issue 1242 October 15, 2012
The Weekly Digital Magazine for the Sporting Goods Industry
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2 SGBWeekly.com | OCTOBER 15, 2012
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Group Publisher Editor In Chief James Hartford james@sportsonesource.com 704.987.3450
ISSUE 1242 OCTOBER 15, 2012
Senior Business Editor Thomas J. Ryan tryan@sportsonesource.com 917.375.4699
The Weekly Digital Magazine for the Sporting Goods Industry
Contributing Editors Aaron H. Bible, Fernando J. Delgado, Charlie Lunan, Matt Powell Creative Director Teresa Hartford teresa@sportsonesource.com 704.987.3450 (x105) Graphic Designers Camila Amortegui camila@sportsonesource.com 704.987.3450 (x103) Sebastian Restrepo sebastian@sportsonesource.com Advertising Sales Account Manager / Northeast Buz Keenan buz@sportsonesource.com 201.887.5112 Advertising Sales Account Managers / Midwest Barry Kingwill & Jim Kingwill bkingwill@sportsonesource.com jkingwill@sportsonesource.com 847.537.9196 Advertising Sales Account Manager / Southeast Katie O'Donohue katieo@sportsonesource.com 828.244.3043
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Circulation & Subscriptions Subs@sportsonesource.com
Photo courtesy of Under Armour
NEWS
SportsOneSource Publications Print Magazine: SGB, SGB Performance Digital Magazines: SGB Weekly, TEAM Business Digital Newsletters: The B.O.S.S. Report Sports Executive Weekly News Updates: SGB, Footwear Business, Outdoor Business, Sportsman’s Business, TEAM Business
SportsOneSource Research SportScanInfo, OIA VantagePoint, SOS Research
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2151 Hawkins Street • Suite 200 • Charlotte • NC • 28203 t. 704-987-3450 • f. 704-987-3455 www.SportsOneSource.com
RUNNING SPECIALTY GROUP Acquires Texas’ Run On! SPORTS SOURCE ASIA Returns for its Sixth Year MOVERS & SHAKERS NEW BALANCE sees $2.5 Billion in Sales by 2013
SPOTLIGHT 10 SHOP OWNERS GO SHOPPING
Cover photo courtesy of Skora
FEATURES
12 14 18
NEW ETONIC Owners Look To Resume Growth SKORA - Sees Minimal Movement Just Beginning JUST FOR HER Under Armour is making it a priority to connect with women
DEPARTMENTS
22 I AM... SGB Joey Pointer, CFO Fleet Feet Sports
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
OCTOBER 15, 2012 | SGBWeekly.com
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NEWS
RUNNING SPECIALTY GROUP ACQUIRES TEXAS’ RUN ON! The Running Specialty Group (RSG), the 19-unit run specialty chain majority owned by The Finish Line, announced its first acquisition with five Dallas-based Run On! stores. Bob and Rebecca Wallace, current owners of Run On!, will remain with the company to help drive expansion in Dallas/Ft. Worth and surrounding areas. RSG is a joint venture between The Finish Line, Inc. and Denverbased Gart Capital Partners (GCP). Finish Line controls a 51 percent stake in the venture. Through a $10 million investment made in March 2012, GCP acquired a minority stake and took over management of all dayto-day operations as well as merchandising and the acquisition of additional running operators from its home base in Denver. Bob Wallace bought Phidippides, an existing running store, in March 1995 and renamed it Run On!. Over the past 17 years, Wallace and his wife Rebecca have expanded to five area locations. RSG operates 19 stores located primarily in the Northeast, Florida and Texas. It also recently launched an e-commerce site, Run.com. "Run On! is one of the premier running specialty retailers in the U.S. and their philosophy and operations dovetail perfectly with RSG's goal to create a greater connection and sense of community among runners,” said Chris Brown of GCP. "This is a great new platform for RSG because the team at Run On! has expertise in building community initiatives and helping everyday runners through a variety of training programs. It’s a perfect match for us and we couldn’t be more pleased with this as our first acquisition. And, most importantly, Bob and Rebecca are first-class people."
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Plans call for RSG to begin expanding in Texas and surrounding areas over the next five years. Wallace will remain with Run On! where his depth of experience in building strong relationships with customers will be used as a model to continue growing the number of RSG stores. The agreement is designed to enhance Run On!’s business by adding multi-channel retailing through Run.com and administrative support while allowing Wallace to focus on the dayto-day operations and execution of growth objectives. “It’s a wonderful opportunity for me to continue working with the sport and the stores that I love while being part of a larger organization that will allow Run On! to grow beyond where I could take it,” Wallace said. GCP is an equity investment partnership with a proven track record of successfully executing specialty retail rollups, including a 12-year joint venture with Vail Resorts, Inc. that involved more than 150 skirelated shops generating $200 million in annual sales. On its fiscal second-quarter conference call held in late September, Finish Line said it expected to open 15 to 20 stores and announce 15 to 20 store acquisitions over the next 18 months. “We want to develop more engagement with a broader audience of runners,” said Ken Gart, managing partner of RSG. “With the addition of Run On! and their expertise in the most critical aspects of the business--community engagement, training programs, grassroots marketing and operational best practices--we can leverage the platform Bob has put in place to begin to create the specialty model of the future.”
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NEWS
Mr Allen Ha, CEO AsiaWorld-Expo Management Ltd.
SPORTS SOURCE ASIA RETURNS FOR ITS SIXTH YEAR 6 SGBWeekly.com | OCTOBER 15, 2012
Sports Source Asia, the international sourcing fair for sports equipment and sports apparel, will be returning for its sixth year at the AsiaWorld-Expo in Hong Kong from October 28-30. In 2011, more than 6,200 buyers attended the fair, with over half coming from overseas. During Sports Source Asia 2011, the top 10 visiting countries and regions among buyers were the Chinese mainland, the U.S., Taiwan, the Philippines, Japan, Australia, Korea, Canada, Malaysia and France. Sports Source Asia 2011 also featured 180 exhibitors from eight countries and regions with India, Korea, Pakistan and Taiwan all represented by group pavilions. They exhibited in product specific zones including Outdoor Sports Zone, Fitness Zone, Sportswear & Shoes, Sports Equipment & Accessories, and Fabrics & Materials. Co-organized by the Hong Kong Trade Development Council and MMI Asia Pte, Ltd., the show is designed for easy navigation by buyers. High-end brands are concentrated in the Premium Zone, a sector designed to maximize brand recognition and support a launch pad for new brands. The show comes, as organizers noted in a statement, at a time when the sporting goods industry is expanding steadily in the region as people appreciate the health and leisure benefits of physical activity. Athletic apparel is also increasingly embraced by the casual wear market with new performance materials gaining appeal. Increasing women and children participation globally is also leading to increased demand for sports-related goods. The event includes a networking reception, fashion parades of sportswear and accessories and exhibitors’ product demonstrations in the Activities Zone. Seminars cover lifestyle trends, market developments and current industry issues. Sports Source Asia is the only professional sporting goods show to be held in Hong Kong. The three-day event is said to be ideally situated with Hong Kong's long history as Asia’s premier trading hub giving it the expertise and the infrastructure to assist traders. The October show also is a peak sourcing period in Asia, particularly in the Pearl River Delta. For more than 30 years, HKTDC has been organizing some of the largest trade fairs in the world. With its network of offices and databases of commercial contacts around the world, HKTDC strives to create the best fairs that bring business opportunities to traders. ISPO, MMI’s division of sports and sports-fashion shows, is supporting SSA with its connections in the sporting goods markets and experience in organizing the international trade fairs for sports equipment and fashion in Munich (ISPO Munich and ISPO Bike) and Chinese mainland (ISPO Beijing) for more than 40 years.
Runner’s World UK October 2012 “EDITOR’S CHOICE”
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NEWS
MOVERS & SHAKERS GU Energy Labs hired Colin True as their national sales manager. Salomon USA appointed Patrick Crotty to its apparel category as product merchandising manager. Rossignol Group North America has promoted Kurt Hoefler to VP of sales for Rossignol in the U.S. The Rossignol Group has also created a new product team headed by the promotion of Thor Verdonk as director of Alpine product development for North America, while Matt Rihm, formerly the North American team manager, has been promoted to Rossignol Alpine product manager and will report to Verdonk. Pacific Sunwear of California, Inc. promoted Alfred Chang to senior vice president, men’s merchandising and design. Billabong International Limited appointed Dr. Ian Pollard as director and chairman-elect of its board of directors. Pollard will join the board as Chairman Elect and interim Chair of the Audit Committee on October 24, 2012 following the company’s Annual General Meeting. Franklin Retail Solutions announced that Glenn Walls has been named VP business development. Split Clothing appointed Kurt Schleicher as VP of domestic sales, Chris San Juan as SVP of design, and Alex Yang as director of marketing. G3 hired industry veteran Gord Bailey to the newly created position of vice president of sales and marketing. Bailey will oversee G3’s growing sales, direct marketing initiatives, and work closely with founder and President Oliver Steffen to direct future brand and product strategy. PPR appointed Marie-Claire Daveu as chief sustainability officer and head of international institutional affairs of PPR, and as a member of the PPR executive committee.
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NEW BALANCE SEES $2.5 BILLION IN SALES BY 2013 With both its wholesale accounts and licensed stores delivering robust growth this past Spring/Summer season, New Balance said it's heading into fall with expectations of achieving $2.5 billion in global sales by 2013. In 2011, worldwide sales reached $2.04 billion, up 14.6 percent from $1.78 billion in 2010. The $2.5 billion 2013 assumes top-line growth will expand 22.5 percent over the next two years. Reflecting strength in both its running and lifestyle footwear, New Balance’s U.S. licensed stores have now seen increased year-over-year sales for the past 24 straight months. Overall licensed store sales have grown 10.5 percent in 2012 year-to-date. "Achieving 24 months of same-store sales increases within the turbulent economic environment is very exciting,” said Chris Quinn, EVP, sales and retail for New Balance. “We can attribute much of this success to our best-in-class New Balance Store ownership group and our North American sales organization." New Balance said it remained focused on driving strong sales momentum across the brand’s other key distribution channels. "We have great work to do as we strive to become the number one brand in Running and better collaborate to impact not just our New Balance market share, but our retailers’ total athletic sales. We are committed to work more closely than ever with our specialty retailers as well as all of our strategic accounts and channels to earn their business and ensure we are the best possible value-added business partner," said Quinn. Looking ahead, Stephanie Smith, VP of retail for New Balance, said the early read for Spring 2013 is “very positive.” She elaborated, “We have seen solid strength in sales of running product at our independent specialty accounts and bookings for running product in the specialty channel for the first quarter of 2013 are up 45 percent." Also contributing to the brand’s overall health is the continued focus on its "Let’s Make Excellent Happen" campaign, as well as the strength of key running initiatives, including the launch of REVlite-a cushioning foam featured in the 890 running shoe, the NB Minimus collection and core running styles. "We see our brand connecting more than ever with younger consumers, thanks to exciting new running products such as Minimus and REVLite as well as renewed interest in our lifestyle offerings such as the 574 and Made in the USA collections," said Quinn. "Complementing our running product mix has been New Balance’s commitment to the high school athlete with our sponsorship of the New Balance Nationals as well as other key marquis running events." All 165 licensed New Balance stores in North America (148 in the U.S.) are independently owned and operated.
SPOTLIGHT
SHOP OWNERS go shopping
2012 HOLIDAY STOCKING STUFFERS YOUR CUSTOMERS WILL LOVE Like beautifully tied dry-flies luring fish to the surface of the water, these holiday stocking stuffers will lure customers to your shelves. Following is a look at just a few of the smaller retail items shops will want to take a look at to drive add-on sales this holiday season. The new GoPro HD HERO2: Outdoor Edition is the most advanced GoPro camera yet, wearable and gear mountable, waterproof to 60m, capable of capturing professional full 170º wide-angle 1080p video and 11MP photos at a rate of 10 photos per second. Mounting accessories are included. MSRP $299
For backpackers and climbers, the Cloverware Lite Reusable Nesting Utensils from Alite are highly portable. They are lightweight, collapsible and functional. MSRP $6 Dogs love stockings too, and nutritious, delicious treats. Zuke’s Super Dog Treats are all-natural, semi-moist treats designed after three categories of superfoods: Super Berry (blueberries, cherries, raspberries), Super Beta (pumpkin, carrot, butternut squash, apricots) and Super Greens (kale, peas, broccoli, spinach). They are rich in antioxidants to promote health and prevent disease - corn, wheat and soy free. Made in the U.S.A. MSRP $7
All of Life is Good’s optimistic hero Jake’s best wit and wisdom have been compiled in this beautiful hardcover book. All profits from the book go to The Life is Good Playmakers, helping kids in need. MSRP $20 Clif Bars Seasonal Flavors Peppermint Stick, Spiced Pumpkin Pie and Iced Gingerbread are returning this fall to the CLIF lineup. All three flavors are made with organic ingredients and deliver CLIF’s athlete-crafted blend of carbohydrates, protein and fiber for sustained energy. Available starting in October while supplies last (MSRP $1.40). CLIF Bar will donate one percent of net sales to Protect Our Winters, an organization leading the fight against climate change.
Go anywhere and drink safely with SteriPEN’s smallest, lightest (74g) eco-friendly, first rechargeable UV water purifier. The SteriPEN Freedom’s integrated battery recharges via a micro USB port…from a computer, AC outlet or compatible solar charger. The metallic green Freedom provides 8000 0.5L (16 oz.) water treatments (40 per charge). In 48 seconds, the germicidal UV light destroys about 99.9 percent of bacteria, viruses and protozoa such as giardia and cryptosporidium. Treating twice disinfects standard one-liter volumes. Using instant-on technology with LED indicators, just follow three easy steps to drink water on the go. MSRP $120 10 SGBWeekly.com | OCTOBER 15, 2012
GU Energy Gel provides athletes with 100 calories of high-quality, easily-digested and long-lasting energy. With essential nutrition to keep your body going. It goes down easy, and it goes to work fast so you don't have to slow down. Contains an optimal blend of carbohydrates, the proprietary GU amino blend, and a full serving of Vitamin C and E, with the time-tested consistency and taste that athletes have come to expect from the original energy gel.
Kuat, providing rack innovations since 2005, has introduced the Dirtbag Bike Rack as the cheapest, simplest rack on the market. It mounts to almost anything, has no extra or moving parts as it utilizes the customer’s front skewer, is compatible with all 9mm forks, and comes with a lifetime warranty. Steel construction. MSRP $13
THE FILA MEMORY DELUXE 2 HAS A SPECIALLY CONSTRUCTED MEMORY FOAM FOOTBED, MOLDING TO YOUR FOOT WITH EACH STEP. THAT MEANS INCREASED COMFORT, EXPERT CUSHIONING AND A GREAT FIRST FEEL. >>>>>>>>>>>>>>>> FILA.COM
NEW
OWNERS
LOOK TO RESUME
GROWTH By Thomas J. Ryan
L
otto Sport Italia has sold Etonic footwear brand to Etonic Holdings, LLC, a joint venture with the Weisfeld Group and Anthony L&S Footwear. Terms were not disclosed. Etonic Holdings purchased the Etonic brand and intellectual property. Lotto Sport Italia has owned the brand since 2006. Through an increased focus on product design and licensing relationships, the new owners plan to leverage existing manufacturing capabilities and retail relationships to expand distribution, enhance the international sales footprint and enter additional product categories. “Etonic is truly an authentic American athletic company with products ranging from golf and running to bowling,” said Bruce Weisfeld, president of the Weisfeld Group. “We plan to restore and reinvigorate Etonic and return the brand to its rightful place among the best athletic companies in the world.” Established in 1876 in Brockton, MA, and recognized as one of the oldest shoe companies in the U.S., Etonic (formerly Eaton Company) began manufacturing golf shoes in 1945. In the 1950s well over 100 PGA & LPGA players wore the Etonic “Tournament of Champions” line. From the 1970s to 2005 Etonic achieved many industry firsts, from biomechanically designed outsole stabilizers to partnering with W.L Gore & Associates and releasing the first Gore-Tex lined golf and running shoes. The brand achieved its broadest distribution in the mid-1990’s, reaching over $100 million in revenue. Said Weisfeld, “We plan on continuing the Etonic tradition of “firsts” by bringing to market many new developments in each category in the months and years to come.” In an interview with SGB Weekly, Shannon Hayward, Etonic’s new brand manager, said the sale came about after one of Etonic Holdings partners found out about the opportunity on a trip to Italy about a year and a half ago and opened a dialogue. Meridian Capital facilitated the sale. “We wore Etonic golf and running shoes back in the day,” said Hayward. ”Having always believed in the fit, performance and aesthetics of the Etonic brand, and with the infrastructure to design and produce high quality footwear, it seemed a natural fit for the Weisfeld Group and AL&S to purchase Etonic.” He said that for confidentiality reasons, Etonic current sales couldn’t be disclosed. However, he noted that with the purchase of Etonic in 2006 by Lotto Sport Italia, it became difficult to manage the brand outside the U.S. Also, with Etonic being purchased at the beginning of the downturn, Etonic like many other businesses struggled during the 2007-2009 years. Still, Hayward said the new owners firmly believe global sales could be restored to the peak levels reached in the nineties and beyond.
“American heritage brands are enjoying a current groundswell of success,” noted Hayward. “The timing for restoring a true American athletic footwear brand across many categories could not have come at a more opportune time.” The existing business primarily comes from golf and bowling with a portion of sales from the running category. In golf, Hayward said Etonic is an established shoe and accessory brand worldwide with solid distribution in golf specialty, pro shop, online and sporting goods retailers. “Our plan is to modernize our recreational golf shoes, gloves and accessories, while maintaining the credibility of our tour level products through technical improvements, marketing and athlete programs,” he said. Hayward said that in running, Etonic has always been known for offering superior comfort via a stable platform, lightweight materials and good quality. The new team plans to bring in more modern upper materials and improved outsole designs while leveraging existing retail relationships with line segmentation and high margin sales programs. “I think for the established runner loyal to Etonic, updated versions of classic styles will inspire purchases, while new development and subsequent product launches accompanied with strong marketing activations will create renewed sales for Etonic,” said Hayward. In bowling, Etonic holds the number two position in global sales volume. Etonic’s bowling division will continue to be led by Hall of Fame and 11-time PBA Tour Champion, David Ozio, who contributes significantly to sales, marketing and product development. The new owners eventually plan to explore extending Etonic to basketball, tennis, walking, retro and lifestyle offerings. With experience on both the sporting good and fashion side, Hayward was director of sales at The North Face from 1994 to 2000, helped relaunch the Fred Perry tennis line from 2000 to 2005, and worked for a licensee developing New Balance outerwear from 2005 to 2007. “Etonic Holdings, LLC plans to restore Etonic as a leader in categories represented and to develop relationships for product presentations in the best athletic distribution outlets in the country,” said Hayward. ■ Note: Weisfeld Group currently manages, licenses and owns principal stakes in a stable of worldwide brands including METROPARK, COOGI, Under Two Flags, FUBU, Crown Holder, FB Legacy, DRUNKNMUNKY, Heatherette and Willie Esco. Anthony L&S manages a portfolio of more than 10 owned, licensed and exclusively distributed premium footwear brands includingG Star, Levi’s, U.S. Polo Assn., Mountain Gear, Adio, Phat Farm and FUBU. OCTOBER 15, 2012 | SGBWeekly.com
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SEES MINIMAL MOVEMENT
JUST BEGINNING By Thomas J. Ryan
R
eports of minimalism’s death have been greatly exaggerated. That’s the view of David Sypniewski, founder and CEO of the zero-drop running shoe brand, Skora, who remains confident that barefoot design will still transform the running industry in the decades ahead. He believes the oft-noted slowdown in Vibram FiveFingers’ rapid growth was likely due to the “novelty” effect wearing off for many first-time buyers as well as a more crowded market for minimal footwear. He also believes the size of the market for stripped-down, flexible models is being stalled by many long-time run specialty owners resisting the movement. Reluctant to abandon many of the precepts around running shoe-design and running form they’ve preached to customers over the last two 14 SGBWeekly.com | OCTOBER 15, 2012
to three decades in their stores, Sypniewski believes many stores “haven’t fully bought into minimalism.” The next generation of running storeowners will likely be “more open” to such concepts, he contends. He firmly believes that minimal construction will continue to reshape the overall footwear marketplace, and noted how minimalism design can be seen increasingly influencing trail and other categories. With consumers moving away from stability and motion-control shoes, he predicted minimal construction will work its way much deeper into running design. Within five to 10 years, he suspects the neutral running category will greatly resemble today’s “fringe” minimal offerings. He likens the change to his belief that the term “organic food’ will likely go away as it replaces conventional food that came after the food industry began spraying crops with pesticides and chemicals after World War II.
"LET'S USE LABELS TO INFORM, EDUCATE AND COMMUNICATE RATHER THAN OBFUSCATE AND CONFUSE." - David Sypniewski, founder and CEO Skora OCTOBER 15, 2012 | SGBWeekly.com
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In the same vein, minimal models only represent a “return” to running shoe design before the early seventies brought overbuilt shoes that he believes are causing many running injuries. Obviously, Sypniewski has also become a staunch believer in the midfoot strike and the problems inherent in heel striking. He found religion around 2002 after a leg injury prevented him from enjoying his passion of running and racing for nearly 18 months. Orthotics, deep-tissue massages and motion control shoes offered no help. Seeking out more holistic approaches, one night he ran across Barefoot Ken Bob Saxton’s website, barefootrunning.com, and quickly identified with the problems tied to heel striking. “Imagine jumping off a stool and landing on your heels on a concrete floor,” said Sypniewski. “You’d say, ‘No way!’ And running is nothing more than jumping from foot to foot.” The next day, he went to a local field, put on aqua socks, and ran for the first time without pain in over a year. Said Sypniewski, “Magically without all this technology, the pain went away.” Moving from Calgary to Fort Myers, FL, he developed his own protective socks made of latex rubber bought from Home Depot to sustain the local pavements that could reach 150 degrees. With Vibram FiveFingers and Nike Free soon launching, he thought of selling his running socks to other barefoot enthusiasts but still lacked the production knowhow, despite his corporate sales and marketing background. He became more convinced to come out with his own minimal shoe after Vivobarefoot came to the U.S. market in 2007 with more of a casual offering – their running shoes came out two years later. His goal in launching Skora was to bring “honest product with an honest marketing message of what footwear really should be for runners, which is protection and nothing more from the surface.”
David Sypniewski, founder and CEO Skora
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Teaming up with Richard Kuchinsky, who had recently designed shoes for the Denmark-based soccer shoe company, Hummel International, he spent about four years and numerous credit cards coming up with the design for Skora, which translates to “skin” or “leather” in Polish. Landing a significant investment in 2011 enabled the Portland-based startup to launch the Form ($185) and Base ($110) in February 2012. Designed to fit like a ‘second skin,’ a proprietary anatomically correct last in both models mimics the foot’s contours as it moves, while a zero-drop midsole/outsole and a curved profile in both the forefoot and heel encourages natural movement. The Form features Pittards Armor-Tan Goatskin leather and WR100X Sheepskin leather lining that promote breathability and durability, as well as asymmetrical lacing and wrap-around tongue construction. The Base features a mesh upper and adjustable X-strap closure system along with many of the same features as the Form. Women’s versions of both came out in July. For Spring 2013, two more shoes - Phase ($110) and Core ($155) - arrive built on a whole new platform. The IBR (Injection Blown Rubber) midsole promises a better abrasion resistance, grip and compression-set than injected EVA, at a much lower density and weight than rubber. The Phase is an all-synthetic shoe while the Core is a hybrid goatskin version. Said Sypniewski, “It’s cool because it gives you the right amount of feedback but also gives the right amount of protection, all in a zero-drop design and fully concaved and curved heel. It’s about mirroring the foot as much as possible.” Sypniewski describes Skora’s entry as “very well received” with the line reaching about 75 doors globally, and a solid response from overseas. One obstacle was not coming out with a women’s versions until July, but he admits the overall U.S. market has been “a little bit of a challenge” because of competition and the fact that not all U.S. stores have fully embraced minimalism. “From a sellthrough perspective, it requires a merchant to engage and educate,” said Sypniewski. “And don’t get me wrong, there’s many wonderful stores that do this and pride themselves in it, but it is a challenge in the U.S. market. It’s not quite as adopting yet to the lightweight and minimal side whereas Europe, Southeast Asia and Australia have been a little bit more accepting, even at the mainstream and chain stores.” While just entering the Canadian market, Skora expects to make further inroads in the U.S. in 2013 with a broader offering of four styles across two distinct platforms, both genders, and a range of price points. The company is also seeking its second round of capital investment to fund growth while building on grassroots outreach at running events and pushing its story out to the media. But Sypniewski believes demand for less-structured shoes will build due to growing interest in the benefits from runners. Also supporting the natural movement is the arrival of education programs on proper running form from a host of brands for largely the first time, as well as many running stores promoting natural running clinics.
He believes these helped reduce the injury rates as runners have transitioned to more minimal shoes. Finally, Sypniewski expects the overall minimal opportunity will “start to be much better defined” over the next year for consumers and retailers. “It’s been really crazy and confusing over the past eight to 12 months between FiveFingers and all the mainstream brands and everyone else vying to create their own position in the space,” said Sypniewski. “I think 2013 is the year that consumers will have a much clearer understanding about what New Balance offers in that space, how is Skora different, how is Altra different, what Hoka’s doing…who are the players and what do they believe in.” Still, he believes the industry needs to work through some transitional hurdles. First, Sypniewski believes the overall mindset around running “faster, harder and stronger” has to be replaced by more of a go-slow approach to not only curb injuries but to bring a sense of fun to the activity. “That’s a difficult pill to swallow because people want long mileage and that cardiovascular return,” said Sypniewski. “But at what cost is the short-term gain versus long-term health. It’s about the quality and experience of running and not being in pain and not being miserable. And recognizing
FALL/WINTER 2012 BASE COLLECTION FOR WOMEN
whole-foot gait while at the same time offering conventional running shoes with large amounts of cushioning, support and a thicker heel that encourage a heel strike gait. This also compounds confusing messages being heard in the marketplace. Sypniewski asserts more “honesty” around design and marketing language will help guide what he sees as the gradual shift from conventional shoes, which still make up about 85 percent of the market, to less-structured ones. ■
"SHOES AREN'T GOING TO GO AWAY, WHAT NEEDS TO CHANGE IS THE TYPE OF SHOES. SO IF WE WORK TOGETHER, WE CAN SOFTEN THE BLOW FOR RETAILERS. IT'S A BIG ROCK TO PUSH, BUT IT'S DOING THE RIGHT THING BY RUNNERS:. - David Sypniewski, founder and CEO Skora
when to not push it. I vote for the longer, slightly more difficult training route.” An even greater hurdle likely will be clearing up the varied terminology being used by many brands in the marketplace around minimal offerings that is confusing consumers. In an open letter to the industry that ran as a full-page ad in the October issue of Running Times, Sypniewski wrote that natural, healthy running is based on some basic, accepted principles and misperceptions only occur when shoes with rigid TPU shanks, "barefoot" shoes with 10mm heel to toe drop, and "natural" shoes designed to encourage heel strike are being described as minimal or natural. Wrote Sypniewski, “Let's use labels to inform, educate and communicate rather than obfuscate and confuse.” The letter also addressed the “hypocrisy” of some mainstream brands offering minimal models that encourage running with a
Click to view video: At Skora, we look at things differently. We believe that running shoes should be built to encourage running performance that is as biomechanically correct as possible, with minimal interference. Our footwear lets people run naturally. Run Real is our philosophy and we stand by it.
OCTOBER 15, 2012 | SGBWeekly.com
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UNDER ARMOUR IS MAKING IT A PRIORITY TO CONNECT WITH WOMEN - AND CONNECT WOMEN WITH EACH OTHER - THROUGH AN EXTENSIVE CAMPAIGN, A GROWING ONLINE COMMUNITY AND A NEW HIRING.
JUST FOR HER By Fernando J. Delgado
U
nder Armour is empowering women this Fall by re-defining beauty and fostering an online community of active, inspired females. As part of its largest women’s initiative to date, the leading performance brand has launched a campaign framed around the mantra of “No Matter What, Sweat Every Day. I WILL.” Honoring a lifestyle in which “a day without sweat is a day that is incomplete,” the new initiative invites female athletes to challenge themselves as part of a “Sweat Every Day” campaign and
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will take place in conjunction with Under Armour’s “What’s Beautiful” online community and social competition. Adrienne Lofton Shaw, Under Armour’s senior director of women’s marketing, shared the company’s motivations for starting the campaign with SGB Weekly. “From a women’s team perspective, one thing we work a lot on is understanding who our core female consumer is,” stated Shaw. “So anything we do as a team is all about understanding who she is, how we can best reach her, and giving her something
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Adrienne Lofton Shaw, Senior Director, Women’s Marketing, Under Armour
that can make her better.” Shaw explained that the current campaign began taking shape during the original “What’s Beautiful” social experience and competition that was launched earlier this year in April. “The idea of ‘What’s Beautiful’ was, foremost, that we wanted to give women an empowering message that really started to separate what traditional companies talk about and what real women talk about. ‘What’s Beautiful’ is about dispelling the perception that beauty is what you look like, and that beauty is on the outside,” she said. “For us, beauty is what’s on the inside. And our goal was to have women show us their beauty by posting different fitness goals, achieving those goals, and letting Under Armour support them along the way.” The “What’s Beautiful” social media contest provided women with a motivational online community geared toward helping them meet goals through a series of training challenges, with winners of the contest receiving a oneyear sponsorship deal with Under Armour. 20 SGBWeekly.com | OCTOBER 15, 2012
After 10 weeks of competition and 10,000 contestants, the first contest ended in July with four winners from across the U.S. The response to the online community and contest was extremely positive and paved the way for the newest female-centric initiative which continues to build on social interaction. “The outcry from women was awesome,” recalled Shaw. “They responded immediately, and they talked about what beauty meant to them. And we got to that social experience because we sat around the table as women back in January, and we brainstormed, ‘what do we wish we had?’ As former female athletes and people who work out every single day, we thought about what we wished other companies would have given us 10 years ago. And the idea of building a social experience came from that.” Shaw said that the group of women who brainstormed the ideas behind the nascent campaign focused on their desire to track the progress of their daily workouts. To do so, they came up with the concept of forming a community of like-minded women to talk to and help one another make it through the days when the motivation for working out might be lacking. “I’ll never forget the day we started it,” said Shaw, who recalled her in-house team collaborating with advertising agency Red Tettemer + Partners and Under Armour’s creative agency Crispin Porter + Bogusky. “From there, since ‘What’s Beautiful’ launched in the spring from that germ of an idea, we wanted to take it up a notch in the fall. We listened to what females were saying, and many women have called it the Facebook of Fitness.” Through the “What’s Beautiful” platform, women share workout challenges and healthy eating recipes while maintaining profiles and communicating with friends in the online community. “They have truly become friends in that world,” continued Shaw. “What we listen to them say over and over again is that beauty is sweat. Beauty is training and pushing yourself harder than you ever could, and then achieving whatever goal you set out for yourself.” On the “What’s Beautiful” website (whatsbeautiful.ua.com/) women can create their own profile pages, and a user page features two upload sections for women to establish their own fitness goals. One upload section contains five different challenges by Under Armour, while the other section allows the individual to make posts of any kind of personal challenge or challenges for the community. Photos and videos can be shared, and completed challenges are posted to the user page. Much like Facebook, the “What’s Beautiful” interface highlights top stories in an activity feed, and users can like and comment on each other’s goals and challenges. Other
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features include links to special Under Armour gear, video tips from category with a key new hiring. The company recently announced that special guest trainers and product giveaways. Leanne Fremar has been named as SVP, executive creative director Under Armour also uses the community as a resource for product for women’s - a new position at the company. Effective November feedback. “It’s a great ongoing focus group for our merchant team 11, 2012, Fremar will oversee women's brand marketing, product to listen and build products for these women,” said Shaw. “So it has and design and will also hold a position on Under Armour’s executive become much more than we thought it could, and that’s the magic of committee. “This is an incredible opportunity to join a powerful brand social media.” with a unique position,” said Fremar. “Over the past several years I The new “Sweat Every Day” multimedia campaign, which started in have watched the Under Armour women’s category grow at an exciting September, will help not only grow the community, but make it even pace. I believe Under Armour is uniquely positioned to lead and bring a more close-knit. “The goal was to build a community, and we saw new perspective to performance apparel, footwear and accessories for that community develop over the course of the 10 weeks of the initial active women everywhere." spring campaign in a way that surprised us,” Shaw said. “Women were Fremar joins the company after spending the past 10 years as creative mapping each other to see where they were, so they could work out director for Theory. At Theory, Fremar was actively involved in the global together--women who had never met before.” development of the brand. Her extensive industry experience also The campaign will be highlighted by 60-, 30- and 15-second video includes leadership positions at Gucci Group and Polo Ralph Lauren. spots that depict female athletes performing a series of challenging studio, training and running activities. Under Armour has also launched a second iteration of the “What’s Beautiful” social competition, awarding the ten most inspiring women in late November with an exclusive, all-expense paid training excursion with top-tier coaches, trainers, nutritionists and athletes. Measuring the success of the campaign will be an ongoing effort. According to Shaw, Under Armour evaluates the experience of the platform quarterly, analyzing metrics and tracking hashtags related Click To View: Under Armour launches largest-ever women's campaign - "No Matter What. Sweat. Every. Day." to “What’s Beautiful” on sites such as Twitter, Instagram, and other comment systems. Tracking what The position will undoubtedly accelerate the momentum that Shaw Shaw calls “social conversation” allows the company to determine and her team have gained with the women’s initiatives. Even before what women like about the experience as well as hear suggestions Fremar’s hiring was announced, Shaw shared Under Armour’s motivation for improvements. “At the same time, from a pure metrics perspective, for the recent campaigns. “Under Armour today is still mostly perceived we’re looking at what’s happening with our core womens’ numbers ev- as a men’s brand, so we wanted to show females that there’s a team of ery day,” she shared. “With our multimedia campaign that launched in women within our building that are passionately focused on everything tandem with ‘What’s Beautiful’, I am keeping close eyes on our aware- that our female consumer needs,” said Shaw. ness numbers and e-commerce numbers. We’re looking at conversion In addition to the sense of community that “What’s Beautiful” has fosfrom the ‘What’s Beautiful’ experience to actual purchases online.” tered, women have been drawn to the personal attention--something In order to ensure maximum exposure for the campaign, Under Shaw believes will be even more prominent with “Sweat Every Day” and Armour is targeting women with its most prominent female messaging the second iteration of the social competition. placement ever on UA.com. The brand will make its debut on leading “I think what's been so much fun to see was that when we respond, lifestyle television networks and will be airing commercial spots on women are blown away because they think we’re this big, monster E!, VH1 and Nickelodeon, as well as top sites Hulu.com, MTV.com, and company, and they’re not used to brands actually talking back and acFitSugar.com. Under Armour will also support the campaign across its tually caring,” she said. "For the first time ever, people who had never women’s social media channels on Facebook and Twitter. heard of us met our brand the way we intended it to be...in a way that’s In addition to “What’s Beautiful” and the "Sweat Every Day" personal, relevant and emotional. We get to know what they want and campaign, the company emphasized the growth of its women’s we’re listening to them.” ■ OCTOBER 15, 2012 | SGBWeekly.com
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I AM... SGB
JOEY POINTER CFO, Fleet Feet Sports Joey Pointer is Fleet Feet’s CFO, joining the company in 2004 as its first classically trained financial guru. Prior to joining Fleet Feet, Pointer spent time as a senior tax consultant for Ernst and Young, but quickly gave up the suit and tie in exchange for the casual business attire of Fleet Feet Sports. He attended The University of North Carolina at Chapel Hill where he earned a B.S. in Business Administration and a Masters in Accounting. He’s completed several marathons and one Ironman. He currently resides in Chapel Hill with his wife Ivy, two children Chandler and Liam (with another on the way), and dog Blue. WHAT OUTDOOR ACTIVITY OR SPORT WAS YOUR FAVORITE AS A KID? I grew up on a family farm in the middle of nowhere. As a kid I was always outside either working or playing. Athletically my fondest memories were more comedies. For instance, my little league baseball team literally practiced in a field…also as a small town we only had eight players so our defense was a little spotty and we took an automatic out after every 8th bat. In high school I was the kicker on the football team in which I believe my first kick was a line drive into the snapper and the second one resulted in two big guys running me over. It was at that moment that I realized I enjoyed sports more because if I stayed at school in the afternoon to play a sport it was less time I had to spend in the fields. WHAT WERE YOU LIKE AS A YOUNG PERSON THAT SET THE STAGE FOR YOUR CAREER? It was sometime before I would admit to my father that growing up on a farm had a huge impact on my career. Spend a summer harvesting crops in 100-degree weather with 100-percent humidity and by comparison everything seems easy and enjoyable. In addition to developing an unbelievable work ethic, watching my father run the business was invaluable. HOW DID YOU GET STARTED IN THE OUTDOOR/SPORTS BUSINESS? During medical school my wife took a part job working at the local Fleet Feet store. I am fairly certain that even with the employee discount she spent more than she made each week. At that time I was doing tax consulting for Ernst & Young. About a year into her work at Fleet Feet I realized that its corporate offices were based in town. I thought, how cool it would be if I could use what I was good at professionally (accounting) with what I enjoyed doing personally (running). It took me a year to convince them that bringing on a financial person, specifically me, was a good idea. My first year the six of us opened 15 stores and I was able to quickly dive into the retail operations of how to open, grow and operate stores. 22 SGBWeekly.com | OCTOBER 15, 2012
WAS THERE ONE PERSON WHO SERVED AS YOUR MENTOR FOR YOUR CAREER? At Ernst & Young there was a tax partner, Dan Slagle, who served as an early mentor. Two of the big points that were ingrained in me were not to take work too seriously, and mistakes will happen. I can hear him over and over again saying it is not brain surgery so no one is going to die today because of what you did. More importantly no matter what he had going on he always stopped to make time to listen and made you feel like a valued member of the team. WHAT’S THE BEST JOB YOU EVER HAD? Clearly Fleet Feet. Do you know how many pairs of running shoes I have in my office at any given moment? WHAT MAKES IT BETTER THAN OTHER JOBS OUT THERE? Two weeks ago I showed up at our store in Aptos, CA, as our No Boundaries 5K and Half Marathon training programs were getting started. After I was introduced as “the guy from corporate,” I had at least a dozen people come over and tell me how Fleet Feet had impacted their life and how important the store was to the community. It is those moments that make you feel really proud of what you do. WHAT ARE YOU TRYING TO CHANGE? I think the better question is: what are you not trying to change. Every day we are striving to improve by some amount as even improving as little as 1/8th of one percent every day will be a significant number at the end of the year. I have a small list of items that range from changes that can have an impact in the next two weeks versus changes that can have an impact two years from now. The biggest item I am working on is how we engage with the customer both now and in the future.
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