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InvestorTV spoke to some of surfing’s most influential characters to track the growth of an iconic Australian industry.
Phil Jarratt is an acclaimed surf author, editor and journalist who has followed the fortunes of the industry for four decades.
“The surf industry in Australian really got underway in the early ‘60s,” says Jarratt.
“Back in those days it was primarily a surfboard-based industry. There was very little clothing that went with it.
“I think the rise and rise of the surf industry has come as a huge surprise to its founders, who were just guys who wanted to go surfing all the time and didn’t want to have a regular job!”
By the 1970s, three clothing companies began to emerge as leaders of Australia’s rapidly expanding surf industry. These companies were Quiksilver, Rip Curl and Billabong. Phil Jarratt has watched these once-parochial ventures grow to become globally dominant, multi-million dollar brands.
“From (the ‘70s) these companies became multifarious, until by the mid ‘80s they had pretty much conquered the world,” Jarratt says.
“And certainly since the beginning of the ‘90s, Quiksilver, Rip Curl and Billabong – all Australian brands – have been at the forefront of the surf industry globally, and now represent more than 50 per cent of it.”
Bruce Raymond is Quiksilver’s Global Brand Ambassador and its former CEO. He says that the surf industry today is worth between $7-10 billion. However, like Phil Jarratt, Raymond remembers much leaner times.
“I can remember when out sales were $10 million globally,” says Raymond. “And we used to write letters and have a two week turnaround for issues, and have plenty of time to surf in between.
“Thirty years ago I couldn’t afford to drive on toll ways because we didn’t have the money when we were trying to sell board shorts,” Raymond continues. “And look where it is now!”
A knock-on effect of this financial success story has been the big three’s ability to patronize global surfing competitions, turning what was once a pastime into a professional sport.
Mark Richards is one of Australia’s most celebrated surfers, winning four consecutive World Championships from 1979 to ’82. He says that life on the World Tour today is very different from the one he remembers.
“Sean Thompson’s just released a movie called Bustin’ Down the Door – which is the story of the formation of the World Pro Tour in ‘74, ‘75 and ‘76,” says Richards.
“Back in those days pro-surfers, for want of a better word, were happy to win a free pair of board shorts, and there was no sponsorship and very little money in the events. These days the top surfers are making fairly phenomenal amounts of money, and get to travel a circuit where the organization is incredible.
“I guess we saw it go from this little cottage industry to this world-wide gigantic sport which is pretty incredible to see,” Richards says.
“We had a dream when we were growing up that one day you could say you were a pro surfer and walk down the street with your head held high, and that’s well and truly the case these days.”
Steve Kay is the CEO of Rip Curl Asia Pacific, and says that his company has maintained double digit sales growth every year for the past three decades. But he says the industry’s growth pattern is changing.
“In some countries like Australia and to a lesser degree the USA, surf is now a very mature industry,” says Kay. “And certainly the room for the very high levels of organic growth that we saw in the ‘90s here in Australia probably can’t be sustained.
“However the reality is that there are countries where surf has just been established and so the opportunity globally for continued growth is very strong.”
The big three companies continue to dominate the clothing market, but Bruce Raymond believes they have not smothered the industry and that there are still plenty of opportunities for new business to grow.
“Just look at the new stand up paddle surfing,” says Raymond. “It’s creating so much opportunity for young start up companies to fulfill a niche. We’re not going to start manufacturing and selling stand up paddle boards – so we encourage those entrepreneurs and those cottage industries that start up because they’re complementing what we do.”
New fads and younger companies may now be diversifying the surf industry. However Quiksilver, Rip Curl and Billabong continue to provide the main financial impetus behind the sport, sponsoring seven out of 10 of the world tour events to ensure that pro surfing continues to prosper.
Bruce Raymond is emphatic when he says that these giant companies continue to hold the sport of surfing close to their hearts.
“The big three surfing brands and surfing are joined at the hip and what’s good for surfing is good for those businesses and vice versa,” says Raymond.
Phil Jarratt is equally insistent that the success of surfing’s big three names has not distanced them from their roots.
“There are surfers at the top, or near the top, of each of those three companies,” says Jarratt. “Derek O’Neill, CEO of Billabong globally, is a mad keen surfer, and the Quiksilver and Rip Curl guys also in their management hierarchy have plenty of surfers.
“I think as long as those people are in there – as long as it’s not all shiny pants and slide rules - then surfing will be enriched by the surf industry.”
Phil Jarratt is an acclaimed surf author, editor and journalist who has followed the fortunes of the industry for four decades.
“The surf industry in Australian really got underway in the early ‘60s,” says Jarratt.
“Back in those days it was primarily a surfboard-based industry. There was very little clothing that went with it.
“I think the rise and rise of the surf industry has come as a huge surprise to its founders, who were just guys who wanted to go surfing all the time and didn’t want to have a regular job!”
By the 1970s, three clothing companies began to emerge as leaders of Australia’s rapidly expanding surf industry. These companies were Quiksilver, Rip Curl and Billabong. Phil Jarratt has watched these once-parochial ventures grow to become globally dominant, multi-million dollar brands.
“From (the ‘70s) these companies became multifarious, until by the mid ‘80s they had pretty much conquered the world,” Jarratt says.
“And certainly since the beginning of the ‘90s, Quiksilver, Rip Curl and Billabong – all Australian brands – have been at the forefront of the surf industry globally, and now represent more than 50 per cent of it.”
Bruce Raymond is Quiksilver’s Global Brand Ambassador and its former CEO. He says that the surf industry today is worth between $7-10 billion. However, like Phil Jarratt, Raymond remembers much leaner times.
“I can remember when out sales were $10 million globally,” says Raymond. “And we used to write letters and have a two week turnaround for issues, and have plenty of time to surf in between.
“Thirty years ago I couldn’t afford to drive on toll ways because we didn’t have the money when we were trying to sell board shorts,” Raymond continues. “And look where it is now!”
A knock-on effect of this financial success story has been the big three’s ability to patronize global surfing competitions, turning what was once a pastime into a professional sport.
Mark Richards is one of Australia’s most celebrated surfers, winning four consecutive World Championships from 1979 to ’82. He says that life on the World Tour today is very different from the one he remembers.
“Sean Thompson’s just released a movie called Bustin’ Down the Door – which is the story of the formation of the World Pro Tour in ‘74, ‘75 and ‘76,” says Richards.
“Back in those days pro-surfers, for want of a better word, were happy to win a free pair of board shorts, and there was no sponsorship and very little money in the events. These days the top surfers are making fairly phenomenal amounts of money, and get to travel a circuit where the organization is incredible.
“I guess we saw it go from this little cottage industry to this world-wide gigantic sport which is pretty incredible to see,” Richards says.
“We had a dream when we were growing up that one day you could say you were a pro surfer and walk down the street with your head held high, and that’s well and truly the case these days.”
Steve Kay is the CEO of Rip Curl Asia Pacific, and says that his company has maintained double digit sales growth every year for the past three decades. But he says the industry’s growth pattern is changing.
“In some countries like Australia and to a lesser degree the USA, surf is now a very mature industry,” says Kay. “And certainly the room for the very high levels of organic growth that we saw in the ‘90s here in Australia probably can’t be sustained.
“However the reality is that there are countries where surf has just been established and so the opportunity globally for continued growth is very strong.”
The big three companies continue to dominate the clothing market, but Bruce Raymond believes they have not smothered the industry and that there are still plenty of opportunities for new business to grow.
“Just look at the new stand up paddle surfing,” says Raymond. “It’s creating so much opportunity for young start up companies to fulfill a niche. We’re not going to start manufacturing and selling stand up paddle boards – so we encourage those entrepreneurs and those cottage industries that start up because they’re complementing what we do.”
New fads and younger companies may now be diversifying the surf industry. However Quiksilver, Rip Curl and Billabong continue to provide the main financial impetus behind the sport, sponsoring seven out of 10 of the world tour events to ensure that pro surfing continues to prosper.
Bruce Raymond is emphatic when he says that these giant companies continue to hold the sport of surfing close to their hearts.
“The big three surfing brands and surfing are joined at the hip and what’s good for surfing is good for those businesses and vice versa,” says Raymond.
Phil Jarratt is equally insistent that the success of surfing’s big three names has not distanced them from their roots.
“There are surfers at the top, or near the top, of each of those three companies,” says Jarratt. “Derek O’Neill, CEO of Billabong globally, is a mad keen surfer, and the Quiksilver and Rip Curl guys also in their management hierarchy have plenty of surfers.
“I think as long as those people are in there – as long as it’s not all shiny pants and slide rules - then surfing will be enriched by the surf industry.”
