While many of the mysteries around the event weren’t resolved, including whether the show will continue in Salt Lake City and what time of the year the show should take place, Outdoor Retailer Winter Market 2015 marked another ringing success.
While no official figures were available at press time, attendance at the show appeared to be flat to slightly up versus last year and the energy in the aisles was upbeat. Many attributed the exuberant crowd to a healthier industry overall, aided by the slow and steady improvement in the economy since the Great Recession led to some quieter shows in the earlier part of this decade. Many attendees at the show appeared emboldened by the resiliency the industry showed during those challenging times.
But the bigger payoff has been the way the outdoor industry is evolving to reach the emerging outdoor consumer. While the socially-connected Millennial has disrupted an industry used to backcountry enthusiasts spending days in the woods, it has also created a bigger opportunity for many outdoor brands and the show.
Indeed, the expansion of exhibitors, including running, surf and even lifestyle brands such as Levi’s making its first appearance at ORSM15, has also led to challenges fitting the show in Salt Lake City.
The show’s organizers, Emerald Expositions, recently moved the upcoming Outdoor Retailer Winter Market earlier by two weeks in part to help improve order taking for apparel and footwear exhibitors to fit their factory turnaround cycles as well as to address other conflicts later in the month. But the move was also designed to free up some hotel rooms that had been competing against the Sundance Film Festival.
The show, which has been home to the Outdoor Retailer Show since 1996, is contracted to stay in Salt Lake through August 2016 but organizers would only say they are close to making a decision. Said Outdoor Retailer Show spokeswoman Kate Lowery, “We are dotting the i's and crossing the t's and finalizing contracts, unfortunately it is premature to comment at this time.”
But the overall emerging consumer promises to continue to increase the appeal of the outdoors and boost the overall industry, including bringing a much greater fashion component to the outdoors. The athleisure trend is particularly influencing apparel innovation with board shorts even bringing prints to mens’ running shorts.
Todd Spaletto, The North Face president, marveled at how many bright colors are now widely accepted on today’s outdoor consumer whereas only athletic brands were using them ten years ago.
“We just think that today’s outdoor consumer is more active, they’re more social, they’re more connected to their community, and there’s a really cool vibe that outdoor retail represents,” said Spaletto. “I think the industry needs to catch up a little bit to where the consumer is. The outdoor consumer is pointing us in a really positive direction and we have an opportunity to bring our product offering to where they are.”
Nate Pund, managing director at D.A. Davidson & Co., who has long followed the space, said the size of the Outdoor Retailer show reflects how the outdoor industry has become “more sophisticated’ but also how the industry is broadening its reach and the experiences it delivers.
“The industry has grown both in size and focus, from a recreational and enthusiast perspective to a larger, more sophisticated brand perspective that strives to be part of your life activities and enhance your experiences,” said Pund. “At the end of the day the industry has grown from simply camping to incorporating a vast array of activities including action sports, sporting goods, core outdoor, hunting/fishing, and even tactical – that is supporting the soldier in conflicts around the world.”
That said, he added, the industry faces its challenges – namely the transformative and disruptive shifts taking place across retail – be it brick and mortar, online or catalog as well as a dramatic shift in the “outdoor” consumer.
“Millennials, the new generation of outdoor consumer, define the outdoors very differently than we have traditionally done in the past,” said Pund. “The outdoor consumer used to define themselves by a single activity, whether it be a rock climber, a paddler or backpacker. But now Millennials will do five different activities in a day. They want to try all these different things. Also, going outdoors traditionally was about escapism, retreat, serenity and things like that. But Millennials are all about connectivity and want to share all those activities and experiences with their friends and broader network. That connectivity is often hard to accomplish in remote settings.”
He added, “With that said, I believe every challenge is an opportunity and that our industry still has a very bright future!”
“The energy is great,” said David Kahan, CEO of Birkenstock USA, of the show. “It seems like the outdoor industry is doing well and the footwear category has really established itself over the last few shows where it’s become more of a destination at the show. But this is a good market for us – no doubt. We have a substantial presence with the outdoor lifestyle retailers so we have packed schedule for three days.”
“The interesting thing always about this show is how friendly and engaging it is,” said Saucony President Richie Woodworth. “It certainly brings the industry together and, if nothing else, celebrates some of the stuff that we do.”
Woodworth admits that it’s “become more challenging to get to write business here” and most of the brands accounts aren’t coming to see something new. Saucony will show some buyers future season ideas “with people that we trust a lot” but also discuss day-to-day operational issues.
“We’ll talk about sales and inventory, how do we be a better partners, etc.,” said Woodworth. “It’s a lot of conversations you really don’t get a chance to have when you’re trying to tell someone about a new technology or an innovation story that’s bigger and better than anyone else’s.”
The show also enables Saucony to reach a slightly different customer than at a running-centric trade show. Said Woodworth, “We believe that running is the ultimate outdoor sport. My favorite place to run is not on cement and asphalt; it’s a pine forest somewhere in Austria that I think in some ways that’s the spirit and essence of outdoors.”
“The thing Outdoor Retailer is that it’s us,” said Golden Harper, founder of Altra, which literally made a lot of noise with its booth featuring runners dancing on treadmills. “It’s our vibe if you will. So it’s a chance for us to connect with a lot of like-minded individuals. But the show is huge! It’s literally our biggest show of the year so it gives us a chance to connect with a ton of different people.”
Simon Bonham, CEO at Hi-Tec, noted that the outdoor shoe industry has been “really flat” for the last two years. But he feels “really buoyant about 2016 and 2017” due partly to favorable trends. This includes the whole fastpacking trend, alternatively described as ultra light backpacking or extreme trail running, as well as the overall desire for more lightweight and athletic outdoor styles from the Millennial crowd. But he also believes a few years out of the recession, consumers are ready to invest in better shoes.
“They’re hiking and camping and they want better products,” said Bonham. “They’re fed up with buying $50 product since 2010 and I believe they’re moving forward. The top outdoor brands have a responsibility to continue to push the boundaries to bring good product out to show the consumer and show that outdoor is not just about a brown or black hiker. Millennials are all about selfies and posting stuff on Facebook and Instagram so they want to stand out.”
Ryan Riggs, global senior product manager, outdoor at Keen, said that although some European markets are looking for a “little more performance technology,” “fast and light” is a dominant theme in Europe and U.S.
“Athletic’s influence is definitely taking the outdoor industry in a new direction, affecting categories that we didn’t think it would affect down to sandals and down to some of the more casual looks and kind of that crossover-bridge category that any brand that has lifestyle category and performance can reach,” said Riggs. “There’s always that bridge area where people are looking for casual comfort and that athletic influence in casual comfort is really top of mind right now.”
Brian Moore, VP of global footwear, The North Face, said many brands are learning that the “fast and light” push is more about becoming “younger more progressive outdoor” rather than converging athletic and outdoor. He said many outdoor enthusiasts are looking for less bulkier shoes to do less-intensive, done-in-a-day activities and not necessarily seeking out athletic styling. Said Moore, “To make our shoes like Nike Free doesn’t attract a younger consumer; all it does is muddy the water between athletic and outdoor. What we’re learning now is we have to be uber-credible to outdoor but do it in a more progressive way.”
Moore also believes that while some more fashionable brands are coming into the space, authenticity is crucial for the outdoor consumer. Added Moore, “We can make very fashionable shoes. But they should be waterproof, they should be insulated, they should have good traction. If you don’t include those three things, there’s really no need for the outdoor consumer to buy it from us.”
One of the newcomers was Oxx Products, the maker of coffee machines for construction sites as well as the outdoor enthusiast. Said founder Jim Doan, “For us, Outdoor Retailer is a great way to reach to outdoorsman across all types of categories.”
Oxx’s product, described as ‘“The World's Toughest Coffee Maker,” is designed to bring the comforts of home to campsites. Said Doan, “I think there’s a really romantic view of camping and people going out and roughing it. But not many people really want to build a fire to make instant coffee. They want something quick that they can do at home.”
Tracy Thomas, marketing manager at Incase, attending its second OR show, said the brand is looking to reach the many outdoor enthusiasts looking to photograph their experiences outdoors. But she said the brand’s more urban-influence bags have already saw a strong response at the last Summer Market. Said Thomas, ”The same people that go hiking and go outdoors also have lives in the city.”
Snow Peak, the Japanese maker of camping and backpacking gear, brought out its apparel product to OR for the first time. The company has been only showing its titanium utensil items and backpacks but has had some success in its lifestyle apparel at Bloomingdale’s as well as smaller accounts with as Pilgrim’s Surf in Williamsburg, Brooklyn.
“We hear people are looking more for style than for function or at least a bigger balance,” said Nate Borne, Snow Peak’s general manager of the U.S. region. “It may be a few years before it begins to be more widely adopted so it’s good to be one of the first.”
Richard Talbot, product manager of Mountain Equipment, the U.K.-based maker of backpacks, sleeping bags, trekking poles and apparel, said the firm agonizes every year about the investments in Outdoor Retailer as well as the two shows it attends in Europe.
“It’s very, very expensive to put on and most of our business has been written before the show so it becomes less of a sales-oriented show to one about marketing our brand,” said Talbot. “But we’re seeking the core specialist retailer and that’s what this show’s about.”
Steve Rosenberg, founder and CEO of Kaenon Sunglasses, likes that surf community from the defunct Action Sports Retailer (ASR) trade show is now attending OR but he also said the overall OR show fits his brand.
“It’s who we are,” said Rosenberg. “We’re an outdoors company and we’re an active lifestyle company. And this show caters to that community of people.”
He also believes the industry has shown some recovery over the last couple of years although he sees the high end and premium segment where Kaenon sells definitely doing better. Added Rosenberg, “It seems healthier but I think we’ve got a ways to go though.”
