To ski industry factories, current spring orders always reflect events that have shaped the preceding selling season. Since the 90/91 bookings are showing a serious drop, it is interesting to see how it compare with 79/80, another meager year, and see what are the real causes behind them.
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.
Today's situation differs in that Europe is where sales have dropped the most following three mediocre snow years. Unlike in the past however, these repetitious mild winters are seen as a mounting evidence that there could be some truth in the much publicized "greenhouse effect".
Out of superstition and in an effort to obliterate that grim possibility, the whole ski industry would rather stick its head in the sand, and see these events as temporary "flukes". Drought patterns certainly look less conspicuous now that ski areas have multiplied their snow making arsenal over the past decade and seem able to make do with very little snow.
Aside from that debate, this year's shrinking wholesale business, may go beyond snow availability and brings up factors such as changing demographics, new leisure alternatives, and some disquieting perceptions towards our sport.
Baby-boomers who fueled the expansion of skiing are getting tired. Their older bones don't want to fight the mountain anymore and many prefer gentler, kinder leisure activities such as golfing or laying in the sun... These people leave behind a substantial demographic gap that will only be filled - to a much lesser degree - with today's micro baby-boom. Unfortunately, there won't be enough skiers among them to replenish the parent's ranks...
Another cause for concern, is the relative inconvenience of skiing which often means logistical nightmare on the way to most slopes. In contrast, going on a cruise or laying on a beach is much simpler; big deal if the airline loses a bathing suit! By remaining a patchwork of mismatched services, our sport makes it hard on the would-be skier. From finding and hauling skis at the airport, to getting a rental car, driving to the area, locating the keys to the right condo and finally finding it, all the way to lining up for a lift ticket, skiing can be a testing experience! Contrast that with a cruise or a Caribbean vacation, and it becomes easy to see why we are at such a disadvantage...
Our greatest enemy however, is one that is also taboo, that no one in the skiing circles want to admit... It has replaced the "leg-in-the-cast" as a cliche. Simply, it is that too many non-participants perceive skiing to be extremely expensive... Without engaging into costly market studies, the prevailing answer from ex-skiers as to why they have dropped out, is "skiing has become so expensive"... Even in showing that cost of skiing has held well against the C.P.I., our past and potential clientele don't seem to understand why they have to pay so much for equipment and services while, on one hand, other consumer goods have generally staid level or gone down in price, including far-away vacations in the sun...
While Japan stills spends recklessly and seems immune from the high cost of skiing, this negative picture is being painted from Munich to Los Angeles, and this perception - I stress the word - is something our industry must reckon with immediately.
Of course, there are more areas of concern that we cannot cover in one single article. Some have to do with further consolidating the other arms of our industry such as USSA and PSIA and get them to work in unison with USIA. Others could deal with the way we approach the youth market and can turn them into staunch supporters of skiing. Before we do that however, we must take a look at a host of simple solutions that can be implemented to address today's situation and turn things around. In next month's article, we'll discuss some of them and assess their potential impact on business...
Friday, February 1, 1991
Thursday, November 1, 1990
Addressing the cost of skiing...
Most non participants (and some participants too) perceive skiing to be too expensive. Skiing is now reverting to a "rich man's sport". Manufacturing sophistication is pushing sport into an "ultimate" corner, where numbers are going down. Solutions would consist of addressing the problem head on with the USIA marketing campaign. reforming our junior racing system, Missed marketing opportunities, and how to re-direct communication.
Monday, October 1, 1990
Changing leisure habits
Demographics and leisure habits are changing; baby-boomers are growing tired. They'd rather go on a cruise or lay in the sun. Is their own micro baby-boom enough to provide a deep enough replacement? Skiing most of the time is a pain in the neck,... Solution would be getting the best out of that micro baby boom, working with schools, re-packaging skiing a la Club Med (or a la Cruise type) making it a one stop shopping experience, enhance tie-ins between ski shops and ski areas,
Saturday, September 1, 1990
Global Warming
Problem of global warming. Who to believe? Is it safe to pretend the problem doesn't exist or should we take it seriously and implement a clear course of action. For sure recent snow making explosion hides somehow the problem. Solutions would be, first ascertain the truth of the matter, further improve snowmaking efficiency; look at alternative vegetation that can optimize snow retention, look at refrigerating lower slopes - using geothermal energy where possible?, look at ways of developing giant blankets that would enable areas to make and store snow in advance, look at developing new resorts at higher elevation,
Wednesday, August 1, 1990
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.
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.
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.
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.
Sunday, July 1, 1990
Euro Skiing
A third snowless winter has forced many Europeans to rethink their views about an industry, that until recently, had never faced such a drop in business. The facts that America wasn't able to pick up all of the slack, and that Japan's growth may be slowing down, are introducing concerns which are more than snow deep, and will undoubtably lead to some radical changes.
Europeans are not taking the recent warming trend too seriously and believe records snow falls may be right around the corner, yet ski areas are now gearing up for more snow making facilities and grooming every run with a fine-tooth comb so they can open under the most marginal conditions. Will that suffice? Probably not.
There is a growing feeling in the Alps that hard-core skiers are leaving the sports in large numbers. The attraction from sun and sea resorts seems to be the main reason for this alarming attrition. North African and Caribbean resorts along with cheaper group air fares have suddenly come of age and have become the number one competitors to skiing.
The benefits - especially during this past drought seasons - are obvious. Conditions in the tropics are more predictable than Europe's capricious weather, and the logistics - shorts and swimsuit - simply don't compare. Europeans who used to be enthusiastic skiers and are now approaching their 50's, feel their bones are getting weaker and no longer want to "kill" the mountain.
To make matters worse, they've failed to pass their passion for skiing to their children who are less avid as they are confronted with a host of recreational options. Winter sports may be fun, but they're no longer the only game in town... Monoski and snowboard have played a role in retaining more youth into the winter sport scene but they've failed to add new participants... Undeniably, there now is a "blase" attitude towards winter sports in Europe.
Until recently, the continent drop-out rate has been masked by the growth which came from Scandinavia, Germany, and Holland in the 70's, and one decade later by the explosion of skiing in the U.K. Once these trends stabilize, the drop could accelerate. Obviously, the evolution of the east block countries is watched with high hopes; however, some lag is to be expected between the moment these countries turn their economies around and the time they begin consuming western style...
On the retail front, a record numbers of failures are expected this year. Unlike here, European ski retailers are not as specialized and are all dealing in counter-seasonal sports. Even though that diversification shelters them against poor winters, their small volume is placing them in an awkward position against a mounting network of chains.
While ski areas shops used to do a significant retail business, they are gradually losing to city businesses and their sole strength remaining at rental. One significant fact concerns disappointing retail sales of snowboards compared to the rental volume they generate. If the trend goes on, rental may severely curtail retail sales of equipment.
Over-capacity is therefore a problem shared by all ski areas. This will force more and more European destination resorts to actively prospect in Japan and America. Without a question accommodations and general levels of service will have to fit the specific needs of non-Europeans, Alpine ski resorts know it and are gearing to go ahead with these adjustments. It is only a matter of time until that transatlantic competition will be felt at home.
Logistics are another negative often associated with skiing. The reason behind the successful development of alpine skiing in Scandinavia has been its integration into packaged tours, where everything is taken care of... To survive, the whole European skiing industry may have to accelerate that trend for all-inclusive pricing and pampered service. Upcoming airline deregulation, as well as an increasing network of high-speed trains over the continent will make travel easier and take some headaches out of skiing.
Is there something to be learn from these European woes? Most certainly. In this global day and age, trends are becoming more universal, and watching Europe's response to some trying times might provide us with some ideas we could just use at home.
Europeans are not taking the recent warming trend too seriously and believe records snow falls may be right around the corner, yet ski areas are now gearing up for more snow making facilities and grooming every run with a fine-tooth comb so they can open under the most marginal conditions. Will that suffice? Probably not.
There is a growing feeling in the Alps that hard-core skiers are leaving the sports in large numbers. The attraction from sun and sea resorts seems to be the main reason for this alarming attrition. North African and Caribbean resorts along with cheaper group air fares have suddenly come of age and have become the number one competitors to skiing.
The benefits - especially during this past drought seasons - are obvious. Conditions in the tropics are more predictable than Europe's capricious weather, and the logistics - shorts and swimsuit - simply don't compare. Europeans who used to be enthusiastic skiers and are now approaching their 50's, feel their bones are getting weaker and no longer want to "kill" the mountain.
To make matters worse, they've failed to pass their passion for skiing to their children who are less avid as they are confronted with a host of recreational options. Winter sports may be fun, but they're no longer the only game in town... Monoski and snowboard have played a role in retaining more youth into the winter sport scene but they've failed to add new participants... Undeniably, there now is a "blase" attitude towards winter sports in Europe.
Until recently, the continent drop-out rate has been masked by the growth which came from Scandinavia, Germany, and Holland in the 70's, and one decade later by the explosion of skiing in the U.K. Once these trends stabilize, the drop could accelerate. Obviously, the evolution of the east block countries is watched with high hopes; however, some lag is to be expected between the moment these countries turn their economies around and the time they begin consuming western style...
On the retail front, a record numbers of failures are expected this year. Unlike here, European ski retailers are not as specialized and are all dealing in counter-seasonal sports. Even though that diversification shelters them against poor winters, their small volume is placing them in an awkward position against a mounting network of chains.
While ski areas shops used to do a significant retail business, they are gradually losing to city businesses and their sole strength remaining at rental. One significant fact concerns disappointing retail sales of snowboards compared to the rental volume they generate. If the trend goes on, rental may severely curtail retail sales of equipment.
Over-capacity is therefore a problem shared by all ski areas. This will force more and more European destination resorts to actively prospect in Japan and America. Without a question accommodations and general levels of service will have to fit the specific needs of non-Europeans, Alpine ski resorts know it and are gearing to go ahead with these adjustments. It is only a matter of time until that transatlantic competition will be felt at home.
Logistics are another negative often associated with skiing. The reason behind the successful development of alpine skiing in Scandinavia has been its integration into packaged tours, where everything is taken care of... To survive, the whole European skiing industry may have to accelerate that trend for all-inclusive pricing and pampered service. Upcoming airline deregulation, as well as an increasing network of high-speed trains over the continent will make travel easier and take some headaches out of skiing.
Is there something to be learn from these European woes? Most certainly. In this global day and age, trends are becoming more universal, and watching Europe's response to some trying times might provide us with some ideas we could just use at home.
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