The surf world is changing fast – consumer habits, supply chains, retail and even the sport itself are all evolving.
“If we don’t lead the change, we risk falling behind,” said Vipe Desai, executive director of the Surf Industry Members Association, during a gathering this week of industry leaders at the Rivian South Coast Theater in Laguna Beach.
The “SIMA Super Summit” addressed challenges and changes facing the industry, and how retailers and brands have shifted and adapted in recent years.
“Participation is up, momentum is building, and with the Olympics on the horizon, surfing continues to capture the world’s attention,” said Desai. “There’s a strong current of ‘for surfers, by surfers,’ a return to our roots and a reminder of why we’re all part of this incredible community.”
The industry has grown beyond the beach and surfing is having a large economic impact across California, the country and around the world, Desai told the crowd.
“But with growth comes responsibility. We must protect the environment we depend on and advocate for policies that support our businesses, our coastlines, and our culture,” Vesai urged.
Ryan Becker, senior vice president of communications for Visit California, spoke during the segment “Riding the Wave: How Surf Culture Inspires California Travel Marketing.”
Showing videos of how the sport has shaped the state’s image the past 30 years, he noted California is the No. 1 tourism economy in the United States and said last year visitors spent $157 billion in the state.
“Beaches and beach activities are the No. 1 destination driver, the No. 1 reason people consider taking a trip to California,” he said.
Visit California helped spearhead efforts to make surfing the state’s official sport in 2018 and to also designate Sept. 20 as California Surfing Day, “giving us a platform to talk about surfing,” Becker said.
“We use that designation to really give us a news hook when we’re talking to partners and media around the world,” he said, adding surf culture is embedded in the tourism group’s messaging about California being the “ultimate playground.”
The LA28 Olympics will be an opportunity to share a postcard with the world, Becker said. “The Olympics doesn’t need our help to sell tickets, we all know it will be one of those events that will be sold out.”
The Olympics is expected to bring in 15 million visitors, only a small percent of the state’s total visitation, based on about 300 million visitors annually.
“Our strategy is to try and harness the global spotlight that will be on the stage, in the lead up and during the Olympics and maximize that opportunity,” Becker said. “How do we ensure the billions of people watching from around the world are seeing a picture of California and hearing stories and drive demand for the state?”
A walking tour brought attendees, who came from around the country, to the Hobie Surf Shop, where employees spoke about their approach to retail, which steps outside of the typical surf shop model, they emphasized.
Hobie rep Trevor Erickson, who for 20 years has been the retail shop’s hard goods buyer, talked about the strategy of finding just the right mix of products.
“Our surfing sport is relatively small, it’s huge in our world and for those who live in Southern California, but we have customers from all around the world and we want to deliver something they can attach to the surfing world, but isn’t necessarily geared toward surfing,” he said.
Many surfers are also into camping, hiking and riding mountain bikes, so the shop tries to introduce consumers to products not found in typical surf shops, such as folding pocket knives or spotting scopes for birding or books on everything from hiking to fly fishing.
“We want people to discover something,” Erickson said. “I think that’s the soul of retail.”
San Clemente pro surfer Kolohe Andino, who competed on the World Tour for more than a decade, is transitioning from athlete to businessman, launching clothing brand Steko last December.
“I figured maybe I would learn something,” said the 31-year-old San Clemente surfer. “It’s doing great. I felt like there was a big gap in the market, where kids want something fresh. That’s what we’re here for.”
He’s already learning that it’s a tough business behind the scenes, but he’s up for the challenge, he said.
“Anything magnificent, or beautiful, needs a lot of work, like raising kids or going for a world title,” Andino, a father of three, said. “It requires a lot of work, so that wasn’t surprising. Just all the crunching the numbers and all that stuff, funding it myself is a little scary. It’s scary, but exciting.”
One observation he said he noticed is that the next generation doesn’t seem to be shopping at surf shops anymore, something he hopes to change.
“I want the coolest kids in town to go to surf shops and buy clothes,” he said.
The surf industry has seen struggles in recent years with store closures and layoffs seen among bigger brands.
Paul Naude, a former Billabong executive who started his own brand, Vissla, addressed the impact on the broader surf industry during a discussion with Surf Splendor podcast host David Lee Scales.
“I think big apparel and footwear brands have taken too much prominence,” he said, “and I think it’s time to rebalance.”
The surf industry once employed 80,000 people in Orange County, and in recent years tens of thousands of jobs have been lost, Naude noted.
“I think the industry has bottomed out and I think surf culture is alive and well and vibrant and there’s a lot of energy there and I’m excited about the future,” he said. “But in the interim, there’s a rebuilding process that needs to take place.”
What has emerged is the growth of several newer brands that make premium, authentic apparel and products, he said, and retailers realizing there’s a wide range of products consumers want. They may wear surf brands during the day and Gucci at night, he said.
“I think everyone is looking at history and asking, ‘What do I want to be?’ I want to make a good product, resonate, and have strong brand equity — but to do that I have to maintain a disciplined approach,” Naude said.
On the horizon, there’s much to be stoked about, he said. The Olympics will bring in new surfers, women’s surfing is off the charts and there are 100 wave pools either in the planning or already being built. Surf travel is a $70 billion industry.
“I think that there’s a ton to celebrate, I’m super excited about it,” Naude said. “Yes, at the moment we all feel a little bit beat up, but I honestly think this is the final year of beat ups, and I think we need unity, to work together.”