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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 />

Recycled Paper


Blocks the sun, rain and<br />

snow while keeping your<br />

ears warm and allowing<br />

breathability<br />

One size fits all comfortably<br />

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


YOUR PASSION.<br />

OUR TECHNOLOGY.<br />

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+ Altimeter/Barometer<br />

+ 12 hour weather forecast icon<br />

+ Digital thermometer<br />

+ Digital Compass with adjustable declination<br />

+ 100 hour chronograph<br />

+ 10 run data storage<br />

+ Time/Day/Date<br />

+ Dual time zone<br />

+ 2 daily alarms<br />

+ 1 rest alarm<br />

+ 1 hydration alarm<br />

+ 2 altitude alarms<br />

SUMMIT SERIES<br />

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WWW.HIGHGEAR.COM


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 />

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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 />

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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 />

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Fresh from<br />

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


222 days of drizzle<br />

6 hail storms<br />

2 lighting near-misses<br />

24 magical rainbows<br />

100 unhindered strolls<br />

Millions of trusting smiles<br />

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the performance and longevity of<br />

ShedRain’s umbrellas.<br />

Invest in an umbrella for life.<br />

Visit www.shedrain.com<br />

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© 2011 DuPont. Teflon ® is a registered trademark of E.I. duPont de Nemours and Company or its affiliates. All rights reserved.<br />

Shedrain is a registered trademark.

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