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German Market Insight: Inflation Drops, Winter Sports Boom And Growing Interest in Surf and Skate

We’re starting the November edition as always with the facts from Germany. Politics is not really one of our top topics, but unfortunately I have to talk about it. After Donald Trump’s election as the new US president, things also heated up in Germany, and the previous government fell apart. Unfortunately, every retailer, large and small, has noticed that not everything is running smoothly for us in Germany. The reluctance to buy is clearly noticeable, which is certainly due to the general uncertainty.

Here are the facts: Inflation in Germany continued to fall in November 2024 and is now at 3.2 per cent, down from 3.8 per cent in October. This is the lowest level since June 2021. Energy prices in particular have fallen, while food, restaurants and hotel accommodation have become more expensive. Despite declining inflation, consumers continue to spend less. Experts predict a further decrease in the rate of price increases in 2024, with an annual average of around 2.6 per cent.

Now for the positive news: we all sell what we love, the fun of riding the world’s boards. Mother Hulda has meant well with us and let it snow shortly before the 20th Hintertux Park Opening. The mood was correspondingly positive. “People were just in the mood,” said Julian Ankenbrand, Head of Marketing at Mervin (Libtech, Gnu Snowboards). “We have rarely set up as many boards at the Tux Opening as we did this year. The atmosphere was great, on the mountain and in the valley.” What a successful start to the season.

And that’s exactly what retailers can say: Snowboard sales have increased dramatically, but mainly for discounted goods. This is probably related to the first point – people are watching their money more closely. Nevertheless, it is positive that people are keen on winter sports. After a short phone call with Heiko from Funbox in Ludwigsburg, I had exactly the same feeling for smaller, owner-managed shops. When I asked him how business was going, he simply said: “We’ve had the best October in a long time. We’re specialists, and people are happy to travel two hours for our advice. We’re out of cheap snowboards. I think that top-quality goods and advice will now become more and more popular.” I’ve had this feeling quite often in the last few days with other dealers I have had on the phone.

However, it is also clear that there are always black sheep who can only sell at cheap prices and thus influence our market. Unfortunately, there are also customers who come in and say: “But at this other dealer, it’s available with a 15% or 25% discount.” These customers then hold their mobile phone under our nose, and then of course it’s hard not to find a middle-ground solution, says Jörn from Westside in Münster. In this case, the industry should definitely do more to support the good retailers. This is what you hear from Choppy Water, for example, who work very cleanly here and will no longer supply some retailers in the future. “We sell a high-end product here, with an average retail price of 699-800 euros, handmade in the USA. Both the retailer and the end consumer should understand this,” says Robin Schmand, the new sales rep in Germany.

The topic of step-on, backdoor and quick-entry bindings is becoming more and more important. However, 74% of all snowboard bindings sold are still standard bindings. This number is likely to increase in the coming years. This week, Union introduced its version of the Burton Step-On, which will soon be available for purchase in a limited edition. In my opinion, this is a clear sign when Union and Burton enter into a cooperation – the two leading binding manufacturers worldwide. Of course, Nidecker has also brought a lot of movement to the market with the Supermatic and now the new FASE bdining sysem will be launched on 4 brands. We are excited! Stefan from Switch Boardshop also celebrated his 20th anniversary in October. Congratulations from us! For him, standard bindings still account for a higher share of his business. “But the demand for quick-entry bindings is definitely increasing more and more, at least from what I can tell so far in the still young season.” 20 years, rad! Especially the last few years after Covid, and the years with little snow keep it interesting. How are you doing? “Let’s put it this way, if you don’t do anything, nothing happens. It takes a skate team trip, a skate contest, trips, social media campaigns, etc. It’s getting more and more exhausting, but it’s still fun and we’re looking forward to the winter season.”

Jens Gramer from 58 in Ulm can tell you a thing or two about these promotions. He came up with the brilliant idea of organising a snowboard test in which only owner-managed snowboard shops take part.. How did it come about? “The background is simple: I myself have not been snowboarding enough in recent years, and that’s just not good. Of course, we all have way too much work. But it is just important that we convey this great feeling to our customers again. And that’s only possible if you do it yourself. That’s exactly how the idea came about, and what has come of it now is just great. So many shops that come themselves, send their employees and even offer snowboard trips again. The whole thing was set up without a real budget, but with manpower. One thing is clear: we don’t collect vouchers, coupons or email addresses from the selected brands, as is now common practice with some tests. We don’t want any B2C business or direct sales, which unfortunately has now become common practice. This is about the shops and their customers. We look forward to it and will report on it.”

Then there is the surf category. Of course, as a German it is relatively easy to say that we actually have the perfect swell every day in Surftown, but with temperatures below freezing outside and 8 degrees water temperature. You definitely don’t go surfing there in board shorts. We were invited on site with some retailers and tested new models there. Klaus from Frittboards was just thrilled with how good it is there. And Chris from Santoloco didn’t miss the chance to ride a few waves either.

When I asked them whether Surftown influences the sale of surfboards, both said yes. We have more and more custom orders, which of course can also be traced back to the wave in Munich. The surf skate ramp is now set up, and the courses start here. Surftown is a real enrichment for surfing in Germany.

But river surfing is also growing and growing. An incredible number of participants at the Rapid Surf DM in Rheinriff Düsseldorf – 98 participants – not only pleased the sponsors, but also the president Michael Zirlewagen. “We will have a lot of fun here in the next few years and experience a lot,” was his feedback on the DM.

It’s not long now until December, but first there’s Black Friday, the darkest day in the retail calendar – or should we say month?

RIDE ON, your Toby Hammer.