BOSS: Were about a week a way from yet another Winter Market and you sound pretty positive about the future of the show. What are the key initiatives for OR moving forward?
PD: We really have three main objectives. First, serve a diverse marketplace of outdoor buyers and sellers; second, stay current and relevant to our customer’s needs and business objectives; and third, play our part in working to grow the outdoor industry through consumer outreach efforts and initiatives.
BOSS:What have you heard about the health of the outdoor business so far this year?
PD: Retail has been stronger, especially towards the end of the 4th quarter, yet fall was challenging for many stores, so many stores ended up slightly ahead of 2003 numbers. The stores that are engaged in activities, and outreach programs with their customers are doing well however, and then in terms of category – apparel this past year was a strong category for growth.
BOSS: The Salt Palace expansion: Is it a done deal? Is it meeting expectations/deadlines?
PD: Yes, it is all on schedule and people will see construction going on in the back lot of the Salt Palace. In terms of the done deal…it all rests on a vote that will be cast by the state in February – as theyre looking to raise the funds for a bond that will fund the construction.
BOSS: Some of the bigger sporting goods trade shows have suffered from declining foot traffic, what contributes to OR’s success?
PD: Again, the market will drive the foot traffic at a trade show, and the expansion of business at Retail – through various channels. The Internet growth this past year in sales for many retailers was extremely strong…which is a great sign – as this indicates that a younger demographic is shopping for outdoor products online. The other thing that Im failing to mention here that is important – is that when the retailer’s business is stronger…that means that the manufacturer’s business is doing well too – so it needs to be noted that the market growth is being fueled by great product coming from the manufacturers and brands of hundreds of outdoor companies.
In terms of Outdoor Retailer, our team has worked really hard to evolve the trade show and the dynamics of what a buyer can experience at OR.
BOSS: Can you talk about some the specific changes people will see this year?
PD: Weve changed the demo component, making it more relevant to buyers – and not just a free ski day; weve added tremendous seminars – by working closer with OIA, OIWC, FabricLink, eBay and Microsoft to bring really applicable business practices and initiatives for the retailer to learn and adopt; the GreeenSteps program has been extremely successful in its first year this Winter, and weve also found the means to power the show on wind energy – which is the right thing to do for our environment, which is the right thing to do for our market. Weve added in a fashion element, and this is something we are incredibly excited about because of the response. A lot of folks are always saying that fashion and outdoor apparel dont mix, and thats just not true. We put this fashion show idea out there and 120 companies submitted product. I really have to give credit to Royal Robbins for this because of what they did with their booth, but several other companies have stepped up as well.
In all reality, the apparel sector of this business has been doing very well lately, and that is driving foot traffic as well.
BOSS: Where will ORs future show growth come from?
PD: There are two components. First, if the market grows then the show should be a reflection of this. Second, buyers weve spoken with are looking to maintain their core outdoor businesses, but also are looking to serve a growing and diverse portion of customers that are now coming into outdoor stores, who want to buy apparel, accessories, and gear as a outdoor novice.
Perhaps the biggest contribution to foot traffic is the strong and diverse market that attends the show. We have buyers from big-box stores, department stores, chain stores, gift shops, and the biggest element is the strong presence of the specialty retailers. In our market we are very fortunate because it consists of so many small specialty stores. About 60% to 61% of the buyers in attendance are from small companies.
BOSS: Other trade shows have added a consumer component to drive traffic. Is OR considering this?
PD: We are not looking at adding this component, as the show needs to be built for the buyers and decision makers. If you look around the show for the orange badges, which are the retailers and buyers and decision makers, you will see that there is a very high percentage. I dont want to sound too proud about this, but I think that OR is unique in that aspect.
BOSS: Has VNU decided if it will do a pre-Summer Market event in Chicago?
PD: Theres a lot of good stuff happening in Chicago, and yes, it is a done deal. Well be calling the event Outdoor Preview and it will be held on June 7-9. Twenty-five selected retailers will be invited as well as 25 apparel companies.
The fact of the matter is that people are seeing lines earlier. This is going on right now-apparel companies are flying their sales managers all over the country in May, June, and July before OR to do line presentations. We thought it would be easier to have all of the retailers and all of the apparel companies together in one place and knock it out in three days. I went to the retailers first, and they all said it would be feasible. If a retailer can see ten lines in two to three days, on one short trip, it is an enormous benefit.
BOSS: Why Chicago?
PD: Its in the middle of the country, has a good and convenient airport, and its something different for us “outdoor folks.”
BOSS: Are you concerned at all that it will take away from the experience and foot traffic at OR?
PD: If we thought for one minute that this would hurt Summer Market we would back off. The reality is that this is happening already and the Outdoor Preview really wont change anything at OR. If it does I will be the first to back off of the idea. Thats why we are testing it this year.
If it does affect OR then one answer would be to move the show up to fit in with these accelerated schedules. That is something we talk about every day, and I can see how the show could be moved earlier. The people who are proactive about their business are making decisions earlier and we may need to accommodate that.