the singlets. Instead of tight rashes, which no one wears in real life, we had these little creatures that were on the surfer’s individual t-shirts, on the webcasts, on the voicemails as pre-event marketing, on coffee cups, on the wall behind the waves in the pool – and all the surfers were so stoked on them. It’s stuff like that. I’m really proud of what our guys did. Is STAB a production company now? Sam: Our role at Stab as media is to cover and aggregate the news, but we’ve always been at our best when we’re making the news. If we can provide a platform that connects with our audience, that allows these surfers to be themselves and helps brands hit their own objectives, that feels like a pretty good place from which to operate.
FACEBOOK STOCK DROPS ROUGHLY 20%, LOSES $120 BILLION WSL announced that to ensure fans get to see all the action from the Tahiti Pro, the WSL would revert to streaming content through its website, mobile apps and smart TV’s and also on Facebook Live. It was a welcome return to traditional viewing for fans of the WSL and also timely. Last month, Facebook’s market value dropped by $120 billion — the largest ever corporate loss in history — when it announced that growth would slow. In Europe, Facebook announced it dropped by 3 million daily users and 1 million monthly users since the first quarter. FB stock closed down 19% which means that investors erased the entirety of the company’s 2018 gains. Its market capitalization was $510 billion and 170 million shares had changed hands. Facebook’s slump was the ugliest decline since the company went public in 2012. Facebook stock had recovered from a decline earlier this year in the wake of the Cambridge Analytica scandal, one of several controversies and warning signs that the company had managed to weather with little damage to its stock. But declining revenue and user growth, topped by a warning from executives that it will continue, seemed to end that run. “The guidance, it’s nightmare guidance,” GBH Insights head of technology research Daniel Ives said. “If you look at their forecast for the second half of the year in terms of user growth, and the expense profile, it refuels the fundamental worries about Facebook post-Cambridge Analytica.”
Profits were not what rattled investors, though. Facebook recorded sales of $13.04 billion, a 41.9% increase from a year ago, but that was lower than analyst estimates and previous growth rates. User growth was flat in the U.S. and Canada, and declined in Europe from the previous quarter. But the stock didn’t fall off a cliff until Chief Financial Officer David Wehner disclosed that the social-media giant expects the revenue-growth slowdown to continue. The company disclosed that its head count has increased 47% to 30,275 since the yearearlier period, part of that outsize spending. “As I’ve said on past calls, we’re investing so much in security that it will significantly impact our profitability,” Zuckerberg said. “We’re starting to see that this quarter.” Even though Ives says that the quarter was far from disastrous — it was decent with a few rough patches — he expects investors to continue punishing the stock in the near-term. “The quarter itself had geographic soft spots and disappointed the bulls,” Ives said. “There are a lot of natural headwinds (Facebook is) seeing, this is going to be one quarter that puts the stock in the penalty box for a while until they can prove that advertising tailwinds and user growth are back on the right track.” Facebook’s numbers in Europe declined in large part due to the European Union’s General Data Protection Regulation, which went into effect during the quarter. Zuckerberg and other executives said GDPR was the reason for Europe’s slowing user count. It dropped by 3 million daily users and 1 million monthly users since the first quarter. The one saving grace for Facebook could be continued support from advertisers. Less subject to the quarterly demands of investors, advertisers aren’t yet seen as planning to ease back on Facebook budgets. As Facebook stock plummeted, it also brought social-media rivals Twitter Inc and Snapchat parent company Snap Inc to the party.
ANDY IRONS FOUNDATION LAUNCHED Surfing World backed the national screenings of “Andy Irons: Kissed by God” which attracted sold out shows for most of the tour locations. Aside from being a multiple world and Triple Crown champion and global surfing icon, Andy also had bipolar disorder, often known as manic-depressive disorder. The film invokes conversations on once-taboo topics of addiction and mental illness. But Lyndie Irons has gone a step further to support the discussion, launching the Andy Irons Foundation. Their mission is to celebrate the legacy of Andy through providing vital, innovative, and uplifting programs for young people struggling with mental illness, substance abuse, and learning disabilities. More at https://www.andyironsfoundation.org
VOLCOM PREMIERE NOA DEANE'S "HEAD NOISE" In the week following the passing of his legendary and Hall of Fame winning father Wayne Deane to stomach cancer, Noa Deane has just dropped his latest edit ‘Head Noise.’ Volcom calls the film a high-action, heavycharging, avant-garde and candid look at one of surfing’s most exciting characters. Volcom said in a statement the film’s title is aimed at demystifying the noise within Noa’s own head and destroying the noise of the stereotypes which surround him. “Noa has been characterized as a punk kid, but he is thoughtful and down to earth. Noa’s life might look like an easy dream ride, but he has demons to slay.”
sponsorship news
ALEX SMITH APPOINTED TO SHI GLOBAL BRAND MARKETING MANAGER
NUDIE NEW NAMING RIGHTS PARTNERS OF SURFGROMS
In the expanded role Smith will be overseeing Surf Hardware International’s global brand portfolio with a focus around overall strategy and visual direction.
nudie (juice) has expanded their support of Surfing Australia, taking naming rights to the national SurfGroms program supported by Rip Curl, for the next three years.
KYE FITZGERALD TO WATERSHACK
nudie ‘creators of good’ currently support key Surfing Australia Sport Development programs such as the nudie Australian Boardriders Battle, nudie Australian Adaptive Surfing Titles, Surf for Life and the Solider on Surf Therapy Program. This is the eighth season that the nudie SurfGroms program supported by Rip Curl has been run across the nation. “Surfing Australia is stoked to have nudie expand their support into the SurfGroms program,” said nudie ambassador, 7 times World Champion and Surfing Australia Chair, Layne Beachley. “Over the last two years, they have played a significant role in the success of our benchmark programs and events.” The program moves into the new season with support from Rip Curl in the form of goods for the groms.
Kye Fitzgerald will represent Watershack products (from Port Macquarie Sth to the NSW/VIC border) along with Haydenshapes. Watershack’s Managing Director Rob Cribb told ASB, “I’m very excited about this because like myself, both Kye and I have a lifetime of history in the sport and industry.” Founded by Cribb his wife Leiona, Watershack, the company is now in its 8th year and has 90% of Australia’s Inflatable Waterpark business, along with a very healthy nation-wide network of dealer support for their accessories business. The company also has distribution throughout Hawaii, Sth Pacific Islands & New Zealand.
SIMON MACGREGOR TO BOARDRIDERS
Since nudie SurfGroms was launched in October 2011, more than 70,000 Australian children have experienced the thrill of surfing for the first time, and registrations for the latest programs are now open, just in time for summer.
Former VP of Global Marketing Pacsafe has joined Quiksilver and Roxy brands as Consumer Activation Manager for ANZ. Prior to that MacGregor held various positions at Quiksilver in Australia and SE Asia.
nudie SurfGroms offers youngsters aged 5-12 years old an opportunity to learn to surf while developing strong ocean awareness and beach safety skills at a very influential period in their lives.
DANIEL BOXALL MARKETING MANAGER MULTI BRANDS AT BOARDRIDERS
Surfing Australia’s Acting CEO Jake White said, “We are proud to be launching season eight of nudie SurfGroms with the aim of starting another 10,000 groms on their lifelong surfing journey.”
on the move SHANNAN NORTH CELEBRATES 25 YEARS AT BILLABONG Congratulations to Shannan North on 25 years at Billabong, where he currently serves as Global Brand President. According to Kevin Lorber, Sr. Global Marketing Manager at Billabong, “Shannan lives and breathes Billabong and has had such a tremendous influence and impact on all of us who have worked with him over the years.”
JOHN SHIMOOKA APPOINTED TO GM OF SURFING NSW. Surfing NSW has announced its new staff and Board of Director’s structure. Surfing NSW has appointed a new General Manager and a second female director to its six-member board. Former World Championship Tour surfer John Shimooka has been appointed to the position of General Manager of Surfing NSW. Lyndel Gray, CEO of Caravan Camping Industry Association NSW is the latest addition to the Surfing NSW Board of Directors. Lyndel has a wealth of experience in tourism and leisure industries and was formerly the CEO of Tourism NSW. Prior to that, she headed up Tourism Australia’s Americas operations for 14 years. Gray will join CEO of Women in Banking and Finance Jen Dalitz as the second female on the newly structured board that also includes Chairman John O’Neill, Harry Hodge, Paul Chandler and Mark Windon.
Congratulations to Daniel for starting a new position as Marketing Manager Multi Brand Retail at Boardriders.
ROSS KEEHN TO FUTURES Former O’Neill NSW Sales Representative Ross Keehn has secured the highly soughtafter position of Futures Sales and Marketing Manager. “He’s settling in well,” said Futures’ Pete Tusseyman. Commenting on the application process Tusseyman says that “I was very impressed with the coverage and interest we received from our recent job listing via ASBMAG. com. The communication and follow up provided by ASB showed a commitment to fulfilling the role that was above and beyond my expectations. From my experience I would certainly recommend ASB as the perfect place to list any surf industry jobs.
environment news PATAGONIA STEP UP THEIR FIGHT FOR THE BIGHT Patagonia have stepped up their Fight For The Bight with their latest campaign ‘Big Oil Don’t Surf ’. Earlier this year the company lead a petition of surf brands and the SBIA opposing drilling in the Great Australian Bight. However, the Fight For The Bight is also something very personal to us. It’s a fight that resonates loudly in our town, where 300 community members rallied in a show of solidarity against ‘Big Oil’. It was the largest gathering of protestors we’ve ever witnessed in our home town, more importantly, it was led by surfers. Patagonia’s Dave Rastovich wrote an impassioned letter regarding plans to drill for oil in the wild waters of the Great Australian Bight and sent video a message to the packed community screening of Operation Jeedera.
“This is a bad and dangerous idea,” said Rasta. “The Bight is one of the most pristine marine environments anywhere in the world and is currently free of all oil and gas operations. “This exploratory process itself has inherent risks, let alone fully operational oil rigs working in the Bight. The areas concerned are in deep water, in wild ocean, a long way from any immediate help should the unthinkable happen. Any of these oil rigs could become our own Deepwater Horizon.” Unfathomably, the Australian Government granted the first exploration permits in the Bight less than a year after BP’s Deepwater Horizon rig had exploded in the Gulf of Mexico, laying waste to the Gulf coast. The same company was now granted permits in waters twice as deep, waters open to the full force of the Roaring Forties, and waters home to one of the world’s last great pristine marine ecologies. This wasn’t the Mexican Gulf, this is our backyard. Fight For The Bight Alliance members continue to our lobby local councils, resulting in the Moyne Shire Council becoming the first Victorian Council to oppose drilling in the Bight. Moyne Shire joins 12 other shires in South Australia opposing drilling, yet many Councils directly in the firing line of a spill continue to support ‘Big Oil’ developments in The Great Australian Bight. The threat is very real, and the risks associated with drilling in the Bight were articulated best by local author and ASBMAG regular contributor Jock Serong. ‘This Is Not A Drill’ first appeared in September issue of Surfing World Magazine.
RIP CURL LIVES THE SEARCH FOR CLEANER ENERGY At a Council-hosted ‘Smart Energy Smart Business’ seminar in Warrnambool, Rip Curl Operations Manager Sam O’Dwyer gave a fascinating insight into the firm’s adoption of solar power. Sam’s a chartered accountant and was previously CFO for Australia/NZ. His approach to solar energy wasn’t some green epiphany, rather, in scanning the annual budget, he saw the company’s energy costs and realised he needed to start the process. “There’s never a perfect time,” he told the seminar. “But we just had to get going.” This was a couple of years ago. “We’re just starting on the new energy journey, Sam said. “We’ve done lots of work on sustainability of product, recycling and environmental impact, but energy is new.” Sam and his team began with the “easy” job – updating all interior and exterior lighting to LED. Then they installed a 30kw/120 panel solar array on one of Rip Curl’s warehouses. “Stage 2A” is the installation of a 100kw, 400 panel array on the roof of the Torquay HQ and retail store. “We’d always understood the benefits of solar, but we were cautious,” said O’Dwyer. “The cost of installing, smart energy not being an area of expertise for us. But we met a trusted provider and other respected businesses around us had also done the homework and the due diligence, which gave me confidence.” The results were “instant”, according to O’Dwyer: the LED lighting was brighter, and staff commented there were fewer shadows on displays and no flickering. “And they brought our maintenance costs down. In the large shed it was more efficient to wait for three or four lights to go out before we’d get the scissor-lift up there and change them over. Now, the LEDs have a 7-year warranty.” Over twelve months, the firm’s seen a 17% reduction in energy costs, and saved 150 tonnes of carbon. An unexpected benefit, according to O’Dwyer, was that the panels are visible to the community and have become a talking point. 15/
INDUSTRY NEWS
O’Dwyer was optimistically cautious on the future of the project. “We’re not yet at the stage of putting energy back into the grid – it’s just bill reduction at this stage.”
PATAGONIA MAKES THEIR WETSUITS FAIR TRADE Patagonia’s selection of neoprene-free wetsuits are now Fair Trade Certified. This means that Patagonia pays a premium that the factory workers can use at their discretion. Fair Trade Certified factories must also adhere to a strict set of standards for safe working conditions and environmental responsibility. These are the first-ever Fair Trade Certified wetsuits on the market. Ten years ago, Patagonia set out to replace neoprene with renewable natural rubber. “Changing an entire industry hasn’t been easy, but after a decade of research, development and progression—and thousands of hours of testing in the lab and the water – we’ve succeeded in creating neoprene-free wetsuits that perform as well as anything else out there,” read a statement by Patagonia on their YouTube Channel. Patagonia’s wetsuits are made from 85% Yulex® natural rubber/15% synthetic rubber by polymer content; interior lining is 100% recycled polyester. This updated line of wetsuits represents the best the company has ever offered, both from a performance and sustainable standpoint.
BUNBURY TO TRIAL WORLD FIRST INFLATABLE ARTIFICIAL REEF While Australia’s first artificial wave is set to launch next month in Yeppoon at Surf Lakes, a ‘world first’ artificial surfing reef, created entirely in the ocean at Bunbury WA is edging closer to reality. Surfer and inventor Troy Bottegal has gained the approval of the City of Bunbury for his Airwave to be installed in the very near future. The Airwave is a compact, inflatable bladder, shaped, positioned and anchored close to the beach, in such a way as to transform closeouts into surfable a-frame peaks. Mr Bottegal has already done some small-scale testing and believes Bunbury is the perfect location to create ‘fun’ waves between one and six-foot high. Apart from the infinite possibilities of beach installations, Airwaves can also be installed along the course of flowing rivers, to enable multiple, perfectly shaped, standing waves to be formed. Another benefit is to provide a ‘frontline’ defense for coastal erosion and rising sea-levels. It’s an application of the technology that’s gaining a lot of attention for Mr. Bottegal who also notes that there is a significant amount of R&D grants for coastal erosion projects throughout Australia. However, for the world’s first Airwave test to come to life, a crowd funding programme is in progress via Kickstarter in order to raise the $300,000 to enable the completion of the final installation and testing. At the time of writing the campaign has achieved just $6000 from 60+ investors, yet Mr. Bottegal believes if this test project is successful, it will completely alter the way we think about building artificial reefs. More info at their website www.waveco.com.au
actionwatch insights ACTIONWATCH AUGUST TURNAROUND ENDS (-15 %) YOY ACTIONWATCH OZ: After experiencing a (-23%) decline across our panel in July, I suppose August’s (-15%) could be 16/ Australian Surf Business Magazine issue #84
considered a win. August's Avg $ Sales YOY Change is on par with June’s (-14.8%) across all categories on our ActionWatch Oz panel. But let’s not beat about the bush here, August shows a double-digit decline for the same period last year, with average store sales of just $58,990 for the month. No doubt, August was tough, so I'd like to stop, pause and rewind here and thank our panel for their contribution to better understanding the independent surf retailer sector. Whilst our panel remain anonymous it’s only through the timely application of the data, that our industry can learn and make necessary adjustments. August marks the third month in a row where sales across all categories are in double-digit decline. Still there are bright spots amongst the data, so let’s dig a bit deeper to find the gold. The August results were fuelled by doubledigit decline in both the women’s market (-19.7%) compared to the men’s market at (-13.8%). The stronger August performance off-set the poor Q2 sales results, bringing the YTD decline to just (-11%). And whilst we are still in double-digit decline after three consecutive years of declines it is good to edge closer to single digits with only four more months to go in the year and this reinforces the belief that we can end 2018 in positive growth territory. Looking at a category analysis, Hardgoods fared the best down just (-4.9%) followed by Footwear (-10.8%), Accessories (-11%), Apparel (-18.6%), whilst Wetsuits were down (-21.5%) for the same period last year. Despite the wetsuit category red-lining on our ActionWatch panel, the top five wetsuit brands actually grew their Brand $ Share YOY in the wetsuit category in August. You’ll need to subscribe to the wetsuit category to dig deeper and find out which brands and styles are outperforming the market. The women’s segment experienced very few bright spots in terms of specific individual categories. We saw some positive signs for Bottoms/Completes with Other Bottoms (+59.7%) and Denim up (+1.5%). Perhaps ASBMAG’s deep dive on denim in Issue#83 (August 2018) played a small part in the turnaround for denim? We’d certainly like to think so! Looking to specific Women’s category performances, Women’s Accessories was down (-26%) but experienced growth in Duffel Bags (+34%), and Shoulder Bags (+0.5%), Visors (+149.5%) and Sport Watches (+89.7%). Sunglasses performed exceptionally well up (+13.5%), Socks again performed well up (39.8%). Footwear was down (-8.9%) with Unknown Sandals up(+46.9%), Casual Sandals (+18.4%). Unknown Shoes were up (+58.9%). Women’s Wetsuits (+1.3%) showed Standard Wetsuits up (+7.8%) L/S Spring Suits (+85%) Full Wetsuits (+18.5%), Short John Wetsuits (+63.3%), Booties (+99.8%). However, Spring Wetsuits declined (-12.9%). Interestingly, Spring Suits was the only product in the women’s wetsuit category to also show a (-3.6%) Average YOY Margin decline. Let’s skip straight to the highlights in the Men’s categories where we found fewer segments to highlight. For Tops we can again point to Other T-Shirts (+46.1%) and Unknown Shirts (+21.2%) whilst still in decline it is encouraging to see Boardshorts close just down (-3.1%) and we expect to see growth in this important category, as we move into summer. While Accessories remained down (-7.0%), Sunglasses performed strong up (+8.7%), Wallets (+14.3%) Other Hats were up (+7.6%) Underwear was up (+50%) and Jewellery (+57.1%). Shoulder Bags were up (+25%). Interestingly, Duffel Bags were running hot last month but closed down (-43.2%) YOY in August. The Men’s Wetsuit category was down (27.1%) but was highlighted by Spring Suits (+78.2%) and Wetsuit Jackets
(41.9%) and Unknown Wetsuits (+31.6%), Rash Guards (+9.4%). Footwear was down (-11.7%) but rallied with Sandals up (+9.7%). Another very encouraging sign in August is the YOY sales growth in most of the core Surf Hardgoods categories despite being down (-0.7%) overall. This category was led by Softboards (+149%), Bodyboard Hardgoods (+38.4%), Surfboard Leashes (+25%), Surfboard Bags (+20.8%), Shortboards <9ft up (+12.2%). Meanwhile, Short Decks (+3.2%) led the way for Skate Hardware (+6%), while Wrist Guards (+41%) top performed in the Protective Gear category. Helmets had been running hot last month, but finished down (-18.2%) YOY. While (-15%) double-digit decline across all categories is not normally something we’re upbeat about, we are however, buoyed by the (+8%) turnaround from July. The sunny start to Spring always brings a renewed sense of optimism, and anecdotally the opening of two new independent surf stores in our neck of the woods was personally very encouraging. This aligns closely with reports from on the ground at the recent Surf-Expo show in the USA, which was well attended, but also full of energy. I love the glasshalf-full sense of optimism in our industry, but I’m extremely proud we’re bringing some big data and science to the table with ActionWatch Oz. How did these results compare to your store and your interpretation of them? We’d be stoked to hear from you. Keith Curtain|Director|keith@actionwatch.com
finance news VFC SPINS OFF DENIM TO CREATE TWO INDEPENDENT COMPANIES VF Corporation announced that its Board of Directors intends to separate the company into two independent, publicly traded companies: VF Corporation, a global apparel and footwear powerhouse, and a yet-to-be named company (NewCo), which will hold VF’s Jeans and VF Outlet businesses and will be a global leader in the denim category. The company expects to create these companies through a tax-free spin-off of NewCo to VF’s shareholders. “As shown by our recent quarterly results, VF continues to gain momentum on our transformation journey, marked by strong progress on our strategic initiatives and portfolio management,” said Steve Rendle, Chairman, President and Chief Executive Officer. “In alignment with our strategic plan, the decision to separate these businesses will allow VF to sharpen its focus as a consumercentric and retail-minded organization anchored in activity-based lifestyle brands.”
VANS TARGETS $5 BILLION IN REVENUE BY 2023 Vans, a division of VF Corporation promised to provide details of its plan to grow revenue by $2 billion to reach $5 billion by fiscal year 2023, representing growth between 10 and 12 percent over the five-year period. “Since VF’s acquisition in 2004, the Vans brand has grown at a 17 percent compounded annual rate and transformed into a $3 billion global lifestyle brand,” said Steve Rendle, VF Corporation Chairman, President and Chief Executive Officer. “I am confident in the Vans team’s ability to deliver on a bold $5 billion revenue target which will be a key driver of VF’s plan to deliver superior total return to shareholders over the next five years.”
Vans Global Brand President Doug Palladini said Vans’ cultural pillars of art, music, action sports and street culture were key to their target.
GLOBE WORKWEAR DRIVES 19% GROWTH YOY. Globe International Limited (the Group) announced its results for the financial year ended 30 June 2018. The Group reported that all key metrics were ahead of the previous corresponding period (pcp), including growth in revenues, profits, dividends and operating cash flows, as outlined below: • Revenues for the financial year of $147.7 million were 5% or $7.2 million above the pcp. • Earnings before interest, tax, depreciation and amortization (EBITDA) grew by 57% to $9.6 million, compared to $6.1 million in the pcp. • Net profit after tax (NPAT) grew by 66% to $8.4 million for the financial year, compared to $5.1 million in the pcp. • Cash-flows generated from operations were $11.2 million, compared to $10.6 million in the pcp. • Dividends in relation to the 2018 financial year of 11 cents per share were 37% higher than the 8 cents per share paid in relation to the 2017 financial year. Net sales for the year of $147.3 million grew by 5%, in line with expectations. Following flat sales in the first half, solid second half growth in North America and Australia drove an 11% increase in sales in the second half, resulting in the 5% growth for the full year. Gross profit margins were higher than the pcp by 1.4 percentage points, driven by sales mix and favourable foreign exchange impacts. EBITDA margins of 6.5% of net sales were higher than the pcp by 2.2 percentage points, as costs grew at lower rate than sales. A brief overview of performance by region is included below: • The Australian division continues to be the key contributor to Group sales and profitability. While overall sales growth for the year was modest (+2%), EBITDA was $2.3 million or 19% higher than the pcp, driven mainly by sales and profit growth in the workwear division. • The performance of the North American division for the year improved significantly, with a $2.8 million turn around in profitability compared to the loss in the prior corresponding period. This turnaround was a result of the restructuring that was completed during the 2017 financial year, as well as an 11% increase in revenues driven by new apparel initiatives. • The European business reported modest growth in sales and profitability. Cash flows from operations were $11.2 million and over the year net cash balances increased by $6.0 million. During the year the Group continued to closely and effectively manage working capital and, as a result, working capital balances remained flat on last year despite the growth in net sales. Chief Executive Officer Matt Hill said, “The results for the financial year are pleasing. They reflect a strategy implemented to diversify our business into new brands and distribution channels. It is satisfying to have been able to deliver increasing returns to our shareholders in recent years, fuelled by year on year growth in sales and profits. FY18 marked the third consecutive year of dividend growth. As we look forward, we are cautiously optimistic about the trajectory of our brands in our key markets. We anticipate modest growth in revenue and profits in the 2019 financial year.”
For all enquiries please contact Surf Composites • 02 4225 7995 • www.hydroflask.com.au
OVERSEAS NEWS
u.s news VFC SELLS REEF TO THE ROCKPORT GROUP VF Corporation (NYSE: VFC) announced that it has entered into a definitive agreement to sell Reef® to The Rockport Group (Rockport) of Newton, Massachusetts. Rockport is a portfolio company of Charlesbank Capital Partners, LLC (Charlesbank), a middle-market private equity firm. While the sale price was not disclosed, in May 2018, the Rockport Group filed for Chapter 11 bankruptcy protection in the United States. Rockport was previously owned by Adidas and was acquired by Charlesbank Capital Partners LLC in 2015 through the bankruptcy process for US$150 million. VF acquired Reef in 2005 and although no sale price was disclosed, Reef had reported sales of US$75 million (excluding royalties) in 2004. Commenting on the agreement, VF’s Chairman, President and Chief Executive Officer Steve Rendle said, “Reshaping VF’s brand portfolio to deliver sustainable, long-term growth and superior returns to shareholders remains our top priority. Today’s announcement is another step toward delivering on the commitments outlined in our multi-year business strategy. We are pleased to have reached this agreement with Rockport. The Reef brand is an iconic, beach lifestyle brand, and Rockport is well-positioned to guide its next phase of growth.” Locally, Reef Australia Brand Manager Tim Barr said that “The new owners are ready to invest and grow Reef.” “ Other than that, it’s business as usual, our Global HQ remains where it is, and the executive team will remain in place as there are no plans to shift or change our existing distribution strategy.” Charlesbank recently acquired Rockport, bringing in industry veteran (and former Crocs exec) Gregg Ribatt to head the established footwear company. Ribatt said, “Reef is a powerful brand with deep authenticity and an incredibly loyal customer base. We are excited to work with the strong leadership team that has been guiding Reef through its brand evolution and resurgence. We believe in the team’s growth plans across consumer, product and geographic expansion.” Reef will operate as an independent global brand under The Rockport Group, and will maintain its Carlsbad, California, headquarters. The transaction, which is expected to close in October 2018, is subject to customary closing conditions and regulatory approvals for a closing to occur. Terms of the agreement were not disclosed.
"Employers must make hiring decisions based on an individual's qualifications rather than on generalizations, ignorance, patronizing attitudes or stereotypes," EEOC regional attorney Robert Weisberg said in a statement. "PacSun could have saved itself a lot of trouble if it had simply inquired into Mr. Sumner's ability to do the job instead of lying to him based on its prejudices." Source: Legal Newsline
RABBIT BARTHOLOMEW HONORED AT WATERMANS BALL Wayne "Rabbit" Bartholomew was given the Lifetime Achievement Award. A pivotal player in the birth of the world tour in the late '70s and early '80s, he later became the CEO of the ASP during the "Dream Tour" era. Rabbit was Introduced by Bob Hurley, who was wearing a T-shirt with Rabbit's likeness on it. Bartholemew talked about the early days of the tour and the goals yet to be reached.
FORMER VOLCOM EXEC JASON STERIS JOINS TROY LEE DESIGNS Jason Steris has joined the 30 year old mountain and dirt bike helmet gear company as its full time as Chief Executive Officer. Jason has served on TLD’s board of directors and brings with him both a wealth of industry experience and a deep appreciation of TLD’s brand heritage which will help take the business to the next level. Jason spent more than 20 years with Volcom and was instrumental in helping build the business into a premier global action sports and lifestyle brand. Steris began his career at Volcom in sales and served in various positions within operations, including Chief Operating Officer, before ultimately serving as Chief Executive Officer. “I’m excited for this new chapter at TLD. Getting to know the people here at Troy Lee Designs and understanding the business at the board level has been extremely helpful for me as I make the transition to CEO,” stated Jason. “Having a passionate and engaged founder like Troy by your side is a tremendous opportunity to remain authentic as we strive to be the market leader based on creativity, innovation and service.” “We are thrilled that Jason has agreed to partner with us as we continue to build this little helmet painting business I started in my parents’ garage over 35 years ago,” said Troy Lee, Founder and Chief Design Officer. He added, “Our customers love our culture and heritage, and with Jason onboard we look forward to preserving these parts of who we are, while adding his fresh perspective on how we continue our growth and bring more great products to market.” Source: Bike Retailer More About https://www.troyleedesigns.com
PACSUN ACCUSED OF VIOLATING AMERICANS WITH DISABILITIES ACT Retailer Pacific Sunwear of California (PacSun) is being sued by the U.S. Equal Employment Opportunity Commission (EEOC) for allegedly refusing to consider a wheelchair-bound applicant for a position at one of its stores. The EEOC alleges in its lawsuit filed in the U.S. District Court for the Middle District of Florida that PacSun violated the Americans with Disabilities Act (ADA) after a John Sumner, who was in a wheelchair, was told the store was not hiring. The store told other applicants without disabilities that multiple positions were being filled, according to the EEOC.
18/ Australian Surf Business Magazine issue #84
SHANNAN NORTH APPOINTED NEW SIMA PRESIDENT Billabong Global Brand President Shannan North will take on the role of president of SIMA, while SIMA board member, industry vet and founder and CEO of Stokehouse Unlimited Paul Naude will serve as Vice President. For the past three years, Rip Curl’s Kelly Gibson has served as president of the Board, after being elected by the membership. Gibson, who is stepping down from his role as Rip Curl CEO to pursue new opportunities, will also leave his post as SIMA president. SIMA’s board of directors said they were grateful for Kelly’s years of service, and that they wished him all the best in his new ventures.
North has served on the SIMA board for the past year as Vice President. North and Naude will join current board treasurer Ted Li of Quiksilver and board secretary Vicki Redding of Vans in rounding out the association's executive committee and leadership team. North has outlined SIMA’s key goals and objectives for 2019, which include Waterman's, Business Sustainability Alliance, the re-launch of SIMA Awards (details to be announced in the coming weeks), Float Collective, an overhaul of Surf Summit, consumer research/insights, Boot Camps, increasing the membership base and improving communication with members. To achieve these goals, SIMA plans to add more people to the board and reconfigure its committees to match the organization's objectives, according to an official statement on SIMA.com. More detail on the SIMA website at sima.com.
VONZIPPER WELCOMES JOSH HARTLEY VonZipper announced the addition of Josh Hartley as Global Design Director and Chief Officer of Product. “To be joining the VZ team at such an incredible time of evolution in our market could not be more appealing to me”, said Josh Hartley. “Designing eyewear is both romantic and technical at the same time. I enjoy the detail, the lack of boundaries and the inherent style that comes with the right frame. The future is bright, I can’t wait to get after it.” VonZipper founder and president Greg ‘GT’ Tomlinson said Josh is a great fit for the VZ team. “I have admired Josh’s creativity for quite some time, and truth be told, we’ve been talking about teaming up for what seems like ages”, said GT.
SURFING IS OFFICIALLY CALIFORNIA’S STATE SPORT Governor Jerry Brown signed legislation into law elevating the iconic California pastime to the official state sport. “It’s a big deal for locals,” said Isaac Gonzalez, 18, who works at the Santa Cruz Surf Shop. “Surfing is something they grew up on, spent their lives doing and are passionate about.” Unlike the years-long fight between Santa Cruz and Huntington Beach over the moniker “Surf City USA,” there was little debate about making surfing the official state sport. The bill, authored by state Rep. Al Muratsuchi, notes that the Golden State is home to world-famous surf spots Malibu, Trestles, Mavericks, Rincon, Steamer Lane and Huntington as well as the Surfers’ Hall of Fame, the International Surfing Museum, and the California Surf Museum. Santa Cruz was home to the late Jack O’Neill, who pioneered the neoprene wetsuit.
european news SALTROCK SURFWEAR SOLD TO CREW CLOTHING Leisurewear and accessories retailer Saltrock Surfwear has been sold to a subsidiary of Crew Clothing in a pre-pack deal under which 25 stores and 162 employees will be retained. Five stores of the Devon-based chain will close, and 29 redundancies have been made. David Pike and Mark Orton from KPMG were appointed joint administrators to Saltrock Surfwear last week and concluded a sale of the business and its assets to a subsidiary of Crew Clothing immediately on their appointment. David Butler, chief executive of Crew Clothing, said he was delighted to have acquired the “well-established surfwear retailer with a strong southwest presence”, protecting the brand and a significant number of current employees. “Through this transaction, we have now added Saltrock to our growing and successful business portfolio,” he said. “It presents us with a huge opportunity and allows us to maximise our supply chain and operations, giving great potential to the Saltrock brand. We welcome their employees to our team and we aim to make the transition as smooth as possible for them. “Saltrock has built a great foundation and we are excited to take it forward following a successful performance for Crew Clothing this fiscal year to date.” Joint administrator Pike added: “Following recent challenges the business has faced, and in line with current experience across the retail sector, the management team has worked hard to turn the business around and create a platform for Saltrock to thrive. “This has included them formulating their own rescue bid as part of the sales process. Against the continuing backdrop of retail turbulence, we are extremely pleased to have achieved the sale of this highly recognisable southwest brand. We wish the business well in its exciting next phase of new ownership.”
n.z news SURFING NZ CEO GREG TOWNSEND STEPS ASIDE By Derek Morrison
After 23 years of service, Greg Townsend has stepped down from the CEO role at Surfing New Zealand. Twenty years ago, I first met Greg Townsend – or GT, as he is better known – in Dunedin. An effervescent sort of character with an infectious energy, it turned out he'd recently rebranded the national association to Surfing New Zealand, which was restructuring. In the corner of his room, in a damp, draughty house in the elbow of Bedford Street, St Clair, he sat at a desk surrounded by walls covered with surf pictures, ideas, business cards and plans. Big plans. This was the raw, master plan for surfing's future and the assemblage of ideas and thoughts was clearly condensing into a kernel of direction in GT’s mind. GT was about to fire into life and take Surfing New Zealand to a whole new place. On the eve of his departure at the end of July we caught up with GT to discuss the slew of achievements spanning his 23-year tenure. Top of his list is that he stayed true to surfing.
"I stayed true to my friends and family throughout my time, through enjoyment, respect, passion, commitment and lifestyle," he offers. He said bringing and developing premier world surfing competitions to our shores meant the country received the respect that Surfing New Zealand and New Zealand surfing deserved. "I'm also proud we were able to create the necessary opportunities and stepping stones for our home-grown surfers to be competitive on the world stage, including founding and creating The Ultimate Waterman event with some of the biggest names in world surfing." He has a host of runs on the board in the competitive arena but stepped outside that in 2006, when he and the late Jonathan McCarthy organised the first National Surfing Environmental Hui in Raglan. "We formed The Surfbreak Protection society to protect and preserve our surfbreaks around New Zealand," GT smiles. GT, 54, is the longest running CEO at any sporting organisation in New Zealand. During his total 23 years of service, he has been the sport's guiding light. He has an ability to connect the corporate world with the grassroots of surfing and he does it in a way unique to him, endearing to those involved. Along the way, he's ruffled a few feathers and refused to back down on what he believes in, but few could deny he, and his team, have progressed the sport through the good times and shown resilience in the tough. He said it wasn't all plain sailing. He didn't enjoy dealing with the politics in the later years of his tenure. “Real surfers don’t get involved in petty politics and making personal attacks on good people who have contributed a lot to surfing over the years,” he asserts with a shake of his head. "And I didn't enjoy seeing surfers emerge who think surfing owes them something and want to be so-called ‘legends’." But by far one of the most difficult moments was when he had to lay off one of his best friends. "I had to lay off Steve Ria, due to a funding cut from Te Puni Kokiri," he offers. "Luckily, Steve is still a huge part of New Zealand surfing and Surfing New Zealand." Reflecting on the bright-eyed visionary I found in that cold Dunedin house in 1998, I ask him what the future now holds for surfing in New Zealand. "The surfing culture is definitely changing for the worse, with a general lack of respect and knowledge of surfing etiquette," he begins. "As for high-performance surfing, we are always going to be limited with the number of athletes who can make it on the world stage. The way it is structured now, with the decline in sponsorship dollars for athletes, to compete on the international qualifying series, it comes down to those who can afford it. But I believe one of these days New Zealand will crown a WSL world champion, be that a man or woman – I am sure of it." GT will continue to operate out of his home base in Raglan, but hints that Hawaii might also be in his future as he takes on his next challenge: taking The Ultimate Waterman global.
PHOTOGRAPHER CORY SCOTT BUYS NEW ZEALAND SURFING MAGAZINE One of the greats of New Zealand surf photography, Cory Scott, has taken ownership of New Zealand Surfing Magazine. The title has been produced consistently since 1985. Cory bought the title in June from Pacific Media’s Steve Dickinson. Cory has held the position of editor and chief photographer for the magazine since 2008. Previously to his role with New Zealand Surfing Magazine, Cory was the chief photographer and content director for Kiwi Surf and contributed to the Morrison Media stable of magazines in Australia. He held that position from 1995-2008. Cory, 43, said the decision to buy the magazine was an easy one. “It is my life,” he explained. “For the past 23 years, I have been immersed in surf publications. I’ve been working through the stepping stones of publishing and ownership was the next stone up.” Cory said he had been running the editorial and production of the magazine for the past seven years and felt he was ready for the next challenge. “I had tried to buy the magazine several times over the years,” he revealed. The magazine had always been proud to document all aspects of surfing in New Zealand. “I’m passionate about documenting surfing in New Zealand; the breaks, the athletes and the culture. I am excited to be able to continue the preservation of our unique surfing culture here in Aotearoa and archive that through the publication, and to continue to not only be the voice of New Zealand surfing but to offer and involve the surfers of our land, to share their voice as well.” Cory said he was heartened by the support he had from the industry, community and the readers of the magazine. “There has been a lot of humbling, positive feedback – I have received many phone calls, texts and social media and it has all been really very positive. As nice as it is to hear all these good things, now my challenge is to turn that into dollars and to sell magazines and ad space so I can continue to support the surf movement here in New Zealand.” Cory said the magazine had experienced encouraging growth in copy sales over the past few years. “That was a factor in my decision to buy it,” he admitted. “Possibly that feeling of print is making a comeback – it's unique content and it’s valuable to its reader.” As far as the future, Cory said readers should expect a revitalised focus on the design and content of the magazine. “We’re not planning to throw out the bathwater,” he shared. “The magazine is well liked so it will be more about refinements – cleaning up the design, the content and refocusing on the reader – the grassroots and the things we own: the unique stories from New Zealand surfing and surfers. People have a great deal of pride in the magazine and we just plan to build upon that.” NZSM Ownership Timeline 1985-1987
Doug Harris (Founder)
1987-1997
David Hall Publishing (David and Adele Hall)
1997-2006
Lifestyle Publishing (David and Adele Hall)
2006-2011
Kemalu Publishing (Luke and Kendal Millen)
2011-2018
Pacific Media (Steve Dickinson)
BACKDOOR CONTINUES ITS EXPANSION Despite admitting that the retail space was never short of challenges, Backdoor, Chief of Surf, Geoff Hutchieson, is continuing to grow the brand. Backdoor recently acquired Seasons Cheapskates, which has been operating for more than 20 years in New Plymouth. “We’ve got 15 stores at the moment, but that will be 18 by Christmas,” Hutch told ASBMAG. “We’re opening in Christchurch and also Kapiti Coast north of Wellington in October and taking on a store in New Plymouth in October as well.” Geoff, 55, said that not all the stores used the same model. Four of them were more hardware driven, which he called the board stores, and the rest were driven by apparel, but still had some hardware, especially soft boards. “We are shifting a bit further into more of a hardware focus for some of our stores,” Geoff explains. “Apparel is still around 50% of what we do though and that has shifted from 55% five years ago. Hardware has picked up that difference.” He said they used to do 5% of their turnover as snow, but that had “all gone to T7 now and we’ve abandoned it”. According to Geoff the biggest challenge right now was trying to work out what was going to happen with the Quiksilver Boardriders, Amazon and Billabong merger. Particularly what might become of the Amazon stores. That’s a question being asked by many right now. In New Zealand the shuffling has begun with long-time Billabong/Amazon Surf New Zealand general manager Jason Neely one of the first to exit the empire. Jason started as GM of the New Zealand operation in 2010 following a three-year stint as general manager of Australia retail for Billabong International from 2007-2010. David Keay, Head of Retail Australia and New Zealand for the Quiksilver Boardriders, Amazon and Billabong group, was asked for comment on the future direction of the company and brands but had not responded at time of deadline.
asia news
In the agreement, ASBmag has committed to publishing and sharing press releases, events, and breaking news from the ASC. In return, Asia’s premier surfing body will provide more visibility for ASB in Indonesia and throughout Asia – a region where the surf industry is growing each day. "Since rebranding under the ASC banner, led by Tipi Jabrik and Tim Hain, the Asian Surf Cooperative has been powering ahead and is rightly deserving its place on the global stage,” added Curtain. “With the return of the WSL World Championship Tour to Keramas and Bali this year, we see the region only continue to grow. For us, this opens opportunities for news, stories and events that are shaping the wider APAC region.” The Asian Surf Cooperative, formerly known as the Asian Surfing Championships and the Indonesian Surfing Championships, has grown exponentially in the past decade, ensuring the organisation and smooth operation of events spread out across the Indonesian archipelago and throughout the Asian region from Taiwan to India and points between. The group provides event management, live scoring, ISA certified judges, contest directors, digital photography and videography, event media packages, media coverage and distribution for events. “ASBmag has been an ardent supporter of the ASC (and the ISC before it) here in Indonesia for years now,” said ASC’s Tim Hain. “ASBmag has consistently published all of our press releases and kept up with the progress we've been making here in Indonesia and around Asia. They’ve always put us at the forefront of Australian and global media, so to officially join together as media partners is a natural union and a tribute to our fruitful and longstanding media relationship." Australasian Surf Business Magazine also noted that the partnership will help fill a need to embrace the people, the stories and events from the wider APAC region. Events that don’t always get the exposure they deserve. For ASBmag publisher Curtain, the decision to enter an official partnership is also personal. "On a personal level, I've had a connection with the region that stretches back to the early Bali Grommet titles almost 20 years ago. So, this partnership is an opportunity to give back to the Asian region, that's delivered incredible waves and memories over the years.”
ASBMAG OFFICIALLY PARTNERS WITH ASIAN SURF COOPERATIVE
ABOUT ASIAN SURF COOPERATIVE
Asia’s leading surfing organization, the Asian Surf Cooperative (ASC), and leading surf industry publication, Australasian Surf Business Magazine (ASBmag) have joined forces. ASC is the longstanding Asian institution responsible for organizing everything from local grassroots club events to high-level professional WSL surfing events. In the officialised partnership, the ASC will benefit from enhanced media exposure through several of ASBmag’s platforms.
The Asian Surf Cooperative is a professional surfing organization with 13 years of experience in the organizing, managing and supporting surfing events around the Asian region, from local boardriders club competitions to WSL World Championship Tour events, with the goal of growing the sport of surfing in the Asian region by offering reliable and consistent resources and assistance to all. The Asian Surf Cooperative provides event management, live scoring, ISA certified judges, contest directors, digital photography and videography, event media packages, rankings, media coverage and distribution, and also assists the ISA in organizing Surf and SUP Instructor and International Judging courses.
Keith Curtain, the Founder/Publisher of ASBmag, said he is proud to be a part such an important partnership. "ASBmag is a natural fit to partner with the ASC with our extended coverage of news, features and events in the region, that harks back to 2004,” said Curtain. “From our desk, few other media outlets can offer this reach both in print and online, and we're excited to formalise our 'Media Partner' status with the ASC."
More www.asiansurf.co
2018-Present Nowhere Man Ltd (Cory Scott) 19/
From Losmen to Luxury The top 20 travel Coâ&#x20AC;&#x2122;s changing the way we travel.
20/ Australian Surf Business Magazineâ&#x20AC;&#x192; issue #84
FEATURE ARTICLE / GUEST EDITOR – PHIL JARRATT
Since ASB first looked at the surf travel industry a few years ago, the whole thing has blown up in every conceivable direction, from a renewed interest in low-end losmen-style surf camps to luxe charters on boats with wine lists and personal videographers; from people who want to cross “learning to surf ” off the bucket list, to gazillionaires who are prepared to pay anything to fast-track the ultimate surfing experience. While not every agent or operator is making buckets of cash, the growth across all facets of the industry and of the demographic it now attracts is nothing short of phenomenal. Estimated at $250 million by World Surfaris founder Shaun Levings three years ago, industry insiders are now suggesting that global turnover is more like $500 million, with 6070 percent of that being funneled through the big agency aggregators. Levings, now enjoying semi-retirement following his sale of the business, and sometimes giving back through the Endeavour Foundation, agrees that if the learn-to-surf market is included, the global growth has potentially doubled. But these, of course, are whispers in the dark. In an industry born of secrecy bordering on paranoia, old habits die hard, and it’s probably harder today to get a surf travel executive to share his balance sheet with you than it was 20 years ago to get Martin Daly to show you marked charts of the Mentawais. And the paranoia extends to a reluctance of many agencies to share the business modeling and corporate philosophies that are available for all to see on their websites. At the same time, it’s becoming clear that surf travel branding is taking over where surfwear left off. Now that most of the big brands are coming out of the sausage factories of fund management, brands like World Surfaris, Waterways, Tropicsurf and LUEX in Europe actually mean a certain kind of surfing lifestyle to a lot of people, in a much more vivid sense than this season’s tee shirts or thongs. (You only need look at the most interesting ads in the consumer surfing magazines and websites to see that.) And yet the savvy agents and operators are well aware that, as with surfwear before them, big can become the enemy of cool, if you let it. Says Shaun Levings: “Back when World Surfaris first started, before the internet, I had worldwide exclusivity agreements with all our suppliers. I was their meal ticket, so I had an obligation to get bums in beds or on boats. My philosophy then was to sell a lot of a little, but that’s changed a lot now, and the agencies I’m looking at are selling a little of a lot. They’ve become aggregators of berths and beds and I think some of the personalized relationships between agent and supplier have gone.” In his heyday at World Surfaris, Levings prided himself on having the best analytical backroom in the (then fairly small) business, charting distressed inventory and putting it in front of the punter at the right price, because for the operator, then and now, holes in the schedule can mean the difference between turning an annual profit or not. But if a bunch of geeks in a backroom analyzing distressed inventory is all you’ve got, you’re not going to cut it in the modern surf travel game. So what is going on in surf travel? And why do so many of the major players keep their cards to their chests? The main reason for secrecy to the point of paranoia is that every agency clings to the sales pitch that they, and only they, can take you to the surfing nirvana of your dreams, where there will be very few Brazilians in the line-up, the water will be warm and clean and the beer chilled and constant. These days, if you want scenic beauty, local culture and other chick stuff, they will also guarantee that, as long as you swear an oath not to tell anyone how cheap you got your ikat or your authentic paddle for.
But the reality of this fast-moving industry is that the business model has moved in three distinct and quite disparate directions over the past decade and that the global aggregators cover about 80 percent of the market through the two biggest sectors. Let’s look at them individually. The first and biggest growth sector in surf travel is the learner market. While there are crossovers with the second biggest growth market, luxe, we’ll deal with them in a moment. Some industry purists will tell you that the learner market is not, strictly speaking, part of surf travel at all, but tell that to the biggest agents in Europe and they will say that they do not run surf schools, per se, while they laugh all the way to the bank. In Europe it’s obvious. Since the 1980s, when surf culture invaded pretty much all of the cool capitals of northern Europe, from Stockholm to Prague, Amsterdam to Berlin, everyone wanted to learn to surf, and you couldn’t do it at home. Hossegor had a dozen German or Dutch surf camps overnight, then 20, then 50. Further south, Portugal’s wave-rich coast from Figueira da Foz to Sagres was owned by German interests from May to October. Now the world has shrunk. Distance is no object and there are huge populations prepared to travel long distances to live the Corona ad. The major European agencies like LUEX are moving droves of learners to the Maldives, Indonesia, Central America and Australia’s Gold Coast – anywhere there’s a palm tree and a soft option surf break. The Chinese have discovered Hainan, the Russians Bali. It’s mayhem out there in the lineups, but the registers are ringing, cachink, cachink. The new century economic miracles have plenty of disposable income, but the catchment is as broad as it is weird, because as soon as they have learnt the basics, the Russians in particular, tend to become surf adventurers (once known as ferals, now intrepids), venturing to low rent surf camps in Java or Sumbawa. Their spend, often in black money split between their countrymen and local sponsors, is largely untraceable. The rapid and largely unstructured growth of the learner surf market in the developing world has also put the spotlight on another issue for the major agents and operators, one that some of them feel they can bypass by denying their involvement. But the fact remains that the proliferation of low-end surf camps in these places has created unimaginable crowd pollution and placed such enormous pressure on the infrastructure that you will more than likely have to crawl through a traffic jam to get there, and then find that the hot water and wifi are both down. Take Bali, for example. It’s now nearing half a century since Morning of the Earth sent my generation off on the grand trek, hungry for some of those crazy Ulu lefts and travelling affordably on a Jack DeLissa Bali Travel Service package – flight, losmen (including tea and banana breakfast), motorbike for 35 days for $400. Since those halcyon days, every decade has seen a tremendous growth spurt fueled by the surf boom, lining the pockets of the regional and Jakarta governments as well as a string of unscrupulous entrepreneurs, with the end result that the endless sprawl of the surf ghetto now stretches from the Bukit to Canggu, where the excesses of the industry can be seen daily as hundreds of learners on soft boards pick their way through the construction sites and filthy drains to cop a few soft bombs on the head.
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FEATURE ARTICLE /
We can’t entirely blame the surf travel industry for what’s happened in Bali, of course, but it’s fair to ask what is being done from within to prevent killing the golden goose right along the Indonesian archipelago, and in the Maldives and Sri Lanka, the Philippines and Papua New Guinea, and in Costa Rica and Nicaragua. The Maldives is another example of governments cashing in on the surf boom while the surf travel industry takes the blame for the repercussions. When Tony Hinde’s secret was finally revealed to the world, the Maldivian government protected its traditional villages by enforcing strict permit conditions for visits to many atolls. Then the treasury came up with the idea of a $US8 per head per night bed tax, and now the government is helping villagers to create homestays everywhere to maximize their take. At the high end of the surf travel spectrum, we have the luxe market, which is also a significant part of the learner market, at a higher and more traceable level. While many surf travel outfits aspire to this, the market is pretty much defined by Australia-based Tropicsurf, which operates out of nearly 20 luxury resort hotels around the world where their branded “surf shacks” offer one-on-one lessons, surf tours and advanced tuition, often in conjunction with health and wellness programs. While Tropicsurf chooses to remain discreetly silent about its operations, its brand statement, “the art of luxury surfing”, says it all. (A disclosure here: the author has been the editor of the Tropicsurf Annual since 2014.) The luxe market caters for the cash-rich, timepoor crowd – the stockbrokers and real estate magnates who either want to relive the good old days when they could catch a wave at their local break without being hassled, and they don’t care what it costs, or they are ticking the learn to surf box. This latter has actually created a sub-industry within surf travel, in which the best surf guides become attached to the richest learners for one-on-one lessons that can occur at a moment’s notice at the best break available anywhere in the world. If the surf travel industry is illogically secretive, try getting information out of the top-end surf guide sector! But guarding the privacy of your pet mogul is somewhat understandable when you consider that the very best surf guides – several of them Australians – are on lucrative retainers to keep an eye on global swell patterns and jump on a plane – pointy end, of course – to meet their fat cat clients anywhere from G-Land to Chicama. Typically, these clients have come to surfing late and with a passion. They want to surf really, really well by this time next year and will pay whatever it takes. The third growth market in surf travel is the most unlikely because a few years ago it looked like it was disappearing. Perhaps in response to the rapid growth at the high end, there has been a resurgence in the intrepid sector. Says Shaun Levings: “They don’t want to pay the big money, even if they have it, and they want the adventure of finding waves for themselves. I’m not sure that’s ever disappeared, but there are certainly plenty of surfers emerging now who prefer to do it that way.”
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Again, it’s difficult to measure the growth in the intrepid sector because typically they will make their own bookings, stay at village accommodation and take a local fishing boat to the break. The spend might be $2-3,000 for a week or so, compared with $6-8,000 for a Mentawais charter, but you can never track it. In order to assess the current state of the surf tourism industry, ASB sent out a short questionnaire to all the major players in Australia and a sprinkling of the most influential elsewhere. While some of the questions related to numbers and dollars, the covering letter stressed that agents and operators should feel free to answer as many or as few questions as they felt comfortable with. There were some interesting responses, some polite refusals to share trade information and some who simply didn’t respond. In fact, it was remarkably like trying to extract information from the marketing department of a surfwear company, which probably says a lot about where surf travel is heading. Nevertheless, through the questionnaires, several background briefings, the information already available to all through websites and blogs, and some old-fashioned dirty digging, ASB has been able to pull together a thumbnail sketch of the industry, presented in alphabetical order. Atoll Travel (Australia) This respected industry veteran was founded on the back of Ian Lyon’s friendship with the late Tony Hinde, who kept the secret of the Maldives for more than 10 years. Lyon first surfed Pasta Point and other breaks in 1984, when it was just him, Hinde and a few mates. By 1989 Lyon found himself working in the travel industry and in 1991 Hinde asked him to sell his part of Atoll Adventures. In 1996 the operation became the independent Atoll Travel.
An old schooler, Ian Lyon says he has “maintained a relatively limited product line for which most (clients) have been acquired through people known from my early travel years and early industry connections”. He says the business model has essentially remained unchanged: “We have a limited range of quality tour options, with staff providing personal service to clients. We are not the supermarket model with all destinations and options on the shelf.” Lyon says that Atoll’s customer base is drawn from the mid-to-upper economic group, professionals or self-employed, primarily in the age range 3565. Average spend is $5,000-$8,000, depending on location, length of stay and inclusions. The main tours of Atoll Adventures at Cinnamon Dhonveli (Pasta Point, Maldives), Nemberala Beach Resort (West Timor), Tavarua and Namotu (Fiji) and Kandui Villas (Mentawais) include all meals, surf transfer boats and crews, and surf guides (approximately four guides per 30 surfers). Atoll pioneered the concept of cheaper rates for non-surfer partners at Pasta Point, and now most of the land-based operators they represent offer the same. Ian Lyon worries about the future and takes sustainability very seriously. He says: “Overall most tour operators, surf resorts and charter boat operators are very conscious of environmental considerations, employing locals where possible and supporting local communities. Atoll Adventures in the Maldives only employs ISA accredited Maldivians as surf guides and local village island boat staff, some who have been with the company for 20-plus years. We also only use very experienced Maldivians as surf guides on the group charters.” Asked for his company’s mantra, Lyon is short and sweet: “Niche and specialist, customer service oriented, no extravagant marketing hyperbole.” www.atolltravel.com
Barefoot Surf Travel (France) Founded in 2011 by Gabriel Lanoix, this French agency offers trips to Ecuador, Nicaragua and Bali. Lanoix summarised Barefoot’s marketing position to Linked-In as “a surf travel company that believes in freedom, simplicity and delivering the most pure surf trips”. Lanoix tries to talk his way around it, but Barefoot’s purity is compromised somewhat by the fact that most of their business is in large groups of learners. He says: “In our opinion, surfing is the most beautiful and the most complex sport in the world. At first, learning how to surf and organizing a surf trip on your own is a difficult task. Language barriers, limited surf knowledge, or limited surf skills can ruin the experience. Barefoot Surf Travel was created with the idea of simplifying the surf journey without cutting out the adventure and the cultural experience that comes with it. This is why we organize surf trips in collaboration with local friends in each of our destinations. In addition to making your trip more authentic and culturally rich, it contributes to the local economy. We offer a whole group experience.” Elsewhere, Lanoix insists that Barefoot is not a surf school, but then adds: “We believe beginner and intermediate surfers should have the opportunity to experience new cultures, meet new people, and travel to amazing places, in addition to learning to surf with expert guides.” Barefoot’s main packages range from $1500$2500 plus flights. ClearWater Surf Travel (Netherlands) Founded by Edwin Stevens in 1992, this Dutch agency has moved from a basic Barbados offering operating a few months of the year to a full service travel company with a lot of business from the Euro learner market, for which it has developed shoulder season tours in the Maldives and Indonesia to provide more user-friendly conditions. Stevens says: “ClearWater Surf Travel is about finding the best resorts or boats and a wave in front of your door, with options to go to other spots. It’s not easy these days to find un-crowded surf but we can offer our personal advice and find you empty waves.” The ClearWater website promises “boardshort” surfing year-round, with seasonal adjustments for the needs of beginners and accomplished surfers alike. Freeline Indonesian Surf Adventures (Australia) The idea for Freeline Indonesian Surf Adventures (FISA) was formed during the Australian winter of 1991 when the first FISA tour arrived in Bali, en route to West Java, in early 1992. FISA was started with nothing more than a dream, and not much money either, by Kiwi expat Nev Hines, a long-time surfboard maker in New Zealand and Australia.
From a humble beginning offering a single West Java/Bali tour FISA has grown into a competent surf tour business that can take customers to pretty much anywhere in Indo from Aceh to Timor and also to non-surfing areas. Indies Trader (Australia) Commercially operational in Indonesia since the early 1990s, and in the Marshall Islands since 2010, Martin Daly’s iconic Indies Trader Group will always have a place in the heart of every core surf traveller. Daly now divides his year between his two bases, offering high-end surf trips to the Mentawais surf breaks he discovered 30 years ago, and a mix of dive and surf charters at his more recent base in the Pacific. LUEX (Germany) LUEX (or LineUp Explorers) is Europe’s biggest aggregator, largely thanks to the energy of founder and managing director Tim Heising, an MBA from Berkeley who used to work for Amazon. A seasoned surf traveller and skier, Heising started in 2009 with a very limited Maldives offering, but quickly grew and now represents operators around the world, with particular strength in Indonesia, Portugal, Sri Lanka, Morocco, and of course, the Maldives. For a company so large, LUEX’s mantra is deceptively and endearingly simple – Plenty Of Sick Trips. Heising was initially reluctant to share information but then weighed in with a string of one-word answers that at least gave us an inkling of his operations. Asked about his customer profile, he responded: “We concentrate on families, solo surfers, serious surfers, honeymooners and ultimate luxury travellers,” which pretty much covers it. In 2018 he expects to send “several thousand” on trips averaging out at around $2500, age range 30-60. The LUEX business philosophy is summed up in one word – “grow” – but at the same time, Heising sees the crowd factor as a threat to business. In a nod to sustainability, LUEX has recently instigated a carbon offset program. Nomad Surfers (Spain) Now based in Ibiza, Nomad is the brainchild of Madrid-born José Gutiérrez, who started running snowboard holidays in Switzerland in 1995 at the tender age of 18. Surf camps around Europe soon followed and the company moved its base to the Algarve in southern Portugal. Nomad now sells packages to 125 destinations around the world, and owns a number of surf camp operations, as well as franchising others under the Nomad banner. Nomad claims to sell more trips than any other surf travel agency, but the offerings are so diverse that it is difficult to compare with other surf aggregators. Nomad also sells teen camps, kite and windsurf trips, SUP, snow and anything else that vaguely fits into the adventure bag. But Gutierrez insists that surf is still the driving passion of the company. “Our mission is to share the stoke!” he says.
Pegasus Lodges (Australia) Founded in 2012 by former investment banker Ryder Thomas, Pegasus has grown from the one Telo Island Lodge to a string of locations around the world, from Aganoa Lodge in Samoa, to Nootka Island in British Columbia to a few other spots in Indo, and bringing Fanning Island online in 2019. Management staff now includes sustainability expert Juliette Budge in charge of operations at all lodges, Jay Masachi in sales, Kellie Papworth in travel logistics, and surf publishing veteran Gra Murdoch running branding and communications. Murdoch describes Pegasus’s point of difference as: “A network of modest-scale, quality-focused surf lodges scattered across the globe where customers can choose different adventures across a range of extraordinary and remote locations from year to year, being assured of consistent quality and service.” He also told ASB that while the demographic was too broad to categorise, Pegasus would have around 450 customers in 2018, with price points to suit all. Pegasus places a strong emphasis on health and safety. Says Murdoch: “All guides and hosts are rescue/recovery CPR trained. As we speak we’re hammering details down with a specialist consultant to review and workshop all Pegasus H & S practices and assets. We’re hosting a training workshop in the Telos when the season slows up.” And on sustainability: “Any surf destination enterprise is always hugely dependent on the goodwill of the community it sets itself into, and so Pegasus certainly isn’t unique in the way it constantly puts back into local communities. If we’re in the building phase of a lodge we use the materials and momentum we have on hand to construct or install things of lasting value in nearby villages – whether it’s plumbing, power, toilets, desks or whatever. That’s the start point of an ongoing obligation to community health and education contributions, donations and of course local employment opportunities. What Pegasus does is in line with many other operators, and we don’t make a big deal out of simply doing the right thing. We face the same environmental issues as all other operators, with varying degrees of success from property to property, and there are big improvements we can all make on that front.” www.pegasuslodges.com Pelagic Charters (Australia) While its entry may have come a bit later, the Pelagic, like Martin Daly’s Indies Trader, is based on old school surf exploration, catering for a maximum of eight surfers for 12-night Mentawais missions. Although major agencies such as The Perfect Wave in Australia, LUEX in Europe and Wave Hunters in the US now market and sell Pelagic, the boat has remained rootsy and core, with a high customer retention.
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The dream of surfers John Musser and Griff Alker, the Pelagic was designed and crafted at Fine Entry Marine shipyards in Western Australia in 2002. The result was a 65-foot, aluminium mono-hull vessel, outfitted for highspeed cruising, deft manoeuvrability, complete luxury and stalwart seaworthiness. It was one of the first boats purpose-built for surf exploration and has built its reputation largely by hosting surf star and media photo shoots.
Surf The Earth (Australia) This Gold Coast-based agency claims to be able to patch together “a hassle-free holiday with the least crowds and best waves. With luxury hotels, family friendly lodges, surf camps and boat charters throughout the world, we’ll put you in the line-up at the right time without the headaches of going it alone.”
Prices offered for 12-night trips range from $3333 (Perfect Wave) to $5500 (LUEX).
They offer trips in the Solomon Islands, Philippines, Bali Bungalows and Indo Getaways, Pacific Island Adventures and Fijian resorts.
Soul Surf Travel (Australia)
The Surf Travel Company (Australia)
“Leave a positive change behind” is the unlikely mantra of this global Australian-based aggregator. Not that aggregation is necessarily a dirty concept, just that its mass sales tend to contradict the ethos of “positive change”.
The Surf Travel Company, which makes the bold claim of having coined the phrase “surf travel”, was founded in 1987 by surfer Paul King and partner Therese Moran at Cronulla Beach, south of Sydney. In its early years, STC became the exclusive agent for Bobbie’s G-Land Camp, the world's first surf camp, and was the first travel company to commercially offer surf charters in the Mentawai Islands in the early ‘90s. Finding that the world offered great surf beyond Australia and Indonesia, STC also began opening up travel options to surf destinations such as Fiji, PNG, Samoa, Philippines, Hawaii, Sri Lanka and the Maldives. The company continues to package experiences to new and exciting surfing destinations.
But to be fair to SST, they seem to walk the talk, claiming: “Our mission is to give back to local communities, to minimise environmental impacts and to encourage a more sustainable model for surf tourism. Sustainable travel also means local communities benefit both economically and socially and that their cultural heritage is respected and protected while ensuring you enjoy a safe and rewarding holiday. By booking your dream holiday with us you are contributing to the wellbeing of our beaches, oceans and reefs as well as enhancing the lives of the local communities that inhabit these remarkable locations.” They go on: “You’ve probably heard the famous quote: ‘Take only memories; leave only footprints’. At Soul Surf Travel we believe we can go one better. We want our customers to return home buzzing on the perfect waves they scored, but also stoked on knowing they are part of a movement that is giving back, through our support of organisations like Surf Aid, Surfrider Foundation, 1% for the Planet and the Stoke Certified program.” They’ve recently roped the highly credible Tom Carroll in on some Indo-based programs involving surf fitness for older participants, so clearly, something is working for them.
The pioneer company has been through several changes of ownership since Paul King left but remains committed to providing authentic surf experiences around the world. Takeoff Surf Travel (Portugal) This interesting Lisbon-based agency has the mantra, “one destiny, many destinations”, but it offers the smallest number of options of all the European aggregators – Portugal (including Madeira and Azores), Maldives, Indonesia, Peru, Morocco, Sri Lanka and Angola. But through its travel partnership with the WSL for the Azores Airlines WQS event, Takeoff has built a reputation for good service and follow through at its limited number of destinations. The Perfect Travel Group (Australia)
Sumatran Surfariis (Australia) Chris (Scuzz) Scurrah is another old school Sumatran charter operator who has transcended the go-it-alone ethos to make his highly-praised charters available to a broader market. With three boats in service and 20 years experience in slipping away from the crowds, Sumatran is regarded as an operator that can put you in your dreamworld, even if it happens to be Burgerworld. Another plus for Sumatran is that the fleet is authentically traditionally Indonesian, with more than 30 locals on staff to complete the cultural offering. And when it comes to giving back, they have runs on the board. Says Scuzz: “We were the first charter company to provide relief to the locals after devastating quakes and tsunamis and we have adopted the island of Bawa, where our sustainable fruit and veggie garden is flourishing.”
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Better known as Perfect Wave, PTG started in 2007 as a partnership between founders Jamie Gray and Rhonda Burton, he a serial surf explorer and former restaurateur, she a highflyer with Flight Centre. It was a good match, and they did well from the get-go, but soon found that you can’t be all things to all people, so in recent times they have focused on Indonesia and the Maldives, where dreams can be pretty much guaranteed. According to Rhonda Burton, the key ingredient in the company’s success has been a hands-on approach from start to finish, ensuring quality control of operators and a risk-free environment for customers. PTG says its demographic is 25-65, with a significant minority of women. This seems to be borne out by the selection of hits and memories music acts, like Pete Murray and Tex Perkins, who have played live gigs at their destinations.
Through the company’s A Perfect Foundation, they have created the first education and conservation centre in the Mentawais, and are active in supporting local community groups. Tropicsurf (Australia) The unquestioned leader in the luxe market, Tropicsurf grew out of a Noosa-based surf school when founder Ross Phillips, a former bank johnnie, realised that he could turn people into competent surfers much quicker in a controlled environment of good waves. That pretty much remains the core ethos of the company, even as it expands its operations through the most luxurious beach resorts on the planet. Considering that Phillips is a smart operator, a personal friend and a part-time employer, I was a little surprised with his response to my survey request: “I’m kind of thinking that it’s probably not that smart for me to publish lots of hard-learned trade secrets.” However, he previously told ASB’s Jock Serong: “Ultimately, our clients are people who want the fantasy surf trip, the best accommodation, food, waves and safety. In the past, I’ve offered clients the opportunity to go camping and they generally don’t want to. They get attached to the luxuries. We do the philanthropic experiences for them, like supporting local villages, but I don’t think it’s a factor in their choice of travel provider. The same goes for sustainable practices. I went to a high-end experiential travel expo recently, and the consensus was that the availability of such things doesn’t make much difference to consumer choices in this sector overall. It should, but it doesn’t.” That was a couple of years ago, and I know that Phillips, a genuine philanthropist himself, has been fighting the good fight. But he doesn’t want to talk about it. He was, however, happy to lift the veil for Conde Nast Traveller recently as one of “50 people who are changing the way we travel”. WaterWays Surf Travel (USA) Another highly-respected veteran of the industry, founder Sean Murphy was also reluctant to discuss the operations of his business, wanting to know how the information would be shared between agencies and operators. Well, it will be published, duh! Maybe Sean, a great guy who I’ve known for more than 20 years, was having a bad hair day so we won’t allow that response to deprive ASB readers of the known facts. Which are that WaterWays was the first big international agency in the US when it opened in 1994. Murphy had a kickstart in the industry courtesy of his dad, whose Brendan Tours was doing good business. After dropping out of accountancy, Sean combined his numbers brain with the travel industry bloodlines and created a global agency that continues to offer first-rate service across virtually all the major destinations, plus a few secret spots.
Wave of the Day (Australia) Announced to the world by ASB earlier this year, Wave of the Day is a new discount surf travel specialist offering a new way to book surf travel online as the only website in Australia that focuses solely on discounted surf trips with top operators in Indonesia, the Maldives, Sri Lanka, Papua New Guinea, Fiji, Samoa, the remote Pacific and beyond. According to co-founder Chris Wright, the site is similar in concept to I Know The Pilot. “But we are way more hands on. We are not just a reference site as we are an agent for our operators and we host great deals for a lastminute trip. There are a few existing surf travel companies that have been around a while and definitely dominate the airwaves, but we feel that there is a lack of simplicity when it comes to booking discounted surf travel. Instead of representing or listing hundreds of operators, we only list the currently offered specials.” For every booking made, Wave of the Day donates $4 to their ‘Social Good’ fund supporting not-for-profits, such as Waves 4 Water and Suku Mentawai. Wavehunters Surf Travel (USA) Founder Henry Morales is one of the most respected surf travel agents in the world, with global hands-on experience of surfing the most remote locations, and an innate understanding of how to get people seamlessly to the best locations for their levels of skill. Fluent in Spanish and Portuguese, Morales is able to problem solve throughout the Hispanic world. World Surfaris (Australia) Founded by Shaun Levings in 1997, after he had served an apprenticeship in mainstream travel retailing and with Paul King, World Surfaris quickly became an industry leader because of Levings’ commitment to quality control and stock control. Offered partnerships in resorts and charter operations many times over, Levings always refused, explaining that he wanted to be the best agency he could possibly be, and that meant fairness to all through no commercial involvements. Levings created a broad platform from World Surfaris’ humble beginnings, particularly in moving into Papua New Guinea and branching into snowboard trips, but in 2014 he made the first step backward, selling half the business to John Finlay, with another half to follow in 2016. Finlay, a former customer with a solid business background, has put his own stamp on the business, but it remains true to Shaun Levings’ vision, to be the best and fairest agency on the park. www.worldsurfaris.com
FUTURE SHOCK One of the key questions that ASB threw out to the surf tourism industry was this: how are you addressing the problems of the future? Few bothered to respond in any meaningful way, but those who did posed more questions than answers. But with bigger and bigger aggregated agencies sending more surfers of every skill level out into the frontiers every year, we have to ponder, will the known surf locations handle the influx? Will the surfing experience be downgraded by sheer numbers? And most importantly, will the quality of life change for the developing world communities who host the influx? Ian Lyon (Atoll Travel) The number of surfers traveling internationally has increased exponentially since the 1970s from the traditional surfing nations to a much broader range. Surfing has spread to almost every first world country, adding significantly to the overall increase. Even nations with virtually no quality surf of their own are travelling in ever-increasing numbers. Some surfers of these nationalities, not having grown from decades of surfing culture and etiquette, compound issues of overcrowding at breaks. Progressive improvements in airline affordability and scheduling providing access to formerly isolated regions, the advent of quality surf resorts and charter boats to accommodate surfers with wives and families, have all resulted in many more surfers travelling to regions that few would access 20 years ago. Additionally, during the past two decades, the numbers of indigenous surfers in many regions has grown significantly, seeking their rightful enjoyment of the local surf resource but having to contend with excessive numbers of tourist surfers. The surf travel industry is collectively fuelling this growth, which despite the continuing increase in global surfing numbers, may see a market spread too thin in competing for the finite resource of the world’s surf breaks. So what is the answer? Possibly through recognition of surfing as “sustainable activity tourism” with regulation to preserve the quality of the experience for visitors and locals, and the preservation of the environment through management of the resource.
Shaun Levings ( founder, World Surfaris) When it comes to sustainability in surf travel, I think Papua New Guinea is a great model, and I take my hat off to Andy Abel and the Surfing Association of Papua New Guinea (SAPNG) for managing surf tourism so well there, with a levy paid by every surfer to the local communities for specific projects, and so they’ve all embraced it. Tupira Surf Lodge is a specific example of how successful that’s been. And Andrew Rigby and PNG Surfaris have also been an important part of that process. There are others, of course, who have played a big part in introducing sustainability programs, like Claude Graves at Nihiwatu on Sumba, and Mark Flint on Nias and SurfAid has done a wonderful job over the years through the Mentawais. I guess what you have to look at is the numbers of locals whose lives have been improved by surf tourism, who are able to send their kids to school and eat healthy diets. Rhonda Burton (TPG) It’s still such a young industry. The potential for growth is amazing. Learn-to-surf numbers are huge, but what I worry about is where are all these new surfers going to go as they improve? Are there enough waves in the world for them to remain uncrowded enough to still be enjoyable?
25/
VANS.COM/ULTRARANGE
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PROFESSIONAL EDITION CHRIS MATER, SURFING AUSTRALIA CEO.
THE FORMER RED BULL EXEC TALKS OLYMPICS, AND COMMERCIALISATION PL ANS. This article is online now for our PROFESSIONAL EDITION subscribers. Not a member? Subscribe today at ASBMAG.COM for less than $2 a week.
ASB MULTI MEDIA METER 2018
Print Media SURFERS Rank THE PRINT MEDIA METER SHOULD BE USED AS A GUIDE ONLY TO SURFERS’ AND BRANDS’ IMPRESSIONS IN THE FOLLOWING MAGAZINES OVER THE SAMPLE PERIOD OF JANUARY THROUGH UNTIL DECEMBER (2017) MAGAZINE COVER DATES. Magazines Tracks Magazine Australia’s Surfing Life Magazine Surfing World Magazine 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
30/ Australian Surf Business Magazine issue #84
Athlete
Total
Advertising
1
—
MICK FANNING
363.75
2
—
JOHN JOHN FLORENCE
204.75
3
—
CREED MCTAGGART
139.50
4
p
ANDY IRONS (RIP)
97.00
4
q
MASON HO
97.00
5
q
CRAIG ANDERSON
95.00
6
q
TAJ BURROW
86.00
86
7
p
JULIAN WILSON
82.00
82
8
p
MIKEY WRIGHT
68.00
9
p
GABRIEL MEDINA
57.25
Brand
Total
BRANDS Rank 1
p
BILLABONG
48.00
2
q
RIP CURL
47.00
3
p
HURLEY
42.00
4
q
ROCKSTAR ENERGY DRINK
38.00
5
p
QUIKSILVER
37.00
6
q
DHD SURFBOARDS
33.00
7
q
RED BULL
32.00
8
—
REEF
19.00
9
q
DRAGON
18.00
10
p
O’NEILL
15.00
325.75 20.25
184.5
1.25
138.25 97
35
62 95
68 10
47.25
Editorial 38
ASB MULTI MEDIA METER 2018
Social Media SURFERS Rank
Athlete
Total (millions)
1
p
GABRIEL MEDINA
8,030
2
p
KELLY SLATER
5,093
3
q
JOHN JOHN FLORENCE
1,938
4
p
JULIAN WILSON
1,418
5
p
FILIPE TOLEDO
1,350
6
p
STEPH GILMORE
1,220
7
q
MICK FANNING
1,074
8
p
JORDY SMITH
0.973
#SOCIAL MEDIA METER (ALPHABETICAL ORDER)
9
q
TAJ BURROW
0.669
NB NO TOTAL OR RANK DUE TO THE MIX OF GLOBAL AND REGIONAL SOCIAL MEDIA CHANNELS. SHOULD BE USED AS A GUIDE ONLY. TABLE CORRECT AT OCTOBER. TABLE REPRESENTS THOSE BRANDS ON THE PRINT MEDIA METER ONLY. NOT EVERY BRAND.
10
p
OWEN WRIGHT
0.646
Brand
Total (millions)
#SOCIAL_MEDIA_METER 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.
BRANDS Rank 1
p
NIKE
120.083
2
p
GO PRO
27.149
3
p
VANS
19.575
4
p
QUIKSILVER
8.811
5
p
HURLEY
6.418
6
p
BILLABONG
4.759
7
p
RIP CURL
2.787
8
p
NIXON
1.951
9
p
HUF
1.851
10
p
REEF
1.821
Lincoln Eather. Lincoln is co-founder of Empire Ave, an Australian-centric content platform whose core focus is on art, fashion and tech-product developments across contemporary mens fashion and beach lifestyle. Lincoln Eather is a branding, marketing and social media strategist known for creating renewed value, life and traction for brands that intersect function and lifestyle. Head over to #ASBMAG.com for full social media results and analysis.
31/
FRESH
C-SKINS WIRED 3MM SPLIT TOE BOOT Colourway: Black RRP: $99.99 Available: April Description: ‘Leave the old behind with Future Fit 3D’ - The all new Wired boot features ‘Future Fit 3D’, a new construction technology that enables the form of the boot to hug the contours of your foot for ultra sensitive board feel and increased warmth.
SALTY CREW TRADEWINDS SS TECH WOVEN Code: 21035021 Colourway: Teal RRP: $84.99 Available: February Description: SPF 50+ lightweight poplin with hyper dry fabrication. Printed body with classic hawaii print. Front left chest pocket with pocket flap closure. Internal neck salty crew branding.
VANS CLASSIC SLIP-ON CHECKERBOARD Code: VNA38F7U77 Colourway: Bleached Apricot/White RRP: $99.95 Available: September Description: The Classic Slip-On Checkerboard features sturdy low profile slip-on canvas uppers with the iconic Vans checkerboard print, padded collars, elastic side accents, and signature rubber waffle outsoles.
32/ Australasian Surf Business Magazine issue #84
SALTY CREW VANDAL CUSTOM 5 PANEL Code: 35035139 Colourway: Olive RRP: $39.99 Available: February Description: 100% Cotton unstructured hat with screenprinted graphic strap and buckle closure.
QUIKSILVER FEELING FINE SS Code: EQYWT03797 Colourway: Stormy See Feelin Fine RRP: $69.99 Available: January Description: Quiksilver has been embodying that philosophy for 50 years — but we’re not defined by a number. We’re defined by moments. Because all it takes is one single moment to define a generation, lure us into a life-changing adventure or re-write the rules of tomorrow. And all we are today is 50 years of now.
RIP CURL FLASHBOMB HEAT SEEKER ZIP FREE 3/2 Code: WST8PF Colourway: Black RRP: $699.99 Available: February Description: world’s warmest wetsuit just got warmer. Introducing the Heat Seeker featuring Flex Energy, a revolutionary neoprene that generates heat when you move.
ROXY HARBOR DAYS Code: ERJJK03254 Colourway: Blue Mirrage RRP: $149.99 Available: April
HYDRO FLASK 32OZ WIDE MOUTH (946ML) Code: W32TS306 Colourway: Olive RRP: $59.95 Available: Now Description: Made for long day trips or overnight excursions, this larger bottle makes staying hydrated a breeze.
RIP CURL SEARCH GPS 2 Code: A1144 Colourway: RRP: $399.99 Available: Now Description: Track Every Tide. Track Every Wind. Track Every Wave. The world’s best surf and tide watch is back with all new features and a sleek, smaller design.
O’NEILL WILTON JACKET Code: 5321513 Colourway: Stone Aztec RRP: $99.99 Available: March
GLOBE BAR SLING PACK Code: GB71939012 Colourway: Tiger Camo RRP: $29.99 Available: February Description: + 600D polyester. Tricot internal lined pocket. Adjustable shoulder strap. Mesh back stash pocket. Belt clip.
VANS ULTRARANGE 3D Code: VN0A3TKWUDE Colourway: Federal Blue RRP: $179.95 Available: September Description: An evolution of the original UltraRange, the UltraRange 3D pushes the level of comfort even further with its co-molded UltraCush Lite 3D midsole/outsole for the ultimate in lightweight comfort and cushioning, and its LuxLiner bootie construction for an elevated fit and ease-of-entry.
HYDRO FLASK 21OZ STANDARD MOUTH (621ML) Code: S21SX625 Colourway: Flamingo RRP: $49.95 Available: Now Description: The flagship of Hydro Flask's hydration series, this versatile bottle is the perfect go-anywhere companion.
PATAGONIA DIAMOND QUILTED BOMBER HOODY Code: 27610-INDG Colourway: Industrial Green RRP: $229.95 Available: March Description: Windproof and waterresistant full-zip hoody insulated with lightweight 80-g Thermogreen® 100% polyester (90% recycled) that stays warm even when wet.
GLOBE GOODSTOCK UTILITY JACKET Code: GB01837005 Colourway: Army RRP: $99.99 Available: January Description: The GS Utility is our well rounded nylon jacket with micro tricot body and pocket lining, taffeta sleeve lining, and double entry front pockets. The high-density shoulder print and branded Globe trims and hardwear complete this unique water resistant jacket.
OAKLEY LATCH BETA Code: OO9436-0354 Colourway: Olive Ink/Prizm Tungsten RRP: $214.95 Available: October Description: Latch® Beta is crafted with a handy kick-up latch feature that attaches to your shirt for easy storage, but with its bold lens shape and doublebridge architecture, we doubt you’ll take it off. This lightweight yet durable O Matter™ design is a fresh look that expands one of our most popular frame families.
GOPRO HERO7 BLACK Code: CHDSB-701 RRP: $599.95 Available: Now Description: Gimbal-like video that's insanely smooth. Smartcapture superpowers for the best, most brilliant photos automatically. Battle-tested and waterproof without a housing. This is HERO7 Black – the most advanced GoPro ever. PATAGONIA HI-LOFT DOWN HOODY Code: 84902-BCIB Colourway: Bunker Camp - Ink Black RRP: $379.95 Available: March Description: A warmer version of our classic Down Sweater, the HiLoft delivers exceptional comfort and warmth with a 100% recycled polyester ripstop shell insulated with 600-fill-power Recycled Down.
OAKLEY RIDGELINE Code: OO9419-0827 Colourway: Matte Black/Prizm Black Polarized RRP: $274.95 Available: October Description: Ridgeline takes on the angular styling of Oakley Double Edge, providing the ultimate in coverage for those with larger faces while interchangeable icons bring adaptability to the sharp look.
O’NEILL PSYCHO 1 ZEN ZIP 3X2MM Code: 4964OA Colourway: FE3 MNITEOIL/MNITEOIL RRP: $499.99 Available: February
GOPRO THE HANDLER Code: AFHGM-002 RRP: $49.95 Available: Now Description: A floating grip for handheld shots in and out of the water. Perfect for selfie, POV and follow footage.
33/
BUYERS’ GUIDE
WINTER 2019 WETSUITS
C-SKINS HOTWIRED 4X3 Colourway: Black RRP: $629.99 Available: April
VISSLA 3/2 HIGH SEAS DRAINER Code: MW32IHDR Colourway: Black Heather RRP: $369.99 Available: March
ROXY 3/2 POPSURF FZ GBS Code: ERJW1030347 Colourway: Black RRP: 399.99 Available: January
PEAK CLIMAX PRO ZIP FREE 3/2 GB Code: PS630M Colourway: Slate RRP: $219.99 Available: February
34/ Australian Surf Business Magazine issue #84
QUIKSILVER 4/3 HIGHLINE+ CZ Code: EQYW103059 Colourway: Black RRP: 599.99 Available: February
RIP CURL E-BOMB ZIP FREE 3/2 Code: WSM8RE Colourway: Black/Red RRP: $449.99 Available: February
BILLABONG 302 SALTY DAYS FULL SUIT Code: 6795830 Colourway: Palm Green RRP: $349.99 Available: February
PEAK X-DRY 4/3 GB Code: PS631M Colourway: Black RRP: $259.99 Available: February
PICTURE ORGANIC CLOTHING TOPOGRAPHIC WETSUIT 4.3 Code: MVT148 Colourway: Black RRP: $949.00 Available: Early 2019
RIP CURL FLASHBOMB HEAT SEEKER ZIP FREE 3/2 Code: WST8PF Colourway: Black RRP: $699.99 Available: February
C-SKINS REWIRED 3X2 Colourway: Black/Blue RRP: $399.99 Available: April
QUIKSILVER 4/3 HIGHLINE LIMITED Code: EQYW103074 Colourway: Black wash RRP: $499.99 Available: March
c-skins.com #slavetothesea
Introducing
DIAMOND FLEX NEOPRENE
sOlAR ENERgY sYstEm Our production facilities for ďŹ nished goods are equipped with solar panels on the roof top to provide green energy and make the production even greener.
DOPE-DYED YARN Dope-dying infuse dye pigments into molten plastic solution to produce colored yarns without the dyeing process. This saves tremendous amounts of water while reducing energy consumption and water pollution.
Weâ&#x20AC;&#x2122;ve been hard at work testing every combination of the very
REcYclED POlYEstER A wide selection of our fabrics are knitted with polyester yarn made from recycled plastic bottles. This helps reduce waste and material consumption at the same time.
latest in face fabrics, foams and internal linings and have arrived at what we believe is the most fluid neoprene on the market which still retains a robust flex memory. Dope-dyed for a clean, premium aesthetic and with partially re-cycled foam content without any loss
WAtER bAsED gluE The R&D team at SHEICO turned solvent-based laminating glue into water-based glue, eliminating harmful volatile organic compounds (VOCs)
in performance.
35/
BUYERS’ GUIDE
WINTER 2019 WETSUITS
RIP CURL WOMEN’S FLASHBOMB CHEST ZIP 3/2 Code: WST7ES Colourway: Coral RRP: 599.99 Available: February
O’NEILL SUPERFREAK FUZE 3X2MM Code: 4771OA Colourway: Black RRP: $329.99 Available: February
VISSLA 3/2 HIGH SEAS NO ZIP Code: MW32IHSF Colourway: Black RRP: $369.99 Available: March
PATAGONIA R1 YULEX FRONTZIP FULL SUIT Code: 88482 - BLK Colourway: Black RRP: $649.95 Available: March
PATAGONIA R1 YULEX FRONTZIP FULL SUIT Code: 88483 - BLK Colourway: Black RRP: $649.95 Available: March
JETPILOT X1 3X2 LS STEAMER GBS Code: JA19163 Colourway: Grey Heather RRP: $319.99 Available: March
O’NEILL DEFENDER FULL FUZE 3X2MM Code: 91041 Colourway: Abyss RRP: $329.99 Available: February
JETPILOT X1 2X2 SS STEAMER GBS Code: JA19164 Colourway: Grey Heather RRP: $299.99 Available: March
36/ Australian Surf Business Magazine issue #84
O’NEILL PSYCHO 1 ZEN ZIP 3X2MM Code: 4964OA Colourway: Midnight Oil RRP: $499.99 Available: February
PATAGONIA R2 YULEX FRONTZIP FULL SUIT Code: 88485 - BLK Colourway: Black RRP: $699.95 Available: 15th March
BILLABONG 302 PRO SERIES CZ FULL Code: 9795901 Colourway: Black RRP: $449.99 Available: February
BILLABONG 302 FURNACE REVOLUTION CZ FULL Code: 9795820 Colourway: Black Sands RRP: $349.99 Available: February
W H AT ’ S T H E N AT U R A L PROGRESSION?
Between a rock and a hollow place: Dan Ross in the split second before a set wave goes square at a remote North Atlantic slab. AL MACKINNON © 2018 Patagonia, Inc.
Newly reformulated Yulex® natural rubber, and now Fair Trade Certified™ We’ve been working with Sheico, the surf industry’s leading wetsuit manufacturer, to progress the materials that go into our Yulex full suits—making them stretchier and more comfortable while further reducing their environmental impact. With natural rubber from sources that are Forest Stewardship Council® certified by the Rainforest Alliance*, solution-dyed linings that use 86% less water compared to conventional dyeing, and water-based AQUAa™ glue that’s free from harmful VOCs, they’re also the world’s first Fair Trade Certified™ wetsuits. *85% Yulex natural rubber by polymer content, blended with 15% synthetic rubber
37/
BUYERS’ GUIDE
WINTER 2019 JACKETS / KNITS
THE CRITICAL SLIDE SOCIETY TORRENT JACKET Code: JK1818 Colourway: Mocha RRP: $149.99 Available: February
VOLCOM A4 BONDED ZIP Code: A5811900 Colourway: Black RRP: $150.00 Available: May
THE CRITICAL SLIDE SOCIETY LOS CAPTAIN JACKET Code: JK1817 Colourway: Fatigue RRP: $209.99 Available: February
PATAGONIA JACKSON GLACIER PARKA Code: 27910-NVYB Colourway: Navy Blue RRP: $599.95 Available: March
DC CREWKERNE Code: EDYJK03194 Colourway: Limoges (BSBO) RRP: $139.99 Available: February
VOLCOM HOMEWARD BOUND II Code: B0711979 Colourway: Vintage Black RRP: $100.00 Available: May
RIP CURL WINKI ¼ ZIP CREW Code: GFEHQ1 Colourway: Maroon RRP: $89.99 Available: April
O’NEILL WILBUR KNIT Code: 5321408 Colourway: Allsorts Stripe RRP: $89.99 Available: March
VOLCOM HERNAN JACKET Code: A1731700 Colourway: Black RRP: $150.00 Available: May
VISSLA BREAKERS - REVERSIBLE JACKET Code: M704IBRE Colourway: Khaki RRP: $199.99 Available: April
VOLCOM SET IN PARKA Code: B1511977 Colourway: Dark Camo RRP: $160.00 Available: May
RIP CURL SONA ANTI-SERIES JACKET Code: CJKEC1 Colourway: Washed Black RRP: $199.99 Available: May
38/ Australian Surf Business Magazine issue #84
RIP CURL DUKE COACH JACKET Code: CJKED1 Colourway: Maroon RRP: $139.99 Available: April
PATAGONIA DOWN WITH IT PARKA Code: 28439 – FGE Colourway: Forge Grey RRP: $399.95 Available: March
RHYTHM BRUNSWICK JACKET Code: APR19M-JK04 Colourway: Olive RRP: $139.99 Available: April
BILLABONG EAST SWEATER Code: 9595855 Colourway: Sand RRP: $89.99 Available: March
RIP CURL ANTI SERIES TIDE JACKET Code: GJKCH4 Colourway: Sea Salt RRP: $189.99 Available: April
O’NEILL WILTON JACKET Code: 5321513 Colourway: Stone Aztec RRP: $99.99 Available: March
GLOBE SLIP STITCH SWEATER Code: GB01733020 Colourway: Pumice RRP: $79.99 Available: March
PATAGONIA CLASSIC RETRO-X FLEECE VEST Code: 23048-PLCN Colourway: Pelican RRP: $179.95 Available: March
PATAGONIA LOS GATOS BOMBER JACKET Code: 25240 – DFTG Colourway: Drifter Grey RRP: $199.95 Available: March
DC GLYNROAD PH Code: EDYFT03430 Colourway: Black (KVJO) RRP: $89.99 Available: February
GLOBE FIELDER REVERSIBLE JACKET Code: GB01937015 Colourway: Black RRP: $199.99 Available: April
BILLABONG BARLOW MILITARY Code: 9596911A Colourway: Light Military RRP: $149.99 Available: May
QUIKSILVER SPRING ROLL HOOD Code: EQYFT03972 RRP: $79.99 Available: March
ROXY SPARKLE OBSESSION Code: ERJSW03337 Colourway: WBT0 RRP: $79.99 Available: April
REEF CROSSING HOOD Code: A3FBW Colourway: Bluestone RRP: $89.99 Available: February
BILLABONG ADIV SHORELINE FURNACE POP HOOD Code: 9585627 Colourway: Camo RRP: $89.99 Available: April 39/
RHYTHM CLASSICS HOOD Code: APR19M-FL03 Colourway: Washed Clay RRP: $99.99 Available: April
JETPILOT CORP HYBRID LADIES ZIP HOODIE Code: W19001 Colourway: Black/Frest RRP: $89.99 Available: March
RHYTHM POCKET KNIT Code: APR19M-KN02 Colourway: Kelp RRP: $99.99 Available: April
OAKLEY NORTH 10K VEST Code: 412538AU Colourway: Athletic Heather Grey RRP: $129.95 Available: February
QUIKSILVER HURRY DOWN Code: EQYJK03471 Colourway: Rubber RRP: $149.99 Available: April
PROTEST JUMPING Code: 3710282 Colourway: Moss RRP: $139.00 Available: January
ROXY SANDY DENIM Code: ARJJK03031 Colourway: Denim- BKP0 RRP: $149.99 Available: April
RHYTHM BEDFORD JACKET Code: APR19M-JK02 Colourway: Tobacco RRP: $159.99 Available: April
PROTEST PICCHU Code: 6613782 Colourway: Black RRP: $199.00 Available: January
SALTY CREW VANDAL SNAP JACKET Code: 20935028 Colourway: Navy RRP: $109.99 Available: February
PROTEST PHI Code: 3614082 Colourway: Dark Grey RRP: $99.00 Available: January
JETPILOT CORP LADIES PULL OVER Code: W19005 Colourway: Black/Tan RRP: $89.99 Available: March
JETPILOT MARTRIX MENS HOODIE Code: W19716 Colourway: Black/White RRP: $99.99 Available: March
BILLABONG VITAL CREW Code: 6585763 Colourway: Lilac RRP: $79.99 Available: May
JETPILOT DAGGER WEATHER JACKET Code: W19705 Colourway: Black RRP: $129.99 Available: March
BILLABONG DESERT CORD PUFFA JACKET Code: 6596894 Colourway: Taupe RRP: $149.99 Available: May
40/ Australian Surf Business Magazineâ&#x20AC;&#x192; issue #84
10
OIL SPILL MODELLING (DAY 120)
20
30
40
50
60
70
80
Percentage of Trajectories (%)
90
100
TA S M A N S E A
INDIAN OCEAN
CORAL SEA
INDIAN OCEAN
TIMOR SEA
G R E AT A U S T R A L I A N B I G H T
Winter oil spill modelling c/ The Wilderness Society/Laurent C.M Lebreton MSc (Artist’s impression)
Big Oil does not belong in the Great Australian Bight. BP, when applying to drill for oil in the Bight in 2016, stated in their confidential environment plan that an oil spill in the Bight and the resulting clean up would provide a “welcome boost to local economies.” Even after destroying the coastline and the lives of local communities, they were still thinking in terms of dollars. Unfathomably, the Australian Government granted the first exploration permits in the Bight less than a year after BP’s Deepwater Horizon rig had exploded in the Gulf of Mexico, laying waste to the Gulf coast. The same company was now granted permits in waters twice as deep, waters open to the full force of the Roaring Forties, and waters home to one of the world’s last great pristine marine ecologies. What could go wrong?
Independent modelling showed a worse case oil spill in winter would spread along the South Australian and Victorian coasts, circumnavigate Tasmania, before making its way up the Eastern Seaboard. There would be oil on beaches for years at Cactus, Bells Beach, Shipstern Bluff and everywhere in between. Marine life would be devastated. Communities would be devastated. It would be Australia’s own Deepwater Horizon. The Fight for The Bight is at a crucial point. After passionate opposition BP has pulled out, but now Equinor, a Norwegian company are planning to drill next year. If Equinor can be stopped there’s a real chance the Bight can be kept free from Big Oil for good. The Bight locals have taken the fight to Big Oil. It’s time for surfers around Australia to join the fight for the Bight.
TAKE ACTION patagonia.com.au/bigoildontsurf
BUYERS’ GUIDE
FOOTWEAR
GLOBE DOVER EXPLR Code: GBDOVEREX Colourway: Black/Dusty Olive/Polartec RRP: $149.99 Available: March
REEF VOYAGE BOOT Code: A3627 Colourway: Grey/Gum RRP: $159.99 Available: February
DC VANDIUM SE Code: ADJS200026 Colourway: White/Black RRP: $149.99 Available: February
DC KALIS LITE Code: ADYS100291 Colourway: Black/Athletic Red RRP: $129.99 Available: February
REEF DISCOVERY LE Code: A3OLS Colourway: Brown RRP: $129.99 Available: February
RIP CURL LA JOLLA Code: TGLAG1 Colourway: White RRP: $79.99 Available: Now
RIP CURL RC CLASSIC SHORT UGG Code: TUCAF2 Colourway: Chestnut RRP: $149.99 Available: April
ROXY JUNEAU Code: ARJB700584 Colourway: Black RRP: $139.99 Available: Now
RIP CURL RC CLASSIC MID UGG Code: TUCAF3 Colourway: Chestnut RRP: $169.99 Available: April
42/ Australian Surf Business Magazine issue #84
ETNIES JOSLIN (CHRIS JOSLIN PRO-MODEL) Code: 4101000484-590 Colourway: Black/Brown RRP: $119.99 Available: March
REEF IRIS Code: A3FEA Colourway: Black/White RRP: $79.99 Available: February
ETNIES ALTO WOMENS Code: 4201000328-260 Colourway: Tan RRP: $89.99 Available: March
DC VANDIUM SE Code: ADYS200067 Colourway: Grey/Grey/Black RRP: $159.99 Available: February
ETNIES LO-CUT 2 LS Code: 4101000365-153 Colourway: White/Navy/Gum RRP: $99.99 Available: March
DC KALIS LITE Code: ADJS100081 Colourway: White/Red RRP: $99.99 Available: February
ROXY RAINIER II Code: ARJB700582 Colourway: Tan RRP: $179.99 Available: Now
REEF VOYAGE LOW Code: A3KJ2 Colourway: Tobacco RRP: $149.99 Available: February
VANS CLASSIC SLIP-ON CHECKERBOARD Code: VNA38F7U77 Colourway: Bleached Apricot/White RRP: $99.95 Available: September
GLOBE OPTION EVO Code: GBOPTIONE Colourway: Blue/Grey/Black RRP: $119.99 Available: March
RIP CURL ROAMER KNIT Code: TCLCF9 Colourway: Black/Camo RRP: 119.99 Available: Now
VANS ULTRARANGE 3D Code: VN0A3TKWUDE Colourway: Federal Blue RRP: $179.95 Available: September 43/
ActionWatch INSIGHTS ANALYSIS OF SALES GROWTH, PRICEPOINTS AND WATCHES
ActionWatch Insights is only a snapshot of top line results from our ActionWatch Oz Retail panel. For comprehensive brand, style and category reports contact keith@actionwatch.com
INSIGHT DATA FOOTWEAR AVG $ PER STORE
PERCENT OF FOOTWEAR REVENUE
JULY 2017 – JULY 2018
JAN 2018 – JULY 2018 Shoes
Sandals
$25K
Male $20K
Shoes Sandals Other footwear
$15K
$10K
$5K
Female Shoes l1
8
Sandals
Ju
18 n Ju
18 ay
b
18 M
Ja
Fe
18 n
17 c De
ov
17
7 N
7
t1 Oc
t1 Se p
17 g Au
Ju
l1
7
0
Other footwear
Sandal sales volume varied much more than shoe volume with a low of $1,434 in June and a peak of almost $22,000 in December.
SANDALS (WOMEN)
SHOES (MEN)
JAN 2018 – JULY 2018 (BY PRICE RANGE)
JAN 2018 – JULY 2018 (BY PRICE RANGE) $120+
$45-50
$110-120
$40-45
$100-110
$35-40
$90-100
$30-35
$80-90
$25-30
$70-80
$20-25
$60-70 $50-60
$15-20
$40-50
$10-15
$30-40
$5-10
$20-30 0
5
10
15
Price Point (%)
Nearly all of women's sandals sold YTD in 2018 were priced under $50 and the peak price point was $25-$30, followed closely by the $15-$20 and $35-$40 as well as $40-$45 price ranges.
44/ Australian Surf Business Magazine issue #84
20
0
5
10
15
Price Point (%)
The peak price point for men's shoes was $80-$90 during YTD 2018. Over 60% of men's shoes were sold in the $70-$100 price range.
20
-50%
0
The whole wetsuit category combined declined -10% in the January through July time period compared to those same months last year. Year-over-year sales declines of full wetsuits, the largest wetsuit category, could not be off-set by significant growth in some of the smaller classes.
Full wetsuits accounted for more than 50% of total wetsuit category sales in the latest 7 months while rash guards made up about 20%.
WETSUIT CATEGORY BY GENDER
SPRING WETSUITS BY PRICE
JAN – AUG 2017
(SHORT LEGS, SHORT SLEEVES)
Male
NEOPRENE TRUNKS
GLOVES
SHORT JOHN WETSUITS
WETSUIT HOODS
WETSUIT VESTS
$5K
L/S SPRING WETSUITS
$10K
S/S FULL WETSUITS
RASH GUARDS
BOOTIES
GLOVES
WETSUIT HOODS
-40%
SPRING SUITS
-30%
SHORT JOHN WETSUITS
-20%
WETSUITS
-10%
JACKETS
$15K
0
BOOTIES
10%
$20K
SPRING SUITS
20%
$25K
RASH GUARDS
30%
$30K FULL WETSUITS
40%
L/S SPRING WETSUITS
S/S FULL WETSUITS
50%
NEOPRENE TRUNKS
JAN – JULY 2018
WETSUIT VESTS
JAN – JULY 2018 vs JAN – JULY 2018
WETSUIT JACKETS
AVG $ SALES PER STORE
FULL WETSUITS
WETSUIT SALES GROWTH
$0 – $100
Male
$100 – $200
Female
$200 – $300 $300 – $500
A little more than a quarter of ActionWatch panel members' wetsuit category sales came from female-specific items during the last 7 months.
The price point growth shifted from the higher $200 to $500 ranges in 2016 to the below $200 ranges in 2017 to the below $100 ranges in 2018.
FULL WETSUITS
TOP WETSUIT STYLES
UNIT SALES AND AVG UNITS IN INVENTORY PER STORE
JAN 2018 – JULY 2018 (IN ALPHABETICAL ORDER)
250
TOP 10 STYLES Avg Inventory
200
Avg Unit Sales
O'Neill Wetsuits - EPIC 3/2 O'Neill Wetsuits - EPIC 4/3
150
O'Neill Wetsuits - REACTOR 3/2 O'Neill Wetsuits - SUPERFREAK 3/2
100
50
0
Rip Curl - DAWN PATROL 3/2 BZ Rip Curl - FLASHBOMB 3/2 GB CZ Rip Curl - FLASHBOMB 3/2 GB ZF Rip Curl - FLASHBOMB 4/3 GB Rip Curl - FLASHBOMB 4/3 GB CZ
The number of full wetsuits carried in the average store on the panel dropped throughout the course of the year and in July 2018 the inventory was less than 50% of the July 2017 inventory.
Vissla - 7 SEAS 3/2
45/
FEATURE ARTICLE /
First look at Rip Curl’s kinetic energy wetsuit SINCE ITS INCEPTION IN 1969, THE RIP CURL WETSUIT TEAM HAS WORKED WITH ONE MISSION IN MIND – “TO MAKE THE ULTIMATE SURFING WETSUIT.” With that single line as a guiding light Rip Curl have continually pushed the boundaries of wetsuit technology, and have never stopped challenging the status quo. The company prides itself on bringing new quality technologies to the marketplace, and it’s with that in mind they’ve introduced the newest Flashbomb Heat Seeker, incorporating kinetic energy materialisation. Developed with a new level of innovation and technology, Rip Curl says the Heat Seeker is about to change the wetsuit game. The model has already debuted in the USA and will land in Australian stores next February ready for the Autumn 2019 season. “The key quality of the Heat Seeker is a material called Flex Energy,” says Cameron Lamperd, Rip Curl’s Wetsuit Chairman. “We had the Flashbomb Plus and it was the ultimate combination of warmth and performance, but we wanted to make it even better. That’s when we found Flex Energy.” Rip Curl says Flex Energy is a revolutionary neoprene lining that generates heat when stretched. As you move through the water, the Flex Energy activates and heats the wetsuit while you paddle or surf. If you stay active, you stay warm. “The Rip Curl Wetsuit development team were excited by early results in the Flex Energy project,” Cameron continued. “That was about three years ago, and after multiple iterations of adapting the technology we finally got it right. We’ve tested this suit all over the world, from the bottom of New Zealand to the north of Scotland and the coldest beaches in the United States of America. The Heat Seeker is made by surfers, for surfers, and we’ve put it to the test.” In the past, wetsuit warmth has typically come from the insulation of neoprene; the thicker the wetsuit, the warmer it has been. Flex Energy lining changes that formula. The material actually generates heat and now contributes to the surfer’s warmth. “It’s an entire shift in the science of wetsuits,” Cameron says. “And Rip Curl will continue to develop the scope within this field in our continued mission to create the ultimate surfing wetsuit.” Rip Curl said they are thrilled to get this technology into the market, and excited to see where this innovation can lead.
46/ Australian Surf Business Magazine issue #84
ASBMAG caught up with Rip Curl’s Wetsuit Chairman, Cameron Lamperd, for more on the Heat Seeker. Is the 'Flex Energy' fabric proprietary to Rip Curl? Rip Curl has negotiated an exclusivity on the Flex Energy material as part of the development of the technology into surfing wetsuits. Could you explain some of the science behind the fabric? Flex Energy generates heat when stretched. As you move through the water, the Flex Energy lining will activate and heat your wetsuit. Stay active, stay warm. It utilizes a revolutionary material that provides kinetic energy to actually generate heat. Other than with the Rip Curl H-Bomb Heated Wetsuit, surfers have relied on features that were designed to purely retain surfer heat. The Flex Energy generates heat through movement and provides warmth to the surfer. If a surfer is inactive, do you get cold? The Flex Energy generates heat through movement as the surfer paddles and surfs. If the surfer is inactive they will be relying upon the regular insulation performance, fit and sealing of the wetsuit.
Does the Flex Energy material mean suits will be thinner and therefore more flexible The results from our test pilots and team riders all around the world is that they are far warmer in the Heat Seeker than in an equivalent thickness wetsuit. The Flex Energy combined with 100% E5 Flash Lining and Liquid Mesh are providing the most advanced combination of cold water technology that you can get. Surfers who would have normally worn 4/3s through Winter have been very comfortable in 3/2â&#x20AC;&#x2122;s... so it is a very warm suit.
We will only release wetsuits to market once they have completed and passed our stringent product testing program and comply with our performance standards. Tests include a range of in-house laboratory testing to benchmark the key performance benefits of a material relative to current standards and then from there we move into in-surf testing where we put suits through many thousands of hours as we fine tune the product design and test for durability. What is the RRP$ A Heat Seeker 4/3 will RRP for $699.99 and a 3/2 will be $479.99
How do you determine when a product is right to go to market? Rip Curl prides itself on the quality of product that we deliver to the market. Products must perform for the surfer in the manner that it was designed and nothing pleases Rip Curl more than introducing new technologies or intellectual property like Flex Energy that improves the function and performance beyond current standards.
47/
FEATURE ARTICLE / WORDS BRIAN WALKER
TALKING SHOP – THE RETAIL DOCTOR
Amazon disruption through the eyes of consumers Exclusive research by Retail Doctor Group Consumer Insights Division September 2018. Retail is being disrupted! And consequently consumer expectations are being reshaped.
Showing that they are here to stay and mean business.
Isn’t it fascinating that the world’s largest accommodation provider doesn’t own a room, or that the world’s largest retailer doesn’t own a shop (for the time being) and here we have the world largest taxi company that doesn’t own a taxi.
In the last 12 months RDG Consumer insights division have conducted research into consumer and retailer behaviours both pre and post the launch of Amazon.
Based on a 30 day timeframe, 70% of Australians searched online for a product or service to purchase. Online retail continues to grow in Australia with an estimated worth of $22.1 billion last year, a 7% increase on the year before. 40% of consumers used their phones last year to search for what they wanted, compared with 36% in 2014, according to research by Accenture. New entrants are challenging traditional players and re-shaping consumer expectations causing disruption in the retail sector, playing on the gaps in the current market. Meaning consumer understanding has never been more important Amazon is changing the consumer landscape in the US with the purchase of Whole Foods, Amazon Prime and Alexa and has now reached Australia to challenge the retail Status Quo. Since launching in December 2017 Amazon has increased its service offering adding; • Music Unlimited, • Amazon Echo (Its Artificial Intelligence home system, Alexa), • Amazon Prime (a subscription service containing music, TV, games, books and unlimited deliveries for as low as $4.99 per month), • Amazon Prime Day (One of its most successful prime day launches worldwide) • Additional warehouses
48/ Australian Surf Business Magazine issue #84
Utilising this research to understand consumers drivers, barriers and predicted behaviour we can assist retailers to improve their offering to build their consumer loyalty and engagement. What did we learn? • Pre-launch of Amazon 97% of retailers predicted that their consumers would start shopping on Amazon and 74% predicted their consumers would spend less with them however only 22% of consumers stated they would definitely start shopping on Amazon. Showing there is a big discrepancy in retailer consumer understanding. • Amazon came from a strong start with 37% of consumers already shopping on Amazon for either books or via the American website. • Since its launch consumer awareness of Amazon Australia has increased with 30% of Australian consumers having shopped on Amazon.com.au • Post launch Amazons image took a drop with consumer perception of value for money, good quality and reliability dropping. • Consumers were looking to Amazon to provide a wide rage, value for money, convenience, fast and efficient delivery.
• Some of Amazons key categories have seen significant success since the launch. Notably Electronics, Fashion, Accessories, Homewares and Toys. With Awareness and purchase increasing. • Since Amazons launch 56% of retailers have changed the way they work most notably strategy development has increased showing the increased need to have a clear directional plan for your business and key steps to achieve this. • There has been a positive effect of Amazon Australia launching with some retailers reporting an increase in online sales as a result coming from the changing behaviours of consumers. So what can retailers do to compete? Retail Doctor Groups Business Fitness™ Tips include; • Understand your consumer – listen to them rather than company concerns • Identify your consumer journey, map your consumer touchpoints and how you interact with them at each one and determine if this in inline with your strategic positioning and consumer needs. • Predict your consumer behaviour rather than be reactive. • Identify your brand strengths • Understand your consumers desired retail experience. • Build consumer trust in your brand.
• Brand trust was an issue for consumers, understanding how to build consumer trust with your brand is key. • Amazon's strategy is largely based around the Prime offering. Which is currently still confusing to consumers with 47% not knowing what Prime is.
Happy ‘Surf ’ Fit for Retailing. Brian Walker is Founder and CEO of Retail Doctor Group and can be contacted on (02) 9460 2882 or brian@retaildoctor.com.au.
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