Maturing outdoor industry poised for global growth
10/07/2014
The overall market volume grew 2.8% in 2013, while value rose by 3.1%. The total market value at sell-in was EUR 4.8 billion, with an estimated sell-out value of over EUR 10 billion at retail.
The largest increases were seen in footwear, the value of the sector increased 5.2%. There was also healthy growth in packs (2.7%), apparel (2.5%) and accessories (2.3%).
“You have to look at the outdoor market today from a different angle,” said Michael Rupp, CEO of Jack Wolfskin. “It has become an established market; we are seeing normal category growth. The market is starting to mature; perhaps the hopes and expectations of brands are a bit higher than the market growth, so it’s going to be more competitive.” He stressed that the growth levels only reflect Europe, and that strong momentum is being seen in Russia, and the industry is in its infancy in China, where there are “abundant opportunities” for brands.
Richard Cotter, CEO of UK-based retailer Snow + Rock, said it is important to understand that the way the consumer buys has shifted, and that brands and retailers must work together to offer what they expect in terms of multichannel buying. “We need to shape our businesses to recognise that,” he said.
The panel also included Rolf Schmid, president of the European Outdoor Group, the association that compiled the statistics from its market research. “The overall growth figures are encouraging,” he said. “They demonstrate outdoor is not just a trend. It is a mega-trend based on growing interest in more active and healthy lifestyles.”
The panel discussed the idea that, as the industry matures, there could be more consolidation of brands, leading to a few big players while some smaller businesses fail. While this sound negative, Mr Rupp insists it is not: “Consolidation doesn’t mean something negative, it’s just a step in a maturing market – and for the end consumer it can be a very positive sign. Strong brands will have more power to promote the industry on a global scale. We will employ more people, not less.”
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