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UK Market Insight

It can only get better – can’t it? This past 8 weeks I’ve taken calls from competitors asking “What’s going on?” – it seems we are all in the same boat.

How’s it been for you? It’s been a pretty torrid time for almost everyone in the watersports market – I’ve had all sorts of words to describe it but most are not printable so “challenging” appears to be the most apt description.

What really is going on? Does anyone know? This past summer must be one of the worst on record – and I’m not just talking about the miserable weather! There does not appear to be one watersports retailer that has had a good time of it. I cannot find one that is feeling positive. Some have done OK on rental, hire and teaching – but there appears to be nobody that has done well on sales and most (all) are still sitting on too much stock. Way too much stock.

What can we expect from the future watersports market? You can take individual sports and put it down to specific issues. For example – wakeboard boats have simply got too expensive, and that’s true they have. The wakeboard boat market is going to continue to retract and it is now a sport for the wealthy. Thank goodness for cable. But is it ever going to get back to where it used to be? I think the simple answer is No.

SUP – well the good news is that iSUP boards have a life expectancy – unlike good old rigid boards that seem to never die – hopefully iSUP will need replacements in due course. But what volume of people will replenish? And how long until the glut of product has finally moved on – years? When will enthusiasts trade up in the market? There is some positive news from the Southern Hemisphere where a key brand owner has commented to me that “watersports customers appear to be moving away from the ‘bargain basement’ product and trading up” – his view is that we in the North will follow suit.

I am confident watersports will recover but to what extent? To what volume? What level of business can we anticipate for board watersports? And when?

So it’s time to turn to an ‘old man of the sea’ – and I can use this title because I am older than him – Andy Biggs is the owner, founder and main man at Andy Biggs Watersports. Established in 1985 (yep, you read that right) and still going strong today. In those early days of windsurfing I used to race against Andy and the one thing I clearly recall from our time on the water is that Andy always had plenty to say and was always forthright – we are both similar in that regard.

“This is the new norm”. He kicks off almost angry “I’ve been at this for too many years and I think we’ve seen most things and lived through the ups and downs of our boardsport. But this is different. The post covid time, the greed – and yes I would call it greed – of silly companies who just simply think that they can keep growing year in, year out, has cost us all dearly. They simply do not see the new norm, the new reality of the situation and they simply continue to think growth, growth, growth”

“Discounting starts at the factory with over optimistic forecasts. Brands have to appreciate that those days are long gone. Retailers have to follow suit. There’s no point in us all just walking blindly down the train tracks thinking that everything will sort itself out… thinking that everything will be OK. There’s a train coming! In fact the train has come!”

So how are you handling the situation? “We’re focussed on what we have today. On where we are today. Basing the business around that and if we get a growth year then that will feed through to some extra bottom line. We’re going back to basics – getting out on the water with our customers, making sure our staff are enthused, motivated and involved in the sports. It’s no longer good enough to sit in front of a computer and wait for the clicks – they’re not coming. Wake up. Get out with the customers.”

Is Andy right? Is this the new norm? Should we simply accept the new size of the market for what it is? And what about the discount opportunities from suppliers surely they are too good to miss? Andy continued, “Why? What does it bring us? Discounting. Don’t get me started. Why on earth do people do that? I’d rather put the prices up than discount. I’d rather hold my price and be the last one to make the sale – at least I will put some profit in the till”

So while I had Andy going, I thought I would throw another one into the ring. What about brands going direct to market – is that a threat to his business? “Oh yes. But more so it’s a threat to their brands and they’re paying the price. We used to stock 40 or 50 boards from a well known brand, we now stock 5 and replenish when we’re ready. That’s the new reality for them” Any last words? I was feeling a bit bruised but thought I should ask. “Simple. Cut your own cloth. Make it work for you and not for your suppliers”

As a supplier I felt a bit beaten up.

Another ‘old man of the sea’ is Ian Gregorelli – he hails from the same generation as Andy and has a similar background with a family business that goes back all those years. What does Ian have to say? “Hah! It’s a bloody nightmare. Interesting for sure. We usually sell loads of second-hand kit but the stock pile of new kit and the discounts simply means that people can buy new kit for the same price as our used kit. We’re just working our way through the mountain of stock, perhaps next year will be better. It cannot be any worse – it really cannot be any worse?!”

The trouble is Ian, I have heard that before – look back at the last issue!

Finally chatting to another key watersports retailer who wanted to remain anonymous. “Given the current rate of sales we have enough neoprene to last us for 4 years. Or longer. And I have enough Surfboards for 2 or 3 years. It’s a disaster.

Don’t come to me looking for pre-orders, there are none”. Another bruising message for a distributor to hear and quite a sobering thought. How are the brands, the factories and the distribution chain going to cope with this new normal? The trouble is that there are only so many sobering thoughts that you can cope with.

Surely it cannot get any worse? Can it?

On the other hand we are tilting headlong into winter and there is a real optimism about, retailers have been calling in stock early and early season sales are happening. How the pendulum swings.

Let’s hope that soon I can bring something positive to the pages. If you have some

views – positive or not – please do get in touch. I’m always on the lookout for new people to talk to – [email protected]

Good luck – we need it.