By Eugene Buchanan
While many in the industry look to boats as the telltale barometer of the paddlesports retail market, another behind-the-scenes the accessories category is every bit as important to retailers bottom lines.
“Accessories are very vital and under-developed,” says Nando Zucchi, GM of Johnsons Paddlesports division, which includes Necky, Ocean Kayak, Old Town Canoe and accessory companies ExtraSport, Carlisle and newly acquired Lendal paddles. “The paddlesports industry, as a whole, should be selling way more than we are.”
One reason for the categorys lag, Zucchi adds, is the lack of synergy between all the different products on the market. “Everything is disjointed on the accessory side,” he says. “Paddlesports hasnt really gone after fashion yet-everythings very functional and useful, but not everything matches. People want to look good. Theres no reason the sport has to be ugly.”
There are dollars on the line as well. Accessories-loosely defined as PFDs, apparel, paddles, footwear and other products needed to safely paddle-are estimated to comprise 47 percent of the entire paddlesports pie, with boats making up the rest. Thats a lot of money in peripherals that feed off paddlecraft.
“Clearly, theres a strong correlation between boat and accessory sales,” says Darren Bush, owner of Rutabaga in Madison, WI, one of the largest specialty paddlesports store in the country. “No one buys a new boat without buying a new paddle or other accessory.”
Others agree. “Boats are still the first major thing people buy,” notes Jeff Martineau, manager of California Canoe and Kayaks Sacramento store. “Nobody buys accessories with the intent of buying a boat; its the other way around. But accessories are a very vital component of a retailers business.”
The reason boils down to margins, which are often better for accessories than for boats. “Accessories are all add-on sales to boats and bring in a much better margin,” explains Jim Hage, GM of The Jersey Paddler, whose 10,000-square-foot store has more than 1,200 boats in stock. He adds, “Accessories have been huge for us this year. We just came off our biggest weekend of the year with our on-water demo. People were buying accessories like candy, which was very unusual. Luckily, we had reps in the store helping us-without them, we wouldve been in trouble.”
Hage, whose store carries accessories from more than 20 suppliers, reports that this years first quarter was excellent for both accessories and boats. “The economy hasnt seemed to affect us,” he says.
MANUFACTURERS ARE CHIPPING IN
Many accessory makers are finding similar results. Werner marketing director Jim Miller, the former owner of Oregons Alder Creek Canoe & Kayak, reports that this years paddle sales are up, and the economic downturn has even helped matters. “People are making smaller purchases and that helps us,” he says.
Miller adds that bigger stores are getting better at recognizing and focusing on the most profitable SKUs, down to size and color. Werner has also helped its own success by launching the Prescription Pad, a score sheet that helps sales associates match a customer with the right paddle.
“Its something the salesperson and customer can do together that makes the selection process easier,” Miller says. “It streamlines the communication process-a customer answers six or seven questions and a paddle gets spit out at the bottom.”
Werner also sent its in-house reps into the field to better serve retailers. “Because of todays cost of gas, many independent reps arent visiting dealers,” Miller says. “This way, we can better service our customers.” Besides offering event and clinic support, the program allows reps to offer such business services as identifying key SKUs and analyzing stores open-to-buys to maximize return on inventory dollars.
The company has also fully embraced the rec market with such models as the $125 lightweight Skagit. “Weve always done well in the higher-end market, but have struggled with our identity in the rec line,” Miller says. “Its helping our sales tremendously.”
Even the bigger players are investing in their accessory lines. For example, Confluence is charging ahead with its Voyageur and Harmony lines, and Zucchi says that Johnson has invested significantly in its ExtraSport, Carlisle and Lendal lines-including designing ExtraSports new Techware line. The company also has new display systems that showcase product mixes together, has developed new boxes for its four-piece Lendal paddles, and provides better product explanations.
“Consumers want to see and feel products,” Zucchi says. “Were also merchandising things together better to make things easier for the retailer. Accessories are much more effective when you display them together, and no ones really been doing that yet.”
While these steps help, Zucchi acknowledges that every retailer is different and what works for some wont work for others. When Jersey Paddler received the new Johnson display last year, it ended up breaking it back apart. “The format didnt work for us,” admits Hage. “We sell our PFDs in one part of the store and our paddles in another, so we had to separate them.”
Rutabagas Bush concurs. “Its nice that manufacturers are trying to help, but a lot of it ends up in the basement,” he says. “We dont always have time or room to use a manufacturers point-of-purchase, especially when we can put product there instead.” Another problem Bush sees is the homogenization of displays. “How do you use it without looking generic?” he asks. “The paddlesports retail market is very diverse. Thats why we end up using a lot of our own POP.”
Other manufacturers have figured out ways to treat accessories as add-ons to their own boat sales. “Our accessory business is super strong,” exclaims Legacy Paddlesports president Andy Zimmerman, of his companys Water Trail accessory line. “We have lots of new product and our biggest push is product that cant be had from others. We have several patents on boats that have custom accessories-like the Adapt a Track and Plug and Play-which customers have to buy from us.”
Like Johnson, Legacy has invested in how those wares are displayed, and thats encouraging to retailers like Hage. “Manufacturers helping out with point-of-purchase is important and appreciated,” says Hage. “We need as much self-service point-of-purchase as possible. The more manufacturers can help with this, the easier it is to sell.”
And that, of course, is the bottom line-especially in a year that isnt coming up roses for all retailers. Martineau admits that “things have slowed down this year” at California Canoe and Kayak, and he blames it as much on natural cycles as the economy. “Things are very fickle in the paddling world as far as whats hot year to year,” he says. “Every season brings its own special flavor, and you have to know whats going to sell.”
INNOVATION HELPS
Martineau has noticed that manufacturers are placing a bigger emphasis on innovation, with many paddle and helmet companies experimenting with materials and designs. “This makes all of those product lines easier to sell,” he says, adding that hes finally seeing the lightweight trend enter the accessory market, where before it was reserved for boats.
Lifejacket makers are also joining the design craze by offering models that are more comfortable and better for the environment.
“Retailers are doing a much better job at understanding the importance of promoting PFDs,” observes Lili Colby, marketing director at MTI. The company will take its message to consumers more directly this year by upgrading its website. “PFDs are part of the paddling package, and its encouraging to see that message getting out there.”
Still, she admits that after a strong pre-season, things have slowed down. While the childrens and kayak fishing markets are still booming, MTI predicts this years sales to be flat. Colby is also keeping her eye on what else is transpiring in the PFD industry. The Coleman Co., which is owned by Jarden Corp., recently acquired Sterns and is moving the brand from Minnesota to its headquarters in Wichita, KS, with plans to manufacture under the Coleman name. This spring, Patagonia abandoned its Lotus Designs line, a PFD company it purchased from Astral Buoyancy founder Philip Curry in 1998.
Curry regards Patagonias decision as a positive for Astral, which is unveiling four PFDs this year. “On a business level for Astral, its great news,” he says. “But I view it as a wise decision on their part. Accessory businesses have to be driven with a passionate vision, and if thats not there, its easy for them to fade away. Paddlesports accessories are so specialized that if youre a bigger company, its sometimes hard to make it work.”
While the outdoor industry, including paddlesports, has generally been labeled recession-proof, theres no better indicator of the industrys health than the Spring consumer shows. And all signs are solid on that front. Bush reports record Canoecopia sales in terms of dollars this year, if not units, as did the Jersey Paddler and Kittery Trading Post shows.
“People might not be going to Disneyland, but theyre buying new boats, which leads to more accessory purchases,” says Bush. “Thats where your profit centers are.” He also notes that this year, Rutabaga is selling more high-end paddles, even to rec users. “And manufacturers are figuring out how to better treat them.”
Because of this, Bush points out that now, more than ever, retailers need to look at everything every year, and make adjustments on the fly. “If you dont, youll get caught flat-footed,” he says.
In todays economy, being unprepared is the one thing neither retailers nor manufacturers can afford. That is good news for consumers, who will likely notice everyone, from suppliers to sellers, paying more attention to this younger sibling of the boat business. All of this adds up to better products and a safer, more enjoyable sport.
