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| skategeezer |
 Posted: Tue Nov 01, 2005 8:56 pm |
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Joined: 03 Jul 2003
Posts: 1227
Location: Toronto
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2006 is going to be a HUGE year for skateboarding...not all of skateboarding, mind you, only select parts. That's a shame, because EVERYONE who is at this forum has known this for quite sometime...
As you can imagine, working with over 100 skate companies, I get an opportunity to see a wide range of things. The good, the bad and the ugly.
It is my contention that those who inhabit parts of the street skate industry are now emerging from their stupor...In essence, they are starting to realize the situation they have created is very serious and quite troubling.
In short, the short board world has put ALL their eggs in one basket - namely male streetskaters UNDER the age of 18. Again, let me go on record and state that street skating is terrific and the progression of skateboarding these past 15 years has been incredible.
But if you're in the BUSINESS of selling brand name skateboards....you have a big problem. Blank boards are covering the market and customers are voting with their wallets. This despite teams, promotions, ads in the mags etc. etc.
Everything that was once remarkable about skateboarding has become commodified...or is in the process of becoming commodified. The ONLY parts of skateboarding that aren't yet commodified are the niche skateboard markets - and my sense is that companies who continue to create remarkable, breakthru products will survive...they may not get corporate jets, but they will thrive.
Once things become a commodity, it's very difficult to compete.
I know that most of you reading this will say, "hey, I've heard this all before." And you know what? You're right. The issue is now that the ramfications are now creeping up to the highest levels and people who work in skateboarding are starting to become VERY concerned.
Those folks in shoes and clothing aren't worried...they're in the FASHION of skateboarding and that's an entirely different world. There's nothing wrong with fashion, but if you market skateboard hardgoods for a living, the next few years are going to be extremely difficult. In fact, I would venture a guess that 2006 will be a pivotal year.
Let the fun begin! |
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| thugfrm87 |
| Posted: Wed Nov 02, 2005 1:25 am |
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ORDER OF THE SKULL
Joined: 22 Apr 2005
Posts: 2669
Location: Canada
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Keep inticing us with these "supposed secret happenings" and i'm going to lose it!  Tell us already! The suspense is killing me! |
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| skategeezer |
| Posted: Wed Nov 02, 2005 7:14 am |
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Joined: 03 Jul 2003
Posts: 1227
Location: Toronto
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there's not really much to spill here...but the key thing is to note that if you are in the business of selling skateboard decks (street), the reality is that it's become almost impossible to compete with blank/shop boards.
They started out at 20% of the market...then quickly moved to 50% and now they seem, in some parts to be approaching 70 to 80% of the market.
That is very difficult to compete with. Consumers see virtually no difference in "brand name" vs "generic".....and it has huge implications. |
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| DomitianX |
| Posted: Wed Nov 02, 2005 9:40 am |
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ORDER OF THE SKULL
Joined: 28 Sep 2003
Posts: 2473
Location: Faribault, MN
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Quote: Consumers see virtually no difference in "brand name" vs "generic".....and it has huge implications.
Yeah they said the same thing about beer back in the 80s too, but I dont see too many white label "BEER"'s anymore.
I competely agree with your statement though. Add to that the 1% markup guys on eBay and shops that revolve around name brand street decks are feeling the pinch. |
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| skategeezer |
| Posted: Wed Nov 02, 2005 10:01 am |
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Joined: 03 Jul 2003
Posts: 1227
Location: Toronto
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funny you should mention beer...
beer in Ontario, like all alcoholic products is heavily taxed.
a case of 24 beers of corona is $40+ (canadian $$ = $34 US)
but you can now get a a case of generic beer for about $24 Canadian ($20 US)
this has led to some incredible price cutting from the majors
what is interesting however, is that premium (or niche beer) is growing....
which is my point exactly...the majors cannot compete on price alone...they have to add value...otherwise, it's a commodity with little to no margin |
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| slob-air |
| Posted: Wed Nov 02, 2005 10:30 am |
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Site Admin
Joined: 27 Oct 2001
Posts: 63528
Location: S&B HQ
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| The advent of blank boards and shop boards seemed to me to be a death knell for that part of the industry. The most amazing thing is that they're doing it to themselves. |
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>>>>>Get your S&B Stickers here<<<<< |
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| DomitianX |
| Posted: Wed Nov 02, 2005 10:38 am |
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ORDER OF THE SKULL
Joined: 28 Sep 2003
Posts: 2473
Location: Faribault, MN
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slob-air wrote: The most amazing thing is that they're doing it to themselves.
Indeed. |
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| vilms |
| Posted: Wed Nov 02, 2005 10:41 am |
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Joined: 18 Apr 2003
Posts: 1070
Location: London
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| Hmm, I'm going skateboarding later today. Should I be worried? |
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| skategeezer |
| Posted: Wed Nov 02, 2005 10:45 am |
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Joined: 03 Jul 2003
Posts: 1227
Location: Toronto
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this is something I figured we'd finally get into...the entire thing could have been prevented...in essence, skateboarding became a victim of its own success....if 50% of the market is under 11, then most kids who skate have never really known a time when it wasn't popular...they were born in 94 and later. This generation of skaters are riding in skateparks that we could only dream about and they have access to skateboarding products (both soft and hard goods) that we could never have imagined ("you found that at the mall? you're kidding!")
In 1995, we had the xgames blow things up....the last decade has been a great ride, but it would appear very few street companies planned for the future. They have bet everything on a uniform product, easily manufactured/copied.....
They need to do something...now. |
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| skategeezer |
| Posted: Wed Nov 02, 2005 10:48 am |
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Joined: 03 Jul 2003
Posts: 1227
Location: Toronto
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should you be worried?
that's a good question.
well, I'd like folks in this industry to be successful...I'd like it to be a thriving business that contains a wide variety of small, medium and large companies....my gut tells me consolidation is on its way. |
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