Declining bookings

For ski industry factories, current spring orders are always a reflection of events that have shaped the preceding selling season. Since industry bookings for the 90/91 are showing a concerning decline, it is interesting to find out how this year's situation compare with 79/80 - another meager season, and why.

The drop of 1980, was mostly the result of a poor snow year combined with the beginning of a major recession. Unlike this season however, the drop in sales was limited to North America which, at the time, represented a third of the world market.

In contrast, today's crisis is taking global dimensions. With Europe enduring its third snowless winter in a row, it is reasonable to see a drop in units amounting to one-third of the volume we had a couple of years ago. At that time, Europe accounted for half of the world's business; today, it barely accounts for one third. The industry's saving grace has been the growing appetite exhibited by Japanese for ski goods, to the point that their country alone now consumes one third of the ski goods produced in the world.

A lot has already been written and discussed about what ails our business. Everyone seems to target one particular area that might need redress, but it is hard to grasp the multiple components in today's crisis. Over the next series of article, we will explore these many reasons, and propose solutions that should lessen or altogether eliminate their negative impact on the industry.

First and foremost is the availability of snow early in the season, and in sufficient quantity; that pivotal need is being haunted by the fear of global warming. How founded is that threat? Do we have to wait until our worst fears are realized to take some action or can we do something now to address the situation before it hits us?

Another challenge is the changing face of demographics. The baby-boomers, who put skiing on the map, are defecting as they are growing older, and in spite of their best efforts, are not leaving enough children behind to replenish their ranks... Leisure activities are also changing affecting skiing in many ways... How we can make the best out of a changing customer base, and find new ways to keep existing skiers involved, and entice more youth...

The high cost of skiing may be taboo to many of us, but we should not ignore it. Many non participants consider skiing to be a "rich man's sport" and hardly affordable. How can we best address that pervasive perception which affects business from Munich to Los Angeles? This might give us a wonderful opportunity to re-think and re-direct the industry's communication.

With the world becoming a global village, now is an opportunity for American ski areas to become more assertive about their product and start aggressively marketing it to both Europe and Japan. This may only benefit one segment of our industry, but again, every bit helps...

We should also take a very critical look at our industry and its fragmentation; in a small business like ours, can we continue to afford the plethora of brands and retail outlets that exist today. Are we condemned to continue competing into an overcrowded arena under the pretense that industry is a fun place to be in?

Unifying the many arms of skiing began with USIA. It should certainly go beyond whatever already exists, reach farther outside the narrow scope of skiing and emerge under a broader winter sports umbrella. It is now time to more formally incorporate USAA and PSIA within the new USIA. Together, these entities can performing their part and create the harmony needed to advancing our business.

For too long, North America has followed Europe's lead in terms of skiing. Today, it is time for us to assert our strengths in marketing, media and sports management and introduce those new approaches that will change the face of the winter sport industry as a new century approaches.

All these subjects and more will be debated in this column over the next months. Being aware of the challenges is one thing, gathering solutions however, can give our industry the resources it needs to muster the unavoidable change and re-energize itself.