A (an outdoor) tour of Europe

Transcription

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2 A (an outdoor) tour of Europe Objectives A whirlwind tour of a complex sector History Size and shape Influencing trends Product Development / Innovation / Marketing Trends Consumer & Industry

3 The EOG 85 International members Community Events Responsibility Research

4 A (outdoor) tour of Europe Objectives A whirlwind tour of a complex sector History Size and shape Influencing trends

5 History & Development First a few picture to illustrate the journey from the early years to current times Set the scene and show how far we have come Then a look at milestones

6 Image courtesy of Berghaus Ltd

7 Image courtesy of Berghaus Ltd

8 Image courtesy of Berghaus Ltd

9 Image courtesy of Lowe Alpine Ltd 21

10 Image courtesy of Mammut Sports Group

11 Image courtesy of Lowe Alpine Ltd

12 Photo: Ulla Vanges

13 History & Development 1786 Mont Blanc Summited (4,807m) 1855 Charles Macintosh Waterproof 1877 Helly Hansen s first products 1908 First Crampons and first Frame Pack 1923 Grenfell Waterproof Cotton 1924 Norton reached 8,570M on Everest 1930 Neoprene Invented 1938 Nylon 6 & 6.6 invented by IB Farben 1940 DuPont begin nylon manufacture

14 History & Development 1958 W.L. Gore Founded 1960 s The North Face / Berghaus / Chouinard / Black Diamond / Patagonia / Lowe Alpine 1970 s Gregory / Dana Designs / Marmot Nylon 6.6 the norm for technical products 1977 Gore-Tex Commercially launched Cordura becomes available for packs 1978 Messner Climbs Everest (8,848m) 1979 Gore-Tex seam tape

15 History & Development 1786 Mont Blanc Summited (4,807m) 1855 Charles Macintosh Waterproof 1877 Helly Hansen s first products 1908 First Crampons and first Frame Pack 1923 Grenfell Waterproof Cotton 1924 Norton reached 8,570M on Everest 1930 Neoprene Invented 1938 Nylon 6 & 6.6 invented by IB Farben 1940 DuPont begin nylon manufacture

16 History & Development 1958 W.L. Gore Founded 1960 s The North Face / Berghaus / Chouinard / Black Diamond / Patagonia / Lowe Alpine 1970 s Gregory / Dana Designs / Marmot Nylon 6.6 the norm for technical products 1977 Gore-Tex Commercially launched Cordura becomes available for packs 1978 Messner Climbs Everest (8,848m) 1979 Gore-Tex seam tape

17 Definition of Outdoor Human motive powered activities that take place in the natural, or semi natural environment

18 Characteristics? Largely un-organised Difficult to define the start and stop Background of owner enthusiast driven brands Predominantly SME industry Short of main stream heroes Sometimes fragmented and disjointed

19 Europe Complexity hidden It is easy to think of Europe as one single area Reality is that this hides significant complexity Idea of brand signature Broad segmentation of regions A pan European brand?

20 Europe in Numbers Building outdoor industry 21co-operation throughout Europe

21 BRAND PARTICAPNTS 2014

22 OUTDOOR MARKET DEFINITION

23 15 NEW PARTICIPANTS BRANDS & RETAILERS - OWN LABEL Arva Montane (Chonos Ltd) Blue Ice Db Equipment Simex Singing Rock Engelhorn Sports Sport 2000 Evoc Sports Lundhags Maier Sports Swix Sport Thule TLS Outdoor Transa 24

24 Markets Measured SLEEPING BAGS & MATTRESES Sleeping Bags Down Sleeping Bags Synthetic Sleeping Accessories Mattresses TENTS Portable Tents Non-Portable Tents Tarps & Sun Protection Tent Accessories APPAREL Outerwear Top Outerwear Bottom Midlayer Top Midlayer Bottom Primary Layer Top Primary Layer Bottom Apparel Accessories Helmets Harnesses Ropes Slings Climbing Devices Carabiners CLIMBING EQUIPMENT Quickdraws Rock Protection Via Ferrata Equipment Ice Axes Crampons Snow & Ice Protection FOOTWEAR Boots Midcut Boots & Shoes Shoes Sandals Shoe Accessories Crash Pads Climbing Shoes Chalk bags & Chalk Slackline Kits Climbing Other OUTDOOR ACCESSORIES Cooking, Eating & Hydration Lighting Poles Navigation equipment Snow Safety & Equipment Camping Furniture Accessories BACKPACKS & LUGGAGE Backpacks Luggage Pack & Luggage Accessories

25 COUNTRIES & REGIONS COVERED GAS UK & BENELUX SCANDINAVIA SOUTHERN EASTERN & RUSSIA AUSTRIA BELGIUM/LUXEMB DENMARK FRANCE CZECH GERMANY OURG FINLAND ITALY REPUBLIC SWITZERLAND NETHERLANDS NORWAY PORTUGAL HUNGARY UNITED KINGDOM/IRELAN D SWEDEN SPAIN POLAND RUSSIA SLOVAKIA SLOVENIA

26 EUROPE SUMMARY Building outdoor industry 27co-operation throughout Europe

27 EUROPE SUMMARY 2014 Wholesale Value 4.83 bn +1.2% (2.7%) Estimated Retail Value 10.2bn Units 177 m + 1.4% (2.3%) YOY Growth Across All Countries excluding Russia Footwear & Backpacks continue to develop as a category Building outdoor industry co-operation throughout Europe

28 EUROPE TOP 10 COUNTRIES 2014 SHARE OF OUTDOOR MARKET (85%) 26.2% 13.5% 12.4% 5.8% 5.6% 5.0% 4.9% 4.6% 4.2% 3.3% COUNTRY VALUE SHARE %

29 2.0% 1.9% 1.5% ALL OTHER COUNTRIES SHARE OF OUTDOOR MARKET (15%) 2.6% 2.5% 2.3% 0.7% 0.4% 0.4% 0.3% COUNTRY VALUE SHARE %

30 REGIONAL DEVELOMENT Building outdoor industry 31co-operation throughout Europe

31 SCANDINAVIA m / 1.4bn NO 224m 3.3% (3.3%) + 2.9% (2.7%) year on year growth FI 126 m 1.5% (0.5%) % - YEAR ON YEAR INCREASE IN VALUE (VOLUME) DK 111m 2.9% (3.1%) SE 201m 3.4% (3.2%)

32 BENELUX & UK 84m / 1.69bn + 2.3% (2.7%) year on year % - YEAR ON YEAR INCREASE IN VALUE (VOLUME) 2 nd BEST PERFORMING REGION NL 123m 2.6% (1.9%) GB/IE 652 m 2.2% (2.9%) BE/LU 71m 2.6% (2.1%)

33 DACH 1.78bn / 3.9bn 2 nd BEST PERFORMING REGION DE 1265m 2.9% ( 2.1%) + 2.6% (1.9%) year on year growth % - YEAR ON YEAR INCREASE IN VALUE (VOLUME) CH 273m 1.6% (0.9%) Text here FOOTWEAR +3.5% GROWTH AT 244m 2% (1.9%) Mid cut Austria DD Sandals All GAS countries DD

34 SOUTHERN 1bn / 2.1bn + 2.7% (2.5%) year on year growth 2 nd BEST for FOOTWEAR FR 599m 3% (2.5%) +3.8% GROWTH Italy +1% Portugal + 9% Spain DD Mid cut & Boots IT 278m 2.8% (2.3%) % - YEAR ON YEAR INCREASE IN VALUE (VOLUME) PT 17m 6.2% (2.7%) 2 nd BEST for APPAREL +2.9% ES 160m GROWTH 2.6% (2.4%)% Outer wear top DD Spain France +6.6%

35 EASTERN 252m / 503m + 2.9% (2.6%) year on year growth TITLE CATEGO91RY PL 91m 2.6% (2.4%) +X.X% XXXXX Text here % - YEAR ON YEAR INCREASE IN VALUE (VOLUME) XXXX X% CZ 94m 3.1% (2.6%) 2 nd BEST PERFORMING REGION CATEGORY SK 17m 2% (2.2%) X.X% SL 36m 3.4% (3.1%) HU 13m XXXXXX 2.6% (2.5%) Text here

36 INDUSTRY EXPERT COMMENTS MARKET ENVIRONMENT The outdoor market has over the past years been quite turbulent, with lagging growth rates, a number of new on-line players that come and go, and many price-driven campaigns, on-line as well as off-line! An interesting general market-trend is that lifestyle is playing a bigger role in the outdoor market, thus increasing demand for nice designs, colours and comfort, and less towards hard-core function. 37

37 INDUSTRY EXPERT COMMENTS MARKET ENVIRONMENT On the product side there is a clear trend that technical and innovative products are maintaining high prices and high desirability, whereas medium- and lower level products are under a very strong downward price pressure in the market. 38

38 CATEGORY DEVELOPMENT Building outdoor industry 39co-operation throughout Europe

39 APPAREL PRODUCT MIX 2.5 bn OUTERWEAR MID LAYER PRIMAL LAYER OUTERWEAR PRIMAL LAYER A 43% 21% 10% 14% 5% 1.1bn 544m 255m 352m 130m Acc s 7%

40 APPAREL PRODUCT MIX SHARE BY SEASON IN VOLUME % Acc's P Bottom O Bottom P Top M Top O Top 18% 29% 10% 4% 12% 11% 24% 12% 21% 18% 18% 23% S/S 2014 A/W

41 FOOTWEAR PRODUCT MIX 1.3bn BOOTS MID CUT SHOE SANDALS 19% 29% 47% * 4% 254m 389m 617m 57m

42 FOOTWEAR PRODUCT MIX SHARE BY SEASON IN VOLUME % SANDALS SHOES 13% 53% 4% 50% MID CUT BOOTS 24% 9% 30% 16% S/S 2014 A/W

43 FOOTWEAR REGIONAL DEVELOPMENT Y OY % CHANGE 4.3% 4.1% 4.1% 4.1% 4.20% 4.3% 3.3% 3.6% 3.5% 3.2% SCANDINAVIA SOUTHERN EASTERN BENELUX & UK GAS VALUE % CHANGE VOLUME % CHANGE 44

44 FOOTWEAR PRODUCT MIX Y ON Y % CHANGE VAL % CHANGE VOL % CHANGE FW 3% 4% SHOES 8% 10% MID CUT 7% 11% SANDALS 0.0% 7% BOOTS -24% -11% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 45

45 INDUSTRY EXPERT COMMENTS FOOTWEAR Overall, we see shoes and mid-cut are growing at the expense of technical boots like mountaineering ones The market is looking for more lightweight boots or shoes in each category, with the evolution of new technology and materials Lite and Fast Hiking, Approach and Trail Running all benefiting and we see more young generation in these segment of the outdoor market. 46

46 BACKPACKS & LUGGAGE PRODUCT MIX 300m BACKPACKS 75% & 231m LUGGAGE 17% & 52m ACCESSORIES 7% & 23m

47 BACKPACKS PRODUCT DEVELOPMENT 2012 to 2014 VALUE % CHANGE VOLUME % CHANGE 2014/ % 14% 2013/2012 7% 8% 48

48 BACKPACKS VALUE SHARE TOP 10 COUNTRIES (86%) GERMANY 34% FRANCE 13% UK/IRELAND 11% SWITZERLAND AUSTRIA ITALY SWEDEN NORWAY DENMARK NETHERLANDS 5% 5% 5% 4% 4% 3% 3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 49

49 INDUSTRY EXPERT COMMENTS BACKPACKS Urban commuter packs were strong where traditional paper files and modern electronics could be accommodated. On the technical side, we saw a continued uplift in AirBack day hiking packs rather than full contact back systems. We are seeing strong growth YOY predominantly in the smaller pack market. Larger multi-day packs for heavier load carrying are growing only slightly compared to previous years. 50

50 TENTS PRODUCT MIX 147m TENTS PORTABE TENTS 59% & 87m NON PORTABLE 34% & 50m TARPS & SUN PROTECTION 2% & 2m ACCESSORIES 5% & 8m

51 INDUSTRY EXPERT COMMENTS TENTS The tent market is picking up again, this time fueled by an increasing demand for smaller tents, suitable for trekking or biking tours. Particularly in demand is lightweight, but also technical and functional solutions that make the tent perform well under different conditions. 52

52 SLEEPING BAGS & MATS PRODUCT MIX 93m SYNTHETIC 48% & 43m DOWN 22% & 18m MATRESSES 26% & 28m ACCESSORIES 4% & 3m

53 CLIMBING EQUIPMENT PRODUCT MIX 108m CLIMBING SHOES 20% & 21m HARNESSES 15% & 16m ROPES 11% & 12m DEVICES 9% & 10m HELMETS 8% & 9m ALL OTHER 37% & 40m

54 Summary The European market is still healthy in spite of economic factors But growth has slowed significantly Footwear (especially lifestyle) and backpacks have excellent growth Apparel is more of a problem

55 Influencing Trends Weather a crucial factor Economic trends Technology Consumer preference

56 Trends - Brand Fun Performance Nature Functionwear Outdoor l Outdoor brands expanding into sportswear C I T Y Leisure Work Sportswear Casualwear Active Sportswear l l Sportswear brands going into functional wear, e.g. Boss Sport doing Gore-Tex jackets Active sports brands doing casual, e.g. Puma, adidas retro Source: KSA Research

57 Trends - Channel Consolidation of channels just starting Small independent outdoor specialists required to innovate to survive Consolidation of outdoor specialty chains and buying groups Shift to casualwear / lifestyle / travel Online, click and collect Own label dominant in some areas (Quechua)

58 Trends - Consumer Multi activity Multi channel Multi aware Urban outdoor

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60 Challenges Legislation Sustainability Corporate social responsibility Pressure Groups Disruptive technology

61 Environment & Social No shortage of pressure groups ready to expose brands (whether correctly or not!)

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63 C H A N G E mark.held@europeanoutdoorgroup.com

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