Skateboarding Stays In The Grind

The world has been waiting for the skateboard industry to peak, but it keeps on rolling and reinventing itself. So all skeptics get ready to hit the deck.
It used to be that skaters would pull ratty Stussy tees out of their closet and brag that they were sponsored by the legendary brand (a case of the skate geek wanting more street cred than he deserved). But Stussy must have been listening, since the company recently began sponsoring a select few skateboarders for the first time. The move doesn't shock anyone.
ìA lot of companies are coming from street perspectives and getting into skate,î says Shawn Baravetto, sales director at San Diego-based Alphanumeric. ìTriple Five Soul [has entered the scene] and Fresh Jive now has a skate team. It's all about branding [rather than selling to a new audience], enhancing the overall image.î
According to Baravetto, more skate retailers are picking up on street brands, a smart move for the skate business overall. He expects his skate business to double this springóand nearly 85 percent of his line is skate apparel.
Fresh Blood
Fresh blood is generally a good sign that business is boomingóparticularly if the new blood comes from old roots. Across the country, long boards have been flying off retail shelves; Chocolate, a deck brand with a solid-gold reputation, is one of the main beneficiaries. The brand has reinvested in its hardgoods success by creating Four Star, an apparel line for skaters that has hardcore retailers glowing.
Even Converseóknown by the mainstream for its basketball imageóbegan popping up in skate pubs about two years ago. ìWe felt we had a right to be in that market since the Chuck Taylor was the first shoe worn by skaters,î says Michelle Poole, Converse's category manager for action sports.
The brand crept into the skate market humbly, entering with a technically sound group of shoes. Giving his seal of approval, Alphanumericís Baravetto endorses the brand. ìConverse makes pretty damn good shoes. They have a rep on the street for making a long-lasting shoe. If youíre gnarly, you can kill your shoes quickly. I can wreck a pair of shoes in two or three days. I'm gnar...,î he says.
Some buyers, whoíve probably worn Chucks themselves, are starting to gravitate toward the brand now. Converse has kept its distribution to a tight 200 stores, targeting shops that mainly sell hardgoods. That dedication has started to pay off. Last year, Poole averaged three or four SKUs per shop, and this year she expects that number to double.
Good, Good, Good Foundations
When DC Shoes went into business six years ago, there were only six skate shoe brands on the market. Today there are more than 30, with DC and Sole Technologies comprising the core of that market. DC, a Vista, CA-based brand of footwear and apparel, has branched its US distribution to include BMX and motorcross outletsóas well as (gulp)óPacific Sunwear. Breaking into mall-based stores like Pac Sun was a point of contention among purists in the market, but Block says his sales in core shops haven't decreased.
ìAs far as we are concerned, the market isnít peaking,î says Ken Block, president of DC Shoes. ìDeck sales are steadily growing, though not the huge growth from several years ago. As for shoes, the market is growing and we see huge potential.î
However, Block acknowledges that outside of Southern California, skate looks are still a minorityóthough he sees potential for the market in Europe, where the brand is also spotted at fashion retailers. ìIn England, you have a large market, but only 60 skate shops,î says Block. ìSo it was only logical to expand, based on the market and demand. The same with Germany and a lot of the other markets.î
Sole Technologies, the other industry favorite, accounts for three of the 30-plus brands in the U.S. market. Sole's brand stable is comprised of Etnies, ES and Emerica, all of which experienced growth over the last few years. Industry watchers that are bullish on growth see Sole as a bright spot. They attribute the success of the brand to its ability to reach multiple tiers of consumers with different brand personalities.
ìSole seems to be going in the right direction. When you have a brand that is not as well-known doing well, then that helps the category and ultimately helps our brand,î says Les Draper, western regional sales manager for Vans, adding that the company has experienced a 17 percent increase in sales last year over 1998.
In this vein, retailers have seen more than a few startups get hot, brands like Circa and Audio. ìIíve seen several companies come and go...and companies like Nike make products for this market and fail at it,î says Block. ìRetailers want the stability of the brands that have the marketing power, team riders and solid product.î