25 brands presented their new products at the Sport & Outdoor Media Day in Munich. The event organized by Mandel PR in the ”Kohlebunker” near the MOC (Munich Order Center) was one of the first major industry gatherings in Germany since the start of the Covid crisis.
We took the opportunity to hear from the brands about how they are looking at the near future in these challenging times. The topics addressed were very similar: new target groups and increased interest in outdoor products, challenges in the supply chain and collaboration with retailers.
One of the exhibitors was Devold. The company is seeing growth in the upper double digits. At the same time, the brand has undergone a relaunch. Herbert Horelt, managing director and country manager of Devold of Norway GmbH, distributor and the representative of the Norwegian brand in Central Europe, explains why this was important:
“We want to get out of people’s heads that wool equals underwear. Our range includes a ski jacket for the first time, plus more mid-layers. At the same time, we are strong on the topic of sustainability; it’s just that communication in this area is weak. For these reasons, we worked with the agency Pascher+Heinz on a relaunch of our brand with a new look and an increased focus on storytelling.”
Overheating Market?
With a view on the overall market, Horelt advises caution, especially against an “overheating of the market.” Demand is very high right now, which will “remain so in 2022/23. But what happens when long-distance travel becomes possible again on a broad scale? Then the end consumers’ budgets will be directed toward travel,” Horelt says. At that point, there may be “too much product and too little demand.” Horelt wonders if the “industry is prepared for that?”
Andy Schimeck, Global Sales Director of Equip Outdoor Technologies (the owner of the Rab and Lowe Alpine brands), has a different take on the situation. He doesn’t think that too much product is coming into the market: “Rather, as an industry, we haven’t yet grasped how many new people have gained access to the industry. The current situation will continue to help more people get into the outdoors and to enable them access to the benefits that the outdoors have on our physical and mental wellbeing.”
As for Equip, he continues to see great potential for growth in the short and medium-term, and that’s although the company has already seen strong growth in recent years. However, “the market shares are shifting to other target groups, and that also has an impact on the product range.” Sales have already more than doubled from 2019 to 2022, he said. Core segments for Equip are insulation/down and synthetic insulation products (jackets, sleeping bags, etc.), with shells in third place. “Our challenge is the supply chain issue. There is also no telling when that situation will ease.”
Nick Brosnan, global marketing manager of Polygiene, also sees the inclusion of new target groups as a veritable trend: “We have benefited greatly from the outdoor trend and see a great opportunity for families to enjoy outdoor experiences together. For us, collaborations with outdoor and fashion brands are a perfect fit. You can use the same gear for outdoor, travel and more. In the past, the outdoor industry was generally quite exclusive. You had to be core. Now, the industry is far more inclusive. Over the last five years, we’ve had tremendous growth, which is continuing, and which we expect to continue increasing rapidly with our great brand partners.”
Read here our latest interview with Polygiene’s CEO, Ulrika Björk.
Lifestyle Outdoor with huge growth potential
The situation is similar at Dometic. With a history of more than 100 years, the Swedish company has only been tapping the outdoor market as a specific segment since 2019 and is benefiting from the increased interest in outdoor activities. Consequently, Minako Nakatsuma Olofzon, global PR manager Dometic, is confident about the future: “Lifestyle Outdoor is our company’s main growth potential market. That is why we are focusing on it. We see the huge demand.” The challenge for Dometic now is “to position ourselves closer to the consumer. We try to make ourselves understandable to the consumer.”
This is a challenge that Deuter, as a cornerstone of the industry, does not face. Despite the slump in demand for long-distance travel bags and backpacks, the brand still benefits from the outdoor boom. PR manager Angela Vögele: “We have real momentum, and once the supply chain is working again, we’ll really get going.”
Jan Otto, marketing manager DACH at Sidas, says, “Despite Covid, we had the best business year in company history.” For the foot specialist, it is currently enormously important “to take specialist retailers with us into the sales of the future.” This includes setting oneself apart from pure online stores through expertise, shopping experiences and consulting services. At the same time, it is enormously important to capture customer data digitally and establish contact with the customer.
Postponed campaigns
Salomon has had to postpone its increased online contact with customers in Germany for the time being. As with many companies, shipping delays prevent the company from delivering the new spring collections on time. Stephanie Demuth, marketing manager at Salomon Germany, said, “Many campaigns are postponed from March to May/June because some products are not yet available. As a result, some campaigns will overlap with the fall campaigns.” However, the basic outlook is positive: “The pandemic was a catalyst for digitalization for us. We drew many learnings that are worth taking into the future. These include the topic of digital, hybrid working, and sustainability.”
Key focus sustainability: Learn more about the latest findings on this topic in our EDM sustainability edition.
The challenge now, she said, is “to maintain the trust of brick-and-mortar retailers and implement joint campaigns, for example. At the same time, we have to deal with the fact that delivery deadlines are not being met. Therefore, we must be in close exchange with our B2B partners to be able to work in an agile manner.”
Demuth will have another opportunity for this exchange on a larger scale at OutDoor by ISPO from June 12 to 14. The event location will also be the Kohlebunker and, above all, the neighboring MOC.
