Wakes still driving towed watersports

The summer of 2014 has given the industry a great look at the state of watersports. Despite the long, rainy spring, the weather was good enough to get a real taste of what the watersports segment was doing.

According to the Sports & Fitness Industry Association participation reports from 2013, the two historically most popular watersports – wakeboarding and water skiing – dipped some. But the brutal polar jet stream made for an ugly weather pattern that kept large swaths of the country indoors, far from the water and further from their towropes.

Companies in the watersports segment have better news for 2014, and even water skiers have a little something to celebrate.

Surf City

Dust off the Dick Dale and the Beach Boys records, everybody’s surfing now – wakesurfing specifically.

Wakesurfing is nothing new, in fact ocean surfers have been toying with the idea since the Beach Boys were just learning to sing, but the many innovations wake boat manufacturers have put into their newer offerings made the sport the predominant wake activity.

“It’s amazing to see what the boat manufacturers have done in terms of research, money and time they have invested in ways to shape a wake for wakesurfing,” said Larry Meddock, chairman at the Water Sports Industry Association. “I just think it’s interesting that every single boat manufacturer, that are what we consider sport-specific tow boats, have invested incredible engineering hours and product design and product development hours into enhancing the shape of the wake. That’s never been seen before.”

The investment from wake boat manufacturers has paid off. According to the market research company Info-Link, towboats had a great 2013, despite the weather. Sales were up 12.3 percent, leading growth across the industry by 3.7 percentage points ahead of outboards.

Daniel Gutierrez, director of design and marketing at Tigé boats said the interest in wakesurfing is one part of the towboat success story. He said during their Endless Wave Tour, everybody wanted to learn wakesurfing, actually drawing crowds from their pro contests.

“We’re seeing lots of families. As a matter of fact, we sold out an entire weekend of demos. We ended up having a huge turnout, and it was just family after family after family. They all just wanted to learn to wakesurf properly,” said Gutierrez.

He said they were also able to track several boats sold solely on wakesurfing’s popularity at the demo days.

“We had an ASR that just sold because this guy was excited that it was the only boat that his daughter had ever been able to throw the rope in and wakesurf without the rope. And he said, ‘That’s it,’ and bought a boat,” said Gutierrez.

He said that consumers who buy wake boats might have bought other designs, but the popularity of the activity guides their decision.

“The interest in wakesurfing has carved out our niche as the only way you can do it. So, if anyone is at all interested, they have to come to our segment of the industry whereas wakeboarding in the past, you could put a tower on any boat and call it a wakeboarding boat,” said Gutierrez.

MasterCraft president and CEO Terry McNew said at the launch of their new X20 wake boat that wakesurfing will continue to drive boat sales.

“Wakesurfing is a growing trend that also brings with it a whole new culture and enjoyment. We recognize this and want the experience to be as fun on the water as it is for the audience in the boat,” said McNew.

The fact that just about anyone can do it also keeps the demand for surf-focused offerings high.

“We have people sending us pictures of grandparents surfing tandem with their 10-year-olds. Anybody can do it, it’s low-impact, you’re going 11 miles an hour,” said McNew.

He said MasterCraft is making an easy bet on wakesurfing-tailored innovations.

“This is not a one-time wonder, I think the segment will continue to do well for the foreseeable future,” said McNew. “I would not be surprised to see double-digit gains in the next few years at least.”

Sporting goods manufacturer Aaron Kramer, CEO at Kwik Tek Inc., said they were pleasantly surprised by the reception of wakesurfing.

“I think it’s limited because only certain types of boats can wakesurf safely, but we introduced a wakesurf board and we were surprised by how many orders we got,” said Kramer. “I think that’s definitely a growing sport.”

He said that a big draw for older boaters is that it’s the lowest-impact wakesport out there.

“I do it personally; I find it to be the geriatric water activity of choice because there is no wear and tear on your body,” said Kramer.

Meddock said safety concerns that had drawn interest from law enforcement have been also been assuaged by research and education, making the activity even more attractive as the safest (mostly) towed watersport out there.

“The concern was that wakesurfing had a carbon monoxide issue, that proved to be a non-issue,” said Meddock. “We have worked with Dr. Bob Baron out of Nevada – he works for a hospital out of Las Vegas there.  He is one of the preeminent authorities on carbon monoxide.”

Social Sells

The dominant trend in the watersports segment continues to be social activities.

Meddock said the social aspect was a big factor in the original rise in wake sports.

“The reason wakeboarding became so popular – one of many reasons – is that it was so social,” said Meddock. “Waterskiing, you had to tell everyone to stay on the dock when you went and skied because you wanted the wake to be small. Now you have an activity where you say, ‘Bring as many people as you can legally fit on that boat because it will increase the size of my wake – and I’ll have a bigger audience to show off in front of.’”

Of course, wakesurfing is even closer to the boat and the group.

“People are so into it because one, it’s low impact and two, it’s just fun. You’re close to the boat, so everyone in the boat feels a part of the action,” said Pete Surrette, general manager at O’Brien Water Sports.

Surrette said the fact that wakesurf boards are one of the best selling hard goods they offer – still slightly behind their wakeboards – is a sure sign that the social sports are a huge draw for boaters.

Both Kwik Tek and O’Brien Water Sports said their multi-person tubes are best-selling products. Both companies are pushing the social aspect with their 2015 and 2016 catalogues by offering towed tubes and other products that can hold multiple people at once.

Cable parks continue to grow

Once seen as a direct competitor to boating, cable parks are proliferating across the country as U.S. dealers find new synergies with the parks.

“If there’s a trend that we’re really excited about it’s the development of the cable parks,” said Meddock. “The boat companies are now embracing the cable parks , the board companies are, of course, embracing the cable parks with on-site pro shops. It’s opened up a whole new revenue stream for everybody.”

Pete Surrette at O’Brien Water Sports said the shift in gears has translated into an entire new market for their cable park-focused goods.

“Cable parks have had a huge impact in Europe for a number of years. We have a lot of product that is specific for cable parks that up until the last couple years have only been sold in Europe,” said Surrette. “We’re still very much in infancy here compared to Europe, but we do see it growing.”

Nautique was one of the first boat manufacturers to recognize the power of cable parks as a feeder pool into the boating market, though they’re the first to admit it’s not going to sell more boats overnight.

“The cable watersports market is growing fast and we have entered it with two parks in Florida and many more to come,” said Bill Yeargin, president and CEO at Nautique. “It is a great way to introduce people to watersports and develop them into boat buyers. However, it is a long-term view.”

He said cable parks are breathing new life into the watersports market.

“Wakeboarding and wakeskating are a lot of fun and revitalized the watersports market over 15 years ago,” said Yeargin. “It is what cable is doing today.”

Kevin Michael with Malibu Boats said cable parks have been instrumental in introducing people to wakesports.

“Absolutely cable parks have helped. We work with a park in Texas called TSR (Texas Ski Ranch) and they are also a Malibu dealer,” said Michael. “What happens is people get introduced to wakeboarding for the first time, people that maybe don’t have access to lakes.”

He said their approach makes it easy for cable park enthusiasts to get out on the open water behind a boat.

“They see the boats at the dealership and want to try it. There’s a boat lake right there too, so they try it and they realize the boating experience is better for family and friends than anything else,” said Michael. “That’s why it’s not competitive with what we do, because we do see a lot of people embracing the boating lifestyle who started out as cable riders.”

Tigé boats is also championing the more than 40 U.S. cable parks – up from just 25 in 2013.

“We believe that the cable parks gives access to watersports that you wouldn’t otherwise would have had access to in neighborhoods or cities – we back that entirely,” said Gutierrez.

Grabbing young people’s attention in the cable parks will also push wakeboarding and wakeskating forward by simply giving kids a place to practice without the liability of a boat. Keeping the sport healthy holds attention and draws in more and more action sport enthusiasts.

“If you look at the pro wakeboard tour, the junior pro division is very healthy – kids 14 to 18,” said Michael. “Whenever you see a sport with growth at younger ages, you know that that’s a sign of vitality.”

Giving that “wow” factor in wakeskating is a massive marketing win for watersports as a whole, even if it might not sell many boats.

“Wakeskating is so hard for your average consumer, I don’t think it sways a boat sale. But from a credibility standpoint, from respect from other industries and just acknowledging something else happening behind a boat,” said Gutierrez. “It keeps things interesting. We’ve had more wakeskate videos in our industry go viral than other video.”

Though the majority of wake sport pros have come from boating community, some have already come from the cable parks.

“The best evidence we have is Adam Errington, one of our pro riders, whose very first boat he ever owned was a sponsored Tige,” said Gutierrez.  “He started off on the cable, that’s where he learned, that’s where he got better.”

Watch for a lot more cable parks popping up in the U.S. in the coming years.

“I expect other boat makers to buy cable parks in the future,” said Meddock. “To have 100 cable parks in the United States within the next three to five years is not out of the question. I think there’s more cable park under development than anybody realizes because they’re being drafted and developed in secret.”

Skiing resurgence?

For the most part, watersports has maintained a trajectory set several years ago, but one surprise is a hint that water skiing might be coming back after being all but forgotten in the wake of all the new towed activities.

It might not be time to break out the champagne, as Meddock with the WSIA explains.

“Are they sliding back still? No. I think you’ll find that most of the ski companies will gladly tell you they’re seeing numbers they’ve never seen before,” said Meddock. “I think it’s fair to say the ski guys are celebrating.”

The shift may be due, in part, to the original skiing generation’s kids finally able to drive the boat.

“The generation that started waterskiing when it was the only option are now the generation getting back into inboards,” said Gutierrez. “And now they’re not just the boat driver anymore, so they get to be active.”

Ski makers said they’re seeing OK numbers, but are betting that skiing will continue to come back with the economy.

“We are seeing some slalom ski sales, especially the mid-priced skis — they’re flat — they’re not increasing or declining. I think once the economy comes back, we’re going to see that rise a bit,” said Surrette.

He went on to say that just as the divide between downhill skiers and snowboarders narrowed, the divide between water skiers and wakeboarders is less antagonistic.

“I think the kids that got into wakeboarding quite a few years ago, they’re now getting a little bit older and seeing what their moms and dads did and they are trying it. They’re seeing that there is a fun level to it,” said Surrette. “It’s not the ‘them against us’ feel that it used to be.”

Look for some more options for low-priced skis in the 2015 season as manufacturers look to bring new skiers back into the market and the economy becomes less anemic.

“I would argue that our new ProStar that was released late last fall has kind of created a renaissance; we’re seeing water skiing come back in a very strong way,” said MasterCraft’s McNew. “I feel like the older generation’s exuberance has been reinvigorated and that is catching the ear of the younger people.”

Despite the glimmer of hope in the segment, there is certainly a long climb ahead for skiing.

Unfortunately for skiing, they took such a huge hit that any improvement in unit sales is seen as great news.

“If you aspire to be an accomplished water skier, you cannot be dealing with other boat wakes on a body of water. You have to have calm water. And that will never change,” said Meddock, a retired tournament skier himself. “It’s been my experience that people, as a rule, follow the path of least resistance and follow what’s socially cool to do. And the board sports dominate that, there’s no changing that.”

Tubing still dominates

Though few wakesport superstars are keen to admit it, tubing is still the No. 1 watersport by participation. The ease, the fun and the low cost keep the tried-and-true activity going strong.  New offerings in the segment are also keeping interest high.

“Tubing is still the big daddy of them all,” said Meddock. “People don’t want to talk about it — everybody will brag about wakeboarding is X percent and waterskiing is X percent, but tubing has them all beat.”

Despite all the success and hype surrounding wakeboarding and wakesurfing, tubes are still about 40 percent of the market for towed watersports – with wake sports coming in a distant second.

“Tubing by far is the No. 1 in participation in behind-the-boat watersports followed by wakeboarding,” said Kramer at Kwik Tek.

The stats surely go against all the current marketing of towable watersports as action sports, but you just can’t beat the fun and ease of whipping a tuber around behind the boat.

“If you’re an athlete, it’s kind of hard to swallow that at the end of the day, the guy being drug behind the boat on a tube is the dominant market segment of towed watersports, but it’s true,” said Meddock, emphasizing that there’s no learning curve, it’s social and anyone can do it. “Just hook up a tube and away you go. But it’s social, nobody has to have any talent, if someone is overweight it’s a lot easier to get in a tube, still get wet and still have fun.”

Even boaters in their new wake boats keep a tube on hand.

“From Tigé’s perspective, how we approach it is we just sell to active families,” said Gutierrez.  “I could say wakesurfing is the most critical to us, but I was just out on the lake a couple weeks ago on a lake in which I saw people with a brand new Tige and they tubed all day long.”

 

Non-Towables

Non-towables are bringing non-boaters into marinas more than ever before. New activities and high-quality goods are growing the segment, adding some incremental sales opportunities and drawing crowds from department stores.

“This year, we came out with an item called the Water Carpet. It’s basically a piece of foam that is 16 by 18 feet, and the kids absolutely love it,” said Pete Surrette at O’Brien Water Sports. “Sometimes it’s the simplest things that make the biggest splash.”

Just about everyone has seen paddleboards, some urban lakes are simply swarming with people young and old. Initially, it took a fair amount of balance, but new boards are making the activity easier for everyone.

“We have a new paddleboard that I really enjoy called the SS Super Stable. It’s a three-chambered inflatable paddleboard so it’s very, very stable which is great when boats are going by,” said Aaron Kramer at Kwik Tek. “It’s really enjoyable for the beginner and larger people over 240 pounds.”

Kayaks, canoes and a slew of comfortable floatation devices are also giving people the chance to get in the water who might not be able to afford a powered boat. Such goods are a great way of getting people into the dealership and starting a relationship.