The 'Olympic' effect on outdoors water activities

The Olympic Opportunity

So this is interesting and counter intuitive in equal measure. Most of the research that I have read suggests there is only a trickle effect on the general population - meaning the Olympics doesn’t usually result in a mass increase in physical activity, as I had expected. In fact it has had little effect beyond the improvement of local infrastructure in the host countries. Wow. What a missed opportunity. However, the fact that the Olympic council is including surfing and kitesurfing - hydro foil surfing no less - shows that there is a significant collective interest in these new water disciplines.

The competitions aren’t being held on conventional boards, but on foil boards. As usual, the kiteboarders will be pulled by a large kite that is steered using a control bar. However, unlike in kitesurfing, the board has an underwater sail attached, the so-called foil or hydrofoil. As different kites are required depending on the wind conditions, "Formula Kite" is not a one-design class at the Olympic Games and the size of the kites and foils can vary. ISPO tells us that ‘after the Olympics at the latest, the demand for kite-foiling will increase in windy regions - kitefoil tourists are coming!’ And who are we to argue? Interestingly, while other outdoor activity purchasing has declined or remained stagnant after covid, watersport equipment has bucked that trend, by growing consistently in the US:

I’ve written about Kayaks/Canoes etc. in the past. And I think water is a really interesting category overall. As I see it, one of the main barriers to entry is the size and bulk of shipping. Hence there is still quite a bit of near shore and in market manufacturing. So, for anyone that can get on top of that model, and keep the product off the water, there is an opportunity. There has been an explosion of inflatables in the water category, but most still favor the good old fashioned and reliable molded models. As do I (after falling off my inflatable SUP multiple times here!) And the amount of water equipment activity here in France is very noticeable.

There is quite a bit of consolidation in the market as well. Pelican now owns Confluence, so there is a huge player in the segment. Pelican is a Canadian manufacturer, owned by Antoine and Christian Élie. The company remains very present in Quebec, with over 600 employees at factories in Laval and Salaberry-de-Valleyfield, although exports to the US and 52 other countries remain very important.

Another example is Solo Brands purchasing into the water segment, through Oru, ISLE and Chubbies. There is obvious acknowledgement there.

Water is an area that has actually innovated through improved performance - Think Swift canoes, and new functionality - Hydro Foil for example, and is reaping the benefits. The rest of the overall industry could learn. Watch this space and keep an eye for opportunities.

The main thing is that there is a growing interest in the water, and among an affluent demographic, which is usually a very good sign.

Surfonomics

Surfindustry.org gives us some great data on the surf demographics specifically, which is very interesting.

Data Highlights

• In 2020, the overall surfing population was approximately 3.8-million participants.

• From 2019 to 2020, the surfing population grew an astounding 28 percent.

• Passionate surfers are going surfing more often.

• The core surfing population grew by a whopping 34 percent from 2019 to 2020.

• Of the 3.8 million surfers, 65 percent are male, 35 percent female.

• The 25- to 34-year-old age bracket is the largest, with 24 percent of the total surf population.

• Surfing is dominated by youth – as 71 percent of the total surfing participants are in the 6- to 34-year-old age range.

• In fact, 87 percent of all surfers are younger than 44 years old.

• Surfers are affluent: more than 44 percent have a household income of $100,000 or more. Surfers are well educated.

• Just over 56 percent of the total surfing population has some college education, while 41 percent are college graduates and almost 15 percent have post graduate studies.

• Surfers lead active lifestyles.

• The top other activities they participate in include fitness walking (41 percent), running (39 percent), day hiking (38 percent), swimming (37 percent), yoga (35 percent), road / paved surface bicycling (32 percent), snowboarding (24 percent), and skateboarding (21 percent).

And we know that positive economic effects that a healthy surfing industry can have on an area, as researched by savethewaves.org - below. Here is the most recent report available, with interesting details. Remember that costs are much lower oin Playa Hermosa, when examining the spend figures. Even at that, the effect is significant.

https://www.savethewaves.org/wp-content/uploads/2022/01/PlayaHermosa_SurfonomicsStudy_English_2021_Web.pdf

Results of last week’s polls

Thanks for all the crucial feedback.

Q1. There is definitely an appetite for a more in-depth examination of various subjects.

Q2. Paid sub seems to be very much dependent on the quality of the content.

Q3. Nothing worthwhile was very much the winner - at 65%, when asked if there were any other subscriptions that we could learn from, although Chip Wilson, Daily Digest and Growth in Reverse got a few mentions.

Q4. Again, not much awareness of others, other than OIA.

Q5. And there is a real appetite for ‘cutting the crap’!!!