The sport is still growing. It's the industry that is shrinking.

[blueplanetsurf]

Of course Cheap China Crap is actually what everyone is selling. With the exception of Wardog I don't think there are many retailers who aren't selling Asian boards. Starboard, Naish, etc--all Asian. Most retailers who have a private label brand are selling locally shaped, asian produced boards--or just labelled generics.  I have no idea why an aggressive Asian company hasn't bypassed the distributor/retailer model and built a quality board to sell directly. If they aimed it specifically at the larger market (NOT us) they'd probably do fine.

From what I hear, SUP ATX is basically owned by the Chinese factory that makes the boards and they mostly bypass the distributor/retailer model by selling online directly to consumers, so this is not really a new concept.

Also, I like to think there is a difference between Cheap China Crap and quality products that are manufactured in Asia.  Some of the best construction technologies are built in Asia- Thailand, Vietnam, and China.  All Apple products are made in China, that does not mean they are crap.

[PonoBill]

I didn't know that, but it makes a lot of sense. Now all they need to do is pick up a quality shaper, like say,  Brian Szymanski, and a performance brand, Like Lahui Kai, and they'd be set.

Oh, wait...

Damn, they got Johnny Puakea too. http://www.puakeapaddles.com/ 

[TallDude]

I remember when everyone thought if you could design a popular product and get it made in China you'd be rich!  Probably the first million people that did, made some money.

[Easy Rider]

Just to clarify - by "CCC" I mean the brands that no one has ever heard of, and the brands that flood my email inbox with "We make boards for you.  Can copy all top brands".   
I did not mean the quality products that are made in Asia. 

[PonoBill]

I understand that it's feasible to build quality products in Asia. Where that line gets drawn becomes a lot more blurry these days. It used to be that the way to get something good made in china was to have in-country representation in Asia, and supervise every step of the process. There are still plenty of pop-up shops making all kinds of hideous stuff, but other manufacturers have realized that they are leaving a lot of money on the table in their "passive manufacturer who does what they are told" role.

The days of finding a good Chinese product and making some bucks by buying in bulk and selling it on eBay are long over.  The days of competing through brand, quality supervision, and better marketing are probably numbered too. It all depends on how much value they see in a market.

[kayadogg]

I operate a mobile lesson/tour/yoga/training business. We're in our 5th year of business (seasonal/part-time) and have steadily seen growth over that time. We do not offer rentals and we do retail but only online. We cover all of Rhode Island but I've been running things from California that past couple of years while I was living out there, so my vision of the industry is skewed. As TallDude pointed out, SoCal is the home of many solid brands in the industry and the sport seems to be thriving there, particularly in Dana Point, where we lived. Now that we're back in RI full-time, it's been interesting to see things from a different angle. The used board market, while greater than it was 3 years ago before we moved, is still lacking and seems to consist of either CCC or a good board that someone paid retail for and now is looking to get at least most of that back.

In terms of customers, we had a lot more interest this year much earlier than years past. Sold lots of gift cards, booked some large parties and group outings months in advance, but now that we're in the height of summer, things have slowed. At a local race 2 weekends ago, talking to another local kayak/SUP shop and they have seen the same thing. We have a race that we run (Providence Paddle Battle) coming up on Sept. 4th and it will be interesting to see the turn-out this year, the 3rd year we've held it. All of the other New England races we've been to this year have seemed much lower in participation than previous years. Seems that the race scene may have peaked, at least regionally.

In terms of sales, we decided to take a different approach. Being that this is a part-time "hobby" for me and my fiance, we're not looking to sell as many boards as we can. We're friendly with the Infinity crew from living out west and we both ride Infinity race and surf boards so we thought, why not just carry one brand that is aimed at the paddler who knows what they are looking for. We understand we're eliminating the entry-level consumer but we're ok with that. There are plenty of shops around where people can get a great deal on entry-level boards. We like offering a niche brand, especially one that we use and believe in. This approach has worked well for us this summer and it's nice to not have to worry about the SUP ATX dealers and other CCC that are flooding Craigslist. I'll also admit that it's been tough getting adjusted to such a lame Craigslist world back here in New England after living in ground zero of Craigslist SUP deals but it's been nice to stick with the same boards for 6 months at a time instead of 6 weeks (or 6 days!).

It's nice seeing shops like Blue Planet, and others, thriving, or at least experiencing continued growth. I have definitely seen more boards on cars this summer and generally more people in the water, so I would agree that the sport is without a doubt still growing.

[Admin]

The days of finding a good Chinese product and making some bucks by buying in bulk and selling it on eBay are long over.  The days of competing through brand, quality supervision, and better marketing are probably numbered too. It all depends on how much value they see in a market.

You see a future of factory direct sales only?

[PonoBill]

I see the Chinese learning to market into the USA. It's not rocket surgery. As they become more sophisticated about how to do it, their focus on higher-end, branded product with a reputation at stake will change the quality and product range. Yeah, Walmart won't go out of business anytime soon. but cheap won't be the only focus. Brand and reputation can be worth a 100 percent premium--or more. Does anyone think the Chinese will forego that?

True for all goods.

[Admin]

It is a wild time for brands, producers, retail, etc.  It isn't just a marketing hurdle, though.  Foreign producers (not limited to China) who are coming direct to market are struggling with all facets of running a business remotely.  Their success ultimately comes down to the business basics of their remote operation.  The margin advantage they should have is often squandered.  If they are teaming up with a local group to manage operations, their success becomes tied to the quality of that team.  Tying in to local talent such as shapers and personalities (in SUP) has more often than not lowered the perception of the talent rather than raising the brand.  But, there are exceptions and this is now and it will all but certainly change.

Of course, all of these efforts, whether successful or not, take their nibble. 

It would be interesting to know the true $ per entry for new buyers into the sport at this point.  My guess is that it is nowhere near $2K.  I would be interested to hear all of our guesses there (guesses because no one knows). 

[TallDude]

A close friend of mine has two surf / sup shops locally. I drew the plans for his first retail space. Initially, he was looking to China to build some all around boards, while carrying other sup brands. His family has a deep history in surfboard glassing. At one point he was trying to share a container from China with someone he new that was doing the same thing. I did a few prototypes with him but the China connection ended up being paddles only. That worked out well. The boards were a different story. He realized that for him to control his inventory, and the specific wants and desires of more advanced group of paddlers, he had to make his own custom boards.
He opened a glass shop and hired well known local shapers to shape for him. The glass shop has expanded and is glassing for other companies as well. He's very creative with color and every board except for his clear glass sanded finish boards, are unique. I don't think I've seen him do a brushed carbon look on any board. His shop sells a mix of skateboards, surf, surf sup, and race boards. Being able to build what you need in house to maintain stock, as well as being part of the surf fabric is what keeps his shop and other local shops like Infinity going strong. I'm sure other sup shops that are doing well are taking a similar approach.

[Dwight (DW)]

You see a future of factory direct sales only?

If I were king of the world...it would go like this...

We've seen multiple kitesurfing brands go factory direct to the consumer and fail. There always seems to be some new direct kite brand popping up.

What I think they are doing wrong, is it should be factory direct to retailers only. Eliminate the distributors and the margins they add. They are not needed in the modern world. Shipping direct from China at $30 per kite is better than adding hundreds $$$ of distributor margin for getting a kite to the retailers door only a few days quicker.

For SUP, you have to wonder when someone will solve the shipping issues from China. Even if you do pay airfreight direct, it's still cheaper than the distributor margin added to retail.

I'm shocked kite distributors still exist. Kites are easy to ship.

[lucabrasi]

I see the Chinese learning to market into the USA. It's not rocket surgery. As they become more sophisticated about how to do it, their focus on higher-end, branded product with a reputation at stake will change the quality and product range. Yeah, Walmart won't go out of business anytime soon. but cheap won't be the only focus. Brand and reputation can be worth a 100 percent premium--or more. Does anyone think the Chinese will forego that?
True for all goods.

This showed up in my inbox today.
I guess this would be part of the learning curve? An example of where they need to become more sophisticated and focus more on the higher end?
I don't have a shop or business that sells such things or anything recreational and haven't inquired about such things so to say....buying in bulk or selling.
It seems I got an email for inflatables along the same line this spring as well. 
A million different reasons or ways I may have gotten such a thing but really have no clue what would have generated it.
I guess just a couple of mouse clicks and a mass mailing is there.

[Wetstuff]

It seems the Orient in general has the willingness to go 'all in' whereas we, in the States, have gotten comfortable to where we're hesitant to take a pay cut and expose ourselves to failure.  The company that sent L-B the email has 2 CNC cutters and 30 presses to make a variety of paddles - up to/including sweep oars for rowing.  I think I saw they had the ability of ship about 3,500 paddles a month. (don't quote this) 

Everyone wants to do something they love. (especially if it's tinged with the glamor of a 'Growth Sport') and picking China they can let other people get their hands dirty, pay meagre wages, pollute and expose capital to markets that may saturate quickly as the novelty wanes.

From what I see, China makes it perhaps too easy to come up with a logo, buy a big van and have a 'Board Company'. I saw same in a town that has 7,500 winter residents ..and perhaps 5-10 SUP retail outlets.

I like the Sunnova, closed loop model: "We design them. We build them." They win or loose on the quality of their products ...and hopefully can remain agile enough to adjust shapes and volume to stay profitable. 

Jim

[surf4food]

Aside from where and how boards are made and distributed; I often think about how exactly the sport should be marketed.  As SUP has long moved away from being a novel way to surf and has since become a legitimate and now mainstream water activity in any of body of water should it be marketed as a surf sport or paddle sport?  Both?  Or neither?  Do people who vacation (or live in or around) in Branson live vicariously through Kelly Slater? Not likely.  Do they simply see SUP as a fun and relaxing way to spend time on the water (as an alternative to a canoe or kayak)?  More likely.  Steve West and Jim Terrell each had some interesting articles in SUP Racer in regards the history and direction of the sport.  Should companies like Starboard, Naish, Riviera etc. be more focused on middle American Joe six pack, or more focused on growing the sport and catering it to people who will do it as a serious activity?  If so, how much will be a paddle sport in all its variances and how much for surfing?  Should they try to find the perfect balance with all aspects and is that even possible?   

[ruralwaters]

It would be interesting to know the true $ per entry for new buyers into the sport at this point.  My guess is that it is nowhere near $2K.  I would be interested to hear all of our guesses there (guesses because no one knows).

New to the sport.  Just spent $3,300 for board, paddle, PFD, leash, board bag, tailgate pad, rail tape, etc.