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Hang Toes Surfing
Market Analysis Summary
The increase in the number of independent specialty stores in the United States and internationally provides an opportunity to introduce a new, fresh clothing line. Within the larger surfing and active-wear market is our target market, customers of specialty stores. These discerning customers want comfortable quality clothing for both surfing as well as everyday street wear.
Specialty retail stores are the growing “gourmet” market and are represented by large American companies like Quicksilver/Roxy, Billabong, etc. Specialty stores are willing to pay a bit more for quality products, and attempt to distinguish themselves by being a family store that attracts young teens and their parents.
Board-Trac’s 2003 survey clearly shows the crossover between sports, finding 47% of skate boarders and 50% of surfers surveyed also snow board. Additionally, it found that participation in snow boarding has jumped from 7.96 million in 2001 to 9.9 million just three years later. (*sources www.asrbiz.com, Transworld Magazine)
Retail shops are trying to hold customers year-round, and many specialty shops who focus on one action sport are also looking to bring in products that will keep customer loyalty from season to season.
There is now a growing trend towards fitness skate boarding, serious street skating, wake boarding, snow boarding, cycling and surfing. With these large potential markets, our targeted clothing and apparel lines will be there to address their lifestyle needs.
The Sporting Goods Manufacturers Association survey indicates that surfing, skate boarding, and in-line skating now have more participation than football, softball, skiing, and snow boarding combined. Surf Expo, where for the past 29 years has introduced new and top manufacturers to retailers in the surf, skate, water sports, swim and resort industries, now comes together in a business-first buying and selling environment. Produced twice annually, Surf Expo draws buyers from across the U.S., the Caribbean and around the world. Whether an industry manufacturer or specialty retailer, Surf Expo has the target markets to reach.
With a world skating market of over 31 million and steadily growing (statistics released by the Sporting Goods Manufacturers Association), our aim is to penetrate into this market by promoting our clothing line in Florida’s geographical location and be viewed as an asset to the state. The mild winters and beautiful beaches attract millions of tourists and newcomers to South Florida each year. Our primary target market will be: family-oriented consumers, teenagers that want to buy clothes to match current trends, and the local specialty stores who cater to these customers.
Target Market Segment Strategy
Our target markets are teens, young adults skaters, surfers, snow boarders and the health and fitness enthusiast. This segment can be reached over the Internet and through TransWorld Business – Skate* Surf *Snow Magazine.
We plan on developing the specialty stores market through an inexpensive postcard method. Direct mailing ads/coupons with priority codes is one the most cost-effective ways to reach potential retail store customers. Also, by offering gift certificates to specialty store owners, they will contact us for more details.
Our skating and surfing sales have undergone tremendous growth and distribution throughout South America, and we want to do the same with Hang Toes Surfing in the United States. We will concentrate on Internet marketing and direct sales to specialty stores. The Internet is one of the best communication mediums for surfers, skaters, and snow borders all over the world, and we believe this is the best way to introduce our products. Sales on the Internet are now over $28 billion (as quoted by Forester Research) on e-commerce.
Our web site will attract consumers and future distributors. We want our presence over the Internet to be strong.
Competition and Buying Patterns
The purchase decision for our customers is based on trust in our services, professionalism and quality products. We have established relationships with our overseas customers which extend beyond that of the buyers/sellers. Our products have the highest quality standards in mind.
Each segment of specialty stores has its own buying patterns depending on its own needs. The pertaining table in 4.1, Market Segmentation, illustrates this.