Outdoor Retailer Summer Market Conference Highlights
Emerald Exposition LLC's Outdoor Retailer conference took place last week in Salt Lake City, the largest gathering of the outdoor industry and a space overall that OTR Global views as well positioned for the second half of the year. The show, which showcased spring 2016 product, was bustling and bigger than ever, reflecting of growing participation in outdoor activities, according to the Outdoor Foundation.
If there were a big theme at the show, it was water -- whether expressed as a campaign at Timberland booths in which the theme was the “The Wharf District,” which served as a backdrop for its boat shoe offerings or at various brand booths highlighting high-tech waterproof fabrics or footwear capable of shedding or repelling water.
The theme likely not only speaks to growth in trail running but also the increasing popularity of other water-themed sports like paddle boarding, fly fishing and kayaking. It also speaks to the growing popularity of “glamping” (glamour + camping), a pampered form of camping that has helped expand the activity among those seeking a more comfortable and less bare-bones outdoor experience. Another big theme was the convergence of active lifestyle and outdoor as embraced by young urban dwellers who seek to integrate activities and minimize time and equipment commitment.
One of the challenges of the outdoor industry, according to multiple vendors is a disconnect between the urban customer and the typical sporting goods or outdoor retailer, which is geared to a more old-school way of experiencing the outdoors. While Recreational Equipment Inc. (REI)was repeatedly praised as the standard bearer for smart outdoor retailing practices, many vendors whose goods reflected a more lifestyle bent spoke more highly of Nordstrom Inc. as a place they’d ideally like to see their goods sold. For those who hadn’t yet won a spot in the department store, resort boutiques were often mentioned as more receptive to items appealing to a younger, more fashion-forward customer.
In Outdoor Retailer’s main halls, in which wares spoke to a more traditional outdoor customer and retailer, Columbia Sportswear Co. stood out in the waterproof category with a big splashy booth in the main hall emblazoned with the tagline “We’re From Portland, We Know Rain” that featured its proprietary rain-repellent fabric called Outdry Extreme as featured on jackets and pants, which were awarded "Best New Gear" by Gear Institute. Available in spring 2016, Outdry Extreme products will range in price from $150-$400.
VF Corp.’s The North Face was also well represented at the show and themed its booth around Meru, a film documenting a climb on the challenging Shark’s Fin wall located on Mt. Meru in India. Sponsored by The North Face, the expedition included three climbers (including Jimmy Chin, a 14-year member of the brand’s athletic team), who attended Outdoor Retailer and were available for question-and-answer sessions. The film speaks to The North Face’s talent for using embedded marketing practices in which the product and the activity are aligned as one.
In footwear, brands including Wolverine World Wide Inc.’s Merrell and Saucony, The North Face, Under Armour Inc., Skechers USA Inc., Berkshire Hathaway Inc.’s Brooks Sports all showed shoes speaking to two main trends -- a move away from minimalism with a return to cushioning features and trail running, with several brands showing shoes featuring water-drainage systems. In prior reports, OTR buyer sources have said that for running or walking footwear, the consumer tends to favor athletic over outdoor-rooted brands; thus, the theme may be outdoor, but the customer is more often choosing the athletic brand’s version of the trend.
In the outdoor boot category, uppers have been updated with lighter-weight woven materials, but the stronger part of the business for several brands is their lifestyle division featuring leather classics, which have been embraced as a fashion trend by urban dwellers. The popularity of VF’s Timberland 6-inch wheat boot is well established, but the trend has also favored ABC-Mart Inc.’s (2670 JP) Danner Boot's Mountain Light Cascade boot, which is a big hit among women since it was featured in the movie Wild in 2014, starring Reese Witherspoon. Duck boots, which were a big breakout hit in 2014, are viewed as growing in popularity in 2015, with Wolverine’s Sperry and L.L. Bean Inc.’s versions viewed as leaders of the category.
The Rise of the Urban Active Lifestyle Enthusiast
With most of the United States' population growth taking place in metropolitan regions and one in three Americans living in the 10 most populous metros, one of the major trends shaping the outdoor industry is the urban consumer’s desire to experience an integrated healthy lifestyle, which includes clothing, activities and diet -- all of which has crossover with outdoor.
At Outdoor Retailer, the trend was reflected in the three pavilion area tents, one of which featured vendors offering “apparel and accessories, footwear, yoga and activewear [to] venture out.” Vendors within the tent repeatedly mentioned a customer seeking fashion with athleisure components, whether fabric or silhouettes; a desire for social activities with a fitness component; and connectivity check-out time, even if as short as a couple of hours spent in a city park.
In footwear, the trend has favored athletic footwear, as well as comfortable footwear, most prominently by Decker Outdoor Corp.’s Teva, Keen Inc. and Birkenstock Orthopadie GmbH & Co. KG's Birkenstock USA LP, which saw many of its classic silhouettes this year completely sell out. One comfort footwear vendor said the lifestyle trend in department stores was growing so much faster than sales in outdoor retailers that the company planned to reduce its commitment to Outdoor Retailer.
In apparel, yoga and running-themed looks have literally become a way of life, with fabrics featuring stretch translated to all manners of clothing, including casual dresses, button-ups and cargo pants, which is a trend Lululemon Athletica Inc. can be credited with leading. Yoga in many ways remains an anchor of sorts, with lifestyle fashion now following its lead, as well as a complement to other fitness activities. One vendor at the site selling climbing merchandise said that many indoor climbing studios recently have begun to add yoga classes.
The fast-growing sport of paddle boarding (in which vendors took up over one-half of one of the three pavilion tents) in many ways reflects the urban outdoor enthusiast as it combines outdoor escape time that isn't too lengthy, plus group fitness. It’s also the ultimate selfie sport in that in entails standing, creating a platform to show off one’s beach bod and style. Reflective of cross-fit trends, classes have recently emerged combining yoga and paddle boarding. And even on vacation, young travelers are looking to stay fit, with many destinations offering the activity as an option -- all choices reflective of a new take on combining healthy living, fitness and outdoors.
