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2004 S N E W S
F I T N E S S
» retailer survey
SNEWS® SURVEYED SPECIALTY FITNESS DEALERS ON THE STATE OF THEIR BUSINESSES AND THEY REVEALED SOME EYE-OPENING INFORMATION.
IN YOUR OPINION, WHO IS THE “BEST” SUPPLIER IN THE BUSINESS?* Precor . . . . . . . . . . . . . . . . . . 19.5% Life Fitness . . . . . . . . . . . . . . 17.5% True Fitness . . . . . . . . . . . . . . 15.5% Vision Fitness. . . . . . . . . . . . . 13.5% SportsArt . . . . . . . . . . . . . . . . . . 6% Nautilus Group . . . . . . . . . . . . . . 4% Pacemaster . . . . . . . . . . . . . . . . . 4% Others receiving votes (in alphabetical order): Bodycraft, Bodyguard, Hoist, Horizon, Impex, Landice, Octane, Theradyne, Trimline, TuffStuff. Being “best” is sometimes in the eye of the beholder—and perhaps dependent on a recent good deed or faux pas. Remember, this is a snapshot of 2003. Last year’s results, which were a snapshot of 2002, had Precor slide in several points behind Life, meaning it wasn’t a happy day in Woodinville. This year, Precor took
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sults are representative of fitness retailers as a whole. Here’s how it works: Retailers were mailed and/or faxed surveys from early April to early May; we followed up with many by phone or email to make sure they’d received the survey and asked again for a response. We guaranteed confidentiality—know that never once have we revealed who participated after more than 20 years of doing similar surveys in the outdoor industry. When we make a promise, we keep it, no matter how large the bribe or how pleading the request. Another important note: SNEWS® only poses write-in questions and does not predispose retailers to any answers by providing a list of choices. Every question asking for names of retailers or best-selling product is fill-in only. The results you’ll read may be both surprising and affirming, and may make you applaud or cringe, or they may prompt you to throw hats in the air or contemplate tossing a few stones our way. Remember, however, we’re just the messengers; no results have been skewed or prejudiced by us. If by chance you missed last year’s results or want to see them again for more comparison than we provide here, go to www.geartrends.com and click on the tab for “The Magazines.” (You’ll need to register as a trade member if you have not.) And if you’re a retailer and weren’t included in this year’s survey, but would like to have your voice heard next year, email us at [email protected] to make sure you get on our survey mailing list now.
a relatively big leap to the top. But the really interesting area of note here is not the fisticuffs over the first couple of places, but rather fourth place Vision, which did a gargantuan Olympic jump from last year’s 7 percent (placing it eighth overall) to nearly doubling that “best” vote and catapulting right in behind three biggies. Also leaping onto the list were Nautilus and Pacemaster (by Aerobics). We find it intriguing indeed that small (Pacemaster) or newer (Vision) companies can duke it out with the likes of True, Precor and Life, and also that a total of 17 companies were named when last year only 10 were. A few comments from the surveys: “Life Fitness, annual innovative products released which keeps our floors fresh and exciting.” “Pacemaster, very quick turnaround, products easy to assemble, easy-to-service, quick to get parts. Good customer service.” “Vision, great support both for sales and for repairs.” Since this is write-in (not check-off), every
company that was named, no matter how many times, deserves a hip-hip-hooray.
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we were pleased with the number of retailers who responded and the outpouring of information. Of course, it was also the first-ever independent survey of retailers (i.e., not done by a supplier or trade show organizer) with the goal to find out without bias what those on the frontlines really think about manufacturers and product, as well as to find out what’s really selling, or not. The survey’s mission is to share that information anonymously to the entire industry as a source of education, enlightenment and, we hope, advancement to improve business and relationships. We asked for straightshooting opinions, and we got them. This year wasn’t any different. In fact, it was even more astounding. We received a whopping 32-percent response rate (compared to last year’s already pretty impressive 25-percent return), representing hundreds of storefronts, from retailers we know represent the cream of the industry and represent every manufacturer, as well as many millions of dollars in sales. While we surveyed all types of retailers—large and tiny, sprawling chains and onestore operations—all around the country, it is important to remember that this survey is by no means truly scientific in its approach. We certainly do our best to get results from different types and sizes of retailers with a good geographic spread and manufacturer representation. And we believe with the random nature of the surveys and our incredible return rate, that the re-
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ast year when SNEWS® rolled out its first survey of fitness retailers,
WHICH SUPPLIER DO YOU CONSIDER THE MOST DIFFICULT TO WORK WITH? Nautilus Group . . . . . . . . . . . . . 24% Declined to answer/Nobody . . . . 20% Life Fitness . . . . . . . . . . . . . . . . 18% Cybex . . . . . . . . . . . . . . . . . . . . 8% Keys . . . . . . . . . . . . . . . . . . . . . 6% Precor . . . . . . . . . . . . . . . . . . . . 6%
Others receiving votes were (in alphabetical order): Body-Solid, Cap Barbell, Diamondback, Icon, Landice, Northern Lights, Trimline, True, York. Last year’s survey called this “worst” supplier, but we realized it wasn’t about best or worst, but who was hard to deal with. Compare the “best,” to the left, with this and note how we said we had so many more companies named » W W W. G E A R T R E N D S . C O M
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WHAT ARE THE THREE OVERALL TOP-SELLING PRODUCT CATEGORIES, BEST SELLER FIRST, OF ALL TYPES OF EQUIPMENT AND ACCESSORIES?
No. 1 Treadmills . . . . . . . . . . . . . . . . . 60% Ellipticals . . . . . . . . . . . . . . . . . 38% No. 2 Ellipticals . . . . . . . . . . . . . . . . . 54% Treadmills . . . . . . . . . . . . . . . . . 39% No. 3 Home gyms . . . . . . . . . . . . . . . . 72% Bikes (all kinds). . . . . . . . . . . 17.5% If you scan down the list, you’ll see that the gap between treadmills and ellipticals is narrowing slightly. Last year, for example, treadmills took the run-away No. 1 with 79 percent, while ellipticals took the run-away No. 2 with 63 percent. Interesting was truly the lack of any other categories vying for a slot in the first two “best-selling” places. Last year, home gyms slid into third in the No. 2 slot with a reasonable showing, but this year? Not even a mention! When it comes to the true battlegrounds of No. 3, however, home gyms have taken control (59 percent last year), and bikes are again making a strong showing, knocking everybody else out of the way. Other category mentions even in the No. 3 slot were so small as to be insignificant. Nevertheless, we found a mention of “balance products” and multi-weight dumbbells (represented by the Nautilus selectorized version) to be what we think is a peek at the road ahead.
WHAT IS YOUR OVERALL FASTESTGROWING PRODUCT CATEGORY?
Ellipticals. . . . . . . . . . . . . . . . 75.5% Home gyms (all kinds). . . . . . . . 12% Ellipticals retained the deciding lead once again as fastest-growing (after nearly a decade, shouldn’t there be another contender?), but it did slip from last year’s smashing lead of 96 percent. We settled on the category of home gyms as the name for the second-place, but named specifically were cable-motion gyms, home gyms and selectorized gyms, all of which seem to be gaining ground. Last year, flexibility/toning was the only other category that got a tiny mention. This year, the other small vote-getters may not be statistically significant, but worth noting: Named were accessories and what was called “alternate strength” such as the Bowflex.
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WHAT ARE YOUR THREE TOP-SELLING CARDIOVASCULAR EQUIPMENT PRODUCT CATEGORIES? No. 1 Treadmills . . . . . . . . . . . . . . . 56.5% Ellipticals. . . . . . . . . . . . . . . . 41.5% No. 2 Ellipticals. . . . . . . . . . . . . . . . 56.5% Treadmills . . . . . . . . . . . . . . . 41.5% No. 3 Bikes (all) . . . . . . . . . . . . . . . 95.5%
Same line-up as last year, but take note of what you can’t see and we’d like to share: Once again, the gap between treads and ellipticals is narrowing. Last year, treadmills took No. 1 with a decisive 80 percent. This year, treads still are top dog, but with only 56.5 percent. In both cases, the rest of the votes went to ellipticals. Same sort of thing happened with second place. Last year, ellipticals nabbed 80 percent (rest to treads). Chasm narrowing. We say this is a wake-up call to be prepared for customers who want to look around at other things. Bikes all got a few votes here and there in the top slots—certainly more than last year and an indication that renewed attention to bikes may be paying off (see our story on the re-emerging bike market on page 16).
WHAT ARE YOUR TOP-SELLING TREADMILL BRANDS?
Vision Fitness. . . . . . . . . . . . . 13.5% Pacemaster. . . . . . . . . . . . . . . 10.5% Life Fitness . . . . . . . . . . . . . . . . 10% Landice. . . . . . . . . . . . . . . . . . . 10% Trimline . . . . . . . . . . . . . . . . . . . 9% Precor . . . . . . . . . . . . . . . . . . . 8.5% True Fitness . . . . . . . . . . . . . . . 8.5% Horizon Fitness . . . . . . . . . . . . . . 7% SportsArt . . . . . . . . . . . . . . . . . 6.5% Others receiving votes (in alphabetical order): Bodyguard, Endurance (Body-Solid), Cybex, Diamondback, Keys, Lifespan (PCE), Nautilus, Proform, Reebok, Schwinn, Spirit, Theradyne, Tunturi. This is yet another huge shake-up! Look at Vision, once again, trouncing into the lead (from last year’s fourth place with 9 percent), taking no hostages, leaving the biggies to struggle a bit. Life Fitness (last year’s leader) slipped to third, while True, second in 2003 dropped dramatically. Pacemaster, on the other hand, just let the battle wage around it, quietly sitting pretty near the top, just like last year. As we said last year, treadmills are still a category to be fought over, and it seems the battles are getting fiercer. Last year we had 18 companies named in some way; this year it was 22, including newcomers like Lifespan and Endurance. And of course no matter who is named “most difficult,” you’ll see their products are still top-sellers. We’ll remind you again, as we noted under “best”: these are write-ins, so any mention, let alone enough to garner a top place, is something to cheer about.
WHAT ARE YOUR TOP-SELLING ELLIPTICAL BRANDS?
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as “best.” Well, we also had 14 companies named as “most difficult” compared to last year’s 12. So here we are, doing better but also doing worse. The sore spot is, of course, Nautilus, which managed to eke onto the “best” list, but still didn’t manage to slide out of the “most difficult” top slot. Some retailers said there has just been too much turmoil there of late. Wrote one: “Disorganized, lousy corporate game plan, sell to anyone. Doesn’t protect its dealers. Quality control issues etc. etc. etc. etc. They provide a two-sided Bowflex poster. What good is a two-sided poster? Need I say more?” But others aren’t immune, even those who also are “best.” One retailer said, simply: “Life Fitness. Arrogant!!!”
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Life Fitness . . . . . . . . . . . . . . 16.5% Vision Fitness . . . . . . . . . . . . . . 15% Precor . . . . . . . . . . . . . . . . . . 10.5% Octane . . . . . . . . . . . . . . . . . . 10.5% SportsArt . . . . . . . . . . . . . . . . . 7.5% Horizon . . . . . . . . . . . . . . . . . . 5.5% True. . . . . . . . . . . . . . . . . . . . . 5.5% Diamondback . . . . . . . . . . . . . . 5.5% Tunturi . . . . . . . . . . . . . . . . . . 5.5% Others receiving votes (in alphabetical order): Cybex, Kettler, Keys, Nautilus, Proform, Schwinn, SciFit, Stamina, Trimline. OK, here goes Vision again, sneaking farther up the ladder in yet another category! Last year’s third-place with
more on next page » * All answers have been rounded to the nearest .5 percent, and since we don’t name every single company name with a percent, the percentages may not total 100%. »FITNESS »SUMMER 2004
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Others receiving votes (in alphabetical order): Bodyguard, Cybex, LeMond, Monark, Precor, Proform, StairMaster. Vision has done it again, not only swiping the lead from Life Fitness, but walloping the entire category with a solid one-two. Granted, Life only dropped 1 percentage point, but that didn’t stop Vision from stomping over it on the way to the lead. Another shining supplier here is SportsArt, which also leapt from sixth and only 6 percent last year to third with nearly 50 percent more. Seems those new upright and recumbents it brought to the market a year or so ago might be turning some heads. Schwinn and Diamondback seem to have the lock on “price-value” items, though. One other item that may be something to mull over: This is the first time that several retailers actually named indoor cycles specifically and not just a regular upright or recumbent (which by the way are taking the bike market by storm). We have noted in our calculations that Horizon has fallen a teeny percentage or two consistently. Our feeling is, it’s because the small company is spreading its wings and spending a larger percentage of its time focusing on its customer Sears, as well as special product for sporting goods dealers.
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WHAT ARE YOUR THREE TOP-SELLING STRENGTH-TRAINING EQUIPMENT PRODUCT CATEGORIES?
No. 1 Home gyms . . . . . . . . . . . . . . 86.5% Smith . . . . . . . . . . . . . . . . . . . . . 7% No. 2 Plates/bars/bells . . . . . . . . . . . . 30% Smith . . . . . . . . . . . . . . . . . . . . 25% Home gyms . . . . . . . . . . . . . . . . 20% Benches . . . . . . . . . . . . . . . . . . 20% No. 3 Plates/bars/bells . . . . . . . . . . . . 44% Benches . . . . . . . . . . . . . . . . . 32.5% Smith. . . . . . . . . . . . . . . . . . . 23.5% Got a few changes rolling into the strength world, it seems. Home gyms are still going like gangbusters as a No. 1 best seller. But Smith systems of all kinds showed up in second place with no significant sighting of last year’s benches and plates/bars/bells in runner-up slots for No. 1 best seller. THEN what do we see pushing home gyms out of the top slot as No. 2 best seller but—yes, you guessed it—plates/bars/bells. Smith systems, cages and such things aren’t just for grunting musclehead iron-chompers anymore and—with the right education about how they are used—really can be a great addition to a home gym or even nearly a home gym in itself. Still, in these cases it can be quite a bit about what the salesperson likes enough to sell well. Also, stay on your toes here, as multi-weight dumbbells show up AGAIN. In fact, they are named in a small way as a No. 1, No. 2 AND No. 3 best seller. For our figures, we calculated them into the category of plates/bars/bells, but they did garner their own mention.
WHAT ARE YOUR TOP-SELLING HOME GYM BRANDS?
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Vision Fitness . . . . . . . . . . . . . . 25% Life Fitness . . . . . . . . . . . . . . . . 21% SportsArt . . . . . . . . . . . . . . . . . 8.5% Schwinn . . . . . . . . . . . . . . . . . . 8.5% Diamondback . . . . . . . . . . . . . . . 8% True Fitness . . . . . . . . . . . . . . . . 6% Nautilus. . . . . . . . . . . . . . . . . . 4.5% Horizon. . . . . . . . . . . . . . . . . . . . 4%
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Parabody . . . . . . . . . . . . . . . . 14.5% Hoist . . . . . . . . . . . . . . . . . . . 11.5% Precor . . . . . . . . . . . . . . . . . . 11.5% Vectra . . . . . . . . . . . . . . . . . . 11.5% Nautilus . . . . . . . . . . . . . . . . . . . 9% TuffStuff . . . . . . . . . . . . . . . . . 8.5% Bodycraft . . . . . . . . . . . . . . . . . 8.5% Body-Solid . . . . . . . . . . . . . . . . 7.5% Others receiving votes (in alphabetical order): Bowflex, Cybex, Keys, Marcy, Northern Lights, Powertec, ProSpot, True, Universal, Weider.
Life Fitness retail strength brand, Parabody, still comes through for the company, maintaining its pole position among home gym brands that it claimed last year, albeit in a tie with TuffStuff. TuffStuff, however, sinks to nearly half where it was, while Vectra charges ahead. With the home gym category still dominating and growing, we think there will still be quite a bit of shifting as companies grow or add additional features that make it easier for consumers to know what to do with their gyms. This is the first time anywhere that Bowflex also garnered some votes and attention on its own. We decided to name it separately from its parent Nautilus since it finds a different market and is a different brand. Of course, its naming may simply have more to do with the fact that it’s now sold at retail and not just direct-to-consumer.
WHAT ARE YOUR TOP-SELLING FREE-WEIGHT EQUIPMENT BRANDS?
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WHAT ARE YOUR TOP-SELLING STATIONARY BIKE BRANDS?
STRENGTH-TRAINING
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12 percent just wasn’t good enough, eh? And here it is, breathing down the neck of Life Fitness, which nonetheless still has its lead. Precor has hung in at about the same percent level as last year, even moving up a slot. But there’s newbie Octane tied with it as a top-seller, increasing its vote share as best seller by more than 150 percent. Now that’s something to take to the bank. Heck, Octane hasn’t even been a formal exhibitor at a show yet (although it will be at the August 2004 Health & Fitness Business show). As we said last year, the elliptical ground is still one where a battle is being fought constantly—and likely will be until another New Thing takes over. Again, the total number of companies simply being named in some way went up—from 15 to 18.
Parabody . . . . . . . . . . . . . . . . 17.5% Nautilus . . . . . . . . . . . . . . . . . . 15% TuffStuff . . . . . . . . . . . . . . . . . . 12% Body-Solid . . . . . . . . . . . . . . . . 11% Powerblock . . . . . . . . . . . . . . . . . 7% Hoist . . . . . . . . . . . . . . . . . . . . 6.5% Keys . . . . . . . . . . . . . . . . . . . . . . 5% Cap Barbell . . . . . . . . . . . . . . . . . 5% Others receiving votes (in alphabetical order): Bodycraft, Cybex, Gold’s, Hampton, Linex, Marcy, Northern Lights, Paramount, Powertec, ProSpot, TKO, USA/Troy, York. Look at that lineup, and we don’t just mean the top eight but all the others too. That’s 21 companies compared to a mere 15 named in last year’s survey. The researchers have been talking about more interest in free weight all the way around, and it’s finally gotten to retail. This definitely bears it out because with more consumer interest, more suppliers will be out there too with more product. Parabody hangs onto its lead from last year, but does sink a bit in numbers. But the limelight here goes to Nautilus, which didn’t even appear on the top list last year, but now jumps jack-rabbit up to second with a huge 15 percent of survey respondents voting it as a top-seller. That’s great to see considering the nearly icon status of the name Nautilus in the strength-training market. Hoist also moves onto the list, likely from the power of its Quick-Change multi-weight dumbbell system. It wasn’t even NAMED last year as a top freeweight category contender. Body-Solid, too, more than doubled its ranking.
* All answers have been rounded to the nearest .5 percent, and since we don’t name every single company name with a percent, the percentages may not total 100%. 52
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ACCESSORIES WHAT ARE YOUR TOP-SELLING ACCESSORY CATEGORIES?
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Fit balls . . . . . . . . . . . . . . . . . . 24% Stretch tubes/bands. . . . . . . . . . 15% Mats/flooring . . . . . . . . . . . . . 11.5% Weight attachments . . . . . . . . 11.5% Straps/gloves/belts. . . . . . . . . . 8.5% Heart rate monitors . . . . . . . . . . . 6% Medicine balls . . . . . . . . . . . . . 4.5% But, oh, the list of what sells doesn’t stop with these seven categories, but rather included just about anything you could dream of, including stretching equipment, pedometers, hand/ankle weights, body-fat analyzers/scales, jump ropes, chin-up bars, reading racks, balance boards, inversion tables, yoga kits/mats, wall charts, weighted bars and watches. Frankly, it’s more about what the retailer sells since they can sell any of the above if the staff believes in it.
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WHAT ARE YOUR TOP-SELLING ACCESSORY BRANDS?
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TKO . . . . . . . . . . . . . . . . . . . . . 17% Spri . . . . . . . . . . . . . . . . . . . . 12.5% Cap. . . . . . . . . . . . . . . . . . . . . . . 9% Harbinger . . . . . . . . . . . . . . . . . . 9% Polar. . . . . . . . . . . . . . . . . . . . . . 7% Schiek . . . . . . . . . . . . . . . . . . . 5.5% Nautilus/Schwinn . . . . . . . . . . . 5.5% Theraband . . . . . . . . . . . . . . . . 4.5% Keys . . . . . . . . . . . . . . . . . . . . 4.5% Gymnic . . . . . . . . . . . . . . . . . . 3.5%
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Others receiving votes (in alphabetical order): Aeromats, All Pro, Dynaband, Everlast, Fitter, Fitness Wholesale, Flex, Hampton, Humane, Mio, OPTP, Raw Power, RB Products, Savage Fitness, Stamina, StretchCordz, Supermats, USA/Troy, Valeo. Yes, indeed, this list has grown significantly in numbers compared to last year. In 2003, 19 companies were named at some level; this year, 29 or nearly 50 percent more earned a mention as a top-seller. Why? Hard to say, except that the accessory market IS growing, and more and more companies are jumping in to nab their part. And with more people outfitting mini-gyms in their home, more mat and flooring companies have decided their market isn’t only clubs. In terms of who is where, TKO still takes the lead hands-down as the No. 1 top-seller. Spri is still in second, but has gained a higher percent of retailers naming it, and Cap decided it was
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GENERAL STORE &
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CUSTOMER INFORMATION WHAT IS THE AVERAGE AGE OF YOUR CUSTOMER?
18-24 . . . . . . . . . . . . . . . . . . . . . 0% 25-34 . . . . . . . . . . . . . . . . . . . 3.6% 35-44 . . . . . . . . . . . . . . . . . . . . 49% 45-54 . . . . . . . . . . . . . . . . . . 45.4% 55-64 . . . . . . . . . . . . . . . . . . . . . 2% 65+ . . . . . . . . . . . . . . . . . . . . . . 0% Not much has changed here, with most retailers still focusing on the aging Boomer. Much work is still at-hand, however, if fitness as a retail market is to sustain itself as the X and Y Generations begin to move along. The industry needs to think of better ways to attract a younger consumer, without losing the older consumer. Where are the younger folks buying their gear? Our story in FitBiz from March 2004 (go to www.geartrends.com to download a copy if you missed it) shows that more are wandering into sporting goods than specialty. Of course, it’s not as if most retailers poll on age; they are going on gut, which may mean that some of those they classed as 45-54 are really young-looking 55+ folks.
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HOW DO YOUR SALES YTD COMPARE TO LAST YEAR? PERCENTAGE CHANGE? Up . . . . 78% (avg. increase: 16.5%) Down . . . 3% (avg. decrease: not given) Even. . . 19%
Now, let’s be honest here folks, we know sales were overall a bit better for many in 2003 than in 2002, but this much better? More than three-quarters posted increases? We are skeptical, highly skeptical. Of course, the very few who noted they WERE down didn’t name the number. At least we had a few claim “even,” even though they may have had to struggle with the pen to keep it from checking “up.” So when you read this, we’d suggest filtering it highly.
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WHAT PERCENTAGE OF YOUR 2003 TOTAL COMPANY SALES VOLUME WAS: Fitness equipment . . . . . . . . . . . 94% Fitness accessories . . . . . . . . . . . 6% Other footwear/apparel . . . . . . . . 0%
Every single retailer we polled said the store sells accessories, but the percentage is what shifts and shakes. Some barely manage 2 percent, while some stake out a claim of 15 percent to 20 percent of sales in accessories. We call that a great way to add a little beef to sales. The few that do name accessory sales figures of 10 percent, 15 percent or 20 percent know what those bits can mean to revenues. The others just don’t seem to think the little stuff is worth the attention (see our story on Accessories, page 24) and barely eke 2 percent or 3 percent. How can any retailer close a sale for $1,000 or $2,000 and not manage to get the customer to bite on books, additional handles or weight attachments, gloves, balance boards or all that other stuff that’s oh-so-possible? One retailer mentioned that he actually made about a third of his sales in nutritional products! Hmm, seems there is a market there that some might be missing. We aren’t talking about gimmicky pills and potions, of course, but just the legitimate antioxidants, vitamin B or glucosamine stuff.
BELLY-BUTTON PONDERING As always, we ask a couple of thought-provokers to gather extra insight: How important are trade shows to you, your staff and your business? Has that changed? These answers were rather unexpectedly all over the board. We got it all, from “yes,” “yes, VERY,” “not at all,” to “only moderately.” What we read between the lines, though, is that if someone looks at a trade show as STRICTLY a place to see new product, that person leaned toward the “not very important” school. If he or she had a broader interpretation of a show as a place to meet, network, get education and take staff as a treat, the person still supported shows. Of course, the larger dealers get the boondoggle of special dealer fly-ins (love ’em and hate ’em, it seems).
A FEW COMMENT EXCERPTS:
» They are becoming less and less important. Info is being distributed so much more efficiently these days, that it is hard to justify the expense. Manufacturers are also providing dealer fly-ins and rep visits that teach us a great deal. » Very important ONCE a year. August is the best time to see new products and discuss plans for fall and winter primetime sales. Great opportunity to meet face-to-face with current and prospective new suppliers. » Very important. We rely on them to get face time with our manufacturers all in a short amount of time so we can have the rest of
the year to focus on running our business. We also like to bring out staff as a treat. » Not important really, but fun and every once in a while you discover a new innovative item. » Very important. Everyone in the industry needs a place to gather together once a year at the right time of year: relationship-building, renewal, education, networking are all important benefits of these trade shows. What do you want to tell manufacturers about what they could do better to help you and the industry be more successful? As expected, we got an earful here. One theme that surfaced over and over was the desire for advertising. Survey respondents said they wish that the industry as a whole would do national advertising AND launch some collective campaign that will simply drive the inactive public to fitness and thus to the industry and stores. Another wish of course came straight from the pocketbook—margins, spiffs, margins and more margins. Did we mention they asked for better margins?
First, a few brief comments:
» Increase margins. » Better customer service. » Advertise more. » Margins. They must go up. » Collective TV advertisement. » Be different, not just cheaper. » Build national brand awareness. » No selling on Internet. » Timely delivery. » Innovate, don’t imitate. Other comments to stoke your fires:
» Either leave prices off their websites or list prices at a higher margin, thus giving dealers a chance to earn a decent living and have negotiating room.
» After many many years of being in the “specialty exercise” field, we have the same request. Help drive more customers through our doors and don’t sell the brands we sell to big-box and large discount chains. We survive on product knowledge and service to the customers: we die on price alone.
» They could try and promote healthy lifestyles to the 90 percent of the population that is content to sit on their behinds, get fat and die.
» They should grow up and get some business acumen. » To become a free GearTrends trade member or to give us feedback, go to GearTrends.com.
* All answers have been rounded to the nearest .5 percent, and since we don’t name every single company name with a percent, the percentages may not total 100%. 54
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Rethink, Reshape, Redefine
Rethink, Reshape, Redefine. At SportsArt these are more than just words - they are, in fact, the corporate philosophy. How else can you explain SportsArt's ability to have class leading products in all 3 major cardio categories? The 3110 treadmill, called one of the strongest treadmills in it's price range by the Treadmill Doctor (www.treadmilldoctor.com), has more features, performance, and value than any competing product. The E82 elliptical is the latest, and greatest, in SportsArt's
line up of patented, adjustable stride length ellipticals. One look will tell you that the C53r recumbent is a radical rethinking (some say re-invention) of the entire fitness cycle category. Top it all off with great sales and marketing support and you could say that SportsArt is redefining what you should expect from a vendor. For more information visit www.sportsartamerica.com or call 800-709-1400.
800.709.1400 • www.sportsartamerica.com
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SNEWS® SURVEYED SPECIALTY FITNESS DEALERS ON THE STATE OF THEIR BUSINESSES AND THEY REVEALED SOME EYE-OPENING INFORMATION.
IN YOUR OPINION, WHO IS THE “BEST” SUPPLIER IN THE BUSINESS?* Precor . . . . . . . . . . . . . . . . . . 19.5% Life Fitness . . . . . . . . . . . . . . 17.5% True Fitness . . . . . . . . . . . . . . 15.5% Vision Fitness. . . . . . . . . . . . . 13.5% SportsArt . . . . . . . . . . . . . . . . . . 6% Nautilus Group . . . . . . . . . . . . . . 4% Pacemaster . . . . . . . . . . . . . . . . . 4% Others receiving votes (in alphabetical order): Bodycraft, Bodyguard, Hoist, Horizon, Impex, Landice, Octane, Theradyne, Trimline, TuffStuff. Being “best” is sometimes in the eye of the beholder—and perhaps dependent on a recent good deed or faux pas. Remember, this is a snapshot of 2003. Last year’s results, which were a snapshot of 2002, had Precor slide in several points behind Life, meaning it wasn’t a happy day in Woodinville. This year, Precor took
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sults are representative of fitness retailers as a whole. Here’s how it works: Retailers were mailed and/or faxed surveys from early April to early May; we followed up with many by phone or email to make sure they’d received the survey and asked again for a response. We guaranteed confidentiality—know that never once have we revealed who participated after more than 20 years of doing similar surveys in the outdoor industry. When we make a promise, we keep it, no matter how large the bribe or how pleading the request. Another important note: SNEWS® only poses write-in questions and does not predispose retailers to any answers by providing a list of choices. Every question asking for names of retailers or best-selling product is fill-in only. The results you’ll read may be both surprising and affirming, and may make you applaud or cringe, or they may prompt you to throw hats in the air or contemplate tossing a few stones our way. Remember, however, we’re just the messengers; no results have been skewed or prejudiced by us. If by chance you missed last year’s results or want to see them again for more comparison than we provide here, go to www.geartrends.com and click on the tab for “The Magazines.” (You’ll need to register as a trade member if you have not.) And if you’re a retailer and weren’t included in this year’s survey, but would like to have your voice heard next year, email us at [email protected] to make sure you get on our survey mailing list now.
a relatively big leap to the top. But the really interesting area of note here is not the fisticuffs over the first couple of places, but rather fourth place Vision, which did a gargantuan Olympic jump from last year’s 7 percent (placing it eighth overall) to nearly doubling that “best” vote and catapulting right in behind three biggies. Also leaping onto the list were Nautilus and Pacemaster (by Aerobics). We find it intriguing indeed that small (Pacemaster) or newer (Vision) companies can duke it out with the likes of True, Precor and Life, and also that a total of 17 companies were named when last year only 10 were. A few comments from the surveys: “Life Fitness, annual innovative products released which keeps our floors fresh and exciting.” “Pacemaster, very quick turnaround, products easy to assemble, easy-to-service, quick to get parts. Good customer service.” “Vision, great support both for sales and for repairs.” Since this is write-in (not check-off), every
company that was named, no matter how many times, deserves a hip-hip-hooray.
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we were pleased with the number of retailers who responded and the outpouring of information. Of course, it was also the first-ever independent survey of retailers (i.e., not done by a supplier or trade show organizer) with the goal to find out without bias what those on the frontlines really think about manufacturers and product, as well as to find out what’s really selling, or not. The survey’s mission is to share that information anonymously to the entire industry as a source of education, enlightenment and, we hope, advancement to improve business and relationships. We asked for straightshooting opinions, and we got them. This year wasn’t any different. In fact, it was even more astounding. We received a whopping 32-percent response rate (compared to last year’s already pretty impressive 25-percent return), representing hundreds of storefronts, from retailers we know represent the cream of the industry and represent every manufacturer, as well as many millions of dollars in sales. While we surveyed all types of retailers—large and tiny, sprawling chains and onestore operations—all around the country, it is important to remember that this survey is by no means truly scientific in its approach. We certainly do our best to get results from different types and sizes of retailers with a good geographic spread and manufacturer representation. And we believe with the random nature of the surveys and our incredible return rate, that the re-
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ast year when SNEWS® rolled out its first survey of fitness retailers,
WHICH SUPPLIER DO YOU CONSIDER THE MOST DIFFICULT TO WORK WITH? Nautilus Group . . . . . . . . . . . . . 24% Declined to answer/Nobody . . . . 20% Life Fitness . . . . . . . . . . . . . . . . 18% Cybex . . . . . . . . . . . . . . . . . . . . 8% Keys . . . . . . . . . . . . . . . . . . . . . 6% Precor . . . . . . . . . . . . . . . . . . . . 6%
Others receiving votes were (in alphabetical order): Body-Solid, Cap Barbell, Diamondback, Icon, Landice, Northern Lights, Trimline, True, York. Last year’s survey called this “worst” supplier, but we realized it wasn’t about best or worst, but who was hard to deal with. Compare the “best,” to the left, with this and note how we said we had so many more companies named » W W W. G E A R T R E N D S . C O M
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WHAT ARE THE THREE OVERALL TOP-SELLING PRODUCT CATEGORIES, BEST SELLER FIRST, OF ALL TYPES OF EQUIPMENT AND ACCESSORIES?
No. 1 Treadmills . . . . . . . . . . . . . . . . . 60% Ellipticals . . . . . . . . . . . . . . . . . 38% No. 2 Ellipticals . . . . . . . . . . . . . . . . . 54% Treadmills . . . . . . . . . . . . . . . . . 39% No. 3 Home gyms . . . . . . . . . . . . . . . . 72% Bikes (all kinds). . . . . . . . . . . 17.5% If you scan down the list, you’ll see that the gap between treadmills and ellipticals is narrowing slightly. Last year, for example, treadmills took the run-away No. 1 with 79 percent, while ellipticals took the run-away No. 2 with 63 percent. Interesting was truly the lack of any other categories vying for a slot in the first two “best-selling” places. Last year, home gyms slid into third in the No. 2 slot with a reasonable showing, but this year? Not even a mention! When it comes to the true battlegrounds of No. 3, however, home gyms have taken control (59 percent last year), and bikes are again making a strong showing, knocking everybody else out of the way. Other category mentions even in the No. 3 slot were so small as to be insignificant. Nevertheless, we found a mention of “balance products” and multi-weight dumbbells (represented by the Nautilus selectorized version) to be what we think is a peek at the road ahead.
WHAT IS YOUR OVERALL FASTESTGROWING PRODUCT CATEGORY?
Ellipticals. . . . . . . . . . . . . . . . 75.5% Home gyms (all kinds). . . . . . . . 12% Ellipticals retained the deciding lead once again as fastest-growing (after nearly a decade, shouldn’t there be another contender?), but it did slip from last year’s smashing lead of 96 percent. We settled on the category of home gyms as the name for the second-place, but named specifically were cable-motion gyms, home gyms and selectorized gyms, all of which seem to be gaining ground. Last year, flexibility/toning was the only other category that got a tiny mention. This year, the other small vote-getters may not be statistically significant, but worth noting: Named were accessories and what was called “alternate strength” such as the Bowflex.
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WHAT ARE YOUR THREE TOP-SELLING CARDIOVASCULAR EQUIPMENT PRODUCT CATEGORIES? No. 1 Treadmills . . . . . . . . . . . . . . . 56.5% Ellipticals. . . . . . . . . . . . . . . . 41.5% No. 2 Ellipticals. . . . . . . . . . . . . . . . 56.5% Treadmills . . . . . . . . . . . . . . . 41.5% No. 3 Bikes (all) . . . . . . . . . . . . . . . 95.5%
Same line-up as last year, but take note of what you can’t see and we’d like to share: Once again, the gap between treads and ellipticals is narrowing. Last year, treadmills took No. 1 with a decisive 80 percent. This year, treads still are top dog, but with only 56.5 percent. In both cases, the rest of the votes went to ellipticals. Same sort of thing happened with second place. Last year, ellipticals nabbed 80 percent (rest to treads). Chasm narrowing. We say this is a wake-up call to be prepared for customers who want to look around at other things. Bikes all got a few votes here and there in the top slots—certainly more than last year and an indication that renewed attention to bikes may be paying off (see our story on the re-emerging bike market on page 16).
WHAT ARE YOUR TOP-SELLING TREADMILL BRANDS?
Vision Fitness. . . . . . . . . . . . . 13.5% Pacemaster. . . . . . . . . . . . . . . 10.5% Life Fitness . . . . . . . . . . . . . . . . 10% Landice. . . . . . . . . . . . . . . . . . . 10% Trimline . . . . . . . . . . . . . . . . . . . 9% Precor . . . . . . . . . . . . . . . . . . . 8.5% True Fitness . . . . . . . . . . . . . . . 8.5% Horizon Fitness . . . . . . . . . . . . . . 7% SportsArt . . . . . . . . . . . . . . . . . 6.5% Others receiving votes (in alphabetical order): Bodyguard, Endurance (Body-Solid), Cybex, Diamondback, Keys, Lifespan (PCE), Nautilus, Proform, Reebok, Schwinn, Spirit, Theradyne, Tunturi. This is yet another huge shake-up! Look at Vision, once again, trouncing into the lead (from last year’s fourth place with 9 percent), taking no hostages, leaving the biggies to struggle a bit. Life Fitness (last year’s leader) slipped to third, while True, second in 2003 dropped dramatically. Pacemaster, on the other hand, just let the battle wage around it, quietly sitting pretty near the top, just like last year. As we said last year, treadmills are still a category to be fought over, and it seems the battles are getting fiercer. Last year we had 18 companies named in some way; this year it was 22, including newcomers like Lifespan and Endurance. And of course no matter who is named “most difficult,” you’ll see their products are still top-sellers. We’ll remind you again, as we noted under “best”: these are write-ins, so any mention, let alone enough to garner a top place, is something to cheer about.
WHAT ARE YOUR TOP-SELLING ELLIPTICAL BRANDS?
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as “best.” Well, we also had 14 companies named as “most difficult” compared to last year’s 12. So here we are, doing better but also doing worse. The sore spot is, of course, Nautilus, which managed to eke onto the “best” list, but still didn’t manage to slide out of the “most difficult” top slot. Some retailers said there has just been too much turmoil there of late. Wrote one: “Disorganized, lousy corporate game plan, sell to anyone. Doesn’t protect its dealers. Quality control issues etc. etc. etc. etc. They provide a two-sided Bowflex poster. What good is a two-sided poster? Need I say more?” But others aren’t immune, even those who also are “best.” One retailer said, simply: “Life Fitness. Arrogant!!!”
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Life Fitness . . . . . . . . . . . . . . 16.5% Vision Fitness . . . . . . . . . . . . . . 15% Precor . . . . . . . . . . . . . . . . . . 10.5% Octane . . . . . . . . . . . . . . . . . . 10.5% SportsArt . . . . . . . . . . . . . . . . . 7.5% Horizon . . . . . . . . . . . . . . . . . . 5.5% True. . . . . . . . . . . . . . . . . . . . . 5.5% Diamondback . . . . . . . . . . . . . . 5.5% Tunturi . . . . . . . . . . . . . . . . . . 5.5% Others receiving votes (in alphabetical order): Cybex, Kettler, Keys, Nautilus, Proform, Schwinn, SciFit, Stamina, Trimline. OK, here goes Vision again, sneaking farther up the ladder in yet another category! Last year’s third-place with
more on next page » * All answers have been rounded to the nearest .5 percent, and since we don’t name every single company name with a percent, the percentages may not total 100%. »FITNESS »SUMMER 2004
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Others receiving votes (in alphabetical order): Bodyguard, Cybex, LeMond, Monark, Precor, Proform, StairMaster. Vision has done it again, not only swiping the lead from Life Fitness, but walloping the entire category with a solid one-two. Granted, Life only dropped 1 percentage point, but that didn’t stop Vision from stomping over it on the way to the lead. Another shining supplier here is SportsArt, which also leapt from sixth and only 6 percent last year to third with nearly 50 percent more. Seems those new upright and recumbents it brought to the market a year or so ago might be turning some heads. Schwinn and Diamondback seem to have the lock on “price-value” items, though. One other item that may be something to mull over: This is the first time that several retailers actually named indoor cycles specifically and not just a regular upright or recumbent (which by the way are taking the bike market by storm). We have noted in our calculations that Horizon has fallen a teeny percentage or two consistently. Our feeling is, it’s because the small company is spreading its wings and spending a larger percentage of its time focusing on its customer Sears, as well as special product for sporting goods dealers.
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WHAT ARE YOUR THREE TOP-SELLING STRENGTH-TRAINING EQUIPMENT PRODUCT CATEGORIES?
No. 1 Home gyms . . . . . . . . . . . . . . 86.5% Smith . . . . . . . . . . . . . . . . . . . . . 7% No. 2 Plates/bars/bells . . . . . . . . . . . . 30% Smith . . . . . . . . . . . . . . . . . . . . 25% Home gyms . . . . . . . . . . . . . . . . 20% Benches . . . . . . . . . . . . . . . . . . 20% No. 3 Plates/bars/bells . . . . . . . . . . . . 44% Benches . . . . . . . . . . . . . . . . . 32.5% Smith. . . . . . . . . . . . . . . . . . . 23.5% Got a few changes rolling into the strength world, it seems. Home gyms are still going like gangbusters as a No. 1 best seller. But Smith systems of all kinds showed up in second place with no significant sighting of last year’s benches and plates/bars/bells in runner-up slots for No. 1 best seller. THEN what do we see pushing home gyms out of the top slot as No. 2 best seller but—yes, you guessed it—plates/bars/bells. Smith systems, cages and such things aren’t just for grunting musclehead iron-chompers anymore and—with the right education about how they are used—really can be a great addition to a home gym or even nearly a home gym in itself. Still, in these cases it can be quite a bit about what the salesperson likes enough to sell well. Also, stay on your toes here, as multi-weight dumbbells show up AGAIN. In fact, they are named in a small way as a No. 1, No. 2 AND No. 3 best seller. For our figures, we calculated them into the category of plates/bars/bells, but they did garner their own mention.
WHAT ARE YOUR TOP-SELLING HOME GYM BRANDS?
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Vision Fitness . . . . . . . . . . . . . . 25% Life Fitness . . . . . . . . . . . . . . . . 21% SportsArt . . . . . . . . . . . . . . . . . 8.5% Schwinn . . . . . . . . . . . . . . . . . . 8.5% Diamondback . . . . . . . . . . . . . . . 8% True Fitness . . . . . . . . . . . . . . . . 6% Nautilus. . . . . . . . . . . . . . . . . . 4.5% Horizon. . . . . . . . . . . . . . . . . . . . 4%
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Parabody . . . . . . . . . . . . . . . . 14.5% Hoist . . . . . . . . . . . . . . . . . . . 11.5% Precor . . . . . . . . . . . . . . . . . . 11.5% Vectra . . . . . . . . . . . . . . . . . . 11.5% Nautilus . . . . . . . . . . . . . . . . . . . 9% TuffStuff . . . . . . . . . . . . . . . . . 8.5% Bodycraft . . . . . . . . . . . . . . . . . 8.5% Body-Solid . . . . . . . . . . . . . . . . 7.5% Others receiving votes (in alphabetical order): Bowflex, Cybex, Keys, Marcy, Northern Lights, Powertec, ProSpot, True, Universal, Weider.
Life Fitness retail strength brand, Parabody, still comes through for the company, maintaining its pole position among home gym brands that it claimed last year, albeit in a tie with TuffStuff. TuffStuff, however, sinks to nearly half where it was, while Vectra charges ahead. With the home gym category still dominating and growing, we think there will still be quite a bit of shifting as companies grow or add additional features that make it easier for consumers to know what to do with their gyms. This is the first time anywhere that Bowflex also garnered some votes and attention on its own. We decided to name it separately from its parent Nautilus since it finds a different market and is a different brand. Of course, its naming may simply have more to do with the fact that it’s now sold at retail and not just direct-to-consumer.
WHAT ARE YOUR TOP-SELLING FREE-WEIGHT EQUIPMENT BRANDS?
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WHAT ARE YOUR TOP-SELLING STATIONARY BIKE BRANDS?
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12 percent just wasn’t good enough, eh? And here it is, breathing down the neck of Life Fitness, which nonetheless still has its lead. Precor has hung in at about the same percent level as last year, even moving up a slot. But there’s newbie Octane tied with it as a top-seller, increasing its vote share as best seller by more than 150 percent. Now that’s something to take to the bank. Heck, Octane hasn’t even been a formal exhibitor at a show yet (although it will be at the August 2004 Health & Fitness Business show). As we said last year, the elliptical ground is still one where a battle is being fought constantly—and likely will be until another New Thing takes over. Again, the total number of companies simply being named in some way went up—from 15 to 18.
Parabody . . . . . . . . . . . . . . . . 17.5% Nautilus . . . . . . . . . . . . . . . . . . 15% TuffStuff . . . . . . . . . . . . . . . . . . 12% Body-Solid . . . . . . . . . . . . . . . . 11% Powerblock . . . . . . . . . . . . . . . . . 7% Hoist . . . . . . . . . . . . . . . . . . . . 6.5% Keys . . . . . . . . . . . . . . . . . . . . . . 5% Cap Barbell . . . . . . . . . . . . . . . . . 5% Others receiving votes (in alphabetical order): Bodycraft, Cybex, Gold’s, Hampton, Linex, Marcy, Northern Lights, Paramount, Powertec, ProSpot, TKO, USA/Troy, York. Look at that lineup, and we don’t just mean the top eight but all the others too. That’s 21 companies compared to a mere 15 named in last year’s survey. The researchers have been talking about more interest in free weight all the way around, and it’s finally gotten to retail. This definitely bears it out because with more consumer interest, more suppliers will be out there too with more product. Parabody hangs onto its lead from last year, but does sink a bit in numbers. But the limelight here goes to Nautilus, which didn’t even appear on the top list last year, but now jumps jack-rabbit up to second with a huge 15 percent of survey respondents voting it as a top-seller. That’s great to see considering the nearly icon status of the name Nautilus in the strength-training market. Hoist also moves onto the list, likely from the power of its Quick-Change multi-weight dumbbell system. It wasn’t even NAMED last year as a top freeweight category contender. Body-Solid, too, more than doubled its ranking.
* All answers have been rounded to the nearest .5 percent, and since we don’t name every single company name with a percent, the percentages may not total 100%. 52
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ACCESSORIES WHAT ARE YOUR TOP-SELLING ACCESSORY CATEGORIES?
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Sell more equipment. Increase customer satisfaction. Reduce customer wait time.
Fit balls . . . . . . . . . . . . . . . . . . 24% Stretch tubes/bands. . . . . . . . . . 15% Mats/flooring . . . . . . . . . . . . . 11.5% Weight attachments . . . . . . . . 11.5% Straps/gloves/belts. . . . . . . . . . 8.5% Heart rate monitors . . . . . . . . . . . 6% Medicine balls . . . . . . . . . . . . . 4.5% But, oh, the list of what sells doesn’t stop with these seven categories, but rather included just about anything you could dream of, including stretching equipment, pedometers, hand/ankle weights, body-fat analyzers/scales, jump ropes, chin-up bars, reading racks, balance boards, inversion tables, yoga kits/mats, wall charts, weighted bars and watches. Frankly, it’s more about what the retailer sells since they can sell any of the above if the staff believes in it.
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WHAT ARE YOUR TOP-SELLING ACCESSORY BRANDS?
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TKO . . . . . . . . . . . . . . . . . . . . . 17% Spri . . . . . . . . . . . . . . . . . . . . 12.5% Cap. . . . . . . . . . . . . . . . . . . . . . . 9% Harbinger . . . . . . . . . . . . . . . . . . 9% Polar. . . . . . . . . . . . . . . . . . . . . . 7% Schiek . . . . . . . . . . . . . . . . . . . 5.5% Nautilus/Schwinn . . . . . . . . . . . 5.5% Theraband . . . . . . . . . . . . . . . . 4.5% Keys . . . . . . . . . . . . . . . . . . . . 4.5% Gymnic . . . . . . . . . . . . . . . . . . 3.5%
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Others receiving votes (in alphabetical order): Aeromats, All Pro, Dynaband, Everlast, Fitter, Fitness Wholesale, Flex, Hampton, Humane, Mio, OPTP, Raw Power, RB Products, Savage Fitness, Stamina, StretchCordz, Supermats, USA/Troy, Valeo. Yes, indeed, this list has grown significantly in numbers compared to last year. In 2003, 19 companies were named at some level; this year, 29 or nearly 50 percent more earned a mention as a top-seller. Why? Hard to say, except that the accessory market IS growing, and more and more companies are jumping in to nab their part. And with more people outfitting mini-gyms in their home, more mat and flooring companies have decided their market isn’t only clubs. In terms of who is where, TKO still takes the lead hands-down as the No. 1 top-seller. Spri is still in second, but has gained a higher percent of retailers naming it, and Cap decided it was
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GENERAL STORE &
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CUSTOMER INFORMATION WHAT IS THE AVERAGE AGE OF YOUR CUSTOMER?
18-24 . . . . . . . . . . . . . . . . . . . . . 0% 25-34 . . . . . . . . . . . . . . . . . . . 3.6% 35-44 . . . . . . . . . . . . . . . . . . . . 49% 45-54 . . . . . . . . . . . . . . . . . . 45.4% 55-64 . . . . . . . . . . . . . . . . . . . . . 2% 65+ . . . . . . . . . . . . . . . . . . . . . . 0% Not much has changed here, with most retailers still focusing on the aging Boomer. Much work is still at-hand, however, if fitness as a retail market is to sustain itself as the X and Y Generations begin to move along. The industry needs to think of better ways to attract a younger consumer, without losing the older consumer. Where are the younger folks buying their gear? Our story in FitBiz from March 2004 (go to www.geartrends.com to download a copy if you missed it) shows that more are wandering into sporting goods than specialty. Of course, it’s not as if most retailers poll on age; they are going on gut, which may mean that some of those they classed as 45-54 are really young-looking 55+ folks.
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HOW DO YOUR SALES YTD COMPARE TO LAST YEAR? PERCENTAGE CHANGE? Up . . . . 78% (avg. increase: 16.5%) Down . . . 3% (avg. decrease: not given) Even. . . 19%
Now, let’s be honest here folks, we know sales were overall a bit better for many in 2003 than in 2002, but this much better? More than three-quarters posted increases? We are skeptical, highly skeptical. Of course, the very few who noted they WERE down didn’t name the number. At least we had a few claim “even,” even though they may have had to struggle with the pen to keep it from checking “up.” So when you read this, we’d suggest filtering it highly.
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WHAT PERCENTAGE OF YOUR 2003 TOTAL COMPANY SALES VOLUME WAS: Fitness equipment . . . . . . . . . . . 94% Fitness accessories . . . . . . . . . . . 6% Other footwear/apparel . . . . . . . . 0%
Every single retailer we polled said the store sells accessories, but the percentage is what shifts and shakes. Some barely manage 2 percent, while some stake out a claim of 15 percent to 20 percent of sales in accessories. We call that a great way to add a little beef to sales. The few that do name accessory sales figures of 10 percent, 15 percent or 20 percent know what those bits can mean to revenues. The others just don’t seem to think the little stuff is worth the attention (see our story on Accessories, page 24) and barely eke 2 percent or 3 percent. How can any retailer close a sale for $1,000 or $2,000 and not manage to get the customer to bite on books, additional handles or weight attachments, gloves, balance boards or all that other stuff that’s oh-so-possible? One retailer mentioned that he actually made about a third of his sales in nutritional products! Hmm, seems there is a market there that some might be missing. We aren’t talking about gimmicky pills and potions, of course, but just the legitimate antioxidants, vitamin B or glucosamine stuff.
BELLY-BUTTON PONDERING As always, we ask a couple of thought-provokers to gather extra insight: How important are trade shows to you, your staff and your business? Has that changed? These answers were rather unexpectedly all over the board. We got it all, from “yes,” “yes, VERY,” “not at all,” to “only moderately.” What we read between the lines, though, is that if someone looks at a trade show as STRICTLY a place to see new product, that person leaned toward the “not very important” school. If he or she had a broader interpretation of a show as a place to meet, network, get education and take staff as a treat, the person still supported shows. Of course, the larger dealers get the boondoggle of special dealer fly-ins (love ’em and hate ’em, it seems).
A FEW COMMENT EXCERPTS:
» They are becoming less and less important. Info is being distributed so much more efficiently these days, that it is hard to justify the expense. Manufacturers are also providing dealer fly-ins and rep visits that teach us a great deal. » Very important ONCE a year. August is the best time to see new products and discuss plans for fall and winter primetime sales. Great opportunity to meet face-to-face with current and prospective new suppliers. » Very important. We rely on them to get face time with our manufacturers all in a short amount of time so we can have the rest of
the year to focus on running our business. We also like to bring out staff as a treat. » Not important really, but fun and every once in a while you discover a new innovative item. » Very important. Everyone in the industry needs a place to gather together once a year at the right time of year: relationship-building, renewal, education, networking are all important benefits of these trade shows. What do you want to tell manufacturers about what they could do better to help you and the industry be more successful? As expected, we got an earful here. One theme that surfaced over and over was the desire for advertising. Survey respondents said they wish that the industry as a whole would do national advertising AND launch some collective campaign that will simply drive the inactive public to fitness and thus to the industry and stores. Another wish of course came straight from the pocketbook—margins, spiffs, margins and more margins. Did we mention they asked for better margins?
First, a few brief comments:
» Increase margins. » Better customer service. » Advertise more. » Margins. They must go up. » Collective TV advertisement. » Be different, not just cheaper. » Build national brand awareness. » No selling on Internet. » Timely delivery. » Innovate, don’t imitate. Other comments to stoke your fires:
» Either leave prices off their websites or list prices at a higher margin, thus giving dealers a chance to earn a decent living and have negotiating room.
» After many many years of being in the “specialty exercise” field, we have the same request. Help drive more customers through our doors and don’t sell the brands we sell to big-box and large discount chains. We survive on product knowledge and service to the customers: we die on price alone.
» They could try and promote healthy lifestyles to the 90 percent of the population that is content to sit on their behinds, get fat and die.
» They should grow up and get some business acumen. » To become a free GearTrends trade member or to give us feedback, go to GearTrends.com.
* All answers have been rounded to the nearest .5 percent, and since we don’t name every single company name with a percent, the percentages may not total 100%. 54
»FITNESS »SUMMER 2004
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Rethink, Reshape, Redefine
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