It’s entirely too-soon to make any predictions as to the overall business climate for 2020, but not premature to say that early indications would indicate pretty good times to come. That’s based on a lot of factors: early introduction of new products and their enthusiastic acceptance by distributors and dealers, general consumer interest in new gear and opportunities to enjoy them, and an economy that might be described by some as fragile, but seems to keep chugging along.
Despite the well-documented contractions of many big brick-and-mortar operations, the industry seems to be holding its own. Having survived the bankruptcies of a couple of major distributors, others have stepped up to fill those gaping holes. Granted, the capital they took out of circulation is gone, but it appears others are picking up the customers who were, essentially, abandoned.
The first indications of the positive energy came in yesterday from the Big Rock Sports show. Held this year in Nashville, Tennessee, Black Rock’s regarded as the biggest show before SHOT -at least from a retail perspective. According to everything we’ve heard, the manufacturers were very happy with the results. “Attendance was up,” we were told, “and it appears many retailers who took a wait-and-see attitude last year saw the light and made the journey.”
That’s good news for Big Rock, the more than 110 companies, and consumers whose retail locations are Big Rock customers. We heard there were lots of “deals” being offered, and those not only offer retailers opportunities to gain a little margin, it gives them opportunities to offer deals to their customers.
Can’t see a loser in that scenario.
Later this morning, the Archery Trade Association’s Show kicks off in Indianapolis, Indiana. Through Saturday, archery retailers will have the chance to see, feel, touch -and buy- the latest archery gear. Today the media won’t be on the actual show floor. If that idea proves successful, it may encourage other events to have periods of limited or no-media access. I
t’s no secret that the media seem to have overwhelmed some trade events. And trade events, by definition, are supposed to be about writing orders, not doing interviews.
People we’ve spoken with in Indy say they’re “cautiously optimistic,” but waiting to see how show traffic is before they get excited.
Despite highly successful outreach programs like NASP and S3DA, archery has had its share of business challenges the past few years. With this being an Olympic year, it should mean more attention, which should translate to more new shooters - and (hopefully) additional sales- none of which would be unwelcome.
Judging from the quantity of releases and announcements we’re seeing this year, 2020 seems to be shaping up as the year manufacturers realize that the best way to pickup moribund sales might be introducing new products, not discounting.
That “race for the basement” pricing strategy seldom seems to work, but seems to be the first “strategic move” for many companies when . Discounting is never a long-term preventative for anything except success.
From an inside observer’s standpoint, 2020 may be one of those pendulum years.
We’re seeing a growing number of companies changing PR/Marketing/Creative agencies -some severing longstanding relationships, or simply bringing those areas back in-house.
It’s another of those business areas that seem to be cyclic. The major difference today is the fact that work has been getting less expensive at most agencies. OK, the price hasn’t actually gone down, but the amount of work expected for the dollars has gone up- significantly. In Madison Avenue terminology, the Scope of Work (SOW) has changed. So, too, have the Agency of Record (AOR) relationships.
Some of the changes make perfect sense. The Scope of Work, for example, had to change due to the rise of digital/social media. If an agency was going to get a project, they were expected to include that into the package. And despite the insistence that it’s the “secret sauce” to creative campaigns, agencies have yet to bring any real proof to the table (in the form of sales results) to warrant price increases. So, the SOW expanded to cover it- and creatives were stretched thin to make that work happen.
And Agency of Record relationships have become scarce because today’s agencies appear to lack the “best in class” expertise across the diversifying areas that makeup a total campaign.
Is taking your account in-house the answer? Not presuming to have that answer, but I do “get” the fact that dissatisfaction with “results” leads to the search for better answers. To some, a $60,000/year social/digital media addition might look like a bargain compared to spending $200,000 to an agency. But the agency brings experience in strategic thinking, market research and media planning that may be the difference between “wow” or “meh” campaigns.
Like the wheels on the proverbial bus, I’ve seen this go round-and-round in several industries. There’s never a permanent solution when you’re chasing the most elusive migratory game: consumers.
But we’ll keep you posted.
—Jim Shepherd