All washed up: have surf megabrands forgotten their roots?

Abstract

Yesterday's announcement that iconic brand Rip Curl plans to sell-up raises the question: just what has happened to Australia's iconic surf brands? It has been well publicised that the big three surf labels - Rip Curl, Quiksilver and Billabong - have experienced shrinking sales and expanding debts. Suburban consumers have turned away from expensive surf-branded apparel. Coupled with the rise of online shopping, doubts are growing about the future viability of corporatised surf brands. Raw economics certainly matters to the surf industry. The big three have been hit hard by recession in the United States and Europe, where they have concentrated most of their retail investment. Their timing was terrible. Just before the GFC, Quiksilver and Billabong both expanded their business operations. Billabong bought up a substantial number of surf retail outlets. Quiksilver acquired, and has since had to sell, a series of non-surf leisure brands - including Rossignol skis and Cleveland Golf equipment. Expansion added huge debts, which became difficult to finance when retail returns evaporated.