European Outdoor Group (EOG) said wholesale figures indicate that sales of outdoor products still exceed €10billion in Europe despite problems with the weather and economic uncertainties.
The data point comes from the ‘State of the Trade 2011 Interim Report’, which builds on a groundbreaking report covering the 2008 to 2010 period published by EOG last year. New partners in 2011 report include Jack Wolfskin, Petzl, La Sportiva and Original Buff. The success of the project last year and the participation this year of over 100 brands have made the data collated and analyzed even more reliable.
EOG President David Udberg noted, “The combination of uncertainty in the Eurozone, wider economic concerns and unseasonal weather patterns has affected retail sell-through all over Europe and makes more precise comments at this stage of the report basically impossible.” Following the forthcoming peer review, sell-through effects will be clearer by the time the full report is published. What is apparent across the market is the greater competition for market share linked to changing distribution patterns, changes in consumer expectations and evolving buying habits.
EOG Vice-President Bernd Kullmann, CEO of Deuter Sport, observed, “Participation in outdoor sports is an ongoing trend so the outlook overall is positive but, looking at the actual potential for the market, we have to face a harsh reality. The regions that are strongest commercially are saturated with product and companies are paying a high price to gain market share and deliver growth. As an industry, we should be making realistic assessments and try to build a decent but solid growth instead of trying to break records while losing sight of the real strength of market demand.”
The 2011 figures confirm this picture; just looking at the pure sell-in figures and not considering inflation (EU average of 3.1% Source: Eurostat) and currency developments, 2011 was a successful year for the sector and, in the current economic situation, proof that Outdoor is far more than a trend.
Wholesale growth for the European Outdoor Market: 2010-2011*
The 2012 outlook in the industry is conservative.
The full report, spanning the period 2009-2011 and including detailed country and category specific figures on volumes and values, will be published later this year but early analysis of the sales figures (supplied on a 100% confidential basis) allows the following key percentages to be shared with the whole industry. It is important to stress that participation is open to all relevant brands and is not restricted in any way to EOG members.
*Please note: Inflation is a key element to be borne in mind when interpreting the data as this was not taken into account. Eurostat (for a complete overview, please refer to www.epp.euorstat.ec.europa.eu) estimates the inflation rate in the European Union at 3.1 %; certain countries, such as the United Kingdom, are even estimated at 4.5%. Comparing 2010 to 2011, currency fluctuations have also played an important role. In particular, growth shown in year to year comparison in euros non-Euro countries might be a result of this (all participating brands were requested to supply country and product category values in Euros appropriate to the year and season.).