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Spanish Market: Benefits To Wellbeing Keeping Boardsports Market Afloat
Spending capacity has dropped and uncertainty about the economy is widespread. In this climate, boardsports offer a cheaper, proven way to stay fit, mentally and physically.
By Rocio Enriquez
Inflation is hitting Spain hard. The drop in fuel prices hasn’t been able to offset the hiking costs of energy, housing and food. With energy prices still rising, this is not likely to change any time soon. Summer has not been bad though. A post-Covid Carpe Diem mentality drove people to spend their pandemic savings enjoying their holidays. However, growth in the tourism industry is marginal. The number of tourists has almost reached pre-pandemic levels, but their spending has decreased. Campsites have grown 12%, while hotels have not fully recovered yet. Less spending in the tourism sector means fewer contributions to GDP.
This casts the shadow of recession over the Spanish economy. Tourism has averted GDP stagnation so far, but that won’t last long. Nothing indicates that spending will pick up any time soon. On the other hand, there are indicators of a negative growth. There is a palpable lack of confidence in the economy. Retail activity has fallen by 1.1% and new car registrations are 12.5% down.
In this climate, even boardsports retailers are bracing for an uncertain future. Spending capacity is the main concern. “The combination of the increased cost of living and the rise in prices of sports equipment is having a negative impact on sales”, says Andrea Palazzo from Godzilla Surf Shop in Tenerife. Rising costs of production and consequent retail prices are unavoidable. With the euro weakened by the war, all kit categories are more expensive to import into Europe. “Even if the price remains the same, the currency conversion makes the product more expensive for me”, explains Nicolás Ojeda from B3 Watersports distribution.
The Summer was a bit unstable, compared to the good sales of the previous one. This was partly due to the delayed deliveries. The surge in demand happened as China went into their second strict lockdown. The closure of many factories in China resulted in shipping bottlenecks and delays in delivery. “Many experienced workers let go by the factories in China did not come back. They re-opened with less experienced workers, so production was slower”, says Nicolás Ojeda. Stock levels were generally good, though. Retailers had purchased handsomely on the back on the increased demand. The explosion of wing foiling has helped businesses that trade in this discipline. It has become the fastest growing water sport by far. You get the same thrill as from windsurfing but with none of the transportation and setting up faff. It also feels much safer and beach friendly than kiteboarding, which invites newcomers. The kit takes very little space on the beach, and you don’t need anyone to help you lift or land the wing. Schools have had good business from it. When the craze passes, the 20-30% of users who will remain will have a significant impact on sales.
Even with an increased caution at spending, boardsports are in a good place to navigate the economic storm. They proved to be a fantastic way of keeping one’s mental and physical wellbeing in good shape during the pandemic. Once you have your kit, it costs nothing to go out as often as you want. It is a cheaper way to unwind than bars and restaurants, and a cheaper way to stay fit than gyms. “Our greatest satisfaction is that we offer lessons every day, introducing new people to the fantastic world of boardsports”, says Andrea Palazzo. Not much can be done about the rise in prices as it depends on external factors, but brands could find ways to soften the blow for retailers and distributors. “It would help to have more support with merchandising. This is material that we buy just to give away”, says Nicolás Ojeda. In uncertain times, every little bit helps.
