STATE OF THE INDUSTRM REPORT - Outdoor Industry Association

This reporT has been developed for members of ouTdoor indusTry associaTion (oia).
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T A B L E O F C O N T E N T S
Outdoor Industry Snapshot
Who’s Playing
Who’s Selling
Where We’re Playing
Where We’re Headed
Acknowledgements
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p o T e n T i a l e n e r g y
Shaping the exciting future of the outdoor induStry
It is an exciting time for the Outdoor Industry. Fully two-thirds of Americans
participate in outdoor activities each year. Sales of outdoor product grew
more than eight-percent in 2004, outpacing U.S. retail gains as more and
more Americans embraced the active outdoor lifestyle. As a result, Industry
businesses are beginning to attract eyes, and dollars, beyond our traditional
boundaries; consolidation and buy-outs are votes of confidence on where we’re
headed. Outdoor recreation occupies an enviable position at a unique time in
American history—it offers a solution to the pressing problems of obesity and
inactivity, and it’s beginning to receive recognition as a major contributor to
America’s economic vitality. More than ever it’s our potential that defines us.
This report explores that potential in depth by looking at:
Who’s playing
Of the 159 million Americans who participated in outdoor recreation last year,
two of the largest segments were Baby Boomers and Millennials. Boomers know
the thrill of summiting a mountain, the solace of canoeing pristine lakes and the
excitement of having new experiences. Millennials thrive on action, speed, and
adrenaline. But both groups find common ground in the active outdoor lifestyle.
Who’s selling
Americans are increasingly drawn to the active outdoor lifestyle, ringing up $33
billion in retail sales this past year alone. At the same time, the Outdoor Industry
is attracting greater competition as more merchants and manufacturers across
more channels angle to capture a share of the market. As the participant and
consumer evolve, their perception of our industry is changing. In the coming
years, the outdoor business community will thrive by adjusting to meet these
expectations, while preserving the unique ethos that defines us.
Where we’re playing
Traditionally, outdoor recreation was synonymous with the backcountry. But
as Americans battle the inactivity crisis, and outdoor enthusiasts increasingly
seek activities that can be done before dinner, close to home recreation
opportunities are more important than ever. The Outdoor Industry and policy
makers must expand our focus to include frontcountry and urban recreation
areas. By embracing these new playgrounds and ensuring that all Americans
have places to play close to home, we are not only ensuring our own success,
but we are creating a healthier nation as well.
Where we’re headed
Whether our participants are young or old, mountain bikers, bird watchers or
day hikers, they share common goals that draw them to the active outdoor
lifestyle: connection to the playgrounds where they recreate, the value of good
health/wellness and the simple joy of being in nature. This industry is and will
always be a product of peoples’ passion. Like many of its greatest innovations,
however, its growth and success requires that we continue to build on our strong
foundation. It’s a challenge Outdoor Industry Association relishes. And one that
we are already finding industry leaders embracing. This State of the Industry
outlines where we are and where we are going. It’s going to be a fun ride.
potential energy // outdoor industry association //

o u T d o o r i n d u s T r y s n a p s h o T
The health of the Outdoor Industry can be gauged by two sets of metrics: sales and financials,
and participation and passion for the active outdoor lifestyle. The outdoor lifestyle is
defined by the wellness, social interaction, and outdoor connection that Americans desire.
Stock prices, mergers, and consolidation reflect the emergence of the outdoor lifestyle.
Consolidations within the Industry and buy-outs by non-endemic companies hit an
all-time high in 2003. The momentum of transactions that have changed the business
landscape of the Outdoor Industry continued through 2004 and 2005. Authentic outdoor
brands showing decent sales growth are being snapped up at a rapid rate by private
equity firms and non-outdoor conglomerates, and at very high premiums. In late 2005,
Liz Claiborne acquired the climbing and yoga apparel manufacturer Prana for 1.8-times
sales, and Timberland acquired outdoor product developer SmartWool for two-times sales.
Existing public outdoor industry companies, represented by RBC Capital Markets
Fitness and Outdoor Products Index, have outperformed the general market over the
last five years:
A growing industry
In 2004, Outdoor Industry retail sales outpaced
national retail by nearly one percentage point. It’s
a major comeback; sales dropped more than 4
percent below national figures in 2001, perhaps
because of factors associated with that year’s
terrorist attacks.
Outdoor Industry U.S. Retail Sales
Source Annual Benchmark Report for Retail Trade and Food
Services: January 1992 Through February 2005; U.S. Department
of Commerce
Outdoor Industry Sales include sales in outdoor specialty and
outdoor chain stores collected by Leisure Trends Group for
Outdoor Industry Association’s Topline Reports
// www.outdoorindustry.org
Fitness and Outdoor Products Index
Russell 2000
S&P Consumer Discretionary
Dow Jones
NASDAQ
Source RBC Capital Markets
industry FinAnCiALs: A $33.3 BiLLion industry
Outdoor does not include fishing/hunting,
snowsport or bike sales. Point-of-Sale data
collected by Leisure Trends Group (August 2004
through July 2005)
Consumer estimates produced by LTG
The Surf Industry Manufactures Association (SIMA)
National Sporting Goods Association (2004 data)
SnowSports Industries of America (SIA)
(Winter ‘04/’05)
The American Fly Fishing Trade Association
The 2003 Hunting Retail Distribution Study (LTG)
American Sportfishing Association’s “Sportfishing
in America” study by Southwick Associates
(2001 data adjusted for inflation – 2005)

AppAreL And FootweAr tAke the sALes LeAd
Sales at outdoor specialty and outdoor chain stores surpassed the $6 billion
mark for the 12-month period beginning in August 2004 extending through
July 2005. Outdoor Industry sales have been augmented by strong revenue
Paddle
Equipment
Footwear
Equipment
Accessories
Apparel
Outdoor specialty and outdoor chain stores monitored by the Leisure Trends Group for OIA in
the Topline Retail Sales Reports include outdoor specialty stores, national outdoor chain
the pArtiCipAtion story
In 2004, 159 million Americans participated in active outdoor recreation. Participation
is up from 1998 but has not grown since 2001.
% Participating
increases in apparel (15.5%) and footwear (10.1%), both of which have
become a larger piece of the industry sales pie.
these 159 million americans participated an average of 52 times
each in human powered outdoor activity outings in 2004,
representing over 8.3 billion total outdoor activity outings.
stores and sporting goods stores. The $6.1 billion does not include sales from general
mass merchants, department stores, bike shops, ski shops, the Internet, or catalogs.
Paddle
Equipment
Footwear
Equipment
Accessories
Apparel
Source Outdoor Industry Foundation 2005 Outdoor Recreation Participation in the United States.
industry snapshot // outdoor industry association //

w h o ’ s p l a y i n g
// www.outdoorindustry.org

the tranSformation of the active outdoor perSon
The participation story in the Industry Snapshot (pg. 3) shows overall growth in
participation since 1998 but a slight pullback since 2001. Interestingly, however,
certain key sports have seen phenomenal gains in participation. Understanding
why some parts of the Industry are growing while others remain stalled is
crucial to preparing for what could be the Industry’s greatest growth period yet.
It appears that the outdoor enthusiast’s profile has shifted, or even polarized
into two distinct segments that correspond to transitions in the lives of Baby
Boomers (born 1946-1964) and Millennials (born 1978-2003). To an industry
long reliant on a predictable customer and a niche selection of lifestyle sports,
the prospect of realigning to meet the needs of a new outdoors person could be
daunting. It doesn’t have to be. Baby Boomers (78 million) and Millennials (100
million) represent a majority of the U.S. population and share a common interest in
leading active lives, but they are redefining what it means to be active.
“our challenge is to meet them where they are; after all, it’s the
participant who will define us, not the other way around.”
— angel martinez of deckers outdoor corporation
To be sure, Boomers and Millennials show up prominently on the radar screens
we’re accustomed to watching. They are most often seen hiking, biking,
camping, fishing and paddling – the Industry’s pillar activities. But Boomers are
also pursuing fitness and adventure travel; Millennials are skateboarding and
bouldering. Both are developing non-sedentary lifestyles in ways consistent
with their values and their recreation opportunities.
“Our challenge is to meet them where they are; after all, it’s the participant who
will define us, not the other way around. Outdoor activities are components in
the lives of increasingly complex individuals who cross industry boundaries and
defy traditional molds,” noted Angel Martinez, President and CEO of Deckers
Outdoor Corporation.
who’s playing? // outdoor industry association //

Boomers: adventure with a coat check
“Active living” might be the best descriptor of the Boomer lifestyle. As they age,
boomers are redefining their retirement—and it doesn’t look anything like
Archie Bunker. Boomers seek a varied and healthy lifestyle: wellness, travel
and outdoor activity are its tenets. “Those people who used to take a vacation
and sit around the pool or the tiki bar—now they want to be active,” says Scott
Parmelee, Publisher of Outside magazine. “They want to come back and tell
people about what they did.” At the same time, Boomers who were aggressive
athletes, those who have spent time in the backcountry, are embracing a softer
kind of recreation. “To us it’s a hybrid person now,” says Parmelee. “I’d define it
as less strenuous but still engaged in the outdoors.”
“[Boomers] don’t want to be ‘adventure lite’.
trips of a lifetime or well-spent Saturdays—they’re both terrific.”
— fran farrell of national geographic adventure
John Morris, a Boomer from Chapel Hill, North Carolina, is a virtual poster child
for Parmelee’s hybrid outdoorsman. Morris reminisces about good old days in
the Tetons, scrambling up the range’s classic moderate alpine climbs. Today
he’s still eager to find adventure, but he’s more likely to marry physical activity
with cultural experience, and he’s less likely to wear a big pack. His most recent
trip was to the French Pyrenees, where the broad valleys offer magnificent
hiking. “We do day hikes or we stay at refuges,” he says. But Morris is quick to
point out that he still knows how to rough it; in the summer of 2005 he spent
several days backcountry camping in the Cascades with his daughter and sonin-law.
As he has aged, John’s activity mix has both changed in intensity and
broadened in terms of what he seeks from the activities he pursues. He once
jogged to train for the mountains but does so now for the health benefits; he
once sought climbing partners and now does things with his family. Fran Farrell,
Publisher of National Geographic Adventure, says this is an important thing to
remember about Boomers. “They don’t want to be ‘adventure lite,’” he says.
“Trips of a lifetime or well-spent Saturdays—they’re both terrific, you know?”
“With work and family responsibilities i don’t have
as many epic adventures. instead i try to combine work
and family with play.” — mike Wallenfels of mountain hardwear
// www.outdoorindustry.org
“With work and family responsibilities I don’t have as
many epic adventures. Instead I try to combine work and
family with play. My business friends are more relaxed
and productive after biking in the Marin Headlands or sea
kayaking on the Bay. Traveling with my growing kids, we
are not roughing it but are definitely active. I have just as
much fun experiencing my kids’ ‘first time’ adventures as
I would doing more extreme things on my own,” noted
Mike Wallenfels, President of Mountain Hardwear.
This transformation is an essential piece of the “who’s
playing” puzzle. For Boomers, adventure is more
about personal growth—through travel and social
interaction, knowledge and learning about the world—
than conquering and testing oneself. “You can have a
memorable experience without training for three months
beforehand,” says Parmelee. Even as Boomers pursue
broader activities, they maintain a connection with the
outdoors. A study released in late 2005 by AARP lists
the experiential and adventure activities Boomers say
they engaged in over the past 12 months. At the top
are fresh or saltwater fishing, escorted or guided tours,
biking, shopping, fine dining and touring scenic byways.
And among people age 45+, jogging and working out,
swimming, and vigorous walking rank highest in numbers
of participants. “These are very democratic activities,”
says Farrell. They’re “easy entry”—in terms of cost,
commitment and availability of partners or companions.

millennials: everything rad
The rising generation pursues activities
compiled from different and often incongruent
cultures: from machine-powered sports like
moto-cross and wakeboarding to humanpowered
activities like bouldering and
snowboarding that fall more closely within
the traditional boundaries of outdoor sports.
In Boulder, Colorado, 19-year-old Zack Roth,
who started climbing on an artificial wall at
the X-Games five years ago, estimates that
he spends 20 hours a week bouldering and
35 hours skateboarding (he was a sponsored
skater for several years.) He usually does both
each day. “They use different muscles,” he says.
“When you get tired skating you go bouldering.”
He also sport climbs at the 5.12 level and
makes frequent trips with his dad and friends to
Rifle State Park in western Colorado. Zack is not
a backpacker (“I don’t know that many people
who do it”) or a mountain biker (“I go maybe six
weekends a year.”) He’s only led two traditional
climbing routes (“there’s not really anyone to
teach me how”) and is sort of nonplussed by
mountaineering. Millennials like Zack respond
to activities that are accessible—visually in the
media and practically in how much time it takes
to do them.
Where Millennials differ is in their interpretation of
“active.” While Boomers cast their active lifestyle
ambitions against the familiar backdrop of
towering mountain ranges, sweeping vistas and
healthy living, Millennials see activity in terms of
big air, structured competition and achievement.
“Mastering a kick-flip at the skate park is as
satisfying to a Millennial as summiting Mount
Rainier might be (or have been) to a Boomer,”
Beaver Theodosakis, Founder and President
of Prana.
However, Boomers and Millennials have
similarities as well: the activities they pursue
place a heavy emphasis on social interaction
with fellow participants, and they both want
the adventure to be done before dinner.
Lifestyle sales speak to a changing consumer
The three year trend in outdoor specialty and outdoor chain sales shows equipment
down nearly 11% and apparel up more than 35% (fig. 1). More specifically, sportswear
tops sales are growing at a pace that’s nearly double that of insulated tops (fig. 2).
This suggests two things: a broader consumer group is adopting active lifestyle
activities—or at least the look of the active lifestyle, and consumers are turning their
attention from the backcountry to the frontcountry where different equipment and
apparel may be required.
Apparel
Equipment
Source OIA Topline Retail Sales Report reflecting sales through outdoor specialty and outdoor chain (August-July)
Sportswear Tops Insulated Tops
Source OIA Topline Retail Sales Report reflecting sales through outdoor specialty and outdoor chain (August-July)
“mastering a kick-flip at the skate park is as satisfying to a millennial
as summiting mount rainier might be (or have been) to a Boomer.”
— Beaver theodosakis of prana
who’s playing? // outdoor industry association //

www.outdoorindustry.org
“the three year trend in outdoor specialty and outdoor chain sales shows equipment
purchases down nearly 11% and apparel up more than 35%.”
— outdoor industry association
the question of growth
While hiking, biking, camping, fishing and paddling log the highest participation
numbers and comprise the Industry’s essential foundation, the greatest growth
in participation since 1998 is happening in specific areas. Canoeing (up 16
percent), snowshoeing (up 50 percent) and trail running (up 20 percent) are all
low commitment, done before dinner activities. On average, Boomers regularly
participate in more than two outdoor activities, Millennials more than three. But those
figures represent only a fraction of their activity mix. The Outdoor Industry—and
other industries—are reckoning with the growth of activities beyond the scope of
the traditional: skateboarding is up 48 percent since 1999 according to the National
Sporting Goods Association, while traditional sports like baseball, basketball and
football have all seen declines. But why?
A 2004 study conducted by the research firm Harris Interactive on behalf of
Outdoor Industry Foundation gathered demographic information on more than
2000 active outdoor people, probing behavior by asking respondents why they
pursued the sports they did, what barriers kept them from participating, and
where and how much equipment they bought. The answers are relatively clear:
time and money influence the ways consumers approach recreation.
The mix of popular (or frequently participated in) outdoor activities is changing to
reflect a more “holistic” consumer—one who integrates activity into a broader
lifestyle picture and who prizes social connection to fellow recreationalists more
than the sports themselves. Boomers and Millennials, despite their disparate
ages and interests, have this in common. For a passion-fed industry that has for
years been staffed and run by its core participants, looking beyond traditional
boundaries is a daunting task. But never has that well-traveled phrase “with
change comes opportunity” been more appropriate. “All this stuff fits under the
big outdoor umbrella,” says Parmelee. “For years the Industry has defined itself
too narrowly. Why can’t you go to Ireland and hike and bike and also play some
golf?” The answer: you can. And Boomers will. Likewise, Millennials will work
on their kick-flips on the days they aren’t bouldering. As the Industry moves to
meet the demands of its new and varied active outdoor participant base, it’s
going to change. “And the most important thing is, that’s O.K.,” says Parmelee.
“Who’s only got one pair of shoes in their closet?”
Big tents on the rise
Echoing a trend seen across the Industry, tent sales
reinforce the notion that the average outdoor consumer
is spending less time in the backcountry and more time
car camping, family camping and getting outdoors in
a less hardcore way. Sales figures show that recreation
tents—defined as heavy car-camping type tents,
usually weighing in excess of 10 pounds—are up
117% over the past three years. Meanwhile, sales of
three season tents, high-tech lightweight models built
for backcountry use, have declined nearly 14% in the
same time period.
3 Season Tents
Recreation Tents
Source OIA Topline Retail Sales Report, rolling year August-July

who’s playing? // outdoor industry association //

w h o ’ s s e l l i n g
0 // www.outdoorindustry.org

a changing conSumer influenceS outdoor retail
Sales of active outdoor recreation product through all channels—outdoor
specialty, outdoor chain stores, department stores, mass merchant/discount
stores, and outdoor Internet/catalog totaled about $33 billion between August
2004 and July 2005. Striking growth occurred in the Internet/catalog channel,
which accounted for 4.3 percent more of the total Industry sales pie compared
to the previous 12 month period. Outdoor specialty and chain stores sales grew
by 6.7 percent. Outdoor product sales are stronger than they’ve been since
2001, but consumers aren’t buying the same things they used to. The mix of
popular products is changing. To understand why, we asked Industry veterans
to explain the trends they see shaping outdoor retail.
“people are beginning to want that earthy look again…
the focus is on family and leisure more than ever.”
– paul Brooks of hi-tec
Sales of outdoor product have been on the upswing since 2001 even as
participation has remained flat at best, indicating that a certain percentage
of sales are aspirational—they’re feeding consumers’ desire to be part of an
outdoor lifestyle. “People are beginning to want that earthy look again,” says
Paul Brooks, President and CEO of the boot manufacturer Hi-Tec. “The focus is
on family and leisure more than ever. People want to get away with each other
a little more.” As a result, “athletic footwear in earth-tone colors—that’s our
biggest growth area,” Brooks says. As mass product has gotten better and the
mix of popular activities has shifted toward the mainstream, the line between
core and non-core customers has blurred. “The average outdoor recreationist
is more ‘average’ at a lot of different sports these days,” says Matt Hyde, Vice
President of Merchandising at REI. “There’ll always be that core, but it’s not as
singular as it once was.”
This makes it imperative for specialty retailers to show their value. Their essential
“mojo”—that aura of knowledge, experience and innovation that attracts core
customers—is to a certain extent, lost on dabblers who incorporate price
and convenience into their buying decisions. Specialty shops must offer an
increasingly intimate sales experience in order to differentiate themselves
from the Internet and mass merchants. Mass merchants, on the other hand,
are positioned to gobble up market share in the form of consumers who are
interested in outdoor sports but not as brand aware or brand loyal.
who’s selling? // outdoor industry association //

The future of outdoor retail will hinge on retailers’ ability to meet the consumer
where he or she is. Some people value their gear for its functionality, others
for the potential it inspires. Still others are simply looking for a bargain. All
want retailers to partner with them in fulfilling their active lifestyle aspirations,
whatever they may be. But what will that look like in the individual distribution
channels? Veteran Industry retailers have differing opinions. Here’s what some
of them see:
Specialty retail: the mojo
Specialty retailers, repositories of sport-specific experience, traditionally helped
consumers “belong” by facilitating an exchange of knowledge and a good
outdoor vibe along with the cash they charged. For a passionate and plugged
in consumer who cared about brands and products, that was valuable. “In
the old days shops were the community centers,” says Sally McCoy of Silver
Steep Partners, a financial advisory/consulting firm specializing in the outdoor
and active lifestyle industries. But now that outdoor chat rooms and forums
provide information on even the most obscure backcountry areas, the locus
of expertise has shifted. “Consumers have turned their focus to destinations,”
says McCoy. Specialty retailers must establish their relevance by developing
inclusive and trusting relationships with customers. Cabela’s CEO Dennis Highby
thinks expanding beyond the traditional storefront is the best way to do that. “Our
multi-channel approach gives us a tremendous advantage over competitors,” he
says. “All our business segments—retail, direct and financial services—build on
each other.”
“i get most of my input from non-industry companies.
consumers’ expectations are formed at Banana
republic or Whole foods.”— matt hyde of rei
The result is a tailored brand experience that’s convenient and meaningful
for a consumer who is pressed for time and increasingly interested in the
lifestyle aspect of their sport or activity. Other specialty retailers agree. “Our
greatest strength is one-on-one interaction with the customer,” says John
Mead, President of Adventure 16, a specialty retail chain in southern California.
“However, these days customers expect to see an Internet presence. For us not
to be on the Web is an inconvenience to our customers.” Beyond convenience,
the multi-channel approach equals customer service. With so much competition
that’s a crucial priority. Demands on outdoor retailers are increasingly driven
by excellent retailers outside the Industry. “I get most of my input from nonindustry
companies,” says Hyde. “Consumers’ expectations are formed at
Banana Republic or Whole Foods.”
For specialty retailers, developing brand value depends on increasing the quality,
not the frequency, of customer interactions. A specialty store’s Internet site can
act as a virtual water cooler, for example, where enthusiasts from around the
world compare notes and share adventure stories. Catalogs can offer sportspecific
tips and the latest outdoor news. It’s all about reestablishing a sense
of inclusiveness and belonging. Specialty retailers are at their best when they
foster community.
// www.outdoorindustry.org
% of Respondents
online sales projected to take off
Sales of outdoor product through the Internet grew
considerably between August ’04 and July ’05 from
12% to 16.3% of all outdoor product sales.
According to Forrester Research, Inc., total online US
retail sales are projected to grow at a compounded
annual growth rate (CAGR) of 14% over the next five
years (fig. 1.) while the two main outdoor categories,
equipment and apparel, are expected to grow at 16%.
Industry veterans agree—70% of respondents to a
recent online survey predicted the ‘Net to grow 10%
or more in the coming year, and 28% saw growth of
20% or more (fig. 2).
Apparel
16% CAGR
16% CAGR
Sporting Goods Equipment
Source “US eCommerce: 2005 to 2010,” Forrester Research, Inc.,
by Carrie Johnson with Brian Tesch, September 14, 2005
Internet Sales Growth Percentage 2006
Source Outdoor Industry Association online survey of 210 industry
professionals from member companies conducted December 2005.

the consumer perception: “click-and-mortar”
Consumers don’t see different channels as unique and separate. More retailers are embracing
a multi-channel approach by offering a Web presence in addition to their brick-and-mortar
storefront because their consumers expect it. Many online shops have become inadvertent
partners with brick-and-mortar retailers that are, in some cases, their competitors.
“We invest a lot of money to bring the best targeted outdoor oriented traffic to our sites
and many of these people are researchers who ultimately end up buying from the physical
retailers,” says Jim Holland, President of Backcountry.com.
how consumers choose where to shop
• Internet/Catalog customers weigh selection and price almost equally;
• Mass merchant customers want price and convenience;
• Specialty store customers find value in selection primarily, but attach considerable weight
to price and knowledgeable sales people.
(respondents could choose more than one reason—results won’t add up to 100%)
Convenient Location
Has Reasonable / Fair Prices
Knowledgeable / Experienced Salesperson
Has the Gear and Equipment I Want / Need
Source “Exploring the Active Lifestyle,” 2004 Outdoor Industry Foundation report prepared by Harris Interactive.
“We invest a lot of money to bring the
best targeted outdoor oriented traffic
to our sites and many of these people
are researchers who ultimately end up
buying from the physical retailers.”
—Jim holland, president of Backcountry.com
who’s selling? // outdoor industry association //

internet/catalog: selection and price
In 2004, Internet/catalog showed the strongest growth of all distribution channels,
but Mountain Gear President, Paul Fish, says not to read too much into it. “Ten
years ago I might have claimed I was driving the outdoor online business,” he says.
“Today it’s driven simply by the fact that that’s what Target, Wal-Mart and EBay are
doing.” Fish says there’s no great difference between the online shopper and the
folks coming into his brick and mortar store in Spokane, except for one thing: “a
whole chunk of online business happens simply because someone happens to find
you, and you’ve got the product they want in stock.” Still, in the August ’03 to July
’04 timeframe, Internet sales of outdoor product grew to comprise 16.3 percent of
total outdoor product sales and they’re poised to keep growing.
“While physical retail will always hold certain advantages
over e-commerce — namely that customers can touch and
feel the gear and try things on — even the most strident
brick and mortar proponents understand the need to
incorporate e-tail.” — Kim coupounas of golite
Jim Holland, CEO of Backcountry.com, thinks that’s because an increasingly
Internet-comfortable consumer finds value in the Web’s fast, easy and
comprehensive offering. “Competent e-tailers are in a position to put all the most
relevant information, from objective customer reviews to detailed features to
comparative product specs, right in front of their customers,” he says. Holland’s
“... research shows that customers who shop multiple
channels tend to be bigger spenders and more integrated
into the outdoors. they’re enthusiasts,
which means we can all earn more of
their business.” — paul fish of mountain gear
// www.outdoorindustry.org
feeling is that no one offers better customer service
than the customer himself, provided he has access
to the information he needs. For core consumers this
may be true; average e-tail price points for specialty
outdoor web sites run slightly higher than in-store
specialty sales, indicating that the Web attracts a highend
shopper. As well, Holland says, e-tailers can afford
to carry niche products that have a limited audience
or customer base, making Web retail more relevant to
the core customer.
“While physical retail will always hold certain advantages
over e-commerce—namely that customers can
touch and feel the gear and try things on,” notes Kim
Coupounas, Cofounder and CEO of GoLite, “even the
most strident brick and mortar proponents understand
the need to incorporate e-tail.” There will always be
people who research gear online and buy it in physical
retail stores—a fact that specialty retailers like
Adventure 16 are counting on. But surprisingly, that
may not be as detrimental to dedicated online retailers
as one might think. Mountain Gear research shows
that customers who shop multiple channels tend to be
bigger spenders and more integrated into the outdoors.
“They’re enthusiasts,” says Paul Fish, “which means
we can all earn more of their business.”

general/mass discount: mainstream outdoors
Sales of outdoor product through mass merchants
were essentially flat in the rolling year 2004 (August-
July). Even so, Dan Geiman, Analyst at McAdams Wright
Ragan, thinks the big stores’ attitudes toward outdoor
recreation are positive. “Right now outdoor recreation
is a very fragmented market,” he says, “there are lots
of shops out there selling a small amount of product,
so there’s opportunity for a mass merchant to gain
market share.” If that’s the case, big boxes are likely
to steer in predictable directions. According to Geiman,
“stores like Target, Wal-Mart and Costco carry outdoor
product they think will appeal to the broadest possible
tents:
AverAge retAiL seLLing priCe By ChAnneL
Outdoor Specialty $188.84
Outdoor Chain $93.95
General / Mass $49.15
outdoor specialty independent specialty stores with single or
multiple storefronts usually in a concentrated geographic area.
outdoor Chain national outdoor chain and sporting goods
chain stores.
general / Mass the mass and department store channel,
excluding Wal-Mart.
Source Leisure Trends Group and SportScanINFO
consumer group.” Hiking, camping, bicycling, fishing and paddling show the
highest participation numbers. If mass merchants expand their outdoor offerings
it’s likely to be in these activities, and it’s likely to be a very basic offering.
Average retail selling prices are much lower in general/ mass merchant stores
compared to outdoor stores.
“Mass merchants appeal to people who want a good price-value,” says Beth
Brownlee, regional sales manager for the clothing manufacturer Columbia.
Brownlee sells Columbia’s value-priced Core line into Kohls and J.C. Penny’s.
“You see a ton of it at football games,” she says, “but don’t think it’s not out on
the ski slopes as well.” But even though the mass offering is a value proposition
brands are still important. According to Brownlee, outdoor brands add legitimacy
to the mass merchants’ outdoor-positioned house brands. In that regard she sees
the mass customer in the same light as Hi-Tec’s president, Paul Brooks. “Even
the mass customer has become somewhat brand savvy,” Brooks says. “They’re
not too concerned with which brand, but there’s a trend toward brand. It adds
value.” Just as specialty and Internet/catalog retailers cater to their customers’
outdoor ambitions, stores like Target, Wal-Mart and Costco have to do so as well,
albeit on a different level, simply because the expectation is there.
“mass merchants appeal to people who want a good price-value.”
— Beth Brownlee of columbia
who’s selling? // outdoor industry association //

w h e r e w e ’ r e
p l a y i n g
// www.outdoorindustry.org

placeS to play — eSSential for our induStry and america
Two things will affect the future health of the outdoor business climate and
the health of Americans. First, Americans’ achievement oriented schedules
and technology centric lives leave little time to develop personal relationships
with the natural world, leading to a sense of dissociation with nature. Second,
unchecked development increasingly threatens America’s recreation icons—its
neighborhood playgrounds, community waterways, open spaces and expansive
national parks and public lands. As the Industry looks forward, we must focus
on these issues and leverage the positive: two-thirds of Americans ages 16
and over participate in outdoor activities at least once a year, and 45 percent of
them say they would like to try a new outdoor activity. Our challenge is to make
it enticing and easy to get outside and be active.
In his groundbreaking book Last Child in the Woods, author Richard Louv says
that by the 1990s, the radius around the average home where children were
allowed to roam on their own had shrunk to a ninth of what it had been in
1970. Louv and others think the affect on children is dramatic. A growing body
of scientific research suggests that kids who engage in “nature play” thrive in
ways their inactive peers don’t. For example, they show more advanced motor
fitness, including coordination, balance and agility, and they’re sick less often.
They also show improved cognitive development through skills like awareness,
reasoning and observation. When kids, and grown-ups, lose contact with the
natural world the consequences can be real and lasting—for both the Outdoor
Industry and America’s future physical and economic health.
“By the 1990s, the radius around the home where children
were allowed to roam on their own had shrunk to a ninth
of what it had been in 1970.” — according to author richard louv
where we’re playing // outdoor industry association //

accessible recreation is the best solution
It’s clear that physical activity is a contributor to health. Studies by the Centers
for Disease Control and Prevention (CDC) indicate that physical activity has
proven absolutely invaluable in helping people lose weight. Yet more than 50
percent of U.S. adults don’t get enough physical activity to recognize health
benefits and 26 percent are not active at all. More than a third of young people
in grades nine through 12 do not regularly engage in vigorous physical activity.
Daily participation in high school physical education classes dropped from 42
percent in 1991 to 28 percent in 2003.
“creation of or enhanced access to places for physical
activity, combined with informational outreach, has
been shown to produce a 48 percent increase
in frequency of physical activity.”
This trend toward inactivity is a major contributor to the nation’s obesity crisis—
and it’s not simply a matter of health. Obesity’s impact on the U.S. economy
is greater than many people realize. A 2003 study by the American Journal of
Managed Care found that obesity is a significant contributor to expenditures
for physician services. Specifically, the study’s authors said a one percent
increase in the percentage of the population who are obese yielded a 0.2
percent increase in expenditures. The national medical expenses attributed
to overweight and obesity accounted for 9.1 percent of total U.S. medical
expenditures in 1998 and has risen considerably (excludes indirect costs.)
Between 1998 and 2004, the number of states with obesity rates greater than
20 percent has grown from 7 to 43.
When people are active it not only makes them healthier; it also reduces the
amount of money they, and the federal government, spend on health insurance,
doctors and medicine. Study after study suggests that the best way to get people
active is to make recreation accessible. When there are parks, greenways, trail
systems and playgrounds within reach of their homes, people exercise more.
In a study published by the CDC, creation of or enhanced access to places
for physical activity led to a 25 percent increase in the percentage of people
exercising on three or more days per week. A group of studies reviewed in the
American Journal of Preventive Medicine showed that “creation of or enhanced
access to places for physical activity combined with informational outreach”
produced a 48 percent increase in frequency of physical activity.
// www.outdoorindustry.org
the complete case for recreation
How important is recreation to the social fabric of
the United States? To provide a complete picture,
Outdoor Industry Foundation (OIF) has undertaken
the first ever Recreation Economy Study to quantify
the direct and indirect economic impact of recreation
in the United States.
The graphs below show how much money recreationalists
spend on two categories in select activities.
Clearly, the economic impact of active outdoor
recreation is far greater than the numbers shown by
simple sales figures. The OIF Recreation Economy
Study will be available in late spring 2006.
trail running, day hiking, backpacking, mountain climbing
paved road, biking - single track, dirt road
skiing, snowboarding, snowshoeing, telemark skiing,
cross-country/nordic
outdoor swimming, paddlesports - kayaking,
canoeing, rafting
car camping, tent camping, rustic lodges, RV camping
Source Southwick Associates (economic analysis) and Harris Interactive
(survey data), Preliminary Data for OIF Recreation Economy Study

15% and Below
staying fit is harder when there’s 16% to 20%
nowhere to 21% play to 25%
According to the Trust for Public Land report only Above 36% 25%
of LA County children live within a quarter mile of a
park. Areas shaded in red indicate neighborhoods
with the greatest need for parks:
15% and Below
16% to 20%
21% to 25%
Above 25%
Source Trust for Public Land, “No Place to Play,” November 2004
Source County of Los Angeles, “L.A. Health – Obesity on the Rise,” July 2003
In Los Angeles County, the rate of overweight children
is higher than the national average of 15%. The
percentage of overweight children was highest in
schools in the south-central region of the county—
exactly where access to public parks and open space
is worst. The red in the map above, representing a
great need for parks, matches with the dark green
in the map below, the health districts with 25% or
greater prevalence of youth obesity. Although 15% there and Below
are other factors to consider, there is little 16% doubt to 20%
creating park space in strategic locations will 21% help to 25%
improve our children’s health.
Above 25%
15% and Below
16% to 20%
21% to 25%
Above 25%
The benefits of accessible recreation areas don’t stop at physical fitness.
“Neighborhood parks inject a new spirit into communities at risk for blight. When
local community members join together to help plan and design a new park,
neighbors may work together for the first time and take renewed pride in their
communities,” noted CEO of Red Wing Shoe Company Bill Sweasy.
Source Trust for Public Land, “No Place to Play,” November 2004
Source County of Los Angeles, “L.A. Health – Obesity on the Rise,” July 2003
Source Trust for Public Land, “No Place to Play,” November 2004
Source County of Los Angeles, “L.A. Health – Obesity on the Rise,” July 2003
15% and Below
15% and Below
16% to 20%
16% to 20%
21% to 25%
21% to 25%
Above 25%
Above 25%
Source Trust for Public Land, “No Place to Play,” November 2004
Source Trust for Public Land, “No Place to Play,” November 2004
Source County of Los Angeles, “L.A. Health – Obesity on the Rise,” July 2003
Source County of Los Angeles, “L.A. Health – Obesity on the Rise,” July 2003
Source Trust for Public Land, “No Place to Play,” November 2004
Source County of Los Angeles, “L.A. Health – Obesity on the Rise,” July 2003
Eighty percent of Americans now live in cities, many without easy access to
a park, playground, or community garden. New cities are being built without
setting aside land where people can recreate. Nowhere is this more evident
than in Los Angeles, California.
Los Angeles offers just over nine acres of park land per 1,000 residents, a per
capita total close to the national average. But that figure is misleading. The
Santa Monica Mountains National Recreation Area and a few other large parks
skew the statistics, creating an illusion of adequate park space citywide when
in fact only select neighborhoods enjoy easy park access. The city center, where
population is most dense and where the majority of the city’s children live, is
almost devoid of public open space. A November 2004 study released by the
Trust for Public Land (TPL) found that Los Angeles offers its children the worst
access to parks among the cities it evaluated (including New York, Boston, San
Francisco, San Diego, Seattle and Dallas.) Perhaps not coincidentally, the parts
of Los Angeles that have the fewest parks show the greatest levels of obesity.
While park accessible cities like Seattle (79 percent live within a quarter mile
of a park) and San Diego (65%), achieve high school obesity rates in the single
digits, well below the national average.
America’s cities aren’t the only place where parks and open space are in short
supply. Across the country open space is disappearing. It’s time to embrace
a more holistic vision of America’s outdoor playgrounds—one that comprises
city and local parks, neighborhood walking trails and greenways. Funding these
places is a small step in the process of helping Americans reconnect with the
outdoors—and with their health.
“When local community members join together to help plan
and design a new park, neighbors may work together for
the first time and take renewed pride in their communities.”
— Bill Sweasy of red Wing Shoe company
where we’re playing // outdoor industry association //

funding close to home recreation opportunities
The Land and Water Conservation Fund State Assistance Program (LWCF) —a
federal program that provides matching dollars for state and local parks and
trails—is one of the best ways to support the creation of new close to home
parks and recreation areas. This year, OIA and other outdoor recreation groups
saved the stateside LWCF program from elimination. In its 40 year history, the
program has funded 40,000 state and local recreation projects in 98 percent
of the counties in the United States. Outdoor Industry Association hopes to
rejuvenate the program in future years as a way to bring quality parks and trails
within 15 minutes of every child in the United States. Developing recreation
infrastructure is a goal many states share and for which many need LWCF
funds to accomplish.
In November 2004, the National Park Service asked each state to estimate
its total unmet needs for LWCF funding. More than three-quarters of the
states reported an unmet funding need of more than 50 percent, showing
that there’s an overwhelming demand for recreation facility and open space
“...threats to the quality of experience, exemplified by proposed
relaxation of national park rules, pressure for increased oil and gas
development, and efforts to sell off public lands are a
growing concern.” — peter metcalf of Black diamond
0 // www.outdoorindustry.org
acquisition funding. In many cases, states
already have funds, or interested investors,
slated for recreation projects. LWCF dollars
act as the catalyst to get things rolling. “If the
federal government steps in as a partner there’s
comfort that the project has staying power,” says
Alan Front, TPL’s Senior Vice President.
Backcountry destinations are essential
There is an urgent need for policy makers to take
a proactive stance on protecting our recreation
gems, given that 1/3 of all America’s lands are
managed by the federal government. Recreation
destinations like the Grand Canyon, the Great
Smoky Mountains and the Everglades are
national treasures that attract tens of millions
of people each year. These destinations are also
integral contributors to a healthy America. “They
are the places enthusiasts aspire to go to, and
in the long run, those dreams drive participation
in many outdoor pursuits. Yet threats to the
quality of experience, exemplified by proposed
relaxation of National Park rules, pressure
for increased oil and gas development, and
efforts to sell off public lands are a growing
concern,” according to Peter Metcalf, President
and CEO of Black Diamond.

Over the past fifty years, recreation has clearly
emerged as the greatest use of Forest Service
lands and the primary driver of the National
Forest economy. Unfortunately for Americans,
government funding for access and maintenance
of public lands doesn’t begin to appropriately
address the recreation opportunities and other
benefits we derive from them. Properly managed
backcountry destinations provide clean air and
water, habitat for fish and wildlife, and limitless
recreation opportunities. If adequate and fully
funded recreation infrastructure, both close to
home and on our existing national public lands
was a top priority, the health of local economies,
outdoor businesses and the American people
would not only improve, but flourish.
a bright future for recreation?
OIA believes that there is benefit in the entire
outdoor community working together to ensure
there are places to play and a long term vibrant
recreation economy. Our Industry has been
a consistent and engaged partner with policy
makers on assuring America does not yield on the
quality of recreation experiences found on public
lands. We continue to advocate for communities
in which all kids have places to play within
walking distance of their homes. Businesses and
individuals in the outdoor community are coming
together to create more outdoor enthusiasts by
investing in healthy mentor chains that get kids
out and active and give youth positive images and
role models for participating in outdoor activities.
Working together, the future of outdoor recreation,
and America’s health, look bright.
Many communities are creating close to home recreation opportunities,
leveraging local, state, and sometimes federal support. Here are just
two examples:
Chattahoochee river project, georgia
The Chattahoochee River National Recreation Area was established in 1978 to provide wateroriented
recreation opportunities for metro Atlanta, but the pace of urban development
placed increasing pressure on the remaining open spaces around the area. Community and
Government support for developing a linear park along the river area was nearly universal,
but key funding from LWCF made it happen. For every LWCF dollar invested, nearly five
dollars in local, state and philanthropic support has been applied to this effort. The result:
land acquisitions have protected some 150 miles of river frontage. The Chattahoochee River
Greenway is metro-Atlanta’s first truly regional park system, with hiking and biking trails,
education centers, nature areas and parks, serving over 3.5 million people each year.
parks for people-LA
In 2005 the Trust for Public Land created “Parks for People-LA” to help solve Los Angeles’
open space crisis by creating 25 new parks over a five year period in the area’s most
underserved areas. Projects will range in scope from lot-sized community gardens to multiacre
recreation centers with athletic fields, picnic areas, and wildlife reserves. By helping
local communities access public funding, Parks for People-LA will exponentially leverage
its private sector support. TPL estimates that each dollar raised for Parks for People-LA will
be matched by five dollars from public sources-an instant five to one return, and exactly
the sort of partnership that makes government dollars more valuable than ever.
where we’re playing // outdoor industry association //

w h e r e w e ’ r e
h e a d e d
// www.outdoorindustry.org

engaging the induStry’S future
The Outdoor Industry sits on a solid foundation. More than 159 million people
over age 16—two-thirds of Americans—participate in outdoor activities each
year. Sales of outdoor products, including equipment, apparel and footwear,
have been on the rise since 2001, outpacing U.S. retail growth in 2004. Baby
Boomers (currently ages 42 to 60) and Millennials (currently ages 27 and under)
comprise the two largest segments of our participant base and the businesses
that cater to them are well positioned for growth in the years to come. Current
trends in the U.S. toward inactivity and obesity are opportunities for this
Industry to positively influence our nation’s health and wellness – the benefits
of an active outdoor lifestyle are more relevant now than ever before. But
outdoor recreation is not what it was 20 or even 10 years ago. Our customers’
needs and desires are changing; new sports and activities gain prominence as
participants realign their priorities; and new channels of distribution influence
consumers’ expectations and demands.
With change comes opportunity, but also some soul searching. Today’s Outdoor
Industry is not characterized by the granola vibe of the 60s and 70s. It’s no longer
exclusively about escape into the backcountry for extended periods of time. The
active outdoor lifestyle has gone mainstream – representing wellness, quality
time with family and friends, and a way to be outdoors in an urban center, in
the frontcountry and/or in the backcountry. As a result, the Outdoor Industry is
beginning to attract eyes and dollars from investors; consolidation within the
Industry and buy-outs by companies beyond its boundaries hit all-time highs in
numbers of deals in 2003. The momentum of transactions that have changed the
business landscape of the Outdoor Industry continued through 2004 and 2005.
“nearly 85 percent of americans ages 16 to 24
participated in an outdoor sport at least once
in 2004 — a total of 34 million young adults.”
— outdoor industry foundation participation Study
where we’re headed // outdoor industry association //

“the focus is changing from the activity to the
customer and their lifestyle.” — rob mitchell of SmartWool
Many new consumers don’t subscribe to the same vision that has long been the
Industry’s postcard image: snowcapped peaks, alpine streams and the honest
sweat that comes from hauling your home on your back. “The focus is changing
from the activities to consumers and their lifestyles,” says Rob Mitchell, Vice
President of Marketing and Product at SmartWool. Today’s evolving definition
of recreation sits closer to home and closer to family and friends. It is about
the active lifestyle; whether that means yoga, rock climbing, jogging through
the neighborhood or canoeing at the local lake. Many new consumers are
less “core” than before, compounding the Industry’s challenge to be relevant.
But these people represent opportunity. “It’s very harmonious,” Mitchell says.
“New relationships add dimension and help build dialog and conversations with
people who aren’t familiar with the Industry.”
It’s the common themes that our Industry represents that may bring disparate people
together: taking control of one’s health or fitness level, conserving and supporting
local greenways and parks and engaging in meaningful social interactions. Though
not necessarily healthier, Americans are more health-aware than ever before, and
they find value in the active outdoor lifestyle. To encourage participation and Industry
growth, we must rally as an industry around key areas: availability of land/waterways
upon which to recreate, strong outdoor ethos in the next generations and integration
of a variety of activities into the active outdoor lifestyle.
“people appreciate the outdoor look. outdoor apparel
and accessory companies are hot commodities
on the open market because investors think
outdoor style is going to grow.” – mark martin of marmot
// www.outdoorindustry.org
what will the outdoor industry
look like in 2010?
Industry professionals see a variety of activities
from yoga to surfing becoming a part of an outdoor
recreationalists lifestyle. Participants are beginning
to morph activities together—kayaking and sport
fishing, for example, or backpacking into a wilderness
destination and practicing yoga. People who lift weights
in the gym are getting their cardio on local trails.
Source Outdoor Industry Association online survey of 210 industry
professionals from member companies conducted December 2005.

the future of innovation
Groundbreaking new products have been the Industry’s
mainstay for more than 40 years. From sticky rubber to
synthetic fleece to hydration systems, Outdoor Industry
companies and participants have redefined the way
people get outdoors—and the comfort they have
while they’re out there. Looking forward, innovation
within our Industry may take a different form. Industry
professionals see innovation coming in a variety of
ways in the future.
Source Outdoor Industry Association online survey of 210 industry
professionals from member companies conducted December 2005.
industry professionals predict
strong sales of apparel and footwear
While our Industry’s product offering has always been
rooted in function, consumers are increasingly finding
fashion value in outdoor clothing and footwear. The
fact isn’t lost on Industry businesses. A recent survey
(fig. 3) showed positive predictions for sportswear and
footwear growth from Industry insiders.
Source Outdoor Industry Association online survey of 210 industry
professionals from member companies conducted December, 2005.
courting the youth demographic
Today’s young adults have their own culture, and while they have embraced
some traditional Outdoor Industry sports, they are also redefining what it means
to be active by taking up “action sports” like skateboarding, wakeboarding, and
surfing. Nevertheless, an Outdoor Industry Foundation published study shows that
nearly 85 percent of young American ages 16 to 24 participated in a traditional
outdoor sport at least once in 2004—a total of 34 million young adults. More
encouraging, young adults age 16-24 participate on average in more than
three activities—more than any other demographic group. As well, they do their
sports with increasing frequency. They’re not trying things and abandoning
them—they’re actively developing skills and getting out more often.
“the city or ‘burb’ kid — he’s definitely getting
outside, but he’s interpreting it in a different way.”
— tom campion of Zumiez outdoors
The challenge for an Industry that has long hung its hat close to the backcountry
trailhead is appealing to youth who aren’t already familiar with backcountry
outdoor sports and gaining relevance with those who dabble in a variety of
activities. “The city or ‘burb’ kid—he’s definitely getting outside, but he’s
interpreting it in a different way,” says Tom Campion, Owner of Zumiez Outdoors,
a national retail chain that sells action sports apparel and equipment. These sports
have seen huge growth among youth. Campion says they’re more than just sports.
“It’s music and lifestyle,” he says, “it’s innovative and immediate. You buy the
skateboard and it’s right there—you don’t have to venture far for adrenaline.”
Campion has a unique perspective on the similarities and differences between
outdoor and action sports and whether today’s wake boarders will become
tomorrows paddlers, mountain bikers and rock climbers. “In my family, yeah,
there’s cross-over,” he says. “My kids do action sports and outdoor sports
because that’s the way they were raised.” The question is what action sports
kids, who skew very young, will do as they mature. Campion admits that after
age 24, “they aren’t coming into my stores anymore.” It’s safe to say that with a
solid background in adrenaline inducing rail slides and backside airs they aren’t
just sitting on the couch. One of the Outdoor Industry’s central challenges is
introducing them to new sports that will become lifetime passions. “We need
to entice them to get up in the mountains or out on the water,” says Ric Long,
President of North American operations for the clothing manufacturer Helly
Hansen. “And it has to happen at the industry level, not the brand level.”
where we’re headed // outdoor industry association //

There’s already a good deal of cross-over between outdoor and action sports—
bouldering, kayaking, free skiing and single-track are aligned on a more traditional
outdoor sports trajectory, meaning they take place in a “wilderness” setting, yet
they tend to attract youth. John Mead, President of Adventure 16, a Southern
California specialty retailer, thinks that’s because they share a similar vibe with
action sports. “They’re about social interaction and mini-competition,” he says.
“It’s not a team contest. It’s ‘you do that and I’ll see if I can do it better.’” As well,
they can be done before dinner—a serious consideration for a demographic with
a whole lot going on. “These young adults, early 20s, 24 and up—there’s a lot of
competition for their time. They’ve got work, they’ve got school,” says Campion.
But in the same breath he says action sports youth are already predisposed to the
kind of fun there is to be had in the outdoors. They just see it a little differently.
“For me fun was backpacking,” he says. “For them it’s speed.” How young adults
define their connection to nature is less important than the fact that they actually
connect. The 2004 Outdoor Industry Foundation report confirmed that young adult
(16-24) outdoor participants value “outdoor connection.”
“If youth become accustomed to and familiar with open spaces and wild lands when
they’re young they’ll be disposed to respect and conserve them in the future. This is
a central challenge our Industry faces, but there’s much we can do to steer things in
the right direction,” says Jim Clark, CEO of Yakima Products.
redefining and energizing the active lifestyle
Traditional outdoor sports are one component of an active lifestyle, but there’s so
much more to our community, Industry and shared ethos. Health and wellness,
fitness, and action sports all fall under the active lifestyle umbrella, as do hunting
and fishing. Each has its own vibe and culture, but they share commonalities that
are central to the Outdoor Industry: conservation and expansion of recreation gems,
“[millennials] are about social interaction and mini-competition,
it’s not a team contest. it’s ‘you do that and i’ll see
if i can do it better.’” – John mead of adventure 16
// www.outdoorindustry.org
respect for the natural environment and for physical
health, and the simple joy of having places to recreate in
nature with friends and family.
These disparate activities and industries are growing,
and it’s becoming clear that they feed one another.
Already, demographics are less of a determinant in
what activities people pursue. Life stages are less
relevant. Lifestyles are more idiosyncratic. Kids who
skate, snowboard or ride BMX may also enjoy other
activities like road biking or climbing. Practitioners
of yoga may find that hiking is a compliment to their
wellness goals. People who get their exercise in the
gym may go trail running on the weekends. Anglers
hike to access their favorite fishing hole.
The prospect of the Outdoor Industry promoting the
active lifestyle agenda by itself seems a bit ambitious.
But we’re not alone. And we’re not swimming against the
tide. In the context of changes at the societal level—a
growing awareness of health issues and concern over
development of community open space, for example—
our message is compelling and timely. As OIA partners
with people and businesses within and outside the
Industry, and as we embrace a holistic vision of recreation,
we’ll find commonalities that allow us to work together
to build stronger support for active lifestyles. Inactivity
is a greater threat than inter-industry competition.

assuring places to recreate
People want places to recreate. A national survey
conducted in 2000 by the nonprofit Smart Growth
America showed that 83 percent of those polled
supported the establishment of zones for green
space, farming, and forests outside existing cities and
suburbs. The government says recreational visits to
federal lands have increased in recent decades—but
much of that traffic is to destinations like National
Parks and Forests. Backcountry lands and waterways
must always exist to provide escape from the urban
environment, but with increasing demands on our
time, many people also want recreation options closer
to home that they can enjoy in shorter blocks of time.
Americans want to get outside and be active while
having the option to do it locally and conveniently.
Accessible parks, open space and waterways near
our communities are integral to regular physical
activity. Support for close to home recreation at
the federal level—through dollar grants but also
renewed commitment among management agencies
to recreation and active use—is an important step in
reconnecting Americans with their health as well as
this country’s history. OIA is working to ensure that
there are funds in the Federal Highway Program and
the Land and Water Conservation Fund (LWCF) to
support state and local recreation development. As the active lifestyle industry,
we are positioned to motivate Americans to cherish and relish our public lands...
But before that we must work to maintain and increase the public places upon
which people can play. In part, that means broadening the definition of “play”
beyond the Industry’s traditional activities: the more people working together to
bolster our catalog of recreation lands and waterways the better.
According to the Department of the Interior, about a third of all land in the United
States is federally owned, comprising approximately 672 million acres. Four
agencies—the National Park Service, the Fish and Wildlife Service, the Bureau
of Land Management, and the Forest Service—manage about 94 percent of
those acres. With the exception of National Parks, certain parcels of National
Forest, and other specially managed areas, much of this land isn’t managed with
human-powered recreation in mind or as a top priority. They must be managed
for appropriate active recreation uses —an important consideration for a country
that sees obesity and inactive lifestyles as major challenges to national health.
“if youth become accustomed to and familiar
with open spaces and wild places when they’re
young they’ll be disposed to respect and conserve
them in the future.” — Jim clark of yakima products
where we’re headed // outdoor industry association //

www.outdoorindustry.org
f i n a l T h o u g h T s
The greatest thing about this industry is that every move
we make, every battle we fight to protect wild places,
every person we engage in outdoor activities contributes
to a healthier America. As an industry, we’re as strong
as ever—our sports and activities are the gateways
through which millions of people are introduced to the
outdoors. More than 150 million adults participate in
outdoor activities each year. As new sports emerge and
new participants discover the pleasure of zooming down
a single-track trail or walking beneath autumn leaves,
we will grow.
But perhaps “grow” is the wrong word. The Outdoor
Industry is evolving—and the Outdoor Industry
Association is helping it. Outdoor recreation is no longer
about escape, at least not in the sense that it was 20
years ago. Instead it’s an integral part of a healthy life—
something more and more people realize they need.
The pace of living seems faster, time seems shorter
and after 9/11 there’s a palpable sense that people’s
priorities have shifted. Living is more than existing—it’s
engagement. And the outdoors is our legacy to pass on
to the next generation.
“our heroes summit the highest peaks, scale the
steepest faces, and run the most daunting rapids,
but it is the millions of americans who find joy
simply by playing outside that fuels
our industry’s passion and potential.”
— frank hugelmeyer
president, outdoor industry association

about outdoor industry association
Outdoor Industry Association ® (OIA) is a national
trade association whose mission is to ensure
the growth and success of the Outdoor Industry.
A wide spectrum of leading manufacturers,
distributors, suppliers, and retailers of outdoor
recreation equipment and services, as well
as other related business entities make up
OIA’s membership. OIA programs include
representation in government/legislative affairs,
cutting edge market research, member cost
saving benefits and consumer outreach initiatives
to grow participation in outdoor activities
and promote healthier lifestyles. Educational
events include the annual Outdoor Industry
Rendezvous, Outdoor University, and the Capitol
Summit in Washington, D.C. Outdoor Industry
Association is the exclusive endorser of the
Outdoor Retailer tradeshow.
for more information go to:
www.outdoorindustry.org
or call 303.444.3353
a c k n o w l e d g e m e n T s
research ediTor Clint Wall
projecT manager Michael Lee
wriTer Jeb Tilly
design & layouT Moxie Sozo
phoTography Big City Mountaineers, John Evans, Outdoor Divas, Cody Downard, Ashley Davis
We would like to thank the hundreds of people in the outdoor business community who
contributed to this report. In addition, every member of the OIA staff provided valuable
insight and support for this project. Special thanks to Outdoor Retailer for their generous
financial support.
Portions of the research presented in the State of the Industry Report provided by
Outdoor Industry Foundation. A variety of sources were used in the development of this
report. For a complete list contact OIA.
Special thanks for the guidance of Outdoor Industry Association’s Board of Directors:
oFFiCers
chairperson Kim Coupounas – CEO, GoLite
firsT vice chair Jim Clark – CEO, Yakima
second vice chair Mike Wallenfels – President, Mountain Hardwear
Treasurer Dan Templin – CFO, VF Outdoor Inc.
secreTary Jeff Weidman – Co-owner, Rutabaga Paddlesports
pasT chairperson Lee Fromson – President, Cascade Designs
direCtors
Beth Brownlee – Regional Sales Director, Columbia Sportswear
Brian Cousins – CEO, Cloudveil Mountain Works
Peter Devin – Group Show Director, Outdoor Retailer
Jeff Espy – Publisher & CEO, Hooked on the Outdoors
Paul Fish – President, Mountain Gear
Paul Gagner – VP Sales & Marketing, Gregory Mountain Products
Larry Harrison – President, Earth Games LLC
Matt Hyde – VP of Merchandising, REI
Jeff Johnson – Director of Merchandising, Cabela’s
Rod Johnson – President, Midwest Mountaineering
Joan Keller – Owner, Le Travel Store
Bill Kelly – VP, Johnson Outdoors
Will Manzer – President, EMS
Angel Martinez – CEO, Deckers
Peter Metcalf – President & CEO, Black Diamond
Rob Mitchell – VP of Marketing & Product, SmartWool
Debbie Motz – Executive Director, EORA
Tony Post – CEO, Vibram USA
Roody Rasmussen – President & CEO, Petzl America
Beaver Theodosakis – President, Prana
Jay Steere – VP, Global Product Management/Outdoor Performance Timberland
Bill Sweasy – Chairman / CEO, Redwing
Skip Yowell – VP of Global Public Relations, JanSport
acknowledgements // outdoor industry association //

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4909 Pearl East Circle, Suite 200 | Boulder, Colorado 80301 | 303.444.3353 | © January 2006, Outdoor Industry Association

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S tat e o f t h e i n d u S t r y r e p o r t
2006