SGBW_1615

ISSUE 1615 | April 11 , 2016

The Weekly Digital Magazine for the Active Lifestyle Market

CEO Group Publisher James Hartford jhartford@sportsonesource.com 303.578.7004

Editorial Director David Clucas clucas@sportsonesource.com 303.578.7007

THE INTERSECTION OF YOUR ACTIVE LIFESTYLE AND CAREER THE RIGHT TALENT IS EASY TO FIND IF YOU LOOK IN THE RIGHT PLACE

Senior Business Editor Thomas J. Ryan tryan@sportsonesource.com 917.375.4699 Associate Editor | Sports & Fitness Editor Jahla Seppanen jahla@sportsonesource.com 303.578.7008 Contributing Editor Charlie Lunan clunan@SportsOneSource.com 704.996.4463

Creative Director Teresa Hartford teresa@sportsonesource.com

Art Director Chris Loving-Campos chrislc@sportsonesource.com Media Sales Buz Keenan buz@sportsonesource.com 201.887.5112 Circulation & Subscriptions admin@sportsonesource.com 303.997.7302 SGB Media Print Magazine: SGB Digital Magazine: SGB Weekly Executive Newsletters: Sports Executive Weekly, The B.O.S.S. Report Email Updates: SGB Today Daily Emails: SGB Update, SGB Apparel, SGB Footwear, SGB Outdoor, SGB Hook & Bullet, SGB Sports & Fitness SSI Data SSIData.com Career Services SGBJobs.com

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LETTERS TO THE EDITOR: SportsOneSource, 1075 E. South Boulder Road, Suite 300, Louisville, CO 80027 or email SGBMedia@SportsOneSource.com. Letters and emails should include full contact information. We reserve the right to edit letters for clarity and brevity. Send manuscripts and photographs to SGBMedia@SportsOneSource.com or to Submissions Editor at the address above. The publisher assumes no responsibility for unsolicited material.

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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

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ISSUE 1615 | April 11, 2016

The Weekly Digital Magazine for the Active Lifestyle Market

MARKET REPORT 5

By The Numbers 6 Nike, Adidas, Under Armour Battle For Talent 7 Movers & Shakers 17 Industry Calendar

ATHLETE PROFILE 8 Meb Keflezighi, star marathoner, turns to low-impact training with ElliptiGo to extend his elite running career.

VENDOR PROFILE 10 StockX bringing stock market-like visibility to sneaker resales.

ONE-ON-ONE 12 Andrew Hammond, Global Brand Manager, Ride at Pearl Izumi

ACTIVE LIFESTYLE | BIKE APPAREL & FOOTWEAR 14 Bike Apparel & Footwear Up safety while keeping style and comfort in mind for crossover rides.

FAST FIVE 16 Trending bike apparel and footwear products

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MARKET REPORT

BY THE NUMBERS 4 New Languages Now

spoken

by

Fitbit’s

new

FitStar

Personal

Trainer app, including French, German, Spanish and Portuguese voiceovers of video workouts led by American football star Tony Gonzalez. A Chinese version is up next.

7 Networking Events Planned Coalition

by

the

(OIWC)

Outdoor this

Industries

April

in

Women’s

Boston,

MA;

San Francisco, CA; Encinitas, CA; Louisville, CO;

Actionable Weekly Sales Trend Reporting for the Active Lifestyle Market To schedule a personal demo or to learn more about the SSI Data Point-of-Sale trend-reporting platform, contact SportsOneSource Client Solutions at 303.997.7302 or email Solutions@SportsOneSource.com or visit SSIData.com

Seattle, WA; Portland, OR; and Salt Lake City, UT.

14 New Brands To become part of bike maker Hawley-Lambert after it agreed to acquire the parts & accessories division of Accell North America – Seattle Bicycle Supply.

75 Colleges Expected to participate in Outdoor Nation’s 2016 Campus Challenge, a competition among schools to see which one can engage the most students to get outdoors and recreate during the month of September.

Registration is now open.

$30 Million Raised by Cycle for Survival, the national movement to beat rare cancers, via 27,000 participants taking part in 15 events this past year, with rides led by instructors from Equinox, its founding partner.

$2.8 Billion Added to the U.S. Economy, along with 25,000 jobs, from non-motorized recreation on lands overseen by the Bureau of Land Management, according to a report from economic consulting firm EcoNorthwest, commissioned by The Pew Charitable Trusts.

$3.72 Billion Annual worldwide sales for New Balance in 2015, up

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12.7 percent from 2014.

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Nike’s proposed expansion to its headquarters would add 3.2 million square feet of office, mixed-use and parking space.

Photo courtesy Nike

NIKE, ADIDAS, UNDER ARMOUR BATTLE FOR TALENT For the past few weeks, we’ve noticed sports giants Nike, Adidas and Under Armor waging a bit of battle for … not products … but talent.

By David Clucas, Tom Ryan and Jahla Seppanen

What is probably no surprise for any company in the active lifestyle industry — good employees are hard find. As baby boomers retire and the economy recovers, businesses are scrambling to attract the right people to foster sales growth (and stick around for the long haul). Like a booming housing market, sellers — in this case, prospective employees — are fielding multiple offers.

At the same time, while borrowing rates linger at historic lows, the industry is full of new start-ups and entrepreneurs attracting some of the best talent away from the big boys. While big salaries always talk, so does a sense of excitement of being on the cutting edge. Millennials crave environments where they have support (e.g,. the right tools, technology and staff) for the job 6 SGBWeekly.com | APRIL 11, 2016

along with the freedom to innovate and do good for their communities and the world, experts have told us.

Tip for businesses: You can’t force or create innovation on command, rather it comes by fostering the right environment with the right people and end goals.

Which brings us back to Nike, Adidas and Under Armour, who seem to recognize the matter and are investing heavily in 2016 and beyond on employee recruitment and capital expenditures to support their teams.

Adidas North America last week, launched what it called the company’s “largest recruitment effort ever” at its Portland, OR base with plans to increase its team by 10 percent or 120 employees this year.

In a move likely targeted toward millennials, Adidas North America

President Mark King posted a video inviting others to join the company.

“We want people who think differently, who want to break rules, who want to be disruptive, who want to find new ways to do things,” King said, sounding off on a lot of the notes mentioned above. “All of the talent isn’t at the top of the organization. The talent is companywide. If you want to work here, you have to have big dreams. You have to believe that you can change, not only the trajectory of a company, but the trajectory of an industry.

We’re looking for people with passion and excitement who want to make a difference not only at the company, but in the world.”

Adidas began stepping up its investments in the United States in

2014, including promoting King to president, after losing share to Nike and seeing Under Armour replace it as the No. 2 brand in the country. Adidas also acquired a 25,000-square-foot building adjacent to its North Portland campus in 2015 to support its growth.

Yes, it seems the three-stripe brand is back in the steady spotlight. And just last week the company created some social media buzz — perhaps coordinated with the above announcement — when it officially welcomed a trio of former Nike designers who left the swoosh brand last year.

One of the three, now Adidas VP and Creative Director Marc Dolce, posted a photo the trio’s Adidas ID badges on his twitter page (@marcdolce). In the photo, Dolce's badge is

laid alongside Denis Dekovic's and Mark Miner's with the accompanying tweet, "We are inspired, honored and excited to be a part of the amazing @ adidas family. Let's dream without limits..."

Not to be outdone, Nike last week unveiled the design for the expansion of its world headquarters in Beaverton, OR. The expansion — with a targeted 2018 completion date — adds approximately 3.2 million-square-feet of office, mixed-use and parking facilities to campus.

“Every day at Nike we dream up new ways to inspire athletes to expand their potential,” said Nike President and CEO Mark Parker. “To do that, we relentlessly evolve how we inspire our own teams and design environments that foster chemistry and collaboration. Our expanding world headquarters reflects the best of Nike’s culture — a place where we obsess the athlete and invent future products and experiences for consumers everywhere.”

Again, we hear a lot of those previouslymentioned support and culture themes targeted toward millennials. And in the expansion renderings, we spot more than a few young families milling around Nike’s new digs — perhaps a subliminal message of support for the next generation of families.

Additionally, the building designs aim for LEED Platinum Certification, officials said.

Some of the sustainable aspects include natural daylighting, passive chilled beams — a radiant convection system designed to heat or cool large buildings — and a closed-looped grey water treatment center.

Nike, too, recently celebrated an employee coup d’état with one of its rivals, hiring away Dave Dombrow, Under Armour's now former SVP of design, footwear and accessories. Joining Under Armour in 2010, Dombrow was integral to many of Under Armour's recent successful launches, including Stephen Curry's first and second signature shoes, as well as leading the Charge RC, Spine and Speedform running platforms. Dombrow is expected to sit out for a full year due to his non-compete clause and begin design work at Nike in 2017. Dombrow previously worked for Nike from 2000-2003.

While we haven’t seen any blockbuster recruiting announcements from Under Armour ... yet, we suspect the brand is still riding high off its recent successes in the market. Plus, Under Armour CEO Kevin Plank plans to give the commencement speech for the University Maryland graduation on May 18. Perhaps he can work in an Under Armour job recruitment pitch or two.

MOVERS & SHAKERS Adidas signed a multiyear partnership with 2015 Major League Baseball American League Rookie of the Year, shortstop Carlos Correa of the Houston Astros.

Beyonce introduced her new women’s activewear brand, Ivy Park, with a teaser video accenting different workout looks.

Costa Del Mar appointed Holly Rush as CEO effective April 25. She will replace Chas MacDonald, who announced his retirement from the Florida-based sunglass brand last month.

Doug Gordon, an industry veteran, completed his charity ride from the Atlantic to the Pacific Ocean in less than two months. The ride was designed to draw attention to the work of PHIT America and highlights the need for daily P.E. in all U.S. schools for all students.

Eagle Creek entered a strategic partnership with photographer Ben Christensen to promote the new EC Lync Limited Edition.

Eddie Bauer Guide Team member Adrian Ballinger and adventure photojournalist Cory Richards will launch a Mt. Everest expedition and social media campaign to document their attempt to summit the world’s largest peak without supplemental oxygen.

G-Form, makers of impact protection for athletes, added Steve Kwait to its quickly expanding sales team.

The Gatorade Company, in collaboration with USA Today High School Sports, named Jayson Tatum of Chaminade College Preparatory School (St. Louis) as its 2015/16 Gatorade National Boys Basketball Player of the Year.

Hydro Flask, the Bend, OR drinkware brand acquired by Helen of Troy Limited on March 21, hired Phyllis Grove as VP of Marketing and E-commerce.

Leatt Corporation added Andrea Gallarotti, an experienced athletes' services manager, to the Leatt marketing team.

Former Nike design trio, Marc Dolce, Denis Dekovic and Mark Miner, confirmed employment at rival Adidas.

Rack Room Shoes promoted Laryssa Grant to Women's Buyer and Adam McDermott to oversee the launch of a new shop-in-shop that will focus on athletic gear.

Sitka Gear, maker of performance hunting gear, named Jason Michelotti as its marketing leader to oversee the company’s marketing team.

Skechers teamed up with Major League Baseball Hall of Fame shortstop Ozzie Smith for a new marketing campaign featuring the brand’s Relaxed Fit from Skechers footwear collection. The brand also signed a multi-year contract extension with pro golfer Matt Kuchar.

Swiftwick, the athletic performance sock company, named Mark Castrillon, formerly of Nathan Sports, as its National Run Sales Manager.

Thule Group named Brian Bennett as its National Accounts & Business Development Manager for the Americas.

Worldwide Trophy Adventures, provider of consultation in hunting, fishing, limited entry draw tags and travel services, promoted Nathan Mrnak to Director of Operations.

APRIL 11, 2016 | SGBWeekly.com

7

ATHLETE PROFILE

Photo courtesy ElliptiGO

Meb Keflezighi Turns to ElliptiGO to Avoid The Pounding Star marathoner talks about how he manages the aches and pains that come with aging.

By Thomas J. Ryan

M

eb Keflezighi, probably best known for winning the 2014 Boston Marathon at the age of 38, believes his use of the ElliptiGO has played a large role in extending his elite running career.

“When I first tried it and knew I liked it, I said I’m glad I heard about it because it wouldn’t do much for my career 10 years from now,” said Keflezighi at a press event in New York City on April 4.

Described as the world’s first elliptical bicycle, the ElliptiGO offers many of the same physical mechanics as running, but without the impact.

Keflezighi said ElliptiGO training helps him optimize recovery, increase his volume and keep up with the high mileage he needs for marathon distance success.

Keflezighi noted that reducing impact on the joints and hips has become more important in helping him manage recovery and avoiding injury as he has gotten older.

8 SGBWeekly.com | APRIL 11, 2016

“When you’re 28 or 29, if you feel something, you can take a day off and come back,” Keflezighi told SGB. “But as I get older, I have to take a week off. So we are all on that fine line between pushing too much or too little. I feel the ElliptiGO has helped keep me healthy.”

Keflezighi was first introduced to ElliptiGO in 2012 at the U.S. Olympic trials in Eugene, OR, used it extensively back at his home in San Diego, and signed up as an endorser. Prior to using the ElliptiGO, he typically went for a 10- to 12-mile run in the morning and then another 10-mile easy run in the late afternoon. To avoid “the pounding,” he now uses his ElliptiGO four to five times a week for two hours to replace his evening run.

“The tendons get a little bit fatigued from the pavement on the run, so you’re trying to avoid that,” said Keflezighi. “The ElliptiGO does an amazing job, and I haven’t been really injured since.”

Although the ElliptiGO can be used as a stationary bike at home or in the gym, he prefers to ride around his bike-friendly hometown of San Diego. Said Keflezighi, “I love the outdoors.”

The one downside is that it typically would take a 30-minute run to meet his second workout requirement. But Keflezighi considers the lower level of pounding on the joints worth the extra time and points to other benefits in building strength and aerobic capacity. When it’s used to climb hills, for instance, the ElliptiGO helps activate the glutes and hamstrings.

It’s also social and fun. Downhill, Keflezighi once reached a high of 27 miles per hour. He joked, “I checked for cars first.”

In February, Keflezighi, who just turned 40, secured a spot on his fourth Olympic team by finishing second at the 2016 U.S. Olympic Marathon Trials in Los Angeles. He was one of nearly 80 Olympic Trials participants who had used ElliptiGO as part of their cross-training routine.

Keflezighi’s age continually comes up with his continued race success. He left Nike as his main sponsor in 2011 that many saw as due to his age although Keflezighi said it was “more complicated than that.”

He soon signed with Skechers and later that year set a personal record at the New York Marathon.

The next year, he ran another personal best at the 2012 U.S. Olympic Trials, then finished fourth at the 2012 London Olympics. He finished in second-place finish at the 2004 Olympic Marathon (Athens), which earned him a silver medal.

Keflezighi qualified his answer as to whether the ElliptiGO helped extend his career to “almost definitely” because he has a broad routine for staying injury free and in peak condition. His training book, “Meb For Mortals,” stresses the importance of stretching, agility movements, proper nutrition, varying tempo and easy runs, as well as mixing in other cross-training activities.

Keflezighi also said he surprises many runners when he admits he does 80 percent of his runs on “soft surfaces,” either grass or dirt, to avoid the pounding of his joints on the pavement. The remaining 20 percent of runs are on pavement so his body can get used to race conditions.

But the ElliptiGO even further helps Keflezighi avoid the impacts of running. He sees the ElliptiGO as ideal for people who have had an injury, such as a torn ACL or knee or hip replacement, to “get the workout feeling” because they should be able to push themselves fairly hard. But he said the ElliptiGO helps all runners, including himself, avoid injury and feel better after the workout. Joked Keflezighi, "I have three dogs at home, so I need to reserve some energy at night for when I get attacked by them."

S H A R P E N YO U R P E R S P E C T I V E START SEEING CLEARLY

SSI VantagePoint is the only weekly retail point-of-sale reporting platform exclusively for the active outdoor lifestyle industry that swiftly delivers critical trends and detailed business data to brands and retailers.

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9

VENDOR PROFILE

What If Sneakers Were Traded Like Stocks?

StockX looks to bring stock market-like visibility to sneaker reselling.

By Thomas J. Ryan

S

tart-up StockX is looking to bring the efficiencies of Wall Street trading to the reselling of collectible sneakers and eventually to many other high-end, limited edition items.

The Detroit-based company is the brainchild of Josh Luber, the founder of Campless.com, a site offering stats on sneaker sales; and Dan Gilbert, founder and chairman of Rock Ventures and Quicken Loans, managing partner of Detroit Venture Partners, and majority owner of the Cleveland Cavaliers.

In an interview with SGB, Luber said the online secondary sneaker market has been around for more than 15 years and has grown exponentially during that time to become a multi-billion dollar market. Luber estimates the secondary sneaker market in the U.S. at $1.2 billion and close to $6 billion globally.

EBay controls about a third of the market while the popular Flight Club is projected to be a distant second with sales estimated at less than five percent. The rest are made up of other smaller consignment websites and stores such as Kixify, Grail and Stadium Goods as well as individual re-seller websites, often supported by Craigslist, Facebook and Instagram.

10 SGBWeekly.com | APRIL 11, 2016

Yet many of the traditional e-commerce and auction websites in the re-selling space are using outdated e-commerce platforms designed in the late 90’s, Luber said.

By comparison, StockX is a live marketplace where participants anonymously buy and sell certain limited edition consumer products, such as sneakers, with stock market-like visibility.

Said Luber, “The stock market’s been around for 100 years and it’s proven to be pretty efficient.”

Luber told SGB he had been tinkering with creating a stock market for sneakers since founding Campless.com in 2012 while working as an IBM consultant. Operating similar to the ‘Kelly Blue Book’ for the sneaker market, Campless.com tracks the reselling of sneakers using data compiled by eBay’s public API to come up with sneaker “values.”

Luber said Gilbert had similarly been looking to create an online marketplace based around stock trading fundamentals. Inspired by his “sneakerhead” son, Gilbert decided to first focus on sneakers and that led him to Campless. com and Luber, who also drew attention to himself with a series of TED Talks on sneaker analytics. Last September, Campless.com received

a significant investment from Detroit Venture Partners, with Campless.com now morphing into StockX. A foremost advantage of StockX, according to Luber, is transparency. Participants in the StockX exchange can find historical price and volume metrics, real-time bids and offers (asks), time-stamped trades and additional analytics on every sneaker model presented on the marketplace. Luber said with prices potentially ranging from $100 to $8,000 depending on the rarity of the item, the site helps set a “fair price” for both sellers and buyers. Just like equity stocks, prices move higher or lower based on trading prices.

Said Luber, “With traditional e-commerce sites, you see their narrow view of the world.

You have no idea where the rest of the market is selling at.”

The other major plus is trust. Trades are done anonymously and are all authenticated with StockX sitting as a middleman between the seller and the buyer.

On eBay, a buyer would have to deal with a seller if a sale goes bad, but StockX handles any issues with either seller or buyer. When an item is sold, the seller ships the item to StockX’s

Detroit facilities where it is authenticated and then shipped to the buyer.

StockX’s platform eliminates any hidden fees, such as a seller adding on a huge fee for shipping, and also assures delivery time. Luber said it’s not uncommon in traditional reselling for a buyer to find out after the sale that they’ll have to wait two weeks for the item since it is being shipped from Japan. But StockX focuses on authentication.

StockX will not settle trades until it has verified that the sneakers are 100 percent authentic.

Moreover, StockX has partnered with Fake_Education, a popular Instagram account, that has become the premier website for sneaker authentication, to vet the authenticity of shoes.

“Fakes are a huge issue in the secondary market so we are standing in the middle of every deal to authenticate it and make sure it’s real,” said Luber. “That’s never been done in the sneaker world before.”

Beyond the trading tools such as being able to set bids or asks as well as two-click trading, the StockX platform will also allow users to create their own personalized ‘sneaker portfolio’ by uploading their entire current collection.

StockX will then price the individual portfolio in real time so a user can evaluate gains and losses, as well as compare and contrast their sneaker collection to other users on the platform. This feature puts the sneaker trader on par with the same kind of metrics that have only been traditionally available for stock and financial portfolio analysis.

In addition to its robust real-time trading platform, StockX will provide in-depth

StockX is the brainchild of Josh Luber, pictured right, the founder of Campless.com and Dan Gilbert, pictured left, founder and chairman of Rock Ventures and Quicken Loans, managing partner of Detroit Venture Partners, and majority owner of the Cleveland Cavaliers.

market analysis and the latest domestic and global sneaker news.

At launch, StockX had more than 15,000 pairs of limited release sneakers representing 3,500 models. Luber said he’s only heard positives from the sneaker community on StockX’s launch.

“The feedback has been unbelievable,” said Luber. “People are always happy to have more transparency than less.”

Luber’s main goal in the near term is to prove the model works for sneaker reselling. StockX is also working on expanding its sneaker re-selling platform internationally and then will explore the sale of other consumer goods with strong secondary markets.

StockX functions like a stock market using a unique method of connecting buyers and sellers. StockX, like every stock market, is a 'live marketplace', a genuine Bid/Ask market. Buyers place Bids, Sellers place Asks, and a transaction occurs when a Bid and an Ask meet. It is an anonymous, transparent and authentic market which allows both buyers and sellers to transact immediately with 100 percent confidence across a market price.

Photos courtesy StockX

Luber lists women’s handbags, watches, comic books, baseball cards, coins, and streetwear such as the Supreme label as other items with trading dynamics that should also work on the StockX platform. Said Luber, “As long as it’s not a pure commodity item like toilet paper or a singular item like a work of art or a house, this framework for using a stock market concept should work for just about every product. It’s really a big idea about creating a new form of e-commerce.”

Luber, who has moved from Philadelphia to Detroit as part of the launch, will lead the online consumer trading exchange as its CEO. He said Gilbert has been and will remain actively involved in StockX. “StockX’s live marketplace will harness the Internet’s natural ability to facilitate a better way to transact certain segments of ecommerce,” said Gilbert in a statement. “We are going to bring the kind of trading platform and visibility to tangible products that financial and commodities markets have used for decades. The efficiency, credibility and liquidity of the financial markets have been foundational to the largest economy in the world.”

Joining Gilbert, Luber and Detroit Venture Partners in the early-stage investment is hightech venture capital firm SV Angel and its Founder and Co-managing partner, Ron Conway, Ludlow Ventures and Courtside Ventures.

The company is expected to announce an expanded investor group consisting of several high-profile entertainers, athletes and prominent figures in the sneaker world over the next few months.

APRIL 11, 2016 | SGBWeekly.com

11

ONE-ON-ONE

Andrew Hammond, Global Brand Manager, Ride at Pearl Izumi Taking the pulse of bike apparel, footwear industry.

By Thomas J. Ryan

A

ndrew Hammond has been global brand manager for Ride at Pearl Izumi since April 2013 bringing to the job a wide range of experience in the cycling industry.

As a bike manager for the Scheels location in Lincoln, NE from 2003 to 2005, Hammond managed bike orders, stocking and product training while also working the floor selling exercise equipment, outdoor clothing, golf and cold weather gear.

In 2005, he became one of the original members of Specialized Bicycle Components University (SBCU), a first-of-its-kind, inhouse professional product-training program for Specialized Bicycle dealers. He eventually led the program before taking over U.S. marketing for the bike maker and eventually overseeing a global bike fit standard for Specialized’s retailers.

At Pearl Izumi, Hammond guides the look, feel and tone of the cycling business. His responsibilites include photography, messaging, PR, product introductions and trade shows.

Overall, how has the cycling category been doing? Everything that we’re seeing now indicates that the sport is healthy, and though participation numbers have not increased, the amount of time and number of rides-per-participant has increased. Bike manufactures have seen a slow down, but business is steady for accessories and clothing brands.

What’s helping to drive cycling apparel sales? Cycling apparel has become more fashion conscious and fashion forward. Riders historically purchased apparel based on technology and performance factors. The level of quality and performance has increased across the board, and now riders have more flexibility to choose apparel that matches their personal aesthetic.

What exciting innovations is Pearl Izumi bringing to bike apparel? The biggest change for Peal Izumi has been a realignment of our product offerings to match the riding experience of our customers. We have two main categories: Pursuit is for goal-focused riders, and Escape is for adventure or experience-focused riders. This helps us to clarify the features, fit and aesthetic to provide the rider with the best possible apparel. It all started from an argument about the perfect cycling short, which can never be resolved because riders prefer different combinations of inseam length, chamois thickness, fabric compression, etc. based on how they ride. We build features like our Patented Speed Sleeve into our Pursuit jerseys, and offer non-traditional designs, especially for women, as part of our Escape collection. This shift in mindset has yielded the most exciting product from Pearl Izumi in years.

12 SGBWeekly.com | APRIL 11, 2016

Late last year, Pearl Izumi launched a new ambassador program for women’s RIDE and TRI Teams for 2016. Is the brand placing more attention on the female customer? We’ve focused on women for a long time on the product side, more than 30 years, and women have been and continue to be an important part of our business. We are shifting how we communicate to women, as many of the traditional cycling marketing outlets are not a very effective way to reach these riders. I think every cycling company is seeing the women’s category as an opportunity for growth and participation is increasing.

Run specialty stores have faced challenges reaching women with largely male staffs. Is that also true at bike shops? It’s definitely a challenge. We have an online education platform for our retailers that cover many subjects, but one area where we have really invested is retailer best practices, including how to professionally address customers, create inviting displays, make a pro dressing room and sell apparel. Customers, especially women, have high expectations for the apparel environment at retail. We’re providing our retailers with the knowledge to meet those expectations.

What’s creating excitement around cycling footwear? For Pearl Izumi, mountain bike shoes that perform well off the bike are big.

Almost no one rides a mountain bike without getting off to hike, take pictures, or scramble over rocks. Traditional mountain bike shoes had rigid soles and plastic tread that offered little traction on rocks and were miserable to walk in. We’ve seen huge success making our entire line walkable. On the road side, seamless, lightweight and minimal uppers are creating very comfortable shoes.

Coupled with a high tech closure system, like Boa, and riders are noticing.

Last year Pearl Izumi launched a new campaign and brand positioning, "Endure & Enjoy." What was behind it? We think the cycling industry, especially in the apparel space, has lost some focus on why we participate in endurance sports. While it’s important to look good (and think you look good), worrying about your “sock game” or choosing to not wear a helmet as a fashion statement isn’t what our sport is about. Lots of athletes are turned off by the elitist attitude that is becoming more common. We wanted to focus on why we do it: the love. It’s hard, but also fun, so that’s what Endure & Enjoy is about.

Is Pearl Izumi a run, bike and tri brand? Percentage wise, we sell a lot more cycling gear than tri and run. That said, we know triathletes use a lot of cycling gear. Pearl Izumi customers, as a whole, are dedicated and enthusiast athletes who really put the gear to the test.

Soulcycle has garnered a lot of attention lately. Is the spin cycling craze good for the sport? The spin craze is good for companies who make gear to support spin classes (apparel and shoes), but probably doesn’t make much of an impact on the industry as a whole. We don’t see many Soulcycle participants taking up cycling or considering themselves cyclists, but that could change. I guess it’s better than a golf craze for the sport.

APRIL 11, 2016 | SGBWeekly.com

13

ACTIVE LIFESTYLE | BIKE APPAREL & FOOTWEAR

Visible And Versatile Bike apparel and footwear up safety while keeping style and comfort in mind for crossover rides.

By M.T. Elliott

G

as prices are down and bike inventories are up with an expected slash in prices this spring. While we wait to see how that shakes out on the sales floors, now is a good time to look at shoe and apparel trends where the margins can be friendlier.

Solid color blocks and horizontal lines continue into 2016's cycling apparel but smaller brands are making bolder patterns out of topographic maps and tattoo flash art. Triangles are this year's polka dots.

Looking into the future — or at the brighter bikes in Europe — stateside cycling apparel could come to resemble the BMX patterns of the 80s with splashed or splattered colors atop highvis pinks or greens.

High Visibility Cycling gear continues to offer plenty of neon helmets, gloves, and shoes for high visibility — items easily removed for post-ride socializing.

But for apparel, where more lifestyle fashion comes into play, brands are differentiating their high-visibility lines with stylized contrasts of day-glow and darker patterns like chevrons or camo. Brands hope this apparel stands out on the rack as much as on the bike.

"Hi-viz yellow is still tops, and pink too, believe it or not," said Ruth Holliday, co-owner and buyer for Bicycle Pedaler in Wichita, KS. Holliday said her customers are drawn to bright and reflective garments, which contrast a high-visibility base color with a darker color or pattern, and then use reflective elements in high-motion areas.

More mills can incorporate reflective threads into more fabrics, and so brands should incorporate those options into year-round garments, not just shells. Some brands pay lip service to the trend with reflective logos and accents, which aren't visible at safe distances under real-world conditions. Other brands put out second-tier high-vis lines, but leave it off of premium apparel that the dawn and dusk cyclists are arguably more prone to choose.

14 SGBWeekly.com | APRIL 11, 2016

A potential trendsetter among shoes is Giro's leather laceup shoes with full reflectivity available in two tiers. POC's Lightflex Vest raised eyebrows at trade shows with its battery-powered light panels printed onto its fabric. The prototype isn't ready for market yet, but signals that brands are building visibility into apparel, so cyclists are less likely to leave safety features at home.

Hybridization As Specialization Cycling gear is awash with the buzzwords of gravel, enduro and fondo. Technically, these are race and ride formats, but they share a common thread of longer rides over variable terrain.

The trendy words are an industry response to cross-over cyclists; mountain bikers who jump on roads to get to trails, and roadies who want to ride less-than-paved surfaces and still put a foot down safely. There is gear tailored toward these niches, representing a continued shift toward versatility and comfort. Retailers should embrace these products for their enthusiast customers and downplay the specialized hype if it's not a fit.

For apparel, fondo means looser fits and more affordable kits. The styling is less about visibility and flash and more a monochromatic homage to jerseys of the past. Like the race format itself, enduro lands between downhill and cross-country, and somewhere in the mid-level range of protection in mountain bike shorts.

In shoes, technical specs aimed at enduro and gravel grinders introduce EVA foam, different types of flex with weatherproof uppers. Those features exist in other forms, but the shorthand is if it's comfortable on a six-hour ride, it will be comfortable on shorter rides, too. Mountain bike shoes in general are using more rubber lugs instead of plastic molded cleats and turning to ingredient brands like Michelin and Vibram for outsole treads that can grip slick rock and wet roads. All-terrain features will appeal to a broad audience, from cyclocross racers to weekenders looking for a go-anywhere shoe.

Stateside Bibs For years, bib shorts have been the choice of pros and amateur racers alike, but enthusiast riders have balked at such commitment, even those who shave their legs. American cyclists still haven't embraced bibs, but the trending demand for comfort and longer rides could help close the gap on regular shorts.

"People are definitely talking about bib shorts more, but sales trends wise, shorts in the U.S. outsell bib shorts two-to-one," said Andrew Hammond, global brand manager at Pearl Izumi. Even he admitted that there is no clear reason for the aversion. At shop nights or sales with Pearl Izumi on site, representatives encourage customers to try both short and bib shorts options. "Once they've ridden in them, they don't really go back."

Recent fabric improvements lured new converts with mesh uppers and stretchier straps.

New bib shorts offer the same cooling and venting strategies, block UV rays and wind. Brands continue to compete with cuts and hems, especially in women's bibs. New women's options include straps that widen at the shoulder and lay flat against the body, single front straps, and a variety of easy-off constructions for bathroom breaks. The T.laalaLaiShorts S7 by Assos use

wider shoulder straps and a magnetic closure on its center strap.

If brands continue to emphasize the technical specs of bibs, perhaps editors, retailers and riders can spread the word on the comfort of bibs — and prevent those tragic jersey-short gaps.

Getting Closure Closure systems continue to offer better fits.

Shoes that used one dial in last year's footwear added a second dial this year, but Velcro straps still reign for on-the-bike adjustments. Increased lace-up options fit the 'new-school tech with old-school aesthetics' trend. Unlike Velcro, laces and Boa systems can be changed to customize the color of the shoes. That's an appeal for customers who like to mix and match their looks, and retailers interested in low-cost SKU options that don't use up space.

APRIL 11, 2016 | SGBWeekly.com

15

FAST FIVE

Gear up and cycle through these on-trend bike apparel and footwear products.

By M.T. Elliott

POC Fondo Classic Jersey | $140 The Fondo line includes bibs, sleeves and even a scarf. POC makes a play toward fit and comfort with these clean, solid block jerseys. The raglan jersey sleeves offer a looser fit, as does the body, but this still has the under arm mesh and full-zip front for temp regulation cyclists would expect. Three color options are dimmer versions of the bright green, blues and pinks that are getting better play in Europe.

Giro Empire ACC Reflective | $275 It looks like a silvery new color option for Giro's well-reviewed Empire ACC road shoes, but these shoes turn feet into glowing orbs when hit with headlights thanks to the reflective-coated uppers.

Retro looks and modern tech, these lace-up’s have microfiber uppers and stiff Easton EC90 fullcarbon soles. There is a less expensive commuter model, but Giro gets extra credit for extending hivis innovation to its performance line.

16 SGBWeekly.com | APRIL 11, 2016

Dare2b Tuned In Shorts | $50 These shorts will turn heads for their bright colors before anyone notices the mountain bike specs. With four-way stretch, water repellent coating and multiple storage options, these shorts offer just enough tech for rides that involve more than the trails.

Ibex 3/4 Knicker | $170 The Ibex Ride line has a new fit, tinkering with lengths and panels, but the switch to a Cytech chamois should please existing fans and convert new testers. Longer bibs scream shoulder season, but the mesh panels will help dump heat from the already breathable wool. Pair it with the 3/4 Enduro Jersey.

Pearl Izumi X-Alp Launch II | $160 Enduro for all. The re-tooled Launch keeps the EVA-cushioned midsole for comfort and longevity. New features include a bi-directional closure system for a more custom fit and a tougher toe box. The flex of the X sole is countered with a carbon shank for performance stiffness in pedaling. The hard rubber sole and lugs cushion and protect, and polish off the trail-runner looks for crossover appeal.

INDUSTRY CALENDAR

TRADE ASSOCIATIONS BUYING GROUPS Athletic Dealers of America 1395 Highland Avenue Melbourne, FL 32935 t 321.254.0091 athleticdealersofamerica.com National Shooting Sports Foundation Flintlock Ridge Office Center 11 Mile Hill Road Newtown, CT 06470 t 203.426.1320 nssf.org National Sporting Goods Association 1601 Feehanville Drive I Suite 300 Mount Prospect, IL 60056 t 847.296.6742 nsga.org Nation’s Best Sports 4216 Hahn Blvd.

Ft. Worth, TX 76117 t 817.788.0034 nbs.com Outdoor Industry Association 4909 Pearl East Circle I Suite 300 Boulder, CO 80301 t 303.444.3353 outdoorindustry.org

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