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By Bob Williams
Dec. 27 (World Wide News) – Snowboard
sales, which shot out of nowhere in the early 1980’s, have
began to decline this year. Following is a year-end report, written
by Eric Pfanner of the International Herald Tribune, showing that
a handful of start-up ski brands are giving the troubled industry
a shot of adrenaline.
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Like many people in the Alps, Stephane Radiguet grew
up on skis. And like many skiers, he switched to snowboarding in
the 1980’s, attracted by its laid-back image and the feeling
of floating effortlessly through powder snow, at a time when skis
were/ long, straight and ramrod stiff – and many skiers were,
too.
Mr. Radiguet, whose nickname is Zag, became a competitive snowboarder
and eventually went to work for Nidecker, a Swiss snowboard brand,
as a designer. But as his 40th birthday approached a few years ago,
Mr. Radiguet, who is now 43, sensed that the snowboard phenomenon
might be losing steam.
So
he decided to design a new type of ski that borrows the voluptuous
dimensions of a snowboard, allowing skiers to share that buoyant
sensation.
“When I tested these skis, it was like ‘I want to go
skiing again,’” Mr. Radiguet said. So he started his
own company and Zag Skis was born.
Zag Skis operates with three full-time employees from a 270-square-foot
office in Bourg Saint Maurice, France, a railhead and pit stop on
the way to ski areas such as Val d’Isere, Tignes and Les Arcs.
Despite its tiny size, it is one of a handful of start-up ski brands
springing up in France, Switzerland, Scandinavia and the United
States that are giving a troubled industry a shot of adrenaline.
While their sales remain small – Zag Skis, for example, expects
to sell about 2,000 pairs of skis this year – they are contributing
to a resurgence in skiing, after nearly two decades in which snowboarding,
well, ruled.
The global market for skis has held steady at
4.2 million pairs for several years, according to industry estimates,
despite tough economic conditions in major markets such as Japan
and Germany. Snowboard sales, which shot out of nowhere in the early
1980’s and reached 1.5 million by the late 1990’s, fell
back to 1.28 million during the 2003-4 season.
For now, the newcomers – with names like Boheme, Bumtribe,
Armada, 4front, Line, Aluflex and Movement – pose little threat
to the titans of the ski industry, led by the German-French sporting
goods maker Adidas-Salomon, Skis Rossignol of France and the Amer
Group of Finland, which owns the Austrian brand Atomic.
But even the big players acknowledge that the start-ups are influencing
design and attitudes.
“These brands are bringing a bit of motivation,” that
is stimulating the market, said Patrick Werle, managing director
for Europe at Skis Rossignol in Voiron, France.
But Rossignol is not worried about a looming competitive threat,
Mr. Werle said, adding: “In any market, there are examples
of brands that identify a niche. After a few years, they usually
get taken over or go out of business.”
Still,
entrenched manufacturers have found it impossible to ignore the
niche brands. Rossignol and its competitors have been rushing to
develop and market their own skis aimed at proponents of snowboard-influenced
trends like “new school” and “freeride,”
which are championed by the start-ups.
New school, or free-style, which involves wearing baggy clothing
and performing skateboard-style aerial tricks in obstacle-ridden
snow parks, is all the rage in the United States and among young
skiers; freeride involves leaving the prepared runs at a ski area
in search of fresh powder, and is popular in the alps.
In the United States, snowboarding is still going strong,
with sales rising to 475,000 last season from 458,000. But there
are signs that the trend in the United States may also be close
to a peak, experts say.
“The key thing is demographics,” said David Ingemie,
president of Snowsports Industries America, a trade organization.
“Most of the new people coming in are getting on snowboards,
at least initially. But we’re seeing a lot of people who started
out with snowboarding who are getting back into skiing.”
That is sweet music to the ears of ski manufacturers, who have
had precious little good news for most of the past two decades.
As a post-World War II ski boom crested in the early 1980’s,
the industry sold as many as eight million pairs of skis a year.
But then snowboarding arrived, along with a succession of dry winters
in the Alps in the late 1980’s, which cut into sales.
The drawn-out economic downturn in Japan, which persisted through
the 1990’s, curbed growth in what has been one of the fastest-growing
markets.
Rapid inflation in ski ticket and equipment prices in the United
States had a similar effect. And many people who used to buy skis
now rent them, with the caliber of equipment in rental shops having
improved.
While volume has shrunk, winter sports remain
a sizable business, with $2.2 billion worth of ski and snowboard
equipment, apparel and accessories sold annually in the United States
alone, which accounts for about one-fifth of the global market.
The ski industry responded to leaner times with waves of consolidation,
starting in the 1980’s, as dozens of small, often family-owned
companies concentrated in the Alpine countries either went out of
business or came under the control of bigger corporations. Skis
Rossignol, ,for instance, acquired Dynastar and the Trappeur and
Caber boot brands, along with Look, a maker of bindings.
Atomic bought Ess bindings and Koflach boots before it, too, ran
into financial difficulties and was acquired by Amer, the Finnish
sports equipment maker. Last year, Amer in turn added Volant, a
niche United States ski brand.
Benetton of Italy acquired Kastle, an Austrian ski maker, and renamed
it Nordica, like its boot brand.
In the mid-1990’s, ski makers in Austria, which still has
the largest number of independent brands, developed the first effective
product innovation in years: the parabolic ski, so named because
of its hourglass shape. The wide tips and tails and narrow middle
help skiers “carve” turns, rather than skidding from
edge to edge, as they often did with the traditional, straighter
models, which were fine for World Cup racers but more difficult
for the average weekend skier to use.
“The
carving is very attractive now,” said Ewald Kainz, head of
research at Fessel-Gfk, a research firm in Vienna. In Austria, where
more than 500,000 pairs of skis are sold every year, sales are expected
to rise by 3 percent to 4 percent this season, he added.
While ski manufacturing remains concentrated in the Alpine
countries, some companies are experimenting with lower-cost
options elsewhere. K2, the only major United States brand, for instance,
has moved production of its skis to China. When K2 recently acquired
Volkl, the l;eading German brand, it started speculation about another
possible move, but the company says Volkl will stay in Germany.
This week, Adidas-Salomon said it would cut almost 10 percent of
the work force at its French snow sports division as it shifts production
to China and Romania.
Some of the start-up ventures also use outside contractors to make
skis, leaving htem to concentrate on design and marketing. Zag Skis,
for instance, are made in Voiron, near Grenoble, in a factory next
door to Rossignol.
Movement, based in Vevey, Switzerland, works with a contractor
in Italy. It has been one of the most successful start-up brands,
expecting to sell more than 5,000 pairs of skis this season, 4,000
outside Switzerland. Like Zag, Movement grew out of a Swiss snowboard
brand, Wild Duck, which was started in 1981.
By 1998, the snowboard market was losing promise,
said Roch Schenk, who handles marketing at Movement, so the founding
partners decided to branch out into skis. A year later, the first
skis appeared, and now there are 17 models, sold across Europe,
Australia and parts of Asia. Eventually, Mr. Schenk said, Movement
hopes to enter the market in the United States.
Like other employees of ski start-ups, Mr. Schenk spends a lot
of time on the road – driving 4,000 kilometers, or nearly
2,500 miles, in two weeks is not uncommon, he said.
Because these start-ups lack sizable advertising budgets, marketing
is essentially done through sponsorship of “riders”
– that is, daredevil skiers who use the skis at freeride competitions
and other road shows.
That is how Mr. Schenk started with the company himself.
Can turning out a few thousand pairs of skis be a profitable business?
For now, Mr. Schenk said, the company is breaking even, plowing
its earnings back into product development.
“I would be lying if I said we didn’t want to make
money,” he said. “But everyone at the company loves
skiing or snowboarding, and that’s the bottom line.”
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