The surf industry isn't dead
“Billabong is trading at $0.69 a share, down from $18.30 in 2007. Quiksilver is trading at $1.80, down from $16.80 in 2005.”
Reports of the surf industry's demise have been greatly exaggerated. Sure, the surf fashion companies are hurting now the man on the street prefers the splendour of Tap Out and Affliction, but it's not like surfers are getting any fewer or that we're getting any poorer. Recently pro surfing's new overlords, ZoSea, conducted research into the traits of the average surf fan. He's 34-years old and male, the good researchers at ZoSea told us, and he earns in excess of $75,000 a year much of which gets spent on surfing. Plus, a portion of surfers are reportedly “very, very wealthy people who will fly anywhere for a good wave.” Apparently the surfing dollars are still flowing somewhere at a good clip.
And two places they're flowing are surf travel and camera hardware.
That surfers are spending more money on travel only seems logical. Whether you believe ZoSea's research or not, surfers are a relatively cashed up cohort exposed to a stream of idyllic imagery. The Fear Of Missing Out is felt keenly and there's an ever growing range of surf travel companies to service our desires. In the late 1980s there was only one surf travel company in Australia – King Surfaris, which later became The Surf Travel Company – yet now there are upwards of forty surf travel companies in Australia all vying for the disposable chunk of our income.
The rapid spread of surf camps has only aided the surf travel companies cause - many camps can only be booked via their offices. Same with boat trips, except for one or two independent operators surf travel companies are their sole representatives and booking agents.
Surf travel data is nigh on impossible to find but the Australian Bureau of Statistics offer some info on the wider community. In the 12 months leading up to 2010 Australians took 6.8 million short term overseas holidays. Two decades earlier – when King Surfaris were running budget 2” x 3” ads in Tracks but surf fashion was booming – Australians took just 2.1 million holidays.
The proliferation of surf travel companies and associated businesses – booking agents, specialised adventures, independent charters – are testament to the flourishing industry, and as the travel industry grows a subtle transition is happening, one that manifests itself in the advertising sphere. The banner ads on websites and double page spreads in the magazines formerly reserved for the clothing companies are now being encroached upon by travel companies.
The other sector of the surf industry enjoying boom times is camera technology. Of course cameras have been around for many years but they weren't considered products of the surf industry until a recent change. That being the advent of the self-operated camera. The modern action cam makes the surfer both subject and object, and ironically it had its genesis during a surf trip. Whilst holidaying in Indonesia Californian Nick Woodman lamented the lack of a camera to adequately film himself surfing. Narcissism being a wonderful foundation for commerce, Woodman spotted a gap in the market and subsequently created the first GoPro camera in 2002.
The effect Woodman's cameras had on surfing was little short of seismic. For a couple of hundred dollars surfers could film themselves in high quality and broadcast their minute-long Skeleton Bay barrel or their clodhopping style to the world. The amateur surf clip became ubiquitous, as did the GoPro surfboard mount.
GoPro's success was noticed by other entrepreneurs who created accessories to service our streak of vanity. First were the straight GoPro copies, such as Sony Action Cam, and Contour, and then the more inventive, such as the SoloShot, which allowed the surfer to be filmed remotely from the beach. To operate, unclip a tripod, screw the SoloShot and camera on top, strap the receiver around your arm and paddle out. Standing unattended on the beach the SoloShot tracks your movements and films the whole session. Never mind thieves, on their FAQ page SoloShot recommend chaining your tripod and expensive camera to a piece of driftwood. Presumably a very heavy piece of driftwood.
Recently SoloShot-style tracking technology has taken off – literally – with the production of the AirDog, which combines the idea of the land-based SoloShot with drones. Just launch it, strap a receiver on your body, and like a loyal Labrador the AirDog follows you hovering directly overhead for the duration of your session. The grumbles from fellow surfers will surely be outweighed by the bird's eye footage of your bald spot. The AirDog will be available in December.
Whether the SoloShot, AirDog, or any similar future inventions, endure the way GoPro has remains to be seen because it's GoPro that has driven this new market. They conceived the idea of the action cam, produced it, and have led the way with technology such as higher frame rates. Their popularity is reflected on the share market.
In late June Woodman floated GoPro at $24 a share. However, the share price has risen steadily since then, boosted in part by the recent release of the Hero 4. GoPro's share price currently stands at $94 and the company's market capitalisation – the net worth of all outstanding shares – is an almighty $11.82 billion. In comparison the combined market cap for Billabong and Quiksilver is less than $1 billion.
Despite the gloom the surf industry isn't dead, it's simply evolved. To get a correct prognosis of the surf industry the scope of the examination needs to be widened, the definition expanded, because in some quarters it's looking very healthy indeed.
Comments
and the custom surfboard business has never been stronger........but,other than Rip Curl is there any other of the Surf Co's making money......rhetorical question....No....
so sales are strong.....but those public Co's seem to be struggling big time!
GoPro transcended the surf world a long time ago.
Mountain biking, fishing, snowboarding, skiiing, skateboarding etc etc etc . Pretty much any action sport has been colonised successfully by GoPro.
You'd have to think ZoSea would be coveting a slice of that action. Plenty of dough there to sponsor a contest or three or be a global sponsor for the Tour itself.
Fishing is an action sport?
Good points--a lot of sports are using go pro--and don't worry --Zooatsea-- will be courting Go-Pro....
hahahahah........seen this shot on a GoPro?
Makes most surf sessions look like tiddlywinks
Oh come on, they're playing it for the cameras. The drama! The tension! The haircuts!
Just fucken put a worm on and sit down. No need for GoPros here.
The end of that video when old mate gets slammed by that set is horrific, barnacles galore all over those rocks!!
That was gold Freeride. Absolute fuckwits , but gold nonetheless . What's with all the catch and release though ? I think that maybe the boys are angling ( snigger, snigger ) for a Jackass style Xtreme fishing show.
I'd like to see them try a few of those antics on the rocks around here. Actually, no I wouldn't. They would die.
Fuck yeah, I couldn't stop laughing near the end.
Nice one Freeride
Don't get left behind on this Stu.
There'll be Patagonia sponnoed rockfishermen before the year is out.
It's all shot around here Craig.
Those low ledges love eating human flesh.
Few nice fish though.
The amount of amateur surf photogs is insane these days. I reckon Aquatech is probably doing pretty well these days also. One morning recently I was at a little reefbreak and there were more photogs than surfers!
Go Pro has inadvertently inspired young amateur photogs to get into the hobby. GoPro is like the entry level for the groms, a Canon or Nikon in a housing is like the rite of passage!
Soon people will no longer need GoPros on their boards cause every angle will already be covered haha!
I would just like it known that I deny permission for the use of my image while surfing anywhere, anytime and, most particularly, no such image must ever be allowed to cross my retina. It is a constant struggle to cling to my delusions of adequacy. A line must be drawn!
Throwing rocks at dogs - bad.
Throwing rocks at airdogs - good.
Let's not forget about the proliferation of swell forecast / surfing websites.
The money to be made from surfing isn't drying up, it's just being rerouted.
Fuck yeah, I forgot about them.
Spending money on memories rather than fashion is a welcome change, but the advent of cameras into the surf zone isn't quite as welcome. Local Yocal I'm blown away by how many surf photographers exist these days. For the first half of my surfing life I have maybe five photos, for the second half I've got over 100, and I've never once asked to have my photo taken.
So when this Airdog loses power/malfunctions it'll be right above you most likely, hence crashing and cutting up your scalp?
Probably worth pointing out that production of the AirDog is being funded by a successful Kickstarter campaign.
Did you hear that Shaun, Kickstarter!
Not all the surf fashion companies are struggling, the SMH is reporting Rip Curl is back in the black and looking to float.
http://www.smh.com.au/business/retail/profit-swells-in-favour-of-possibl...
In the caves carpark the shotguns are loaded awaiting the arrival of the first drone .
I just saw my first drone at the beach a few days ago. Utterly pumping waves with only a few out and a fella rocked up and decided he would rather film it for the internet than surf on his first day ever at this spot.
Fortunately a 30km / hour onshore hit and nearly blew his drone to the equator.
Nice work Huey.
I can imagine the scene, local snatches remote control from owners hands and throws the remote control at drone knocking it out of the sky.
Or a more comical version would be local snatches remote from owner and uses drone to chase owner out of car park diving at him like a magpie in spring.
A slingshot should do the job.
So when is someone going to crack the "all surfboards magically cost $700-800 whether hand made or not" voodoo? That would be a nice innovation...
Good luck trying to get someone to pay over $800 for a board when you can pick CI's up for half that in Bali if you know someone. Wouldn't it be a hoot to treat Drones like clay pigeons. Pull, bamm.
Where in Asia do they make CI's? Im surprised there that cheap.
Because generally speaking boards made in Indo/bali are cheap.
But i wouldn't have thought imported boards are that cheap, because Indonesia actually has high taxes on surfboard imports (and other imports) cant remember how much.
Indo there is a whole CI shop chocka with them in Seminyak. Brutus is right they are a churn out jobs and do look a little rough around the edges (finishing) with light glass jobs. If you know someone who knows someone can be had for around $400 which is still a lot of money to the average Balinese. Not sure about importing them however if you are there on a holiday different story.
Wonder if there made in Bali?...Seems like the board making industry is booming there, lot of western shapers setting up shop, kinda makes sense, very cheap overheads and Bali is kinda like the new Hawaii in a way, with every tom dick and harry moving there.
Indo there are 4 machines in Bali all seemed to be located in Denpasar. The machine shaping is done in factories there, trucked back to the shop in Seminyak which has a small shaping booth where the concaves and finishing of the blank is done by Chris (a westerner) then sent back again to Denpasar for the glassing. Finally they come back to the shop for a wet rub and put in the rack. Feasibly you could get your guru shaper to send your custom board file to Bali for production at a much cheaper rate. I am not advocating this however that is what CI are doing. Like everything these days the money in design is only there if you can safeguard it somehow. Look at what happened to music.
Yeah okay that all makes sense and hence why cheap. (not imported)
actually memlasurf......a lot of customs go for a lot more than $800.......and yeah that's about what a CI is worth.....$400.....old designs and just Hype, mass produced stock bds...made in Asia hahaha
The workers in Asia making those boards deserve more pay. They work hard.
Hey Free ride cant have all been shot around leba cause theres no queenies that far down as far as i know.Good vid though.
some in QLD
I dont get why people would book through a surf travel company?, surf travel companies work on a commission basis getting a percentage of the price, i believe generally 10% sometimes higher(15%-20%), depends if the product is exclusive to them or not.
This means its in there best interest to try to book you into a higher price resort or boat to gain the bigger commission because they are most of the time in competition with may other surf travel agents (globally) and there is only so may places a year.
For example 8 spots a trip 20 trips a year, and each Surf travel agent wants commission from as many of those trips as possible.
Smart operators (resorts/charter boats) have used this to there advantage, they put higher prices on there product which means surf travel agents will try to sell there product first. (off course it has to be a decent product firstly so the surf travel agents are willing to back it)
Also if the surf travel company has not been performing for a resort/charter boat they may have pressure from the resort/charter to sell places or lose being able to sell that product.
Hence if you are open minded and willing to take there suggestions, then you may be getting guided not into the best product, but what they get out of it.
And if you are going to them and already know what you want, then your much better going direct to the resort or charter operator as If you can book direct with a resort/charter boat and especially if your flexible with dates, book last minute or times of year that are hard to fill, you have heaps more bargaining power and can save at a minimum the % the surf travel companies get.
.....or just travel light by local transport and negotiate when you get there!
Haven't been on a surf trip in quite awhile--happened to settle where there are some pretty decent waves--but if I went on a surf trip--I would never book at a surf camp or charter boat--would rather do "my own" research --stay at a off the beaten path place--hire a local boat or panga--and maybe have a real adventure........instead of some pansified-- air conditioned ---yuppie--surf camp--or charter boat.....peace.........
Go Pro is not the surf industry--and if some one wants to get rich--why don't they make a similiar product--and sell it for 3/4 of the Go Pro price?
Go Pro is not the surf industry? Well I admit it's not as clear cut as, say, a surfboard manufacturer, but keep in mind that it was conceived as a surfing product - it was made by a surfer for surfers. And sure, other sports now use GoPros, but a significant share of Quik, Rip, and Bong's profits are made off non-surfers too.
Yes-to quote you --"a significant share of Quik, Rip, and Bong's profits are made off "non-surfers."-- But-- these-- "non-surfers"-- who were buying Quik, Rip- Etc--were trying to specifically "buy into"-- and relate to--the 'surf life style' --if only vicariously. --But the difference with Go Pro-- even though it was made by a surfer--for surfers--you have skiers-bikers,snowboarders--water skiers -hikers-- mountain climbers--sky divers --skateboarders--mountain bikers--almost every sport under the sun using Go Pro--to record-- "their passion"-- and these dudes could probably care less about relating to surfing or the surf life style.---.Surfers are probably now just one "small piece" of the over all Go Pro sales today-out of all the others sports people are trying to capture--even fishing...
Stu--sounds like you might have bought some Go Pro stock--a while back?
With the above being said--I don't think you can consider Go Pro a real part of the surf industry--or maybe a very minor part---I think it is more accurate to call Go Pro a part of the world wide Sport's Industry...
"The surf industry--is not surfing--my brief forays into the dark-- sickly heart of the matter-- have reminded me of that." LS
t ty carson, I think a GoPro similar product was listing on the stock exchange today - or tmoro in USA.
are these figures using the same algorithm they use to calculate the millions of online viewers of comps?
Seems Quick is down to 1.44 today--is that a junk bond or stock now?
freeride, tell me if that fishing vid looks a bit ghey compared to this....
fuck me.
Methinks the old stalwarts of the surf industry have probably run their race, Ripc may have recently posted some good news but it’s on the slide and I don’t think there would be any economics analyst worth his salt that would suggest otherwise. They don’t think laterally enough and therefore have a diminished reach into the real surfing community. On the subject of go-pros and being in the technological age, why aren’t surf companies being more innovative and manufacturing more items of specific technological value?? Like surfing inspired smart phones, binoculars that provide a relative wave height and wind dir/speed reading, a push bike or scooter that can actually safely transport it’s rider and equipment.
Regarding clothing, many older crew don’t give a fuck about wearing a rippy or quik tshirt just like younger crew would prefer to only be clothed in some edgy brand that hardly anyone else knows about. From what I can gather, Vans seem to be one of the true mainstream brands to have bucked that clothing trend. I know this is harking back to an earlier forum but the whole surfing population is made up of folks from all walks of life who beside the very act of surfing have nothing else to do with the industry, bar those fleeting moments when they buy a board, order a wetty online or buy wax from a servo. Just the other day before I paddled out, I scanned the car park (prior to stashing the keys) and I saw a PT in Adidas trakkies, a tradie, a bloke in a suit, some odd looking hippy fellow and a handful of other crew, one I know to be a teacher and a few others. This sociological snapshot of surfing life says a lot about the fact that most ‘surfers’ are kind of like bike riders. That is to say, it’s an exercise of sorts and any one can and will do it (particularly in Australia). Whether it’s for pleasure or purpose. Fark, if the big boys want to really re-assert their apparel dominance maybe they should be engineering stuff that is actually useful for the run-of-the-mill surfer like truly wrinkle free business attire that can be tossed into the boot carelessly, tradies work wear that is tax deductible etc etc. So long as they make it in Australia eh ; ) but that’s another story
That is correct the surf industry is not dead. What is not correct is that the average surf follower earns in excess of $75k. The big players are hurting no doubt and if you can not see that you are dreaming. Go to the Gold Coast and see the Surfshops sideways which are selling everything up to 70% of RRP, then you realise the excess stock that is sitting in all the suppliers warehouses. Just a few examples are $25 Creatures Legropes, $250 Oneill wetsuits- all over half price off. The industry is not dead, what is dead is the high prices people are willing to pay for surf goods.
The next big spin? Ride sharing surf app. I know for a fact it is being developed. Kinda like a micro surf travel co, similar to Uber.
Surf stuff is alive and thriving IMO, now heading into 5 generations of participants - thank your mother & missus for the rabbits, he he.
Casual beach fashion is also strong IMO, the reason those Listed Co's are dogging is because they drunk their own coolaid and over leveraged ( ZQK debt for rossignol & BBG debt for retail expansion ). Rest is history, if not for that debt, they'd be trucking along just fine. Plus they then had to dilute existing stock to Priv. Equity loan sharks.
For boards, methinks, and does / is, be happy to pay $1000+ for a handshaped, well glassed, hand rubbed custom.
The home footage stuff, I love it, go-pro etc. I'm getting into it myself, but for chasing whales / dolphins / the odd stingray / sunrises - sunsets / assorted other groovy stuff.
(... from fully tropo FNQ.)
WTF? From the Snowy Mountains (assume that's what you meant when you said Ozarks) to the tropics, and no surf in either place!
Sid flew over to USA and featured in the "Clash of the Ozarks" Discovery Chanel
Playing the part as the bloke living of old mates land, running around in bare feet wearing dungarees and yielding a big sharp knife.
Cooks the best moonshine ;)
Settle. Flew outa Moruya, after a week on Sth Coast. Doesn't matter, Sid is outa action after hernia op 3 weeks ago. Light duties but not lite beer. Always gotta have my annual FNQ defrost (casual beach fashion everywhere, do they surf? nah.)
Do have mate with a 58' Cat up here. Really sucks.
No waves up here ay Stu? - OK, if you say so...
(Welly, if only you knew the half of it. he he.)
Going by your old Avatar Sid
With the old icecream van hehe.
Yeah would not have a clue about Half of it :)