ISSUE 1340 OCTOBER 7, 2013
The Weekly Digital Magazine for the Sporting Goods Industry
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ISSUE 1340 OCTOBER 7, 2013
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MAKING NEWS
4 Movers & Shakers Stephen Curry Joins Under Armour Basketball Roster 6 M&A Blotter Foot Locker Supports Student Athletes
VENDOR FOCUS
8 Adidas Extends MiCoach to Team Athletes
FEATURES
10 Interbike Grows in Strength and Footprint Despite Lower Overall Attendance
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14 SFIA Industry Leaders Summit Forum Addresses Global Challenges of Inactivity Pandemic COVER PHOTO: Interbike 2013. Photo by Colin Meagher Copyright 2013 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 7, 2013 | SGBWeekly.com
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NEWS
MOVERS & SHAKERS Patagonia, Inc. hired Joy Howard to its senior management team as VP of marketing. She was most recently VP of marketing for Converse All Star. Timbuk2 appointed Cindy Feinauer as director of U.S. sales. She had been director of U.S. sales, SmartWool. Deckers Outdoor Corporation appointed Jeffrey Bua as Teva brand president. Prior to joining Deckers as Mozo brand president, Bua worked at RG Barry, HiTec, Umbro and Reebok. He replaces Joel Heath, who has left the company to pursue other opportunities. Zoot Sports hired Aaron Azevedo as its director of global footwear and Eric Merk as U.S. sales manager. Most recently, Azevedo was SVP of footwear at DC Shoes. Merk was VP, North America sales, Roxy Outdoor Fitness at Roxy/Quiksilver. Rod McGeachy will be joining Delta Apparel as president of the company's Soffe division. McGeachy was most recently serving as chairman and CEO of Tandy Brands Accessories. Reebok has signed Nerlens Noel, a rookie on the Philadelphia 76ers and the number six draft pick in the recent NBA contract, to an endorsement contract. Columbia Sportswear appointed Franco Fogliato, who had managed Billabong's European business since 2004, as its SVP of Europe. Nixon has named Nick Stowe as their new CEO, replacing Andy Laats, who is changing roles for family health reasons. Stowe previously held leadership roles at jewelry company Stella & Dot, deConverse and Hurley. 4 SGBWeekly.com | OCTOBER 7, 2013
STEPHEN CURRY JOINS UNDER ARMOUR BASKETBALL ROSTER Under Armour added Stephen Curry, star guard from the Golden State Warriors, to its basketball roster. Endorsed by Nike since joining the league in 2009, Curry is coming off a career year where he set the NBA record for making three pointers in a single season with 272. He averaged nearly 23 points and seven assists, and led the Warriors to the Western Conference semifinals. "I joined the Under Armour family because they share my passion for working hard and taking no short cuts,� said Curry. “From what I've seen, they are extremely committed to supporting their athletes on and off the court as well as building the game's most innovative basketball footwear that will help make my job on the court a little bit easier." "This partnership represents our continued commitment to grow Under Armour Basketball globally," said Matt Mirchin, senior vice president, Global Brand and Sports Marketing, Under Armour. Other Under Armour NBA endorsers include Brandon Jennings, Raymond Felton, Kemba Walker, DeAndre Jordan and Greivis Vasquez.
M&A BLOTTER
GIVING BACK
Black Yak Co. Ltd., one of South Korea's leading outdoor companies, has acquired the Portland, OR-based apparel brand Nau from Horny Toad. Nau Founder and GM Mark Galbraith will continue to lead Nau as an independent, wholly owned subsidiary. Pacific Vector Holdings, Inc., a licensing company that owns Gatorz and licensing rights to Street League Skateboarding, has acquired a controlling interest in DNA, LLC, which owns the skateboarding brands Alien Workshop, Habitat and Reflex. Rob Dyrdek, who is minority owner and team rider for DNA, will remain on board in those roles with DNA. Dyrdek acquired DNA Distribution from Burton in April 2012. LIDS Sports Group announced its acquisition of Shawnee, OKbased Baptist’s Athletic Supply. Baptist’s, founded in 1922, has 10 outside team salesmen covering all of Oklahoma, north central Texas including the Dallas Metroplex and the west Texas panhandle. LIDS is hiring all of Baptist’s sales representatives. Fanzz, the fan chain owned by the parent of the Utah Jazz, is acquiring Just Sports, another fan chain that operates 27 stores in Washington, Oregon, Idaho and Montana. Fanzz has 94 stores in 19 Western states. PVH Corp. signed a definitive agreement to sell substantially all of the assets of its G.H. Bass & Co. division to G-III Apparel Group for approximately $50 million in cash. G.H. Bass has 160 G.H. Bass & Co. outlet stores. Ontario Teachers' Pension Plan joined the list of heavy weight investors buying stakes in Zalando, which has quickly emerged as Europe’s leading online retailer of fashion and a major sporting goods dealer.
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FOOT LOCKER SUPPORTS STUDENT ATHLETES For the third consecutive year, the Foot Locker Foundation, Inc. will award 20 college scholarships to 20 student athletes (totaling $400,000) through The Foot Locker Scholar Athletes Program. The program honors students who demonstrate academic excellence and exemplify strong leadership skills in sports and within their communities. The Foundation will again be partnering with DoSomething.org in administering this scholarship program. "For the past two years, we've had the distinct privilege of witnessing first-hand the incredible impact our scholarship program has had on exceptionally talented and deserving students, particularly those who may not have had the opportunity to even attend college without the added financial support," said Ken C. Hicks, chairman and CEO of Foot Locker, Inc. "At a time when attaining a college education has become increasingly challenging, it is important to continue to offer scholarships, such as The Foot Locker Scholar Athletes Program, that provide options for aspiring students." According to the Project on Student Debt, conducted by the Institute for College Access and Success, the average student loan debt for the class of 2011 rose to an all-time high of $26,600 per graduate. With these rising costs, students are spending more time searching for ways to decrease the financial burden of pursuing a degree. "The Foot Locker Scholar Athletes Program
seeks to be a game changer in the land of scholarships, taking a new approach to the typical athletic scholarship," said Aria Finger, COO at DoSomething.org. "We are excited to be working with the Foot Locker Foundation in recognizing these amazing young people and can't wait to help 20 more outstanding scholar athletes as they pursue their college dreams." This year's 20 winners will join the program's two previous classes of Foot Locker Scholar Athletes, which will result in 60 total scholarship recipients over the three years since the program's inception. Applicants must be college-bound in the Fall of 2014, participate in a sports related activity and maintain at least a 3.0 GPA. Participants are required to submit two essays and one recommendation. All applications will be reviewed by a panel of scholarship experts. Students can apply online or be nominated by teachers, coaches, mentors, family and friends by visiting www. dosomething.org/footlocker. Applications close Dec. 19, 2013 at 5:00 p.m. (EST). The Foot Locker Scholar Athletes Program is a part of the Foot Locker Foundation, Inc., the charitable arm of Foot Locker, Inc., which provides monetary support for educational and sports programs across the country. Supporting this program is Fastweb, a scholarship and financial aid resource used by students to help find opportunities to pay for school.
VENDOR FOCUS
ADIDAS EXTENDS MICOACH TO TEAM ATHLETES By Thomas J. Ryan
Adidas announced the launch of miCoach X_Cell, its latest innovation in digital training technology and the first device to provide athletes with a complete system to evaluate, train and improve jump height, cut quickness and reaction time. In an interview at Adidas’ NYC showroom on Hudson Street, Paul Gaudio, head of Adidas Interactive, said most athletic performance measurement monitors are focused squarely on running, training and fitness - an area Adidas is serving with the miCoach Pacer, first launched in 2010. The X_Cell builds on and complements 8 SGBWeekly.com | OCTOBER 7, 2013
the introduction 18 months ago of the miCoach Speed_Cell, which is popular with soccer players, said Gaudio. Placed inside the player’s footwear, the Speed_Cell captures how long, far and how fast an athlete is going on field or court. The highlight feature is that it captures 360-degree movement, or whether an athlete is running forward, backward or sidestepping. Data around TopSpeed, Burst Speed, Total Distance and gametime stats are collected so an athlete can prove who's best or fine-tune his or her performance. After the game or practice, syncing the data
to a mobile phone or computer enables them to see all the data to instantly measure progress. Similar in size to a standard heart rate monitor, the miCoach X_Cell is worn on a textile chest strap or clipped to the waistband of shorts and measures another range of metrics to provide an even more complete picture of athlete performance. Gaudio said the focus for both the X_Cell as well as the Speed_Cell is on 14-to-19 year old kids playing sports and “looking to achieve a goal or improve their performance.” It’s designed to address a variety of sports, including football,
daily progression workouts, power-up and training drills through the miCoach app. Norman said the X_Cell measures three factors supporting peak performance: mobility, or range and motion; stability, or the ability to harness potential energy; and strength. Gaudio said most athletes assume that strength is the issue and continually push to “get stronger.” But the bigger drag holding them back may be their cutting ability or reaction time. “The X_Cell exposes your strengths and weaknesses,” said Gaudio. “And hopefully helps lead you to solutions to encourage you to get better. It’s all about the journey to get better and achieve your goals.” Like the Speed_Cell, miCoach X_Cell translates the performance data wirelessly via Bluetooth to the user’s iOS miCoach Multi-Sport mobile application. An Android version is scheduled to launch early next year. Studies show that real-time feedback is effective at helping athletes learn and remember techniques to improve their training, Gaudio noted. But X_Cell takes the data readings a step further by offering a set of exercises that an athlete can use to improve in areas where they may be lacking. And each exercise is tailored to each activity. Norman said the exercises offered don’t require a gym or equipment with the simplicity hopefully encouraging an athlete to “take that first step” to get better. Said Norman, “It’s upgrading your mindset about the required work involved and reducing the barriers to say, ‘Hey, I can go out and commit one or two minutes to getting better.” The exercises come with visual and written demonstrations as well as coaching tips. It also features a “Give me more” button to incentivize an athlete to tackle further workouts to enhance their performance. The miCoach X_Cell is available now at $70 retail. Gaudio said the overall miCoach family of products continues to be well received. But he also noted that the venture is not so much about Adidas getting into technology but more about fulfilling Adidas’ ongoing goal to helping athletes perform better. “As a brand, we outfit athletes with footwear and apparel to help them perform better and now miCoach is enabling us to play an even larger role in helping enhance their performance and reach their goals,” said Gaudio. ■ Paul Gaudio, head of Adidas Interactive
basketball, soccer, tennis and running. Specific readings and guidance are offered around each activity. While the Speed_Cell was about ”how far and how fast,” the X_Cell is more about “explosive energy,” said Gaudio. The Speed_Cell tracks four measures during training sessions or competition: »» »» »»
»»
Vertical leap: True jump height measured in centimeters or inches, calculated from the force you create to move your center of mass upwards. Quickness: Measured in Gs per second, Quickness shows your acceleration bursts, and your ability to change direction. Hustle: A summation of all the forces for a read into work capacity, or the ability to continually perform at a high level without getting worn out. Heart rate: Measures heart rate every second of the game, but is also important after to gauge recovery time. The X_Cell can also be used as a heart rate monitor for coached cardio training with the miCoach Train & Run app.
Gaudio said the X_Cell and Speed_Cell continue to bring information from the miCoach Elite System designed specifically for coaches for major soccer clubs to draw key insights into player performance and work rate. “For competitive athletes, there is no better way to improve your game than by understanding the factors involved in overall performance and how to tailor a training program to improve those skills,” said Gaudio. “Elite teams and players have access to sophisticated systems, labs and training staffs to improve performance, but miCoach X_Cell puts the technology directly in the hands of all athletes.” While developed through feedback from teams, trainers and athletes at all levels and in all sports, the X_Cell leaned on Adidas’ ongoing work with Athletes Performance, the renowned training center for elite athletes that’s known for its breakthrough concepts around athletic performance. Darcy Norman, director of the Performance Innovation Team at Athletes Performance, said the X_Cell allows athletes to tailor their training regimen based on their real-time personal performance data and also includes
OCTOBER 7, 2013 | SGBWeekly.com
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INTERBIKE GROWS IN STRENGTH AND FOOTPRINT DESPITE LOWER OVERALL ATTENDANCE By Aaron H. Bible I Photos by Colin Meagher
Interbike 2013 - the largest bicycle industry trade show in North America established in 1982 - wrapped up on September 20 in Las Vegas on an upbeat note as bike vendors and dealers shrugged off the slow start of the 2013 season and focused on what new products will create excitement during the upcoming holiday shopping season and Spring 2014. Overall attendance was down seven percent from 2012, due to a tighter registration process and the move to a slightly smaller venue in the Mandalay Bay Resort. However, Interbike 10 SGBWeekly.com | OCTOBER 7, 2013
is reporting that store count was up eight percent; exhibiting brands were up 1.5 percent (to 1,400), and OutDoor Demo exhibitors were up 10 percent with a six percent increase in registered buyers/distributors. Indoors, the main lobby was bustling and The Paddock outdoors both added to the 320,000 square feet of exhibitor space, in what is being called the largest Interbike ever staged. While aimed at bike dealers, it also draws hundreds of people from the non-profit advocacy community and the press.
This year’s show included the debut of Interbike by Invitation, which allowed bicycle retailers to award their best customers access to show. This consumer day has precedence at Eurobike but was not as well received in its initial year in the United States. Preliminary data shows about 750 verified consumers attended Interbike’s consumer-access day on September 20 and organizers will review the program in an effort to increase attendance. “This was our first attempt to show cycling enthusiasts all the great brands that exhibit at Interbike, and help strengthen relationships with their local IBDs,” said Pat Hus, vice president of Interbike. “We learned quite a bit from the experience, and while the program did not meet our expectations, we don’t want to just throw in the towel either.” Initial data showed an 18 percent decline in retail buyers from Colorado which, just days before the show, suffered some of the worst flood devastation in its history. A long, cold, wet spring also cooled the mood of some shops. “We were able to send five employees to Interbike last year,” said Marty Epstein of Marty’s Reliable Cycle in New Jersey. “But with the difficult business conditions during the first half of the year we needed to watch our expenses more carefully, so this year we brought only two.” SMALLER VENUE MORE CONDUCIVE TO NETWORKING
"Feedback from exhibitors and retailers about the new facility was very positive," said Interbike Communications and PR Director Justin Gottlieb. "One retailer told me that the new floor plan forced him to bump into exhibitors that he might have
avoided at the Sands – simply because he had a routine and knew what booths to go to. He said he actually did business with some of them as well. We also received good feedback on The Paddock, as it gave a new outdoor element to the show, complete with a test track that was better than in years’ past." Most agree that Interbike, no matter where it takes place, is more of an industry experience than a trade show, featuring internationally sanctioned bike races, retail education events, media events and the world’s largest two-day outdoor demo. “It was good, it was super busy,” said Luke Hontz, Five Ten’s bike director. “The vibe at the show in general, with it being in a new location in Mandalay Bay, was nice. The George Thorogood concert as a kick-off was excellent.” WOMEN, COMMUTER AND E-BIKES GENERATE BUZZ
E-commerce, enduro mountain biking, fat bikes and gravel bikes generated much of the buzz at the show. Other trending categories included casual-technical cycling apparel, women's bikes and apparel, cargo bikes, folding bikes and electric bikes. There were also more accessories, apparel and bikes aimed at commuters. More than 50 suppliers were on hand to tout e-bikes and components such as batteries and belt drives. From cruisers and cargo bikes to road and mountain bikes, it appears that Americans will soon have more viable options in the e-bike market. There will even be a new consumer magazine title from Hi-Torque Publications, Electric Bike Action. Among OCTOBER 7, 2013 | SGBWeekly.com
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the companies and brands exhibiting e-bikes were U.S. market leader Currie Technologies (the Accell Group), Stromer (BMC), Electra, Prodeco Technologies, E-Joe, Epik, Solex, E-Bann and Specialized. Scott Fitzgerald of Fitzgerald Bicycles, Victor, ID, said he was impressed by how many brands have begun aligning products and marketing messages to the broader consumer audience that is less interested in intense competition than just having fun - a trend also remarked on at Outdoor Retailer Summer Market in August. "I saw a lot of products that tell a story that has an emotional draw," he said. "What the industry is doing, and I hope they keep doing it, is aligning what people are looking to get out of cycling with the products themselves. It's not about putting a number plate on and duking it out in Lycra. And if it is a race scenario, it's a little less serious, it has a little more old school, grassroots feel. It's a focus on going out and having a great experience, in a non-threatening, non-pretentious way. The industry didn't do a good job of talking about the fun of cycling for a long time."
LONG FOOD LINES, SLOW START TO SEASON DIDN’T STIFLE POSITIVE VIBE
"Negative comments were centered around the long lines at restaurants in the morning, and lack of grab-and-go food. This is something that will be fixed for 2014," said Gottlieb. "Additionally, we heard that some attendees had trouble navigating the expo hall – but that’s to be understood with a new location and floor plan. This too will get better moving forward." Street signs on aisles and segmented "neighborhoods," as well as a highly functional smartphone app, helped show-goers navigate the new digs. Despite the long lines typical of Vegas hotels and the desert heat, overall floor vibes were overwhelmingly positive. In fact, the slow start to the 2013 bicycle retail sales season didn't seem to dampen spirits, and most surveyed agreed the industry had snapped back during the summer months. Interviews with a wide range of retailers and exhibitors indicated the show remains relevant and important to the industry, although like its sister show Outdoor Retailer, Interbike is more about face time and looking for new products than writing orders. Also, while the timing of the show in-season may not be ideal, there isn't necessarily a better time to hold it. 12 SGBWeekly.com | OCTOBER 7, 2013
"We had everything pretty much lined up before the show,” said Ryan Campo, buyer for Criterium Bike Shop in Colorado Springs, CO, which sent four employees to Interbike. "We sat down with a few reps to finalize Spring 2014; with maybe 30 percent of our time booked with appointments, but mostly we were cruising, looking for new things. We're looking for lifestyle stuff to jazz up the store for the holiday season." Fitzgerald said the show helps him get a sense for where the industry is headed. "With the continued consolidation of the industry, there are fewer buyer dollars to spread around," said Fitzgerald, who opened his Idaho store last year, moving over the pass after 10 years in Jackson Hole. "The more shops align themselves with bigger brands, there's a commitment to that brand that goes into a lot of categories, and that's going to eat up a lot of buying dollars." And speaking of buying, there was no shortage of new and exciting products glistening in the aisles to get retailers’ attention. Mavic, a 100-year-old brand owned by Finland's Amer Sports, introduced a new pedal system developed in partnership with Time, a new mountain bike wheel/tire system that pushes their locus of control to another degree, and new additions to its helmet and apparel collection. Components maker Shimano introduced its apparel line to the United States for first time. Jamis reiterated its commitment to the 650B MTB wheel size, and announced the acquisition of cruiser brand Nirve. King Cycle Group returned to the show after more than 10 years away. Thule announced it had eliminated the Chariot brand name and folded the company's products into a new Thule line called "Active with Kids;" while Yakima maintained Whispbar as a separate, premium brand. Both companies unveiled a variety of new carriers to keep up with fork and tire evolutions. POC entered the road bike category for the first time, Smith Optics entered the mountain category for the first time with a new helmet, and Bern unveiled new street and mountain bike helmets. More than 650 people gathered at the industry breakfast to hear keynote speaker Graeme Newell, Tim Blumenthal of PeopleForBikes and Fred Clements of the NBDA. The show is the largest contributor to PeopleForBikes - formerly Bikes Belong – an advocacy organization funded by the bike industry and supported by more than 750,000 individual cycling enthusiasts. Interbike returns to the Mandalay Bay Convention Center in 2014, beginning with OutDoor Demo in Boulder City, NV, on September 8-9, followed by the Interbike Expo on September 10-12. Interbike is now one of 65 premier tradeshows owned and operated by Emerald Expositions, a leading producer of large business-tobusiness tradeshows based in San Juan Capistrano, CA. ■
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FORUM ADDRESSES GLOBAL CHALLENGES OF INACTIVITY PANDEMIC
FORUM ADDRESSING GLOBAL CHALLENGES FACING SPORTS & FITNESS E By Thomas J. Ryan
2013 FEATURED SPEAKERS At last week’s inaugural SFIA’s Industry rising heath care costs weighing heavily on with many six-, seven- and eight-year-olds Leaders Summit in Baltimore, the the federal budget; the industry is well po- dropping out of a sport altogether when industry’s top executives explored social sitioned to provide a solution through the they fail to make a team. Excessive time demedia’s growing influence, emerging digital benefits of fitness. mands on the family for supporting a twotechnologies, nascent global opportunities The inactivity issue was explored by a or three-season sport also causes some kids and the creep of government regulations. panel moderated by TomTED Farrey, director of to drop out.ROB A DEMARTINI win-at-all-cost mentality, LEONSIS KEVIN PLANK Founder, Chairman, Majorityburnout, overuse Presidentinjuries & CEO and concussion CEO & Founder But a main theme across many presentations the Aspen Institute’s Sports & Society ProOwner & CEO New Balance Under Armour was finding ways to reverse the stubborn gram. A blueprint for reimagining youth& fears also impacts participation. Monumental Sports Entertainment trend toward sedentary lifestyles. sports in America, funded by the Robert At the lower-income level, a lack of availAt the start of the event that drew more Wood Johnson Foundation, is expected to able parks, slashed recreation budgets, lack than 200 of the industry’s leaders, SFIA come out by the non-profit by late 2014. of volunteer coaches, safety/transportation Chairman Bob Puccini, SFIA President Tom Cove, and PHIT America Founder Jim Baugh disclosed that with more Americans moving from the ‘active’ category to LISA BAIRD TIM BROSNAN ERIC GRUMBAN ‘inactives’ or ‘couch potatoes,’ theChief sports Marketing Officer Executive Vice President Executive Vice President U.S. Olympic Committee MLB NFL and fitness industry will lose $28 billion in retail revenue in the next few years. Research by Sports Marketing Surveys of 40,000 Americans shows the percentage of Americans who are totally inactive in 104 sports or fitness activities has grown from SFIA President Tom Cove 25 percent in 2007 to 28 percent in 2012 provided a state-of-industry – including not even walking. More imaddress to start the SFIA’s JEFFREY ROSENSWEIG BOB PUCCINI ROBERT REISS portantly, this trend shows no sign of slow-of the Global Director SFIA Chairman Forbes Columnist, Industry Leaders Summit Perspectives Program President Host of “The CEO Show” ing down and will grow to 31.1 percent by Emory University Mizuno USA 2018, which will reduce retail consumption alone by $28 billion. According to Baugh, daily physical activFarrey said the youth-sports develop- needs, and large schools with small JV and ity cuts sick days by up to 50 percent and ment system is “at least dysfunctional if not varsity programs all weigh on sports paralso provides numerous benefits around broken.” He spelled out how we’ve become ticipation. memory retention. Active employees also “a nation of sports have and have not’s” with Dropping of PE class from most schools earn almost 10 percent more than seden- different barriers to participation affecting also has proven to prevent kids from purSCOTT BAXTER TOM FARREY VAN HEERDEN tary counterparts. Team sports specifically both higher and lower income households. suing sportsAURET and staying active as adults. A President Jeanswear Director of Sports & Society President & CEO promise life lessons around overcoming obAt the higher-income level, participation lesser-discussed trend that is depriving kids Americas & Imagewear Program, Emmy Award Fair Labor Association VF Corp. Winning Reporter stacles, collaboration and leadership. With is being hurt by the growth of travel teams from building an affinity for sports are the Aspen Institute,
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Use code SGBILS913 by September 2 to receive the Early Bird Mem
Surrounded by Bob Puccini, president, Mizuno USA and chairman, SFIA (left) and Tom Cove, president and CEO, SFIA (right), are the winners of the inaugural 2013 class of the Future Industry Leaders Scholarship. From left to right, Bob Najduk, senior product manager, global retail, Johnson Health Tech; Keenan Long, research & design engineer, Easton-Bell; Isaiah Kacyvenski, head of sports segments, MC10; Alex Stone, development manager, accessories, Under Armour; and Nathaniel Woo, corporate development analyst, Life Time Fitness.
reduction in casual or pick up play, and recreation play overall. “It’s kids hopping on their bike to ride six blocks away to make up their own game,” said Farrey. “And they’re never thinking of it as exercise or physical activity even though it is. But parents won’t let their kids hop on that bike. They’re scared.” On the panel, Ed Foster-Simeon, president and CEO, US Soccer Foundation, talked up the merits of programs supporting play have had in reducing crime in poverty-stricken neighborhoods. Providing safe play environments and removing fees is essential. Caitlin Morris, Sr., director for North America, Access to Sport, Nike, noted the U.S. health cost of physical inactivity is $150 billion annually, twice the Department of Education budget. Nike has long recognized “the importance of unlocking human potential through sport,” but the company’s own get-fit initiative launched earlier this year, Designed to Move, indicates that it has to be inclusive, social and economically viable, she added. Christine Brennan, a veteran USA Today columnist and commentator on ABC/NPR, said that the success of Title IX, which celebrated its 40th anniversary last year, is “evidence that you can start from zero or less than zero” in driving a play movement. But with the appeal of shorter stories and Twitter clicks, she worries that the issue “doesn't seem to draw the attention” to encourage wide scale public support. But Farrey disagreed, noting that pieces on the subject he has done for ESPN tend to draw solid ratings. Nike’s Morris also said Nike’s “Find Your Greatness” campaign, which showed an obese 12-year old lumbering down a dirt road, received a strong reaction when it ran during the London Olympics. And she believes the public will respond to messages such as today’s younger generation is expected to live five years less than their parents due to inactivity trends. Said Morris, “You may not see it yet but we see a trend toward reshaping the discussion.” In a presentation exploring ways the industry can adapt in the coming years, Kevin Plank, founder and CEO of Under Armour,
said that while Under Armour has its own R&D lab, the company also “invites people outside the company’s walls to help us brainstorm for new ideas to take our products to the next level.” In the same vein, the industry should be working more collectively to explore ways to push the industry forward. “I don’t believe it’s all one red ocean,” said Plank. “I don’t believe it’s me taking your market share or you taking mine. I think it’s creating the blue ocean - of creating new opportunities, of pushing ourselves, and seeing how much bigger we can make the pie because a lowering tide lowers all ships but a rising tide raises it.” Plank believes the industry should be looking toward “being relevant beyond our businesses today,” with opportunities directly evident around addressing obesity and inactivity problems. Noting that the U.S. as well as the world “can’t afford to keep building bigger health care systems,” he questions why the industry can’t come up with health cost solutions through fitness rather than waiting for them to appear from Silicon Alley or the tech sector. As an example, he points to Armour39, a training device launched earlier this year. It measures heart rate, intensity, and calories burned but also WillPower, a proprietary measurement of how hard the athlete worked. If biometric movement can be measured, Plank questions whether sleep patterns, recovery times, anxiety and other general and pre-emptive health indicators can also be measured.
Kevin Plank, founder and CEO of Under Armour, provided a big picture perspective of how he saw the industry evolving and how successful brands will need to adapt in the coming years.
A bullish presentation came from Joe Pelligini, managing director, Robert W. Baird & Co., who said the industry is benefiting from a "relentless focus on innovation." Opportunities include creating items embedded with software, customization overall, developing products/programs around goal-setting content, and expansion into not-so-adjacent categories such as food supplements and electronics’ devices. OCTOBER 7, 2013 | SGBWeekly.com
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“Refreshing long-standing categories” are establishing new, premium categories, he said, mentioning Shock Doctor’s ability to support $20 to $30 options for mouthguards as an example. Citing his own kids, he believes today’s youth has a growing appetite to participate in multiple sports. He also pointed to the popularity of CrossFit, P90X and other buzz activities that are expanding the reach of fitness to more people. Other broader drivers for the industry include the appeal around authentic lifestyles that lend themselves to outdoors and sports, addressing quality of life issues such as obesity and enormous untapped global opportunities overall. But Pelligini heralded the ability of the industry to attract the sophisticated entrepreneur. He remarked, “The level of talent that is being attracted to this industry is just amazing to me.” As a comparison, he noted that when he first began working in the industry in the eighties, most companies he looked to do deals with didn’t have a CFO. Sport was seen as a “cottage industry” and gaining finance was a challenge. When he helped guide the sale of The North Face to VF Corp., his team was “lucky to get 50 percent of sales.” But industry multiples for many of the key players are trading at two to three times revenues. He said the opportunity for deals remains ample with low interest rates, many strategic buyers with cash on their balance sheet and little opportunities for growth, and PE funds with abundant cash to put to use. “The natural demand by the consumer has never looked better,” said Pelligini. “Not saying we’re not going to have downturns but the consumer generally is gravitating more and more toward outdoors and fitness.” Jeffrey Rosensweig, a renowned business economist from Emory University, explored the business links with the emerging global economy, with special focus on the implications for globally divergent demographic trends on the sports industry. With a devalued dollar providing more value and a rising middle class, emerging countries continue to offer plentiful growth opportunities in the years ahead, including nearby Mexico. Said Rosensweig, “Even though they have the drug wars, their economy is performing really well.” As far as the U.S., he explored the ramifications of low inflation, low interest rates,
and a strong stock market, although he felt the job struggles would continue to limit economic growth in the U.S. to two to three through 2017. He added, “You’re going to have to fight for market share if you’re looking for faster growth.” Dan O’Connor, president and CEO of RetailNet Group, led a discussion on how the retail landscape will evolve between 2014 and 2020. Drilling down “drivers of change” across five areas: societal, technology, economic, industry and political, O’Connor focused on disruptions driven by technology, including the arrival of humanoid robots that are already tackling household tasks in Japan because of the lack of population growth in that nation. But O’Connor spent a considerable amount time focused on how shopping and consumer engagement is changing by the smartphones, which already have more computing power than all of NASA did in 1969 when it put the first man on the moon. Beyond mobile POS, the mobile phone opens up opportunities for two-way engagement through social media channels never seen before. Other topics O’Connor discussed were the arrival of a ”real-time, demand-based pricing environment” with ever-more transparency coming from the Internet, as well as the expansion of national ship programs, including same-day delivery. Amazon, he said, was largely driving both trends. A panel of professional sports executives examined the relationship between professional sports and active lifestyles that also spoke to the largely-untapped potential of sports with social media, pointing to how sports-related topics dominate Tweets with the benefit of real-time reaction to events. But the panel also lamented on the sluggish participation rates. Surveys show that active people are much more likely to follow sports teams. According to SFIA data, 80 percent of former football players are fans of the NFL while 54 percent of active Americans in general are NFL fans. By contrast, only 37.8 percent of inactive Americans are NFL fans. But Eric Grubman, EVP, NFL, also said kids have to play overall or it’s “going to have a dramatic health consequence.” He noted that Play 60 deliberately does not include ‘NFL’ in the name because it’s
mission is more about getting kids active overall. “The most important thing is for people to play or do something physical,” said Grubman. “It’s a way to create more fans. It’s good for our country, good for the world, and good for business.” “Any activity is better than none,” agreed Tim Brossnam, EVP, MLB. He blamed the single-sport specialization that’s making young kids play one sport up to three seasons through the year while also turning sports away from kids who don’t make the cut for travel teams. At the same time, he also rued that there’s “no more pick up anything.” He added, “It’s incumbent on us to figure out how to get the concept of play out there again. It is too hard to organize 18 to play baseball, or 12 to play hockey, etc. A game of punch ball with two kids is so much better than sitting on the coach.” With many youth-activity programs aimed at kids, a few speakers said at the conference that a better job could be done emphasizing the dangers of inactivity to parents. The NFL’s Grubman admitted he was “stumped” at ways to directly reach adults. In the final roundtable featuring industry leaders in a frank discussion of challenges facing the industry, Sarah Fields, president of Century LLC, the leading martial arts supplier, said parents tend to sign up their kids to take martial arts classes because they’re being bullied. They only later recognize the life skills they’re also gaining such as confidence, courage, respect and humility. Plank said the way he runs his organization is largely based on many of the teamwork principles he learned in his playing days. Said Plank, “When we take smart people, put them in room and challenge them with stakes, some great things can happen them.” Hugo Malan, president, fitness, sporting goods & toys, Sears Holdings, also on the final roundtable, sees three simple steps to driving participation: Making sports accessible, Enjoyable and Aspirational. The final roundtable lamented at the challenge of finding places for even intermural or pick-up play with schools and towns concerned about the liabilities. Scott Baxter, group president jeanswear Americas and imagewear, spoke of the challenges finding coaches, not to mention training and supervising them, with schools shrinking JV and
varsity programs. Many coaches wind up coaching three or four sports given the desperate need, he said. As an active coach himself, Baxter also sees that many parents - outside of those involved with elite travel teams - aren’t making their kids commit to a sport. Said Baxter, “What drives me crazy is that I have these kids who don’t show up for any practices, but then show up for the uniforms. Or he comes in by in the fourth inning to play, and their parents tell me, ‘He doesn’t want to come to the practices, he just wants to play in the games.’ I’m shocked at the lack of accountability from parents.” The Industry Leaders Summit, which is set to return to Chicago in 2014, also honored its inaugural 2013 class of the Future Industry Leaders Scholarship. The winners were: Isaiah Kacyvenski, head of sports segments, MC10; Keenan Long, research & design engineer, Easton-Bell; Bob Najduk, senior product manager, global retail, Johnson Health Tech; Alex Stone, development
much of AOL's success in the 1990's who now owns the Washington Wizards and Washington Capitals. These include urging legislators to support the Carol M. White Physical Education Program (PEP), which provides grants to initiate, expand, and improve grants for PE programs. The average school PE budget amounts to $764, according to SFIA. SFIA’s 2012 survey also found that those taking PE in school are 45.2 percent more likely to be active as adults versus just 21.8 percent for those not taking PE. Cove also urged congressional support for PHIT, which pays for physical activities using pre-tax medical accounts (HSA & FSA), youth & adult league fees, health club dues, sports & fitness equipment and personal trainers. Beyond reaching out to congressman, he urged those companies with sponsored athletes to have their stars support the PHIT or PEP bill. Athletes could also join PHIT America, the non-profit education and
Ted Leonsis, founder, chairman and CEO of Monumental Sports & Entertainment, discussed the convergence of technology/ innovation in sports.
manager, accessories, Under Armour; and Nathaniel Woo, corporate development analyst, Life Time Fitness. The all-male winners provoked SFIA’s Cove to half-joke, “Let’s get some more diversity next time.” The final roundtable summed up that mandatory hiring of women and minorities might be necessary to have staffs better reflect each company’s customer makeup. Cove laid out a few call-to-action points to attendees before the final keynote speaker, Ted Leonsis, a tech legend responsible for
advocacy organization designed to combat the nation’s inactivity and obesity crisis. In late August, NFL great Hershel Walker, tennis legends Mike and Bob Bryan, and fitness expert Denise Austin were revealed as the group’s first celebrity ambassadors. Cove also urged the group to “get local” by encouraging local support of programs supporting healthy, active lifestyles with legislators, community leaders, rotary clubs, or their own employees. SFIA is also creating a task force to address the “inactivity pandemic.” ■ OCTOBER 7, 2013 | SGBWeekly.com
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For full year calendar go to sportsonesource.com/events
OCTOBER 10-11
The Retailing Summit Dallas, TX
29-31
Sport Source Asia Hong Kong
29-1
NASGW Expo Grapevine, TX
NOVEMBER 1-3
NBS Fall Athletic Market Austin, TX
5-7
TAG Fall/Winter Show St. Louis, MO
15-17
A.D.A. Fall Show San Antonio, TX
24-26
Sports Inc. Athletic Show Las Vegas, NV
DECEMBER 2-4
EORA SE Winter Market Asheville, NC
3-4
WWSRA NW Early Preview Seattle, WA
3-5
MRA December Market Lansing, MI
4-6 FFANY New York, NY 10-11
EORA FLA Winter Market Punta Gorda, FL
10-11 WWSRA NorCal Early Preview TBA 11-12
Atlanta Shoe Market Atlanta, GA
JANUARY 6-8
ATA Show Nashville, TN
7-9
MWSRA January Show Madison, WI
7-9
WWSRA Rocky Mtn Preview Denver, CO
7-9
WWSRA Northwest Preview Portland, OR
9-11
Surf Expo Orlando, FL
18 SGBWeekly.com | OCTOBER 7, 2013
13-14
WWSRA Intermountain Preview Salt Lake City, UT
13-15
WWSRA NorCal Early Preview Reno, NV
14-17
SHOT Show Las Vegas, NV
15-18
NBS Winter-Specialty Market Fort Worth, TX
16-18
Sports Licensing & Tailgate Show Las Vegas, NV
17-19
Imprinted Sportswear Show (ISS) Long Beach, CA
21 ORWM Demo Day TBA 22-25
Outdoor Retailer Winter Market Salt Lake City, UT
30-2
SIA Snow Show Denver, CO
FEBRUARY 3-4
SIA On-Snow Demo Copper Mountain, CO
3-4
SIA Nordic Demo Copper Mountain, CO
5-7
FFANY New York, NY
5-8
Sports Inc. Outdoor Show Phoenix, AZ
6-10
NBS Semi-Annual Market Fort Worth, TX
9-11
EORA SE February Show Greenville, SC
10-13
Worldwide Spring Show Reno, NV
11-13 18-19
MWSRA February Show Madison, WI MWSRA New Model Demo Hastings, MN
MARCH 14-16
Imprinted Sportswear Show (ISS) Atlantic City, NJ
APRIL 4-6
Imprinted Sportswear Show (ISS) Orlando, FL
TRADE ASSOCIATIONS | BUYING GROUPS
CALENDAR Athletic Dealers of America 1395 Highland Avenue Melbourne, FL 32935 t 321.254.0091 f 321.242.7419 athleticdealersofamerica.com National Shooting Sports Foundation Flintlock Ridge Office Center 11 Mile Hill Road Newtown, CT 06470 t 203.426.1320 f. 203.426.1087 nssf.org National Sporting Goods Association 1601 Feehanville Drive / Suite 300 Mount Prospect, IL 60056 t 847.296.6742 f 847.391.9827 nsga.org Nation’s Best Sports 4216 Hahn Blvd. Ft. Worth, TX 76117 t 817.788.0034 f 817.788.8542 nbs.com Outdoor Industry Association 4909 Pearl East Circle / Suite 300 Boulder, CO 80301 t 303.444.3353 f 303.444.3284 outdoorindustry.org Sports & Fitness Industry Association 8505 Fenton St., Suite 211 Silver Spring, MD 20910 t 301.495.6321 f 301.495.6322 sfia.org Snow Sports Industries America 8377-B Greensboro Drive McLean, VA 22102 t 703.556.9020 f 703.821.8276 snowsports.org Sports, Inc. 333 2nd Avenue North Lewistown, MT 59457 t 406.538.3496 f 406.538.2801 sportsinc.com Sports Specialists Ltd. 590 Fishers Station Drive / Suite 110 Victor, NY 14564 t 585.742.1010 f 585.742.2645 sportsspecialistsltd.com Team Athletic Goods 629 Cepi Drive Chesterfield, MO 63005 t 636.530.3710 f 636.530.3711 tag1.com Worldwide 8211 South 194th Kent, WA 98032 t 253.872.8746 f 253.872.7603 wdi-wdi.com
OCTOBER 7, 2013 | SGBWeekly.com
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Winter Market JANUARY 22-25, 2014 All Mountain Demo JANUARY 21, 2014
MARK YOUR CALENDARS
Summer Market AUGUST 6-9, 2014 Open Air Demo AUGUST 5, 2014