SGB Weekly 1233 by SportsOneSource

ISSUE 1233 AUGUST 13, 2012

The Weekly Digital Magazine for the Sporting Goods Industry

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ISSUE 1233 AUGUST 13, 2012

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The Weekly Digital Magazine for the Sporting Goods Industry

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SGB PROFILES

NEWS

4 6 8

BY THE NUMBERS 10 KEVIN WULFF President and COLUMBIA SPORTSWEAR CEO Asics America Expands Relationship with Chinese Distributor Swire FEATURES MOVERS & SHAKERS SOREL Helps Retailers Move 2012 16 KARHU Runners Industry Inventory Report For July COTTON DYEING Technology 20 ADIDAS Unveils First to Dramatically Reduce Water Use Natural Running Collection BROOKS SPORTS Names Nation’s 25 Most Inspiring High School DEPARTMENTS Running Coaches

22 JOB CLASSIFIEDS

ON THIS PAGE: In June, Asics installed a series of unique, 3-D retail displays dripping with color at over 500 Foot Locker and Lady Foot Locker locations throughout the U.S. as part of its "Colors That Run" campaign. Irreverent artist Pinky Taylor, best known for his Japanimation style paintings, helped launch the project by performing live artistic demonstrations for Foot Locker customers in San Diego, Chicago, New York City and Miami.

Copyright 2012 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers and contributors to SGB WEEKLY are not necessarily those of the editors or publishers. SGB WEEKLY is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in SGB WEEKLY may not be reproduced in whole or in part without the express permission of the publisher. SGB WEEKLY is published weekly by SportsOneSource, LLC, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450. Send address changes to SGB WEEKLY , 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450

AUGUST 13, 2012 | SGBWeekly.com

NEWS

BY THE NUMBERS 18%

Bauer Performance Sports, Ltd.'s fourth quarter revenues grew by 18 percent to $80.5 million due to strong growth in sales of ice hockey equipment. Overall revenues increased 22 percent for the 12 months ended May 31, led by strong performance in all product categories.

41.2%

K-Swiss, Inc. reported domestic revenues decreased 42.1 percent to $18.7 million in the second quarter, and international revenues decreased 20.9 percent to $26.0 million for the same period. Total worldwide revenues decreased 31.5 percent to $44.8 million for the second quarter, compared with $65.3 million in the prior-year period. The company narrowed its loss for the second quarter to $11.6 million, or 33 cents a share, from $20.0 million, or 56 cents, a year ago.

14%

Nautilus, Inc. reported net sales for the second quarter of 2012 totaled $39.6 million, an increase of 14.0 percent compared to net sales of $34.7 million for the same quarter in 2011. The company’s Direct business posted a 10 percent increase in net sales, while its Retail business generated a net sales increase of 22.9 percent in the quarter.

13%

Black Diamond, Inc. reported that total sales in the second quarter of 2012 increased 13 percent to $31.9 million, compared to $28.3 million in the second quarter of 2011. The growth in sales was attributed to a number of new and existing climb and mountain products sold during the period.

18%

Adidas posted a better-than-expected second-quarter net profit and stepped up its full-year forecast, thanks to earnings from Euro 2012 and the Olympic Games. Diluted earnings per share for the second quarter increased 18 percent to €0.79. The group said net profit in 2012 is now projected to grow by 15 to 17 percent, from its previously forecast 12 to 17 percent. 4 SGBWeekly.com | AUGUST 13, 2012

COLUMBIA SPORTSWEAR EXPANDS RELATIONSHIP WITH CHINESE DISTRIBUTOR SWIRE Columbia Sportswear Co. is forming a joint 60/40 venture agreement with Swire Resources, Ltd. to expand the brand, as well as its subsidiary Mountain Hardwear, in China. Swire is a subsidiary of Swire Pacific, Ltd. and has been Columbia’s independent distributor in China since 2004, and in Hong Kong and Macau since 2002. Swire’s network of wholesale dealers operates approximately 530 Columbia Sportswear and 45 Mountain Hardwear retail locations in 135 cities. According to the company, Swire also directly operates more than 70 Columbia branded retail shops in seven cities. Swire Resources generated $123 million in sales for Columbia in China in 2011. Plans include continued expansion of dealer-operated and owned retail locations in additional cities with double-digit growth again expected in 2012. The new joint venture does not begin operations until 2014 and carries a 20-year term. Columbia will own 60 percent and Swire 40, with profits and losses split in those proportions. "We are very excited about extending our relationship with Swire Resources to pursue the significant long-term growth opportunities in China," said Tim Boyle, Columbia's president and chief executive officer. "During the past eight years as our exclusive independent distributor, Swire has established Columbia Sportswear as an authentic outdoor brand in China, achieving a leading market position based on strong emotional connections with consumers and superb operational capabilities. Swire's expertise and deep understanding of Chinese consumers are vital to driving continued growth of our brands in this important market."

FROM TOP: DOMINANCE MID // MULTITUDE // BLOWOUT 2

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NEWS

MOVERS & SHAKERS Whistler Blackcomb Holdings, Inc. announced that Kevin Smith will resign as executive vice president and chief financial officer for personal reasons effective September 10, 2012. On that date, Dave Brownlie will be appointed interim CFO of the corporation, in addition to continuing in his roles as president and chief operating officer. Lady Foot Locker announced that actress Katie Cassidy has joined Lady Foot Locker as a brand ambassador and celebrity stylist. The National Interscholastic Cycling Association (NICA), which is dedicated to making mountain biking a mainstream high school sport, appointed Doug Selee as executive director. In this role, Selee will be responsible for helping NICA achieve its goal of growing coast-to-coast by 2020. C4 Waterman added legendary surfer/ shaper Mickey Muñoz to its design team. Backbone Media, LLC promoted Laura Patten to the newly created position of associate media director. Backbone handles the media for a broad portfolio of clients that includes New Belgium Brewing, Eddie Bauer, Black Diamond, Telluride, Sun Valley and many more. DVS Shoe Company announced that it will be continuing its partnership with its iconic skate athlete Daewon Song. On, the running shoe company built on patented Swiss technology, has named six running shoe industry veterans with nearly 50 years of combined experience serving specialty retailers to its North American sales force. The new additions are Jonathan Cook, John Jeub, Amy Johnson, Jon Madsen, Cyle Sage, and Max Smith. 6 SGBWeekly.com | AUGUST 13, 2012

- Leila Janah, founder and CEO of non-profit Samasource

SOREL HELPS RETAILERS MOVE 2012 INVENTORY In order to drive traffic to its stores before the winter buying season, Sorel announced its “Get Your Boots Dirty” campaign, primarily aimed at female consumers. The campaign is designed to help retailers still sitting on inventory due to last winter’s warmest temperatures on record in the last 100 years. The promotion launches this month in print and web-video. It features images of independent, creative and inspiring women from diverse disciplines living their passions, including Leila Janah, founder and CEO of non-profit Samasource. Janah is shown wearing Sorel boots traveling the world on a mission to create jobs for disadvantaged women. The campaign is also meant to illustrate Sorel’s blending of fashion and function to move beyond its outdoor heritage. “Get Your Boots Dirty” was created by Sausalito, CA-based advertising agency Butler, Shine, Stern & Partners (BSSP) in collaboration with photographer Tim Barber and videographer Caleb Seppala. “We selected real women who embody the spirit of the brand. Women of character who have substance and style. By sharing their stories in Sorels, we hope to celebrate and inspire the same sort of passion in women everywhere,” said Gabrielle Tigan, art director from BSSP.

NEWS

COTTON DYEING TECHNOLOGY TO DRAMATICALLY REDUCE WATER USE A new company has been formed that is providing technology to not only eliminate the use of environmentally harmful chemicals in cotton dyeing but also to significantly reduce the amount of water and energy used in the process. ColorZen, LLC is making its new technology available to retailers and brands for Spring and Summer 2013. According to the company, the technology reduces water consumption by 90 percent and can dye the same amount of cotton in less than one third the amount of time. The process is also alleged to improve color fastness and produce brighter colors and new colors. The process is scalable and works by creating a strong natural affinity between the dye and the fiber, with a technology that is free of harmful substances. ColorZen has received the seal of approval from Oeko-Tex Standard 100, the widely accepted global certification for textiles. The technology was recently unveiled at The Continuum Show in New York, a trade show focusing on sustainability in textile manufacturing. According to Textile World, the process involves the pretreatment of cotton using a process that renders the fiber more receptive to dye intake, does not use salt or other chemicals to fix the dye, and enables the color to be achieved using half the amount of dye with a 97 percent exhaustion rate. “ColorZen technology pre-treats the cotton fiber making the dyeing process efficient and sustainable by vastly reducing the amount of water, chemicals and time needed to dye cotton,” said Michael Harari, president of ColorZen,LLC. “ColorZen technology represents the future of the cotton dyeing industry. We will now be able to offer brands, retailers, and manufacturers a sustainable choice for cotton dyeing that will protect fresh waterways and reduce energy consumption.” 8 SGBWeekly.com | AUGUST 13, 2012

BROOKS SPORTS NAMES NATION’S 25 MOST INSPIRING HIGH SCHOOL RUNNING COACHES Brooks Sports, Inc. announced its top 25 inspirational high school track and cross country coaches for 2012, picking from a pool of more than 1,300 nominations. Brooks will share with the running community each coach’s story on facebook and a 2012 Inspiring Coach of the Year will be announced in September. Fans can learn about and vote for their favorite coaches by September 2 at facebook.com/brooksrunning. “Running at the high school level can be a very powerful experience. These young athletes have many options for how they spend their free time, but they’re choosing to participate in active, community-rich programs that ideally inspire a lifetime of running and healthy wellbeing,” said Jim Weber, president and CEO of Brooks Sports, Inc. “This year we received very meaningful stories about inspiring coaches who lead these programs, and we’re excited to honor them for the immense dedication they’ve given their athletes and our sport.” Inspiring Coaches finalists receive $5,000 in Brooks performance running footwear, apparel, and accessories for their team, $500 in cash for additional team expenses, and membership into the Brooks Inspire Daily program, an invitation-only influencer group. The 2012 Inspiring Coach of the Year will receive an additional $5,000 in Brooks gear, $2,000 in cash and a trip for two to the 2013 Brooks PR Invitational. Brooks created this program in February 2011 to honor coaches across the nation who put in extra time and resources to build and keep their programs strong, make a lasting difference in the lives of their athletes, and inspire everyone in the community to run and be active. Brooks more than doubled its investment in the Inspiring Coaches program for 2012 by increasing the number of finalists from 10 to 25.

SGB PROFILES

PRESIDENT AND CEO ASICS AMERICA Since taking over as Asics America’s president in February 2011, Kevin Wulff has been on a mission to erase the ‘complacency’ that had crept into the company after leading the run specialty market for more than two decades. By Thomas J. Ryan

he directive is exemplified by Asics’ new ‘Stop At Never’ marketing campaign. “It was more than a marketing campaign,” said Wulff. “It was our way of putting a stake in the ground that every single department - whether operations, finance, sales, marketing, credit, customer service - had to continually look at themselves and challenge the status quo. We had gotten complacent. We had done the same thing year after year for the last 10 or 15 years.” That complacency caused Asics last year to lose its spot as the leading brand in the run specialty channel to Brooks Sports. Poor customer service was largely the culprit, but Wulff also admitted that Asics’ marketing had become “stale” and its product pushes failed to adequately address the lightweight and minimalist approaches that have been flooding the marketplace over the last two years. Embracing the 10 SGBWeekly.com | AUGUST 13, 2012

Asics America President & CEO, Kevin Wulff

‘Stop At Never’ mantra in addressing its shortcomings and reclaiming its pinnacle position among running brands, Asics America has regained momentum with sales back growing robustly in the first half of the current year. Several growth initiatives both in running as well as categories such as walking, training, trail and team sports are expected to accelerate growth in the years ahead. With a recharged team, Asics America remains committed to its goal of reaching $1 billion in revenues by 2015, up from around $750 million in 2011. “We used ‘Stop At Never’ as a way to push ourselves, to develop our comprehensive plan of never stop innovating, and more than anything else to never stop questioning,” said Wulff. “What can make ourselves better in the many facets of our business?

From that standpoint, I think we were extremely honest and I think we’ve made a lot of progress in changing things that were broken, changing things that were stale and never questioning how we can improve. We have made a tremendous amount of improvement in the last 12 months.” Here, Wulff elaborates on the challenges Asics America has faced in recent years, its reinvention, emerging growth initiatives, and the overall running market. There’s a perception that you’ve brought a lot of change to Asics America? Is that true? By Asics’ standards, that’s definitely true because there’s been so little change here. And we did bring in a lot of new players all across the company, not in just one particular area. In fact, our human resources group is a brand new group. We set up a plan to reach our future business objectives. We spent a lot of time creating the right structure, a tremendous amount of time reinforcing the culture that’s the core of everything we do, and then built a lot of different packages and ways to bring in more great people. There’s also a lot of people who have been here for awhile. What we’ve done really well is we now have one team all working together in a way that’s really positive, and is the result of driving a lot of this positive change. Can you talk about the service problems? We had become very archaic, non-responsive and very complacent. There’s a lot of data that proves that our customer service and our ability to provide what we call ‘gold standard’ customer service had struggled. We also put in a new SAP system five or six years ago and unfortunately it was very challenging. This year we had the opportunity to open a new 600,000 square-foot distribution center and we’ve used that occasion to change, update and fix many things. Obviously when you open a new distribution center, you have to realign all of your systems as well. We had a very challenging summer and it was difficult to work with us. We’ve listened, we’ve learned and we’ve made a lot of changes and we’ve invested in that side of the business. We think we have come out of this with a much better ability to deliver “gold standard” customer service.

What changes did you make? Our new B2B site is up and running and growing by 1,000 percent literally every single month. We rethought all our processes. Just the ability to be easier to work with, to be transparent, have on-time and accurate deliveries, we feel we’ve made major strides. If we have issues, our ability to resolve them has been changed. We know that in overcoming many years of challenges, it will take some time to regain competence. We’re going to be announcing a recovery plan to our Gold accounts, which is running specialty. It’s a series where each month we will have a new offering and an explanation of how a lot of our changes have taken place. In addition, with our Gold accounts we have not had for whatever reasons brand ambassadors or what some call tech-reps. Internally, we’re calling them ‘Bandits.’ They will work with their sales staff at running specialty accounts to help them with marketing and to teach their sales associates about the changes in our products. The program was launched in January and we have six ‘Bandits’ now. We’ll be doubling the number of them in the second half of the year and adding more in the future. It’s just another way for our Gold accounts to communicate more directly with a group that is very well equipped to train, educate and respond. Finally, we have a new head of customer satisfaction who is working feverishly. We‘re returning phone calls and all of our service metrics are at levels we’ve never seen before in terms of trying to improve our customer satisfaction. It’s a tremendous investment, a lot of reengineering, and now hopefully the proof will be in the numbers and our numbers are really exciting in 2012. We’re growing at a very rapid rate and we’re thankful that our customers are standing behind us. To what degree was product an issue? The main issue has been customer service but I think it’s safe to say that we had also gotten complacent as it relates to our product. As one of our key initiatives, we reengineered and redesigned a lot of our products. We labeled the initiative, ‘Own Running From Top To Bottom,’ and we feel we’ve done a great job. We’re re-mastering a lot of our legends. We’re infusing great color into our core running shoes – the Kayano and the GT 2000 will launch in October, as well as the Nimbus, Cumulus and Noosa. We’re winning many

awards again for product. And we also have great things going with our price point running product as well as our 33 lightweight collection. The greatest success we’ve had is remastering the legends.They’ve all been redesigned and the response has been great. The biggest negative we’ve had in the first half of 2012 is that we’ve sold out of product with some of our key styles in the 2000s, 2170s and Kayanos because of our forecasting. The momentum is back and we feel very confident that we’ll be ready to supply to meet demand in the second half. How has the 33 collection faired? We’re receiving great feedback and I think that’s one of the ways we’re getting younger with 16-to-25 year-old runners. It’s very competitive. It’s very challenging. But we’re really pleased with our progress. We think the second generation of our 33 product will be even stronger. We have new innovations on the technical side to our lightweight 33 story we’re excited about. Some of your competitors have clearly capitalized on the whole minimalist trend. Did being late to the party hurt Asics? We don’t use the term ‘minimal.’ But we were a little slow to respond and to move in this direction toward lightweight product. As a corporation we’re disappointed because I think most people know that we have always been very lightweight. We’ve been a leader, particularly around our track & field product, in finding ways to take weight out. Even when you look at the GelKayano, the GEL-Kayano women’s is a little under 9 ounces and the men’s is just under 11 ounces so it could almost fall into that category. As it relates to where we’re at now, we’ve learned a lot, we’ve had success, and we’ve struggled at times as the whole world has jumped on the lightweight bandwagon. But we’ll be announcing at the appropriate times various new technologies driven around the different biomechanical needs. It’s not about quantity for us. It’s about staying true to who we are. Based on that philosophy, you’re going to see some great innovations with some tremendously lightweight product. We’re also wrapping our marketing around our innovations, which we haven’t done a lot in the past. It’s becoming more spirited around things like ‘Stop at Never.’ And truly our ‘Stop At Never’ mantra includes our product team. We’re setting up an innovation team in Irvine that will support the team in Kobe, Japan to help us be closer to market in identifying trends and needs. AUGUST 13, 2012 | SGBWeekly.com

What specifically are you doing to regain momentum in run specialty? First, we’re giving our run specialty accounts guarantees and also many incentives to experience our new and improved customer service. There’s not a single thing in customer service, whether it be policies, processes or anything else that has not been touched. We’ll soon have our first mailer going out explaining everything. Second, we have identified various products that will be exclusive and/or early launches to our Gold accounts. For example, our GT-3000 will be sold only to our Gold specialty accounts. Its aggressive product launches and selective products just for running specialty. Third, we’ve got a setup that we’re going to offer to entice some of our Gold accounts who gave up on our old B2B site to have them visit our new B2B site. It’s taken us awhile to be perfect but we think we’re there. The response to our new site has been overwhelming in the last couple months. Finally, we’re getting rave reviews for our ‘Bandits’ brand ambassador program. We’re getting a lot of calls and notes, some halfjokingly, ‘It took you awhile.’ But shame on us for not being on the floors and not training and creating excitement within our Gold accounts. We feel we have an amazing group of trained professionals and that’s going over well. We’re also working closely with our sales reps to enhance performance through a tremendous amount of training. The last sales meeting they came in two days early for two days of training around systems, sales and product. How are you approaching the athletic specialty and full-line sporting goods business? Our business is still very strong in sporting goods and athletic specialty. We continue to segment our product closely and I think our overall distribution is cleaner than any other significant brand in the industry. We keep our map policies very tight and we continue to be the leader in margins in most cases but also the average selling price. It’s all very positive. I think the biggest advice that we’ve heard from those channels is that our marketing had become stale and a little old and so our ‘Stop At Never’ campaign has been well received. We’re getting more spirited as it relates to retail. We recently concluded an exciting campaign called ‘Colors that Run’ with Foot Locker and Lady Foot Locker that had tremendous success highlighting some great colors across our running line. Our media buys are also more focused on a broader sports consumer. Our commercials have been around the NBA playoffs, Wimbledon, Major League Baseball, NCAA sports, as well as football throughout the year. Our media spend has been much more impactful to an overall sports enthusiast and that’s been very well received. But you’re also seeing it in our presence at our marathons to smaller events. Every single one of our booths has been redesigned with more of a ‘Stop At Never’ attitude. There hasn’t been a single thing that hasn’t been touched through our marketing and the way 12 SGBWeekly.com | AUGUST 13, 2012

In January, Asics signed 2011 U.S. Open tennis champion Samantha Stosur as an ambassador in a multiyear deal as part of the brand's more aggressive push into tennis. In July, two-time National Collegiate Athletic Association (NCAA) singles champion Steve Johnson was added to its ambassador roster.

we spend money with our retailers. The best complement of all is our business is up by strong double-digits with all of our key mall and sporting goods retailers. Are you more aggressively targeting the famil-y shoe channel? We’re not pursuing more. In fact, it’s an area that has been slower for us as we’ve focused on fixing and reinventing ourselves within running specialty, athletic specialty and sporting goods. We’ve been and we are going to be launching more product in the $80 to $100 price point that we think will be exciting for all channels as well as family footwear. Obviously, it’s a channel in America that’s very important for a lot of Americans to get great value and we also anticipate renewed growth within family footwear. What are your plans for owned retail? We’ve had our flagship in the U.S. on 42nd Street in Manhattan open since 2009. Our second store in the Americas region opened in Sao Paulo, Brazil last August and that’s been doing very well. But the news is we’ll be opening five new factory outlet stores in the U.S. in the second half of the year. We’ve had outlets briefly but they were not managed well so this is a return and we’ve hired a new head of retail who will be focused on opening those stores. We needed a better venue to liquidate inventory. The outlets will open in Merrimack, NH; Livermore, CA; Sawgrass, FL; Woodburn, OR and another we’ll announce soon.

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How about growth outside running? One of the things we’re focused on and you’ll see in future campaigns is taking ourselves beyond running. Here in the U.S. we’ve been focused on core runners but product wise, as well as marketing, we’re making progress outside of running. Fox Example:

"STOP AT NEVER"

• In walking, the GEL-Kayano 18 was rated the best high• • • •

mileage walking shoe by Prevention.com. In training, Shape Magazine called our GEL-Upshot the best all-around gym shoe and awarded the GEL-Blur 33 TR the best training shoe. The GEL-Neo 33 was Health Magazine’s standout kick. We’ll soon release what we feel is a revolutionary shoe in the training category. The GEL-FujiRacer was one of the best-rated trail shoes by Trail Magazine and chosen as Editors Choice by Runners World.

Outside footwear, we hope to continue and accelerate growth in apparel and accessories. Our current apparel line is primarily focused on Gold accounts so a lot of our new lines to come will be targeted toward other channels. Obviously, marketing will drive many of these product initiatives and will be aimed at introducing ourselves to a younger consumer. We think we’re going to get good growth from the younger consumer as well. What are your plans for Onitsuka Tiger? We want to make the stripes hot again. The brand was founded in 1949. There are few brands with that much heritage. We have a tremendous amount of great archive-type product that we can bring back. We want Onitsuka Tiger to be viewed as a premiumleading Japanese lifestyle brand among young consumers. We set up a separate Onitsuka Tiger business unit – OT we call it – responsible for marketing, product and sales. This group only works on Onitsuka Tiger, they’re like brand managers. We’ll be expanding and launching a full product collection for Spring 2013 and have a lot of newness and freshness across different trade channels. We’ll include the return of our iconic Tiger Corsair and our Mexico 66 franchise. We’ve got phenomenal new accounts lined up so a lot of stores are jazzed about the direction Onitsuka Tiger is taking.Already, we’re receiving good growth in 2012, but the official launch where we think the Tiger line is going to get great momentum will be Spring 2013. What’s new on the team sports side? We’re introducing customized sublimation within our team sports uniform program, which is very exciting. We will also introduce some new categories within team sports that we’re still working out the details on. We think we’re bringing in some tremendous new product and sports marketing assets to the categories that we’re in: tennis, volleyball, field hockey and wrestling. You’ll 14 SGBWeekly.com | AUGUST 13, 2012

To demonstrate the technical aspects of Asics shoes, Asics created StopAtNever.com a site that houses short films, each about a different technical aspect of various Asics shoes. Click to play “Feet For Hands” which demonstrates the flexibility of Asics Omniflex-Pursuit shoes as they serve as gloves for athletic training as demonstrated by asics elite athlete, world champion wrestler Jordan Burroughs. definitely see our presence in wrestling at the London games as well as in other categories there. But we have very specific plans and personnel focused on building great product and marketing messages within the team sports categories. What do you think of newer brands attacking the running opportunity and the different messages out there? We’ve seen a lot of peaks and valleys across athletic footwear lately, toning being one. We at Asics continue to have one clear goal, which is improving lives and communities through sport. We’re a product-driven company and we’re very technical - that’s who we are. We do a tremendous amount of research and development. Runners know a product from Asics has been extremely well tested. We see brands and concepts that have a lot of highs and lows but we’ll continue to innovate and we’ll be there for the long haul. I also think if people try something else, they normally do come back. We’re seeing that as we speak because, especially when you talk about runners or any sport, they want product that performs and they know that Asics will perform. Are you still comfortable in reaching your goal of $1 billion in sales in the Americas by 2015? We feel we’re on target. We used part of 2010 and 2011 to listen, learn and take the ‘Stop At Never’ mantra to heart in all areas. We’ve improved dramatically and we’re not done. There’s still a lot we can work on and improve upon. We’ll have a lot of new things we’ll be announcing - a lot of innovation, whether it is product, marketing, or operations. We want to be the leader in all facets of our business. We’re excited about that improvement and the spirit of ‘never enough’ that we talk about internally. We want to be the best. That’s what Asics is all about. If we’re a good or a great company, sales increases always follow. We don’t focus on being number one. We focus on being ‘good’ and now we’re talking more about being ‘great.’ ■

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running industry

analyzed Karhu-sponsored industry report reveals, quantifies current trends By Aaron H. Bible

ccording to the July Karhu Runners Industry Report, the first in new ongoing research from running shoe company Karhu, in partnership with Brookmark Research Services, runners prefer to get their shoes from specialty running stores over online retailers or sporting goods stores.

Karhu and Brookmark surveyed 725 runners to find which factors influenced decision making when purchasing running shoes. Nearly half of respondents typically purchased shoes from a running specialty store, ahead of online retailers (32 percent) and major sporting goods stores (11 percent). Three reasons contributed to consumers purchasing decisions: product knowledge, running expertise, and overall customer service. These are the same reasons categories such as outdoor specialty have thrived in the face of big box and online retail. Price, convenience and selection ranked as the top three reasons customers shopped both online retailers and sporting goods stores, according to the study. The Karhu survey addressed, among other issues, the trend of “showrooming,” where customers shop a brick-and-mortar for size before purchasing online, and found that only one in eight respondents practiced that shopping strategy. Runners surveyed indicated “opinion influencers” in purchasing decisions as: store running specialists (48 percent), online shoe reviews (22 percent) and advice from friends (20 percent). “We know that running shoe specialists are key to finding the right fit for your foot and running style, and we want to support this customer service model,” Karhu president and CEO, Huub Valkenburg said in a statement. “That’s why Karhu will now be providing our specialty running store retailers with exclusive early product drops so they can lead the market with the latest in Karhu design and technology. We’ll also continue to invest in these specialists with knowledge clinics and education.” The survey confirmed that “fit” is the most important feature that drives purchasing decisions within specialty retail, with more than half (54 percent) of respondents listing it as their number-one buying factor. “Support” was the second most important factor at 16 percent. Combined results found the top overall purchase-decision drivers as fit (84 percent), support (49 percent), cushioning (37 percent) and lightness (32 percent).

Surprisingly, only four percent of customers cited “price” as their number-one decision making factor and only 23 percent placed it in their top three decision-making factors. The Karhu-sponsored survey also analyzed runners themselves, not just purchasing decisions. Of the more than 700 runners surveyed, 30 percent said they didn’t have a particular running style, while 24 percent said they were unsure of their style. This leads to the conclusion that much room exists for education and growth in the sport. Of those who identified with a running style, “efficient running” was most common (18 percent), followed by “natural running” (16 percent) and forefoot running (8 percent). No statistically significant portion of respondents identified with “heel drop” or “chi running” techniques. Almost all survey respondents reported running at least two days per week (94 percent), lending further validity to survey results. More than half (56 percent) reported running four or more days per week. An average of $99 per pair of shoes was reported. The number of pairs of running shoes purchased per year was divided at four or more pairs (29 percent), three pairs (29 percent), and two pairs (27 percent). Karhu is Finland's legendary running brand founded in 1916. It’s shoes set a standard for efficiency and performance early in the industry’s history, considered a hallmark of Finnish design philosophy. Owned by Karhu Holding, B.V., Karhu shoes and apparel are sold globally by running and outdoor specialty retailers. For more information, visit karhu.com. ■ Note: Brookmark Research is an online market research supplier which focuses on advanced Internet survey research solutions for companies, primarily for the development and growth of microbrands including those in the outdoor and sporting goods industries. Brookmark was established in 2009 by research and online technology veterans Alex Brooks and Dennis Mark. For more information, visit: brookmarkresearch.com.

yearly shoe expenditure: $300 per year How many pairs of running shoes do you purchase each year? (Average 3 pairs)

15% 1 Pair 27% 2 Pairs

29% 4 or More Pairs

29% 3 Pairs

how much do you typically spend on a pair of running shoes? (Average $99 per pair)

3% $140 or More 1% Under $50

10% $120 - $139

12% $50 - $79

40% $80 - $99

35% $100 - $119

purchasing decisions How do you typically purchase your running shoes? 5%

Internet Purchase Directly from a Running Shoe Company

11%

Visiting a Major Sporting Good Store

32%

Attending an Expo

Other

49%

Visiting a Specialty Running Store

Internet Purchase via an online retailer

Source: Brookmark Research

AUGUST 13, 2012 | SGBWeekly.com

ADIDAS UNVEILS FIRST NATURAL RUNNING COLLECTION By Thomas J. Ryan

didas unveiled its first natural running collection with the adipure Motion, Gazelle and Adapt. Following last November’s launch of adipure Trainer designed specifically for gym use, the running range consists of varying heel gradients to help strengthen the foot’s musculoskeletal system. • The adipure Motion, for beginners with a 11mm drop, is the first step to natural running; • The adipure Gazelle, with a 7mm drop, supports intermediate level runners; • The adipure Adapt with a 4mm drop is for the advanced natural runner. Mikal Peveto, director of running for Adidas America, said that the three-shoe collection provides options for athletes who want just the right balance of protection while allowing the foot to act more naturally. “With less shoe between the runner and the road, legs and feet experience the subtle changes in the gait cycle and you begin to run on the middle or front of your foot,” said Peveto. “Reducing the height between the heel and the forefront of the shoe encourages your body to run on the balls of your feet. Athletes can identify the best feel for their feet or choose to start with more support with the adipure Motion and then train down to the most minimal profile with the adipure Adapt.” The adipure Motion is designed for the runner looking to improve their midfoot running gait with a 22mm heel still accommodating heel strikers. Its angled heel promotes mid-heel strike while the design also helps promote more efficient heel to forefoot landing. The Gazelle is also designed for the runner looking to improve their midfoot running gait but has a greater minimalist feel than the Motion. It also features a 16mm heel to provide cushioning for longer runs. Designed to promote running on the balls of feet, the Adapt

adipure Adapt

is the Lowest to the ground model that allows for the greatest range of motion and highest range of muscular activity in the feet and legs. It’s designed for the runner that wants to be free from conventional footwear while training. Across the collection, adipure Techfit across the top of the shoe provides a structured sock-like fit and 360 degrees of flexibility. A stretch mesh and polyurethane pattern, developed through years of research by the Adidas Innovation Team and athletic and medical specialists, allows the foot to function naturally while providing support exactly where it’s needed. The pattern’s positioning was created through a stress analysis foot mapping system using 500 sensors on a bare foot that measure where the foot stretches on impact, where it needs the most freedom, and where it requires support. All three silhouettes, Motion, Gazelle and Adapt, are scheduled to drop in mid-August for $110, $100 and $90, respectively. They will be available at select retailers, including EastBay.com, Road Runner Sports, Running Warehouse, Holabird Sports and Rogue Running; and Adidas.com. ■

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LIDS Sports Group

Team Sports Sales Representative

Easton-Bell Sports

Industrial Designer - Football

Cocona, Inc.

Controller / Treasurer

LIDS Team Sports is looking for strong established candidates to join our sales team. We are looking for representatives in each of the following areas: Baltimore, Boston, DC/Virginia and Southern California. We are the leading Nike Team Sport dealer in the industry and we are looking for sales professionals with the following traits: high energy, self-starter, goal oriented, strong interpersonal and communication skills…

Reporting to the Riddell Football R&D Project Manager, the Industrial Designer - Football will be responsible for supporting the design and development of innovative, world-class football protection products and accessories. The Industrial Designer - Football will problem solve and brainstorm new ideas in search of the best solution via conceptual hand drawings to 3D CAD software images…

Looking for an experienced financial manager with ten years of international and local experience. Cocona is a fast growing, small technology company that is venture capital backed with immediate openings. Responsibilities include primary management with key suppliers, bank, monthly financials, salesmen reports, manage credit lines, and extensive cost analysis…

Walther Arms, Inc

GEAR for Sports

Power Force Apparel

Walther Arms, Inc. is seeking a Marketing Director to lead the marketing team for this newly-formed company. Walther Arms, Inc. will handle all the importation, sales, marketing, distribution and servicing of Walther products in the U.S. The successful candidate will have the overall responsibility for brand identity and mindshare. This individual will work with the Sales & Marketing team to understand our consumers and provide valuable industry and consumer research…

GEAR for Sports, a leading designer of quality custom active wear for over 35 years, has an immediate opening for an Independent Sales Rep in our Resort Market within our Arizona Territory. Looking for an energetic, results orientated, independent salesperson with a proven track record of success in a territory. We manufacture and sell logoed lifestyle apparel in the resort marketplace across the U.S…

Marketing Director

Independent Sales Rep, Resort Market - Arizona Territory

Independent Rep/Sale Agency Manager’s The focus of this position is to strategically develop and drive both in-line and custom product sales for Power Force Apparel through a variety of channels. The goal is to maximize in-line sales through new and existing customers along with developing new custom business through qualified lead generation in an effort to meet our weekly, monthly and annual sales goals. The right candidate is aggressive, analytical, strategic and…

Brooks Sports

K2 Sports

Mountain Hardwear

Product Planner I

Sales Specialist

The Licensed Apparel Developer is responsible for bringing the product line to fruition based on direction established by product and event management. From initial conception to final specifications and samples, the developer will ensure timely delivery of the product line with the greatest profit margin possible. The Licensed Apparel Developer will be the development driver for their assigned categories – Licensed, Special Make-up…

K2 Sports, located in Seattle, WA, has an opening for a Product Planner I to facilitate accurate and timely delivery of sourced product from supplier (manufacturer) to global distribution centers. Primary responsibilities include acting as main point of contact between vendor and K2, responsible for collecting, creating and monitoring PO placement on behalf of the U.S. and K2 subsidiaries…

We are seeking a sales specialist to manage all the coordination, planning, budgeting, and execution of sales events to include: Sales Meetings, Academy, Regional and National Trade Shows, and Retailer Events. Manage all brand education projects and events, seasonal clinic tools, internal staff training, retailer training programs and the creation of associated tools and resources...

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