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Austrian Market: A Rough Start To The Year, But Hope For 2023

The first summer trade shows are approaching, and at the time of writing this article, the warm temperatures are already giving us a taste of summer. The first days of meteorological summer are already behind us, and they came earlier than ever before. However, it is not only the fluctuations in the weather that seem to affect consumer behaviour.
By Björn Bettermann

Planning and making prognoses are once again mission impossible. These are by no means the only uncertainties we have to live with. The ongoing Ukraine conflict, the as yet unresolved Covid crisis and the ensuing global challenges in terms of energy crisis, raw material shortages, supply bottlenecks and rising prices in all sectors also have a far more significant impact, not only on the upcoming summer season, but also on the next winter season. Delivery problems and planning uncertainty are a real headache that has been with us for some time now!

Although the Austrian economy recorded robust growth in the first quarter of 2022, this is no clear indication of what lies ahead, given the comparison with the lockdowns in the first half of 2021. Meanwhile, domestic consumer confidence has dropped to its lowest level since the financial and economic crisis of 2008/09, with recent studies indicating that almost one-third of the population intends to buy less.

Consumption is once again coming to a halt. The winter season, in contrast, has returned to a very positive course for many, with sports equipment retailers and also the cable car industry drawing a more positive balance of the tourist season. Although pre-Covid figures remain a long way off, the overall sentiment was much better than in the previous season. This is also reflected in the pre-orders for next winter, which are clearly back on an upward trend! It remains to be seen whether Covid will play a greater role in the autumn than it does at present. One particular area where the impact of Covid and of the global political situation continues to be felt is in the global supply chain. Lockdowns in the world’s biggest trading centres, such as Shanghai, have a very big impact on the global economy. So that remains a major source of uncertainty.

Regarding the trade in boardsports and leisure products in Austria, we expect the situation in the supply and demand side to be at least stable. Whether skate, fashion or water sports equipment for foiling, surfing, SUP, wake etc., the supply situation is critical across the board, but there are still products available in all segments and demand can still be met: but here, too, further bottlenecks and an increase in prices are expected due to the above-mentioned supply chain issues. It’s difficult to make forecasts and you have to just take things as they come.

Udo from Xdouble Shop in Innsbruck reports little footfall. “People have become more cautious in their buying behaviour,” he says and adds: “but that’s also understandable given the news we’re getting every day. I have also become more conscious of prices in my everyday life and I pay more attention to what I spend my money on. It’s probably the same for everyone”. There is no particular category of goods that he can single out, which is performing well or not. “Shoes, bags, and girls’ clothing are generating a good turnover. Our traditionally strong skateboard segment has gone almost completely quiet at the moment. You can clearly see that the warehouses of the big online retailers are packed and skate hardware sales are taking place,” he says. The smaller retailers can’t keep up with that, because that would eat up their entire hardware margin. This shows once again that we should at least try to keep the prices stable so that everyone can make their own economic calculations.

The mood out there is rather restrained and once again we have to wait and see what the season will bring. The big hurdle at the moment is no longer the Covid crisis, but the Ukraine conflict, and we all hope that the situation in the region will calm down soon so that we can all find our way back into more tranquil waters.
PEACE PLEASE!