Sunday, August 23, 2009

Shrinking ski industry

The recent indirect acquisition of the Rossignol Group by Jardine which already owns K2 and Völkl, along with Amer's stable now comprised of Atomic and Salomon, represents the greatest consolidation ever seen in the ski industry. This business, that used to be around 4 million of units 20 years ago has probably shrunk by half today and is likely to further shrivel for some very obvious reasons. Restrictions placed on luggage for snowbound vacationers will institutionalize rental equipment as the only way to find gear at destination resorts. Whatever was sold at retail to fill that segment will shrink by some 75%, an enormous but quite realistic proportion. I have not even mentioned the fact that with less sizes now available, ski manufacturers can no longer sell as many lengths to retailers and the board-binding marketing combination is creating a sticker shock that will make would-be gear owners to think twice, and will further precipitate the manufacturing flight to Asia. Who is the “marketing guru” that could have predicted this?

1 comment:

John D. said...

yes, I didn't know the numbers but it's been clear that airline baggage policies have greatly accelerated the switch to rentals.... nice for the rental outfits but really bad for the manufacturers.

Thanks for a good item!