Snow Sports Industry Intelligence Report

1. Snow Sports Industry Intelligence Report $295 State of the Industry 2001/2002 Prepared by: Julie Lynch Director of Research SnowSports Industries America 8377-B Greensboro Drive McLean, VA 22102 (703) 556-9020

2. Table Of Contents A BRIEF HISTORY OF SNOW SPORTS.. .. .. .. 1 Divergence of Cross Country and Alpine Skiing .. .. 2 Birth of the Ski Industry .. .. .. 3 INTRODUCTION. .. .. .. .. .. 5 2001 DEMOGRAPHIC PROFILE OF SKIERS AND SNOWBOARDERS.. .. 6 Gender of Skiers/Riders -2001 Calendar Year .. .. 7 Percentage of Skiers/Riders by Age Group -2001 Calendar Year 8 Percentage of Skiers/Riders by Income- 2001 Calendar Year .. 9 PROFILE OF ALPINE AND CROSS COUNTRY SKIERS.. .. .. 10 Alpine Skier Participation - 16 Year History .. .. 11 Alpine Skier Participation by Gender .. .. .. 12 Alpine Skier Participation by Age .. .. .. 13 Alpine Skier Participation by Income .. .. .. 14 Alpine Skier Participation by Region .. .. .. 15 Alpine Skier Profile .. .. .. .. 16

3. Table Of Contents Participation by Lifestyle Characteristics .. .. 17 Cross Country Skier Participation- 16 Year History .. .. 18 Cross Country Skier Participation by Gender .. .. 19 Cross Country Skier Participation by Age .. .. 20 Cross Country Skier Participation by Income .. .. 21 Cross Country Skier Participation by Region .. .. 22 Cross Country Skier Profile .. .. .. 23 PROFILE OF SNOWBOARDERS .. .. .. .. 24 Snowboarding Participation- 14 Year History .. .. 25 Snowboarder Participation by Gender .. .. 26 Snowboarder Participation by Age .. .. .. 27 Snowboarder Participation by Income .. .. 28 Snowboarder Participation by Region .. .. .. 29 Snowboarder Profile .. .. .. .. 30 Snowboarding Habits .. .. .. .. 31 Skiing and Snowboarding Cross Over .. .. .. 32 OTHER SNOW SPORTS ACTIVITIES.. .. .. .. 33 Snowshoeing .. .. .. .. 33 Trends in Snow Sports .. .. .. .. 34

4. Table Of Contents CONSUMER SPENDING .. .. .. .. .. 37 Ski/Snowboard Retailers .. .. .. 38 Defining Specialty and Chain Stores .. .. .. 39 Dollars spent by Consumers at Specialty and Chain Stores: 2001-02 40 Dollars spent by Consumers at Specialty and Chain Stores: 2000-01 41 Dollars spent by Consumers at Specialty and Chain Stores: 1999-00 42 Units Sold at Specialty and Chain Stores: 2001-02 .. .. 43 Units Sold at Specialty and Chain Stores: 2000-01 .. .. 44 Units Sold at Specialty and Chain Stores: 1999-00 .. .. 45 Retail Sales: Alpine and Cross Country Equipment .. .. 46 Retail Sales: Snowboard Equipment .. .. .. 47 Retail Sales: Ski/Snowboard Apparel .. .. .. 48 Retail Sales: Accessories .. .. .. 49 Shaped Skis .. .. .. .. 50 Junior Products .. .. .. .. 51 Estimated Number of Buyers which Purchase Winter Sports Products from Manufacturers .. .. .. 52 Sales Reps .. .. .. .. .. 53

5. Table Of Contents Total Equipment Sold at Specialty and Chain Stores: 2001-02 .. 54 Total Apparel Sold at Specialty and Chain Stores: 2001-02 .. 55 Total Apparel Accessories Sold at Specialty and Chain Stores: 2001-02 56 Total Equipment Accessories Sold at Specialty and Chain Stores: 2001-02.. 57 Average Price Paid by Consumers at Specialty Stores .. 58 Average Price Paid by Consumers at Chain Stores .. 59 Suppliers or Manufacturers .. .. .. 60 RESORT AREAS .. .. .. .. .. 61 Resort Skier Visits .. .. .. .. 62 Skier Visits .. .. .. .. 63 Snowboarder Resort Area Visits .. .. 64 Top Five States in Terms of Skier Visits .. 65 Historical Regional Skier Visits .. .. 66 Average Number of Resort Lessons .. .. .. 67 Average Adult Weekend Lift Ticket Price .. .. 68 Average Number of Season Passes Sold Per Ski Area in Each Region 69 SNOW SPORTS RELATED WEB SITES.. .. .. .. 70 CONCLUSION.. .. .. .. .. .. 71 BIBLIOGRAPHY.. .. .. .. .. 72

6. The snow sports industry is comprised of many facets such as manufacturing, retailing, resort development and tourism that make gathering of data a difficult process. In an effort to keep the snow sports industry professional informed, this report is updated annually before the start of each snow sport season. The information in this report is gathered from many sources and compiled by SIA as an overview of the snow sports industry. This report is provided in a PowerPoint format so the reader can use these slides for their own presentations. Special thanks to NSAA, NSGA, and Leisure Trends for providing research material for this report. The information contained in this report is the property of SnowSports Industries America (SIA). It cannot be reproduced or extracted in whole or in part in any way without the prior written permission of SnowSports Industries America.

7. Who is SIA? SIA (SnowSports Industries America) is the national, nonprofit, member-owned trade association of competing snow sports companies. Working together, our members promote and develop snow sports through a national trade show, market development programs and other special events. Membership in SIA is open to product manufacturers, distributors or suppliers that are involved in the snow sports industry and meet specific membership requirements. SIA’s membership base averages approximately 750 snow sports companies. For those businesses that provide services to companies in the snow sports industry (i.e., raw material and fabric suppliers, photographers, financial institutions, publications, Internet/Web designers and public relations consulting firms etc.) there is a limited membership available. Call SIA (703)-556-9020 for more information about membership.

8. 1 A BRIEF HISTORY OF SNOW SPORTS Skiing, the winter form of recreation as we know it today, is a relatively modern invention. But it actually began in response to the need for people in cold snowy climates to have some means of transportation during the winter. The word “ski” has a Northern European linguistic root, describing a splinter cut from a log. It also became the Scandinavian term for shoe and was pronounced “shee”. It is known that skis called “hotling skis” were used by prehistoric inhabitants of Scandinavia since remnants of their skis have been found in peat bogs that archaeologists say are close to 5000 years old. Rock carvings of skiers have been found in northern Norway that date back to 2000 B.C., supporting the theory that skiing originated in the Stone Age. The first recorded reference to skiing activity did not come until 900 A.D. when a man named Snoore, a writer of sagas, described Vikings as “good skiers”. For the next 300 years, skis served as a means for simple transportation, for herding reindeer and hunting. Skiing technique was cross country in nature and equipment was primitive. Regular winter clothing was worn with a soft-leather mukluk type of boot to keep the feet warm. Skis were made of wood with straps of bark, straw or leather fastened through vertical holes to harness the foot to each ski. Other skis of that period were long pieces of wood hollowed out like canoes with a raised platform. Ski poles as we know them were not used. Rather, skiers carried one long stick for balance and braking.

9. 2 Divergence of Cross Country and Alpine Skiing In the years between 1300 and 1800 the soldiers of Norway, Sweden, Russia and Finland put on skis during the winter months for military missions. The Norwegians had over 1,500 ski troops by the year 1776 and had written the first ski instruction book. In 1767 the first military ski competition was held in Norway. The meet consisted of four events: shooting while skiing at full speed down a hill; skiing through a deep wooded section; skiing down steep hills without poles; and a cross-country run with a pack and rifle. This was the first formal separation of alpine and cross country skiing. In 1820, the first advertisements for skis appeared in newspapers in Oslo, and the first ski dealers were in operation. But it was not until the middle of 1800s that skiing began to take hold as a sport. In 1840 Sondre Norheim, in his book The Story of Skiing, discovered the possibility of landing from a jump not on flat ground. Hence, the ski jump was invented. At about the same time, a skier from Laplands won a cross country race by using two shorter poles in each hand instead of one, long pole. This was the transition from skiing for utility to skiing for pleasure. By the end of the 19th century, skiing had spread throughout Europe and the U.S. Norwegian immigrants brought skis into the U.S. that were 12 feet long and soon organized ski races in the Sierra Nevada. The first ski club was formed in 1861 in Norway called the Trysil Shooting and Skiing Club.

10. 3 Birth of the Ski Industry Inventions of the 1930s included the steel edged ski, ski bindings (that could hold the boot securely to the ski) and uphill transportation (rope-tows, chairlifts, bars, etc) which brought skiing into the modern era. It was no longer necessary to be a superior athlete to enjoy the sport. These developments, coupled with the 1932 Winter Olympics at Lake Placid, NY, sparked a new and exciting interest in American skiing. No alpine ski areas existed in 1932 when the Winter Olympics Games came to America for the first time. Nordic events were the only ski events held at Lake Placid. With the installation of a crude rope tow on a hill outside of Woodstock, VT, in 1934, the ski area industry was born. By 1940, the infant ski industry was marked by new ski lift construction from New Hampshire to the far West. Following WWII - and the return of the famed 10th Mountain Division ski troops from the Alps to U.S. ski slopes - the sport of alpine skiing snowballed. By 1955, there were 78 lifts serving ski areas in North America. That figure skyrocketed to over 650 in the next decade, many located in regions not necessarily noted for abundant snowfall or big mountains. Ski areas began popping up in New England, the Midwest and Rocky Mountains. Lodges and resorts were being built to accommodate the large numbers of skiers that flocked to the areas on weekends. Railroads began operating “snow trains” to ski areas. Skiing equipment and warm clothing were in great demand and a new industry was born.

11. 4 Birth of the Ski Industry (Cont.) The impetus behind the dramatic growth in ski facilities was the invention of snowmaking equipment in the mid-1950s, a technological development that not only lengthened the ski season in the snow belt states but made the sport possible in areas where natural snowfall was less than abundant. Machine made snow brought the sport within reach of millions of new skiers in the 1960s because it helped assure snow on the lower hills close to major urban areas. Another parallel development in the 1950s and ‘60s was the advent of mass marketing of the sport to non-skiers, a movement initiated by a Vermont ski area, Mount Snow, in 1954. Before its development, a few big resorts tailored their facilities to the beginner-intermediate skier. Mount Snow installed a huge network of bulldozed trails suitable for the lower-level skier and proved that what had previously been done for only 1,000-2,000 skiers could easily be done for 10,000 and could bring in more money as a result. Just as resorts were burgeoning throughout North America, the equipment kept pace. Technological advances in ski boots and bindings design made alpine and cross country skiing more accessible to the outdoors-oriented, recreational participant. The first modern revolution in skis occurred in the mid-1960s when Howard Head developed the metal ski, freeing skis from their wooden roots. Soon after skis were constructed of various materials included more exotic metals and fiberglass. In boots, Lange charted a new course with the buckle boots that replaced laces. Plastic boots replaced leather in the early 1970s. Bindings evolved from simple straps to steel cables to today’s step-in marvels of engineering.

12. 5 INTRODUCTION Because Mother Nature has created a short season (November to April) for the snow sports industry, capital improvements in the form of snowmaking have been necessary to extend the number of days available for the sport. The majority of large ski resorts in the United States are located in remote parts of the country. These resorts have the most consistent snowfall and are less affected by variations in the weather. Over the years, advances in technology have made these large resorts more accessible to more people. Smaller resorts serve populations closer to urban centers and are more dependent upon weather conditions. While resorts existed before World War II, it was after the war that the appeal of skiing exploded with small ski areas popping up around the mountains of New England, California and Colorado. Before long, first-class resorts, comprised of retail stores, accommodations, restaurants and other services, began to appear. Throughout the last decade, the number of alpine and cross country skiers has remained constant, participation rates for alpine skiing have ranged between 7.4 and 12.4 million and for cross country between 2.2 and 5.8 million. The newest phenomenon in snow sports has been snowboarding, the number of snowboarders has exploded in the last 10 years, increasing 342% since the start of the decade from less than 1.2 to 5.3 million riders.

13. 6 2001 DEMOGRAPHIC PROFILE OF SKIERS AND SNOWBOARDERS

14. 7 Gender of Skiers/Riders2001 Calendar Year Cross Country Alpine Snowboard Source: 2002 NSGA Sports Participation Study

15. 8 Percentage of Skiers/Riders by Age Group2001 Calendar Year Alpine Cross Country Snowboard Source: 2002 NSGA Sports Participation Study

16. 9 Percentage of Skiers/Riders by Income2001 Calendar Year Cross Country Alpine Snowboard Source: 2002 NSGA Sports Participation Study

17. 10 PROFILE OF ALPINE AND CROSS COUNTRY SKIERS

18. 11 Alpine Skier Participation(000’s) 7.7 million Americans 7 years or older who skied at least one time in 2001 The alpine ski industry has two ways of measuring participation: active skier participation and number of skier days. The National Sporting Goods Association Sports Participation Study is a broad-based consumer study conducted annually and based on the calendar year. The study attempts to project sports participation in the U.S. for individuals seven years of age or older that have skied or rode at least one time in the last year. Overall, since 1988, participation in alpine skiing has steadily declined. In 1988, participation was at 12.4 million compared to 7.7 million in 2001, a decrease of 40% as demonstrated in the graph above. In the past season the ski industry has seen a slight increase in the number of skiers. Source: 2002 NSGA Sports Participation Study

19. 12 Alpine Skier Participation by Gender For the past 16 years, males have been more likely to alpine ski compared to females. On average, 60% of males alpine ski as compared to 40% of females. Source: 2002 NSGA Sports Participation Study

20. 13 Alpine Skier Participation by Age(000’s) Baby Boomers Gen X Echo Boomers Source: 2002 NSGA Sports Participation Study As shown by the graph, the 2001 season was slightly different than the previous season. Baby Boomers (35+) dropped out of alpine skiing at a rate of 12% while those 11 and under fe1l 17%. A positive change was seen among those 12 to 34 years old, where there was a 16% increase in the number of participants.

21. 14 Alpine Skier Participation by Income As the cost of lift tickets and resort vacations have increased dramatically in the past 15 years so has the income levels of those that participate in alpine skiing. In 1984, over 80% of alpine skiers earned under $50,000/year as compared to 2001 where 73% earned over $50,000/year. Alpine skiers tend to be college educated and have managerial or professional jobs, which correlate with their high household incomes. The income levels of those that participate in alpine skiing have stayed relatively consistent over the past couple of seasons. Source: 2002 NSGA Sports Participation Study

22. 15 Alpine Skier Participation by Region U.S. Census Regions: New England: CT, ME, MA, NH, RI, VT Mid-Atlantic: NJ, NY, PA East South Central: AL, KY, MS, TN East North Central: IL, IN, MI, OH, WI West North Central: IA, KS, MN, MO, NE, ND, SD South Atlantic: DC, DE, FL, GA, MD, NC, SC, VA, WV West South Central: AR, LA, OK, TX Mountain: AZ, CO, ID, MT, NV, NM, UT, WY Pacific: CA, OR, WA Source: 2002 NSGA Sports Participation Study

23. 16 Alpine Skier Profile Average Age Male 31, Female 29 Gender 60% Male 40% Female Percentage that are College graduates 77% Primary occupation Professional/Executive Ave. price paid for skis at specialty shop $315 Ave. price paid for boots at specialty shop $259 Ave. # of days skiing 8.3 (Males 8.9) (Female 7.5) Ave. price paid for weekend lift ticket $44.36 Percentage that use the Internet 75% Average # of Internet hours per week 14 2002 NSGA Sports Participation Study and 2002 SIA Retail Audit.

24. 17 Participation by Lifestyle Characteristics Lifestyle Characteristic Participation % Index of Participation vs Lifestyle segment Affluent Singles 13.7% 182 Low to mid-income singles 9.6% 119 DINKS* 10.1% 180 Working parents 18.0% 125 Single parents 8.4% 90 Affluent traditional families 22.8% 168 Low to mid-income traditional families 3.1% 31 Affluent empty nesters** 10.9% 92 Low to mid-income empty nesters 2.0% 33 Age 65+ 1.5% 11 This chart shows snow sports participants by their lifestyle characteristics. Participation percent corresponds to the % of on-snow participants by each lifestyle characteristic. For instance, 22.8% of “affluent traditional families” participate in skiing or snowboarding. Therefore, slightly more than 50% of ski participants are made up of families with children under 18, working parents (18.0%), single parents (8.4%), affluent traditional family (22.8%) and low to mid-income traditional family (3.1%). The index of participation vs. lifestyle segment corresponds to the index level of on-snow participants within a lifestyle characteristic. For instance, the “affluent singles” index of 182 is 82 points higher than the average of 100 for the entire US population. On the other hand, the lifestyle segment “Age 65+” for on-snow participants is 11 points, 89 points lower than the average of 100 for the U.S. population. Therefore, affluent singles are more likely to ski/board than the average person. On the other hand, those 65+ are much less likely to participate. * DINKS= Double income no kids **Empty nesters= No children under 18 in household

25. 18 Cross Country Skier Participation(000’s) Source: 2002 NSGA Sports Participation Study 2.3 million Americans age 7 or older said they cross country skied at least once in 2001 Cross country skiing is the earliest form of skiing. Its origins go back to Scandinavia where the majority of skiers trekked across meadows and hills pushing with their poles and gliding gracefully on tracks or through virgin snow. Cross country participation in the United States has been on the decline in the past 12 years, a ski discipline more dependent upon natural snowfall than alpine skiing. At the peak of participation in 1988, 5.8 million Americans said they cross country skied. With the baby boomers generation aging there seems to be a trend toward participating in cross country skiing. During the 2001 calendar year participation stayed flat, mainly due to the lack of snowfall and unseasonably warm weather during the later part of the year.

26. 19 Cross Country Skier Participation by Gender(000’s) Participation by females is highest in cross country skiing as compared to all other snow sports. Just as many females cross country ski as males do. In 2001, it was 50% male and 50% female. Source: 2002 NSGA Sports Participation Study

27. 20 Cross Country Skier Participation by Age(000’s) Growth according to age categories has stayed fairly flat in 2001 among Baby Boomers, 35 to 54 years old. There was a surge in those 18 to 24 that have taken up the sport. This is the group to concentrate on, they will be the future of the sport. Those 55+ that cross country ski has dipped just slightly (-18%) in the past seasons. Source: 2002 NSGA Sports Participation Study

28. 21 Cross Country Skier Participation by Income Even cross country skiing has become a sport for those with high discretionary income and leisure time. In 1984, slightly more than 80% of cross country skiers had a household income under $50,000. However, in the year 2001 almost 70% earned over $50,000. As budgets become tighter among households across the country, we are seeing less participants that earn under $50,000. Source: 2002 NSGA Sports Participation Study

29. 22 Cross Country Skier Participation by Region In general, cross country skiers live where the winters are generally cold and there is natural snowfall. The Northern region of the country contains almost 60% of those that cross country ski, New England (15.5%), Mid-Atlantic (19.1%) and E. North Central (23.4%). Source: 2002 NSGA Sports Participation Study

30. 23 Cross Country Skier Profile Average age Male 36, Female 34 Gender 50% Male, 50% Female Ave. price paid for XC skis at specialty shop $125 Ave. price paid for XC boots at specialty shop $89 Source: 2002 NSGA Sports Participation Study and the 2002 SIA Retail Audit

31. 24 PROFILE OF SNOWBOARDERS

32. 25 Snowboarding Participation(000’s) 5.3 million Americans 7 years or older snowboarded more than once in 2001 DID YOU KNOW? In 1985, only 7% of U.S. resort areas allowed snowboarding. Snowboarding may have started in the early 1960s when ambitious surfers hauled their surfboards up ski slopes for a wintry snow-surfing thrill. According to the 2002 NSGA Sports Participation Study, snowboarding has grown from 1.3 million in 1988 to 5.3 million in 2001, a 308% increase. In the past season participation has surged 23%, although the average number of days individuals snowboarded has decreased from 9.3 in 1999 to 7.2 in 2001. there are however more snowboarders even though they are going less days. Almost a third (30.5%) are considered frequent snowboarders, going 10 or more days this season. * The drop from 1989-1990 and 1996-1997 was most likely due to a sample error not to a participation drop. Source: 2002 NSGA Sports Participation Study

33. 26 Snowboarder Participation by Gender(000’s) Snowboarding is a male dominated sport. The gender difference has stayed consistent from 1990 to present. However, gradually more women are joining the sport. With Kelly Clark winning the gold medal at the 2002 Salt Lake City Olympics in women’s snowboarding we should see more women participating. In addition, female snowboarders tend to be slightly more devoted to the sport than males. Females participated an average of 7.6 days in the 2001 season compared to males, 7.1 days. Source: 2002 NSGA Sports Participation Study

34. 27 Snowboarder Participation by Age(000’s) Echo Boomers Baby Boomers Snowboarders continue to be young, 91% are under the age of 34, with the majority being in the 12 to 17 age category (30.7%). The number of baby boomers participating in snowboarding has grown almost 22% in the 2001 season. In addition, the 2001 season brought a growth of 18% of those that snowboard in the 18 to 24 year old category. A little suprising is the decrease in those that snowboard under the age of 17, this category has declined 17% since 2000. Maybe the 12 to 17 years olds that participate are just getting older. Source: 2002 NSGA Sports Participation Study

35. 28 Snowboarder Participation by Income(000’s) Since the age demographic of snowboarders is younger, the average household income tends to be lower than skiers. However, household incomes of snowboarders continue to climb while 41.5% earn under $50,000 and the majority (58.5%) earn over $50,000. This sport is attracting a more diverse group than alpine skiers. Source: 2002 NSGA Sports Participation Study

36. 29 Snowboarder Participation by Region The Pacific region continues to be the most popular region for snowboarders. This region comprises almost a third of all snowboarders, climbing 16% in the 2001 season. However, the E. South Central and W. South Central regions continue to have the greatest boost in snowboarding participation, 89% and 20%, respectively. In 1996, for the first time, the number of snowboarders throughout the United States surpassed the number of cross country skiers. Source: 2002 NSGA Sports Participation Study

37. 30 Snowboarder Profile Average age Male 20, Female 22 Gender 72% Male, 28% Female Primary occupation Student Percentage with a College Degree 49% Ave. price paid for a snowboard at specialty shop $270 Ave. price paid for snowboard boots at specialty shop $127 Ave. # of days snowboarding 7.2 (Males 7.1) (Female 7.6) Ave. price paid for weekend lift ticket $44.36 Source: 2002 NSGA Sports Participation Study and the 2002 SIA Retail Audit

38. 31 Snowboarder Habits The following information is from the July 2000 Keep On Ridin- National Snowboarder Survey . Surveys were sent to 40,000 consumers which were under 30 years old that took a beginner snowboard lesson or rented equipment during the 1998-99 season at various resorts. When asked why they rented equipment, 80.1% said that they don’t ride enough to purchase. However, they would ride more if tickets were cheaper (54.7%). The majority of riders come to a ski area with a friend (32.7%), family (32.3%) or both (22.3%). Almost 70% went skiing as there first snow sports experience. There are now more adult lessons, women lessons and organized learn-to-ride programs. However, many riders feel that they can teach themselves to ride, with approximately 50% of riders learning to snowboard by “just trying it.”

39. 32 Skiing and Snowboarding Cross Over AlpineCross CountrySnowboarding *Alpine 100% 20.2% 21.9% Cross Country 6.1% 100% 7.0% Snowboard 15.4% 16.2% 100% *How to read the chart (read across)- Of those that alpine ski, 20.2% also cross country ski and 21.9% snowboard.

40. 33 Snowshoeing Even though snowshoes have been in existence for hundreds of years, the activity has recently experienced a resurgence. NSGA estimates about 1,014,000 people experienced snowshoeing in 2000. (Data is collect every other year). The SIA Retail Audit indicates that 133,974 snowshoes were sold in specialty and chain winter sports stores in 2001-02. Industry experts indicate that the growth of the sport is due to the heightened interest in exercise and family-oriented winter activities. Experts are also quick to point out the short learning curve and the low cost to get involved. The average price of snowshoes paid by the consumer at a specialty store during the 2001-02 season was $155 and shoes can be used with any winter boot and normal outerwear. The demographics of snowshoeing participation for the 2000 calendar year are: Gender: Male 59.2% Female 40.8% Income: Under $15,000 7.7% Age: 7 to 11 9.4% $15,000 - $24,999 3.9% 12 to 17 7.6% $25,000 - $34,999 12.8% 18 to 24 5.5% $35,000 - $49,999 24.6% 25 to 34 23.8% $50,000 - $74,999 25.4% 35 to 44 20.4% $75,000 Plus 25.6%45 to 54 17.4% 55 to 64 12.6% 65+ 3.4% OTHER SNOW SPORTS ACTIVITIES Source: 2001 NSGA Sports Participation Study

41. 34 Trends in Snow Sports Snowdecks/Snowskates Considered the “new winter skateboard,” snowdecks/snowskates are becoming one of the fastest growing trends in winter sports. Decks are essentially a snowboard without bindings (or skateboard without wheels) for sliding on snow, rails, tables etc. The snowdeck consists of an upper and lower deck separated by two risers with skateboard like construction on the upper deck and a snowboard-like lower deck. While designed for tricks, this design greatly enhances a rider’s ability to carve turns. Riders can practice tricks they do in the streets on the snow. Soft Shell Apparel Soft shell is an emerging apparel category that currently offers highly breathable garments that are also highly abrasion-resistant and wind-resistant, offer stretch and water repellency and are designed to replace two layers (the inner/insulating and hard sell outer layers of a traditional outdoor-apparel layering system) with one garment. This is the first generation product to replace multiple shells and insulating layers into one soft shell garment. It is a garment with breathabilty, comfort, stretch and one which you can wear closer to your body without restricting movement. Soft boots Following in the wake of snowboard boots, soft boots could be the future of ski boots. The hard plastic of the boot has been sliced off the top of the boot shell and replaced with soft, fabric like flaps of waterproof artificial leather or plastic. The goal was to make boots warmer, more comfortable and much easier to put on and take off. These boots are aimed at the casual skiers- those that don’t ski aggressively enough that they’re willing to struggle with a stiff high performance shell.

42. 35 Ski/Binding Integrated Systems Integration which means a pre-assembled sets of skis, plates and bindings. Twin Tip Skis These type of skis are used for freestyle jumping with flipping and twisting. The ESPN X-Games has help launch this product with the youth movement. Backcountry Boom Each year more skiers, riders and other winter adventure seekers discover the lure of powder snow and head for the backcountry. Helicopter ski companies are booming and ski resorts- especially those built on National Forest Land- have responded by opening entry gates to ungroomed glades and bowls. Part of the boom in snowboarding is driven by backcountry snowboarders who use split boards- short fat climbing skis that lock together to form a snowboard. Women Specific Products More and more manufacturers are seeing the value in making winter sports products geared specifically to women. The new trends have recently been in alpine skis, snowboards and snowshoes. Currently there is a snowboard company devoted to making snowboards for women only. Skiboards Skiboards look like they are constructed for Santa’s elves. They are snow-sliding tools that have elements of both traditional ski and snowboards. They are miniature snowboards, ranging in size from approximately 59 cm to 100 cm, - that strap to traditional ski boots and can be used for learning to ski, carving, cruising runs, floating through powder, skating on flats and catching big air. Fueling the growth of skiboards is its short learning curve. Skiboarding can be picked up in two days or less, partially because balancing on skiboards is as easy as walking. The sensation is similar in ways to skiing and snowboarding, but the independent leg action and toned-down feeling closely resembles in-line skating. Trends in Snow Sports

43. 36 Trends in Snow Sports Snowtubing Snowtubing is becoming a hot trend at ski resorts across the country. Snowtubing is just like tubing down the river except you do it on snow. Currently 43% of resorts offer snowtubing. It is most prevalent at resorts in the Southeast (78%), followed by Northeast (49%) and then the Midwest, Rocky Mountains, and Pacific West (each 31 to 34%). During the 2001/02 season, at resorts that offer snowtubing, the average number of snowtubing visits recorded was 15,478. Snowtubing is a relatively new activity at most resorts. Five percent of resorts offering tubing this season are introducing it for the first time. An additional 11% introduced tubing in 2000-01, 15% in 1999-2000, 25% in 1998-99, 19% in 1997-98, 11% in 1996-97 and 15% in 1995-96 or earlier. In average, resorts estimate that 37% of tubers are age 13 or younger, 36% are 13-20 and 27% are 21 or older.

44. 37 CONSUMER SPENDING

45. 38 Ski/Snowboard Retailers Before 1960, ski shop owners were primarily skiers who wanted to turn their love for skiing into profits. They were few in number and could almost always be found near ski areas. In the 1960s, specialty ski shops began springing up in metropolitan areas all over the country and were successful. Many discount houses, department stores and sporting goods supermarkets jumped on the bandwagon by selling ski products but were quickly disappointed with the results. Many of these outlets lacked the experience, expertise and professionalism required to satisfy the service needs of skiers’ and therefore were unsuccessful in acquiring quality lines. In the 1970s, some suppliers slowly began to expand their distribution beyond the small specialty shops to larger ski retailing operations because of an over supply of merchandise. Accordingly, the number of larger ski retailing operations grew and some of the larger sporting goods chains added ski sections to their stores during the winter months. The movement of ski merchandise is dominated by the specialty ski shop. It is projected that these retailers move approximately 76% of the dollar volume and 63% of units in winter sports equipment, apparel and accessories. In the mix of merchandise sold in the industry, higher-priced items such as ski equipment capture the bulk of the dollars, while less expensive accessories have a larger unit share.

46. 39 Defining Specialty and Chain Stores The SIA Retail Audit defines specialty and chain stores in this manner: Specialty Stores: Higher priced merchandise More technical products Annual average sales per store front: $1.5 million These are stores like Christy’s, Ski Market, Alpine Hut, Kenny’s Double Diamond, Blades Board & Skate, Mesabi Chain Stores: Lower priced merchandise Less technical products These are stores like Garts, Oshmans, TSA, Dunhams, REI, Sports Chalet

47. 40 Dollars Spent by Consumers at Specialty and Chain Stores 2001-2002 Season (August -March) Apparel Equipment Accessories Total Specialty $451,527,225 $663,651,755 $491,215,189 $1,606,394,169 (28%) (41%) (31%) (100%) Chain $211,346,126 $123,785,478 $171,449,206 $506,580,809 (42%) (24%) (34%) (100%) + ______ ______ + ______ + ______ + $662,873,351 $787,437,233 $662,664,395 $2,112,974,979 (31%) (37%) (32%) (100%) Overall, the 2001/02 season fell slightly in dollars sales to $2.1 billion spent by consumers at specialty and chain stores. Overall, sales declined 4.8% in dollars.Specialty stores sales were down 3.8% and chain stores 7.7%.Post 9/11 sales began to turn upward, as it looked like the mountains would become a refuge from the density of the city and a place where people could reflect and find some spiritual and physical nourishment. But it didn’t snow. Equipment sales at chain stores took the biggest hit (-18.8%). It was snowboard equipment that consumers were not buying specifically in its hot bed of Southern California. In addition, accessories sales were slow in both specialty (-8.0%) and chain (-6.7%). But overall, despite the weather, interest in snow sports and therefore sales, held up a lot better than previous seasons when snow never fell. Source: 2001-02 SIA Retail Audit

48. 41 Dollars Spent by Consumers at Specialty and Chain Stores 2000-2001 Season (August -March) Apparel Equipment Accessories Total Specialty $476,978,444 $659,127,545 $534,202,543 $1,670,308,532 (29%) (39%) (32%) (100%) Chain $212,602,506 $152,402,522 $183,726,148 $548,731,176 (39%) (28%) (33%) (100%) + ______ ______ + ______ + ______ + $689,580,950 $811,530,067 $717,928,691 $2,219,039,708 (31%) (37%) (32%) (100%) The 2000/01 season was the third best with $2.2 billion spent by consumers at specialty and chain stores. The best season ever at $2.3 billion was 1999/00. This was due to heavy snowfall in the late winter and early spring. Feb/Mar posted $814 million or 34% of the 1999/00 season’s sales which pushed sales to an all time high as compared to Feb/Mar sales this season which were $490 million. This season was down 4.7% in dollars but up 5.2% in units. The dollar sales downturn was caused almost completely by the average price drop of alpine ski equipment. However, at the end of the 2000/01 season, inventories were at there all-time low. The industry lost sales because of low stock of the best selling items. In most categories there was an 80% or greater sell through. Specialty stores saw a decline of 17% in apparel and 12% in equipment sales; however, a bright spot was accessories sales which gained 6%. Source: 2000- 01 SIA Retail Audit

49. 42 Dollars Spent by Consumers at Specialty and Chain Stores 1999-2000 Season ( August- March) Total Apparel Equipment Accessories $1,804,496,869 Specialty $571,923,757 $742,464,015 $490,109,097 (100%) (32%) (41%) (27%) Chain $200,751,871 $152,861,352 $169,277,625 $522,890,848 (38%) (29%) (33%) (100%) + ______ ______ + ______ + ______ + $772,675,628 $895,325,367 $659,386,722 $2,327,387,717 (33%) (38%) (29%) (100%) The 1999/00 season was the biggest year-to-date for the snow sports industry in terms of dollars spent by consumers at specialty and chain stores. Consumers spent a whopping $2.3 billion or an increase of 4% from the 1998/99 season. Specialty stores saw increases in dollars spent on apparel (9%), equipment (1%) and accessories (12%), while chain stores saw a decline of 29% in equipment sales. Source: 1999-00 SIA Retail Audit

50. 43 Units Sold At Specialty and Chain Stores 2001-2002 Season (August – March) Apparel Equipment Accessories Total 24,465,021 Specialty 3,675,000 3,605,692 17,184,329 (100%) (15%) (15%) (70%) 14,207,968 1,212,110 9,774,755 Chain 3,221,103 (100%) (8%) (69%) (23%) + + ______ + ______ ______ + ______ 38,672,989 6,896,103 4,817,802 26,959,084 (18%) (12%) (70%) (100%) Overall units sales were down 10.3%, both specialty (-9.9%) and chain (-10.9%) saw losses. The accessories category led the way for unit sale losses, both specialty (-12.4%) and chain (-15.6%) saw double digit declines. Equipment sales at chain stores also got hit hard (-12.4%). The only bright spot was seen in apparel at chain stores (+8.4%). Source: 2001-02 SIA Retail Audit