[Paddlewise] Cosco Selling Kayaks

From: Andy Knapp <Andy_Knapp_at_compuserve.com>
Date: Thu, 4 Mar 1999 14:54:27 -0500
I will throw several thoughts on the state of the paddlesports industry
into the debate. I have worked in the outdoor sports industry for 26 years,
mostly for an independent retail oranization. As a former board member of
the Trade Association of PaddleSports and its predecessor organizations
TASK and NAPSA, I know the paddlesports industry pretty well.

What is happening is the same trend that is consuming the rest of the US
and industrial world economies. Just like the electronics industry, the
home improvement industry, the agriculture industry, the team sports
industry, and many others, the outdoor sports industry has been
"discovered" and is going through a period of consolidation as capital
interests see growth and potential profits. 

The paddlesports segment is no different, and with Old Town, Perception,
Dagger, Mad River, Wilderness Systems, and now Necky Kayaks all being owned
by holding companies, the pressure will be on for endless growth and higher
profits. The rotomolding capacities of the above companies, along with
those of Current Designs, and others in Tennessee, Minnesota, New Zealand,
England, Europe and additional locations are cranking up for maximum
production, requiring distribution far beyond the capabilities of the
traditional paddlesports shop. 

The resulting boom will lower the prices- as well as quality- on some
commodities, and draw additional participants into the sport. More
participants can be good, if we build a constituency for the values of the
quiet outdoor sports. How the industry reacts will determine whether the
accident rate goes up significantly and invites government regulation and
taxation.

As in the other consumer industries, the efficient "cookie-cutter" chain
stores will benefit, and the independent outlets will begin to dwindle
away. When was the last time any of you bought a book, a dozen eggs, a
hardware item, or a computer part at a locally-owned business?  (The same
thing is happening with the farm industry; family farmers however make more
noise politically.)

Will this consolidation happen in the kayak industry to the same degree as
in some of the industries controlled by just a few players?  There will
probably be a boom/overproduction/bust cycle just as there was in the
bicycle and ski industries, among others, leaving a wreckage of failed
businesses and cheap unwanted product. But perhaps the core of the paddling
sports will remain too specialized and esoteric for the mass consumer
enonomy to touch. After all, paddling still requires at least a bit of
physical exercise and the necessity to be away from the television set for
several hours at a time. Athletic shoes and rugged outerwear can at least
be worn to and from the shopping mall.

The pyramid-scheme nature of this consumer-driven economy will become
apparent when:
a) The baby-boom generation gets too old to buy all this stuff. The
handwriting is already on the wall for the outdoor industry; statistically,
the next generation coming up is the most sedentary and the most overweight
in human history. Look at the average age of those on this list.
b) The federal government is forced to seriously raise taxes in ten years
or so to bail out social security and pay for all the infrastructure
investment that has been ignored since 1980.
c) The rest of the world decides it wants its fair share of the dwindling
resource base. The US, 4% of the world population, consumes 25% of the
petroleum production, most of which becomes carbon dioxide in the
atmosphere and plastic waste in the landfills within a year.

What can you do? Joe and others have expressed the need to work on a local
level. To preserve the integrity of our sport, we need to speak out for
responsible use as well as access to the water. We need to give back as
much as we take. Everyone wants "free" or "cheap," but sooner or later the
free ride will be over.
1. Support a local club or trail organization. Help spread the message of
safety and the environmental ethics of human-powered sports.
2. When you can, support your local paddlesports shop. Providing them with
business will allow them to stock the specialized equipment the chain
stores will never touch. Many of these stores will match prices within
reason if you ask. (REI, though a chain, has a history of giving back to
the outdoor community.) Before you buy a product, ask what the vendor does
to better the outdoor environment and the paddling community.  Volunteer to
help with their local events and educational efforts. Get some satisfaction
out of being a local guru or activist. 
3. Remember that we will have to battle for the right to do our thing,
whatever it is. The motor interests, the police interests, and the
corporate profiteers all want to have control over the use of our
recreational resources.

Thanks for the soapbox time. Anyone else in the paddlesports industry have
some thoughts?

-Andy Knapp
Minneapolis
snowing lightly
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Received on Thu Mar 04 1999 - 11:56:02 PST

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