The End Of The Surf Industry?
Ok, that headline is sensationalist crap and those responsible have been sacked. The fact is though, PacSun is closing 154 stores, Hansons surf shop is rumored to be 40% down from sales figures last year and Surfride fired all it’s employees to cut costs in December.
Is all this indicative of a crap economy, or is Nick Carroll’s prophecy that surfing would cease to appeal to the masses coming true mere months after he called it? My call is that the masses (surfers included) are over surf clothing, but aren’t over surfing. How do I figure that? I haven’t seen a 40% decrease in the size of North County lineups. I think surfboard sales figures could back this claim up, but I don’t have any. Another source could be numbers from more ‘core’ surfshops, by which I mean shops who cater to actual surfers, vs. wannabes.
Are any of you ladies and gentlemen industry insiders who could shed some light on this for us?
Update: Adam points out Pac Sun is closing some Hip Hop stores, not ‘surf’ stores. Thanks bro.
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January 5th, 2008 at 8:15 pm
What is it they say, 10 year cycles for the surf industry. Falls about right in the timeline for the next few years for a bust cycle.
“In surfing ……
1958 surfing booms
1968 surfing busts
1978 surfing booms
1988 surfing busts
1998 surfing booms
2008 ????????
Yes, a ten year cycle is upon us. A couple bad years are ahead but after that it should level out.”
Quote above by GregLoehr – http://www.swaylocks.com/forum/gforum.cgi?post=341266
January 5th, 2008 at 10:38 pm
My take,
A. Pac Sun sucks.
B. Tilly’s destroys Pac Sun on price for the same lame ass stuff.
C. The surfy-ish Mossimo brand at Target is as good if not better than what the major surf brands are producing these days.
D. People are finally embracing public nudity and don’t need as many clothes.
January 5th, 2008 at 11:15 pm
Yes, 2008 is going to be a slowdown in alot of industries. Maybe the economy will slow enough that those that think that surfing is cool, and pick it up as a new hobby will go back to whatever they were doing before. But, will there then be more ‘surf bums’? Maybe there’s going to be record unemployment in 2008 and these bums will be surfing more? Aaaargh, the humanity!
Calgon, take me awaaaaayyyy!!!!
January 6th, 2008 at 1:41 pm
Lucky for us at Moonlight we are not part of the”Surf Industry” we just build surfboards.
January 6th, 2008 at 5:00 pm
That is so true it’s funny
January 6th, 2008 at 7:43 pm
Looking at the list Lawless has I have to disagree with “1968 surfing busts”. 68 was a frickin great year to be building surfboards the rules were tossed out the window. Couldn’t wait to try something new on a daily basis Surfers minds are only now getting back to the mindset of 68. zero zero eight is shapeing up to be a benchmark year for the surfboard craftsman. For the carpetbaggers and rag salesmen well it may be a different story. Maybe they will be so broke they will have to make a board themselves and have a little fun.
January 6th, 2008 at 8:58 pm
I think it’s kinda like what happened to the music business. The core surfers are supporting the core business and the corporate crap peddlers are living in the past.
January 6th, 2008 at 10:14 pm
Pac Sun does suck, but they are not closing any Pac Sun stores. PacSun stores sales are up despite a poor retail atmosphere, they are only closing their Demo stores and Steps stores which are their urban/hip hop and shoe stores respectively. They have been trying to sell the Demo chain since October but it looks like they couldn’t find a buyer. Who would want to buy a 130 store chain that is down 30%?
It also looks like some PacSun higher up took JP’s Surfing Mag Blog post advice and are relocating the distribution center to Kansas to get a jump on turning it into the next surf industry hub (you should send them a bill for a consulting fee!).
On a side note there are at least a couple surf/skate brands that owe a significant amount of their sales numbers to PacSun. I have heard as much as 40% in one case. For an interesting experiment look at PacSun stock over the last year compared with the various public surf/skate companies and you can probably see quite clearly who depends most heavily on them.
January 7th, 2008 at 3:15 pm
Hey yeah, Pac Sun did take my advice and move their distribution center to Kansas. That is cool and confirms my theory that shipping from Kansas is not too expensive like some people told me.
If a tornado wipes them out I hope they don’t blame me:)
January 7th, 2008 at 3:25 pm
I don’t get it… I thought that post was F’ing crazy… but they actually freaking did it?
unfuckingbelievable.
http://actionsportsgroup.net/blog/ing/?p=87
January 7th, 2008 at 4:22 pm
Its rad that they moved there. I’ve been preaching that post to people every time I get in a conversation about either the mid-west economy or chinese manufacturing!
January 7th, 2008 at 4:39 pm
[...] via 70percent By Rocky Thompson [...]
January 7th, 2008 at 9:46 pm
All consumer product based businesses are susceptible to the ebb and flow of the economy.. I see the same thing going on in the music biz that is going on with the main stream surf industry but regardless of what business you are in, you must adhere to core values, offer something unique, and be able to adapt to changing times..
I agree with the Moon Crew… Keep your chin up, your mind open, do good honest business and focus on doing the best you can instead of focusing on mess of the mass.
I also think its all about scalability
January 9th, 2008 at 10:59 am
We are getting down to the core. I’m stoked. Who wants to see surfing go huge? LIMITED RESOURCES. The business of surf has been overplayed for years. You can thank all of the top manufacturers for jetting to China, Thailand, South America, and anywhere labor is cheap. These are the scum who taught those people all of the precious secrets of surfboard building. They left their boys here hangin’, and taught non surfers how to do their job just as good. You think Chinese factories got this good at production in 5 years on their own? As for apparel, you don’t think that stuff is made by the company whose label is on it do you?
Same story. No surf apparel company has a factory where production of it’s line takes place. They only have warehouses where they accept and deliver merchandise. Surf brands bid their production globally to the lowest bidding manufacturer. What ever happened to getting wifey to sew boardies, and selling them in the lot on the weekend? That was nice. The big dogs have found a way to do everything cheaper for their own gain. If you knew what their profit margin is, you would think twice before making purchases.
January 11th, 2008 at 12:39 am
As much as I want to agree with you surfartbubbles, I don’t think we can say that until we see the lineups lighten. I think the only thing that can make that happen is not for surf to become less cool, it has to become UNCOOL.
The only thing we could do is bring back the day glo fashions of the 80s. That’s the only thing I can think of that will make people hate us enough.
January 11th, 2008 at 7:32 pm
It’s like anything. Anytime dough gets tight. You buy what you need. A new board or some fancy clothes?
January 11th, 2008 at 7:44 pm
Uh, the fancy new board for 1000 Alex. That’s why pinliner will stay in business long after the clothing brands bite the dust.
January 18th, 2008 at 12:17 am
I intentionaly buy cheap non-name brand boards shorts, leashes, etc so I can undercut the Billabongs, Quicksilvers, etc in hopes they will go out of business.
I stop short at surfboards though. I ride only local shapes. The sooner the O.C. Billion dollar surf industry dies the better.
January 20th, 2008 at 10:05 am
The sooner the Industry dies the better. Pro surfers and hangers on need to find a new scam! Leave now!!