Legacy Paddlesports has informed its dealer base that it will shift its Liquidlogic whitewater boat brand to a direct-to-consumer model starting Oct. 1, 2014.
The Fletcher, NC based maker of rotomolded kayaks announced the change in a newsletter emailed to dealers Aug. 15.
“While this has not been an easy decision, we, along with our investment partners feel that having a direct message to the end consumer will allow for future growth not only for us but for the sport of whitewater kayaking,” the company states in the newsletter.
The newsletter goes on to note that Legacy Paddlesports has seen the number of whitewater kayak dealers decline in the United States over the last five years “along with a massive growth of manufacturers all battling for floor space, marketing dollars and sales.”
The B.O.S.S. Report was unable to reach executives with Legacy Paddlesports, but did confirm the authenticity of the email with one of the company’s sales reps.
Legacy told its dealers it hopes that a direct-to-consumer distribution plan “will invigorate the sport and provide the kayaking community with a vast array of kayak designs to fit their particular interest.”
“Changing the way we sell kayaks at Liquidlogic has been the hardest decision I have been part of since joining the industry,” Legacy Paddlesports Partner and Co-Founder Shane Benedict states in the article. “Our dealer partners have been a huge part of our success as we developed Liquidlogic, but this move is what we feel is right for the company as a part of the sport of whitewater kayaking, and as a responsible employer.”
Consumer surveys conducted for the industry funded Outdoor Foundation indicate that about 2.1 million Americans participated in whitewater kayaking in 2013 compared to 8.7 million in recreational kayaking, 2.7 million in sea touring, and 1.8 million in kayak fishing. The research estimates participation in whitewater kayaking grew 6.6 percent from 2011 to 2013, which was enough to make it the tenth fastest growing of 43 outdoor activities in terms of participation. But dealers say a variety of factors have long made it a low-profit category.
“The whitewater market is highly fragmented with limited sales,” noted one paddle sports sale rep, who requested anonymity. “When a manufacturer releases a new kayak you see a spike in sales. When the next new kayak comes out from the competition the sales of your new boat dry up. It is a short 3 or 4 month cycle of sales for your product until the next new kayak hits.”
Ed McAlister recalls suggesting more than a decade ago that whitewater boat makers consider setting up a drop shipping programs to reduce inventory risk for and rein in rampant discounting by – dealers.
“I think very few people make money on whitewater boats,” said McAlister, owner of River Sports Outfitters a Liquidlogic dealer in Knoxville, TN. “There is a limited number of people doing it and there are so many pro deals and backyard deals going on and the changing of the boats and the big discounters out there who destroy what business there is.”
Legacy Paddlesports said it will continue providing its premium line of Native Watercraft fishing kayaks through current channels of distribution and has no intention of changing that sales model.
As reported by The B.O.S.S. Report in early July, kayak fishing remains the sweet spot for boat makers thanks to growing participation and anglers’ propensity to deck out their boats with marine electronics and other accessories. Participation in kayak fishing grew 20 percent in the three years from 2011 through 2013, or about three times faster than participation in whitewater kayaking, according to the Outdoor Foundation.
“Kayak fishing is a rapidly growing sport with an established yet expanding dealer base,” Legacy said in its newsletter to dealers. “We will continue developing the brand to provide functional, profitable and innovative boats that excite your customers. We will be mailing out Preseason Programs next week and posting them on the Dealer Website soon!”
