California Apparel News

Attendees of Surf Summit 11, the annual four-day networking and education event hosted by the Surf Industry Manufacturers Association, sensed a change in the Baja California air. The earlymorning surfing sessions and late-night parties were the same, but the tone of this year’s Summit, held May 14–17 at the Sheraton Hacienda Del Mar Resort & Spa in Los Cabos, Mexico, was different.

Rather than focusing on business-related themes—such as how to reach youth on the Internet, how to design retail interiors to maximize sales or how to compete with newcomers—this year’s seminars focused on harnessing passion, reinforcing personal creativity and innovation, and embracing change. The shift, said Dick Baker, SIMA’s chairman emeritus, was by design.

“It was our goal to still be educational but to offer something different than what we’ve done in the last two or three years. In choosing our speakers, we looked for people that were creative, inspirational and motivational and could give [attendees] something they could each take away and apply to themselves as leaders or to their business,” Baker said.

The change and the Summit’s tagline, “Uniting the Tribe,” are in part a reaction to a weak U.S. economy and a general sense of trepidation in the apparel industry. The surf industry has seen its share of slowing sales and uncertainty. At January’s Action Sports Retailer Trade Expo and Surf Expo trade shows, talk on the show floors often turned to the sluggish economy, and retailers reported more-calculated buys if not tighter budgets. Earlier this month, some industry bigwigs, including Pacific Sunwear of California and Quiksilver, posted less-than-stellar financial results for the first quarter of 2008 and saw their stocks take a dip. Others—including retailer Zumiez, which posted better-than-expected April same-store sales—continued to plug along.

Still, Baker said, the sky isn’t falling on the surf market. To the naysayers, Baker points out that Quiksilver and its sister brand, Roxy, are actually performing well individually but were dragged down by the company’s underperforming snow brand, Rossignol. Volcom is another example of a strong surf brand, he argued, with its net sales of $9.3 million for the first quarter of 2008 and revenue spike of 59 percent for the quarter.

“The economic issue is one we all have to deal with, but I have to point out that the surf industry has prospered even during this difficult and challenging time,” he said. “We’re still doing better than the traditional retail sector. In times like these, it is important to remember that the surf industry and our lifestyle are extremely positive and extremely vibrant.”

Santiago Aguerre, founder of Reef, approved of the Summit’s positive tone, saying fixating on the negative can help perpetuate the problem. “I acknowledge that we’re in a slow period right now, but we’ve been riding high for a very long time. There are ups and downs,” he said. “Surf and skate isn’t bulletproof, but as an industry we are very good at rolling with the punches. For us to pull off a trick, it means we’ve fallen 15 or 20 times. We’re used to getting knocked down and getting back up.”

Vision, passion, piracy

Thinking outside the box to keep up with youth culture’s fast-paced changes was a big theme among the speakers, and their message resonated with many attendees.

The Summit’s speakers included a keynote address from Hurley founder Bob Hurley, tales of big waves by big-wave surfer and surf entrepreneur Brad Gerlach, and tips for creating unique corporate culture from Zappos.com Chief Executive Tony Hsieh.

Author Matt Mason, who wrote “The Pirate’s Dilemma: How Youth Culture Reinvented Capitalism,” seemed to hit a nerve with attendees. A former music journalist and pirate-radio deejay, Mason explored the idea that corporate culture and “commodification” of a lifestyle can unwittingly kill the very youth market it is trying to target. Today’s youth markets are much more savvy, he argued, and want a more interactive relationship with the brands providing them with apparel, music and entertainment. Sometimes that leads to piracy, with customers appropriating a product and changing, innovating or repurposing it.

He pointed to the case of Japanese streetwear brand A Bathing Ape creating sneakers inspired by Nike’s iconic “Air Force One” style. The shoes—obvious Nike knockoffs but with unique colors and quirky design details—are cult favorites among streetwear junkies and helped spur innovation as well as drive sales for Nike. Rather than fear youthful imitators, Mason said, the surf industry should find ways to draw inspiration from them. “They are just showing you what you should already be doing,” he said.

Kevin Carroll spoke about the importance of blurring the lines between play and work, something in which the surf industry is wellversed. Creativity, resourcefulness and positive thinking are key for businesses and leaders in tough times, he said. “Now is not the time to cut them out as extra expenses.”

Jim Moriarty, chief executive of the Surfrider Foundation, urged Summit attendees and brands to extend their passion for surfing into the charitable sector and to educate themselves about the political issues surrounding surfing and the environment.

Sir Ken Robinson, author of “Out of Our Minds: Learning to Be Creative,” encouraged brands and business leaders to “make innovation routine” by fostering creativity.

Waterfront news

SIMA announced a few changes in its hierarchy. Baker, longtime president of the association, will act as chairman emeritus for one year before a new president is named by the board of directors. “The leadership of the industry is moving to the young guys and girls,” Baker said, and SIMA is moving to add new blood to its ranks. Nixon’s Chad DiNenna has been brought on as the new vice president of SIMA. “This is a year to get the next players in place to be the voice of the industry,” Baker said.

June will see the debut of SIMA’s newly redesigned Web site (www.sima.com), and the “2008 Distribution Study” will be mailed to members in July 2009. The 2008 study will mark five years of trends compiled by SIMA.

Image awards

The SIMA Image Awards closed the Summit on Friday night.

Insight won “Breakthrough Brand of the Year” and “Men’s Marketing Campaign of the Year”; Surfside Sports won “Breakthrough Retailer of the Year”; RVCA won“Men’s Apparel Brand of the Year”; Hurley’s “Advantage” won “Men’s Boardshort of the Year”; Active Ride won “Men’s Retailer ofthe Year”; Billabong Girls won “Women’s Apparel Brand of the Year” and “Marketing Campaign of the Year”; L*Space won“Women’s Swim Brand of the Year”; SunDiego won “Women’s Retailer of the Year”; Nixon’s “51-30” watch won “Accessory Product of the Year”; Billabong’s “Sonic Recycler” boardshort won “Environmental Product of the Year”; Sanuk’s “Sidewalk Surfer” won “Footwear Product of the Year”; Channel Islands’ “Biscuit” won “Surfboard Model of the Year”; and Xcel’s “Infiniti Drylock” won “Wetsuit of the Year.”

For more photos from Surf Summit, click here.