Outdoor Retailer - Winter 2016 - 20

THE PULSE
GLOBAL PERSPECTIVE

Foreign Affairs
International markets are growing, but Internet
sales are causing disruptions for outdoor
retailers in both Europe and Asia.
by Geoff O'Keeffe and Michael Hodgson
The latest news for outdoor retailers across the globe sounds pretty
damn familiar: Sales are going up, but online retail is slowly siphoning
away the good times. There are some brights spots, however. And there's
certainly reason to pay attention to what's happening overseas as the
global community keeps becoming more tightly knit.

EUROPE
Last year looked decent across the pond. According to the European

Outdoor Group's (EOG) retail point- of- sale research, the European
market (estimated at roughly EUR 10.2 billion) grew at a modest 1.4
percent in 2014-but, when adjusted for the decline in the Russian
economy, outdoor business in Europe grew 2.3 percent.
This year started hot. The EOG reports that first quarter retail sales
in 2015 grew at a robust 5-10 percent, based on higher traffic, more
transactions, higher numbers of items per sale and improved conversion rates. Those numbers don't tell the whole story, however. There was
good snowfall in January and online sales have come on strong.
"Outdoor retail in Europe is changing at an alarming speed, mainly
as a result of Internet proliferation," said Gerard Ritter, Equip Outdoor
Technologies manager for Benelux and Eastern Europe. "Web stores offer a larger choice at lower prices. Brands offer complete ranges in brand
stores and web stores. Chains offer extended ranges of key brands, thus
nibbling even further at the raison d'être of the true specialist. Outdoor
stores have become softer in their product offerings, more inspirational
and more focused on customer seduction and impulse buying."
It's not all rosy for pure online business however, according to Mark

"OUTDOOR STORES HAVE BECOME
SOFTER IN THEIR PRODUCT OFFERINGS,
MORE INSPIRATIONAL AND MORE
FOCUSED ON CUSTOMER SEDUCTION
AND IMPULSE BUYING."
Held, EOG Secretary General. "Pure online is under increasing pressure. Omni channel and 'click and collect' are all attempts to bridge
this void," Held said. "What looks most likely is a synthesis of the best of
brick-and-mortar fused with the best of technology."

ASIA
In China, the estimated $10 billion (USD) outdoor market is growing by
double-digits year-after-year, according to data from the APAX Group.
"Outdoor activities are now a part of mass entertainment and the lifestyle industry," said Terence Chu, APAX Managing Director. "Television
programs such as those on Discovery Channel have been integral in creating an awareness and curiosity about the great outdoors-while social
media applications like WeChat and Weibo have been responsible for
spreading it among users."
Carl Tsai, Managing Director for Unicorn Recreation Products of
Tianjin, China, noted that, "Traditional outdoor stores keep losing share
to Internet dealers, preferred by young Chinese shoppers."
The takeaway? The Internet, vendors selling direct and shifts in how
consumers use technology are creating global distruption.
-Geoff O'Keeffe and Michael Hodgson, are principals at New Normal
Consulting (newnormalconsulting.com).

20 OUTDOOR RETAILER

/ Winter 2016

http://www.bernunlimited.com http://www.newnormalconsulting.com

Outdoor Retailer - Winter 2016

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