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Surf industry treads water in economic downturn
Sector's retail sales came in at $7.2 billion in '08, down slightly from '06.
By Kristen Schott

Orange County is home to a number of surf and skate lifestyle brands, and it seems that despite suffering losses due to the economic decline, the industry is holding its own, according to Aliso Viejo-based Surf Industry Manufacturers Association's Retail Distribution Study.

The third-party biannual report – conducted by the Leisure Trends Group and commissioned by SIMA, which represents 74 O.C. companies, as well as brands nationwide – found that retail sales came in at $7.2 billion in 2008. Though the number is down 3.5 percent compared to 2006 (sales were $7.48 billion), the sector has seen "substantial growth of 10 percent" over the last five years. SIMA also reports that softness was most noticeable in the fourth quarter of last year.

“While the surf-skate retail industry is not immune to the downward pressure on retail sales nationwide caused by the global recession, the resiliency of the surf-skate industry is very positive and promising,” says Doug Palladini, SIMA president and vice president of marketing for Vans.

He says what's key for growth as the economy rebounds is for the brands to maintain a close relationship with consumers.

Among the factors that support the industry: loyalty from surfers and skaters to the lifestyle and sport. The industry maintains a youthful demographic of surfers and skaters who "view the industry as a lifestyle, not a passing trend," SIMA says in a statement.

What's more, sports industries are some of the first to recover from negative global events and previous recessions, according to Leisure Trends Group. 
Surf industry holds strong, continued ...

"There is evidence that the industry has underlying support from core surfers and skaters,” says Sean Smith, executive director of SIMA. "Even when times are tough we’re still going to surf, and we’re likely to purchase the attire and equipment needed for us or our kids to pursue this passion."

Another driving force behind the industry recently is footwear, which holds the largest double-digit growth in the study. Total footwear increased 15.6 percent from 2006, hitting $1.5 billion. Men's footwear and sandals led, followed by women's sandals.

Accessory sales grew 13.1 percent from 2006, followed by apparel, wetsuits and hard goods.

Smith finishes, saying, "This data shows we can be confident the future looks bright."

The SIMA Retail Distribution Study was launched in 2004, showing U.S. surf-skate retail sales at about $6.5 billion. SIMA is the official working trade association of more than 300 surf industry suppliers. The nonprofit organization promotes awareness of the industry.

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