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just how big is big...

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skategeezer
Posted: Fri Jun 09, 2006 10:06 am Reply with quote
Joined: 03 Jul 2003 Posts: 1227 Location: Toronto
Sure, I ripped myself off today...but what the hell...


always believed that for the skateboarding industry to be truly healthy and vibrant, it needs small, medium and big companies (both from a manufacturing and shop perspective). By having many different types of companies, things are kept fresh. We don't wind up with a huge monolithic industry, controlled by a handful of people...wait a second, that sounds like deja vu all over again!

To be fair, when we had the Big 5 of the 80's, softgoods weren't really part of the scene. Sure, we had Airwalk and Vans, but the really focus was on skateboard hardgoods. Now the roles are reversed and it's the shoe and clothing companies who rule. My sense is that they will continue to get bigger and more powerful and they will dictate things on their terms.

That's their right, but it's also true that not EVERYONE wants skateboarding to be about the bottom line. When it's all about the dollars and when the beancounters rule the roost, I sense that the soul of skateboarding takes another hit.

Small and medium sized companies can afford to take chances...to come up with new innovations. They are often ignored by the very fact that they are competing with such enormous companies...but every now and then, the beancounters at huge corporations get surprised and an idea breaks thru the clutter. I'll leave it to your imagination what that last sentence means, but suffice to say, I sense things are changing.

Having worked for a big corporation, I can state that big companies don't really like to change that much. Change is risky. It's risky to showcase all types of skateboarding...but since my yearly revenues are probably equivalent to what some of these guys pay for a booth and hotel/food at the Action Sports Retailer show, well, I guess what I am trying to say is that while the stakes are always high in any business, smaller companies can afford to be daring.

What I am hoping to illustrate here is that these corporations have ENORMOUS power and revenues. They have tremendous affects on all kinds of things in our world, including skateboarding.

All this information is taken from the company's websites. Do with it what you wish....

VF Corporation - owner VANS
2005 Revenues: $6.5 billion
Owner of Lee Jeans, Wrangler Jeans, The North Face and VANS
"The Vans� Classic line was a huge driver of revenues in 2005, and we expect it to continue to fuel growth this year as well. Momentum is also increasing in our core skate shoe business. To achieve another great year, we are focused on continuing the strong momentum in our brands� core businesses, executing our new growth initiatives and identifying and acquiring additional authentic outdoor brands to add to our portfolio."


Nike - owner Nike Skateboarding and Hurley International
2005 Revenues: $13.7 Billion

Phil Knight: "So what does Nike�s evolution look like at this moment? Profitable. Fiscal Year �05 is a record year for sales and profitability. Again. We closed the year with our seventh consecutive quarter of double-digit earnings per share growth. Footwear revenues are up 11% over last year. Apparel revenues are up 10%. Equipment revenues are up 15%. A dollar invested in Nike stock one year ago was worth $1.17 at year-end. Like soccer, I think we get it now. Converse and the inimitable Chuck Taylors are
flourishing. Hurley continues to gain traction in the fast growing surf-culture market."

Quiksilver - also owner of DC, Hawk Clothing, Roxy
2005 Revenues: $1.8 Billion


Billabong - owner of Element and Von Zipper
2005 Revenues: $843 million

"The Company continues to achieve outstanding results that demonstrate the importance of adherence to its core values.�

TIME WARNER-owner Transworld Skateboarding
2005 revenues: $43.6 billion

"Every day, in every one of our operations around the world, we strive to do our part to make the world a better place. We seek to deliver information, entertainment and communications of the highest quality to hundreds of millions of people.I am proud of all we are doing to be a good company and a good citizen; we have had great success. But, we know there is always more to be done."
- Richard D. Parsons CEO Time Warner

PRIMEDIA - Owner SkateBoarder Magazine
2005 Revenue: $990 million

"Each of our media properties reaches a targeted audience with content of the highest relevance for that special interest. This relationship�an audience engaged with a trusted authority in print, online, television and events�creates an exceptionally efficient marketing channel for consumers ready to buy."
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skinny
Posted: Fri Jun 09, 2006 2:02 pm Reply with quote
Joined: 12 Sep 2004 Posts: 2706
Big is buying and selling people.
Big is printing your own money.
Big is signing checks with a stamp.
Big is an idea that makes every person who hears it, say "Damn, I have never even thought of that."
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Adrian
Posted: Fri Jun 09, 2006 3:19 pm Reply with quote
Joined: 06 May 2004 Posts: 907 Location: Alberta Canada
good thing I dropped quiksilver and bought more vans this season. I'm not sure dc is gonna help them, they're next on my tiny little chopping block. I'm sure danny way will have his own line of shoes out soon enough. I guess it's easier when your big enough to con all the shops into commiting their cash to you 6 months ahead of every season. I wage war on all prebooking! if it kills me then at least I won't be paying cancelation fees 6 months after I go under.
maybe I shoud've written this post 6 months ago and secured readers to guarantee my time is not wasted. then you would be required to read it and I would only let those who booked it read it. of course you would have to fill a readership application form and I would reject any small time readers who haven't read major posts yet.
but you would be confident that there will be a post here for you to read as scheduled.
No reading what you want when you want
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Cappy
Posted: Fri Jun 09, 2006 3:24 pm Reply with quote
Joined: 13 Sep 2005 Posts: 11580 Location: Cloud cuckoo land
The other level of skateboarding..

As i like CW and all the new "old" generation, i dont understand why look again and again
at the only streetskatemarket and who buys who, sells and what money is flowing (to the shareholders).

As Example, if you want a real sportscar - do you go for porsche or ferrari? No you would look
for a manufacturer that can make the unique sportscar for you.

As i was in some kind of car racing and tuning, i found this italian guy while looking for carburetors
between cows and pigs on a farm.
Nothing looked like big money making or a glass center, that you see on other big sportcar manufacturers.
This guy had no electronics for the engine, he pluged his screwdriver on it, hear it, turned a screw,
put his hand down, again turned a screw - well after he was finished, it was the craziest engine i have ever seen.
As we talked, he shared his love and i learned a lot in the time we meet. He was also down for "simple" cars,
but as i had some close look, he had a lot of old lamborghini, ferraris etc from the 60, 70s.

I think he had some good money paying customers, but he take the time for this young poor guy
that wanted something to built. As i write down this, i remember every second i was with him.
This experience was not about the cash, it was for the love and knowledge.

Ok, boring, lets get back to skateboarding. You dont need no cash as for a sportscar for a real good skateboard,
but you dont find it in the normal skateshop or mall.
But, there is a lot of manufacturers for "other" style of skateboarding now, the people who "will" spend
cash for it and even some onlineshops have local services.

So why not leave the streetskateboardingmarket with clothing let do their own thing and take all
the other styles to the "unique sportcar level"!
Maybe it could turn some new energy on it, without the pressure looking how many the others sell/or will do.

Today everybody runs a car, some even go to racingsshows and a few have a real passion for it.
Could it not be, everybody can ride a skateboard, go to contests and some have a real passion about it?

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...O...................O.....
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skategeezer
Posted: Fri Jun 09, 2006 4:11 pm Reply with quote
Joined: 03 Jul 2003 Posts: 1227 Location: Toronto
small is the new big...

this is not my idea...but it fits my sentiments 100%

I love the fact that so much is happening below the radar.
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Adrian
Posted: Fri Jun 09, 2006 4:53 pm Reply with quote
Joined: 06 May 2004 Posts: 907 Location: Alberta Canada
shh , they may be reading these posts. all communication in code from here on in.
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skategeezer
Posted: Fri Jun 09, 2006 7:58 pm Reply with quote
Joined: 03 Jul 2003 Posts: 1227 Location: Toronto
ok,

carrots can make you see better in the dark
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Five Points Skateboards
Posted: Fri Jun 30, 2006 10:47 am Reply with quote
ORDER OF THE SKULL ORDER OF THE SKULL
Joined: 12 Mar 2003 Posts: 4167 Location: Columbus, OH
I agree with you, Geezer, that "small is the new big". The big guys trying to appeal to the masses with the "Underground attitude" kinda thing, etc.

BUT, they know what is going on in the underground. they have their eyes out and watching everything that is going on from their peers in the big industry all the way down to small nobodies like myself, and taking notes. It's a lot easier for some small company to do something new than it is for the big dogs. They let the small guys try it out and see how it works, then jump on it like a pack of wolves when they're sure it won't loose them any profits.

Some of those numbers are just mind boggling! Holy crap! That's a lot of money!

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Tim
Five Points Skateboards
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skinny
Posted: Fri Jun 30, 2006 11:45 am Reply with quote
Joined: 12 Sep 2004 Posts: 2706
Yeah,
I couldn't belive it when I heard who was talking about my stuff....
I was flattered, then pissed. Because I don't do enough business to make a dent in ANYTHING!
When you make something different, and people want it, the money hungry corporations are always going to know about it.

The funny part is, instead of asking for my help, or even a position working with them. They try to steal the idea. Eventually the stuff makes its way to a zumies near you.

I know that someday, all of the work they have been doing, making kids skate popcicles WILL pay off and EVERY skateboard will be sold in large chain stores to eager kids. The decks will all be the same size and shape, and pros will be unwanted......shop decks, and pricepoint decks will fill the shelves. Of course there will always be a Thrasher in there somewhere, running Right Guard ads, and cell phones will pay for it all to happen.

Hopefully I will be too old to give a shit anymore.
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Five Points Skateboards
Posted: Fri Jun 30, 2006 12:29 pm Reply with quote
ORDER OF THE SKULL ORDER OF THE SKULL
Joined: 12 Mar 2003 Posts: 4167 Location: Columbus, OH
That day is already here. As many decks that are available with an "original" shape, it's still only a tiny little niche. 99% of skaters skate popsickles, and I'm not saying that in a bad way, just saying it's a fact. They are quite functional, and that's what is forcefed down the kids' throats so that's what they buy. Just not really for me, and I could care less. I just do my little thing and have fun with it. I don't pay too much attention to the whole industry BS.

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Tim
Five Points Skateboards
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