Fresh start or more of the same?
Industry executives enter 2024 much like the beginning of any new year, wondering if the same challenges that hampered their businesses in the prior year will continue or if market conditions will bring about a new – perhaps more upbeat – story.
SES asked executives from around the action sports world to assess: What’s your company’s greatest challenge and greatest opportunity in 2024?
Here’s what they said:
Brian Garofalow, CEO, Skullcandy
Brian Garofalow. Photo courtesy of Skullcandy.
“Our greatest challenge for ‘24 remains uncertainty in the economy and how that impacts our ability to forecast and execute longer-term initiatives. In our category, we have to make big bets on a small amount of SKUs with long lead times.
“In the U.S., student loan debt repayment should continue to be a significant issue; just a few weeks ago, the Fed signaled potential interest rate decreases coming; and, of course, we have an impending presidential election. Ideally, the Olympics could provide a bit of a boost to the board sports industry in France, broader EU, and globally. I really hope there is a positive outcome for how surfing in the Olympics is shared with the globe and that the event is produced with no negative impact to the environment and local community.
“Our greatest opportunity for ‘24 is revitalizing our brand. Skullcandy is the original board sports lifestyle brand in the consumer electronics space. Somewhere along our journey, we veered a bit off our path. We’re returning to where we should be with the brand, just accelerating our speed on the right path. We know we can win back a large consumer base who ‘used to’ love us, but haven’t paid attention to us for a while, and at the same time introduce the Skullcandy brand to new consumers with our authentic board sports brand, and modern and really, really amazing products. (Have you tried the Crusher ANC 2 yet?!).
“In ‘23, we introduced a collection of products to specialty retailers around the world that helped us to build Skullcandy 20 years ago and they welcomed us back with open arms. We’re so very grateful for that opportunity and are now looking forward to investing more in helping to build the community the best we can.”
Josh Barrett, global general manager, Rhythm
Josh Barrett. Photo courtesy of Rhythm.
“Rhythm’s biggest challenge internally is controlling our growth and having the correct resource allocation plans in place to support the expected growth. Externally, one of the biggest challenges likely remains around surplus inventory in the marketplace as well as the general market conditions.
“Our biggest opportunity is to continue developing the Rhythm brand name and the momentum we currently have in the U.S. marketplace.
“We have worked hard to be in the position we are currently in – as a recognized brand that performs well in-store and that values our retail partnerships. Extracting value, increasing our in-store presence, and driving controlled growth is our focus.”
Michael Akira West, founder, 686
Mike West. Photo courtesy of 686.
“Greatest Challenge: The financial well-being of our largest retail partners.
“Greatest Opportunity: Being the best version of ourselves.”
Donny Emler Jr., marketing/apparel director, FMF Racing
Donny Emler Jr. Photo courtesy of FMF.
“I think 2024 is going to be a tough, tough year for everyone. I don’t think we’ve really seen the full bottom yet. Speaking just on the motorcycle space, it’s definitely leveled down to where it was prior (to COVID) – if not even more.
“With that said, I think a company like FMF is in a really good spot being that we are a privately-held company. On the apparel side, it is kind of an unknown. We’re going to see a lot of changes and we’re going to see who can weather the storm.
“In the motorcycle space, you see when people don’t have enough money to maybe go buy a new motorcycle, they do have money to fix up their old motorcycle. People don’t want to have an exhaust that looks old and dented up. So, they might not spend $12,000 on a new motorcycle, but they’ll spend a few grand and fix up their bike. We make product for everyone, from kids all the way to adults. So, I see a company like us maintaining at a very good level.”
Dave Root, president, Carver Skateboards
Dave Root. Photo courtesy of Carver.
“I think our greatest challenge is the fact that we’re facing multiple concurrent challenges across the globe within the skate hardgoods category. It’s been a complex task operating through this slower period for skateboarding, which ultimately has been caused by multiple shifting socioeconomic factors. These shifts have caused a variety of overlapping difficulties, requiring a range of open-minded strategies. There is still a lot of discounting going on in the category, still some healthy overstocks, a heightened price sensitivity from inflation, reduced buying power internationally due to the strength of the US$, broader economic challenges in some key regions, the list goes on.
“Our greatest opportunity heading into 2024 is the refined business our team has been building to manage these challenges, coupled with the great relationships the Carver team has forged in the industry after nearly 30 years of support and participation with incredible retailers, brands, athletes, and organizations. We are looking to come through stronger in 2024 with focus, efficiency, and a whole bunch of stoke. As a stronger business with deep roots, we’re very optimistic about what we can achieve in 2024.”
