........and other observations from DEMA 2006.
Hi All. I am back from DEMA and I must say that this was a very interesting show. Interesting because it was MUCH smaller than all previous shows I have attended. Interesting because of the LACK of new and innovative merchandise. Interesting because of the new position outlined by PADI with regard to eBusiness and the future. Interesting because of the entry of Atomic into the internet business. Interesting because of the 800 pound gorilla in the room.
PADI eBusiness. The PADI presentation on the future of their eBusiness and eLearning was extremely good. Like every presentation I have ever seen from PADI, it was very well designed and well presented. eLearning is clearly the direction PADI is taking. They are going to become the strongest advocates of dive centers shifting focus toward internet retail sales and that will be spirited ahead with their still-developing program for eLearning. Basically, PADI is going to shift emphasis to delivering the PADI student materials electronically instead of the current PADI Go Dive student kit. Potential divers will also be able to enroll in classes directly on the PADI website, choosing a PADI IRC (PADI Dive Center) as their "mentors" and delivery agents for the pool and open water diving. I personally think this is a great move and I am sure it will be done professionally by PADI. I would look forward to an opportunity to say more about this at a later time. There didn't appear to be much there for the independent instructor. It is clear that PADI is shifting emphasis on training delivery through the PADI Retail Centers. I don't know if this is good or bad, but it is certainly different.
Atomic Internet Sales. I had guessed about a month ago that Atomic would choose one of the "traffic-director" type web companies for their entry into the internet business. I even speculated that it might be Shopatron, Inc. I was correct. Atomic has chosen shopatron.com as the designer-manager for their web sales. This company is very well known as a providor for companies that have locations all over the country, such as Best Buy, Lowes Building Supply, Home Depot, and large organization of the same ilk. What will be left to be seen is their success with a company like Atomic that has sparse dealer coverage, all independently owned. Sales will be at full retail price and the dealer that is selected to supply the product will be selected based on a "bid" system, with the closest bidding dealer getting the sale. As a consumer, you will pay Shopatron and a local dealer will deliver the product. We will see how this works. I can think of about a million problems with this system, but maybe it will work.
800 Pound Gorilla. The 800 pound gorilla in the room was ScubaBoard. NetDoc had tons of traffic at his booth and I think you will see the interest in advertising here on the ScubaBoard exploding. I am very grateful for that. It is about time NetDoc began to make a little money on this very time consuming venture. After meeting and talking with Pete, I don't think a thing will change for us as users. He will simply have more money to funnel into this site to provide better and better services as this thing continues to grow. ScubaBoard is the 800 pound gorilla because it reaches MORE SCUBA DIVERS than all of the other scuba media combined! Scuba companies spend millions in advertising in the magazines and shows, only to reach a small portion of the people ScubaBoard reaches each day. Like all 800 pound gorillas, they will continue to ignore him until it simply becomes impossible. That time is not far down the road.
Other Observations. When you walk around the show, you see lots of salesmen and lots of buyers in deep conversation, both with their game faces on. Salesman trying to sell and buyers trying to get the best deal possible. Both putting on a show of strength to improve their position in the negotiation. I prefer to look each of them in their faces when they aren't in their game face. When you caught a salesman or a store owner in a moment of "down time", I noticed something in common between both parties..........the amazing fear in their eyes. The scuba companies are fearful because they know change is coming and they don't know how to handle it. The scuba store owners are fearful because they know change is coming and they don't know how to handle it. This is going to be the winter of fear in our industry.
The internet has finally come full circle in scuba diving. There are a few remaining that will have no part of it. But trust me, they all know it is here to stay. PADI says that the children of baby boomers equaled the actual baby boomers in the number of new diver certifications. They made it clear that this is the generation that looks FIRST to the internet before they make any purchase. Five years from now, the children of the baby boomers will be the dominant majority of new diver certifications. They will want to do academic work on the internet. They will want to shop on the internet. In diving retail and training, the internet is the next big thing. It is here to stay. Those that think they can ignore it will eventually be scrambling to change and change fast. Talk about eating words. There are going to be some big scuba names choking on the alphabet in the near future.
I participated in the Total Access Internet presentation provided by Oceanic, as did Larry(ScubaToys) and Jim(Scuba.com). There were about 50 owners in attendance. As I was leaving for home, I was thinking about the published Leisure Trends statistics on the "average" dive store in America. In 2007, the three of us (divesports, scubatoys, and scuba.com) will probably have a combined retail sales higher than the combined retail sales of the 50 dealers that attended the presentation. That should be an eye-opener for anyone in this industry. That should make any local scuba store that refuses to change....well, cringe. That makes those statistics that claim that only 2% of dive equipment is sold over the internet....well.....a little "optimistic" (from the viewpoint of the local store owner). I don't know the real number, but it is large.....much larger than anyone is willing to estimate. Unless there is some type of change, there will simply be carnage in this industry. Let's hope lots of people were listening.
Well, maybe I will get into a little more detail on some of these subjects in the coming days. It will surely be an interesting upcoming winter and 2007 dive season. Congratulations to NetDoc for being there. Just being there made a big statement. Good things are around the corner for ScubaBoard.
Final Note: After talking with them for a year, I finally got a personal meeting with several of my new suppliers. Michael Brennen (Apollo Sports - MDB here), Mike Pantoini (XS Scuba - xsscuba here) were among them. Michael is simply a very classy guy. If you want to know how to operate and prosper in the scuba industry, give him a phone call. He has forgotten more about this business than most of us know. And what a classy guy! A Marine. A businessman. A good guy. The pleasure was all mine. Mike Pantoni ( and the whole crew from XS - Dan and Mark) are good people. XS Scuba is a good company. The guys above them better watch out.....they don't sleep! They are coming strong. Another group of classy people. It is fun putting these faces with their familiar voices. The highlight of my week.
Thanks to all of you for your business with my company and for putting discussion to some of the most important topics in our industry.
Phil Ellis
Hi All. I am back from DEMA and I must say that this was a very interesting show. Interesting because it was MUCH smaller than all previous shows I have attended. Interesting because of the LACK of new and innovative merchandise. Interesting because of the new position outlined by PADI with regard to eBusiness and the future. Interesting because of the entry of Atomic into the internet business. Interesting because of the 800 pound gorilla in the room.
PADI eBusiness. The PADI presentation on the future of their eBusiness and eLearning was extremely good. Like every presentation I have ever seen from PADI, it was very well designed and well presented. eLearning is clearly the direction PADI is taking. They are going to become the strongest advocates of dive centers shifting focus toward internet retail sales and that will be spirited ahead with their still-developing program for eLearning. Basically, PADI is going to shift emphasis to delivering the PADI student materials electronically instead of the current PADI Go Dive student kit. Potential divers will also be able to enroll in classes directly on the PADI website, choosing a PADI IRC (PADI Dive Center) as their "mentors" and delivery agents for the pool and open water diving. I personally think this is a great move and I am sure it will be done professionally by PADI. I would look forward to an opportunity to say more about this at a later time. There didn't appear to be much there for the independent instructor. It is clear that PADI is shifting emphasis on training delivery through the PADI Retail Centers. I don't know if this is good or bad, but it is certainly different.
Atomic Internet Sales. I had guessed about a month ago that Atomic would choose one of the "traffic-director" type web companies for their entry into the internet business. I even speculated that it might be Shopatron, Inc. I was correct. Atomic has chosen shopatron.com as the designer-manager for their web sales. This company is very well known as a providor for companies that have locations all over the country, such as Best Buy, Lowes Building Supply, Home Depot, and large organization of the same ilk. What will be left to be seen is their success with a company like Atomic that has sparse dealer coverage, all independently owned. Sales will be at full retail price and the dealer that is selected to supply the product will be selected based on a "bid" system, with the closest bidding dealer getting the sale. As a consumer, you will pay Shopatron and a local dealer will deliver the product. We will see how this works. I can think of about a million problems with this system, but maybe it will work.
800 Pound Gorilla. The 800 pound gorilla in the room was ScubaBoard. NetDoc had tons of traffic at his booth and I think you will see the interest in advertising here on the ScubaBoard exploding. I am very grateful for that. It is about time NetDoc began to make a little money on this very time consuming venture. After meeting and talking with Pete, I don't think a thing will change for us as users. He will simply have more money to funnel into this site to provide better and better services as this thing continues to grow. ScubaBoard is the 800 pound gorilla because it reaches MORE SCUBA DIVERS than all of the other scuba media combined! Scuba companies spend millions in advertising in the magazines and shows, only to reach a small portion of the people ScubaBoard reaches each day. Like all 800 pound gorillas, they will continue to ignore him until it simply becomes impossible. That time is not far down the road.
Other Observations. When you walk around the show, you see lots of salesmen and lots of buyers in deep conversation, both with their game faces on. Salesman trying to sell and buyers trying to get the best deal possible. Both putting on a show of strength to improve their position in the negotiation. I prefer to look each of them in their faces when they aren't in their game face. When you caught a salesman or a store owner in a moment of "down time", I noticed something in common between both parties..........the amazing fear in their eyes. The scuba companies are fearful because they know change is coming and they don't know how to handle it. The scuba store owners are fearful because they know change is coming and they don't know how to handle it. This is going to be the winter of fear in our industry.
The internet has finally come full circle in scuba diving. There are a few remaining that will have no part of it. But trust me, they all know it is here to stay. PADI says that the children of baby boomers equaled the actual baby boomers in the number of new diver certifications. They made it clear that this is the generation that looks FIRST to the internet before they make any purchase. Five years from now, the children of the baby boomers will be the dominant majority of new diver certifications. They will want to do academic work on the internet. They will want to shop on the internet. In diving retail and training, the internet is the next big thing. It is here to stay. Those that think they can ignore it will eventually be scrambling to change and change fast. Talk about eating words. There are going to be some big scuba names choking on the alphabet in the near future.
I participated in the Total Access Internet presentation provided by Oceanic, as did Larry(ScubaToys) and Jim(Scuba.com). There were about 50 owners in attendance. As I was leaving for home, I was thinking about the published Leisure Trends statistics on the "average" dive store in America. In 2007, the three of us (divesports, scubatoys, and scuba.com) will probably have a combined retail sales higher than the combined retail sales of the 50 dealers that attended the presentation. That should be an eye-opener for anyone in this industry. That should make any local scuba store that refuses to change....well, cringe. That makes those statistics that claim that only 2% of dive equipment is sold over the internet....well.....a little "optimistic" (from the viewpoint of the local store owner). I don't know the real number, but it is large.....much larger than anyone is willing to estimate. Unless there is some type of change, there will simply be carnage in this industry. Let's hope lots of people were listening.
Well, maybe I will get into a little more detail on some of these subjects in the coming days. It will surely be an interesting upcoming winter and 2007 dive season. Congratulations to NetDoc for being there. Just being there made a big statement. Good things are around the corner for ScubaBoard.
Final Note: After talking with them for a year, I finally got a personal meeting with several of my new suppliers. Michael Brennen (Apollo Sports - MDB here), Mike Pantoini (XS Scuba - xsscuba here) were among them. Michael is simply a very classy guy. If you want to know how to operate and prosper in the scuba industry, give him a phone call. He has forgotten more about this business than most of us know. And what a classy guy! A Marine. A businessman. A good guy. The pleasure was all mine. Mike Pantoni ( and the whole crew from XS - Dan and Mark) are good people. XS Scuba is a good company. The guys above them better watch out.....they don't sleep! They are coming strong. Another group of classy people. It is fun putting these faces with their familiar voices. The highlight of my week.
Thanks to all of you for your business with my company and for putting discussion to some of the most important topics in our industry.
Phil Ellis
