Like a wave rolling towards shore, paddlesports sales of late have had a history of building up early and then crashing down. Such was the case last year, when sales started with double-digit growth and faded by mid-summer, and they’re shaping up that way again this year.
The good news: the swell is up, with the distant shore of summer still too far away to forecast an ebb.
“For us, things are looking up over last year,” says Woody Callway of Legacy Paddlesports.. “We feel there will be continued growth through the summer in our Native brand, primarily in the kayak fishing market. Increased gas prices are causing people to recreate closer to home.” Callaway notes that the spike in gas prices two summers ago led to increased sales in the category, and he expects the same this year.
The company also is employing a new approach to new product. Instead of waiting until the August Outdoor Retailer tradeshow to unveil new offerings, this year it’s introducing them earlier in the sales cycles. “We’re not waiting this year,” he says. “It’s not necessary with today’s communication channels.”
Others are hesitant to place too much faith in early season numbers. “Early boat sales are misleading because we’re working with such small base numbers,” says Scott Forristall, business director for Johnson Watercraft. “Anything that happens at this time of year rarely influences the year’s overall result.” Still he admits that early data shows the company is ahead of prior year sales, and it is already seeing reorders.
“The real driver will be an early spring with lots of sunshine,” he adds. “Our customers have the desire and discretionary dollars to buy; they just need the reason to do so.” He adds that the economy and global conditions are likely to keep consumers cautious, but that this might also lead to higher-end buys throughout the season.
That’s certainly what Confluence, whose brands include Perception, Dagger, Wave Sport, Mad River and Wilderness Systems, has encountered.
“I don’t think we’re going to light the world on fire this year, but I do think we’ll see solid season growth,” says Confluence CEO Sue Rechner.“And we’re already seeing success in the high-end category, especially in longer touring boats. Consumers seem to be upgrading.”
For many, the converse is also true. Emotion Kayaks, a builder of rec boats, is coming off its best year ever and predicting similar sales for 2011.
“Many retailers are noting sales of high-end boats increasing, but those on the rec side are also growing,” says Emotion company President Tom Strauss. “We had a super strong pre-season and expect a fantastic summer as well. Things seem to be coming back in the right direction.”
As for influences that might affect this year’s buy, Confluence’s Rechner says it’s the usual suspects, from Mother Nature to the economy. “Weather-related and economic issues always play a role,” she says, adding that this year’s storm patterns haven’t been overly favorable. “But we never really saw a huge decline last year, job erosion has stabilized, and we’ve already seen an up-tick in pre-seasons for 2011. So we’re feeling some strength and stability in the marketplace.”
Rechner also feels that most buyers will look past curve-balls like gas prices. Others agree, unless it gets too bad.
“Usually, fuel costs work in favor of kayaks as a low-cost alternative to fuel-powered water toys,” says Hobie VP of Sales Ruth Triglia. “But it will be interesting to see if that holds true if they reach the $5 per gallon range. That could stop people in their tracks.”
Still, Triglia adds that Hobie is optimistic about another year of growth, and it’s been ramping up its production capabilities accordingly. She adds that it could also give its electric-powered product a boost.
While the impact of the Japanese disaster on the stock market could be yet another factor affecting sales, for now most manufacturers are happy to ride a wave of relative stability. “No matter what happens, people still want to get out and enjoy their time on the water and treat themselves to something special like a new boat, PFD or paddle,” says Werner marketing director Jim Miller.
