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Australasian Surf Business Magazine May

2017

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FEATURE ARTICLES: Bowen Out West / Talking Shop / Buyers Guide – Eyewear – Hardware – Summer Wetsuits.

#77

I N STO R E N OV E M B E R

F E AT U R E S • • • • •

O N E TO U C H AU TO -S E T T I D E & T I M E 1400 P R E- P R O G R A M M E D T I D E LO C AT I O N S L I G H T W E I G H T T I TA N I U M C A S I N G R E C H A R G E A B L E B AT T E RY S AT E L L I T E LO C AT I O N T E C H N O LO GY

JULIAN WILSON HOLBROOK - SAPPHIRE FADE W/ PRIZM SAPPHIRE POLARISED

CONTENTS

ISSUE #77 MAY

inside this issue

contents 10

Industry News

Surf into summer.

18

Feature Article

Welcome to our surf hardware, wetsuits and eyewear issue. We call it our ‘Surf Into Summer’ issue and the name itself comes from one of my all-time favourite surf movies by Billabong. To get us into the swing of this issue, we had the movie going left of screen throughout the entire production of this magazine.

22

Interview

BOWEN OUT WEST

It always seems at odds that we are talking about summer, whilst were slipping into 4/3 wetsuits and the depths of winter.

CRAIG ‘SCAT’ PITCHERS

26

Media Meter

28

Fresh

30

Buyers’ Guide

34

Buyers’ Guide

36

Buyers’ Guide

42

ActionWatch OZ Insights

From what we can tell, it hasn't been a great start to the season, with a significant sales drop on our ActionWatch Panel in March. Only nine stores had a sales increase over March last year and they were all fairly small increases: all other stores were in decline. Check out ActionWatch Insights for top-line market reports into the surf hardware, sunglasses and eyewear categories.

It’s not often, but occasionally we miss news, and I guess top of mind was the sale of Surf Hardware International to Gowings. You’ll remember FCS went to SurfStitch not so long ago and the transaction took place months ago, but we’re just catching up with that this issue. A reminder that if you've got news, you can always drop us an email or call us anytime.

EYEWEAR

Last (but not least) a shout out to Wayne Bowen and the team at The Surf Boardroom in WA for taking the time to talk to Jock Serong for our feature and cover. In case you’ve missed the theme, this issue is a continuation of our exploration of ‘core stores’ around the country. We admire the dedication, tenacity and the survival instincts of EVERY core surf shop in Australia, and if we haven’t caught up with you yet, we hope to in the very near future. Sometimes it’s just a case of writing to us and telling us your story or milestone.

WETSUITS

HARDWARE

Good luck to all the brands at the SBIA Awards later this month.

Full coverage next issue…

Kick back, grab a (not so) quiet corner of the store and enjoy.

44

Faces in the Lineup

46

Talking Shop

Keith Curtain Publisher

THE RETAIL DOCTOR

PUBLISHER ASB is published six times a year

by Australian Surf Business Pty Ltd ABN 38 109 415 983

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Email info@australiansurf.biz

CREATIVE

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

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ACCOUNTING & FINANCE Crowe Horwath www.crowehorwath.net/au/ ACTING EDITOR editorial@australiansurf.biz ADVERTISING Keith Curtain 0417 747 855 sales@australiansurf.biz QLD & NZ GREG SCOTT +61 (0) 407 577 997 sales@australiansurf.biz

16 “See, in order to fund our trip, I’d had to sell all my stock (at the top of the market), and my stockbroker said “Wayne, you picked it.” But I told him “Nope, I just went on holidays.”– Wayne Bowen

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FASHION CO-ORDINATOR Fiona Hampson fashion@australiansurf.biz

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

by ASB for the accuracy of advertisements or information within the publication.

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

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

SUB EDITOR Jock Serong

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INDUSTRY NEWS

brand news FCS TO GOWINGS

In a live scientific trial conducted in June, the University of W.A says it took on average, 400% longer for sharks to engage with patterned wetsuits that contained the Shark Mitigation System’s technology when compared to an ordinary black wetsuit.

We missed this last issue, but SurfStitch has taken another step in overhauling its ailing retail operations with the sale of Surf Hardware International for $17 million.

Chairman Sam Weiss said the sale of Surf Hardware International, which was profitable, is another step in the group’s renewal process.

The trial result, which may very well spell the end of the era of the black neoprene wetsuit, showed that it took an average of 90 seconds for the sharks to engage with the black neoprene wetsuit but took an amazing 5-6 minutes for them to engage with the wetsuit that contained Shark Mitigation System’s disruptive patterns.

“Whilst SHI is a sound business, operated by a passionate team with an outstanding knowledge of their category, it is appropriate to free up funds that are better utilised in our e-commerce businesses,” he said.

The deal with Rusty will use those same patterns on their surfboards during the manufacturing process, potentially giving surfers some piece of mind when hitting the waves.

Chief executive Mike Sonand said SHI was not a strategic fit and the sale is a good outcome for Surfstitch. The sale to investment group Gowing Bros comes 13 months after SurfStitch splashed out $23.7 million on SHI, which owns FCS, Gorilla, Hydro and Softech.

“Rusty’s surfboard roots are part of their DNA. SM8’s partnership with this core surf brand confirms that Rusty continues to be an innovator on the global surfboard stage.

With a rich history in Western Australia, the brand is all too familiar with the need to reduce the personal risk of shark attack for surfers across the globe,” said Shark Mitigation’s Technology General Manager, Simon O’Sullivan.

At the time of the deal, SurfStitch said SHI’s product range would give the company greater exposure to the action sports hard goods market, one of the group’s fastestgrowing categories.

As a result of the sale of SHI, SurfStitch is now forecasting a bigger than expected underlying loss of $4 million to $5 million.

The group had previously forecast an annual underlying loss of about $2 million to $3 million, which included SHI’s forecast earnings of about $2.2 million for the seven months ended June 30, 2017.

Prior to SurfStitch’s recent ownership of SHI, Gowings was a shareholder in SHI through its private equity investment with Crescent Capital for nearly 10 years. Over that time, Gowings developed a good understanding of the business and has followed the growth of the company.

Commenting on the acquisition, Managing Director John Gowing said, “SHI is a unique Australian business in a niche industry in which Australians have both a strong presence and competitive advantage. The SHI business, which operates largely as a standalone entity, will make a good fit within the Gowings investment portfolio.”

Gowings General Manager Garth Grundy said “Gowings has made several direct private equity investments in recent years and SHI is a business where we believe that we can add value. We are pleased to be inheriting a strong management team at SHI who we plan to support in realising the further growth potential of the business.”

SHI was acquired for a total net consideration of $16 million with $10 million paid from existing cash reserves and a deferred consideration amount of $6 million payable on 30 June 2017.

RUSTY PARTNERS WITH SHARK MITIGATION SYSTEMS Shark Mitigation Systems announced that Rusty has signed a License Agreement to incorporate their world-leading Shark Attack Mitigation Systems (SAMSTM) visual technology into Rusty’s Australian surfboard portfolio.

This Agreement will form a platform from which further global distribution will follow through the Rusty network. Rusty are banking on people choosing, on balance, to go with a surfboard that carries a university tested pattern, capable of deterring and delaying shark attacks as the primary buying motivation in a sea of competing brands.

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PATAGONIA CONTINUES TO EXPAND ITS FAIR TRADE PROGRAM FOR AUTUMN/WINTER 2017 Patagonia launched its Autumn/Winter 2017 collection featuring an increase in Fair Trade Certified styles for the brand globally from 11 to 218 in two years. Fair Trade styles will represent 20% of the collection available in Australia.

More than 40 million people are directly involved in the global textile manufacturing industry and many are living in the poorest parts of the world. It is no secret that working conditions and wages are often inhumane and unacceptable; frequent news headlines and tragedies in factories remind the world about the dangers these workers face.

Global outdoor and apparel retailer Patagonia’s supply chain involves nearly 75 factories and more than 100,000 workers worldwide. As a complement to Patagonia’s own robust factory monitoring program, the company has partnered with Fair Trade USA, an organisation that has developed a well-established program for ensuring products are made in factories and farms where workers are safe, treated with respect and paid fair compensation for their labor.

The premise is simple: for every product made by a Fair Trade Certified factory, companies such as Patagonia choose to pay an additional premium that workers can use to elevate their standard of living and bridge the gap between a minimum wage and a living wage. A worker-elected committee votes on how to spend the money – either as a cash bonus or to pay for social, economic and environmental community projects.

To help improve the lives of factory workers, Patagonia, the largest supplier of apparel made in Fair Trade Certified™ factories, has quickly scaled its Fair Trade program from one factory and 11 styles in Autumn 2014 to six factories and 218 styles available globally from April 2017.

Since 2014, Patagonia has paid $639,000 in premiums that go directly to the workers making its apparel. By Spring 2017, Patagonia expects to manufacture 300 styles – approximately one-third of its products – in Fair Trade Certified factories. Patagonia is one of more than 1,000 companies representing 30 product categories that sell Fair Trade Certified products.

In Patagonia’s mission to use business to do good and lead the way for transparency in the outdoor industry, it is making it easier for other apparel companies to make products in Fair Trade Certified factories. Once a factory is certified, any other company that wants to make Fair Trade products in that factory simply has to pay the additional Fair Trade premium.

Rose Marcario, Patagonia’s President and CEO said, “Fair Trade USA’s approach has proven it contributes to a better standard of living, including pay and employee participation in the workplace and community. It also helps create better working conditions and safeguards against the use of child labor. One last benefit falls not to the workers, the factory or Patagonia as a brand, but to the customer who buys a Fair Trade Certified garment: every purchase is a vote, with the pocketbook, for good values, an all too rare opportunity in our global economy.”

Working with Patagonia locally on sharing the Fair Trade story is renowned Australian freesurfer and activist, Dave Rastovich, who recently visited Patagonia’s Fair Trade Certified factories in Sri Lanka with fellow brand ambassador and surfer, Belinda Baggs.

Rastovich, who has also partnered with Surf Aid International for the last 15 years to work in remote Indonesia and better the living conditions for isolated communities said, “Working with Patagonia is incredible – their mission statement says it all: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”

“I like how Fair Trade is a disruptor. It’s a voice standing up to a big bully of an industry. As a surfer, that idea of being antiestablishment and pissed off at the system really sits well with me. Fair Trade lets us take that frustration and do something to actually better the system,” Rastovich added.

Fair Trade USA is a nonprofit organisation that promotes sustainable livelihoods for farmers and workers, protects fragile ecosystems and builds strong, transparent supply chains through independent, third party certification. Its trusted Fair Trade Certified™ label signifies that rigorous standards have been met in the production, trade and promotion of Fair Trade products from over 80 countries across the globe.

Recognised as a leading social venture by the Clinton Global Initiatives, the Skoll Foundation, and Ashoka, Fair Trade USA also provides critical capacity-building programs at origin, and educates consumers about the power of their purchase.

Visit www.FairTradeUSA.org for more information.

CELEBRATING 40 YEARS: PRINT ‘N WEAR CONTINUES TO RIDE THE TEXTILE WAVE Print ‘n Wear, the Currumbin-based screen printing operation, is turning 40 this year, a feat which has company co-founder Carl Birch mildly amused; the t-shirt and contract textile screen printing facility sprang into existence in 1977 to service the thenfledgling surfwear industry.

Carl and his wife Gail stepped into the world of screen-printing, fashion and textiles by chance. Gail was working on producing commercial art for a small local screenprinting operation, and the owner was keen to sell the business.

Carl had purchased a few Dewey Weberbranded t-shirts (Dewey being a well respected surfer and surfboard manufacturer of the era) through a US surf magazine and thought something similar could be done locally. “We saw an opportunity to fill a void with surf print tees,” said Carl.

Rustling up a loan, they set about hastily learning all they could about screen-printing whilst asking around in local surf shops for business. Soon they were producing short runs of t-shirts branded with surf shop logo artwork for stores like Burleigh’s Hot Stuff.

Pre-modern surf label era, many of these shops only sold a smattering of hardware and rudimentary wetsuits, yet had cult-like followings – the t-shirts sold swiftly.

Meanwhile the first shoots of the surf industry were emerging, and Print ‘n Wear found its feet by supplying custom projects for up and coming brands, like placement prints on collared shirts for surf wear-label Mango on the cusp of their meteoric rise.

Billabong were also starting to make inroads with their new boardshort label, and Print ‘n Wear were soon printing t-shirts for their team riders and printing their flouroblended board shorts. It was these team rider t-shirts for Billabong that first tipped Carl and Gail off that this cottage industrylike surfwear caper could blossom into something big.

“One minute we’re doing short runs of 100 promo t-shirts for Billabong’s surf team, the next it was 1,000 – the demand to look like a sponsored surfer by wearing the same shirt was already there. It was the beginning of the trend, turning away from the understated surf style of the 70’s; everyone wanted to look the part. We grew to meet the demand requirements.”

In 1978, Carl and Gail started swimwear label Cheetah, which quickly grew to become one of Australia’s largest swim brands. The label won multiple awards and dominated the landscape in surf/swim circles for over two decades, exporting to South Africa, Europe, USA, and Japan. During those heady days the label sold $1 million worth of swimwear in one year to America alone, and the factory expanded to employ 130 staff plus contractors. The duo later sold the label, and started a fresh new brand to fill the void called Kulu Atoll/Kulu, which they retired in 2012.

Over the last 20 years, as major labels' mass production requirements began to far outstrip Print ‘ Wear’s production capacity and offshoring apparel manufacturing to places like China became the new industry normal, Print ‘n Wear found itself slowly moving full circle. They’re now back to doing specialised small runs of hand screen prints.

Just like when they first set up factory, their clientele is mainly surf stores, bands, events and small up-and-coming clothing labels.

Carl claims moving back to hand printing has been a good move, as they enjoy helping out new and independents labels and local creatives. And they’re still busy – most months they’re running at full capacity – but on a variety of niche projects instead of big bulk orders.

Reflecting on 40 years in the industry, Birch said he’s exceedingly proud of Print ‘n Wear’s achievements. And despite the difficult financial terrain facing some of surfing’s biggest brands, he thinks there’s still room for label newcomers. “It’s difficult as all the stores are corporate stores these days. And there’s the whole social media element to master. But there’s a return to smaller, less mass-produced goods. And there will always, always be girls continuing to look for new and exciting swimwear.”

MAUI FIN CO TO BE DISTRIBUTED IN AUSTRALIA AND NEW ZEALAND BY AROONA GROUP Maui Fin Co. (MFC Hawaii) announced that Aroona Group will become its new distributor in Australia and New Zealand.

Maui Fin Co, founded in 1986 and driven by Pio Marasco since 1994, is one of the world’s most progressive fin brands, manufacturing

windsurf, kite, surf & stand up paddle fins for some of the world’s best riders including team rider Kai Lenny and legendary big wave pioneer Darrick Doerner.

“We are stoked to bring Maui Fin Co. into our existing Surf and SUP family of brands, it will enhance our product offering to our existing Australian and New Zealand retailers,” said Mitch Ashton, Aroona’s Operations Manager. “With an already strong global team, we look forward to building a core team of MFC riders focusing on high performance athletes who only want to use the world’s best products.”

association news JAMIE MITCHELL EARNS MEN’S OVERALL PERFORMANCE AWARD AT 2017 WSL BIG WAVE AWARDS The world’s best big wave surfers gathered in Huntington Beach for the 2017 World Surf League (WSL) Big Wave Awards. The gala ceremony at the Pasea Hotel and Spa feted the greatest rides of the past year and celebrated the big wave community.

Australia’s Jamie Mitchell claimed the Surfline Men’s Overall Performance Award after showcasing incredible feats throughout the season, including his historic win at the inaugural Big Wave Tour (BWT) Nazaré Challenge. Mitchell’s win was his second at the Big Wave Awards and further establishes his place in the history books.

“This really is dedicated to my wife and my little baby daughter at home,” said Mitchell.

“Thank you to everyone here. You all inspire me and push me to chase every swell and probably the ones that I shouldn’t. I would like to thank all of my sponsors. Without the support of them, I would not be able to travel the world and chase all the swells.

I really want to thank all the water patrols because I really love coming home to my family and we do some crazy stuff out there.

I am honoured.”

Mitchell was also nominated for the Billabong Ride of the Year, but it was Billy Kemper who earned the big win. It is no surprise that the Maui local secured this year’s title on a gigantic wave at Jaws, as this break saw him earn back-to-back BWT Pe’ahi Challenge wins. Kemper previously had a 2010 Ride of the Year nomination, a 2013 Wipeout of the Year nomination and a 2014 Ride of the Year nomination, but he finally earned the headlining award with his incredible barrel at Jaws on November 11, 2016.

Another big winner on the night was Australian Shanan Worrall, who earned the Tube of the Year Award after charging through a massive barrel at The Right in Western Australia.

To view all the award-winning rides from the 2017 WSL Big Wave Awards, check out WorldSurfLeague.com/BigWave

WSL ANNOUNCES MEN'S AND WOMEN'S QS ON PHILLIP ISLAND WSL is proud to announce it will be teaming up with Surfing Victoria to host a Qualifying Series (QS) 1000 Event on beautiful Phillip Island from October 27-31. Surfing Victoria CEO Adam Robertson is excited to bring a QS event back to Victoria.

“I am delighted that Surfing Victoria, the Bass Coast Shire and World Surf League are able to bring a QS event back to Victoria and particularly to Phillip Island, which has some of the best waves in the state. The QS is the stepping stone to the Championship

Tour and provides junior surfers with some great experience against older surfers.

development pathways and engage the wider surfing community.”

2017 SBIA AWARD FINALISTS ANNOUNCED

“By having this event, we are completing the development pathway for our junior surfers starting from our grassroots participation events all the way up to the Rip Curl Pro Bells Beach.”

“Surfing Victoria is indebted to Max for the passion, hard work and strategic direction he’s provided to our sport.”

Right at the time of press, the finalists for the 2017 Australian Surf Industry Awards have been decided. With over 120 nominations across 30 categories ranging from State Retailers to Men’s and Ladies Brand of the Year, the Awards are a celebration of local industry achievement.

The primary location for the event will be the world class beach break at Cape Woolamai, with backup options being Flynns Reef, Penguin Parade, Right Point, Smiths Beach and Surfies Point.

The event will coincide with the Phillip Island Junior Challenge and Indigenous Invitational.

WSL ANNOUNCES NEW PARTNERSHIP WITH VISA The World Surf League (WSL) has announced a partnership with Visa as the official payment partner of the Quiksilver and Roxy Pro Gold Coast, the first stop on the 2017 WSL Championship Tour (CT).

In addition, Visa piloted a new and unique wearable product at the Quiksilver and Roxy Pro Gold Coast: payment-enabled sunglasses. The shades feature contactless payment capability, merging function and fashion for surfing fans, and eliminating the need to carry cash or cards on the beach. Visa also integrated technology and branding at the point-of-sale for fans attending the competition.

To extend the reach of Visa’s activities beyond the beach, WSL will also be producing and distributing a series of vignettes highlighting how Visa can help enable the travel experience which is so fundamental to the surfing culture.

“Visa is excited to make waves in the surfing world with a sponsorship of the Quiksilver & Roxy Pro, the first stop on the 2017 World Surf League Championship Tour,” said Chris Curtin, Chief Brand & Innovation Marketing Officer at Visa. “Surfing culture represents a lifestyle without barriers, and Visa helps fans achieve a life unbound – whether it’s paying with their sunglasses or traveling around the world.”

SURFING VICTORIA AWARDS 18TH LIFE MEMBERSHIP TO MAX WELLS OAM Surfing Victoria awarded the 18th Life Membership to Max Wells OAM. Max has been involved in all aspects of the sport of surfing, from management of the Victorian and Australian Surfing Teams, to judging at Surfing Victoria events and working as Event Director of the Rip Curl Pro for 13 years.

Employed at Surfing Victoria for 16 years, of which he was CEO for 14 years, Max grew the organisation from two to eight staff members whilst financially securing the future of Surfing Victoria for years to come. Surfing Victoria under his leadership has been a pioneer in Indigenous sport and recreation participation programs, along with tirelessly working towards gender equality with the creation of a state-wide female surfing program.

“On behalf of Surfing Victoria, it is a great honour to provide Max Wells OAM with a Life Membership,” said Surfing Victoria's Chairman, Paul Robson.

“Max’s dedication and impact to the sport of surfing has been huge. He is viewed as a leader, mentor and friend within the surfing community.”

“Through Max’s direction, Surfing Victoria has been established as one of the peak sporting bodies in Victoria. This includes the implementation of some amazing programs that embrace diversity, provide fantastic

“It is fantastic to be able to recognise Max and the amazing job he did for Surfing Victoria, our members and the sport of surfing,” noted Surfing Victoria CEO, Adam Robertson.

“He has provided incredible leadership and helped create a sustainable organisation for years to come, which we all thank him for.”

Max was also awarded the Order of Australia Medal (OAM) for service to surfing and to the community in 2014.

“Surfing Victoria has been a massive part of my life for over 25 years,” said Max. “I am honoured to be awarded a life membership and join a small group of well-deserving recipients. It is extremely special to be given the award and I would like to thank everyone who I have worked with over the past two decades, my family Deb, Sarah and Kate for all of their support and all of the members of Surfing Victoria during my time there.”

WORLD SURF LEAGUE RELAUNCHES WSL ASIA The World Surf League (WSL) announced the relaunching of the WSL Japan region as WSL Asia, with headquarters remaining in Japan but expanding the region’s purview to include China, Indonesia, the Maldives, the Philippines, South Korea, India, Taiwan, Vietnam and Sri Lanka.

“As WSL continues to develop and promote the Asia Region, it became abundantly clear that we needed to support all the surfers in the region to ensure they have every opportunity to advance their career paths,” said Graham Stapelberg, WSL EVP/General Manager Tours. “Under the new structure all surfers in the region have an opportunity to become Regional Champion and earn important seeding to launch their careers on the Qualifying Series.”

retail news STORMRIDERS RE-OPENS IN BATHURST Stormriders has reopened its Bathurst store in an all-new and bigger location in Bathurst City Centre. Part of Wilson Real Estate group that also includes Saltwater Wine stores, the all-new Bathurst central location is in the same centre as the previous store and continues the evolution of the Stormriders award winning fit out. The original store first opened in 2011 at the same location, but in a much smaller space.

According to the company’s site, Stormriders is a unique retail experience and its look is best described as ‘vintage industrial’ with an eclectic mix of displays and fittings.

Signature features include polished concrete floors, exposed ceiling, plywood wall panelling and Hi Bay industrial lighting.

With a strong emphasis on social media, Stormriders has attracted 14,493 likes on Facebook and 3049 followers on Instagram.

There are eight Stormriders stores located in Port Macquarie, Forster, Kempsey, Armidale, Bathurst, Orange and Dubbo NSW with the new store opening at 210 Howick St, Bathurst and online at www.stormriders.com.au

Vissla and RVCA have continued their momentum after taking out the top two places in the Breakthrough Brand of the Year in 2016, and are now in the running for Men’s Brand of the Year. Vissla will also be looking to do one better in the Wetsuit of the Year after coming second behind Rip Curl’s Flashbomb in 2016.

The past year has been big for new and establishing brands in the Australian Surf Industry. Tigerlilly has been making their impact on the Australian surf market, and are a finalist in the Swimwear Brand of the Year and Ladies Brand of the Year, along with Roxy, Rip Curl, Billabong and O’Neill.

One of the biggest movers from a new brand is Slater Designs. The surfboard brand of 11time world champion Kelly Slater has made a big impact with his range of boards and accessories, and is a finalist in the Breakout Brand of the Year, Surfboard of the Year, and their Algae Traction Pad is also up for the Surf Accessory of the Year and Product Innovation of the Year.

Voting for the awards was conducted throughout a 3-week period, in which the voting premise was simple: Brands and Manufacturers vote for Retailers, and Retailers vote for Brand, Product and Service Awards. An independent panel from POPAI, The Global Association of Marketing for Retail, will judge Marketing awards.

Last year’s winner Volcom are again a finalist in the ASB Sales and Customer Service Office of the Year along with Creatures of Leisure/Otis, Quiksilver, Rip Curl and Rusty.

The 2017 Surf Industry Banquet and Awards night is a great opportunity for Australia’s brands and retailers to get together to celebrate the amazing surf and boardsports industry. The 2017 Banquet and Awards night is being held on the 25th May 2017 at the Crown Plaza at Coogee in Sydney.

For tickets and a complete list of the 2017 finalists please check www.sbia.com. au/2017awards/ Full coverage next issue.

ISRA MARCH MEETING AND TRADING SUMMARY The March members meeting of the Independent Surf Retailers Association (ISRA) was held at the Crown Plaza, Coogee.

The meeting was a busy one with lots of robust discussion across a range of topics.

The November to February Trading Results survey was discussed in detail, the consensus being overall trade for the period was positive.

In summary: • Sales Performance in November was positive for most.

• December had a slow start however came back strongly in the week before Christmas.

• January and February were positive single digits for most.

• Overall the period was positive mid-single digits however March was proving to be challenging.

• Gross Profit for the period was slightly up.

• Overall stock levels were down.

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INDUSTRY NEWS

Takeaways from the meeting were the terrible start to winter weather saw inflated stock levels from the start of the season and then spring being a late starter saw new stock sit. The mixed-up seasons saw plenty of clearance of “A” grade stock through online and national chains, which affected many independents and their margins.

There were very few standout categories, which was to a large extent due to comparing to a solid spring period the year before.

• Wetsuits and Surf Accessories were the best performed.

• Most categories were in negative territory by varying degrees with Watches and Electronics the worst-performed category.

The brand performance survey was analysed to see what brands were performing best within the group and what brands were not performing to expectation. The meeting also featured a members Q&A session with Debbie Newsome from Bombora and David ‘Watto’ Watson from Beach Without Sand.

Deb and David gave the ISRA group a great insight into their respective businesses and a great shared learning.

The ISRA members’ forum had much discussion on the state of play within the industry and what was working and what wasn’t for individual businesses. The meeting also featured a ‘what’s hot’ session, which highlights tactics retailers are trying in store and kicking goals with.

Meeting guests included Michael Heath and Drew Quinell from Surf Hardware International who gave the group an update on the change of ownership from SurfStitch to Gowings (see Brand News) and a look into their product to market strategy.

Damian Campbell from Oakley gave the meeting an overview of the changes to the Oakley business and new global warehousing and shipping approach.

Vissla founder Paul Naude joined John Mossop, Paul Budrikis and Matt Drape from Stokehouse Australia and gave the group an overview of his time and experience in the industry. Paul spoke candidly on the future of brands and retailers plus shared some initiatives that the Stokehouse group are working on.

Quiksilver global brand manager Garry ‘Spurter’ Wall joined Todd Liddy, Jo Branch and Danny Tukino in a wide-ranging session that included a presentation of the results of their recent global consumer research, and changes to the business since becoming a private company. The group outlined the reasoning for Quiksilver’s decision to supply selected Myer stores and their future plans both globally and locally.

“It was another action-packed ISRA meeting loaded with information and learning, with several members commenting that in the ten years of ISRA, it was one of our best yet,” said ISRA Chairperson Mike Di Scascio.

team news REEF SIGNS ITALO FERREIRA TO ITS SURF TEAM Reef has signed Brazilian superstar Italo Ferreira to its surf ambassador team. The former WSL Rookie of the Year continues to light it up on the tour with a strong start this year, making it to the quarterfinals at the Quiksilver Pro, after which a freesurfing injury forced Italo’s withdrawal from the next two WSL events. Italo is a globetrotter with a strong sense of adventure and fun, a true embodiment of Reef ’s “Just Passing Through” mentality.

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“We are thrilled to have Italo on the Reef team,” said Mike Matey, VP of Marketing for Reef. “Not only for his freakish surfing talent, but also for his direct connection to Reef ’s Latin American roots.”

KOLOHE ANDINO SIGNS NEW 100% HARDWARE DEAL Current WSL world number five, Kolohe ‘Brother’ Andino from San Clemente California will be riding 100% FCS Hardware for the next three years. The deal includes fins, the FCS II system, leashes, covers, and now FCS traction.

Work on Brother’s new signature pad is well and truly underway and available soon.

It was only a few short years ago the FCS Traction range copped a full overhaul, and from that moment, the category has been going from strength to strength with a dominant market share position here in Australia.

“I’m 100% psyched and into this, I’m all in!” said Andino.

Andino joins FCS global athletes including Julian Wilson, Gabriel Medina, Jeremy Flores, Filipe Toledo, Sally Fitzgibbons and Ryan Hipwood who’ve jumped on the program and helped design their own signature pads.

sponsorship news KELLY SLATER’S OUTERKNOWN TITLE SPONSOR OF WSL FIJI The World Surf League (WSL) announced that Kelly Slater’s Outerknown brand as the title sponsor of the WSL Championship Tour event in Fiji. The three-year partnership includes both men’s and women’s competitions at the OK Fiji Pro, which runs this season from May 28 through June 16, 2017.

Founded by 11-time WSL Champion Kelly Slater and designer John Moore, Outerknown is a coastal-minded clothing brand that explores the connections between style and sustainability. Slater has delivered consistently barrier-breaking performances at the elite level in Fiji and the four-time event winner has a strong relationship with the island of Tavarua, making it his favourite wave, and the OuterKnown partnership a natural evolution.

“I fell in love with the small island of Tavarua a long time ago and I go back a few times every year,” said Kelly Slater. “It’s definitely my favourite escape and may be home to the happiest people on earth.”

“We're very excited to welcome Outerknown to the WSL family and look forward to working with them to showcase the world’s best surfers at one of the most incredible events on the Championship Tour,” said Beth Greve, WSL Chief Commercial Officer.

Attempts by ASB to contact the WSL about the partnership went unanswered but according to John Moore, Outerknown’s Creative Director, “Outerknown was built on a foundation of style, sustainability and travel - for us, Fiji brings together everything we stand for. It’s the ultimate destination; lush jungles, crystal clear waters, perfect waves. You look around and are surrounded by jaw-dropping natural beauty. There’s no better place on Earth to celebrate why we’re working so hard to protect our ocean and wild places, and we hope to inspire new fans from all around the world to explore sustainability.”

“The level of surfing on tour right now, on both the men’s and women’s sides, has never been higher,” said Stephanie Gilmore, 6x WSL Women’s Champion and current 2017 tour frontrunner. “That’s in part because we have amazing waves to perform on. Fiji has some of the best waves on the planet and is part of the fabric of the Championship Tour.

Having Outerknown step up to support men’s and women’s surfing with the OK Fiji Pro for the next three years is a great thing for surfing.”

The OK Fiji Pro gets underway with the women’s competition on May 28 through June 2, followed by the men’s event, which holds a competitive window of June 4 - 16.

The events will be broadcast LIVE on WorldSurfLeague.com, the WSL app and on the WSL’s Facebook page.

marketing news QUIKSILVER LAUNCHES NEW “GENERATIONS" MARKETING CAMPAIGN Quiksilver has released a new campaign, ‘Generations’, that celebrates the spirit of the brand. The campaign aims to help an entirely new generation connect with the brand’s DNA, by exalting adventure, adrenaline and incredible performances.

The idea is to celebrate the spirit of the present moment, by rediscovering moments in Quiksilver’s history.

According to Quiksilver “It’s not a history lesson. It’s not a message to the misguided youth. It’s not a ‘back in my day’. It’s about the feeling of now.”

Follow on #GenerationsOfQuik Check out http://quiksilver.com/ generations

ROY MORGAN’S YOUNG AUSTRALIANS SURVEY DUMPS ON SURF BRANDS According to the latest Roy Morgan’s Young Australians study, surfwear brands are no longer considered cool by nearly as many Australian kids as they used to be. In contrast, sportswear labels Adidas and Nike have been steadily gaining ground with this challenging demographic.

A comparison study by Roy Morgan Research found that in 2007, when asked to choose ‘What is really cool’ from an extensive list of brands, games, TV shows, cartoon characters, toys and tech devices itemised in Roy Morgan’s Young Australians Survey, 46% of Aussie children aged between six and 13 years old included Billabong among their ‘cool’ picks. Fast forward to 2016, and only 14% ticked Billabong.

Rip Curl has also fallen on the Roy Morgan survey: between 2007 and 2016, the proportion of children who considered it cool fell from 33% to 18%. Quiksilver also dropped on the survey, with just 15% of kids including it on their cool list in 2016 (down from 28%), while Roxy suffered a similar fate (from 34% to 14%). Only 5% of kids rate Rusty as cool now, less than a quarter of the 23% who did in 2007.

This decline in surf-wear’s cool credentials on Roy Morgan Young Australians Survey is evident among boys and girls of all ages, but the most pronounced downturn has been among girls aged between 10 and 13. For example, whereas 72% of girls in this age bracket thought Billabong was cool and 79% thought the same of Roxy in 2007, these figures have dropped to 22% and 30% respectively.

Sportswear, in the meantime, has experienced gains since the last survey was conducted. Considered cool by 27% of Aussie kids in 2007, Nike is now at 39%.

While Adidas’s trajectory hasn’t been as steep, it now exceeds all five surf labels with 26% of children rating it as cool (up from 22%). Puma hasn’t fared so well (slipping from 18% to 13% between 2007 and 2016).

Just as the cool status of surf-wear brands took its biggest hit among 10-13 yearold girls, sportswear’s most dramatic improvement was with this same group.

An impressive 57% of girls aged 10-13 agree that Nike is cool, up from 29% in 2007; with 40% feeling the same way about Adidas (up from 25%).

Commenting on the findings, Norman Morris, Industry Communications Director for Roy Morgan Research said; “Whereas surf labels like Billabong and Rip Curl used to be about as cool as it got with Aussie kids, Roy Morgan data shows that this is no longer the case. Those in the apparel trade will know that this is consistent with a wider slump for surf-wear, which has struggled (along with many other local clothing retailers) to compete with the influx of international retailers such as H&M and Topshop.

“Furthermore, surf culture in Australia has moved so far from its rough-and-ready roots that it’s now part of the mainstream, with even former PM Tony Abbott hitting the waves. On the other hand, Nike and Adidas are benefitting from the current athleisure craze, with kids (especially girls) clearly responding to sportswear’s popularity with fashionistas around the world. Nike’s relationship with actor-comedian Kevin Hart and Adidas’ association with singer Kanye West undoubtedly add to these labels’ desirability, even among children.

In 2004, Roy Morgan Research recognised the industry need for research measuring kids’ behaviour, attitudes and media consumption, and developed a nationwide survey of young Australians aged 6 to 13 years.

The Young Australians Survey is the largest continuous survey of this important market, with children recruited from households of existing Roy Morgan Single Source respondents. Approximately 2,500 children are surveyed annually. However, the cost of the report is not cheap, ranging from between $5000 to $10,000 for a single report.

RUSTY AUSTRALIA APPOINTS NAVIGATE DIGITAL TO ITS AFFILIATE MARKETING BRIEF Rusty launched their affiliate programme early 2016 with the goal of connecting the brand to the world of affiliates. Navigate Digital will focus on building partnerships with affiliates across bloggers, and content sites.

“Our decision to appoint Navigate Digital came from a glowing recommendation made to us, which detailed their depth of experience in affiliate marketing, and development of strategies based on Rusty’s values and ecommerce strategy,” said Kate Miller, the general marketing manager for Rusty Australia.

Navigate Digital is a digital media agency with offices in London and Sydney. It specialises in affiliate marketing, biddable media and display buying and planning.

“We’ve worked with a number of fashion retailers over the years, and are looking forward to applying our combined experience to Rusty’s affiliate programme,” said John Kimbell, the joint managing partner for Navigate Digital.

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INDUSTRY NEWS

FAVOURABLE PRESS COVERAGE LIKELY TO IMPACT QUIKSILVER (ZQK) STOCK PRICE Media headlines about Quiksilver (NYSE:ZQK) have been trending positive according to Alpha One Sentiment Analysis reports. The research group, a division of Accern, identifies positive and negative news coverage by monitoring more than twenty million blog and news sources in real time.

Alpha One ranks coverage of publicly traded companies on a scale of -1 to 1, with scores nearest to one being the most favourable.

In its latest report, Quiksilver earned a coverage optimism score of 0.03 on Alpha One’s scale. Alpha One also assigned news articles about Quiksilver an impact score of 100 out of 100, indicating that recent news coverage is extremely likely to have an impact on the stock’s share price.

media news SURFSTITCH OFFLOADS GARAGE ENTERTAINMENT BUSINESS SurfStitch has sold its extreme sport video business Garage Entertainment to the Madman Media Group. SurfStitch in late 2015 bought Garage Entertainment and its associated company TMG for $15 million in cash and shares. The exact sale amount was not disclosed, with SurfStitch telling press that that Madman will pay a ‘nominal cash’ amount for Garage.

However, SurfStitch is set to retain access to Garage’s content. It said that the parties have agreed to enter into a partnership, which will see Madman supply marketing, content development and advertising services to SurfStitch.

SurfStitch booked a $12.9 million impairment for Garage Entertainment in its FY16 full year results, representing full write down of goodwill. SurfStitch said the sale of Garage would not have a material impact on FY17 underlying earnings.

SurfStitch in February posted a half-year loss of $8.3 million in the December half, compared with a loss of $14.5 million in the year earlier.

Madman, an Australian independent online film and television distribution and rights management company, said the buy would strengthen Garage’s audience reach.

“Adding Garage Entertainment action sports and adventure film content offering to Madman Media Group’s suite of proprietary streaming VoD services will deliver a market-leading offering to action sports and adventure film fans across all popular platforms,” a spokesperson for Madman said.

“The addition of Garage Entertainment to the Madman Media Group’s streaming services provides an aggregated subscriber base of over 600,000 registered users.”

Madman was founded and managed by Tim Anderson and Paul Wiegard in 1996, a self-described “couple of self-confessed nerds, keen to share their passion for awesome content.” Specialising in a wide range of productions and theatrical divisions, Madman’s offerings already include surf films Storm Surfers, Uncharted Waters and Bustin’ Down The Door.

“Extending this skill set to work on the films represented by Garage will create commercial opportunities for all stakeholders,” it said.

The sale of Garage is part of SurfStitch’s plan to offload assets to refocus on its core business. It bought Garage after shelling out to buy surf weather site, Magicseaweed, and online magazine, Stab Magazine, for $13.8 million.

12/ Australasian Surf Business Magazine issue #77

OLYMPIC CHANNEL AND ISA SIGN PARTNERSHIP The Olympic Channel and the International Surfing Association (ISA) announced an agreement to collaborate on content. As part of the agreement, the Olympic Channel will live stream coverage from the upcoming 2017 ISA World Surfing Games, which take place 20-28 May, in Biarritz, France, in addition to other ISA events.

The ISA will make its Olympic programme debut at the Olympic Games Tokyo 2020 and becomes the 52nd federation or organisation partner of the multi-platform media destination where fans can experience the power of sport and the excitement of the Olympic Games all year round.

At the 2017 ISA World Surfing Games, the world’s best national teams will come together to represent their nations and compete for gold at the ISA’s flagship event.

The event returns to the world-renowned surf destination of Biarritz for the first time since the historic edition in 1980 that launched the career of Tom Curren, who is the honorary Patron of these Games.

“We look forward to working with the International Surfing Association to introduce their sport and athletes to a broader audience,” said Mark Parkman, general manager of the Olympic Channel.

“As we look ahead to Tokyo 2020, viewers are sure to be fascinated by the stories of these athletes who push their limits against one of nature's most powerful elements.”

“Embracing innovation and digital content has long been a central part of the ISA’s media strategy, so we’re excited to partner with the Olympic Channel to continue grow our sport’s visibility and reach,” said ISA President Fernando Aguerre. “We look forward to showcasing our sport’s high performance and youthful energy to new and global audiences. This agreement is also a reflection of our commitment to the Olympic Movement as we head towards Surfing’s Olympic debut in the Tokyo 2020 Games.”

Since its launch in August 2016, the Olympic Channel has been streaming live events in collaboration with its federation and organisation partners. In addition to broadcasting live events, the Olympic Channel team is collaborating with its federation partners on innovative partnerships encompassing event coverage, highlights, magazine shows, news coverage, original programming and technical business solutions.

finance news GOOD SURF DRIVES ECONOMIC GROWTH A Sydney University academic and economist Sam Wills recently published a report that attempts to quantify the impact a quality surf break can have on a local economy. By studying 5000 surf locations across 146 countries between 1992 and 2013, Wills and his team from the university’s School of Economics concluded that a quality wave can add up to 2.2 percentage points a year to local gross domestic product.

Amongst the Top 10 Fastest Growing Surf Breaks from 1992-2013 in Australia, Yallingup, Isolators, Rabbits, Palestine’s, Supertubes, Mouse Traps, Smiths Reef are all from WA. The only other wave in the Top 10 is Express Point in Victoria. The University of Sydney research, entitled “Surfing a wave of economic growth”, has also yielded a list of the world's fastest-growing surf breaks over the 21 years to 2013.

Nine of the 10 top Australian breaks are in the Margaret River-Yallingup region of Western Australia. Three of them – Rabbits, Isolators and Yallingup – also make the world’s top 10, after breaks in Costa Rica – a notable beneficiary of surf tourism – Peru, Malaysia and Vietnam.

Economic growth around the breaks was tracked via satellite images of night-time light emission, and by following population expansion over the same period. The theory was tested along with the influence on wave access and quality of wetsuit technology and climate patterns.

“We conducted four sets of experiments and they all confirm that good waves significantly increase growth, particularly after recent discoveries and during El Niño years,” said Dr Sam Wills.

Wills said while it was well understood that natural features such as rivers and fertile soil have always mattered for economic growth, the 53-page study “provides some of the first evidence that natural amenities are also important.”

The paper suggests policymakers can use surf breaks as a way to create jobs and reduce poverty, especially in developing countries.

To do this they can promote public and private investment needed to enjoy surf breaks, while protecting their environmental quality.

“Discovering a high-quality break – or battery-heated wetsuits that made coldwater breaks more accessible – increased growth in the surrounding areas,” Dr Wills said.

To prove the same point, researchers cited famous breaks around the world whose disappearance has damaged the local economy. River dredging to broaden a boat channel temporarily ruined Mundaka, in Spain’s Basque Country.

“The annual Billabong Pro, which runs each October at this famous locale, was cancelled for two years in a row after the sandbar seemed to have practically disappeared,” said the Save the Waves Coalition in a report at the time. The report notes, however, that sand and the break gradually rebuilt, restoring the spot to the list of must-do surf locales.

In a similar case, the world-class left-hander Jardim do Mar in Portugal was spoiled by the construction of a sea wall to protect a new coastal road.

“I had the idea for the paper straight after I submitted my PhD thesis,” Dr Wills said.

“It was November and I needed to get out of Oxford, so I looked for somewhere warm and sunny with good waves.”

“I settled on Taghazout in Morocco, thinking it would be quiet. Flying in at sunset over the desert I noticed that everything was dark, except for one little spot that was lit up like Pitt Street: Taghazout.”

“Once I arrived I realised that this previously sleepy little fishing village had been overrun by surfers, and so I wanted to figure out whether it was systematically happening around the world.”

Dr Wills presented the findings at the International Surfing Symposium conference at the Gold Coast in the lead-up to the Quiksilver Pro, the first stop on the 2017 surfing World Championship Tour.

VF CORP. Q1 EARNINGS DIP, VANS UP VF Corp. reported first-quarter earnings were down slightly due to a sales dip and currency headwinds but VF said results were in line with expectations and its growth platforms performed well. On a currencyneutral basis, Vans rose 6 percent.

First quarter revenue from continuing operations decreased 2 percent to $2.6 billion (down 1 percent currency neutral); Outdoor & Action Sports revenue increased 2 percent The North Face brand revenue increased 6 percent and Vans brand revenue increased 5 percent. Direct-to-consumer revenue increased 6 percent with digital revenue up 25 percent.

“VF’s first quarter results were right in line with our expectations. The company’s largest brands and international and direct-to-consumer platforms performed well, delivering solid results against a retail backdrop that continues to experience significant dislocation,” said Steve Rendle, president and chief executive officer. “Our diversified value-creation model and our focus on becoming a more agile and consumer-centric organisation position us to accelerate growth through 2017 and execute against our recently announced 2021 strategic growth plans.”

GOPRO REPORTS Q1 REVENUE UP 19% GoPro Inc. announced financial results for its first quarter ended March 31, 2017 “GoPro is executing a turnaround,” said Nicholas Woodman, GoPro’s Founder and CEO. “We had a great first quarter and feel good about our outlook for the second quarter. We remain on track toward our goal of returning to full-year non-GAAP profitability in 2017.”

According to The NPD Group’s Retail Tracking Service, in the U.S. in the first quarter GoPro accounted for 3 of the top 5 products, including the top 3 spots, on a unit basis in the digital image category. HERO5 Black was the best-selling digital image camera in the U.S. in the first quarter on a unit and dollar basis. According to NPD, in March GoPro’s drone, Karma with HERO5 camera, was the #2 best-selling drone priced over $1,000 in the U.S. on a unit basis.

According to GfK, in the first quarter Japan unit and dollar sell-thru was up over 120% and nearly 140% year-over-year, respectively, and our category dollar share grew to 3.4% from 1.4% in the first quarter of 2016.

Non-U.S. markets generated 60% of first quarter revenue. Between 70% and 90% of the HERO5 camera users in China, Germany, Spain, Italy, France, and Japan are using their cameras in their local language.

The company launched the GoPro trade-up program in the USA. GoPro owners receive $100 off a HERO5 Black or $50 off a HERO5 Session when they trade-in any previous generation GoPro camera, working or not.

GoPro ranked #6 coolest brand out of 122 companies in teen study commissioned

by Google.

SURFSTITCH BUMPED FROM THE COUNTRY’S TOP 300 STOCKS SurfStitch has been bumped out of the list of the top 300 companies, removed from the ASX300 in the latest quarterly rebalance. Once worth more than former parent Billabong, the company’s market capitalisation in late 2015 was around $550 million. In comparison, Billabong, which almost wiped out, that year had market capitalisation of just over $500 million.

SurfStitch’s market capitalisation is now just $48 million and is considered among 2016’s worst performing stocks. It shares were at 15.5¢ at the time of press. However, SurfStitch has stemmed some of its losses and says it has stabilised and refocused the business.

WILLIAMS TO VENTURE EYEWEAR

“The teams in each of our businesses… have worked very hard to deliver on the immediate objectives which we set ourselves at the beginning of the financial year, to stabilise and refocus the business,” chief executive Mike Sonand said recently.

“We have made good progress in containing fixed and variable costs.”

Former SIN eyewear founder and brand manager Cameron Williams is set to launch Venture eyewear to the market in August 2017. Having gained experience under management at Pacific Optics, who specialise in convenience and service station distribution, Williams saw the potential at the sub $30 price point by offering fully polarised sunglasses and a lifetime warranty in surf distribution.

SurfStitch posted a narrowed half-year loss of $8.3 million, compared with the more disappointing $14.5 million loss of a year earlier.

According to Williams, Venture eyewear will have an outdoor lifestyle direction and be backed with a focused marketing campaign set for pre-launch in May.

SurfStitch is tipping a loss blowout of $5 million to $6.5 million by the end of the fiscal year, worse than prior expectations of $4 million to $5 million.

“It is exciting times, the eyewear market is changing fast and we are seeing massive growth in low end/sub $30 eyewear and it now dominates around 40% of an estimated $4 billion industry here. The Venture range will be supported with categories including Floating H20/Medium impact safety/ Trek-ride and an on-trend fashion collection for men and women backed by a lifetime warranty,” said Williams.

“We are building a solid foundation on which to operate our global business.”

VOLCOM SALES DOWN Volcom Inc. (USA) posted $60.1 million in revenue in the first quarter, a 3.5% decrease from the prior year period, according to Kering S.A., its Paris-based parent.

Volcom “continued to be weighed down by the difficulties experienced by specialist distributors in the U.S., despite a solid showing from the directly operated store network,” Kering said.

The brand’s same-store sales were up 12%.

Volcom, along with Puma, is part of Kering’s Sport & Lifestyle division, which posted a 16.5% sales increase to $1.16 billion.

Kering S.A. meanwhile was up 31% to $3.9 billion for the quarter. It has a market value of about $35 billion, and a portfolio of brands that includes Gucci, Yves Saint Laurent and Kelly Slater’s OuterKnown brand.

environment news FIREWIRE TOP SAVE THE WAVES’ BUSINESS OF THE YEAR LIST Save The Waves Coalition (USA) announced this year’s Wave Saver winners, presented

by Peak Design. Honouring an outstanding athlete, business and environmentalist for their contributions to protecting our waves and coasts, this year’s winners are Mark Price, CEO of Firewire Surfboards, and Anna Cummins and Dr. Marcus Eriksen, co-founders of the 5 Gyres Institute, as well as water photographer Sachi Cunningham.

Winning Wave Saver Business of the Year, CEO Mark Price and Firewire Surfboards have been leaders in sustainability within the surf industry.

Rob Bain back home at O’Neill.

a 1.2km jetty to an 800m rock wall and wharf for 150 cruise ships a year, servicing a two-floor terminal on six hectares of public land at The Spit.

Fanning and fellow pro surfers led a successful community campaign against a similar proposal by billionaire developer Bob Ell at Kirra in 2014. He issued a statement to the Gold Coast Bulletin describing the latest plan, which council hopes to begin building in 2019, as an “eyesore”.

“I hope we can band together as a city and stop this horrible thing from happening,” said Fanning.

“I think it’s extremely sad that the Gold Coast City Council is looking at destroying one of our amazing beaches for a cruise ship terminal. One of our most iconic tourist attractions – the beach – which brings so much attention to our area, is being mistreated for an eyesore.”

The 2014 Save Kirra campaign drew the ire of Mayor Tom Tate, who said he would rather listen “to the people that matter” than the three-time world champion. Mr Tate said he respected Fanning’s opinion “but he needs to remember that three of the best surf areas in our city have been created by man-made structures”.

“The Tweed Bar rock walls which create brilliant waves at D-Bah; Kirra Groyne which I had extended to further improve the break; and the seaway breakwalls which have created TOS,” said Tom Tate. “If Mick is against the oceanside cruise terminal, he is in the minority. More than 70 per cent of voters re-elected me and I was the only mayoral candidate running on a pro-oceanside cruise terminal platform.”

In his statement, Fanning, who has called for a new world surfing reserve from South Stradbroke Island to the border, said the Mayor’s latest proposal was a “huge pollution construction”.

Firewire embraced the ECOBOARD program from day one with the introduction the TIMBERTEK models, and converted their entire production to Entropy Super Sap bio-resin. With over 10,000 TIMBERTEK boards in the water since its introduction, it has clearly made an impact. They’ve also shown you don’t need to sacrifice performance for sustainability, and were most recently recognised by the Surf Industry Manufacturers’ Association for 2017 Breakout Brand of the Year, Performance Shortboard of the Year, and Longboard of the Year.

“We shouldn’t mess with Mother Nature in a time where it needs our help more than anything.”

MICK FANNING CALLS FOR COMMUNITY TO STOP CRUISE SHIP TERMINAL

Gold Coast Surf City chairman John Nielsen was concerned the council’s submission could also jeopardise the city’s $3.3 billion annual surf industry. Mr Nielsen said half that amount was generated by surf tourism, which was reliant on an area’s natural attributes and that “the economic impact of surfing on the Gold Coast economy is $9 million a day.”

Mick Fanning has issued a call to arms for Gold Coasters to ensure the council’s proposed cruise ship terminal never sees the light of day. Plans submitted to the federal environment department for referral include

The Mayor said Fanning was “commenting on a design showing a major service port facility.” “Council’s position has not changed.

We are only committed to a port of call/ day facility,’’ said Tom Tate. Yet the council’s submission, signed off by its head of Economic Development Darren Scott, states in its summary “…the proposal is to establish the cruise ship facility as a base port that will provide facilities to support cruise ships at point of origin and destination, including resupply and refuelling.”

Source GCB

on the move JAMES TO QUIKSILVER Chris James has joined Quiksilver’s SE Asia Operation as General Manager. Prior to this James held various positions for some 13 years at Billabong GSM, most recently as Brand Manager for Dakine, Sector 9, Xcel and Palmers Surf Brand Manager.

BAIN BACK AT O’NEILL Former O’Neill Global Brand Ambassador and Asia Pacific Marketing Manager Rob Bain has returned to O’Neill as its South Pacific Brand and Marketing Manager. Bain previously held positions of President of O’Neill Australia as well as National Sales and Marketing for the brand. Recently, Bain founded Aqualuna Media & Creative, a publisher of unique and progressive print and digital content under the Surfing Life and White Horses mastheads. Commenting on Bainy’s return, O’Neil South Pacific General Manager Justin Daniels said: “When an opportunity presented itself to bring Bainy in to lead our men’s marketing department and brand strategy it was an easy call to make! Most of your readers know the history and I’m not going to skate around it: 2015 was a very difficult period for the business, and with that came tough decisions. Rob left after 15 years and in hindsight it wasn’t the right decision. It feels like 16/17 has provided a fresh start for the original surf brand with a renewed focus on building a resource team of board sport industry standouts – Bainy fits right into that program! I will be working closely with Rob on continuing our mission to be the wetsuit/apparel brand of choice for real surfers buying their product from real surf shops. We do that right, we will be here for another 70 years,” said Justin Daniels, General Manager ONSP. “Let’s just say, that there is some unfinished business for me at O’Neill. I am really happy to be back with the brand that I have lived and breathed for so long. Having a great relationship with retailers, industry and key stakeholders domestically and globally, I can only see a positive road ahead. The brand is full of young and creative people, so maximising an old head on young shoulders will always be key. Outside of this, I will always remain someone who simply loves to surf,” said Bainy.

“No brands live in this space and it is a first for the lifestyle eyewear market globally. We own our eyewear manufacturing business in China and can deliver quality that’s affordable,” said Williams.

Venture eyewear has a developing a social media footprint and brand ambassadors including Longboarders Chelsea Williams, Dane Pioli, Heith Norrish and Joel Skinner and former WCT surfer and waterman Shane Bevan. Sales enquiries can be made at sales@ventureyewear.com

SMITH TO SURF HARDWARE Former O’Neill Marketing Executive Alex Smith has joined Surf Hardware International as Marketing and Communications Manager.

SCOTT LEWIS APPOINTED GLOBAL GM OF OTIS Otis eyewear have appointed Scott Lewis to the newly created role of Global Brand Manager. Lewis brings to Otis decades of surf industry and specialised eyewear experience, having served as Director of International Sales at Oakley Inc, Commercial Director of Oakley Europe, International President at Globe and Director of Sales and Business Development EMEA at Fox Head, Inc. Lewis has also previously served as strategic advisor to Spy Optic Europe and award-winning French optical brand Parasite Design.

“It’s been exciting having Scott involved with our group as we have mapped out Otis’ future path. Scott brings years of international experience and eyewear knowledge to the table that will help build Otis at a global level. We are really happy to have Scott back home and on board,” said The Leisure Collective International CEO Nathan Omodei.

“OTIS is absolutely ready to fire globally.

The company strives for a level of excellence in product development and has a real hunger to improve and build. I couldn’t have been asked to join a better brand, a better team, or be given a better opportunity to grow a business internationally, said Scott Lewis.

Lewis was engaged by The Leisure Collective in December 2016 to assist in strategic planning for the OTIS brand and will join the team full-time, home-based in the company’s Australian office, in June.”

13/

OVERSEAS NEWS

u.s news ACTIONWATCH USA: Q1 STARTS THE YEAR WITH A BUST According to ActionWatch USA’s Q1 report it’s fortunate that it is a relatively low volume quarter because the first quarter of 2017 was quite horrible in terms of year-overyear sales growth. Retailers also carrying snowsport gear probably did fine due to the banner snow year, but ActionWatch does not track the snow categories.

ActionWatch USA same-store panel sales for all categories were down 12.4% in Q1 compared to the first quarter last year. All major categories except wetsuits were down double digits.

The wetsuit category is the smallest “major” category ActionWatch track and is therefore more susceptible to wider sales growth swings. As with the previous quarter it continued to be the one bright spot in the first quarter with sales almost 13% higher than in Q1 last year, driven in particular by strong sales growth in March.

Apparel sales were down 13% compared to Q1 last year with very few classes enjoying positive sales growth. L/S tees, skirts and women’s swimwear were the only apparel classes in Q1 to increase sales over last year.

Some of the biggest decliners in apparel were tanks/sleeveless tops, sweaters, non-denim pants, fleece bottoms and shorts.

Footwear sales were down nearly 18% in the first quarter. Surprisingly, sandal sales were down more than shoe sales with sandal sales growth at -20% and shoe sales growth at -17%. Women’s footwear sales growth numbers were slightly worse than men’s.

Accessory sales were down 12% in Q1 with men’s accessories down significantly more than women’s. The watch category was hardest hit, followed by wallets, socks and sunglasses.

On the positive side, women’s bag sales were quite good with a 19% sales increase while belt sales grew in both genders. We track sales of underwear, keychains and a myriad of other accessories in a class together and this “Other Accessories” class grew by almost 4% in Q1.

Hardgood sales declined by almost 13% in Q1 with skate hardgoods down 15% and surf hardgoods down 14%. Bodyboard hardgoods were down 30% while wakeboard hardgood sales were only down 2%. Protective gear and skimboard hardgoods were both down low double digits.

According to ActionWatch USA’s Cary Allington, “Easter was in March last year but in the middle of April this year, so I hope that means we will see some big improvement in the sales growth numbers for April. The same-store sales growth numbers for the first quarter were quite disheartening, so any improvement would certainly be welcomed.”

FCS-TO-FUTURES FINS DEVICE HITS THE SURF MARKET A California company has launched a fin adapter that allows the use of FCS II fins in Futures Fins box systems. The idea behind the device is that consumers will be able to purchase boards with Futures-type fin boxes but still use any FCS-type fin thereby not having to purchase new fins.

“We noticed a problem with the plethora of fins and the incompatible fin systems in our quiver,” said Julian at Wasabisurf.

“We’ve created a two-tab to one-tab fin

adapter constructed with ultra lightweight carbon fibre that allows FCS-type fins to be compatible with Futures-type fin boxes.”

The adapters are fabricated with a carbon fibre composite construction. Each device has unique geometry cants that tilt at 4-to-5 degrees. Center adapters are designed shallower (1/2" base depth) to fit typical rear (or center) Futures compatible fin boxes.

Check out www.wasabisurf.com

THE OP AND GOTCHA BY ICONS OF CULTURE Z Supply, LLC, an Orange County-based contemporary sportswear company, announced the launch of a new brand – Icons of Culture. Icons of Culture focuses on telling legendary stories of the past through exclusive artwork, photographs, and neverbefore-seen images to a new generation of customers. It is a premium collection of graphic tees, custom apparel and accessories, which resurrect iconic brands, musicians, artists, photographers and more.

The company‘s owners said it has been a real passion project for everyone involved.

Z Supply, LLC even brought in Op’s founder, Jim Jenks, and Gotcha’s founder, Michael Tomson, to consult on the collections.

Together, they have created authentic fashion pieces that evoke a great sense of nostalgia.

Each capsule collection truly embodies the essence of both Op and Gotcha from backin-the-day.

PATAGONIA AND OUTERKNOWN PARTICIPATE IN NEW FAIR TRADE USA CAMPAIGN In an effort to mark the anniversary of the Rana Plaza Factory collapse, Fair Trade USA has gathered notable influencers and figures from the action sports and outdoor industries to participate in their new photo campaign, “We Wear Fair Trade.”

The photo campaign features brand partners Patagonia, Outerknown, Obey, Athleta and Prana. Fair Trade USA started in 2010, and has evolved their focus from food products to also include home goods and apparel.

The series of still portraits features thought leaders and athletes wearing their favourite Fair Trade Certified products. These include Patagonia chief executive officer Rose Marcario, the brand’s freediving ambassador Kimi Werner and surfing ambassador Dan Malloy; Outerknown founder Kelly Slater and chief creative officer John Moore; Obey founder and artist Shepard Fairey; Athleta president and CEO Nancy Green; and Prana climbing ambassador Chris Sharma, and surfing ambassador Kelly Potts.

SIMA LAUNCHES THE FLOAT COLLECTIVE CAMPAIGN IN SUPPORT OF HUMANITARIAN CAUSES The Surf Industry Manufacturers Association announced the launch of The Float Collective campaign which will feature a unique collection of products from member brands with proceeds benefiting 14 different humanitarian organisations that use surfing to help those in need. The collection of products and a special Float Collective bracelet will be on sale through various surf retailers beginning in June 2017.

The first season of Float Collective products are due to launch at retail in June 2017.

As the products are sold throughout the summer, a 5% royalty from each product sale, as well as the proceeds from Float Collective bracelet sales, will be donated by participating brands to the SIMA

Humanitarian Fund. In December 2017, the SIMA Humanitarian Fund will use all of the funds collected to write grants to the humanitarian organisations selected by the Board of Directors earlier this year. Grant recipients were selected based on a variety of criteria, but each organisation uses surfing in some way to improve the quality of life, health or welfare of people around the world.

The Float Collective is also supported by: Fernando and Santiago Aguerre and Families for underwriting of the bracelet POP displays, art direction by Cinco, and 3PL service by Steele Logistics.

For information please visit www.sima. com/float-collective/

VANS NAMES NEW GM OF NORTH AMERICA Mitchell Whitaker has filled the job vacated when VF Corp. promoted Doug Palladini to President. Previously, he had a successful run as Vice President, Managing Director of Vans Asia Pacific. He established the Vans Asia Pacific business in 2008, which has been a strong performer for the company.

SURF EXPO RANKED AMONG THE BIGGEST AND BEST TRADE SHOWS OF 2016 BY TSNN Trade Show News Network (TSNN) has announced Surf Expo among the Top 250 Trade Shows for 2016. Each year, TSNN compiles a list of the Top 250 Trade Shows in the United States. Surf Expo earned spots 95 and 96 in this latest ranking for the January and September shows.

Roy Turner, SVP and Surf Expo Show Director said, “It is an honor to again be ranked in the top 100 shows by TSNN. The Surf Expo team looks forward to a great 2017 and expansion of our show offerings.”

TSNN is the world's leading online resource for the tradeshow, exhibition and event industry since 1996. TSNN owns and operates the most widely consulted event database on the Internet, containing data about more than 22,000 trade shows, exhibitions, public events and conferences.

SURF INDUSTRY ANNOUNCES BEST BRANDS, PRODUCTS AND CAMPAIGNS OF THE YEAR Billabong, Vissla, and Slater Designs were the grand winners of the 14th Annual SIMA Awards, held in Silverado, California.

The event, organised by the Surf Industry Manufacturers Association (SIMA) awarded the best products, marketing campaigns, and brands of the year 2016. There were a total of 75 nominees distributed by 15 categories.

Billabong stole the show by winning all three women’s divisions: “Marketing Campaign of the Year,” “Apparel Brand of the Year,” and “Swim Brand of the Year.”

Vissla conquered two important awards in the men’s field: “Apparel Brand of the Year,” and “Boardshort of the Year.”

Slater Designs won two prestigious trophies: “Performance Shortboard of the Year,” and “Breakout Brand of the Year.”

Accessory Product of the Year, which is one of the most coveted awards of the year, was the smartwatch The Mission by Nixon.

The ceremony hosted by Greg “GT” Tomlinson and Rosy Hodge also honoured two surf shops that have been open for business for more than 50 years. Wave Riding Vehicles (Virginia Beach, California) and Mitch’s Surf Shop (La Jolla, California) won the 2017 SIMA Surf Shop Gold Wave Award.

For a full list of winners check out: www.sima.com

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SIMA STUDY REVEALS ONLINE’S DISRUPTION OF SURF RETAIL In its first consumer study, SIMA (Surf Industry Manufacturers Association) found that nearly surfing inspires one-third of Americans. But it also showed how Amazon and online shopping have completely disrupted the marketplace for surf-inspired consumer access to surf industry brands.

The study found that 40 percent of all “surf inspired brand” spend happens online versus 60 percent at brick-and-mortar stores.

Asked where they made their most recent purchases of surf-inspired apparel, 19 percent indicated Amazon – the same percentage as mall specialty stores (Pacific Sunwear, Tilly’s, etc.). Rounding out the top five were department store, 15 percent; vendor store, 11 percent; and sporting goods store, 10 percent. The specialty surf/skate shop represented 4 percent of last purchases.

Not so surprisingly, Core-Influenced Consumers (those with the highest spend rate in surf brands and were most likely to identify themselves as surfers) were more loyal to the specialty surf/skate shop as 8 percent indicated they made their last purchase in that channel. However, with their young age, Core-Influenced Consumers were also found to research and buy online to a greater degree than other consumer profile groups. For their last purchases, a quarter indicated Amazon, with 21 percent indicating mall specialty.

Overall, the study explored the size of the surf-inspired market in the U.S. including those who surf, those who are interested in surfing and those who are interested in and/or buy surf brands. Surfing behaviour, purchase behaviour, media consumption, psychographics and demographics were also explored.

The total surf-inspired market was marked at 66.5 million consumers, or 22.7 percent of all U.S. adults. Of those, 2.2 million identified themselves as surfers, 18.3 million were interested in surfing and 46 million were interested in purchasing surf-inspired product.

Four key consumer profiles were identified: Core-Influenced, Fashionistas, The Affluents and Impulse Buyers.

1. Core-Influenced, representing 23 percent of overall surf-inspired consumers, showed a very high interest in watching (3.53 out of 5) and even higher for participating in surfing (4.02 out of 5). All other consumer profiles showed a relatively lower level of interest in the sport of surfing itself, with combined level of interest for watching at (2.45 out of 5) and participating at (2.33 out of 5). Core-Influenced scored the highest spending rate, with an average spend of $479 over the last 12 months.

The group is split by gender, with an average age of 31.

2. The largest group was Fashionista, representing 37 percent of surf-inspired consumers. Overwhelmingly female (84 percent), the group was also the youngest with an average age of 26. Fifty-nine percent were between the ages of 16 and 24. Being young, the group’s spend ran lower at $344 over the last 12 months.

3. The Affluents, representing 23 percent of surf-lifestyle spenders, stand out for the highest household income, at $102,000.

Their average spend is just below CoreInfluenced. The group skews male (68 percent) and is the oldest group with an average age of 46.

4. Finally, Impulse Buyers, 17 percent of surf-inspired consumers, have the lowest spend in the category – $301 on average over the last 12 months. They’re 72 percent male and slightly younger than Affluents with an average age of 40.

Created in a partnership with Sports Marketing Surveys USA, the study used a two-phased research approach. The first phase, the Establishment Study, surveyed the broader U.S. population to determine the size and general make-up (gender, race, age, region) of the surf-inspired market.

The second consumer segmentation focus was based on 1,450 interviews with “surf inspired” consumers. Those consumers were between the ages of 16 to 54 and interested in surf or purchased one of the following brands: Billabong, Hollister, Hurley, O’Neill, Quiksilver, Rip Curl, Roxy, RVCA, Vans and Volcom.

• Nick Sargent sat down with Colorado Governor John Hickenlooper and Luis Benitez, Colorado’s Director for the Office of Outdoor Recreation Industry, to chat about the state of winter and Colorado’s investment in the outdoor lifestyle industry with a keynote during the informative Industry + Intelligence Day.

athletes to realise their dreams, and surfing is one of the most important extreme sports in REnextop. The REnextop Asian Surfing Tour 2017 will happen in Bali from 8-11 June this year at Canggu, with three additional events later in the year in locations including Japan, Taiwan, and China.

• A revamped Show Floor debuted with new exhibits that helped usher in a fresh energy to the event.

BILLABONG OPENS ITS FIRST RETAIL STORE AT NUSA LEMBONGAN

Other findings in the study:

The Snow Show offered a forecast of what’s to come. Trend Expert Jessica Kaplan recapped the styles and movements that dominated the Show floor, making note of the minimalist trend, bold female performance wear, earth tones, and tech innovation in backcountry.

• Across all customer profiles, 38 percent wore surf brands “most of the time” and 42 percent “all the time.”

• Females represented 56 percent of all surf-inspired spend, 53 percent of all such consumers, and is far and away the majority consumer in the study’s youngest profiles.

• Fit, comfort and quality were the most important factors when buying surfinspired apparel. Core-influenced consumers were much more likely to agree that they purchase surf-inspired apparel because they “Like to look different” or it “shows an ocean/outdoor lifestyle.”

Full details can be found at sima.com/sima-consumer-insights-study/

MICK FANNING TO BE INDUCTED INTO SURFERS’ HALL OF FAME IN HUNTINGTON BEACH Mick Fanning will be inducted this summer into the Surfers’ Hall of Fame in Huntington Beach this August. Surfers’ Hall of Fame founder Aaron Pai had this to say about Mick’s induction.

“Mick has overcome some major hurdles in his life while working his way to the top of the sport,” said Pai. “Throughout it all, Mick has always shown the heart of a champion and represented surfing in the most positive way.”

JACK’S UNVEILS BIG REMODEL Jack’s Surfboards, one of California’s most influential surf shops, is wrapping up its first major remodel in eight years.

The big change will streamline traffic between the store’s three major departments – Jack’s Girls, Jack’s Kids and the original Jack’s Surfboards space.

Until early 2015, the shops were separated by a Jamba Juice location. Jack’s customers had to exit the surf store and walk outside to access the other Jack’s storefronts.

The four-month remodel, the price of which was not disclosed, arrives before the surf shop’s big 60th anniversary in 2017. Jack’s runs five other surf shops and an e-commerce site – all under the Jack’s Surfboards nameplate.

SNOW SHOW RECAP INCLUDES 10-YEAR EXTENSION IN DENVER SnowSports Industries America (SIA) wrapped the 2017 SIA Snow Show after a four-day event in Denver, Colorado, followed by the On-Snow Demo at Copper Mountain. Nearly 18,000 retailers, suppliers, representatives and winter sports industry employees came together for the world’s largest gathering of winter-specific business.

Some key takeaways from the Snow Show: • SIA announced a 10-year contract extension with Visit Denver, The Convention & Visitors Bureau to host the Snow Show in Colorado through 2030.

• The Winter Luxe area showcased brands from around the world with products steeped in the high-end marketplace.

VOLCOM EXEC MOVES TO RVCA Kevin Meehan has left the role of Volcom Americas market president to join Billabong Group’s RVCA in Costa Mesa as global general manager.

“Kevin has deep roots and a strong reputation in this industry, as well as an extensive background in brand building, content and media,” Billabong Chief Executive Neil Fiske said in a statement.

“RVCA is one of the most unique brands in action sports and has tremendous global potential. Kevin will be working closely with brand founder Pat Tenore to build on RVCA’s authentic positioning in art, surf, skate and sport around the world.”

Meehan steps in for Bill Bettencourt, who’s “leaving RVCA to return to the footwear sector, where he has spent much of his career.”

SURFING MAGAZINE SHUT DOWN TEN, short for The Enthusiast Network, has shut down Surfing Magazine to focus on its other surf publication, Surfer. Surfing Magazine was a long-standing publication of the Orange County surfing scene. TEN is based in El Segundo and keeps an office in Santa Ana. Its group of enthusiast brands target affinity groups in sports, automotive and entertainment. Surfing Magazine was founded in 1964.

The Surfing and Surfer titles had separate editorial staffs but shared advertising operations; the new editorial staff will be a blend from both magazines.

The magazines were bought by Primedia in 2001 and then sold to Source Interlink in 2007. Source Interlink went bankrupt in 2014, and re-emerged as TEN. TEN in 2015 opened its Santa Ana office and tech centre, which has more than 250 employees.

indo news RENEXTOP ANNOUNCES RENEXTOP ASIAN SURFING REnextop, together with the Asian Surfing Championships (ASC) announced the REnextop Asian Surfing Tour 2017, China’s first professional surfing tour, planned and organised by the Chinese extreme sports company REnextop. The top surfers from different countries in the Asia-Pacific region including Japan, Korea, Indonesia, the Philippines and Malaysia and Taiwan will be invited to compete in these events.

REnextop is Asia’s first platform dedicated to helping extreme sportsmen and independent

Billabong announced the opening of its first concept store at Nusa Lembongan. It’s an important milestone for the brand as this is the first-ever surf retail concept opened in the area, but the store also symbolises a long and flourishing partnership with its operating partner, CV Raptor Retailindo – which in recent years has opened two other Billabong concept stores in Petitinget and Campuhan respectively.

Situated on the main street of Jungut Butu, Billabong Lembongan measures 92 square metres in floor space and is built around the vernacular of surf.

“Nusa Lembongan is one of most popular destination islands for relaxing, with beautiful beaches and cliffs,” said Dessy Sudiartha, Managing Director of CV Raptor Retailindo.

“We are thrilled to open this new store with Billabong, and we are confident that the store will achieve great results!”

Local businessman, Mr Robertus, established CV Raptor Retailindo in 2014.

He started his business in the hospitality industry, but has now put his foot into retail, with Billabong as his first retail partner.

BONNE GEA OF NIAS JOINS SURFAID The SurfAid family has welcomed Bonne Gea, Indonesian pro surfer, as the newest SurfAid Ambassador. Sponsored by Billabong Asia, Bonne is 5-time Indonesian Women’s Surfing Champion, and 2-time Asian Surfing Champion.

“SurfAid aims to help improve people’s lives in Nias by sharing knowledge and educating them in health, nutrition, sanitation and more. And because of SurfAid’s approach, the local people are learning and making a positive change that will last many generations,” said Bonne.

european news RAY-BAN AND OAKLEY OWNER IN $52.5 BILLION DEAL WITH FRENCH LENS MAKER A new European eyewear giant worth more than 50 billion euros (US$52.5 billion) is set to emerge as Italy’s Luxottica – owner of Ray-Ban and Oakley glasses – merges with French lens manufacturer Essilor.

Essilor International SA said it had reached a share exchange deal with Luxottica’s main shareholder, Delfin, to create a combined company making both frames and lenses.

The new company would have combined revenues of more than 15 billion euros (US$16 billion), 140,000 employees and sales in more than 150 countries.

Founder, Leonardo Del Vecchio would become executive chairman and CEO of the new entity, called EssilorLuxottica.

The chairman and CEO of Essilor, Hubert Sagnieres, will become executive vice president and deputy CEO. Delfin would be the largest shareholder, owning between 31 percent and 38 percent of the new company.

ACCOR HOTELS ‘JO&JOE’ CONCEPT IN PARTNERSHIP WITH QUIKSILVER AND ROXY Unveiled in September 2016, AccorHotels' new brand took everyone by surprise by preparing to open its first address in Hossegor on May 29. Paris and Bordeaux will follow in 2018. For this first Open House, JO&JOE teamed up with Quiksilver and Roxy. The aim is to propose a new and authentic experience, a place where tripsters and townsters get together and chill out.

JO&JOE chose Hossegor, the perfect spot for surfers and a popular destination among Millennials, to inaugurate its new hospitality concept blending the best of hotel, hostel and private-rental formats. Located between the lake and the beach, JO&JOE Hossegor is an idyllic spot for surfing and paddle boarding, but also for yoga, running and other activities that play to Quiksilver and Roxy’s expertise and local roots.

“Since 1969, Quiksilver has been the embodiment of surf culture. The heart of our philosophy is born of a passion to live in the present moment, and built on a surfer’s spirit of adventure and innovation.

The Boardriders Group is delighted to be working in partnership with AccorHotels, a true flagship for global tourism. It’s a real pleasure to work with teams that share the same vision. We are proud to bring the authenticity and credibility of the Quiksilver and Roxy brands to the launch of this modern and ambitious concept, that will revolutionise the way we travel,” said Garry Wall, Quiksilver Global Brand Manager.

FINISTERRE’S HUGE NEW STORE IN CORNISH VILLAGE Cornish surf brand Finisterre has opened its fifth store to date – in the same village where the brand was born more than 14 years ago.

The surf-clothing brand was started in 2003 by one man, operating from a flat above a surf shop in the village of St Agnes on the north coast. Now, 14 years later, Finisterre has four stores and employs more than 55 people, with branches in London, Bristol and Falmouth.

PATAGONIA RECOGNISED FOR COMBATING WASTE Patagonia was awarded the Accenture Strategy Award for Circular Economy Multinational (Joint Award) at the Annual Meeting of the World Economic Forum in Davos-Klosters.

According to a statement from Accenture, Patagonia “Has the principles of the circular economy embedded into its business strategy. A certified B-Corporation, Patagonia’s mission is to build the best product, cause no unnecessary harm and use business to inspire and implement solutions to the environmental crisis.”

“Receiving the Accenture Strategy Award for Circular Economy Multinational in Davos is an indication that we are on the right path and hopefully will increase awareness for these issues and inspire other businesses to follow in our footsteps,” noted Rose Marcario, Patagonia’s President and CEO.

VOLCOM’S DAAN VAN DER LINDEN 2016 EUROPEAN SKATER OF THE YEAR Volcom’s Daan van der Linden was recently awarded with not only 'Video Part of the Year’ for his part in Holy Stokes! A Real Life Happening , but he was also crowned 'European Skater of the Year' for the second year in a row at the Bright European Skateboard Awards in Berlin, Germany.

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FEATURE ARTICLE / WORDS JOCK SERONG / PHOTO'S CHANEL BOWEN

Bowen Out West Life Lessons from the Self-Made King of Scarborough Surf Retail

On a blazing forty-degree Perth day, the brutal intensity of which the locals don’t seem to notice, Wayne Bowen collects me for the drive out to Scarborough. I don’t know what, or who, I’m looking for at first: we haven’t met previously. I’m certainly not looking for the gleaming European saloon that pulls up: it’s the cap and sunnies on the driver that give it away. That, and the wicked laughter: Wayne knows he’s wrong-footed me (he and his wife have swapped cars for the day). I quickly get the impression that he likes to confound expectations.

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On the drive out to the beach, Wayne loses no time getting down to a re-telling of his retailing history; a story of good luck and great management, of the twists and turns that have come to define the industry in the west. What shines through, over the hours ahead, is a remarkable duality: Wayne Bowen is both light on his feet and extremely, deeply loyal to his people. Premises have come and gone, but Wayne’s staff have stayed and stayed.

If you’re over from east, as I am, and you haven’t seen Scarborough Beach in a while, take it from me: the place is totally unrecognisable. The baking sun and rows of beachfront Norfolk Pines, evoking Burleigh or Manly, are still there. But that’s where the nostalgia ends. The Scarborough Beach Redevelopment, described by Wayne as “short term pain for long term gain” is slated to run from April 2016 until January 2018, and entails a complete overhaul of the foreshore and retail precinct under the management of a thing called the Metropolitan Redevelopment Authority. There are huge earthmovers creating entirely new sand dunes. West Australians just aren’t daunted by moving massive amounts of earth. There are diggers in this state that can relocate a mountain range if it is inconveniently positioned.

The redevelopment will have an emphasis on pedestrian access and malls. It’s a partnership between the City of Stirling and the state government, fed by $80 million of public money and untold private investment. There’s a state election looming at the time of our interview (ultimately the Liberal state government is thrown out in a landslide) but according to Wayne this is no controversy – the project’s well-supported across the board.

Wayne has three stores within a Josh Kennedy drop-punt of the giant sandpit: The Surf Boardroom, which he founded in January 1988 and which will be thirty years old at the end of 2017; the Cordingleys Surf City store, which having been around since 1963 is the oldest surf brand in WA; and the Rip Curl Scarborough showroom, which he’s had for ten years. Of the three stores, the Surf Boardroom is the only one not directly affected by the foreshore redevelopment, but like the others, it stands to gain significantly from it over time.

Most of Wayne’s days are tied up in taking care of the big picture across the three businesses: finance and leases, staffing. He’s got store managers in each store and a General Manager who’s been with him for 23 years. He’s 59 now, and started out with a Bachelor of Commerce. In his case, that degree seems have been more than a way of filling some uni years, but rather a genuine statement of intent. Business really interests him.

Wayne had been in hospitality businesses up in Broome, 1700 kilometres away. He owned the historic Roebuck Bay Hotel from the late 1980s, expanded it and sold out in 2006. He also had the Fitzroy River Lodge, which he built and opened in 1989, 400 kilometres from Broome in the desert. He says he got out of both in order to keep his surf businesses, “because I love them.”

The story of how Wayne came to hold the assets in the far north says a lot about his combination of tinny luck and shrewd commercial sense. “After the 1987 stockmarket crash I was in Europe travelling with my wife, Esme. I’d always been passionate about having my own businesses. So on that trip, surfing Portugal, Spain and France I could see the industry blossoming there, and how respected Australian product was, and I came back wanting to do it. But at the same time, I got a call about a distressed sale of some tourist assets.” Wayne wasn’t holding any shares when things went sour on the stock exchanges. “See, in order to fund our trip, I’d had to sell all my stock (at the top of the market), and my stockbroker said “Wayne, you picked it.”

But I told him “Nope, I just went on holidays.” The experience gave me a belief in bricks and mortar, and in balancing your debt with equity.”

Wayne wasn’t holding any shares when things went sour on the stock exchanges. “See, in order to fund our trip, I’d had to sell all my stock (at the top of the market), and my stockbroker said “Wayne, you picked it.” But I told him “Nope, I just went on holidays.”

The Bowens have gone on to invest in residential real estate – in one of the family homes in Trigg Beach he’s housing the Macaulay sisters, and Wayne’s daughter Chanel, along with young Australian hockey star Madi Ratcliffe.

Esme Bowen is widely known and respected in various charity roles. She’s an orthopaedically-trained nurse who’s been involved in wheelchair sports in WA and nationally. Wayne tells me she also has roles in road safety, which led her to work with the RAC. These roles stem from a defining moment in the Bowens’ lives: a major car crash on the journey to Margs for a surf. Their vehicle was hit head-on by a drunk driver: Wayne escaped with a few broken bones, but Esme broke her back and faced a long recovery.

“This was before we had kids,” Wayne said. “After the accident, we didn’t know if we could. So nowadays our surf shops support Wheelchair Sports WA in a big way. She’s quite an amazing person, Es.” Surf Boardroom is the biggest core store in Perth, according to Wayne, at around 250 square metres. It has a huge frontage to Scarborough Beach Road. Boards and wetsuits dominate: the core gear is deep in the store but that’s okay, according to Wayne – “if you need those things, I don’t need to display them in the window. You’ll come in and buy them.” Wayne’s businesses have no direct tie-ins with any surf schools, but they are linked to Surfing WA and some private tuition, and Wayne’s son Matt has spent a year coaching in Sri Lanka at surf coaching retreats.

Standing in the front doorway of Surf Boardroom, Wayne explains his medium-term vision. “I just bought the freehold on the fishing shop across the road from the Scarborough Boardroom. The current store lease here will expire with a redevelopment of the site. So we’ll move across the road and keep Boardroom going over there for three years or so, then when the redevelopment is done we’ll move back and redevelop the old fishing shop. It has 12-18 storey potential with the rezoning that will come with the overall Scarborough precinct redevelopment.”

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The relationship between competition, core surf and retail success is clear in Wayne’s mind. “All the other stuff (he waves at the apparel) depends on this – the boards – for its existence…”

As we wander among the racks inside, Wayne is talking about his various sponsorship deals. Surf Boardroom is currently sponsoring Margaret River surfer Bronte Macaulay on the World Tour. “I’ve known the Macaulays since the mid-1980s, known all those kids since they were born. I was talking to Dave this summer about sponsors and expenses. Their only cash input was Roxy. So I offered a sponsorship of $20,000.” The store stocks a lot of Merricks, Losts and DHDs, the latter of whom are Bronte’s board sponsors. “We’ve always done a big range of DHD,” Wayne says. “So this deal ties in beautifully for us.” Bronte is Wayne’s first pro sponsorship, although he has a long record of sponsoring juniors like local Felicity Palmateer. As we speak, news is filtering in that Bronte is killing it at the QS6000 Surfest event in Newcastle, and has just taken out Steph and Sally. There’s a board hanging over the counter at the Boardroom, proudly emblazoned with Bronte’s name and that figure. “It substantiates what we’re on about as a surf shop.”

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Speaking more widely of WA surfing, Wayne’s assessment is that “we’re a proud state but we’re underachieving – the only (international) competitor from WA is Bronte. The Quiksilver Surf League, the state club comp: they’ve all closed except here in WA – now it’s called the Surf Boardroom Surf League, presented alongside Rip Curl. It’s been going twenty-five years now, a big weekend comp. Margs, Trigg, Scarborough, Geraldton and Mandurah are all in it.”

The relationship between competition, core surf and retail success is clear in Wayne’s mind. “All the other stuff (he waves at the apparel) depends on this – the boards – for its existence.

That’s why we’ve got maybe 150 new boards, and heaps (he tries momentarily to count them and gives up) of secondhand.”

The DMac boards on his racks are, of course, from down south “but we sell a few to Margaret River people.” Surf Boardroom also has a “fairly informal” store online. “You can place an order there and we’ll fulfil it by email. People also stock up on big pintails here in early winter, to go up north.” The store also does learner boards: Mullets, Beaters and the big El Nino Cruisers.

The warm Indian Ocean water temps have an influence on neoprene sales. Surf Boardroom mostly sells up to 3/2mm suits.

Wayne himself only wears 2mm rubber (an unthinkable figure for a Victorian) in winter. Most of the sales are across shortjohns, vests, springies, short-arm steamers and 1mm vests.

The fit-out at Surf Boardroom looks contemporary and effective, even though it was a DIY effort and dates back to 1999. “We did it without missing a day’s trade,” says Wayne. “It was a mental night: we’re planning to do it again when we move over the road. We had done a similar overnight re-fit in the previous store, smashing down walls in the middle of the night.” The Rip Curl store was a professional fit-out because of the licensing arrangement with the company. Similarly, the Cordingleys store was a professional job. “A good professional fit-out costs you $500K,” according to Wayne. “But put in a bit of DIY and you can get it down to maybe $300K.” There’s room inside for skate and bodyboard sections, with the bulky SUPs out the front. “The SUPs are not huge for us but steady. They’re used both in the Swan River and in the surf, and at North and South points at Gracetown, often by older guys who are accomplished surfers and they rip on them.”

Wayne is careful to point out that their skate display is a solid core enterprise, not just there as a surf accessory. “From 1987, skate was frantic,” he says. “It was 30-40% of our business at that stage. These were kids who weren’t surfers – they came from the landlocked suburbs. Our store manager for this display had previously run a skate team – he knows his stuff.”

The other noticeable dominance in the crowded store is thongs: “billions of them”, Wayne agrees. “It’s Perth after all.”

The staff here are obviously at home as they go about their business. Wayne introduces them one by one and with considerable pride. “We’ve got Marissa, who’s been with us for 22 years. Neil for 30 years (he’s got some equity); Glen, who sells the boards, for 6 years. Geoff our General Manager has been with us for 23 years and is a partner in the business now.” Wayne’s daughter is a film-maker and works in the store occasionally too.

“We have staff start with us in secondary school, stay through uni and became professionals and still come back and work with us on weekends because they love it. Dan, behind the counter, has a business degree but just loves to work behind the counter. Almost superfluously, he adds: “One of our best assets is our staff.”

A short walk away, just across the intersection on the corner of the West Coast Highway and the Scarborough Beach Road, is Wayne’s second store. The Rip Curl outlet is highly visible on the front corner of a large shopping centre, with cafes and the beach just behind.

Wayne has the business under a licence but fully owns the store, and 80% of the product in it is Rip Curl branded: “We’ve got full control: they just help with things like display.” It’s known among customers that the stores are commonly owned, but that fact is not promoted. “We do send customers between stores, and that all works comfortably.”

In many respects the retail mix here is a blend of the other two, but of the three stores, this is the only one that does board hire.

“It’s really good dealing with Rip Curl,” says Wayne. “They approached us with the deal. That got the thought process going as to ‘if you were to do a one-brand store, who’d it be?’

Claw and Brian are still active in the business and they’re enthusiastic. I’m dealing directly with them as owners, and with people who have access to them. And I’m a lifelong personal wearer of their wetsuits.”

In keeping with the long personal histories at the Surf Boardroom store, Mike, the store manager here has been in his position for seven years. He’s Dan’s brother, and Geoff the general manager’s son. The store used to be Murray Smith surfboards: Murray had it for ten years, and upon his retirement nine years ago, Wayne grabbed the opportunity. “We ran it as the Murray Smith Surf Centre for two and a half years, then did the Rip Curl deal in 2010.”

A short walk further on, we take a wander through the Cordingleys store. Opened in 1962/3, there’s been only three owners since the founding Cordingley family. Wayne’s had the store since 1992, just a hundred metres from the Rip Curl store, perched right above the beach.

“Cordingleys is more fashion-forward,” says Wayne – and indeed the fashion is right up the front of the store. Here, Wayne’s been able to push specialty brands like Amuse. There’s a mural depicting iconic scenes on the Scarborough coast like the Plank Road and Luna Park; and there’s a real, cut-down Indonesian fishing boat converted into a shop display.

Core surf and skate have a presence here also, but they’re located up the back. But it’s what’s outside that strikes the casual observer.

Directly fronting onto the massive foreshore redevelopment, this store stands to benefit enormously. The lease is only three years into a 15-year term. It’s 375 square metres of floorspace with a three year old re-fit. (By comparison, the Rip Curl store lease is for the next five years, floorspace 330 square metres – Boardroom’s lease is short but it’s going over the road anyway.)

Hanging out at the café next door to the Rip Curl store, conversation turns to two conspicuous retail influences in WA’s recent past: mining’s slowdown and sharks. As you might expect by now, Wayne’s reasonably relaxed about both. “No doubt the mining boom was great for us all in business,” he says. “In surf, FIFO guys had so much disposable income. Brand-new boards, wetties, take a week or two off and load up then go on expensive trips. People phoning in asking what the new Merrick’s like before they jump on a plane.

“When FIFO eased off, it didn’t hurt us. It was both good management and good luck. Surfers we’d looked after remained good customers and continued to come back, just slower. They’d always been an existing customer base that had momentarily become a bit freer with their money.”

This year, Wayne feels they’ve been caught more with stock on hand, because of the redevelopment, but that’s about all.

“The end of FIFO boom didn’t get us too badly. And you can’t cut it to the bone – you’ve got to have a good range all the time.

Hardware always sells through – it’s the fashion stuff that you can get caught with.”

19/

And so to sharks. (This interview took place eight weeks before the Easter weekend fatality in Esperance put WA back in the crosshairs of the shark debate). “Our customer base didn’t stop surfing throughout (the 2012-14 spate of incidents),” says Wayne.

“We were more concerned for future groms – would mum and dad stop encouraging their kids to surf? But it’s a compulsion – the kids keep coming. It spooked everyone, but it didn’t stop anyone I know from surfing. You just changed your habits.

I don’t surf alone much anymore.”

What would Wayne say to the northern NSW retailers who’ve been so badly affected by shark fears? “Hang in there – it won’t last forever. Some common-sense – I don’t advocate a cull, but I do advocate protecting the zone the human species inhabits in the water. But bear in mind over here we’ve got a devoted local market but we’re less tourist dependent. It makes a difference.”

Wayne is the Chairman of the Scarborough Beach Association, a businesses and residents’ group that looks after festivals and activities. With that brief, it’s necessarily close to the Metropolitan Redevelopment Authority. It enables Wayne to keep a close ear on developments affecting his businesses. He knows a couple of the other retailers around him, but they’re not in an ongoing conversation. Most of his feedback comes from the reps: “they keep confidences but they give me an idea of where things are at generally. In Scarborough, in our patch, the reps are it. We’re not in SBIA, but were in the Australian Surf Retailers. I think they’ve amalgamated. The forums were always in NSW, or on the Goldy.

It was all very east coast-centric – it always seemed too far for them to go to come to WA.

Such is Wayne’s local dominance across the three stores that he struggles to name many competitors. “Our nearest competitor is the Longboard Store, Soul. To the north it’s Hollow Surf at North Beach, two kilometres away. Then there’s a Billabong store called Cruel Sea at Hillarys Marina. There’s nothing to the south until Vidlers Surf at Cottesloe. To the west there’s a surf shop on Rotto, then it’s um…ha! Durban.”

Would Wayne ever invest on the east coast somewhere? “I’ve visited so many stores on the east coast and I’m not seeing gaps that aren’t filled. But if the right opportunity came up, I wouldn’t be averse…” As we speak, Bronte wins another heat at Newy, getting through to the quarters. Wayne is ecstatic.

As he nears sixty, a few things are clear to Wayne Bowen.

“Looking back, I was right firstly to stay with grassroots surfing.

It’s essential, supporting groms through sponsorships, leagues and so on. Secondly, looking after staff, and thirdly, looking after the customer base. They’re the big three to me.

“You learn to be harder and tougher in lease negotiations as you get older and crankier. And I’m more discerning with age as to ‘can I make this business work?’” Do your due diligence: opening a brand new surf shop is like buying a brand new board: it’s a rush, but you need to be cautious.

“Number one, do something you love. But number two, make sure you treat it as a business. Fit in surfs before and after work, but the business must not suffer. My general manager and staff are depending on this for a living. So we treat it professionally.”

And as he drops me back into the furnace blast of Perth city and I have to leave the cool confines of that car, he can’t help saying it just once more: “I can’t reiterate strongly enough how important our staff are to us.”

20/ Australasian Surf Business Magazine issue #77

For wholesale inquiries please contact Matt Martin: matt.martin@patagonia.com.au

INTERVIEW / CRAIG 'SCAT' PITCHERS / WORDS MARK EYMES

Craig ‘Scat’ Pitchers FROM ASPIRING PROFESSIONAL SURFER, TO SEASONED ROAD WARRIOR TO JS INDUSTRIES PIT BOSS, CRAIG ‘SCAT’ PITCHERS IS THE SURFBOARD INDUSTRIES MR. NICE GUY. Scat’ invited ASB along to JS Industries sales conference to discuss amongst other things, the lessons learnt from the Hypto Krypto bubble, and what retailers are doing right (and wrong) with surfboards…

When the evolution of the Chinese and Thai surfboards arrived did you feel threatened by that?

Ultimately no, because there were two types of markets: there was the cheaper market and then there was the premium market of Australianmade performance boards. Did it affect our sales? Definitely in the intermediate down to learner surfer categories, but a lot of those people have progressed now from learn-to-surf schools to where they probably look to a JS type of brand that they aspired to. So through patience during that time we’re finding they’re advancing onto our boards now.

At the time, BASE seemed to react strongly and was formed to tackle the cheaper import program, wasn’t it?

Jason was invited into BASE but he chose not to participate because he felt he would lose a bit of touch with his own brand. Because, as I said, he was really keen on having brand control as a longer-term view.

Since you’ve come on board, what’s changed in the way you deal with retailers?

Scat would have to be one of the nicest and funniest people I know in the surf industry.

There are a lot of funny people in our industry, I know, but no one could begrudge him this honour. However, underneath the goodguy humour is a very serious and talented businessman.

Scat entered the surf industry after four years on the professional circuit. In his fourth year on tour he achieved his two best results in Brazil, with a third and a fifth. In 1991 when Scat was 21, Gordon Merchant was considering employing his team riders as reps, and Scat and Wes Laine (USA) were the first two former professionals to become reps for Billabong. Of course, Dougall Walker went straight into management.

Scat says when Gordon made him a job offer he thought about the long-term benefits of a job at Billabong versus the short-term possibility in surfing and decided it was probably the best outcome to take the job at the time. Scat was a good rep too: sincere, knowledgeable and not pushy. He went on to become the Queensland Sales Manager and Australian Manager for Billabong, where he worked for twenty years.

22/ Australasian Surf Business Magazine issue #77

Has your experience at Billabong helped you at JS? Definitely. And I think the most important lesson from my experience at Billabong was to grow the brand in a good legitimate way where branding was the key factor. Keeping the integrity of the brand in place no matter what decisions we made, and Jason Stevenson really big on that also. We never make decisions that may affect the brand ultimately.

How was the setup at JS when you arrived?

Well, there were no style numbers and not really any model names, just pro models. The Parko model, the Dean Morrison, the Bruce Irons etc.

We needed to create sub-branding, which was really important so that these days when people come into a store they don’t ask for a JS they ask for a Black Box or the Monster Box, which is possibly the most important thing you can achieve with a brand.

Well I guess all those decisions we made in the earlier days to start acting like an apparel brand with planning, style numbers, sub-models and all of that, it kind of created a bit of competition with all the other surfboard manufacturers. The surfboard brands in general have all stepped up to the next level of professionalism with planning and pre-booking and all these processes, and that’s kept us on our toes. I thought it would just be a walk in the park but it’s been the most competitive field I’ve ever seen and I think we have all really stepped up when it comes to being more creative. It reminds me of the old days when Gordon (Merchant) and Greeny (Alan Green of Quiksilver) would have clashes over who was going to have the next best boardshorts every year, and boards are no different.

Is it competitive with technology? Is it like a space race?

You can’t really race with technology. You can’t tread in too quickly, I mean, it’s taken us two years now with our Hi Fi program and it’s still in its infancy stages. You want to challenge anyone who wants to step into the technology field because it’s just not an overnighter. It can either make or break your brand if you go rushing into this type of environment. So it’s a lot of work and a lot of it can’t be done in Australia. A lot of our stuff is done in Thailand and we do have a

custom program on ground here that marries up with it, but when it comes to volume and numbers holding the quality that you would expect, it certainly is an offshore process that we’ve chosen. Inevitably it’s the way we are going to supply a global market with quality over a longer period of time.

So you’re getting a lot of your boards made overseas now?

Yes absolutely. In limited models, we are trying to go a little bit narrower and deeper. Less models with more sizes and then for the people who want to have whatever model we make in the entire JS range, we can do whatever they want for them custom here in Australia.

What’s happening now with JS globally?

We’ve gone back to making all our polyester boards in Australia. Like Ferrari, if you want to buy a Ferrari you’d like to buy it from the factory in Italy and we know our international customers want to buy a JS that is made in Australia and they’ve responded greatly. We’ve been doing this for two years and the growth has been incredible. It’s been a really flat period in the U.S. for board sales but our sales have grown sharply. We finally got an audience over there.

Have you seen board sales drop where there is a shark problem?

It’s been 12 months now in the market here and 2 ½ years of R&D. The R&D never stops: it continues on, daily, weekly.

100%! We as surfers now choose where we want to surf and the areas affected are definitely the areas where there aren’t shark nets and some of those key areas are from the Tweed (Qld) border down past south of Ballina. Some of the best surf spots you are going to get in Australia are affected. * Ed’s note (The NSW government has since installed nets in the Ballina region)

Was that a hard decision for you guys or was it just inevitable?

Are you guys looking at incorporating any shark technology?

Look we have seen the struggles of trying to grow our capacity in Australia for the regular poly boards but I guess you could say there has been no growth in the amount of young people wanting to build surfboards in Australia. We feel we have some of the best workers available in Australia, who’ve been with us for 15 years.

With this particular process we have now with the product there are certainly some materials and processes which aren’t available in Australia, so that was the main driver to use the factory (Cobra) that we use in Thailand.

No. We’re going to leave that to the accessory companies to develop that. We just have so much happening at the moment with technology that it would be really hard to think about anything else. In fact we have pretty much shut down every other category that doesn’t relate to a surfboard, to concentrate solely on the innovation of our surfboards at the moment.

Does the technology come to you or do you chase the technology?

What we know was that Hayden was trying to push that board for a number of years before it actually started working and it was a classic perfect storm. The perfect storm for him was at that time he chose - and again, it was a distribution thing - to go with GSI, who made his board available in a much bigger market globally and he had a great team rider in Craig Anderson who brought out a movie at the right time. So A) they had product, B) they had distribution worldwide, and C) they had a great team rider that influenced a lot of surfers. Again it was a slightly technical product, stringerless with a carbon rail and it was epoxy, which was different to what was available in the market.

The key factor too was it was a board that was suitable for just about any surfer, be it a learner, intermediate or even at a higher level. It might not have been the best surfboard in the world but it was an easy sell and it was available. What we really learnt was you don’t need too many models. We learnt that narrow and deep really is the key to being successful. We reacted by concentrating on our best models so we could have more impact and help us get the product into the market.

How long have you been producing offshore now?

We have had various chances to step into other people’s technology and generally we felt we wouldn’t have ownership over our product and that didn’t really entice us to move into other technologies. The technology that we have is a patented product and all we ever wanted to do was make a surfboard that is the same weight as a team board with more flexibility and the stringerless option that we have has proven to be that product.

How’s the ratio of epoxy to polyester?

Like anything there’s a little kneejerk reaction when you first promote and sell a new product, even at that price. We figure it can be 20% of the business in the first 12 months, which is roughly where we are at the moment. Then as we develop more models in the new technology that we have now, which we are, then we should see epoxy get to 40% of the business. That’s my conservative estimate but I really feel it will be more like 50%.

It will be higher or lower depending on the area, especially places like Florida and Japan where there are weaker waves that suit epoxy better.

Our team riders will always be riding quality waves so they will be pushing polyester so I’m conservatively saying 40% but I really think it will be 50% in two years’ time.

What were your thoughts with the success of the Hypto Krypto did that get you guys thinking? What did you learn from that?

What would you like to see retailers do differently or better with surfboards?

I’d like to see retailers not touch surfboards unless they are going to give it a really good go and to dedicate a good amount of space to the category and more importantly they need to hire staff who have a really good understanding about surfboards. Don’t just put some boards in your store to lift other categories. If you’re going to do it, do it well.

The good surfboard retailers seem to be stocking 700+ boards now.

Yes, it’s quickly becoming like car dealerships I think, where pretty soon shops will have to pick three to four brands and specialise with those brands rather than try to have every single brand and do just a smattering of those brands and have too many to choose from and confuse the customer. I’m seeing many stores jump on the latest brand and stock it to the detriment of another brand who has been with them 10-15 years and I just see that as a bit shallow how quickly they can turn it around.

Is JS getting the support you want?

We’ve always been a bit fortunate there. In the last six months I’ve seen what I just said, a bit of a loyalty change. A lack of loyalty in some cases, not just for our brand but also in general. I just don’t think it’s a good thing to throw a bunch of shit at the wall and see what sticks. I think the brands that have been there for fifteen years are likely to be the brands that will be there for the next fifteen years.

You recently held a ‘JS conference’ for your top retailers: what’s that all about?

Yeah, well we do those about every five years and we feel with our brand we are at a fork in the road with all this technology coming through.

We did a fairly big overhaul of the brand in general, and it’s really hard to get that message across. And rather than travel the country with twenty surfboards we get them out of their environment and the message sinks in better.

We feel the next five years is going to be the benchmark from this one conference we had with all the crew that came.

How’s your surfing these days?

It’s definitely slower (laughs). I would definitely be surfing less if it weren’t for our weekly R&D sessions. My surfing is probably, what you could say’s an advanced weekender (we both laugh).

Myself, Jason, Lee Stacey and our GM constantly drive down the coast once a week with fifteen boards and we just trial boards. We constantly work on files. We have to make sure that the weekend warrior who isn’t a pro gets what they need and not what Joel Parkinson needs for the normal surfer. There’s such a big difference between the two and we are basically a conduit between them so that we can make sure they are getting what they need and can feel the board in the average conditions we get weekly. It’s the most inspiring part of the job, constantly trying out new boards and working on files and then seeing it produced and selling well. It feels like a massive achievement. It makes you want to surf more.

23/

-4-

surffcs.com.au

ESSENTIAL SERIES

GET SET WITH ESSENTIAL FINS, TRACTION, LEASHES AND SURFBOARD COVERS Staple items, the basics, the must haves… Call them what you will, these are our core products from each accessory category that will get you set for any good surf session.

SUMMER 2018 NOW SHOWING

ASB MULTI MEDIA METER 2016

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

PRINT MEDIA METER

The Pointscore Legend

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

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

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

ADVERTISING

MAGAZINES

Brands First past the post. To qualify company logos must be clearly legible to the average person. Corporate advertising bearing more than one company logo earns one impression. Brands accrue one point for every legible impression including all editorial and advertising.

BRANDS

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

ATHLETE

AD

ATHLETE

TOTAL

BRAND

TOTAL

ASB#77

ISSUE PAGES %AD

1

23.00 233.75 256.75

1

Albee Layer

32.00

1

Rip Curl

45.00

Surfing Life

Travel 122

0.00

2

Gabriel Medina

30.00

2

Billabong

30.00

Tracks

558

116

19.83

80.17

Hurley

26.00

Tracks

559

116

25.86

74.14

Mick Fanning

2 Craig Anderson

ED

TOTAL

209.50 209.50

%ED

22.95 77.05

110.25 110.25

3

Mick Fanning

23.00

3

4 John John Florence 11.00 97.00 108.00

4

Julian Wilson

21.00

4

O’Neill

17.00

SW

385

116

22.41

77.59

5

Quiksilver

17.00

STAB

87

194

10.82

89.18

6

Red Bull

17.00

7

Channel Island Surfboards

16.00

8

Globe

15.00

9

Monster Energy Drink

15.00

10

Reef

15.00

3 Kelly Slater 5

Owen Wright

0.00

10.00 96.00 106.00

5

Bruce Irons

20.00

6 Mikey Wright

10.00 95.50

105.50

6

Joel Parkinson

17.00

7

Imogen Caldwell

0.00

90.00 90.00

7

Jay Davies

15.00

8

Tyler Wright

5.00

84.00 89.00

7

Matt Banting

15.00

9 Ozzie Wright

0.00

85.75

85.75

7

Dion Agius

12.00

10 Jordy Smith

5.00

71.00

76.00

7

Asher Pacey

12.00

11

Carve

13.00

11 Julian Wilson

21.00 43.50 64.50

8

John John Florence

11.00

12

Electric

11.00

12 Dion Agius

12.00 52.25

64.25

8

Ryan Callinan

11.00

13

Firewire

11.00

13 Laird Hamilton

0.00

62.00 62.00

8

Jack Freestone

11.00

14

Oakley

10.00

14 Scott Dennis

0.00

61.00

61.00

9

Owen Wright

10.00

15

Corona

9.00

15 Dane Reynolds

0.00

59.00 59.00

9

Mikey Wright

10.00

15

Volcom

9.00

16 Pama Davies

0.00

54.25

54.25

9

Stuart Kennedy

10.00

16

DHD Surfboards

8.00

18 Ry Craike

0.00

45.75

45.75

9

Heath Joske

10.00

16

Tomo Surfboards

8.00

19 Bruce Irons

20.00 23.00 43.00

9

Connor Coffin

10.00

17

Ocean & Earth

7.00

19 Taj Burrow

0.00

43.00 43.00

9

Bruno Santos

10.00

17

RVCA

7.00

17

Slater Designs

7.00

17

Spy

7.00

18

Creatures Of Leisure

6.00

18

DaKine

6.00

19

Haydenshapes Surfboards

5.00

19

Pyzel

5.00

20 Albee Layer

32.00 10.00 42.00

9

Jalesa Vincent

10.00

21 Gabriel Medina

30.00 9.00

9

Dave Rastovich

10.00

21 Stuart Kennedy

10.00 29.00 39.00

22 ‘Chippa’ Wilson

2.00

22 Jay Davies

15.00 22.00 37.00

23 Noa Deane

0.00

37.00 37.00

ATHLETE

TOTAL

19

Vans

5.00

24 Victoria Vergara

0.00

36.00 36.00

1

Mick Fanning

233.75

19

Wave Tools

5.00

25 Bryce Young

2.00

32.00 34.00

2

Craig Anderson

209.50

19

World Surfaris

5.00

26 Heath Joske

10.00 23.25 33.25

3

Kelly Slater

110.25

20 Huf

4.00

27 Kai Hing

0.00

20 JS Industries

4.00

20 Nikon

4.00

20 Von Zipper

4.00

21

3D Fins

3.00

21

Atoll Adventures

3.00

21

Brixton

3.00

21

DMS

3.00

21

Epokhe

3.00

39.00

35.00 37.00

EDITORIAL

30.00 30.00

4

John John Florence

97.00

28 Laura Enever

0.00

28.00 28.00

5

Owen Wright

96.00

28 Otis Carey

0.00

28.00 28.00

6

Mikey Wright

95.50

29 Steph Gilmore

2.00

24.25 26.25

7

Imogen Caldwell

90.00

8

Ozzie Wright

85.75

30 Russell Bierke

5.00

21.00 26.00

30 Ryan Callinan

11.00 15.00

26.00

9

Tyler Wright

84.00

31 Joel Parkinson

17.00 7.00

24.00

10

Jordy Smith

71.00

31 Keala Kennelly

0.00

24.00 24.00

11

Laird Hamilton

62.00

32 Aanion Goodwin

0.00

23.50 23.50

21

Futures Fins

3.00

12

Scott Dennis

61.00

21

Mayhem

3.00

13

Dane Reynolds

59.00

21

Nike

3.00

14

Pama Davies

54.25

21

Patagonia

3.00

14

Dion Agius

52.25

21

Rockstar Energy Drink

3.00

45.75

21

Vissla

3.00

43.50

21

XCEL

3.00

43.00

21

Ecosol

3.00

15 16 17

26/ Australasian Surf Business Magazine issue #77

Ry Craike Julian Wilson Taj Burrow

18

Noa Deane

37.00

19

Victoria Vergara

36.00

20 Chris 'Chippa' Wilson

35.00

21

32.00

Bryce Young

22

Kai Hing

30.00

23

Stuart Kennedy

29.00

24

Laura Enever

28.00

24

Otis Carey

28.00

25

Steph Gilmore

24.25

LEADERS

MICK FANNING PRINT MEDIA METER #1

RIP CURL PRINT MEDIA BRAND #1

ASB MULTI MEDIA METER 2016

#SOCIAL_MEDIA_METER

If you believe there’s a surfer outside the WSL elite who deserves to be on our list e.g. Alana Blanchard (2.99m), then write to us. Using our print media meter top performers we’ve tallied surf brands or brands operating in surfwear distribution as the baseline for our social media list. Using the social media links from each brands Australian website homepage, we’ve combined their Facebook ‘likes’ as well as Instagram and Twitter ‘followers’ to determine our overall social media top performers. If there’s a brand that deserves to be on the list, write to us and let us know.

If the link to your social media site isn’t the right one or there’s an alternative social media page for your brand we should be monitoring, also let us know.

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

WSL #SOCIAL_MEDIA_METER

FIELDS HIGHLIGHTED IN YELLOW ARE GLOBAL CHANNELS. NB NO TOTAL OR RANK DUE TO THE MIX OF GLOBAL AND REGIONAL SOCIAL MEDIA CHANNELS. SHOULD BE USED AS A GUIDE ONLY. TABLE CORRECT AT MAY. NOT HERE? CONTACT KEITH@AUSTRALIANSURF.BIZ AND FIND OUT HOW.

BRANDS #SOCIAL_MEDIA_METER

ATHLETE

ORIGIN

1

BRA

Gabriel Medina

#SOCIAL MEDIA METER (ALPHABETICAL ORDER)

TOTAL

243,000

1,292,442

4,200,000 5,735,442

BRAND

Arnette

6,305

369,606

39,200

2

Alana Blanchard

AUS

181,000

2,093,086 1,600,000 3,874,086

Balin

20

1149

345

3

Kelly Slater

USA

499,000

1,773,229

Billabong

206,000

4,459,088

163,000

1,500,000

3,772,229

4

Mick Fanning

AUS

240,000

528,748

827,000

1,595,748

Billabong Womens

11,400

2,233,216

271,000

5

Jordy Smith

ZAF

786,000

314,120

352,000

1,452,120

Carve

185

4,415

21,500 226,000

6

Coco Ho

HAW

85,700

767,082

499,000

1,351,782

Channel Island Surfboards

25,400

66,380

7

Sally Fitzgibbons

AUS

165,000

713,617

438,000

1,316,617

Creatures Of Leisure

26,700

10,550

161,000

8

John John Florence

HAW

62,800

524,327

604,000

1,191,127

DaKine

23,200

180,404

89,100

9

Julian Wilson

AUS

117,000

424,327

607,000

1,148,327

DHD Surfboards

3,969

22,287

96,700 21,800

10

Alessa Quizon

HAW

5,879

712,912

243,000

961,791

Dragon

13,500

30,177

11

Stephanie Gilmore

AUS

104,000

475,217

382,000

961,217

Electric

25,400

191,640

105,000

12

Filipe Toledo

BRA

42,600

414,696

497,000

954,296

FCS

20,000

71,619

291,000

13

Laura Enever

AUS

43,200

348,970

359,000

751,170

Firewire

13,200

43,700

81,600

14

Adriano De Souza

BRA

49,100

401,761

292,000

742,861

Globe

47,100

311,345

127,000

15

Taj Burrow

AUS

101,000

255,112

261,000

617,112

Haydenshapes Surfboards

2,268

27,141

74,500

16

Miguel Pupo

BRA

29,900

220,989

252,000

502,889

Huf

146,000

486,696

1,000,000

17

Sage Erickson

USA

29,300

237,969

228,000

495,269

Hurley

244,000

4,540,899

1,400,000

18

Owen Wright

AUS

29,900

210,270

255,000

495,170

JS Industries

587

24,380

98,400

19

Joel Parkinson

AUS

120,000

60,126

313,000

493,126

Liive

8

1,003

5,209

20 Lakey Peterson

USA

39,900

115,058

266,000

420,958

Matanavusi

16

3,195

4,161

Nikon

22,900

12,491,344

213,000

O’Neill

86,600

1,127,119

25,600 37,400

LEADERS

GABRIEL MEDINA

STAB MAGAZINE

#SOCIAL_MEDIA_METER #1

SOCIAL MEDIA BRAND #1

Oakley

11,800

4,920,470

Ocean & Earth

142

25,137

13,100

Patagonia

351,000

953,630

33,900

Peak

18

977

1,518

Pyzel

243

8,427

77,900

Quiksilver

310,000

4,146,282

1,500,000

Reef

78,900

1,570,275

12,500

Rip Curl

63,600

1,866,084

487,000

Roxy

104,000

3,224,964

1,400,000 457,000

RVCA

70,700

450,953

Spy

26,700

544,870

161,000

Super Brand

1,143

1,171

9,686

4,779

43,200

Tomo Surfboards

MAGAZINES #SOCIAL_MEDIA_METER MAGAZINE

TOTAL

1

STAB

1,061,602

698,000

32,200

1,791,802

2

SW

349,990

124,000

1,354

475,344

3

Tracks

258,319

99,600

31,800

389,719

4

Surfing Life

131,079

142,000

75,700

348779

Vans

1,160,000

16,932,373

89,200

Volcom

304,000

4,012,568

54,200

Von Zipper

23,000

192,379

12,800

Wave Tools

5

5,196

6,742

World Surfaris

511

17,874

16,500

27/

fresh

FCS II FT FCS II FT (FILIPE TOLEDO) Code: FFTM-PC01-MD-TS-R (medium) Colourway: Yellow RRP: $169.95 Available: May Description: The new FCS II FT fin delivers exceptional drive and control off the bottom without hampering the speed off the top and release through the lip that's now synonymous with Filipe's fast aerial style of surfing. The new ultra-light 3D Core Tech makes this the lightest fin in the range.

OAKLEY REID TEE Code: 457033AU-01K Colourway: Jet Black RRP: $44.95 Available: October Description: Fashion slim fit tee with chest print.

GORILLA OTIS ART 2 TAIL PAD Code: 27693 Colourway: Art 2 RRP: $59.95 Available: Now Description: Signature one piece pad by Otis Carey featuring multi-directional Aztec groove.

ROXY HIPPY HOUR ONE PIECE Code: ERJX103093 Colourway: BTK7 RRP: $99.99 Available: December Description: Inspired by the wild desert flower this ROXY one piece is a must have this summer offering a feminine white floral print on classic navy, with a simply wearable tie back.

LIIVE CIARO REVO Code: LI00524 Colourway: Rose Gold RRP: $59.95 Available: Now Description: A round, aviator style in Rose Gold metal, Snow Tort rim detailing and mirror tint Revo lens.

RIP CURL G-BOMB LONG JANE Code: WSM6AW Colourway: Black RRP: $179.99 Available: Now Description: 1.5mm long jane wetsuit, made with E4 neoprene and complete with a strong zip closure and E-Stitch high stretch seams.

CREATURES OF LEISURE WRAP RAX – SINGLE SILICON Code: ASW8001BKOR Colourway: Black Orange RRP: $79.95 Available: July Description: The Creatures of Leisure Auto products are made using the highest quality materials available.

From silicon-encased corrosion resistant buckles to our heavy-duty UV treated and colour-fast webbing and pad materials. Each piece has been carefully engineered and designed to be durable, functional and aesthetically pleasing.

28/ Australasian Surf Business Magazine issue #77

CREATURES OF LEISURE NAVAJO SOX Code: CSNS8060CYMG Colourway: Cyan Magenta RRP: $54.95 Available: July Description: The Navajo Stretch Sox are designed for simple board protection from scratches, dirt, sand UV exposure. Features include: Padded nose panel, drawstring with barrel lock closure and re-usable mesh packaging, perfect for storage of wax and beach essentials.

ARNETTE BURNSIDE Code: AN4236 01/81 Colourway: Matte Black w/ Grey Polarised lens RRP: $169.95 Available: May Description: Inspired by skateboarding and the famous Burnside skatepark in Portland Oregon, USA. The Arnette Burnside features subtle skateboard styling of curved stems, griptape and 4 pins on the board.

RIP CURL AGGROLITE SHORT JOHN Code: WSP6DM Colourway: Black RRP: $169.99 Available: Now Description: 2mm Short John made with E4 neoprene, ultralite neoprene, E-Stitched seams, mesh leg seams and an internal key stash pocket.

GLOBE DION AGIUS +/+ COLLECTION – DION MANTRA TEE Code: GB01710012 Colourway: Washed Black RRP: $49.99 Available: August Description: 160gsm Cotton Jersey, Vintage Wash. The +/+ Collection is a capsule range of unique pieces seasonally influenced and inspired

by Dion Agius.

CARVE THE GUIDE Code: 2520 Colourway: Black/Red RRP: $59.99 Available: June Description: The Guide is the latest addition to the Carve range a lightweight frame with Polarised Iridium lens, built for style and comfort.

reviewed

there’s another reason to celebrate that milestone. The ultimate “Endless Summer” collector’s item has arrived in the form of a huge box set.

PATAGONIA MEN’S STRETCH HYDRO PLANING BOARD SHORTS – 21" Code: 86563 Colourway: RAD RRP: $119.95 Available: September Description: Our most technical board shorts, these are made from superlight 100% recycled polyester with 2-way mechanical stretch; fast-drying with a DWR (durable water repellent) finish and 50+ UPF sun protection. Fair Trade Certified™ sewing.

OAKLEY HOLBROOK Code: OO9102-E155 Colourway: Polished Black w/ Prizm Black RRP: $189.95 Available: June Description: Oakley’s most successful sunglass of the last 10 years now adds another string to its bow with Prizm Black lenses. Oakley’s patented Prizm lens technology improves clarity and detail and provides a more vibrant experience.

LIIVE SHIFTER POLAR Code: LI00581 Colourway: Matt Black RRP: $69.95 Available: Now Description: Features a sleek metal, semi-rimless frame and optically correct polarised lens.

THE ENDLESS SUMMER 50 YEAR BOX SET “The Endless Summer” needs no introduction. It completely changed the sport of surfing and youth culture in 1966 and launched thousands of surf trips in pursuit of things we surfers can’t necessarily find at home.

2016 was the 50-year anniversary of Bruce Brown’s legendary film, but

Limited to 1,966 copies, the collection includes items like a coffee table book written by Bruce’s son Dana, five frames cut from the original film, a commemorative medallion, replicas and reproductions of artifacts from the trip and a hand-signed certificate of authenticity from Bruce Brown and the cast.

Simply put, this is surfing’s end-all-be all of limited-edition numbered box sets. You can check out the box set (and purchase one) here. www.endlesssummerbooks.com

PATAGONIA WOMEN'S LIGHTWEIGHT LINEN TOP Code: 50440 Colourway: TGY RRP: $99.95 Available: September Description: Knit from 100% linen and fast becoming one of our favorites, this knit top is soft, lightweight and has a modern silhouette.

CARVE NOOSA Code: 3180 Colourway: Matt Tort RRP: $59.99 Available: June Description: The Noosa is the perfect festival/summer unisex eyewearwith polarised lens and built to last.

ROXY FESTIVAL BAZAR ATHLET TRI/SURFER Code: ERJX203243 Colourway: KVJ6 RRP: $89.99 Available: November Description: ROXY brings you an intricate mix print with beautiful back detailing that is bound to get your customer excited for freshness at the beach.

Essentially a collection of memorabilia directly from the source, the limited edition boxset contains a treasure trove of “Endless Summer” artifacts.

GLOBE LOS ANGERED II Code: GBLAII Colourway: Black/Black RRP: $99.99 Available: August Description: Inspired by our athletes and the lives they lead travelling the world. The Los Angered II is an evolution of the game changing surf casual, the Los Angered, and features a Nitrolite TM footbed and Globe’s Super-V outsole.

PROXIMITY DIRECTOR: TAYLOR STEELE REVIEW JOCK SERONG Taylor Steele’s new film opens with a Gerry Lopez voiceover about money and time. One suspects the former is less of an issue for TS these days, but the latter must be getting scarce.

This film is intricately woven, and drawn together as always from far-flung places.

Here’s the set-up: there’s four trips, edited to weave in and out of each other, and themed to match seasons: Shane Dorian and Albee Layer wearing a lot of beanies in the “winter” scenes, shot in Scotland; Rob Machado and Craig Anderson in Chile and Japan must be autumn (though I missed it in the credits); Kelly Slater and John John Florence doing spring in southeast Asia, while Dave Rastovich and Steph Gilmore are summer in Mexico (a notso-subtle nod to Corona).

What Steele does distinctively as a film-maker is detail: things like Machado and Anderson crunching through the snow in wetsuits. Or JJF and Kelly playing chess in the dark, the light of a bare bulb glinting off the old master’s bald pate. The chess match recurs several times, including as an out-take after the credits. There’s something hilariously metaphorical about the two of them, in the dark, shifting pawns.

Often we’re watching surfers walking to the ocean in pairs, talking about their lives, their movement subtly slowed to create a dream-like impression. The soundscape is

dramatic and sparse, sometimes just a drumbeat. Surfers are miked to pick up all sorts of interesting noises, like the swish of a rail through foam, or the grunt as someone tumbles onto an unsurfable slab (I imagined the crew googling local casualty wards in the car with the heater on). The water footage

by Daren Crawford, Talon Clemow and more, is breathtaking.

Gerry turns up, unseen, at other intervals, making wise observations about life. Meanwhile, there’s a curious sensation that comes over the body as you watch: it’s shirts-off with John John under a coconut palm one minute, then hoods-on in the rain with Dorian the next. It’s like a fever dream: alternating shivers and sweats. And there’s another instinct that’s tweaked: Rasta and Steph on the one wave, crossing over and laughing and ridiculously, impossibly graceful.

It’s mesmerising to watch: as close as surfing gets to an erotic charge.

These two steal the show: shortly afterwards we get Steph doing Daisy Duke in cut-off jeans in the dust as a semi rumbles by, and Rasta diving off his board so he can bodysurf – perfectly – the rest of the wave.

It’s a minor quibble among all this beauty, but Gerry’s wearing thin by the end. The Dalai Lama and old Chinese proverbs feel a little contrived amidst the sly humour and honest exchanges between the surfers. But others will find that part profound. It’s just me.

This film is a feast for the eyes and food for the soul.

29/

buyers’ guide Eyewear Summer 2017

OAKLEY LATCH Code: OO9265-2953 Colourway: Matte Black w/ Prizm Ruby RRP: $209.95 Available: April

ARNETTE CROOKED GRIND Code: AN4235 01/25 Colourway: Matte Black w/ Blue Mirror lens RRP: $109.95 Available: May

CARVE BOHEMIA Code: 3150 Colourway: Matt Tort RRP: $59.99 Available: May

ARNETTE CUTBACK Code: AN4230 01/81 Colourway: Matte Black w/ Grey Polarised lens RRP: $139.95 Available: May

LIIVE IMPALA Code: LI00599 Colourway: Gold RRP: $49.95 Available: TBA

OTIS LITTLE LIES Code: 20-1802 Colourway: Matte Pink Sea Glass RRP: $199.95 Available: July

SPY HUNT Code: SPHUBT09 Colourway: Soft Matte Black w/ Grey HappyLens RRP: $169.95 Available: June

DRAGON DEADBALL Code: 32728-240 Colourway: Matte Tortoise Green F15 RRP: $200.00 Available: Now

SPY CAMEO Code: SPCABTN89 Colourway: Soft Matte Black Navy Tort - Grey HappyLens w/ Blue Spectra RRP: $169.95 Available: June

NIKE SB UNREST Code: EV0922 600 Colourway: Brian Anderson Signature - University Red RRP: $150.00 Available: Now

OTIS CROSSROADS Code: 19-1804 Colourway: Matte Dark Tort RRP: $199.95 Available: July

NIKE FLOW Code: EV1040 001 Colourway: Matt Black/ Silver Grey Polarised RRP: $200.00 Available: Now

30/ Australasian Surf Business Magazine issue #77

buyers’ guide Eyewear Summer 2017

DRAGON LIIVE THE MIX VON 31090-281 Code: LI00585 TokyoMatt Tortoise/Green Colourway: Revo Xtal Beer $190.00 RRP: $49.95 (Limited Edition) April Available: TBA

OAKLEY DOUBLE EDGE Code: OO9380-0666 Colourway: Grey Smoke w/ Prizm Sapphire Polarized RRP: $269.95 Available: April

ARNETTE CUTBACK Code: AN4230 01/81 Colourway: Matte Black w/ Grey Polarised lens RRP: $139.95 Available: May

CARVE ALAIA Code: 3092 Colourway: Tort RRP: $59.99 Available: May

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

QUIKSILVER BOBBER Code: EQYEY03068 Colourway: Matte Black-Leather / Green RRP: $159.99 Available: Now

SHRED BELUSHKI Code: DSGBLSW Colourway: Shrastawood RRP: $299.00 Available: Now

DRAGON THE MIX Code: 31090-281 Colourway: Tokyo Tortoise/Green RRP: $190.00 Available: (Limited Edition) April

ELECTRIC SWINGARM Code: EE12962320 Colourway: DarkSide Tort RRP: $120.00 Available: Now

D'BLANC LYCHEE (NOA DEANE SIGNATURE) Code: SMSF7LYC Colourway: TGL RRP: $119.99 Available: April

ELECTRIC DANGER CAT Code: EE14362394 Colourway: DarkSide Tort RRP: $140.00 Available: May

SHRED OPTICS VANNA Code: DSGVANE31 Colourway: Shrastawood RRP: $289.00 Available: Now

32/ Australasian Surf Business Magazine issue #77

buyers’ guide Wetsuits Summer 2017

ROXY 1MM POP SURF CHEEKY LS SPRING Code: ERJW403013 Colourway: Pop Surf NDS0 RRP: $199.99 Available: August Description: Roxy’s Pop Surf capsule continues to make waves and turn heads with the eye catching cheeky LS Spring. Functional enough to surf in everyday, with just enough sass to disrupt the lineup.

RIP CURL E-BOMB S/S ZIP FREE Code: WSP6GE Colourway: Red RRP: $349.99 Available: Now Description: Our men’s E-Bomb spring suit now with zip free entry.

Lighter, stronger and more flexible than ever.

PATAGONIA WOMEN’S R1® LITE YULEX® FRONT-ZIP LONG-SLEEVED SPRING SUIT Code: 88455 Colourway: CDHG RRP: $299.95 Available: September Description: A high-performance, neoprene-free spring suit made of 2mm 85% Yulex® natural rubber/ 15% synthetic rubber with 100% recycled polyester lining and floating front-zip entry; the natural rubber is derived from sources that are Forest Stewardship Council® certified by the Rainforest Alliance. Suggested water temperatures: 18-23° C.

RIP CURL GBOMB L/SL SPRING HIGH CUT Code: WSP7LW Colourway: Blue RRP: $209.99 Available: August Description: The ultimate women’s spring suit, made with high quality E4 neoprene and complete with E-Stitch high stretch seams.

THE CRITICAL SLIDE SOCIETY MOVERS BACK ZIP WETSUIT TOPPER Code: SWR1703 Colourway: Phantom RRP: $169.99 Available: October Description: Black on black on black. Our back zip wetsuit topper featuring our new grip skin textured front panelling.

VOLTE

DAKINE 1MM NEEO JACKET STITCHFREE L/S Code: 10001007 Colourway: Black/Gunmetal RRP: $169.99 Available: July Description: 1mm Neoprene, most flexible combination of neoprene foam and jersey available. Welded switchless seams, low profile fused edges on wrist and neck. Seamless Paddle zones for maximum mobility and comfort.

TRM WETSUIT SAMURAI SISTER – 2/2 LS SUITS Code: TRM11 Colourway: Mulberry/Black/ Leopard/B-Pink RRP: $369.99 Available: Now Description: All wetsuits are Custom fit and measured. There are 16 colour options. Every wetsuits is hand made in Japan using the best quality Japanese Neoprene. Company logo branding is optional. TRM specialises in collaboration team projects.

ADELIO HARPER 2MM Code: HL22BC Colourway: Black RRP: $169.95 Available: September Description: Sleek and elegant and modest, the Harper ladies suit is based off a fuller bikini cut, glued and blind stitched seams with a 3/4 front zipper.

O’NEILL HYPERFREAK L/S CREW 1.5MM Code: 4640 Colourway: WB8X Black/ Reef/ Blue RRP: $179.99 Available: August Description: TechnoButter 2 Neoprene, Flatloc and external key pocket & loop. Design which has less seams, advanced super stretch and quick dry properties.

HONEY OCEAN & EARTH HONEY HI CUT LS Code: SLWE02 Colourway: Black RRP: $149.00 Available: September Description: Front zip, printed yardage side panels, 360 ultra stretch neoprene, flat lock seam, stream line panelling for comfort fit.

34/ Australasian Surf Business Magazine issue #77

PREMIUM 2X2 SPRING SUIT Code: G3-22PRCZSP Colourway: Black RRP: $200.00 Available: September

BILLABONG PRO SERIES JACKET Code: 9771170 Colourway: Black RRP: $169.99 Available: August

QUIKSILVER HIGHLINE + SPRINGSUIT Code: EQYW503005 Colourway: Black/Grey RRP: $299.99 Available: August Description: For Summer17, Quiksilver debuts new materials, new styling and a the most commercial colour pallette in years.

At $229 the Highline+ CZ springy will be a winner.

PATAGONIA MEN’S R1® LITE YULEX® FRONT ZIP LONG-SLEEVED SPRING SUIT Code: 88454 Colourway: Black RRP: $349.95 Available: September Description: A high-performance, neoprene-free spring suit made of 2mm 85% Yulex® natural rubber/15% synthetic rubber with 100% recycled polyester lining and floating front zip entry; the natural rubber is derived from sources that are Forest Stewardship Council® certified by the Rainforest Alliance. Suggested water temperatures: 18-23° C.

THE CRITICAL SLIDE SOCIETY WRUNG OUT WETSUIT JACKET Code: SWR1705 Colourway: Phantom RRP: $169.99 Available: October Description: The jacket TCSS has become well known for. Now just with a lil extra multi print flare. Front zip, all over 2mm. Good to go.

ADELIO CONNOR ZIPPERLESS 2 MM STEAMER AND SHORT ARM STEAMER Code: CZPL2S Colourway: Slate RRP: $389.95 Available: September Description: Introducing the new Zipperless model to the range of Connor steamers. The 2mm steamer is perfect for the transition period heading towards warmer waters.

Completely sealed and re-inforced with a new lightweight stretch tape.

XCEL INFINITI 1.5 WELDED JACKET Code: MN150ZW7 Colourway: Black RRP: $149.99 Available: July Description: High Performance, stitch-free welded seams. Premium 100% Stretch Neoprene. Adjustable waist with a Loop it or Lose it! tie loop and elastic cord/cinch for an ideal fit.

VISSLA 1MM PERFORMANCE JACKET L/S Code: MW018EPEJ Colourway: Black RRP: $119.99 Available: October Description: 1mm summer jacket with Vibes stripe at back neck

SANTA CRUZ ORIGINAL DOT WETSUIT VEST Code: SC-MB7553 Colourway: Black RRP: $139.95 Available: October Description: 1.5mm neoprene, quick dry, seamless paddle zones, flat lock construction, chest print.

O’NEILL BAHIA L/S SPRING 2MM Code: 4282OA Colourway: Indigo/ Navy/ White RRP: $169.99 Available: August Description: UltraFlex DS Neoprene, minimal seam design, Flatloc, advanced super stretch and quick dry properties.

TRM WETSUITS SAMURAI – 2/2 L/S VEST TOP Code: TRM14 Colourway: Black/Stripes RRP: $249.99 Available: Now Description: All wetsuits are Custom fit and measured. There are 16 colour options. Every wetsuits is hand made in Japan using the best quality Japanese Neoprene. Company logo branding is optional. TRM specialises in collaboration team projects.

TRM specializes in collaboration team projects.

BILLABONG WAY BACK ONEPIECE Code: 6772301 Colourway: Lilac RRP: $119.99 Available: December Description: A blend of decades, a throwback to a time where girls' surfwear was borrowed from the boys.

Soft fabrications, retro graphics and feminine colourways worn in an ultra modern way. Surf capsule is here to stay.

VOLTE PREMIUM 2X2 SHORT SLEEVE STEAMER

SANTA CRUZ WOMENS ORIGINAL DOT FILL 2 PIECE Code: SC-WBD7455 Colourway: Sherbet RRP: $69.95 Available: October Description: 1mm neoprene, quick dry, flat lock construction, chest print, chunky zislon zip.

Code: G3-22PRCZSALL Colourway: Black RRP: $275.00 Available: September Description: GBS stitching, kinetic kneepad, memo-flex neoprene, silicone fused sleeves, stretch paneling, ultra free lining.

35/

buyers’ guide Hardware Summer 2017

GORILLA BONER Code: GST-059-SB-BNR Colourway: Skeleton Size: 5'9 RRP: $49.95 Available: Now

CREATURES OF LEISURE BLACK EDITION TRIPLE SHORTBOARD 6'3 Code: CS38063BK Colourway: Black RRP: $279.95 Available: July

QUIKSILVER MESH SOCK 6'0 AND 6'6 Code: EGLSSKMH60 Colourway: Black RRP: $49.99 Available: Now

DAKINE RECON THRUSTER DOUBLE COVER 6'3 Code: 1000354 Colourway: Black RRP: $260.00 Available: Now

CHANNEL ISLANDS CX1 SINGLE BOARD COVER 6'3 – 7'0 Code: 17334100107 Colourway: Charcoal / Black Trim RRP: $159.95 - $169.95 Available: Now

FCS 3D FIT DAY BOARD COVER Code: BDY-060AP-TEL Colourway: Teal Size: 6'0 RRP: $119.95 Available: Now

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

SURFICA SURF AND SUP Colourway: Silver with Black trim Size: From 5'8 Surfboards to 12' SUPs RRP: From $75.00 Available: Now

FK UNLIMITED CO. FK 6'0 ALLROUNDER SURFBOARD COVER Code: 1300 Colourway: Silver/BlueZip RRP: $69.95 Available: June

OCEAN & EARTH DOUBLE COMPACT 6'0 – 7'2 Code: SCSB04 Colourway: Black/Red RRP: From $240 Available: Now

36/ Australasian Surf Business Magazine issue #77

L I GH T ER WARMER MO RE F L EX I B L E MOR E AF FO RDAB L E

JOSH K ERR W W W. P E A K .CO M . AU

buyers’ guide Hardware Summer 2017

QUIKSILVER CARBON LC6 CARBON INLAY PAD Code: EGLQSPDLC6 Colourway: Black RRP: $65.99 Available: Now

BALIN LITTLE GRIPPER Code: 04-G066 Colourway: Orange/Black RRP: $49.95 Available: Now

FCS FILIPE TOLEDO SIGNATURE TRACTION Code: SKU 27717 Colourway: Coal/Lime RRP: $64.95 Available: May 2017

OCEAN & EARTH OWEN WRIGHT SIGNATURE TRACTION Code: TP23 Featured Colourway: Lime RRP: $55.00 Available: September

GORILLA TRES Code: 27755 Colourway: Flagged RRP: $54.95 Available: December

FK UNLIMITED CO. FK BLEND Code: 1210 Colourway: Black/Blue RRP: $45.95 Available: June

DAKINE PARKO PRO PAD Code: 10001064 Colourway: Lagoon RRP: $59.99 Available: July

CHANNEL ISLANDS BOBBY MARTINEZ SIGNATURE FLAT PAD – 3 PIECE Code: 19468100 Colourway: Red/White/Green RRP: $59.95 Available: Now

TOOLS SURF PRODUCTS JAMIE O’BRIEN – J.O.B. SIGNATURE MODEL Code: 4002002 Colourway: Fluo Pink RRP: $59.99 Available: Now

SURFICA 5 PIECE Colourway: Black/White RRP: $49.95 Available: Now

FUTURES AL MERRICK ALPHA CARBON TWIN FIN Code: ATA-011503 Colourway: Black RRP: $99.95

CREATURES OF LEISURE ICON VERT Code: FVIRM13LI Colourway: Lime RRP: $99.95 Available: July

FCS FCS II FLOW Code: FFLO-PG03-LB-90-R Colourway: Red Size: 8' RRP: $124.95 Available: September

FUTURES JACK FREESTONE LARGE GEN SERIES TRI FIN Code: JFL-021409 Colourway: White/Black/Pink RRP: $179.95 Available: May

CREATURES OF LEISURE MICK FANNING LITE Code: GMFL8BKCY Colourway: Black Cyan RRP: $64.95 Available: July

DMZ GLASS/NYLON FIN SETS AND KEY Code: 12-F0003 Colourway: Natural RRP: $39.95 set Available: Now

FCS FCS KOLOHE KOLOHE ANDINO ANDINO SIGNATURE SIGNATURE FIN FIN Code: Code: FKAL-PC02-LG-TS-R FKAL-PC02-LG-TS-R Colourway: Colourway:White/Grey White/Grey RRP: $169.95 Size: Large Available: October RRP: $169.95 Available: October

38/ Australasian Surf Business Magazine issue #77

black edition

LIM IT E D B OARDCOVER COLLECTION

Subtle to the eye but high in detail, the limited black edition boardcovers offer the unique styling, detail and construction of our day use, double and triple boardcovers in an understated colourway.

Contact your Creatures of Leisure representative or email cs@leisurecollective.com.au | #worldsbestaccessories

buyers’ guide Hardware Summer 2017

BALIN SUP STORM 10 WAIST (10MM) Code: 01-SUPSA Colourway: Black RRP: $79.95 Available: September

FCS 6'0 REGULAR ESSENTIAL LEASH Code: 2020-BLU-06F Colourway: Blue RRP: $47.95 Available: September

CREATURES OF LEISURE PRO 6 Code: LPR8006BKLI Colourway: Black Lime RRP: $49.95 Available: July

TOOLS SURF PRODUCTS STRONG 6FT Code: 4001626 Colourway: Black RRP: $36.99 Available: Now

QUIKSILVER THE GROM 5'0 Code: EGLQSLHGRM Colourway: Fluro Yellow RRP: $39.99 Available: Now

GORILLA 6' COMP Code: GORI-MUS-06C Colourway: Mustard Lengths: 6' RRP: $42.95 Available: September

DAKINE PRO COMP 6'0 X 3/16" Code: 10001089 Colourway: Lagoon RRP: $39.99 Available: July

OCEAN & EARTH PREMIUM 6'0 ONE XT LEASH Code: LP60 Colourway: Black RRP: $50.00 Available: Now

FK UNLIMITED CO FK SUPERIOR 6'0 Code: 1281 Colourway: Blue/White RRP: $36.95 Available: June

HANNEL ISLANDS BOBBY MARTINEZ SIGNATURE HEX COMP CORD 6'0 Code: 19480100645 Colourway: Red & White Cuff / Green Cord RRP: $42.95 Available: Now

SURFICA Colourway: Clear Lengths: 6'0 – 10'0 RRP: From $34.95 Available: Now

FCS COMP LEASH Code: 2019-FGN-05F Colourway: Fluro Green Lengths: 5',6' RRP: $42.95 Available: September

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ActionWatch INSIGHTS

ANALYSIS OF HARDGOODS, WETSUITS AND SUNGLASSES

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 SURF HARDGOODS YEAR-OVER-YEAR SALES GROWTH 40%

All Surf Hardgoods

35%

Surfboard Fins

30% 25%

Surfboard Leashes

20% 15%

Traction Pads

10% 5%

Surfboard Bags

0% -5% -10% -15%

This chart of selected surf hardgood classes clearly shows the declining sales growth trend that started in the second half of last year and became deepest in the first two months of this year.

-20% -25% -30% Q1 '16 Jan-Mar

Q2 '16 Apr-Jun

Q3 '16 Jul-Sep

Q4 '16 Oct-Dec

Q1 '17 Jan/Feb

SURF HARDGOOD ACCESSORIES AVG $ SALES PER STORE

$1500

Surfboard Fins Surfboard Leashes

$1200

Surfboard Bags Traction Pads

$900

$600

$300

0 Mar 2016

Apr

42/ Australasian Surf Business Magazine  issue #77

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan 2017

Feb

Sales volumes were fairly consistent across the year except for the much higher levels in December and January. The average store on the ActionWatch retail panel earned almost $1500 in revenue during December from sales of surfboard fins.

SURFBOARD FINS

SURFBOARD LEASHES

PERCENT OF UNITS SOLD

PERCENT OF UNITS SOLD 2016

2016 2015

›$125

$100-$125

$50-$60

$75-$100

$40-$50

$50-$75

$30-$40

$25-$50

$20-$30

‹$25

‹$20

10%

0

20%

30%

40%

2015

›$60

0

50%

There was a fairly significant shift last year in the surfboard fins category with a large increase in percentage of units sold in the $75$100 range and a corresponding decrease in the next lower price range.

5%

10%

15%

20%

25%

30%

35%

Surfboard leash prices shifted only slightly last year compared to the prior year. The $30-$40 range remained the most popular price point with over a third of units sold.

SUNGLASSES

TOP-6 SUNGLASSES STYLES

AVG $ SALES PER STORE

SEPT 2016 THROUGH FEB 2017 (IN ALPHABETICAL ORDER)

$15000

Avg $ Sales

$12000

$9000

$6000

$3000

BRAND

STYLE

AVG PRICE

Dragon

Remix

$194

Dragon

The Jam

$195

Oakley

Batwolf

$215

Oakley

Holbrook

$200

Oakley

Turbine

$229

Otis

Young Blood

$184

SUNGLASSES FRAMES

SUNGLASSES GENDER MIX

PERCENT OF REVENUE SEPT 2016 THROUGH FEB 2017

PERCENT OF REVENUE SEPT 2016 THROUGH FEB 2017

0 Mar

Apr

May

June

Jul

Aug

Sep

Oct

Nov

Dec

Jan 2017

40%

Metal

Male

Plastic

Female

Feb

The average store on the panel earned revenue of almost $15,000 from sunglass sales in December 2016 whereas sales in June were under $2,400.

SPRING WETSUITS

TOP-6 WETSUIT JACKETS

(SHORT LEGS, SHORT SLEEVES) PERCENT OF UNITS SOLD

AVERAGE SALES PRICES FROM 2016 (IN ALPHABETICAL ORDER) 2016

BRAND

STYLE

$225-$250

Billabong

Foil 2/2

$200-$225

Billabong

Pro Series 1mm L/S

$153.55

$175-$200

Hurley

Fusion 101

$117.14

$150-$175

Rip Curl

Aggrolite 1.5mm L/S

$163.91

$125-$150

Rip Curl

E-Bomb Pro 1mm L/S

$177.98

$100-$125

Vissla

Performance 2mm

$107.11

›$250

2015

AVG PRICE $77.25

$75-$100 $50-$75 $25-$50 ‹$25 0

5%

10%

15%

20%

25%

30%

The peak price point shifted down from the $75-$100 range in 2015 to the $50-$75 range in 2016.

43/

FACES

RIPCURL PRO MEDIA NIGHT

DRAGON SUNDAY SESSION

COSMIC PSYCHOS, TORQUAY

KOMUNE, GOLD COAST

44/ Australasian Surf Business Magazine  issue #77

RVCA BAYWASH

DRAGON PRESENTS EASTER SATURDAY AT TORQUAY HOTEL

BACCON EASTER

NIXON FAST TIMES

BYRON

TORQUAY

MODOM STEVE BACCON EXHIBITION - TORQUAY

MELBOURNE

45/

FEATURE ARTICLE / WORDS BRIAN WALKER

TALKING SHOP – THE RETAIL DOCTOR

Don’t Blame the Referee Let’s Concentrate on the Game Plan

THE PESSIMIST COMPLAINS ABOUT THE WIND; THE OPTIMIST EXPECTS IT TO CHANGE; THE REALIST ADJUSTS THE SAILS. – William Arthur Ward Study the truly great business performers in retail and other sectors and you see some startlingly simple commonality to their success: // A strong focus on the end game // Passionate engaged cultures (the internal brand) // A fundamental belief // Speed to market // Agility in decision making // Customer centricity at the heart of their business, not just in the implementation // Investment in continuously listening and improving while focusing with laser-like intensity on all the ‘basics’ of their business Building great independent systems and frameworks across all operational processes of a retail ecosystem are the foundations of every great and ‘fit’ company. Their profit is always substantially higher than those of companies that don’t reinvest in themselves to align strategy and processes to ensure market fitness.

Conversely, many less successful businesses tend to blame external factors.

In fact many of the global and domestic retail operations delivering exceptional results have tended to take advantage of a downturn by tailoring their message and offer and focusing on all items within their control. Focusing on getting fit for business and then fit for growth rather than blaming the ‘downturn’ or ‘disruption’.

Here the great parallels between the ways we conduct business and the functioning of an elite sports team play a part. For example, how many times do we see sportspeople blame the referee for a poor decision which is perceived to have cost the game, as in businesses, some of the less fit have tended to blame economic circumstances – such as the global financial crisis – on their unfit business performance and failing attempts at building a strong multichannel ecosystem.

How we deal with the “in the moment” situations, while positioning ourselves for the inevitable change in the economic cycle is key to our business fitness. We know that only the truly focused businesses play the game as full on participants, knowing that winning is within their power and is the ultimate goal.

As Amazon launches in the Australian market in 2018, how many media statements will we see in 2018 and beyond with retailers blaming Amazon’s entry or strategy for their downfall? Yes it will be disruptive, but there is no doubt that many of these businesses may be attempting to cover up internal business issues that would have impacted the company’s future regardless of Amazon’s entry.

Amazon will certainly shake up the status quo, but it’s also an exciting time for innovation and growth for the Australian retail sector. We are currently working with a series of clients on their strategies for living alongside Amazon, bringing in insights from our international partners from many countries around the world who have clients several years into this journey. It may seem daunting, but Amazon’s entry is certainly not the apocalypse.

Have you ever noticed how most events that impact on our business fitness happen within our control and not the other way around?

If you’re considering your ‘living alongside Amazon’ approach, don’t blame the referee.

Just remember the importance of having:

46/ Australasian Surf Business Magazine issue #77

// A highly developed game plan suitable for YOUR unique business: what are your 3-5 year goals for the business? Ignore what others are doing, look at your internal capabilities, ethos and goals and define them in a strategic game plan. // Skillful and committed players: now is the time to increase focus on training, measuring and lifting the bar. // Brilliance in the basics of delivering great value through outstanding customer service.

This will bring significant value in the form of customer loyalty in the long term. // Invested in sound counsel to provide clarity and a challenging perspective. // Fidelity to what you are great at, and let the other “opportunities” pass on by. We see many retailers time and time again get star-struck by new digital technologies, but is it truly worth the investment? // Kept your business offer innovative and fresh, if you want to motivate new customers to do business with you.

Never forget, most events that impact our business happen within our control and not the other way around. ‘Blaming the referee’ is not the language of fit businesses. Focus on what you can control.

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.