Sports Insight

Q4 - December 2018

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24 • Sports Insight ~ December 2018 sportsinsightmag.com Altra and Hoka One One are change agents in running. It's the bottom of the shoes that's turning heads with innovation. Observers hope trade tensions thaw enough to prevent the escalation of tariffs. Technology that Sneaks up on You Stand Out and Break the Mold Trade Uncertainty INNOVATION IS STILL the Holy Grail in the sporting goods industry. Sometimes it's overt, sometimes it's eye-catching and sometimes it sneaks up on you. In the outdoor footwear market, as flashy as footwear can be, it's the bottom of the shoes that's turning heads in 2019. Of note is the expansion of Vibram's new Litebase technology into more styles from the likes of Scarpa, Dynafit and Salomon. Litebase is one of our picks as a gamechanger because it not only improves the product for the consumer, but also makes an impact for the design team and on the eco impact of products. What is it? Vibram Litebase is a high-performance outsole construction that allows a reduction in the thick- ness of the material used. It results in a 25 percent savings in weight without losing any performance or protection, according to Vibram, and it allows for a reduction of about 40-50 percent in thickness, from 1.7 mm to 0.5/0.9 mm depending on the type of sole. The result is a very light sole that retains the characteristics of traction, duration and wear resistance. — Cara Griffin MAKE INNOVATIVE PRODUCT, market it right, price it right and distribute it in an intelligent manner and you may find success. Wait, does that sound like an old-fashioned rule of thumb? Perhaps, but it's one way brands such as Hoka One One and Altra have managed to break into and excel in the competitive performance running world. Next to keep an eye on: both Hoka and Altra are making moves into the hiking boot world. These young brands are change agents in their category. Hoka One One was founded in 2009 and first grabbed atten- tion for its oversized "maximal" outsoles, but just as the brand has seen some of its designs moderate, it has also seen others in the industry follow its "max" design philosophy. The brand was acquired by Deckers in 2013. Altra, founded in 2009, has made its mark as a "zero drop" spe- cialist. It was acquired by VF Corp. this past April. ICON Health and Fitness had previously acquired Altra in 2011. Both brands are favorites of trail runners and hikers. In Fall 2019, Altra will launch its first hiking boot, the Tushar, expected to weigh in at 16 ounces and retail for $199. Also of note is Altra's Superior 4 for Fall 2019, the lightest version of the brand's popular Superior trail shoe yet at 7.9 ounces for men and 6.6 ounces for women. Hoka One One's 2019 offerings include the Sky Series, with styles rang- ing from a superlight hiking boot to a high-top trail run shoe. Sky Series styles include the Sky Kaha boot for maximal hiking; the Sky Arkali for vertical hiking; and the Sky Toa for fast hiking. — Cara Griffin ESCALATING TRADE tensions between the U.S. and China that have persisted throughout 2018 aren't likely to melt away anytime soon, but market observers hope they thaw enough to prevent the escala- tion of 10 percent tariffs on $200 billion worth of China-made goods to 25 percent on January 1. A prolonged U.S.-China trade war would undoubtedly raise prices on impacted mer- chandise categories, including sport coolers and sport chairs, and force vendors and retailers to pass along their higher costs from the higher duties or lose margin by maintaining pricing. Ahead of the Nov. 30-Dec. 1 G20 Summit in Buenos Aires where Pres. Trump and China Pres. Xi were scheduled to talk, many companies had already begun establishing contingency plans for a lengthy trade battle between the world's two largest economies. According to a U.S. Chamber of Commerce survey, less than 3 percent of companies are considering an out- right withdrawal from China as a supply source. Instead, look for other countries in Asia, namely Vietnam, Malaysia and Cambodia, to become bigger manufactur- ing hubs and lessen the reliance on China. It would take 3-5 years for a company to engineer a complete withdrawal from China. — Bob McGee T H E G A M E C H A N G E R S

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