PR: Board Calls On Industry To Back 60-day Sell/Buy Season

(Press Release, May 22, 1998)—McLean, Virginia—As a result of extensive information gleaned from six months of independent research conducted among retailers, sales representatives, and suppliers, the SIA board of directors yesterday reaffirmed a 60-day sell/buy season—beginning February 1 and ending March 31—and urged the snow sports industry to cooperate with this initiative.

The SIA board of directors decided to optimize the SIA Ski, Snowboard & Outdoor Sports Show as the snow sports industry's premiere event for writing orders. The 1999 SIA Ski, Snowboard & Outdoor Sports Show will be held March 9-13 in Las Vegas, Nevada. In an effort to reduce the number of shows, the board also voted to cancel the SIA Snow Show.

"The industry can't change with a three-day meeting of the SIA board," noted Carl Helmetag, chairman of the SIA board of directors and president of Head USA. "It takes a cooperative effort from all segments of the industry. I'm excited about this first important step and now look forward to working with reps and retailers in taking the next bold steps."

"My general feeling about the meeting and the motions that came out of it are that we've collected great information from all facets of the industry and can now truly define SIA's role in the industry and our objectives over the next few years," said John Schweizer, SIA trade show committee and board member and CEO of Garmont USA. "We are in a situation where the industry can take decisive action and move forward."

The SIA board of directors also resolved to appoint a task force of suppliers to work with reps, rep associations, and retailers to implement the following additional recommendations for the upcoming and future trade-show seasons:

To conduct introduction shows between February 1 and March 1, and to schedule these shows so as to avoid conflicts among and between events.

To see a significant and measurable reduction in the number of shows.

To hold on-snow demos no earlier than February 1, and to schedule the demos in order to avoid conflicts among and between events.

The task force is charged with completing a plan of action that will reduce at least one-third of the current number of shows for the 1999-2000 sell/buy season by October 30, 1998.

"The numbers in the SIA Cost of Doing Business Survey show that trade-show expense is getting out of hand, especially for small companies," notes industry business consultant, Jeff Harbaugh. "My perception is that trade-show attendance was sometimes getting to be a response to the attendance of competitors rather than an action taken in support of the retailers."

"Obviously, there is no easy fix, a lot of work and cooperation must happen to make any real changes," says Linda Ervin of the Eastern Ski Reps Association.

"There are two resulting benefits with the decision: time and money," said Hugh Harley, SIA board member and president of Rossignol. "With all participants embracing the 60-day sell/buy season, resources will be freed up to focus on the consumer and developing the market."

The Survey Tools
In response to increased frustration over rising trade-show costs and overlapping schedules, SIA announced last October that it would invest in a comprehensive study of the current buy/sell cycle for the snow-sports industry.

First, Sport Map, a market research firm, with the help of retailers, sales representatives, and suppliers designed three distinct surveys—one for each group—addressing the sell/buy cycle. A certified public accounting firm compiled a random sample of surveys from the three groups into a statistically valid representation of the industry. The sample of surveys reflected all types, sizes, and geographic locations of stores.

Then Proteus, a marketing strategies firm, was charged with exploring the historical and current activities of the golf, in-line skate, and outdoor industries. The research documents the strengths and weaknesses in the sell/buy cycles of these other industries as a basis for some comparisons to the snow-sports industry.

Lastly, a calendar and economic analysis of the number of trade shows, participants, and amount of business conducted at each was assembled. Some of the findings include:

The sell/buy cycle is fourteen weeks long, beginning January 15 and ending April 30, with four weeks of rapid product introduction followed by ten weeks where product lines are viewed twice and sometimes three times. According to the surveys, 69 percent of retailers and 70 percent of suppliers felt the multiple showing of product lines should be reduced.

The Information Gathering Process
After compiling the research that would serve as a basis for review and discussion, three separate forum groups were set up to develop suggestions on how to build a better sell/buy cycle. The groups were comprised of equal numbers of suppliers, reps. and retailers representing different points of view from the industry.

"It was refreshing to see everyone—especially retailers—being included in this process," noted Bev Sanders, vice president of Avalanche Snowboards Inc. in Benicia, California. "It really enlightened me as to everyone's different needs and what they are looking for to conduct their business in the best way."

The forum group participants received the compiled sell/buy research prior to their meeting and were given roughly a 36-hour time frame dedicated to dissecting, discussing, and developing solutions for the snow sports industry sell/buy cycle. Solutions derived by each group were not passed onto the next forum group and participants agreed to keep their discussions confidential.

"Everyone understood each others' situations and tried to work toward a common solution for the group rather than going to war over their own agenda," said Mark Williams, president of Williams Ski Haus in Highland Park, Illinois.

The resulting work from the surveys, sporting goods industry comparisons, economic analysis, and forum groups was presented to the SIA Trade Show Committee and subsequently evolved into this resolution by the SIA Board of Directors.

"The initiative that SIA has taken here is truly unprecedented," Dell Deaton, president of Proteus, remarked. "I'm not aware of any industry which has organized and implemented an approach to come up with an 'ideal' for its buy/sell process—then worked together to make it happen."

SnowSports Industries America (SIA) is the national, nonprofit, member-owned trade association of more than 800 competing on-snow product manufacturers, suppliers, and distributors working together to promote and develop the on-snow sports industry. SIA produces the SIA Ski, Snowboard & Outdoor Sports Show. More than 250,000 people have been introduced to snow sports through SIA sponsored market development programs during the last four years. SIA produces more than a dozen industry studies such as the Facts & Figures on the On-Snow Industry and Snowtrack. For more information, check out the SIA Web site at: www.snowlink.com or the SIA Fax-On-Demand service: 1-800-730-3636.

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