Kelly Slater quits Quiksilver
Who makes big announcements on April Fools Day? Who, on the least credible day on the calendar, types a long Facebook message that reads like a joke yet contains just enough specific content to be plausible?
The answer of course is Kelly Slater and the news wasn't any joke. In a 500-word Facebook post, Slater created surprise and confusion in the surfing world. He subsequently duplicated the post on Instagram and by then it was all but confirmed. There were a few clues from the outset. The naming of his new business partner being one, and also a remark implying Quiksilver no longer shared Slater's values. If it was a joke I'd imagine neither party would've been laughing.
His new business partner is French multinational company, Kering, formerly known as PPR and current owners of Puma, Gucci, and Volcom, amongst many other luxury goods labels. Slater plans on starting a new brand that, in his words, “combines my love of clean living, responsibility and style.”
Slater had his own label, VSTR, at Quiksilver but that was axed during the last round of Quiksilver cost cutting. That decision may now have cost Quiksilver much more than they first thought; Slater had been the companies figurehead since he won his first world title two decades ago and the rise of Quik was very much in lockstep with Slater's own rise to the top.
It's worth thinking how this fits into the recent changes in pro surfing and the broader surf industry. It's hard not to think that with this news the traditional custodians of pro surfing – the surfing companies – have retreated further into the background. Since ZoSea took over the helm they've had naming rights only, yet it seemed Quiksilver had a de facto arrangement with ZoSea: Paul Speaker was once on the Quiksilver board; the new commentators are largely of Quiksilver pedigree; and Terry Hardy orchestrated the whole deal. Today's news would appear to sever that link.
It's also worth noting that Kering own Volcom, whose founder and current CEO, Richard Woolcott, has a long history with Slater. Woolcott worked for Quiksilver when they signed Slater and he produced Slater's first bio-film, the hugely popular Kelly Slater in Black and White. In fact, it's Wooly's voice stating “It's the morning of the final” in the film's most memorable moment.
Not long after he uttered those words Woolcott left Quiksilver to start Volcom, and his reasoning sounded eerily similar to Slater's own. In todays announcement, Slater said the current changes wouldn’t have been possible “without an incredible amount of work by a few key individuals” and it's very likely Woolcott is one of those people.
On that score, Volcom didn't renew their ASP license for 2014 – the Fiji Pro has no sponsor at present. It was no secret that Volcom weren't happy with the handling of the World Tour under the care of ZoSea. Today's announcement brings both camps a little closer together, and it'd be worth watching to see any developments there.
STOP PRESS: At today's Drug Aware Pro, Kelly spoke to the ASP about the split from Quiksilver.
Comments
Sounds like scientology Kelly.
Zzzzzzzzzzzzzzzz
May be so. But, articles here have a good depth of content I reckon. I was reading about the Olive Bowers stuff and the content and opinion of the original story is pretty thin, and subsequent articles are regurgitations.
Quitsilver.
Still chuckling. It must be late.
the two bits that stick out for me are 'clean living' and 'responsibility'. Look up Joachim Zeitz and his work with Puma and then PPR....I wonder if this is the direction Kelly is talking about? Or maybe I'm just biased because I work in sustainability..wishful thinking etc.
I suppose it is a gamble for the avg pro, but I have often wondered why more of them haven't tried launching a brand whilst on tour.
I guess coming to the end of the contract they were in renewal negotiations. Kelly got some big spends ahead with wave pool so needs the cash. Gives some level of stability to the tour though. He is way more visible and bankable lifting titles than free surfing so he would have to give some commitment. I mean Kering would want to have a plan.
ummm , anyone else of the opinion that an April fools joke would need to be continued for atleast 24hrs untill the REAL target audience gets out of Bed ....... ?!
let's see, ZQK vs KER, 2 billion in rev vs 10 billion...
as Volcom did, Bob kelly Slater too decides to go with the multi national corp earning massive revenues...
Most likely a good decision.
It seems the pivotal reason to his switch is the pursuit/continuation of his own brand as described in his own words below:
"I’m excited to announce today that I’m embarking on a new journey. For years I've dreamt of developing a brand that combines my love of clean living, responsibility and style"
I just can't see how under a massive, listed corporation he can see/say that his best intentions described above will be honoured above the chase of profits... that kind of statement from him just seems so much more aligned with signing with Patagonia or something.
Why sign with another brand though? Kelly is one of a few althetes worldwide who have the capacity to do it themselves, on their own terms.
Quiksilver share price is up almost 5% today (US market). Seems like Kelly's announcement has had little impact on the market perception thus far.
Thermalben -
"Why sign with another brand?" He does not seem to have "signed with a brand" because he will not have one of their current consumer brands or "Kering" logos on his board, Kering comments are that they have entered into Partnership. Kelly will be a part business owner and the new brand will be on his board - Expect an announcement with brand name in the next few days, guaranteed.
A business venture is very risky and time consuming - when you are a full time or even part time professional anything else, where is your time? Hence the need for a partner and backer who knows something about a clothing brand and has the capacity to run it. In addition by partnering with a large, highly successful international conglomerate you have all the expertise within that business making your brand successful. So Kering will bring the expertise / platform and Kelly offers "Kelly".... An think of this: Which next "super star" would not sign with that brand?
Regarding the shares, if you take out Kelly's salary from Quicksilver, it is worth 5% more as that is 5% more bottom line :)
Exactly. Partner with a company that already has the infrastructure in place: sourcing, manufacturing, distribution and logistics, e-commerce, marketing etc etc.. Unless your goal is a sell out day at the Eumundi Markets companies need those backend resources to make an international go of it.
I was referring to offshoreozzie's statement that Kelly seems to be "so much more aligned with signing with Patagonia or something".
I was under the impression Kelly had his own brand? http://komunityproject.com/ "Kelly Slaters Komunity Project"? What does that mean for him and associated organisations like myself at http://www.surfersagainstsuicide.org/ which is a direct branch of Komunity.
People saying this isn't a big deal, I think it's huge. I can see quicksilver potentially looking at playing out the remained of the 2013 fiscal year in a similar fashion to Billabong. Kelly IS Quicksilver.
I wonder what he will slap on the nose of his board at Margs if he's legit...
Food for thought...
Hey - thanks for NOT posting exactly the exact same announcement / article as every other surf magazine and web site in the world. And for throwing down an opinion too, greatly appreciated. It's a marvellous end to an era in surfing - super exciting times. I think Kelly will simply flourish untethered, and I really hope the brand he creates behaves nothing like a traditional surf co. of the past.
Good commentary however isn't it exactly what we need right now, another surf brand. Hey what a brilliant idea, I will print some T shirts, hoodies, boardies, and because I am a super human surfer I can flog the stuff all over the surf world with the backing of a bunch of euro suits who are sharp as tacks. Sorry, bit jaded with the " love of clean living, responsibility and style" (does this have wowser overtones or is it just me). Haven't Patagonia being doing this forever but without a hero (although they have a old one in Wayne).
Agree. The amount of waste that goes into getting "new season" garments on shelves around the world is horrific.
Leaving the modern human slavery of special enterprise zone textile manufacturing out of it (have no information on Kerring's operations in this regard, and not suggesting they are involved)
Replying to my own post, but if anyone is interested here is a link to some information on slavery trends in textile manufacturing. Page 4 has some company ratings in regard to ensuring free trade in its supply chain.
Puma (Kerring) scored B, mostly due to raw material issues (long way up the supply chain)
Patogonia B, similar to Puma.
Quicksilver scored D
Sketchers - F
http://www.free2work.org/trends/apparel/
Thanks for the link MK1. Good reading.
KER runs their highly successful, exceedingly profitable businesses like Nike does with their Hurley division... Allow the highly successful founders to run the division as an independent company. Smaller cap growth companies signing up with mega companies flush with massive cash flow...
Bob Kelly Slater knows this. Billabong didn't.
Outside of boardies and wetsuits, do surfers wear surfwear?
great point wally; I don't. and isn't that where the surf industry bell-curve sits? ergo B, Q & R make most of their profits from non-surfers, or at least surfers that like to be walking billboards. target dropped JW and the industry? so why has K picked it up? that's worth thinking about, it's not just about KS, mega-corps invest in market positions, not just individuals.
Quik CEO Andy Mooney seems a bit nonplussed about Slater's move: http://www.shop-eat-surf.com/2014/04/andy-mooney-on-impacts-of-slater-departure-on-quik-marketing-plans/
VSTR was pretty underwhelming and hardly set the world on fire. He'll need to do a whole heap better with V.2....no matter how deep the pockets of his backers.
There's a million hip, edgy small surf labels out there now. Fragmentation on a scale that was unimaginable in the days of Quik, Bong and even Volcom.
Kellly's a global surf star but do the kids think he's hip? Because the clean living, sustainably minded forty year olds are already buying Pata-Gucci.
well not me. I buy op shop gear.
Same...I actually just picked up two new sets of boardies for next Indo trip mint condition big name surf brands all the bells a whistles about $10 for both.
But these days i tend to spend my life wearing my work clothes anyway..kinda sad.
Or Bylesies two for thirty bali boardies.
Kelly was the last to go. seems this move may be the end to Ouik's moves to reform the finances..... as Kelly moves on to a much larger company with heaps of funds, and well as experience in the branded high end sector, i'm guessing, ZQK's mgmt either gets the share price up, garners a buy out bid, or files BK.
Cori Schumacher on Quik vs. Kering:
http://www.corischumacher.com/2014/04/01/kelly-slaters-ethical-choice-le...
No quicky stickers on the board for Round 1 of Margaret..
Irony of a red singlet? ;)
Ha! Nice pick up.
top shelf global athletes such as say, Tiger Woods, have contracts with mega corps such as Nike, and market their own brand name line of swag as well.
The market place will decide if the Kelly Slater brand is a hit. My guess is yes.
Short interview with Kelly and Pete Mel during the webcast - the first public words since his Facebook/Instagram posts yesterday.
https://www.swellnet.com/news/swellnet-dispatch/2014/04/02/kelly-slater-...
...and he gives the explanation for the timing. His last contract was signed on April Fools Day five years ago so had to make the announcement when that contract ran out.
That is weird. An article in the LA Times on 9th June 2009 said "The Huntington Beach-based surfwear company announced today it has signed Slater, a nine-time world champion, to a five-year contract extension. Terms were not disclosed."
A whole bunch of surf mags (ASL, Transworld, Surfing) also printed a statement from Bob McKnight on the same day, with headings like "Slater Re-Signs With Quik". So I presumed the five year cut-off was then.
.....and style?!#? Brilliant surfer, crap guitarist and I don't think he will trouble the design gurus in Milan, Paris and New York. I know, I know that is not the market I just get sick of sports people thinking they are great at other things outside of sport. Perhaps he should of said I will be teaming up with....who are acknowledged fashionistas/clothing designers, etc.. designing garments which interest me. Let's face it I don't think we will see Kelly behind a sewing machine (bit facetious I know). How much lifestyle bullshit are we supposed to swallow. Personally I long ago moved way away from surf gear (as have my son and all his mates) and have recently embraced White Tag clothing (coastal clothing, not surf gear) developed by a local in my area here on the Mornington Peninsula who is also a contributor to swellnet. Support local I say, and don't make Kelly and his Euro mates any richer.
So, it's going to be a "lifestyle brand"...
http://www.businessoffashion.com/2014/04/kering-to-back-surf-star-kelly-...
What's that mean, Golf meets Stand Up Paddle boating? ... That sounds sustainable.
Good riddence
Good riddence to the politics and maybe now some real philosophy in surfing again and we may get back to the real meaning and enjoyment of surfing without competitions.
Competition. Without winners there wouldn't even be any civilization.
Yup, competition is here to stay.
just read the "Slave Labour in manufacturing.....mind boggling that Q/S is at the bottom,with Walmart........Companies like Disney rate higher....and of course Patagonia and Puma are B's....
I wonder how BBG and Rip do?? In this day and age the surfing industry looks to have neglected some of the moral aspects governing lifestyle youth brands.....including S/bds which is still probably one of the more toxic industries on the planet today....
maybe Kelly wants to try and start a Patagonia style surf Co....based on worlds best practice and not worst??
Noting that all of Europe, Australia, and the US were all more than partially built on child labor, why deny the chance for less developed nations to help their families by working?
http://backstoryradio.org/shows/young-americans-2/
so you think that child slave labour is Ok because its in our past history.....would you also like to bring back the White Australia policy.....take the vote off women......and on and on........??????
brutus, of course not.... doesn't all change come from within?
ohh roller change from within....now theres a philosophical question......that's another whole post..............
I think that with child slavery/abuse.....making toxic products ..is slowly being eliminated from our society...because its...wrong!!
So is Q wrong?
Brutus, Wrong? Or wrang wrang?
clearly Q is changing from within.