Spring - InsideOutdoor Magazine
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<strong>Spring</strong> 2011<br />
www.insideoutdoor.com<br />
INTO THE<br />
CLOUDS<br />
CLOUD COMPUTING AND<br />
THE FUTURE OF RETAIL<br />
OutDoor Europe<br />
Product Showcase<br />
CAMPING’S<br />
RECOVERY<br />
Eco-Foams<br />
Printed on 100%<br />
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Blocks the sun, rain and<br />
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Seasonal styles avaliable
C O N T E N T S<br />
<strong>Spring</strong> 2011<br />
14<br />
Departments<br />
DATA POINTS<br />
8 NUMBERS WORTH NOTING<br />
Mobile’s message; social roles; ads with impact; advancing<br />
LP; cries for help; and more<br />
RETAIL TECH BYTES<br />
20 eBay in-store; Geigerrig plays tag<br />
21 Google’s big wallet; outdoor surveillance<br />
23 QR decoded; Carhartt gets SaaS<br />
24<br />
BACK OFFICE<br />
36 TAKE IT TO THE BANK<br />
Improving your banking relationship<br />
GREEN SHEETS<br />
38 MATERIAL GAINS<br />
Eco updates from NWAFMA<br />
By Ernest Shiwanov<br />
FEATURES<br />
42 THE GREEN GLOSSARY<br />
Defining the movement<br />
6 Letter from the Editor<br />
12 Rep News and Moves<br />
46 Advertiser Index<br />
14 CLOUD FORMATIONS<br />
Cloud computing provides specialty retailers with a cost-effective and<br />
infinitely scalable path to launching new capabilities and rebuilding infrastructure<br />
at a time when existing IT systems are becoming dangerously obsolete.<br />
By Martin Vilaboy<br />
24 CAMPING’S RECOVERY<br />
A rebound in camping participation wrought by a recessionary pull back leaves us<br />
with some encouraging news and a few slivers of opportunity, as well as some<br />
interesting and less-expected challenges.<br />
By Martin Vilaboy<br />
28 FRESH IN FRIEDRICHSHAFEN<br />
Whether or not you will be making the journey to Germany,<br />
here’s a small preview of what will be on display this summer<br />
at the OutDoor trade show in Friedrichshafen.<br />
4 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
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Editor’s Letter<br />
Talking Tech<br />
It used to be that specialty retail owners and c-level executives could get by with<br />
minimal knowledge of retail technology systems. Sure, technology could create<br />
efficiencies and automate time-consuming processes, but it hasn’t always been<br />
inherent to a retail organization’s success or failure.<br />
If decision-makers knew their respective markets, and assuming most elements<br />
of the core business were properly managed (inventory, assortment, customer<br />
service, employee resources, balance sheet, etc.), a working knowledge of IT<br />
by and large could be left to a trusted IT department. In many cases, that simply<br />
meant a trained employee or two with some understanding of computer and POS<br />
systems. It’s one of the reasons why the retail vertical has been among the lightest<br />
spenders of technology dollars.<br />
This distant understanding among line-of-business departments was sufficient<br />
when technology, for the most part, was a back-office concern, a means to building<br />
efficiencies into existing processes rather than a driving force in revenue creation.<br />
When technology moves out of the back office and into the hands of customers,<br />
however, it suddenly becomes everyone’s business.<br />
You don’t have to be an IT consultant to know that your customers are adopting<br />
Internet protocol-based (IP) and digital technologies at unprecedented rates, and<br />
that’s fundamentally changing the way you communicate and transact with those<br />
customers, as it re-shapes their behavior and expectations. There’s little reason<br />
to believe the trend won’t continue, and as consumer technologies grow more<br />
ingrained into everyday life, retail technology no longer can be treated as an internal<br />
matter. In other words, IT investments and strategies no longer are driven by the<br />
wants and needs of IT departments. Consumers simply are moving too fast.<br />
As many readers likely are aware, the staff here at Inside Outdoor, along<br />
with covering the outdoor retail market, also produces technology titles. More<br />
specifically, we offer print and online resources for Internet, communications and<br />
other technology solutions providers. When people first here of our dual role, the<br />
typical reaction usually includes comments on how telecom and outdoor must<br />
differ dramatically or how simultaneously working in those seemingly disconnected<br />
worlds must be like exercising both sides of the brain at once.<br />
Such notions used to be easier to support. During the past few years, however,<br />
we have seen more and more crossover between these once-distinct universes.<br />
We see outdoor retailers, such as Moosejaw and REI, leading the digital commerce<br />
transformation, and we see technology solution providers increasingly focusing on<br />
the technological challenges facing retailers large and small. Consider, for example,<br />
one recent survey of mobile industry executives who were asked to name the<br />
business vertical that would be most impacted by mobility in 2011. Retail was<br />
named more than twice as often as all other choices, picked number one by nearly<br />
50 percent of respondents, show the findings from Chetan Sharma Consulting.<br />
Witnessing this convergence of retail and consumer technologies first hand,<br />
it only makes sense for us to further leverage our expertise in areas such as<br />
communications and Internet applications, networking, mobility, system integration<br />
and the like into the pages of IO. So, moving forward you can expect to see<br />
increased coverage of these and other technologies as a means of assisting<br />
readers with the challenges they face in the mainstreaming of e-commerce and<br />
m-commerce and the subsequent emergence of “everywhere commerce.”<br />
It’s your customers, after all, that now are dictating the pace of your technology<br />
adoption, and we firmly believe no other publication in the outdoor market is in<br />
better position to help outdoor retail companies keep pace. –MV<br />
Martin Vilaboy<br />
Editor-in-Chief<br />
martin@bekapublishing.com<br />
Percy Zamora<br />
Art Director<br />
outdoor@bekapublishing.com<br />
Ernest Shiwanov<br />
Editor at Large<br />
ernest@bekapublishing.com<br />
Berge Kaprelian<br />
Group Publisher<br />
berge@bekapublishing.com<br />
Jennifer Vilaboy<br />
Production Director<br />
jen@bekapublishing.com<br />
Suzanne Urash<br />
Ad Creative Designer<br />
suzanne@cre8groupinc.com<br />
Beka Publishing<br />
Berge Kaprelian<br />
President and CEO<br />
Philip Josephson<br />
General Counsel<br />
Jim Bankes<br />
Business Accounting<br />
Corporate Headquarters<br />
745 N. Gilbert Road<br />
Suite 124, PMB 303<br />
Gilbert, AZ 85234<br />
Voice: 480.503.0770<br />
Fax: 480.503.0990<br />
Email: berge@bekapublishing.com<br />
© 2011 Beka Publishing, All rights reserved.<br />
Reproduction in whole or in any form or<br />
medium without express written permission<br />
of Beka Publishing, is prohibited. Inside<br />
Outdoor and the Inside Outdoor logo are<br />
trademarks of Beka Publishing<br />
6 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
Data Points<br />
Numbers worth noting<br />
by Martin Vilaboy<br />
Mobile Experts Pick Retail<br />
Still wondering if and to what extent mobility will<br />
impact your business model? Well, the folks driving the<br />
mobile revolution seem pretty confident the change will be<br />
dramatic. When a group of mobile company executives and<br />
insiders were asked to pick the business vertical that would<br />
be most impacted by mobile technologies, retail was the<br />
overwhelming number one choice, says telecom analyst<br />
Chetan Sharma. Indeed, it was pegged for change about<br />
three times more often than the next-closest responses.<br />
Which enterprise segment will mobile<br />
impact the most?<br />
prevention equation. What’s more, “we are starting to see<br />
radio frequency (RFID) gain some traction as part of an instore<br />
LP program,” says RSR.<br />
Budgeted or Planned Loss Prevention<br />
Technology Projects<br />
Real-time alerts on POS overrides 32%<br />
Automated returns processing 29%<br />
Workforce management systems 22%<br />
Computer-based training 21%<br />
Returns and void management 20%<br />
Statistical fraud detection/analytics 18%<br />
Retail<br />
Sales<br />
Health<br />
Field Force<br />
Education<br />
Others<br />
Energy<br />
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%<br />
Source: Chetan Sharma Consulting<br />
Women are from Facebook,<br />
Men from LinkedIn<br />
According to a new Empathica study, men and women<br />
use social media differently when interacting with a retail<br />
brand through social channels, with more men citing looking<br />
for information as a primary goal (36 percent) than women<br />
(28 percent). The gender split Other among staff members those looking do to stretch<br />
less work than I do<br />
their budgets was even greater: 47 percent of women say<br />
searching for Little coupons time to help and promotions customers because is their of primary use,<br />
pressure to get other tasks completed<br />
compared with 33 percent of men. Women also are more<br />
likely to recommend Manager a is brand, not aware product of all the or service things<br />
I do during my shift<br />
through a<br />
social network, with 35 percent doing so, compared with 28<br />
Finding out I need to replenish product<br />
percent of men. after getting complaints, instead of<br />
knowing ahead of time<br />
When customers can’t find what they’re<br />
looking for, it’s hard for me to get the<br />
To Catch information a Thief I need to help them<br />
Retailers, Checking by and the large, price of are items using for the customers same familiar<br />
methods to fight shrinkage: video surveillance, audits, cash<br />
and return<br />
Inability<br />
and void<br />
to easily<br />
management,<br />
communicate<br />
etc.<br />
with<br />
But<br />
other<br />
associates or my manager to ask for<br />
analysts<br />
help<br />
at Retail<br />
Systems Research are seeing greater interest in automated<br />
Customers with smartphones who have<br />
tools as part of an more effort information to take people about products out of the loss<br />
and prices than I have<br />
8 | <strong>InsideOutdoor</strong> Boredom and<br />
|<br />
too <strong>Spring</strong> much downtime 2011<br />
Procedural reviews 15%<br />
Exception analysis reporting 13%<br />
Radio frequency shoplifting prevention systems 13%<br />
Source: Retail Systems Research<br />
During a typical shift on the retail floor, what are the biggest<br />
frustrations you experience in doing your job?<br />
TV Ads Still Worth Watching<br />
Though some prematurely have sounded its death knell,<br />
TV is still the king of all media, especially when it comes to ad<br />
messaging and purchasing influence. Deloitte found that 71<br />
percent of American’s still rate watching TV programing among<br />
their favorite media activities, while 83 percent of Americans<br />
said TV advertising still has the most impact on their buying<br />
decisions. Conversely, the ability of ads on Web sites to<br />
move traffic to other sites has dropped from 72 percent to 59<br />
percent over the past three surveys. And while on the topic of<br />
legacy media, more than half of consumers (60 percent), and<br />
even 64 percent of Millennials, claim to pay more attention<br />
to magazines ads than any form of online advertising.<br />
Advertising with Most Impact on Buying Decision<br />
Media Type<br />
TV 83%<br />
<strong>Magazine</strong>s 50%<br />
Online 47%<br />
Newspapers 44%<br />
Radio 32%<br />
Billboards/outdoor advertising 13%<br />
In-theater advertising 11%<br />
Source: Deloitte, March 2011<br />
% of Respondents
Permanent, temperature-regulating<br />
fiber technology with odor control<br />
and softness that never washes out.
Health<br />
eld Force<br />
ducation<br />
Others<br />
Data Points<br />
Field Force<br />
Education<br />
Others<br />
Energy<br />
Energy<br />
Employee Pain Points<br />
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Source: Chetan Sharma Consulting<br />
Source: Chetan Sharma Consulting<br />
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%<br />
The Parent Trap<br />
The best way for the outdoor industry to attract a<br />
What’s bothering your staff the most? According to a<br />
survey of North American retail employees, top frustrations younger audience, it turns out, may have less to do<br />
During a typical shift on the with retail hip floor, imagery what and are urban the biggest outreach<br />
frustrations you experience programs in doing your and more job?<br />
During a typical shift on the retail floor, what are the biggest<br />
to do with Mom<br />
frustrations you experience in doing your job?<br />
and Dad. According to findings from The<br />
Other staff members do<br />
less work than I doOutdoor Foundation, three-quarters of<br />
Other staff members do<br />
children ages 6 to 12 are influenced in<br />
less work than I do<br />
Little time to help customers because of<br />
pressure to get other tasks completedtheir participation in outdoor activities by<br />
Little time to help customers because of<br />
Manager is not aware of all the things<br />
pressure to get other tasks completed<br />
their parents. As children age, of course,<br />
I do during my shift<br />
Manager is not aware of all the things<br />
Finding out I need to replenish producttheir parents’ role in their participation<br />
I do during my shift<br />
after getting complaints, instead of<br />
knowing ahead of timediminishes, and friends gain an<br />
Finding out I need to replenish product<br />
after getting complaints, instead of<br />
When customers can’t find what they’reincreasingly influential role. But why wait<br />
knowing ahead of time<br />
looking for, it’s hard for me to get the<br />
information I need to help themuntil the teenage years when distractions<br />
When customers can’t find what they’re<br />
looking for, it’s hard for me to get the<br />
Checking the price of items for customersfrom team sports, dating, text messaging<br />
information I need to help them<br />
and social networks are more abundant?<br />
Inability to easily communicate with other<br />
Checking the price of items for customers<br />
associates or my manager to ask for help<br />
Inability to easily communicate with other<br />
Customers with smartphones who have<br />
associates or my manager to ask for help<br />
more information about productsCustomer<br />
and prices than I have<br />
Customers with smartphones who have<br />
more information about products<br />
Boredom and too much downtimePain Points<br />
and prices than I have<br />
Your employees aren’t the only ones<br />
Boredom and too much downtime<br />
0% 10% 20% 30% 40% 50% 60%<br />
frustrated by time management and<br />
0% 10% 20% 30% 40% 50% 60% accountability Associate issues. When Manager asked about<br />
the impact of different aspects of the<br />
Associate<br />
Manager Source: Motorola Solutions<br />
shopping experience to overall satisfaction,<br />
Source: Motorola Solutions<br />
+7%<br />
Please rate your overall satisfaction with each of the following<br />
center on accountability and time management. Meanwhile, aspects of you shopping experience during the past four weeks.<br />
about a third Please of employees rate your feel overall they lack satisfaction the adequate with each of the following<br />
% Not satisfied<br />
respondents<br />
information aspects to serve of customers. you shopping Managers, experience in particular, during feel the past four weeks.<br />
(excludes NA)<br />
Ease of finding<br />
% Not satisfied<br />
20%<br />
the pressure of out-of-stock complaints.<br />
correct prices<br />
respondents<br />
(excludes NA)<br />
Ease<br />
INTER- OR of finding<br />
INTRA-CHANNEL<br />
Availability 20% of the items<br />
I wanted in stock<br />
When most Availability people of talk the items about cross-channel retail, they Availability of information<br />
are referring to activities I wanted that in stock<br />
you could find 25% on your own<br />
cross physical and online stores.<br />
in the store<br />
But many retailers Availability increasingly of information face a cross-channel problem<br />
Time spent waiting in<br />
you could find on your own<br />
line and pay/checkout<br />
28%<br />
that lives completely in the store digital space, without touching<br />
25%<br />
28%<br />
33%<br />
stores at all, show Time spent findings waiting from in<br />
Availability of coupons<br />
RSR Research. From 2009 to<br />
line and pay/checkout<br />
and 33% discounts<br />
35%<br />
2010, the number of retailers reporting that they only operate<br />
Availability of<br />
one online site Availability fell from of coupons 45 percent to 34 percent, and the<br />
35% staff/sales<br />
37%<br />
and discounts<br />
associate help<br />
number of retailers reporting that they operate two to four<br />
Availability of<br />
sites increased from 30 percent to 40 percent.<br />
37%<br />
0% 20% 40% 60% 80% 100%<br />
staff/sales<br />
associate help<br />
Very satisfied Somewhat satisfied Does not apply/Does not matter to me<br />
0% 20% 40% 60% 80% 100% In between Somewhat dissatisfied Very dissatisfied<br />
Unique Online Sites Operated Today by Retail<br />
Very satisfied Somewhat satisfied Does not apply/Does not matter me<br />
Company, by KPI Breakdown<br />
Source: Motorola Solutions<br />
In between Somewhat dissatisfied Very dissatisfied<br />
Winner Plus Winners Average Laggards<br />
Source: Motorola Solutions<br />
More than 4 50% 11% 21% 11%<br />
consumers surveyed by Motorola Solutions similarly<br />
Two to four 13% 48% 42% 11%<br />
expressed the greatest dissatisfaction over the availability of<br />
One 25% 33% 32% 56%<br />
help from store associates. A lack of discounts and coupons,<br />
None 13% 7% 5% 22%<br />
Visitor Growth at OutDoor<br />
not surprisingly, also was high on the list.<br />
+6%<br />
Source: Retail Systems Research<br />
+12% +2%<br />
Visitor Growth at OutDoor<br />
+6%<br />
+7% +2%<br />
10 |<br />
+12% +2%<br />
<strong>InsideOutdoor</strong><br />
+2% +8% | <strong>Spring</strong> 2011<br />
itors<br />
itors<br />
itors<br />
itors<br />
itors<br />
itors
Rep moves and news<br />
Throughout the first quarter of<br />
2011, a slew of outdoor manufacturers<br />
honored their top-producing indirect<br />
sales forces with 2010 reps of the year<br />
awards. Our congratulations go to all<br />
these well-deserved road warriors.<br />
Starting in no particular order,<br />
Mountainsmith said Sanitas Group<br />
has won its 2010 Anvil Award for Agency<br />
of the Year. In a flat market, the group,<br />
headed up by industry veterans Keith<br />
Reis and Andy Anderson, led a surge<br />
in sales and market share in their Rocky<br />
Mountain territory to secure the honor.<br />
In the two years that they have been<br />
in sales with Mountainsmith, they<br />
have grown the region by 40 percent<br />
and exceeded their 2010 sales goal<br />
by nearly 30 percent. Both Reis and<br />
Anderson had held prior positions within<br />
Mountainsmith, which gave them a head<br />
start when they took over the territory,<br />
said the company.<br />
Over at Buck Knives, 2010 Sales<br />
Rep Agency of the Year went to Upper<br />
Canada Sports of Toronto, while co-<br />
Sales Reps of the Year were awarded<br />
to Al Belhumeur of Pro Line Sports<br />
in British Columbia, and Lynn Tackett<br />
of Tackett Brothers in Dallas. Upper<br />
Canada Sports, Pro Line Sports and<br />
Tackett Brothers are independent<br />
manufacturer’s representatives with<br />
long standing relationships with Buck<br />
Knives. “All of these men and women<br />
representing these groups understand<br />
the importance of providing good<br />
service before and after the sale. They<br />
truly understand what Buck Knives is all<br />
about,” said CJ Buck, president of Buck<br />
Knives.<br />
Cascade Designs, meanwhile,<br />
bestowed its 2010 Rep Agency of<br />
the Year award to Summit Sales of<br />
Bainbridge Island, Wash. Summit Sales,<br />
led by principal David Fitzgerald and<br />
including Patrick Cook, Rob Birzell,<br />
Justin McGregor, Anna Baze and Kris<br />
Stahl, has been representing Cascade<br />
Designs’ brands for 10 years. This award<br />
recognizes their consistent and growing<br />
performance, year after year, with<br />
investments made in their agency to<br />
offer outstanding support and service to<br />
their customers in Washington, Oregon,<br />
Idaho and Montana.<br />
Awards were given out at<br />
Longworth Industries, as well, the<br />
parent company of Polarmax, XGO,<br />
and AYG 365’s branded technical base<br />
layers. Robb Sports took home the<br />
Agency of the Year award, while Patti<br />
Fisher was named Rep of the Year for<br />
2010. In their first year representing<br />
Polarmax, Rob Robinson, Dan Williams<br />
and Bill Kendall of Robb Sports opened<br />
many new doors and increased sales<br />
across their Southeastern U.S. territory,<br />
while Smith set the bar high for 2011<br />
with tremendous increases in Polarmax<br />
sales in December alone. Fisher’s<br />
territory includes Southern California,<br />
Arizona and parts of Utah and Nevada.<br />
Turning for a moment to internal<br />
sales teams, Cutter & Buck recently<br />
SuperFabric<br />
material<br />
®<br />
by HDM, Inc. TM<br />
brand<br />
®<br />
HDM<br />
HDM, Inc.<br />
570 Hale Ave.<br />
Oakdale, MN 55128<br />
(651)-730-6203<br />
email: outdoor@superfabric.com<br />
www.SuperFabric.com<br />
12 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
announced its annual sales awards<br />
with Scott Cunningham taking top<br />
honors as the 2010 Salesperson<br />
of the Year. Cunningham has<br />
been with Cutter & Buck for<br />
nearly 20 years, serving as a<br />
sales representative since 1991.<br />
He came to Cutter & Buck at the<br />
beginning of its second season and<br />
has been instrumental in building<br />
relationships with customers while<br />
bringing on new accounts, says<br />
the company. He serves as one of<br />
five team leaders within the company,<br />
“adding tremendous value as a<br />
mentor and industry veteran to his role.”<br />
Cunningham now calls Arizona home<br />
but has worked in California and other<br />
regions since joining the company.<br />
Hardware also was handed out at<br />
Chaos Headwear. Rocky Mountain<br />
region-based Best and Associates,<br />
which had taken the title for the<br />
previous two years and came in a close<br />
second last year, returns back to the<br />
top as Chaos’ Sales Agency of the Year<br />
2010. The award, based on set sales<br />
criteria such as most new accounts,<br />
From left to right: Dominic Shenelia, Chaos sales<br />
director; Mary Anne & Brent Best of Best and<br />
Associates; Gary Supple, Chaos U.S. director<br />
most pre-season orders and re-orders,<br />
co-brands, branding and merchandising,<br />
includes a monetary bonus, a plaque<br />
and one oversize check. In line for the<br />
second highest sales was last year’s<br />
winner, Sam Adams of Western<br />
States Sales Marketing, who has<br />
built the Pacific Northwest territory<br />
(Washington, Oregon, Utah, Nevada,<br />
Montana) into one of the top territories<br />
in the country for Chaos.<br />
And KNS Reps of the Rocky<br />
Mountain region had such a strong year<br />
that it was honored by two separate<br />
outdoor companies in 2010. Despite<br />
having just three representatives<br />
in the field, KNS received Rep of<br />
the Year honors from SCARPA<br />
NA, while Big Agnes named Kirk<br />
Haskell and Scott Sutton of KNS<br />
Reps as winners of its Sales Reps<br />
of the Year award. The KNS reps<br />
yielded more than a 20 percent<br />
overall growth in spring and fall of<br />
2010 for SCARPA in their region<br />
as well as a 16 percent increase<br />
in pre-season bookings for Fall 2010<br />
and a 34 percent increase for <strong>Spring</strong><br />
2011. The two KNS Reps also lead all<br />
Big Agnes sales territories in terms of<br />
highest growth percentage, pre-season<br />
participation and future commitments.<br />
They also procured the most new dealer<br />
bookings for 2010.<br />
Big Agnes also acknowledged<br />
runner-up sales agency, Three<br />
Mountain Associates Inc., including<br />
Tom McCarthy, Mike Cullerot and<br />
George Lesure, for their strong sales<br />
performance in 2010.<br />
Once again, a deserving pat on the<br />
back goes to all these winners.<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 13
Cloud<br />
Form<br />
Cloud computing and<br />
the future of retail<br />
by Martin Vilaboy<br />
Partly because of the inherent complexities<br />
and partly due to overzealous<br />
marketing, any discussion of “the<br />
cloud” should probably start with a<br />
clarification of what exactly “cloud<br />
computing” means to technology decision<br />
makers. Some have said the cloud is simply a euphemism<br />
for the Internet. Others argue that it’s really<br />
nothing new but rather just a return to “centralized”<br />
versus “distributed” computing, made accessible now<br />
by the ubiquity of high-speed data networks.<br />
As much truth as there may or may not be in<br />
these oversimplifications, neither should be used as<br />
an excuse to disregard the importance of what the<br />
cloud is and can do, particularly when it comes to<br />
the retail business. As it turns out, many of the benefits<br />
wrought by moving IT components to the cloud<br />
directly address the daunting challenges and macro<br />
trends facing retail IT departments today. In fact, it’s<br />
even possible that the retail segment, at least in the<br />
short term, has more to gain from the cloud trend<br />
currently sweeping the IT world than most any other<br />
industry vertical. Indeed, many retail analysts and experts<br />
believe that a transition to the cloud could prove<br />
necessary to individual retailer’s survival long term.<br />
Getting back to the beginning, The National Institute<br />
of Standards and Technology, for its part, defines<br />
cloud computing as, “a model for enabling convenient,<br />
on-demand network access to a shared pool<br />
of configurable computing resources (e.g., networks,<br />
servers, storage, applications and services) that can be<br />
rapidly provisioned and released with minimal management<br />
effort or service provider interaction.”<br />
NIST’s definition may or may not clear things<br />
up. If not, most specialty retailers can think of cloud<br />
computing as a model by which computing and IT<br />
services and capabilities can be accessed anywhere,<br />
on any device, through the Internet. That differs<br />
from the traditional IT delivery model, whereby<br />
hardware, such as servers and storage devices, as<br />
well as software purchased through a license, would<br />
reside at the physical location at which they are being<br />
used. In the cloud, on the other hand, equipment and<br />
business applications are housed on servers in large<br />
data centers where a paid or “for-free” provider hosts<br />
14 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
Ongoing concerns about solution<br />
vendor or service provider stability<br />
and longevity<br />
We don’t like sharing our<br />
innovations with outsiders<br />
Source: RSR Research<br />
18%<br />
5%<br />
16%<br />
9%<br />
0 10 20 30 40 50 60 70 80<br />
ations<br />
How much do each of the following factors influence how<br />
your company’s technology portfolio will change?<br />
We want to spend less time on “catch up”<br />
investments in IT, and spend more time<br />
differentiating with IT-enabled capabilities<br />
52%<br />
48%<br />
We need to shorten the lead time<br />
to customer demand fulfillment<br />
47%<br />
48%<br />
and manages the solutions, as well<br />
Rapid<br />
as<br />
consumer<br />
cloud<br />
adoption<br />
or engage<br />
of new<br />
a third-party provider at Retail Systems 47%<br />
technologies such as “smart mobile”,<br />
Research, with the<br />
the user’s experience with “social them. media”, Cloud etc. is forcing to host us and to “go manage faster” it – either on site or user having 34% no knowledge or concern of<br />
services ranging from raw infrastructure off. A private cloud provides restricted where any individual piece resides.<br />
We need to overcome an ingrained “not<br />
41%<br />
to complete business processes invented (email, here” attitude access and take to the advantage computing capabilities and “This is different than a simple hosted<br />
of what’s commercially available<br />
31%<br />
accounting, CRM, scheduling, forecasting,<br />
resources to be shared only by employ-<br />
application accessed remotely,” says RSR.<br />
as examples) are purchased and ees or external partners, such as distrib-<br />
“Parts could well reside on a local device.<br />
We need to reduce ongoing maintenance<br />
41%<br />
accessed through Web interfaces. costs associated with utors owning and manufacturers.<br />
solutions<br />
It’s completely location 45% agnostic.”<br />
That might sound a lot like how<br />
Most retailer deployments up to this<br />
we’ve come to know and use the Internet,<br />
point, suggest findings from<br />
Winners<br />
Accenture, involve<br />
OthersCut and Paste<br />
you might say. In many ways, this<br />
is precisely how routed networks based<br />
on Internet protocol (IP) work, and the<br />
pervasiveness of high-speed access is<br />
largely what makes cloud computing so<br />
powerful. But before you start cringing<br />
over the idea of placing your customer<br />
data or communications services on the<br />
either a private cloud or some type<br />
of Source: “hybrid RSR model,” Researchthe managed combination<br />
of both private and public clouds.<br />
“So, for example, low level data and<br />
access may well be suitable to go onto a<br />
public cloud infrastructure service with<br />
simple password access, whereas ultra<br />
The primary promises of the cloud<br />
include enhanced flexibility and speed<br />
at significantly lower costs, and few<br />
vertical markets need to drive such advantages<br />
out of their IT infrastructures<br />
during the next several years more than<br />
retail/wholesale.<br />
wild and open Internet, it’s first important<br />
to have an understanding of the<br />
differences between the “public cloud”<br />
The shopper is better connected to consumer information<br />
than store associates.<br />
(Percentage of responding retail employees)<br />
and a “private cloud.”<br />
According to executives at IBM, the<br />
Completely<br />
Agree<br />
Neutral Disagree Completely<br />
Agree<br />
Somewhat<br />
Somewhat Disagree<br />
infrastructure in a public cloud is owned<br />
and managed by an organization selling<br />
cloud services and is made available to<br />
the general public. In this model, computing<br />
capabilities typically are accessed<br />
17% 37.5% 26.1% 15.3% 4.1%<br />
by multiple subscribing clients on a flexible,<br />
pay-per-use basis.<br />
Most people associate the public<br />
cloud with “community-based” offerings<br />
0%<br />
Source: Motorola Solutions<br />
50% 100%<br />
accessed over the public Internet,<br />
such as Google Apps, explains Joe<br />
Corvaia, vice president of solution<br />
engineering at cloud services provider<br />
Broadview Networks.<br />
secure data may require dedicated secure<br />
servers housed in ultra-secure data centers<br />
with strong authentication required<br />
for access,” explain Accenture analysts.<br />
Cloud computing also differs somewhat<br />
For starters, the retail industry<br />
doesn’t like to spend a lot on technology.<br />
Retail IT operating budgets, as a percentage<br />
of revenue, are typically among<br />
the lowest of all the major industries,<br />
from for the Using purely the “centralized Cloud com-<br />
The infrastructure in a private Initial cloud, Opportunities<br />
and we don’t expect that many retail<br />
on the other hand, is operated solely puting” model in that pieces and parts CFOs are anxious to shake this dubious<br />
distinction. By moving IT resources<br />
for a particular user organization. Easy This of an application and its associated data<br />
New Busin<br />
organization can either own the private can reside anywhere, explain analysts to the cloud, retail IT departments<br />
•<br />
can<br />
Provide IT support fo<br />
Business Continuity (storage)<br />
• Extensive storage<br />
• Back up & recovery<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 15<br />
Batch and data intensi<br />
• One-off applications that don’t r
We need to overcome an ingrained “not<br />
invented here” attitude and take advantage<br />
of what’s commercially available<br />
31%<br />
41%<br />
We need to reduce ongoing maintenance<br />
continue<br />
costs associated<br />
to do<br />
with<br />
more<br />
owning<br />
with<br />
solutions<br />
less by all but<br />
eliminating the cost of servers, software<br />
licenses, maintenance fees, IT labor and<br />
data center space and the electricity to<br />
Source: RSR Research<br />
power and cool them. IT cloud solutions,<br />
rather, can be purchased on-demand,<br />
only as needed, replacing large upfront<br />
investments with a monthly recurring<br />
cost or a pay-per-use operating expense.<br />
“The no-obligation, month-to-month<br />
subscription allows retailers to fine<br />
tune their IT spend,” says Jim Saffron,<br />
than store associates.<br />
president of GreenAppX, a Charlotte,<br />
N.C.-based reseller of cloud-based communications<br />
and business services.<br />
And replacing opex Completely<br />
Agree<br />
for capex is just<br />
the beginning. According to one IBM<br />
study, 70 percent of retail IT budgets, on<br />
average, is spent maintaining current<br />
infrastructures, with annual operational<br />
costs (such as power, cooling and<br />
management) of distributed systems and<br />
networking often exceeding double their<br />
acquisition costs. Source: What’s Motorola more, Solutions these<br />
costs continue to increase.<br />
In the cloud computing model,<br />
however, the management, maintenance,<br />
housing of equipment, software updates<br />
Winners<br />
41%<br />
and system upgrades all are handled 45% by<br />
the cloud provider as part of the service<br />
at a flat or Others per-use fee. In addition to<br />
eliminating variable support cost, this<br />
also allows the retailer to focus on its<br />
core business while maintaining minimal<br />
in-house staff and expertise.<br />
Then there’s the issue of utilization.<br />
Studies by IBM suggest that utilization<br />
rates of commodity servers, for example,<br />
hover around 5 percent to 15 percent.<br />
In other words, “as much as 85 percent<br />
of retail computing capacity sits idle in<br />
distributed environments,” argues Vish<br />
Ganapathy, solutions architect for the<br />
retail industry at Neutral IBM. Disagree<br />
Somewhat<br />
This is one area in particular that<br />
retailers are attacking early on through<br />
a cloud strategy, says Don Douglas, 15.3% 4.1%<br />
president and CEO of Liquid Networx,<br />
a San Antonio, Texas-based provider<br />
of network managed services and IT<br />
lifecycle management.<br />
“We see retailers using the cloud to<br />
minimize footprint at remote locations,<br />
which reduces costs, provides flexibility,<br />
speeds advances to market and usually<br />
enhances security,” says Douglas.<br />
The shopper is better connected to consumer information<br />
(Percentage of responding retail employees)<br />
Agree<br />
Somewhat<br />
17% 37.5% 26.1%<br />
0% 50% 100%<br />
“These benefits can be achieved fairly<br />
quickly by implementing a private cloud<br />
that is supported at headquarters and<br />
by having the different locations utilize<br />
those resources.”<br />
As Douglas suggests, arguably as<br />
important as the IT cost savings are the<br />
elements of “speed” and “flexibility.”<br />
While retail is not the first and only<br />
industry to feel the disruption of the<br />
digital revolution, few verticals face<br />
the types of transformational shifts that<br />
retailers face in terms of changing consumer<br />
behaviors and expectations. From<br />
smartphone-enabled shoppers, mobile<br />
Completely wallets and geo-location campaigns<br />
Disagree<br />
to Groupon and social networking to<br />
QR codes and RFID to localized assortments<br />
and personalized promotions, the<br />
move online has come to represent lots<br />
more than a new sales channel. Indeed,<br />
a pervasive Internet and its “anytime,<br />
anywhere, any device” digital technologies<br />
have ramped up the level of<br />
competition for everyone, subsequently<br />
squeezing margins and forcing retailers<br />
to re-evaluate every aspect of their businesses.<br />
Success moving forward, at least<br />
Initial Opportunities for Using the Cloud<br />
Easy<br />
Ease of Implementation<br />
Business Continuity (storage)<br />
• Extensive storage<br />
• Back up & recovery<br />
Desktop productivity<br />
• Web 2.0 applications<br />
• Workgroup applications<br />
• Office suites<br />
• Email and calendaring<br />
Software development and testing<br />
• Development and testing environment<br />
• Performance testing<br />
• Non production projects<br />
• R&D activities<br />
• Reduced time to market<br />
Geographic expansion<br />
• Replicate standard processes in new<br />
locations and branches<br />
New Business<br />
• Provide IT support for new ventures<br />
Batch and data intensive applications<br />
• One-off applications that don’t rely on real-time responses<br />
• Data and high performance intensive applications<br />
(financial risk modeling, data compression,<br />
graphic rendering, simulation, etc.)<br />
• New back office applications<br />
Peak load demands<br />
• New business activities<br />
• Applications with peak loads<br />
• Seasonal Web sites<br />
• Applications with scalability needs<br />
Hard<br />
Legacy<br />
• Specific existing infrastructure<br />
• Complex legacy systems<br />
Sensitive applications<br />
• Mission critical applications<br />
• Regulation-protected data (PCI, SOX ...)<br />
Source: Accenture Technology Labs<br />
Value to the Enterprise<br />
High Value<br />
2<br />
16 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
as far as any trend- or fashion-based<br />
retail goes, likely will require shorter<br />
cycle times, more specialized inventory,<br />
tighter supply chain integration,<br />
faster and more effective execution of<br />
sales and marketing and more efficient<br />
resource planning.<br />
“Business conditions and cycles have<br />
sped up dramatically,” warn analysts at<br />
Retail Systems Research, “the consumer<br />
is stunningly technologically savvy, and<br />
business departments, most especially<br />
marketing, must respond.”<br />
“In general, total disclosure is available<br />
to anyone, anywhere from any<br />
device,” says Saffron. “Retailers need to<br />
use the same tools that the smart consumers<br />
use to improve infrastructure,<br />
delivery and support of their products.”<br />
Unfortunately, the IT infrastructures<br />
of most outdoor stores, and across the<br />
greater specialty retail market, simply<br />
aren’t ready to take advantage of the<br />
opportunities, and those that C aren’t will<br />
find it increasingly difficult<br />
M<br />
to compete<br />
in the consumer driven reality of omnichannel<br />
commerce and fulfillment.<br />
Y<br />
CM<br />
“IT can no longer dictate the pace,”<br />
MY<br />
say RSR researchers, “and so it has no<br />
choice but to move faster.” CY<br />
When asked to name the impediments<br />
to improving IT effectiveness,<br />
retail IT decision makers repeatedly cite<br />
slow and outdated infrastructures that<br />
aren’t able to keep up with consumer<br />
capabilities and emerging business<br />
needs, show surveys by RSR. The top<br />
technical inhibitor is ongoing maintenance<br />
of legacy infrastructures, named<br />
among the top three by 64 percent of<br />
respondents. Retail IT directors also say<br />
they must spend less time on “catch up”<br />
investments, more time differentiating<br />
with IT-enabled capabilities and need<br />
more speed to shorten the lead time to<br />
customer demand fulfillment.<br />
“We see retailers constantly exploring<br />
new business models and adding new<br />
capabilities to their application portfolios,<br />
which in turn increases the complexity of<br />
IT infrastructure and volume of data and<br />
demands more computing power,” says<br />
Ganapathy. But through the efficiencies of<br />
shared resources, automation, on-demand<br />
scalability and by leaving the development,<br />
service delivering and maintenance<br />
of solutions to the IT and communications<br />
experts, “cloud computing can reduce the<br />
IT costs of managing existing and new<br />
systems,” he continues.<br />
CMY<br />
Components of the Cloud<br />
K<br />
Although cloud computing is still an<br />
emerging model with many of the rules<br />
yet to be written, the general consensus<br />
within the IT industry is that there are three<br />
primary categories of cloud services. Below<br />
we provide a brief description of each one<br />
and how retailers can benefit from each,<br />
courtesy of IBM.<br />
Software<br />
as a Service<br />
Software as a service (SaaS) is the<br />
distribution of software hosted by a provider<br />
in a central and remote location and made<br />
available to consumers over a network.<br />
SaaS uses a pay-as-you-go pricing model,<br />
which decreases or increases the number<br />
of software licenses based on need, without<br />
having to procure, install or maintain<br />
software or hardware or incur ongoing<br />
maintenance costs. When retailers use<br />
the SaaS delivery model, they can access<br />
business applications, such as accounts<br />
payable and customer loyalty, virtually.<br />
Platform<br />
as a Service<br />
With platform as a service (PaaS), the complete<br />
application development and deployment<br />
platform (both hardware and software) can be<br />
delivered as a service, typically over the Internet.<br />
Developers can create, test, deploy and host<br />
applications quickly without having to bear the<br />
cost and complexity of buying and managing the<br />
underlying software and hardware. PaaS is often<br />
referred to as “cloudware.” In some cases, Web<br />
services, Web 2.0 capabilities and middleware<br />
are offered as an integrated platform on which<br />
applications can be built, assembled and run.<br />
Infrastructure<br />
as a Service<br />
Infrastructure as a service (IaaS) provides<br />
hardware components such as servers, network<br />
equipment, memory, CPUs and disk space. With<br />
IaaS, a retailer could run all operations without<br />
installing and maintaining in-house data<br />
centers. The approach to the delivery of these<br />
services varies from provider to provider.<br />
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<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 17
“Cloud computing opens the door to<br />
new capabilities including new business<br />
processes and new application solutions<br />
that are retail industry specific at<br />
a price point that is remarkably lower<br />
than traditional solutions implemented<br />
only one to two years ago,” Accenture<br />
analysts concur.<br />
Whereas the development or expansion<br />
of services and applications<br />
traditionally required large upfront<br />
investments in hardware and in-house<br />
expertise, cloud customers can purchase<br />
only what they need and pay<br />
only while they need it. A company can<br />
utilize a dozen servers on Monday and<br />
a hundred on Tuesday, for example, or<br />
take advantage of a cloud provider’s<br />
free or low-cost development tools.<br />
Capabilities such as scenario modeling,<br />
forecasting, pricing optimization<br />
and real-time inventory management<br />
– which tend to be “lumpy,” time-consuming<br />
and data-intensive processes –<br />
therefore can be done more quickly and<br />
cost-effectively, say cloud proponents.<br />
At the same time, software solutions<br />
that are bought on a pay-per-use basis<br />
can be quickly and easily integrated<br />
into existing IP platforms.<br />
“A wide variety of business applications,<br />
with unified sales, support,<br />
transaction and provisioning, can<br />
be accessed under one secure single<br />
login,” says Saffron. “From this Webbased<br />
dashboard, a small business can<br />
order product, initiate a support ticket,<br />
collaborate with colleagues, lock down<br />
and protect all of their computers, back<br />
up critical data, and even manage their<br />
customer relationships all from the<br />
cloud. That type of tight technology<br />
integration ultimately increases efficiency,<br />
reduces redundancy and lowers<br />
the cost of sales.”<br />
“Think about the Y2K conundrum<br />
and how much work businesses had<br />
to do to update their systems,” says<br />
Douglas. “If those businesses were<br />
properly utilizing the cloud at that<br />
time, the scope of their projects could<br />
have been significantly reduced to<br />
the point that it may have been just a<br />
service migration project.”<br />
One area where the cloud is particularly<br />
efficient is in the handling of<br />
data. Every retailer knows that POS<br />
Maintenance of our Top legacy Three portfolio Technical Inhibitors to Improving IT<br />
64%<br />
of IT solutions prevents the company<br />
from addressing Effectiveness new needsand Responsiveness<br />
73%<br />
Past under-investment in IT infrastructure<br />
61%<br />
prevents us from moving fast enough now<br />
Maintenance of our legacy portfolio<br />
64% 73%<br />
of Our IT solutions IT development prevents methodology the companyis<br />
rigid and takes from too addressing long. Business new needs needs<br />
43%<br />
73%<br />
change by the time we get a new<br />
Past under-investment solution in IT infrastructure<br />
implemented<br />
55% 61%<br />
prevents us from moving fast enough now<br />
The company under-invests in staff<br />
34%<br />
73%<br />
Our IT development training when methodology business is or<br />
rigid and tech takes changes too long. are Business implemented needs<br />
36%<br />
43%<br />
change by the time we get a new<br />
solution implemented<br />
55%<br />
A “not invented here” mentality within IT<br />
20%<br />
The company under-invests in staff<br />
18% 34%<br />
training when business or<br />
The tech IT changes organization are implemented<br />
is resistant to<br />
20% 36% All Respondents<br />
relinquishing control of development<br />
efforts to business leaders<br />
18%<br />
A “not invented here” mentality within IT<br />
20%<br />
Revenue > 1Billion/Year<br />
Ongoing concerns about solution<br />
18%<br />
vendor or service provider stability<br />
The IT organization is and resistant longevity to 5% 20%<br />
All Respondents<br />
relinquishing control of development<br />
efforts We don’t to business like sharing leaders our<br />
16% 18%<br />
Revenue > 1Billion/Year<br />
Ongoing innovations concerns about with outsiders solution 9% 18%<br />
vendor or service provider stability<br />
and longevity 0 5% 10 20 30 40 50 60 70 80<br />
We don’t like sharing our<br />
16%<br />
innovations Source: with RSR outsiders Research<br />
9%<br />
0 10 20 30 40 50 60 70 80<br />
Source: RSR Research<br />
We want to spend less How time much on “catch do up” each of the following factors influence how 52%<br />
investments in IT, and your spend company’s more time technology portfolio will change?<br />
differentiating with IT-enabled capabilities<br />
48%<br />
We want We to need spend to less shorten time on the “catch lead time up”<br />
investments to customer in IT, and demand spend more fulfillment time<br />
differentiating with IT-enabled capabilities<br />
Rapid consumer adoption of new<br />
technologies We need to such shorten as “smart the lead mobile”, time<br />
“social media”, to customer etc. is forcing demand us to fulfillment “go faster”<br />
We need to overcome an ingrained “not<br />
invented Rapid here” attitude consumer and adoption take advantage of new<br />
technologies of what’s such commercially as “smart available mobile”,<br />
“social media”, etc. is forcing us to “go faster”<br />
We We need need to to reduce overcome ongoing an ingrained maintenance “not<br />
invented costs here” associated attitude with and owning take advantage solutions<br />
of what’s commercially available<br />
We need to reduce ongoing maintenance<br />
costs associated with owning solutions<br />
Source: RSR Research<br />
Top Three Technical Inhibitors to Improving IT<br />
Effectiveness and Responsiveness<br />
How much do each of the following factors influence how<br />
your company’s technology portfolio will change?<br />
systems and loyalty programs generate<br />
massive volumes of<br />
Source:<br />
customer<br />
RSR Research<br />
data, and<br />
the management of that data, currently<br />
vastly underutilized, will be increasingly<br />
crucial to delivering personalized<br />
that make it more timely and affordable<br />
to capture and utilize customer<br />
data. Many retail-specific cloud providers<br />
also will have the ability to<br />
track performance of products and<br />
service. Of course, real-time The shopper and actionable<br />
is better brands connected in comparison to consumer to previous information time<br />
analyses of customer than store data can associates. periods, identify trends and seasonal-<br />
require lots of time and (Percentage huge capital of responding ity components, retail employees) monitor performance<br />
and operating expenditures, The shopper often is unaffordable<br />
to retailers. than Completely store associates. Agree retailer, improving their Neutral ability Disagree to Complete<br />
better and connected provide to analytical consumer results information to the<br />
Cloud providers, (Percentage Agree<br />
on the other of hand, responding Somewhat<br />
forecast retail customer employees)<br />
Somewhat<br />
behavior. And since Disagree<br />
possess the massive computational the data is centralized and accessible<br />
power and statistical Completely modeling 17% tools Agree by 37.5% the ubiquitous Internet, Neutral 26.1% data Disagree can 15.3% 4.1% Completel<br />
Agree<br />
Somewhat<br />
Somewhat Disagree<br />
18 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011<br />
17% 37.5% 26.1% 15.3% 4.1%<br />
Winners<br />
Winners<br />
Others<br />
Others<br />
34%<br />
47%<br />
52%<br />
48%<br />
48%<br />
47%<br />
47%<br />
48%<br />
41%<br />
47%<br />
31%<br />
34%<br />
41%<br />
41%<br />
45%<br />
31%<br />
41%<br />
45%
e more easily shared among internal<br />
departments, as well as external partners<br />
and suppliers, thereby improving<br />
inventory management.<br />
Meanwhile, cloud computing helps<br />
retailer better manage the peaks and valleys<br />
of seasonal and unexpected demand.<br />
“In a typical IT environment, retailers<br />
need to scale fixed datacenter resources<br />
in advance of demand spikes,” says<br />
Fred Bentfeld, general manager of U.S.<br />
distribution and services sector at Microsoft.<br />
“This leads to wasted capacity and<br />
increased costs.”<br />
Even worse, it can mean an under<br />
supply. But by taking advantage of cloud<br />
computing, retailers can dynamically<br />
adjust to the very dynamic nature of demand,<br />
says Bentfeld. “Retailers only have<br />
to pay for the level of service they need,<br />
without the costs of unused capacity or<br />
under-supply of capacity.”<br />
Likewise, emerging technology platforms<br />
such as social media, e-commerce<br />
engines, search optimization and mobility<br />
solutions already exist “in the cloud,”<br />
so this emerging IT model “can enable a<br />
retailer to engage with its customers in<br />
unique and novel ways without the level<br />
of capital investment typically required<br />
to build and support a new channel,”<br />
say Accenture analysts.<br />
In short, cloud computing provides<br />
retailers with a cost-effective and infinitely<br />
scalable path to launching new<br />
capabilities and rebuilding architectures<br />
at a time when existing systems are<br />
becoming dangerously obsolete.<br />
Of course, moving to the cloud<br />
doesn’t have to be an all or nothing<br />
affair. IT systems and capabilities can<br />
be cherry picked for cloud adoption in<br />
order to allow existing investments to<br />
adequately run their course. Similarly,<br />
it’s understandable that retailers would<br />
be reluctant to hand over confidential<br />
customer data or POS systems to a<br />
third-party provider.<br />
With that in mind, cloud proponents<br />
and consultants recommend retailers<br />
start by migrating low-hanging<br />
fruit, such as workgroup applications<br />
or non-mission-critical, non-integrated<br />
applications. Then be ready to scale<br />
once the benefits are proven and concerns<br />
alleviated.<br />
Not that it will be easy. Ongoing integration<br />
with existing systems has proven<br />
a sticking point for some, as has security.<br />
As with most technology, overcoming<br />
these hurdles will require the expertise<br />
of a trusted advisor.<br />
“Any retailer that uses cloud-based<br />
services needs to make sure that all<br />
their vendors follow strict and contractual<br />
guidelines on privacy policy,<br />
use a secure SSL to safely access their<br />
services through public networks and<br />
have a firm policy about data ownership,”<br />
Saffron warns. “If a provider of<br />
cloud-based services is fuzzy about<br />
who owns the data and how it can be<br />
affordably moved to another vendor,<br />
move on and find another.”<br />
“The more sensitive the data, the<br />
more important it will be to validate<br />
where the data resides and how it is being<br />
protected,” Douglas concurs. “Transparency,<br />
vendor management programs<br />
and strong service level agreements<br />
(SLAs) will be paramount.”<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 19
Retail Tech 2011<br />
eBay, GSI and In-Store Payments<br />
When eBay announced its intention<br />
to acquire e-commerce and interactive<br />
marketing solutions provider GSI<br />
Commerce for $2.4 billion, some industry<br />
observers saw the move as an attempt<br />
to keep pace with online giant Amazon,<br />
which boast a substantially more robust<br />
suite of retail services. It’s possible,<br />
however, that eBay’s intention isn’t to<br />
keep pace with Amazon but rather to<br />
break a barrier that so far has eluded the<br />
online giant: alternative in-store payment.<br />
For a few years now, Amazon has<br />
been courting major e-tailers to adopt its<br />
one click platform but so far has made<br />
very little in-roads, most likely due to<br />
the perceived competitive threat. In<br />
other words, “Retailers don’t want<br />
another Amazon – they want cheaper<br />
payments in-store,” argues Frank Hayes<br />
of StorefrontBacktack.com, “That’s what<br />
eBay seems to have figured out.”<br />
Consider, for example, that GSI already<br />
has long-term e-commerce services<br />
relationships with some 180 retail partners<br />
such as Toys ‘R’ Us, Dick’s Sporting Goods,<br />
Ace Hardware, Ralph Lauren, RadioShack<br />
and Sports Authority. Most of those GSI<br />
clients already use eBay’s PayPal for<br />
online transactions, Hayes points out, so<br />
backend processes and infrastructure, at<br />
least to some degree, are already in place,<br />
making the move from PayPal online to<br />
in-store more feasible. And unlike many<br />
other alternative payment schemes that<br />
have been developed, “PayPal won’t have<br />
All Geigerrig hydration packs shipping<br />
this spring will have a new hangtag,<br />
positioned front and center, that contains<br />
a toll free number offering consumers,<br />
retailers and retail sales staff a brief product<br />
tutorial for the company’s award-winning<br />
Hydration Engine, in-line filtration system<br />
and specific pack models. The purpose of<br />
the interactive hangtag is to provide further<br />
support to the growing Geigerrig dealer<br />
base by facilitating an additional opportunity<br />
20 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011<br />
to sell these retailers on a speculative<br />
business model or convince banks and<br />
payment-card companies to play along,”<br />
comments Hayes. PayPal has a large<br />
existing customer base and a long and<br />
reliable history.<br />
“Combined with eBay Marketplaces<br />
and PayPal, we believe GSI will enhance<br />
our position as the leading strategic<br />
global commerce partner of choice<br />
for retailers and brands of all sizes,”<br />
said eBay CEO John Donahoe, upon<br />
announcement of the acquisition.<br />
At the same time, eBay seems<br />
to have taken steps to alleviate<br />
concerns about competing with<br />
current and future retail partners.<br />
As part of the transaction, eBay will<br />
divest 100 percent of GSI’s licensed<br />
sports merchandise business and<br />
will also divest 70 percent of the<br />
consumer-facing private sale Web sites<br />
ShopRunner and Rue La La, saying<br />
these businesses are not core to its<br />
long-term growth strategy. These<br />
assets will be sold to a newly formed<br />
holding company to be led by GSI<br />
founder and CEO Michael Rubin.<br />
Not that convincing retailers to<br />
abandon traditional payments schemes<br />
will be easy, and eBay has provided<br />
little indication of how exactly it intends<br />
to move in-store. It should be noted,<br />
however, that just prior to the GSI<br />
announcement, PayPal hired prepaid<br />
gift card veteran and former Blackhawk<br />
for retailers and consumers to gain ever<br />
greater familiarity with the company and its<br />
products while still on the retail sales floor.<br />
“With all of the energy around<br />
Geigerrig and our new hydration packs,<br />
it is important to manage the pace of<br />
growth and interest in our products,”<br />
says Curt Geiger, president of Geigerrig.<br />
“Adding a brief phone-tutorial to each<br />
hydration pack will help us to keep the<br />
information flowing proportionately to<br />
Network CEO Don Kingsborough as it<br />
new vice president for retail and prepaid<br />
products. Kingsborough was brought<br />
on “to help us bring PayPal offline and<br />
into traditional retail stores,” said Scott<br />
Thompson, PayPal CEO, upon the hiring.<br />
About the time of Kingsborough’s<br />
hiring, Thompson, a former Visa<br />
executive, told Reuters how PayPal’s<br />
approach in-store would involve “a<br />
whole new experience that is different<br />
than the tradition card-like experience.<br />
That requires us to rebuild the whole<br />
infrastructure around point-of-sale.”<br />
No word yet as to what that<br />
infrastructure will entail, but it’s safe to<br />
assume that retailers won’t be too hot on<br />
another POS technology sitting alongside<br />
the existing ones. And since PayPal<br />
payments still must go through a traditional<br />
payment card account, accepting PayPal<br />
simply adds another middleman to every<br />
transaction, says Hayes.<br />
“That won’t encourage retailers<br />
to make the jump beyond plastic,”<br />
he continues.<br />
“The only way for eBay to make<br />
PayPal truly worthwhile for retailers is<br />
to significantly cut the cost, and that<br />
means cutting Visa and MasterCard out<br />
of the loop,” Hayes concludes.<br />
Considering the ongoing debate<br />
between large retail groups and the<br />
major credit card companies, such a<br />
notion may actually appeal to many<br />
shopkeepers.<br />
Geigerrig Hangs Interactive Tags<br />
the aggressive flow of Geigerrig product<br />
entering the market place.<br />
“While not a silver bullet solution,<br />
this new hangtag will help alleviate<br />
some of the pressure for more and more<br />
information at every level in the supply<br />
chain,” he continued.<br />
Geigerrig hydration packs picked up a<br />
2011 IN-NEW-VATIONS Award for best new<br />
product at the most recent Outdoor Retailer<br />
Winter Market in Salt Lake City, Utah.
Google Stakes<br />
Out Mobile<br />
Payment Space<br />
Google is joining forces with<br />
MasterCard and Citigroup to embed<br />
technology in Android mobile devices<br />
that would turn those smartphones into a<br />
type of mobile wallet, according the Wall<br />
Street Journal, which cited people familiar<br />
with the matter. The payment system,<br />
which is still in early development, would<br />
allow consumers to make purchases by<br />
waving their smartphones in front of a<br />
small reader at the checkout counter, the<br />
Journal reported.<br />
According to the sources cited by<br />
WSJ, Google’s eventually updated mobile<br />
operating systems would be able to offer<br />
retailers more data about their customers<br />
and help them target ads and discount<br />
offers to mobile device users near their<br />
stores. Along with getting targeted ads<br />
and discount offers, which Google hopes<br />
to sell to local merchants, users also will<br />
be able to manage credit-card accounts<br />
and track spending through an application<br />
on their smartphones, according to reports.<br />
The venture also involves VeriFone<br />
Systems, makers of credit card readers<br />
for cash registers. VeriFone reportedly<br />
would roll out more of its contact-less<br />
devices, which enable consumers to pay<br />
with a wave of a credit or debit card.<br />
The readers also would allow people<br />
to pay by tapping their smartphones,<br />
according to the Journal. The creditcard<br />
readers involved all use near<br />
field communication technology that<br />
is already in place at thousands of<br />
merchants nationwide.<br />
“A phone is a lot smarter than a<br />
card,” Doug Bergeron, VeriFone’s chief<br />
executive told the national paper. “It<br />
opens the door to a rich experience<br />
at the point of sale that retailers<br />
really covet.”<br />
At least at this early stage,<br />
Google isn’t expected to get a cut of<br />
the transaction fees but expects to<br />
generate revenue from the targeted<br />
ads and promotions delivered to the<br />
Android-loaded phones.<br />
IP voice and video solution<br />
provider Grandstream Networks<br />
recently introduced a high-definition IP<br />
surveillance camera built specifically to<br />
stand up to any conditions that might<br />
be encountered in an outdoor storage<br />
area, boat dock, loading zone or any<br />
other outside retail space or demo area.<br />
The new weather-proof, vandalresistant<br />
and tampering-proof<br />
GXV3662_HD IP Camera features multistreaming-rate<br />
H.264 and motion JPEG<br />
(MJPEG) real-time video compression<br />
(up to HD720p resolution) and advanced<br />
megapixel CMOS sensor with wide<br />
dynamic range and high-quality lens.<br />
Other highlights include day/night mode<br />
with light sensor and mechanical IR cut,<br />
alarm input/output, audio input/output,<br />
integrated power-over-Ethernet (802.3af),<br />
built-in heater and fan and SDHC interface<br />
for local storage. Sold with three optional<br />
Retail Tech 2011<br />
Outdoor-Worthy Video Surveillance<br />
mounting kits, the GXV3662_HD also<br />
offers support for the ONVIF standard as<br />
well as HTTP API for easy integration with<br />
various video management systems.<br />
Additionally, the vandal-resistant<br />
outdoor camera offers bi-directional<br />
SIP/VoIP audio and video streaming<br />
capabilities to mobile phones and<br />
video phones, from anywhere in the<br />
world. A built-in high performance<br />
streaming server allows for more than<br />
10 simultaneous viewers. For a unified<br />
audio plus video plus surveillance<br />
solution, Grandstream’s entire family<br />
of IP video cameras is fully compatible<br />
with Grandstream’s GXE IP PBX as well<br />
as various other SIP-based IP PBXs and<br />
service provider networks.<br />
The GXV3662_HD is available<br />
immediately for purchase through<br />
Grandstream’s worldwide distribution<br />
channels at a MSRP of $499.<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 21
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Retail Tech 2011<br />
Nau Gets<br />
Behind QR Codes<br />
Urban and outdoor apparel maker Nau<br />
is proving that its progressive attitude is not<br />
limited to its sustainability initiatives. Working<br />
with mobile marketing solutions company<br />
Indigitous, the eco-brand has labeled some<br />
key styles with ExtraTags, an advanced<br />
mobile marketing solution that employs<br />
QR Codes, or two-dimensional barcodes,<br />
to store a URL on a product hangtag. After<br />
scanning the ExtraTags barcode with a<br />
smartphone, consumers will be presented<br />
with an interactive mobile display designed<br />
to motivate in-store purchasing.<br />
“Rapid advancements in mobile<br />
technology are enabling consumers to<br />
become better informed regardless of<br />
their location,” said Larry Pluimer, CEO at<br />
Indigitous, the maker of ExtraTags. “Some<br />
dramatic implications of mobile adoption<br />
are already beginning to play out in the<br />
retail environment, and we want to make<br />
that an advantage – not a liability.”<br />
ExtraTags was developed to put the<br />
brand in control of the mobile message,<br />
and give the retailer a break from<br />
competitive threats, says Pluimer. “We like<br />
to say that ExtraTags is ‘retailer-friendly’<br />
because it’s a tool that can help retailers<br />
close the sale in their store – not lure<br />
consumers online or across the street.”<br />
The dynamic content available via<br />
ExtraTags includes product details in<br />
multiple languages, brand information,<br />
videos, reviews, social media sharing<br />
options and more. Coupons also can be<br />
programmed and delivered instantly to the<br />
consumer. And because ExtraTags can<br />
access location coordinates from mobile<br />
devices, it’s possible to tailor a unique<br />
message for the consumer based upon<br />
the retail store where she is shopping.<br />
ExtraTags is compatible with many<br />
price comparison apps, yet gives brands<br />
100 percent control of the message,<br />
says the company, staying true to its<br />
promise not to compete with retailers.<br />
“The Nau brand is synonymous with<br />
the modern mobile lifestyle and is an<br />
ideal beta partner for us,” says Pluimer.<br />
Carhartt to Use iVendix<br />
Carhartt brand and CenterStone<br />
Technologies, an international developer<br />
of Web-based B2B e-commerce<br />
software, announced an agreement by<br />
which CenterStone will provide Carhartt<br />
the iVendix software-as-a-service (SaaS)<br />
application. When the B2B solution goes<br />
“live,” Carhartt will provide a business-tobusiness<br />
on-line ordering solution for their<br />
North American retail accounts, sales<br />
reps and customer service professionals.<br />
Carhartt’s new capabilities are<br />
expected to provide users with the<br />
ability to view automated catalogs, check<br />
product availability, place orders and<br />
track and monitor the status of those<br />
orders 24/7 via the Web.<br />
According to Katrina Agusti, Carhartt’s<br />
manager of business transformation, the<br />
company was in the process of installing<br />
a new enterprise resource planning<br />
(ERP) platform and was looking for a<br />
B2B partner that had experience with<br />
their particular solution.<br />
“CenterStone demonstrated to us<br />
that they not only had the most widely<br />
adopted solution by retail and rep users<br />
in our markets, but that they had the<br />
knowledge and experience to implement<br />
and support our new internal solution<br />
over time,” said Agusti. “We join a list<br />
of leading brands that have selected the<br />
iVendix solution.”<br />
“Carhartt has been honoring the<br />
worker for more than 120 years,” said<br />
Dave Mathias, vice president of sales<br />
and marketing at CenterStone. “We are<br />
humbled by their tradition and honored<br />
to help grow their business in the<br />
wholesale channel.”<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 23
Camping’s Recovery<br />
by Martin Vilaboy<br />
As counterintuitive as it might sound<br />
to the unfamiliar, a bad economy<br />
seems to have been good for camping<br />
participation. After about 15 years<br />
of mostly declines in the number of<br />
tent camper visits to National Park<br />
Service’s properties, for example, things turned around<br />
right as the recession settled in after 2007. Falling from a<br />
peak of about 4.24 million in 1994 to 2.8 million in 2006,<br />
tent camper visits to NPS sites climbed back above 3<br />
million (to 3.18 million) in 2009, in what some would<br />
say were the deepest days of the recession. Campground<br />
stays at state parks, meanwhile, were up 7.9 percent in<br />
2009 compared to 2008, show findings from the National<br />
Association of State Park Directors.<br />
Camping’s value card, as well as its “back to the<br />
basics” sentimentalities appeared to have played well<br />
during down times. Results from 2010 are still coming in<br />
but so far are mixed. Camper visits to NPS sites continued<br />
to climb, but camping visits to State Park facilities dipped<br />
4.9 percent, to 52.7 million, says NASPD, so it’s not<br />
entirely clear how camping performs during a recovery,<br />
assuming one is firmly underway.<br />
For the upcoming summer camping season, the price<br />
of gas once again will play a part in vacation budget plans.<br />
According to Deloitte, for example, 71 percent of consum-<br />
24 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
ers anticipate that the cost to fill up their<br />
tanks will affect their ability to spend<br />
in the coming months, but the ultimate<br />
impact on camping participation is<br />
somewhat unclear. On one hand, a long<br />
weekend at the local start park certainly<br />
would seem a lot more appealing than a<br />
day’s drive to the nearest beach. On the<br />
other hand, 60 percent of car campers<br />
surveyed by the Outdoor Foundation in<br />
2010 said they traveled two or more hours<br />
to reach their destination on their last<br />
in-season camping trip. More than a third<br />
traveled four hours or more, so it’s likely<br />
prices approaching $5 a gallon will alter a<br />
significant number of campers’ plans.<br />
Regardless of the macro economic<br />
environments and commodity market<br />
fluctations, however, the rebound in participation<br />
experienced during the past<br />
few years provides some encouraging<br />
news and slivers of opportunity, suggest<br />
findings from the Outdoor Foundation,<br />
as well as some interesting and lessexpected<br />
challenges.<br />
For starters, participation rates for<br />
backyard, RV and car camping among<br />
6- to 12-year-olds rose to 25.2 percent in<br />
2009 from 23.2 percent in 2008, representing<br />
the highest rate of growth shown<br />
for any age group. While the increase essentially<br />
is incremental, it still represents<br />
good news to an industry concerned<br />
about an aging user base. Indeed, the<br />
rise in participation of younger children<br />
helped hold the median age of all camping<br />
participants at 33 years old after<br />
three consecutive years of back-to-back<br />
increases, says the Outdoor Foundation.<br />
Median age had crept up from 29 in 2006<br />
to 30 in 2007 and 33 in 2008.<br />
What’s more, 8.2 percent of respondents<br />
who participated in camping in<br />
2009 were doing so for the first time. The<br />
median age of this group was 25 years<br />
old – well below the 33-year-old average.<br />
Speaking of first-timers, incidentally,<br />
news was particularly good for retailers<br />
and destinations in the beleaguered<br />
South Atlantic region. Generally, camping<br />
participation declines as we move<br />
across the country geographically from<br />
West to East, suggest Outdoor Foundation<br />
figures. Participation rates are the<br />
highest in the Pacific and Mountain<br />
regions, at 18.5 percent and 26.9 percent<br />
of those respective populations, moving<br />
to the lowest in the Mid-Atlantic and<br />
South Atlantic regions (11 percent and 12<br />
percent, respectively).<br />
In 2009, however, the South Atlantic<br />
region (West Virginia, Maryland and Delaware<br />
down through Georgia and Florida)<br />
accounted for 21.9 percent of first-time<br />
campers throughout the entire U.S., placing<br />
it well ahead of the other eight regions<br />
as defined by the Outdoor Foundation<br />
study. Coming in second was the West<br />
South Central Region (Texas, Louisiana,<br />
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Perhaps the most encouraging statistics<br />
found in the Outdoor Foundation’s<br />
camping study involve the micro-burst<br />
in minority participation. According<br />
to the findings, more than a quarter<br />
(25.8 percent) of new campers in 2009<br />
are described as “ethnically diverse.”<br />
That compares to the 14.1 percent of all<br />
campers who are classified as ethnically<br />
diverse, says the foundation.<br />
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“Because it is the first time the survey<br />
sought to indentify first-time campers, it’s<br />
now known whether or not or how many<br />
of these percentages changed in 2009,” says<br />
the report. The rise in diverse first-timers<br />
also might simply be a product of the<br />
changing face of the American population.<br />
“However, the higher level of participation<br />
of minorities is certainly encouraging given<br />
the industry’s deep concern over the lack of<br />
people of color in outdoor participation,”<br />
says the foundation.<br />
6 to 12, agree that “outdoor activities are<br />
difficult or scary,” show Outdoor Foundation<br />
figures.<br />
One way to combat such sentiments,<br />
suggests the Children and Nature<br />
Network study, is through developing<br />
“targeted media communications that<br />
link the value of nature experiences for<br />
children with a story that ‘nature is all<br />
around you.’” This can be done by focusing<br />
on urban nature, for example, such as<br />
the resilience of plant life or the ubiquity<br />
of birds. Perhaps the goal here is to<br />
remove the feelings that the outdoors are<br />
distant or somehow mysterious.<br />
The good news is an underlying<br />
positivity concerning nature and the<br />
outdoors does exist.<br />
“In spite of adults’ varied experiences<br />
with nature in the past,” says the C&NN<br />
report, “most parents in this study were<br />
more likely to prioritize nature and feel that<br />
the benefits slightly outweigh the risks.”<br />
So, let’s go camping.<br />
The Fear Factor<br />
Moving from those who did participate<br />
to those who don’t, it turns out one of the<br />
largest barriers to attracting new campers<br />
may have less to do with race, age or any<br />
other demographic grouping and more<br />
to do with human emotion and cultural<br />
stigmas. In a study of American adults’<br />
attitudes toward children’s experiences<br />
in nature, researchers at the Children and<br />
Nature Network and the Institute for<br />
Learning Innovation noted a perceptible<br />
fear among respondents of letting children<br />
play in outdoor places. Whether its due to<br />
the somewhat aggressive imagery of extreme<br />
sports, the prevalence of TV shows<br />
about “surviving” outdoor experiences<br />
gone wrong or the overblown perception<br />
that child predators are lurking in every<br />
dark place, such fear cut across ethnic<br />
boundaries and were surprisingly consistent<br />
whether folks lived in cities, suburbs<br />
or small towns of more than 5,000 people.<br />
The perception of danger even existed<br />
among parents who firmly believe<br />
in the developmental benefits of nature<br />
contact and was apparent despite past<br />
outdoor experiences.<br />
“Of all those who had personal opportunities<br />
for nature play as children in<br />
wooded areas, near creeks and streams,<br />
or mountains and wild places, only 62<br />
percent would allow their children the<br />
same opportunities today,” says the<br />
study. On all the other criteria, (at a<br />
friend’s home, indoor sports center, after-school<br />
club, in the street near home,<br />
among many others) adults were just as<br />
likely to allow children to have the same<br />
access they had as children, says the<br />
Children and Nature Network.<br />
Perhaps it’s not surprising, in turn,<br />
that about 17 percent of youth ages 18 to<br />
24, as well as 17 percent of children ages<br />
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Product Market Showcase summer 2011<br />
Summer 2011<br />
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Friedrichshafen<br />
Availability of information<br />
you could find on your own<br />
in the store<br />
Time spent waiting in<br />
line and pay/checkout<br />
Availability of coupons<br />
and discounts<br />
Availability of<br />
staff/sales<br />
associate help<br />
OutDoor Europe 2011 Product Showcase<br />
Source: Motorola Solutions<br />
0% 20% 40% 60%<br />
The organizers of OutDoor Europe expect another<br />
record-breaking event this July in Germany, as the<br />
green trend continues to grow and more and more<br />
people around the globe discover the pleasures and<br />
benefits of heading outdoors. The international trade<br />
fair is reporting an “unprecedented demand for exhibition<br />
space,“ and expects to see a 6 percent increase in<br />
Visitor Growth at OutDoor<br />
registered exhibitors over last year’s all time high of 868 companies.<br />
+6%<br />
Meanwhile, demand for space in the climbing halls has been<br />
+12% +2%<br />
“remarkably strong this year,” says OutDoor project manager Stefan<br />
+7% +2% +8%<br />
Reisinger. “Trade visitors can look forward to an expanded offering in<br />
the areas of climbing and alpinism.” Trade visitors also can take part in<br />
the OutDoor Conferences, which took place for the first time last year,<br />
ensuring a lively exchange of information in the conference rooms as<br />
well as at the exhibition booths.<br />
In 2008, Inside Outdoor made its first trip to Friedrichshafen, and<br />
attendees this year again will be able to pick up a copy of IO as they browse the aisles. For those U.S.-based retailers also<br />
heading to Germany this summer, following is a small selection of items set to be on display at OutDoor. For those unable<br />
to make the trip overseas, it’s a little taste of what you’ll be missing. Genießen Sie! 2005 2006 2007 2008 2009 2010<br />
15,158 Visitors<br />
Very satisfied<br />
In between<br />
15,529 Visitors<br />
16,900 Visitors<br />
18,900 Visitors<br />
Somewhat satisfied<br />
Somewhat dissatisfied<br />
19,300 Visitors<br />
24,460 Visitors<br />
Does not a<br />
Very dissa<br />
Brunton<br />
Icon are Brunton’s new highend<br />
binoculars coming with 44<br />
mm objective diameter and either<br />
8-fold or 11-fold magnification.<br />
These binoculars are positioned as<br />
top-of-the-range models with SK<br />
nano-coated prism glass, ED objective<br />
lens and super fast focus. The<br />
Interchangeable Eyecups System,<br />
including glare reducing flared<br />
eyecups, ensures interference-free<br />
glassing. Steadfast shock, water<br />
and fogging resistance keep the<br />
view sharp and pristine. The field<br />
of view covers 356ft/314ft at a distance<br />
of 1000 yards (8-fold/11-fold).<br />
Source: Messe Friedrichshafen<br />
All Icon binoculars are covered with Brunton’s Halo warranty:<br />
for any reason and anywhere, any Icon will be replaced immediately.<br />
www.brunton.com<br />
Easton Mountain Products<br />
Breaking away from the conventional aluminum poles with<br />
shock cord system, the new Kilo tent uses Easton carbon<br />
poles and the new AirLock technology to make it one of the<br />
lightest free-standing, two-person tents<br />
on the market. Through AirLock<br />
technology, each pole works<br />
independently of the other<br />
and is simply connected<br />
by the AirLock<br />
connectors. Each<br />
AirLock segment<br />
contains a 5-inch<br />
28 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
summer 2011<br />
Product Market Showcase<br />
monofilament tether, a floating ferrel made of high-strength<br />
aluminum wrapped in carbon and two pressure-molded delrin<br />
connectors for each pole end. This high-strength, low-weight<br />
connection system eliminates the long shock cord that most<br />
tents use and is 56 percent lighter than other two-person pole<br />
systems, says Easton. The whole tent at trail weight, including<br />
tent, fly, pole system and stakes, weighs in at 910 grams, less<br />
than 1 kilo. Offering 26 square feet of floor area, suggested<br />
retail for the Kilo is $399.99 (USD).<br />
elete<br />
The new elete CitriLyte Add-In is a patent-pending<br />
electrolyte concentrate<br />
formulated to help individuals<br />
stay hydrated, support muscle<br />
function, heat tolerance,<br />
energy conversion and<br />
replace a complete<br />
balance of<br />
electrolytes lost in<br />
sweat and during<br />
exertion. The new<br />
add-in formula<br />
contains original<br />
elete Electrolyte-<br />
Add-In with<br />
the electrolytes<br />
sodium, potassium, magnesium and chloride with the added<br />
benefits of zinc and citric acid. In keeping, too, with the<br />
original formula, elete CitriLyte does not contain sugars, carbs,<br />
artificial colors or flavors. And like original elete Add-In, elete<br />
CitriLyte can be used worry-free in hydration packs, bottles<br />
and coolers without staining or leaving a lingering color and<br />
flavor residue. Indeed, elete CitriLyte will not leave a sticky,<br />
syrupy mess that requires soapand-water<br />
clean up after each<br />
use. 800.669.1297 or www.<br />
eletewater.com<br />
Gregory<br />
The expedition-inspired<br />
Gregory Alpaca roller series<br />
combines the roomy capacity<br />
of a burly duffel with the<br />
ease of use of a roller bag,<br />
but the heart and soul of this<br />
wheelie is Gregory’s new<br />
custom-designed chassis. This<br />
revolutionary design allows for<br />
more efficient packing, better<br />
control over the bag while<br />
walking and protects the contents<br />
more effectively than other rollers. An extrawide<br />
handle that retracts into the chassis frame on either<br />
side of the bag means better stability and a more natural gait<br />
while walking with a roller. Because the handle doesn’t take<br />
up interior space when stowed, that also means flat packing<br />
of clothes and a more efficient use of critical internal space.<br />
Finally, the chassis design offers better protection of internal<br />
contents, while the handle self-locks without a button/cable<br />
mechanism, which means there aren’t mechanical parts that<br />
can fail over time. The Alpaca series has TPU coated 1,200<br />
denier ballistic material exterior and alternate carrying options,<br />
because hauling a bag should never be the most challenging<br />
part of an adventure. Available in two sizes (22 inches and 28<br />
inches), suggested retail is $299 and $349 (USD).<br />
GSI Outdoors<br />
The new Halulite Minimalist<br />
is a one-person system for<br />
packing, cooking, eating and<br />
drinking that weighs just 6.3<br />
ounces. The package includes<br />
a 0.6-liter pot, insulated<br />
sleeve, pot gripper, dual-use<br />
lid and telescoping foon.<br />
Water is boiled in the<br />
pot and handled with<br />
a compact silicone<br />
gripper. The gripper<br />
is bright orange<br />
and has a magnet<br />
built in so that it can<br />
be attached to the<br />
stove canister to prevent<br />
loss. When boiled water is used for a beverage, the pot slips<br />
into the insulated sleeve, the Sip-it lid is added and the whole<br />
thing is transformed into a mug.<br />
KIALOA Paddles<br />
KIALOA’s new IKAIKA Series draws its strength from<br />
revolutionary continuous<br />
fiber reinforced thermoplastic<br />
(CFRT) technology,<br />
which adds the performance<br />
benefits of carbon and glass<br />
fibers to the strength of<br />
thermoplastic polymers, creating<br />
amazingly lightweight<br />
yet virtually indestructible<br />
stand up paddles at incredible<br />
prices. The Pupu ($149<br />
USD), an excellent paddle<br />
for beginners, features a<br />
solid blade utilizing CFRT<br />
technology, a 100 percent<br />
fiberglass shaft and a<br />
comfortable fiberglass palm<br />
grip. The Hapa ($199 USD)<br />
is a mid-range paddle that<br />
features a cored CFRT<br />
blade which enhances<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 29
Product Market Showcase summer 2011<br />
strength-to-weight ratio, a carbon and fiberglass blended shaft<br />
and a fiberglass palm grip. The Lau Lau ($259 USD) is the<br />
premier paddle in the line, featuring a cored CFRT blade<br />
engineered with a blend of carbon and glass fibers for ultimate<br />
strength-to-weight ratio, a 100 percent carbon fiber shaft and a<br />
carbon T-top. 541.382.5355 or www.kialoa.com<br />
Kiva Designs<br />
More than an ordinary messenger<br />
bag, the new Kiva Tour<br />
Messenger Brief allows users to<br />
zip through airport security lines<br />
via the side-access laptop pocket<br />
that fits up to a 16-inch laptop. A<br />
back zippered smart pocket can<br />
slip over the roll-aboard handle<br />
for hands-free carrying. A front<br />
zippered pocket provides quick<br />
access to other essential items,<br />
and the file pockets in the zippered<br />
main compartment organize reading materials.<br />
Other highlights include a dual-adjust, no-slip shoulder<br />
strap and a front, under-the-panel organizer pocket. With a capacity<br />
of 1,352 cubic inches, suggested retail is $69.95 (USD).<br />
707.748.1614 or www.kivadesigns.com<br />
Klymit<br />
Representing the first NobleTek<br />
insulated piece for women, Klymit<br />
introduces the Caldera, featuring a<br />
more feminine shape, four-way stretch<br />
material, moisture-wicking lining and<br />
NobleTek, the only adjustable insulation<br />
on the market. Harnessing the<br />
insulative properties of Argon gas,<br />
the Caldera offers the warmth of a<br />
500-fill down jacket with the press of<br />
a button. Alone or under a shell, the<br />
Klymit Caldera offers all the insulation<br />
necessary for the changing<br />
weather conditions of a day on the<br />
slopes. Available in sizes small to<br />
extra large, MSRP is $224.99 (USD).<br />
Klymit also recently introduced the Inertia XL<br />
Frame, its first-ever full-size<br />
camping frame. Like the warm<br />
weather Inertia X-Frame, the<br />
Inertia XL provides maximum<br />
comfort for minimalist campers.<br />
www.klymit.com<br />
Mad Water<br />
Mad Water launches a new<br />
Action Sports Pack System so<br />
unique, the company says it<br />
can’t be matched anywhere.<br />
Each backpack has a hydration compartment (2-liter bladder<br />
included) and a separate 10-liter waterproof compartment.<br />
And by “waterproof,” Mad Water means completely submersible.<br />
Not that anyone needs to hydrate at the bottom of<br />
the river, but Mad Water understands extreme enthusiasts<br />
require extreme performance. And waterproof performance<br />
is just one feature on a list of features that led to Mad<br />
Water being named the official pack of the United States<br />
Adventure Racing Association. 706.955.0245 or<br />
jay@rocgear.com<br />
Marker-Völkl<br />
Marker-Völkl is launching a new line of “sticks”<br />
for the 2011/12 ski season. The new line, called<br />
Phantasticks, offers a diverse selection of ski poles<br />
designed to offer superior performance as a standalone,<br />
Völkl-branded product, going beyond simply<br />
offering matching poles for the company’s skis. The<br />
Sticks collection includes five distinctive types of<br />
poles available in an array of materials, color combinations<br />
and lengths: Phantastick, available in adult,<br />
junior and kid sizes, with unique colors and graphics designed to<br />
add pop on the retail floor; Puristick, featuring pastel and metallic<br />
finishes with soft-touch, white grips, offering a feminine look and<br />
feel; Speedstick, offering soft grips and a resilient shaft in both<br />
adult and junior sizes, while meeting the needs of competitive<br />
racers; Tricstick, available in a range of<br />
short lengths for all types of freeskiing;<br />
and Magistick, composed of carbon<br />
graphite to be the lightest<br />
pole in the range. Suggested<br />
retail prices range<br />
from $29 to $89 (USD).<br />
www.volkl.com/ski<br />
Mountainsmith<br />
Designed as a<br />
lightweight Kevlar<br />
reinforced ripstop<br />
nylon stowaway piece<br />
for travel or backcountry<br />
pursuits, the Daylite sports a zippered interior pocket that cleverly<br />
converts to a “stash and dash” storage pocket for on-the-go<br />
travel. The bright yellow pocket ensures that it is easy to find in<br />
a pack or suitcase. Side mesh pockets and a<br />
zippered front panel pocket provide additional<br />
storage. The removable shoulder strap offers<br />
an alternative way to carry the pack, while<br />
3M reflective highlights increases visibility.<br />
Meanwhile, nine returning lumbar packs are<br />
now offered in seven colors and are made from<br />
recycled ReDura fabric. This is the company’s<br />
next step in the evolution of utilizing recycled<br />
or sustainable materials for the majority of their<br />
products. www.mountainsmith.com<br />
30 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
EXPLORE THE<br />
GLOBAL SHOW<br />
The annual summit of the outdoor industry.<br />
With innovative side events for the business community.<br />
July 14 – 17, 2011<br />
Friedrichshafen, Germany<br />
www.outdoor-show.com<br />
For trade visitors only
Product Market Showcase summer 2011<br />
Nemo Equipment<br />
Nemo enters the tipi-style tent<br />
category with the new Pentalite<br />
after coming to the conclusion<br />
that “five sides are better than<br />
four.” The pentagonal shape<br />
allows a near rectangular<br />
sleeping area, ideal for four<br />
people, and a roomy additional<br />
triangular vestibule area, says the<br />
company. Convert the Pentalite shelter<br />
into a full tent by adding the optional Wedge inner tent.<br />
To minimize weight, the Wedge mesh wall zips to the Pentalite<br />
shell while the floor attaches along the three remaining<br />
sides to make a bugproof shelter with a high bathtub<br />
floor. Trekking poles lashed together or a kayak paddle can<br />
be used instead of the included pole. Side guy out vents<br />
increase ventilation and interior volume and both vestibule<br />
doors can be tied back to further increase ventilation or create<br />
a sunshade. Suggested retail is $369.95 (USD) for the<br />
Pentalite and $139.95 (USD) for the Wedge. 603.881.9353<br />
or www.nemoequipment.com<br />
PrimaLoft<br />
PrimaLoft recently conducted the bluesign screening and<br />
was subsequently awarded compliance with the bluesign<br />
criteria. Effective immediately, PrimaLoft’s ONE, SPORT and<br />
ECO insulation products manufactured in Nantong City, China<br />
will carry bluesign certification to ensure brands, retailers<br />
and consumers that the products can not only be<br />
counted on for stellar performance but also are<br />
safe for the environment and human beings. Furthermore,<br />
brands and retailers seeking to become<br />
bluesign members with certified bluesign products<br />
are required to use bluesign approved raw materials<br />
and fabrics from suppliers and textile mills that<br />
are certified bluesign system partners, such as<br />
PrimaLoft. www.primaloft.com<br />
Proof<br />
All models of Proof<br />
eyewear come in three different<br />
wood species that are<br />
harvested from sustainable<br />
sources: ebony, zebrawood and<br />
bamboo. Different wood species and<br />
grains in each frame make every pair of shades unique – no<br />
two pairs are alike, says the company. To make the shades<br />
even more unique to individual style, Proof offers a few different<br />
lens options: a non-polarized fade lens, polarized<br />
lens and two mirrored finishes (fools gold, indigo).<br />
Because these are made of wood, the sunglasses sit<br />
very comfortably and light on the face. Proof offers<br />
four models: The Buds, The Boise, The Birds (pictured) and The<br />
Sleep Well.<br />
Play Hard.<br />
Available at Outdoor & Travel Shops Nationwide<br />
W W W . C O C O O N U S A . C O M | 1.800.254.7258<br />
32 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
summer 2011<br />
Product Market Showcase<br />
Cake. All of which are uni-sex, besides The Cake model, which<br />
is a little something more for the ladies. 801.835.3875, taylor@<br />
iwantproof.com or www.iwantproof.com<br />
Saxx<br />
Developed and designed<br />
to fit better, every pair of Saxx<br />
men’s underwear features a<br />
patented Ergonomic Comfort<br />
Pouch, consisting of parallel<br />
stretch mesh side panels with<br />
an articulated front pouch that<br />
has no inner seam, which eliminates<br />
contact between<br />
a man’s package<br />
and inner thigh.<br />
Crafted to fit the natural contour of a man, Saxx are<br />
available in four fabric options. 24-Seven is the company’s<br />
original medium weight, soft-stretch cotton,<br />
designed for everyday comfort. It’s available in boxer<br />
brief and trunk cuts. Pro Elite is a high-performance,<br />
stretch polyester that breathes and wicks away moisture.<br />
Integrated support and added compression keep<br />
everything in place. Pro Elite is available in boxer brief<br />
and long leg cuts. Ultra models, in boxer brief and<br />
trunk cuts, feature a soft stretch viscose made from<br />
natural fibers for a fabric that’s lighter weight, breathable,<br />
moisture wicking and comfortable. And, last but not least,<br />
Luxury models sport an advanced blend of modal and staple<br />
cotton to create a soft, sleek wearing experience for those that<br />
are worth it. Luxury styles are available in boxer brief and trunk<br />
cuts. 888.409.7299 or www.saxxunderwear.com<br />
Schoeller<br />
Optic effects that could previously only be achieved through<br />
laborious handcrafting can now be industrially produced without<br />
losing any of their fascination, says Schoeller, thanks to a new<br />
ecological dyeing process called “One of kind.” The appearance of<br />
every meter of this specially dyed One of a kind fabric arises by<br />
random chance, making every garment a distinctive, unique item.<br />
The One of kind dyeing<br />
process can be applied in<br />
various color combinations<br />
and to different fabrics. Individual,<br />
exclusive one-offs<br />
can be created. Schoeller<br />
will be showing a durable<br />
textile with a NanoSphere<br />
finish dyed in the One of<br />
a kind process at Out-<br />
Door. This abrasion resistant<br />
fabric is perfect for trousers<br />
or pants that will hold their<br />
good looks and functions<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 33
Product Market Showcase summer 2011<br />
indefinitely. Pictured here is a distinctive, inspirational snapshot<br />
captured on fabric by this completely new, dyeing process. www.<br />
schoeller-textiles.com<br />
ShedRain<br />
After more than 64 years<br />
in business, ShedRain continues<br />
to improve its best-selling<br />
umbrellas. Featuring Teflon<br />
fabric protector, it means the<br />
end of folding up a wet soggy<br />
umbrella. Rain beads and rolls<br />
off with one shake. Umbrellas<br />
treated with Teflon fabric<br />
protector come in a full range of<br />
sizes. Compacts, great for one<br />
person up, ranging to golf/sport<br />
umbrellas, perfect for a family.<br />
www.shedrain.com or www.<br />
teflon.com/insideoutdoor<br />
Stansport<br />
The new H.D. Camp Table with Folding Bench Seats is<br />
a rugged table made of high-density polyethylene (HDPE).<br />
HDPE provides greater tensile strength than lower-density<br />
polyethylene, while the table and bench seats are supported<br />
by steel telescopic legs. Accommodating four hungry<br />
campers, table and<br />
benches set up in a<br />
matter of seconds.<br />
Benches fold and<br />
fully nest inside the<br />
table’s interior making<br />
this unit versatile<br />
and very mobile for<br />
camping or tailgating.<br />
Also check out the new<br />
Star Lite Back Pack Tent with<br />
Full Fly. This is the lightest twoperson,<br />
three-season tent in the Stansport<br />
line. This new two poled cross design creates a<br />
strong ultralight tent with generous interior volume<br />
requiring very little set up time, says the company.<br />
800.421.6131 or www.stansport.com<br />
Stoneman Sports/<br />
SpareHand Systems<br />
For use on a boat dock,<br />
patio, home, garage or store<br />
demo, the G-300 SS C-Deck<br />
features built-in anchor points<br />
for easy mounting and is the<br />
perfect height to be used as<br />
a work stand. The upper level<br />
of the rack can accommodate<br />
kayaks with drive systems,<br />
and an exclusive Multi-Stage Rust Prevention system makes<br />
it suitable for all weather climates. Offering flat placement<br />
of a boat on both upper and lower levels, the rack provides<br />
easy access for adults and children. Made of stainless<br />
steel, it features easy assembly with no moving parts<br />
and excellent portability. Suggested retail is $349 (USD).<br />
626.338.8998 or rcortez@stonemansports.com<br />
Sunday Afternoons<br />
A classic sun fedora style, the<br />
new Charter hat sports a lightweight<br />
shaped crown for a crisp, distinguished<br />
look. Many technical<br />
details include an internal<br />
Anchor Lock sizing system,<br />
UPF 50+ mesh panel and breathable<br />
nylon sun fabric on top,<br />
slipstream venting, chinstrap with<br />
cord lock, security pocket and<br />
stain resistance. Targeting<br />
men 40 years and older, the<br />
Charter hat is packable, quick<br />
drying, lightweight and floats. Available in two sizes, suggested<br />
retail price is $49 (USD). www.sundayafternoons.com<br />
Vaude<br />
Vaude is using spundyed<br />
raw materials for its<br />
new Lemniscate Collection<br />
rather than conventional<br />
bath dye techniques. The<br />
advantage is an ecologically<br />
optimized process<br />
in which the raw materials<br />
are dyed before they are<br />
woven. This reduces water consumption by nearly 90 percent<br />
because the need to dye and rinse the product is eliminated.<br />
Secondly is energy conservation as C02 emissions and the<br />
use of chemicals are each reduced by about 60 percent, says<br />
the company. This Vaude material is called “ecolour” and it<br />
features comparable levels of light resistance, water resistance,<br />
colorfastness and overall quality. This comprehensive<br />
collection features 21 products, with all Lemniscate models<br />
based on a horizontal figure 8. This mathematical symbol for<br />
infinity is used as a unifying design element throughout the<br />
collection – be it a small waistpack, practical shoulder<br />
bag, laptop bag, sport bag, daypack or trolley.<br />
+49 (0)7542 5306-130 or www.vaude.com<br />
Wenger<br />
Wenger and professional mountaineer<br />
Ueli Steck have unveiled the Ueli Steck<br />
Special Edition Swiss Army Knife with tools<br />
designed for climbers or any outdoor<br />
pursuit that requires<br />
in-action equipment adjust-<br />
34 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
summer 2011<br />
Product Market Showcase<br />
ment. One of three knives in the new Titanium Line, made<br />
from lightweight titanium and thick, high strength steel, was<br />
developed and tested by Steck, who holds world records for<br />
speed ascents of the famous north faces of the Alps: Matterhorn,<br />
Eiger and Grandes Jorasses. The locking blade can be<br />
opened with a single hand, while the blade securely locks in<br />
position and, even with gloves on, can be disengaged by depressing<br />
the Wenger cross or shifting the liner lock. It boasts<br />
2.6-mm thick partially serrated blade, three hex keys and a<br />
plateau on the reverse side of the blade to act as a very powerful<br />
flat head screwdriver. A quarter-inch bit adapter is built<br />
into the handle casing to attach hex, Philips and flat head bits<br />
or any other bit that might fit one’s specific equipment. The<br />
tool also features a metal saw and file, can<br />
opener, locking screwdriver and lightweight<br />
pouch. www.wengerna.com<br />
Wilcor<br />
The new Hiker 35 Day Trip internal<br />
frame backpack is a panel-load style<br />
pack designed to hold gear and supplies<br />
for a day hike or climb. With a<br />
35-liter capacity main compartment,<br />
medium-size front load compartment<br />
and a small easy-access pocket,<br />
the Hiker 35 features heavy duty<br />
zippers with protective flaps, metal internal backpack frame<br />
for stability and comfort, adjustable padded foam shoulder<br />
straps with extra foam and mesh ventilation for comfort and<br />
to keep you cool and dry and an adjustable chest belt to<br />
stabilize the pack. Other features include an adjustable waist<br />
belt with ventilated mesh and foam, webbing daisy chain to<br />
attach extra gear and a hydration pack pocket that fits most<br />
water bladders (water bladder not included). 800.346.2345 or<br />
www.wilcor.net<br />
WRSI<br />
Long trusted as one of the leading whitewater helmet companies<br />
in the world, Whitewater Research and<br />
Safety Institute has released its first composite<br />
helmet. The new Trident carbon<br />
composite helmet uses<br />
the same multiple density<br />
liner and Interconnect<br />
Retention System<br />
that WRSI has come<br />
to be known for in<br />
a composite look<br />
and performance.<br />
435.901.2571 or<br />
www.whitewater<br />
helmet.com<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 35
Back Office<br />
Take it to the Bank<br />
Improving your banking relationship<br />
by Ritchie Sayner<br />
Until the fall of 2008, obtaining or<br />
extending a line of credit with a bank or<br />
even getting a small business loan was<br />
a relatively painless process. But as we<br />
entered 2011, the banking environment<br />
continued to pose challenges for<br />
retailers looking for financial assistance.<br />
With that in mind, I recently spent<br />
some time talking with bankers as well<br />
as retailers to find out why banks have<br />
been reluctant to extend credit to even<br />
the most creditworthy retailers.<br />
As for the retail perspective on these<br />
matters, I had one retailer tell me he<br />
“hasn’t felt much like a customer lately,”<br />
when describing his long-term banking<br />
relationship. I also heard from retailers<br />
who have had their credit lines reduced<br />
by as much as 30 percent even if they<br />
weren’t currently being used. In yet<br />
another instance, a bank wanted sevenfigure<br />
life insurance policies on both the<br />
owner and his wife in order to secure<br />
financing for a particular project.<br />
One store I spoke with shared with<br />
me that his bank wasn’t even interested<br />
in his inventory as collateral and would<br />
only take real estate. Perhaps the<br />
most disturbing case involved a bank<br />
demanding more collateral from a retailer<br />
or risk having the note “called.” In the<br />
eyes of this bank, more collateral meant<br />
more inventory, since inventory to the<br />
bank is an asset. This was a slow turning<br />
store that kept inventory levels way above<br />
optimum levels. They also resisted taking<br />
markdowns on old goods for fear the bank<br />
would get nervous when lower gross<br />
margin figures were discovered. The store<br />
felt they were actually being forced into<br />
making bad business decisions. Talk about<br />
being in a no-win situation.<br />
After likewise speaking with bankers,<br />
it’s apparent that even though there<br />
have been recent indications that banks<br />
are becoming somewhat more willing<br />
to lend to small businesses due to a<br />
gain in economic momentum, a retailer<br />
should expect more reluctance than in<br />
previous years. The reasons are several,<br />
but they mainly stem from the increased<br />
requirements of bank examiners,<br />
declines in financial strength in some<br />
institutions, rise in past due and troubled<br />
assets, erosion of consumer confidence<br />
and an uncertain outlook for the future.<br />
What You<br />
Can Do Now<br />
If you have intentions of ending up<br />
with more than a cup of complimentary<br />
coffee and a free logoed pen from the<br />
next visit to your local banker, consider<br />
the following suggestions:<br />
• Communicate effectively and often.<br />
Bankers don’t like surprises.<br />
• Provide the banker with the information<br />
requested in a timely fashion. There are<br />
reasons behind every request.<br />
• Bankers look for positive trends. If you<br />
can deliver good news, do so.<br />
• Bankers are constantly looking to show<br />
management and examiners areas that<br />
will reduce the level of risk to the bank<br />
going forward. If you have a line of<br />
credit that can be reduced due to lack<br />
of use, consider reducing it.<br />
• Bankers are working harder because<br />
of increased scrutiny across many<br />
levels. Be prepared to supply more<br />
frequent financial data.<br />
• Don’t be combative or adversarial.<br />
Banking is a relationship business.<br />
Work with your banker not against him.<br />
• Strive to become the “A” customer,<br />
even though you may not always<br />
feel like one. This doesn’t mean<br />
that you have to have the best<br />
balance sheet or the highest volume<br />
store. Being responsive, truthful,<br />
timely, reasonable, available and<br />
cooperative will go a long way<br />
toward strengthening your banking<br />
relationships.<br />
36 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
Continued uncertainty most likely<br />
will challenge retailers throughout<br />
2011. In order to cope with an everchanging<br />
economic and financial<br />
climate there are steps you can take<br />
now. For starters, negotiate the<br />
longest payment plan you can with<br />
vendors. Try to sell at least half of<br />
what you are buying before you have<br />
to pay the invoice, and buy what you<br />
can from vendors that offer you the<br />
best terms.<br />
Consider the merits of the<br />
following strategy. Assume for<br />
a moment, that you are able to<br />
negotiate 60 day terms with a few<br />
key vendors and that you turn your<br />
inventory three times.<br />
For example, three turns<br />
equals 121.6 days of supply (365/3),<br />
so approximately half of the<br />
merchandise is sold by the time the<br />
invoice is due.<br />
Would 3.25 it ever in. be possible to sell<br />
all of the merchandise prior to paying<br />
for it? If you can get 90 day terms<br />
and turn the inventory four times,<br />
for all practical purposes, the entire<br />
inventory will be sold by the time the<br />
invoice is payable. (Four turns = 91<br />
days of supply or 365/4.)<br />
Simple math will show that two<br />
turns equals 26 weeks of supply, 2.5<br />
turns equals 20.8 weeks of supply,<br />
and three turns equal 17.3 weeks of<br />
supply. An improvement of only one<br />
week in annual sell through increases<br />
cash flow by approximately 1 percent<br />
of annual sales. This point alone<br />
makes the case for all retailers to<br />
strive for increased turnover.<br />
Use of personal credit cards also<br />
is becoming a very common practice<br />
when paying for merchandise. I<br />
know of a retailer that prefers to use<br />
a credit card when possible. This<br />
practice not only provides for longer<br />
payment options, “but an additional<br />
big benefit is hundreds and hundreds<br />
of dollars of free airfare,” says the<br />
Back Office<br />
retailer. This merchant also takes<br />
advantage of the points he gets to<br />
obtain gift cards, which are used as<br />
employee rewards.<br />
Just because credit is more<br />
difficult to come by now than it was in<br />
the past need not suggest that today’s<br />
retailer abandon all hope and adopt a<br />
“management by crisis” mentality.<br />
It does, however, mean that creative<br />
ways to finance growth be considered<br />
with improving inventory turnover<br />
being number one.<br />
Ritchie Sayner<br />
is vice-president<br />
of business<br />
development for<br />
RMSA, a national<br />
retail consulting<br />
company<br />
specializing in<br />
sales and inventory forecasting. He can<br />
be reached at rsayner@rmsa.com or<br />
816-505-7912.<br />
PART PLUS<br />
INFO<br />
GETTING<br />
PART<br />
IDEA<br />
SHARING<br />
Equals total government connecting.<br />
Get info. Find answers. Share<br />
ideas. Your connection begins<br />
at USA.gov – the official source<br />
for federal, state and local<br />
government information.<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 37
Green Sheets<br />
Material Gains<br />
Teijin’s CSR and Better Foam Technologies<br />
by Ernest Shiwanov<br />
I attended the 36th Semiannual<br />
Northwest Apparel and Footwear<br />
Materials Show (NWAFMA) with a<br />
familiar mission: find innovative, low<br />
carbon footprint materials and processes.<br />
More than 150 exhibitors showcased<br />
their wares on March 16 and 17 in this<br />
conveniently sized, well-run and less-thantwo-days<br />
format, one of two identical<br />
shows surgically focused on bringing<br />
suppliers in the footwear and apparel<br />
industry face-to-face with designers and<br />
product developers. The Northeastern<br />
version of this show is usually held a<br />
week earlier, in Danvers, Mass. This<br />
show is held in Portland, Ore.<br />
Since I help outdoor companies<br />
that are considering using<br />
eco-friendly methods in their<br />
product development cycle,<br />
green is always high on my list.<br />
Green, that is, with the same or<br />
better performance characteristics of<br />
petroleum-based resources. After all,<br />
most outdoor manufacturers used<br />
petrochemical materials to initially<br />
forge their legacies. So it is of utmost<br />
importance to attain the no-compromise<br />
performance demanded by the brand’s<br />
product heritage.<br />
Unfortunately, due to the worldwide<br />
economic recession, adoption and<br />
evolution of low carbon footprint<br />
technologies have slowed throughout<br />
all industries. Yet at the core of this<br />
implementation lies a corporate culture<br />
that either faces the inevitable challenges<br />
or continues to procrastinate until it is<br />
required by international policy. The bulk<br />
of the manufacturers I spoke with at the<br />
show are somewhere in between those<br />
two mindsets. A prominent connector<br />
manufacturer not exhibiting at the show<br />
candidly told me his company is marketdriven<br />
with no plans to alter its business<br />
model. Other suppliers, however, are<br />
motivated by opportunities. Qualifying<br />
as a Nike’s Considered Design vendor<br />
carries a definite cachet amongst the<br />
anointed, many of which were not shy<br />
in making sure we know. Considered<br />
Design is a Nike program aimed at using<br />
sustainable development practices in<br />
their designs, processes<br />
and supply chain, in<br />
order to “lessen<br />
our impact<br />
on<br />
the environment and society,” say Nike<br />
executives.<br />
Nevertheless, of all the exhibitors<br />
I spoke with at the NWAFMS, it was<br />
reassuring to see early adopters and<br />
innovators alive and kicking.<br />
The Familiar Face<br />
of an Early Adopter<br />
No partnership has affected as much<br />
change in the outdoor textile landscape<br />
as Teijin Cordley Ltd. and Patagonia.<br />
Eighteen years ago, Teijin Cordley, part<br />
of the Teijin Group, started a program<br />
with Patagonia to build fleece apparel<br />
with PET (polyethylene terephthalate)<br />
recycled from soft drink bottles. Back<br />
then, Teijin was the only large scale<br />
company manufacturing recycled PET<br />
fiber for fleece. Today, many companies<br />
now offer some recycled or renewable<br />
fabrics within their product offerings.<br />
However, Teijin did not stop there.<br />
In 2005, Teijin and Patagonia entered<br />
into an agreement establishing a<br />
New Balance Tao sandal made with PLUSfoam and PLUSfoam’s FUSIONfoam.<br />
garment take-back recycling program.<br />
The first of its kind on a global<br />
scale, Patagonia’s Common Threads<br />
Recycling Program effectively closes<br />
the recycling loop giving consumers<br />
real cradle-to-cradle (see Green<br />
Glossary page 42) options for worn<br />
apparel. In 2007, the Teijin Group, as<br />
part of its corporate social responsibility<br />
(CSR), established design guidelines<br />
and a timeline to accomplish its<br />
environmental targets. The year 2009<br />
saw all PET-based fibers (save Aero<br />
Top) manufactured by Teijin switched to<br />
recycled PET, with costs, performance<br />
and physical characteristics similar to<br />
virgin polyester. Teijin has built upon<br />
its environmental goals in 2010 with<br />
its Earth Symphony initiative, a seal<br />
the company imparts to products it<br />
38 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
Green Sheets<br />
makes that meet its 2007 Design for<br />
Environment (DfE) guidelines.<br />
Ever a step ahead, the Teijin Group<br />
has imbued an “‘oil-free’ recyclingoriented<br />
business model” in its textile<br />
division, says Shigeo Ohyagi, president<br />
and CEO of the Teijin Group. Witness<br />
2011: the Teijin Group has taken another<br />
step toward that aspiration. They joined<br />
the United Nations Global Compact.<br />
The UN Global Compact is both a<br />
policy platform and a practical framework<br />
for companies that are committed to<br />
sustainability and responsible business<br />
practices, according to the initiatives<br />
Web site. As a multi-stakeholder<br />
leadership initiative, it seeks to align<br />
business operations and strategies<br />
with 10 universally accepted principles<br />
in the areas of human rights, labor,<br />
environment and anti-corruption and to<br />
catalyze actions in support of broader UN<br />
goals. With nearly 5,200 signatories in<br />
more than 130 countries, it is the world’s<br />
largest voluntary corporate responsibility<br />
initiative, says the United Nations.<br />
Better Foams<br />
& Garden<br />
Another bright spot in an otherwise<br />
monotonous sea of trade show white<br />
noise was some promising news on<br />
more eco-friendly foams, spurred<br />
by improvements in polyurethane<br />
chemistry. Petroleum-based foams have<br />
proved to be doggedly resistant when it<br />
comes to finding suitable replacements<br />
that are comparably priced, bio-based<br />
and with a low carbon footprint. The<br />
technologies exhibited at the show by<br />
PLUSfoam and Merquinsa clearly show<br />
the game-changing environmental<br />
potential. Before I dive into these<br />
new technologies, let’s start with a<br />
primer on foams with an emphasis on<br />
polyurethane.<br />
Today, most of the foams the outdoor<br />
industry uses have some serious<br />
problems: 1) they do not biodegrade<br />
easily, 2) it takes lots of energy or time<br />
for them to decompose, and 3) when<br />
they do, they have a host of toxins in<br />
tow. Polyurethane (PU), in particular, the<br />
most ubiquitous of all foams (you are<br />
probably sitting on a chair cushioned<br />
with polyurethane foam right now),<br />
has all these issues. Unfortunately (or<br />
fortunately), its low price and functional<br />
versatility has almost no equal. The<br />
problem with polyurethane lies in its<br />
chemistry. In its most basic form, it<br />
is composed of two components:<br />
isocyanates and polyols. Both chemicals<br />
are derived from petroleum.<br />
In recent years, with the price of a<br />
barrel topping out at more than $140,<br />
motivated researchers have been<br />
thinking of ways to eliminate PU’s<br />
dependence on oil. Around 2004, soybased<br />
polyols became commercially<br />
available and can constitute up to 95<br />
percent of the polyols’ half of PU.<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 39
Green Sheets<br />
Typically, the renewable polyol content<br />
in PU foams is less than 30 percent.<br />
The Ford Motor Company has more<br />
than two million vehicles on the road<br />
with 25 percent bio-based polyol foam<br />
content, says Ford. So there has been<br />
some progress on lowering the carbon<br />
footprint and use of non-renewable<br />
resources on PU’s polyol component.<br />
and a wide functional temperature and<br />
hardness range.<br />
The early adopters are starting to<br />
line up. Smith Optics’ Evolve goggle<br />
line features Pearlthane ECO, with 44<br />
percent bio-based content. Merquinsa<br />
also is working with Brooks Sports on<br />
running footwear. As you might recall,<br />
Brooks, way back in 2008, launched its<br />
FUSIONfoam is recycled PLUSfoam compressed with heat and pressure to create<br />
the multicolored foam between the recyclable PLUSfoam topsheet and outsole.<br />
As you can guess, the foam<br />
component with the problem is the<br />
isocyanates. There is no real solution as<br />
of today that effectively deals with this<br />
component. It can be very irritating if<br />
inhaled or absorbed though unprotected<br />
skin. High heat or fire can produce highly<br />
toxic gases including carbon monoxide,<br />
carbon dioxide, nitrous oxide and<br />
hydrogen cyanide.<br />
Hard at work on the polyurethane<br />
front is Merquinsa. They have commercialized<br />
several products such as<br />
Pearlthane and Pearlbond ECO to<br />
create a family of thermoplastic PUs<br />
(TPU). Pearlthane and Pearlbond ECO<br />
not only feature renewable polyol<br />
content, but as a thermoplastic, it is<br />
now possible to break it down and/or<br />
recycle it. Pearlthane ECO has other<br />
great properties. It can be extruded and<br />
injected and has great tear, abrasion,<br />
oil, solvent and chemical resistance<br />
first biodegradable midsole, BioMoGO.<br />
Dennis Lauzon, vice president<br />
Merquinsa North American, emphasized<br />
the fact that the TPU business is a<br />
“commodity business.” As the cost<br />
of oil goes up, in the next two to four<br />
years, bio-based polyol TPUs will be<br />
on “parity with today’s non-renewable<br />
technologies.”<br />
Even much more exciting, Lauzon<br />
said the industry should have “drop-in<br />
molecules” or “component building<br />
blocks,” including isocyanates, that are<br />
100 percent bio-based within a decade.<br />
When that happens, as Lauzon assures,<br />
Merquinsa will be there to play its<br />
strategic upstream role.<br />
Another exciting technology<br />
gathering momentum is PLUSfoam<br />
and FUSIONfoam. Co-founders, Brett<br />
Ritter, CEO, Jason Stanson, COO, and<br />
Ken Wong, CFO, have cobbled together<br />
a proprietary TPE (thermoplastic<br />
40 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
Green Glossary<br />
elastomer). TPEs were originally<br />
developed by the automotive industry<br />
looking for a material that could handle<br />
wide temperature fluctuations and was<br />
tougher than typical polyurethanes.<br />
PLUSfoam, unlike Merquinsa’s<br />
Pearlthane ECO, has one distinctive<br />
difference: it does not contain urethane.<br />
As a TPE, it has many of the<br />
characteristics of EVA (ethylene vinyl<br />
acetate – commonly used in running<br />
shoes) such as compression set and<br />
hardness (durometer). Even the price<br />
will be comparable to good quality EVAs.<br />
However, it has a wide assortment of<br />
production options such as extrusion,<br />
“sheet formed, vacuum formed, drape<br />
formed, cut and buffed, skived, split,<br />
cold press molded, compression<br />
molded and injection molded,” says the<br />
company. In addition, PLUSfoam’s own<br />
manufacturing scrap or used PLUSfoam<br />
in consumer goods can be easily broken<br />
down and made into “new” products. To<br />
remind consumers of the environmental<br />
benefits of PLUSfoam, products are<br />
hang-tagged with PLUSfoam’s California<br />
recycle center address. Similar to the<br />
Patagonia Common Threads Recycling<br />
Program, the consumer can take an<br />
active role in closing the recycle loop by<br />
sending their used PLUSfoam goods to<br />
PLUSfoam reprocessing.<br />
“We provide a full environmental<br />
platform for marketing the benefits of<br />
PLUSfoam including a back end solution,”<br />
states Stanson. PLUSfoam already has<br />
garnered the attention of O’Neil and<br />
New Balance, both of which are large<br />
consumers of foam. So substituting even<br />
a small amount of their current foams<br />
with low carbon footprint foams will be<br />
a significant move toward conservation<br />
of non-renewable resources – not to<br />
mention the money and energy everyone<br />
will save from reusing all scrap during<br />
manufacture or re-manufacture.<br />
As the economy shows signs of<br />
a rebound and with petroleum costs<br />
going nowhere but up, conditions are<br />
moving in the direction of a perfect<br />
storm. For the savvy manufacturer,<br />
that means more research and<br />
development monies for finding ways<br />
to opt out of oil dependence.<br />
Investing in this position early on will<br />
not only save long-term energy costs,<br />
but a mature technology is a lot easier of<br />
a sell than a new one, or not having one<br />
at all. More importantly, it also shows<br />
a corporate citizen’s commitment, like<br />
the product’s lifecycle, to more than<br />
just a quick buck.<br />
Ernest Shiwanov, IO’s editor-atlarge,<br />
focuses on environmental issues<br />
as they relate to the outdoor retail<br />
industry. He also works with outdoor<br />
industry companies incorporating low<br />
carbon footprint technologies in product<br />
development and R & D cycles. He can<br />
be reached at ernest@bekapublishing.<br />
com or ernest@adrenalinshots.com.<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 41
Green Glossary<br />
The Green Glossary<br />
by Ernest Shiwanov<br />
Buzz words like sustainability, compostable and cradleto-grave<br />
are regularly bandied about by authorities and spinmeisters.<br />
Many use terms interchangeably or incorrectly. So<br />
Inside Outdoor decided to parse the greenwash lexicon and<br />
take a stab at a short glossary of definitions. The following<br />
definitions are as organic as the topics they address. They are<br />
more operative than definitive, with the underlying subtext<br />
being about the discourse that we hope to continue. Indeed,<br />
these definitions are “alive,” and we expect them to evolve as<br />
new standards are set, technologies are developed and our<br />
industry grapples with the “sustainability” (see below) of our<br />
businesses. A la Wikipedia, we welcome anyone who would<br />
like to add, change or modify definitions to submit their insight<br />
to ernest@bekapublishing.com. The Green Glossary will<br />
continue to appear in future issues of IO.<br />
3P (People, Planet, Profit)<br />
See Triple Bottom Line<br />
Biodegradable<br />
Aerobic decomposition of a organic matter through the<br />
action of microorganisms or aerobes. There are no standards<br />
for eco-toxicity or length of time before degrading to biomass<br />
and, in some cases, eco-toxins.<br />
bluesign standard<br />
Launched in 2000 as an initiative by Albers Group/Schoeller<br />
Technologies AG, among others, the bluesign standard is<br />
a certification scheme for textile ecology. Using OECD’s<br />
(Organization for Economic Cooperation and Development)<br />
test methods for determining the various ecotoxicological<br />
data needed for the standard, it strengthened its global<br />
marketing and technical reach when 50% of bluesign was<br />
purchased by Société Générale de Surveillance in 2008. SGS’s<br />
business model is built around ocean-going cargo inspection,<br />
raw material testing and testing of products from exporting<br />
companies or governments worldwide.<br />
Cap and Trade<br />
See Emissions Trading.<br />
Carbon Neutral or Carbon Offset<br />
To offset or neutralize net greenhouse gas emissions. This<br />
can be achieved by planting trees, using renewable energy,<br />
energy conservation and emissions trading. Critics contend<br />
there is no definitive evidence that carbon offsets work since<br />
there are no models or standards that clearly demonstrate<br />
the equilibrium.<br />
(Carbon) Sequestration<br />
See Uptake<br />
Compostable<br />
The biodegradability of an organic material, mostly<br />
to biomass, water and carbon dioxide. Compostable<br />
environments include industrial settings and common<br />
garden or open space locations. All standards agree on a<br />
six-month period for the organic matter to degrade. Most<br />
standards support these tests:<br />
• Does it biodegrade to carbon dioxide, water, biomass at the<br />
rate paper biodegrades?<br />
• Does the material disintegrate leaving no distinguishable or<br />
visible residue?<br />
• Are there any eco-toxic materials left, and can the remaining<br />
biomass support plant growth?<br />
American Society for Testing and Materials (ASTM) D6400-<br />
99 says to be considered compostable, materials must undergo<br />
degradation by biological processes during composting to yield<br />
carbon dioxide (CO2), water, inorganic compounds and biomass<br />
at a rate consistent with other compostable materials, leaving<br />
no visible, distinguishable or toxic residue.<br />
The EN (European Committee for Standardization or Comité<br />
Européen de Normalisation) standard is even more specific.<br />
EN13432 states that a material is deemed compostable if it will<br />
breakdown to the extent of at least 90 percent to H2O and CO2<br />
and biomass within six months.<br />
There are other standards as well with DIN V49000 from<br />
the German Institute for Standardization being the strictest in<br />
the allowance of heavy metals. Many might be familiar with<br />
DIN standards for their safe release ski bindings.<br />
Cradle-to-cradle<br />
The life cycle of a product from manufacture to re-manufacture.<br />
Cradle-to-gate<br />
The life cycle of a product or process from manufacture<br />
to end user. Also known as environmental product<br />
declarations (EPD).<br />
Cradle-to-grave<br />
The life cycle of a product from manufacture to end-of-use<br />
disposal (see table on page 41).<br />
Degradable<br />
A material that undergoes chemical change and a loss of<br />
original characteristics due to environmental conditions. There<br />
are no requirements for time, process or toxicity for this method.<br />
42 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
Emissions Trading (Cap and Trade)<br />
A practice in which businesses are given an emissions<br />
cap, in the form of credits, that allows them to pollute up<br />
to a maximum credit level. Businesses that exceed their<br />
cap must purchase (or trade) credits from a company that<br />
has not exceeded its cap or from trading platforms such as<br />
the Chicago Climate Exchange (CCX), the European Climate<br />
Exchange (ECX) and/or Montreal Climate Exchange (MCeX).<br />
Problems with the Cap and Trade concept include where to<br />
set the initial levels of the caps, retiring old credits, resetting<br />
caps and regulatory/compliance standards.<br />
Environmental Product<br />
Declarations (EPD)<br />
The life cycle of a product from manufacture to end user.<br />
Also know as cradle-to-gate.<br />
Gate-to-grave<br />
The life cycle of a product from the end user to endof-use<br />
disposal.<br />
Global Reporting Initiative (GRI)<br />
The Global Reporting Initiative, based in Amsterdam the<br />
Netherlands, is a registered, not-for-profit organization. It is funded<br />
by donations from all over the world including the Bill and<br />
Melinda Gates Foundation, the International Finance Corporation<br />
(IFC) and the Organizational Stakeholders.<br />
Considered the de facto world standard<br />
in sustainable development reporting, the<br />
GRI uses a global network of stakeholders<br />
to form a consensus-based process in<br />
shaping and revising its accounting structure.<br />
GRI encourages reviewing of the<br />
report outcomes by third-party assurance<br />
providers. However, there is no mechanism<br />
in place requiring these audits.<br />
institutional projects as of 2008 has gone to the Green Building<br />
Certification Institute (GBCI). Regardless of the LEED project, all<br />
must undergo third-party verification in order to receive LEED<br />
ratings of certified, silver, gold and platinum.<br />
Life cycle assessment (LCA)<br />
A comprehensive environmental assessment of the<br />
impact of a product or process, from inception to the end<br />
of its “life.” The assessment includes transportation of raw<br />
materials to the manufacturer, manufacturing of materials,<br />
transportation of materials to the product manufacturer,<br />
manufacturing of product, transportation of product to end<br />
users, impact of product by end user including disposal of<br />
product at its end of life.<br />
The assessment has been used as a tool to evaluate a<br />
product’s or company’s eco-performance, which in turn can be<br />
used to improve it.<br />
There are three different methods used in lifecycle analysis:<br />
1. process or bottom-up LCA using ISO 14040-2006 and 14044-<br />
2006 protocols;<br />
2. economic input output or EIO-LCA; and<br />
3. hybrid LCA, a combination of process LCA with economic<br />
input output LCA.<br />
LCAs are used as a tool to evaluate a product or company’s<br />
eco-performance, which in turn can be used to improve it.<br />
LEED Green Building<br />
Rating System<br />
Leadership in Energy and Environmental<br />
Design (LEED) is a certification<br />
rating system for structures designed and<br />
built with the goal of water efficiency,<br />
good indoor air quality, energy savings<br />
and an overall reduction in its carbon<br />
footprint. LEED is an open source tool<br />
created by a 501 (c) (3) non-profit, the<br />
US Green Building Council (USGBC). The<br />
USGBC, headquartered in Washington<br />
D.C., finances its activities by conducting<br />
educational programs for builders,<br />
designers, suppliers and operators,<br />
selling publications, accepting donations<br />
and sponsoring conferences. This allows<br />
the USGBC to revise LEED and conduct<br />
research. Third-party verification to<br />
assure compliance on commercial and<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 43
Life Cycle Management (LCM)<br />
An integrated approach to sustainable production and<br />
consumption through the management of a product’s or<br />
process’ life cycle.<br />
Life Cycle Energy Analysis (LCEA)<br />
The total life cycle energy input. Criticism in utilizing LCEAs<br />
include the argument that different energy sources have<br />
different potential value (exergy). Additionally, critics contend<br />
that LCEAs’ energy currency cannot supplant economic<br />
currency as the determinant in business.<br />
Montebello Agreement (see REACH)<br />
The Security and Prosperity Partnership (SPP) also is<br />
known as the Montebello Agreement, so named for the<br />
city in Quebec where the summit was held. The SPP Web<br />
site states that this is a Bush Administration, White Houseled<br />
initiative to increase security and economic prosperity<br />
in North America. Part of this voluntary framework is to<br />
establish risk characterization by 2012 of over 9,000 chemical<br />
substances produced in the U.S. in quantities over 25,000<br />
pounds per year. By 2020, Canada, Mexico and the U.S. will<br />
“strive to achieve…inventories of all chemical substances<br />
in commerce.” Many view the Montebello Agreement as a<br />
North American reaction to REACH, the European Union’s<br />
Registration, Evaluation, Authorization and Restriction of<br />
Chemicals, which went into EU law last June.<br />
Oeko-Tex<br />
International Association for Research and Testing in<br />
the Field of Textile Ecology or Oeko-Tex, was established in<br />
1993 by the Austrian Textile Research Institute, the German<br />
Hohenstein Research Institute and the Swiss Textile Testing<br />
Institute Testex. Today it has evolved into a group of 14 test<br />
institutes throughout Europe and Japan. Its certification<br />
programs, Oeko-Tex 100, Oeko-Tex 100plus and Oeko-Tex<br />
1000 focuses on what they term the four parts of textile<br />
ecology: production, human, performance and disposal<br />
ecology. Verification of Oeko-Tex 100, 100plus and 1000<br />
submissions are achieved through the ISO 14000 suite of<br />
environmental protocols, ISO laboratory testing protocols,<br />
DIN EN, and IEC standards. Oeko-Tex’s standards also exceed<br />
the current best practices as defined by the EU’s REACH (see<br />
REACH). The testing institutes forward their results to the<br />
Oeko-Tex Secretariat, which evaluates the applications, issues<br />
certificates to passing applications and tests for compliance<br />
during the issued period.<br />
Organic<br />
In textile technology, organic refers to standards ensuring<br />
sustainable practices during all phases of fiber production.<br />
Beginning with every aspect of cultivation under the National<br />
Organic Program (NOP) guidelines, post-harvest wet<br />
processes such as dying and bleaching, textile fabrication,<br />
manufacturing of goods, transportation, worker environment,<br />
labeling/compliance, packaging, exportation and importation<br />
are comprehensively addressed.<br />
Presently, there are no processing standards for organic<br />
fibers from the U.S. federal government beyond cultivation<br />
ending with the consumer.<br />
For standards related to organic food, please see: http://<br />
www.ams.usda.gov/nop/indexIE.htm.<br />
SPI Resin Identification Code<br />
Recycling No. Abbreviation Polymer Name Uses<br />
1 PETE or PET Polyethylene Terephthalate<br />
Recycled to produce polyester fibres, thermoformed sheet, strapping, soft<br />
drink bottles.<br />
2 HDPE High-Density Polyethylene<br />
Recycled to become various bottles, grocery bags, recycling bins, agricultural<br />
pipe, base cups, car stops, playground equipment and plastic lumber.<br />
3 PVC or V Polyvinyl Chloride Recycled to become pipe, fencing and non-food bottles.<br />
4 LDPE Low-Density Polyethylene<br />
Recycled to become plastic bags, various containers, dispensing bottles, wash<br />
bottles, tubing and various molded laboratory equipment.<br />
5 PP Polypropylene Recycled into auto parts and industrial fibers.<br />
6 PS Polystyrene<br />
Recycled into a wide range of products including office accessories, cafeteria<br />
trays, toys, video cassettes and cases, insulation board and expanded<br />
polystyrene products (e.g. styrofoam).<br />
7 OTHER<br />
Source: The Society of the Plastics Industry, Inc.<br />
Other plastics, including acrylic,<br />
polycarbonate, polylactic acid,<br />
nylon and fiberglass.<br />
PLA or Polylactic acid plastics at 100% content are compostable in a<br />
biologically active environment in 180 days.<br />
44 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
Oxo-biodegradation<br />
A two-step process that begins with degradation by<br />
oxidation, followed by biodegradation.<br />
A variation of this developed for polymers, such as<br />
polyethylene, add a degradability component during the material’s<br />
manufacturing. The added component allows the polymer to<br />
thermo- (heat), photo- (light) or hydro- (water) degrade within 90<br />
days in a commercial composting environment.<br />
It is purported that in non-commercial composting<br />
environments, the biodegradation will take place but at a much<br />
slower rate.<br />
The Precautionary Principle<br />
The EEB (European Environmental Bureau 1999) defines<br />
the Precautionary Principle as follows:<br />
2.1 The Precautionary Principle justifies early action to prevent<br />
harm and an unacceptable impact to the environment and<br />
human health in the face of scientific uncertainty<br />
2.2 Precaution places the burden of proof on the proponents<br />
of the activity.<br />
2.3 Precaution applies the substitution principle, seeking safer<br />
alternatives to potentially harmful activities, including the<br />
assessment of needs.<br />
2.4 Precaution requires public participation in decision-making.<br />
REACH (See Montebello Agreement)<br />
Registration, Evaluation, Authorization and Restriction of<br />
Chemicals (REACH)<br />
The European Union’s REACH EC 1907/2006 regulation was<br />
established on December 18, 2006 and became law on June<br />
1, 2007. The regulation’s intent “should ensure a high level of<br />
protection of human health and the environment as well as the<br />
free movement of substances, on their own, in preparations and<br />
in articles, while enhancing competitiveness and innovation. This<br />
Regulation should also promote the development of alternative<br />
methods for the assessment of hazards of substances.”<br />
This law is the most comprehensive legislation ever<br />
completed regulating all chemical substances. A full 401<br />
pages of this 849 page document are 10 appendices that<br />
mostly call out carcinogens, mutagens and substances toxic<br />
to reproduction. The rest of the document outlines and defines<br />
the requirements of compliance.<br />
REACH will affect chemical industries worldwide by<br />
requiring testing and registration with the European Chemicals<br />
Agency on any imported chemical substance over 1,000 kg in<br />
weight. Chemical substances manufactured in the European<br />
Union are subject to the same regulation.<br />
Recycling<br />
The U.S. Department of Energy defines recycling as “the<br />
process of converting materials that are no longer useful as designed<br />
or intended into a new product.”<br />
Renewable Energy<br />
The U.S. Department of Energy defines renewable energy as<br />
“energy derived from resources that are regenerative or for all<br />
practical purposes cannot be depleted.<br />
“Types of renewable energy resources include moving water<br />
(hydro, tidal and wave power), thermal gradients in ocean water,<br />
biomass, geothermal energy, solar energy and wind energy.<br />
“Municipal solid waste (MSW) is also considered to be a<br />
renewable energy resource.”<br />
Reservoir<br />
The Intergovernmental Panel on Climate Change defines<br />
reservoir as: “A component of the climate system, other than<br />
the atmosphere, which has the capacity to store, accumulate<br />
or release a substance of concern, for example, carbon, a<br />
greenhouse gas or a precursor. Oceans, soils and forests are<br />
examples of reservoirs of carbon. Pool is an equivalent term<br />
(note that the definition of pool often includes the atmosphere).<br />
The absolute quantity of the substance of concern held within<br />
a reservoir at a specified time is called stock.” For example,<br />
uptake or (carbon) sequestration, adds greenhouse gases to<br />
rainforests (reservoir) and their soils (reservoir).<br />
RoHS<br />
An acronym for Restriction of Hazardous Substances Directive<br />
(the lead-free directive).<br />
Although not a law, the European Union passed this directive<br />
in 2006, limiting the use of six materials in any part of<br />
electronic and electrical products. The six materials limited<br />
by RoHS are: lead, mercury, cadmium, hexavalent chromium<br />
(chromium VI or Cr6+), polybrominated biphenyls (PBB) and<br />
polybrominated diphenyl ether (PBDE). PBB and PBDE are<br />
flame retardants used in some plastics.<br />
Similar standards have been adopted in China, Japan, Korea<br />
and California. The U.S. federal government currently has no<br />
plans to adopt a similar directive.<br />
Sink<br />
“Any process, activity or mechanism that removes a<br />
greenhouse gas, an aerosol or a precursor of a greenhouse gas or<br />
aerosol from the atmosphere” is considered a sink, according to<br />
sources at the Intergovernmental Panel on Climate Change. A sink<br />
removes a greenhouse gas, for example, from the atmosphere,<br />
then by uptake or (carbon) sequestration, the greenhouse gas is<br />
added to a reservoir (see Reservoir and Uptake/Sequestration).<br />
Stakeholder(s)<br />
The online Business Directory describes this as,<br />
“Person, group or organization that has direct or indirect<br />
stake in an organization because it can affect or be affected<br />
by the organization’s actions, objectives and policies. Key<br />
stakeholders in a business organization include creditors,<br />
customers, directors, employees, government (and its<br />
agencies), owners (shareholders), suppliers, unions and the<br />
community from which the business draws its resources.<br />
Although stake-holding is usually self-legitimizing (those<br />
who judge themselves to be stakeholders are de facto so),<br />
all stakeholders are not equal and different stakeholders are<br />
entitled to different considerations. For example, a firm’s<br />
customers are entitled to fair trading practices but they<br />
are not entitled to the same consideration as the<br />
firm’s employees.”<br />
<strong>Spring</strong> 2011 | <strong>InsideOutdoor</strong> | 45
Sustainable development<br />
Economic, social (political) and environmental development<br />
that is harmonized for the good of all interests.<br />
Many, including the United Nations, use the definition from<br />
the Brundtland Report Our Common Future that “sustainable<br />
development is development that meets the needs of the present<br />
without compromising the ability of future generations to<br />
meet their own needs.”<br />
Others contend that this is not an operational definition and<br />
that the concept is best defined as “a socio-ecological process<br />
characterized by ideal-seeking behavior on the part of its human<br />
component,” which is adapted from the work of Russell Ackoff<br />
and Fred Emery, among others.<br />
Nevertheless, there are some that consider the phrase a<br />
greenwash oxymoron. To many, the concept of growth and depleting<br />
non-renewable resources are mutually exclusive.<br />
Triple Bottom Line (TBL or 3BL)<br />
The addition of social and environmental metrics within<br />
full cost financial reporting. In 1994 John Elkington coins<br />
the phrase and in his 1997 book, Cannibals with Forks, he<br />
elucidates this concept. “The idea behind the TBL idea was<br />
that business and investors should measure their performance<br />
against a new set of metrics – capturing economic, social<br />
and environmental value added – or destroyed – during the<br />
processes of wealth creation.” He also authored the term 3P<br />
for people, planet profit.<br />
Uptake (Sequestration)<br />
“The addition of a substance of concern to a reservoir.<br />
The uptake of carbon containing substances, in particular<br />
carbon dioxide, is often called carbon sequestration,” says the<br />
Intergovernmental Panel on Climate Change. Most trees and<br />
certain crops such as potatoes, rice and soybeans, uptake more<br />
CO2 than other plants and crops.<br />
Volatile Organic Compound (VOC)<br />
VOCs as they relate to environmental concerns refer to<br />
compounds with high vapor pressures (a vapor at room temperature<br />
and pressure) that can be potentially harmful and therefore<br />
regulated. VOCs occur naturally but can also be synthesized. In<br />
recent years, the roll of VOCs in new home or building construction<br />
and their contribution to sick building syndrome has heighten<br />
awareness of indoor air quality. The Environmental Protection<br />
Agency maintains a list of regulated VOCs.<br />
Zero Waste<br />
An approach to the cradle-to-cradle concept that includes reduction<br />
of product or process waste and consumption, plus advancing<br />
the notion of reuse, repair or return to the environment.<br />
Ad index<br />
ASF Group (www.asfgroup.com) 39<br />
Balconi (www.balconigear.com) 2<br />
Body Glide (www.bodyglide.com) 30<br />
Cam Commerce (www.camcommerce.com) 19<br />
Cocoon by Design Salt (www.designsalt.com) 32<br />
Coghlan’s (www.coghlans.com) 27<br />
CORDURA (www.cordura.com) 3<br />
Cre8 Group (www.Cre8groupinc.com) 26<br />
Durapeg (www.durapeg.com) 40<br />
ecco (www.ecco.com) 11<br />
Fisher Space Pen (www.spacepen.com) 17<br />
Glacik (www.stonemansports.com) 35<br />
High Gear (www.highgear.com) 5<br />
Injinji (www.injinji.com) 13<br />
Kiva Designs (www.kivadesigns.com) 21, 23<br />
Mad Water (www.madwater.com) 32<br />
McNett (www.mcnett.com) 41<br />
Optimer (www.drirelease.com) 9<br />
OutDoor Europe (www.european-outdoor.com) 31<br />
Outdoor Retailer (www.outdoorretailer.com) 22<br />
Outlast (www.outlast.com) 47<br />
Overboard (www.ROCgearWholesale.com) 37<br />
SpareHand Systems/Stoneman Avenue (www.sparehandsystems.com) 35<br />
SuperFabric (superfabric.com) 12<br />
Teflon (www.teflon.com/fabricprotector) Back cover<br />
Treksta (www.trekstausa.com) 25<br />
Wilcor (www.wilcor.net) 7<br />
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46 | <strong>InsideOutdoor</strong> | <strong>Spring</strong> 2011
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