SIZE MATTERS – HOW RIP CURL STAYED AHEAD OF THE CURVE DURING COVID

Rip Curl have been in the wetsuit game a long time and have successfully navigated every boom and bust the industry has faced. However, the global COVID19 pandemic has resulted in an unprecedented demand on Rip Curl’s wetsuit division. It’s been well documented that surfing was one of the few sports permitted throughout lockdown restrictions and the resulting explosion in the wetsuit category has led surf retail’s recovery.  Rip Curl is the number one wetsuit brand on our ActionWatch panel and has increased its average $ sales 53.7% so far this year. The average retailer has spent upwards of $37k in wetsuit sales with Rip Curl in 2020. 

Four of the top ten wetsuit styles all belong to Rip Curl.

The resulting surge in demand for wetsuits has also outstripped supply for many smaller and mid-tier wetsuit brands, who rely on shared factories and finite materials.  Quiksilver, Roxy and Hurley, who rely on shared factory resources, have all experienced single-digit declines and haven’t been able to capitalise on the unprecedented surge. While we don’t have visibility on direct-to-consumer brands, anecdotally at least, these brands have not been able to turn around supply to meet the demand.

Rip Curl were immediately able to step up to meet the demand because they own and operate a state-of-the-art wetsuit manufacturing facility in Chang Mai, Thailand since 1989. The factory employs around 650 workers and is one of the largest employers in the region. 

In response to COVID19 and as a result of a recent company-wide IT overhaul, Rip Curl has up-to-the-minute information on managing its store shipments and warehouse inventories by integrating data from its wholesale and retail systems. It has consolidated its data collections to create a single source with instant insights for managers and staff. By creating a data warehouse and deploying its new IT platform across its organisation, Rip Curl now has enterprise-wide clarity and is better able to service its core accounts and the growing demand from customers. Reacting in real time to these demands also means Rip Curl can adjust supply chain and move stock around the world to meet demand.

Despite a scare early July when an employee tested positive for COVID19 - almost forcing the closure of the company’s Torquay HQ - Rip Curl warehouses, offices, customer service centres and stores have been able to readily adapt to government regulations around working hours, staffing, sanitation and social distancing measures. 

Despite Rip Curl’s ability to adapt, significant challenges remain, and we caught up with Rip Curl Chief Marketing Officer Neil Ridgway, Mick Ray, Rip Curl’s Global Wholesale Manager and Brooke Farris, Global Head of Women’s Accessories to learn about how the company stays ahead of the curve in these unprecedented times.

….

“There’s challenges every day in all parts of the world, but there’s also opportunity. So, working with what you have, rather than what you wish you had, is key,” said Chief Brand and Marketing Officer Neil Ridgway.

“There’s challenges every day in all parts of the world, but there’s also opportunity. So, working with what you have, rather than what you wish you had, is key,” Neil Ridgway

Mick Ray, Rip Curl’s Global Wholesale Manager has been at the forefront of leading the global wholesale business through the COVID-19 era, ensuring the company services retailers efficiently to meet demand. 

“The strength of Rip Curl being the only brand that owns their own wetsuit factory was really apparent over the last few months. We were able to supply the unprecedented demand for wetsuits with quick production turnaround from our factory. We would have run out of stock a lot earlier in the season if we were just relying on our warehouse fill stock,” said Mick.

“The strength of Rip Curl being the only brand that owns their own wetsuit factory was really apparent over the last few months.” - Mick Ray

“A lot of retailers still couldn’t capture the potential sales created by the crazy demand during the COVID lockdowns, especially if they normally rely on the brands holding fill stock they can draw down on in-season. So, we are seeing retailers change their behaviour by indenting really strongly for A21 to make sure they have guaranteed stock for next winter.” 

Rip Curl remain indifferent to cheap wetsuit alternatives and whether some retailers might turn to inferior products to meet demand. The company maintains it  will continue to support their retail customers and communicate closely with them on their orders through this time. 

“We have long relationships with deep trust and understanding, so we’ll make sure they know what’s going on. Quality retailers don’t choose cheap alternatives over a full-priced full-service brand. On the direct to consumer front – you get what you pay for and cheap is cheap is cheap.

“On the direct to consumer front – you get what you pay for and cheap is cheap is cheap.”

From past to current champions, Rip Curl has witnessed the rise of women’s surfing, from Gail Couper to Tyler Wright, supporting each successive generation of female surfers as they come through. 

It has taken 50 years of change in both surfing and mainstream culture for women to be more accepted in the line-up. Generations of parents have encouraged their daughters to surf, from boardriders clubs and competition to just going for a wave on the weekend. Surfing is much more inclusive in 2020 than it was in 1969.

Rip Curl’s total dominance of the women’s performance wetsuit category in 2020 is evident on our ActionWatch panel with 40% Brand $ share of the Female wetsuit market, more than double its nearest rival, O’Neill. Although new players to this category like SISSTR are gaining market share at an alarming rate.

Brooke Farris, Global Head of Women’s Accessories, has been at the forefront of growing the Women’s side of the business for over ten years. From driving the progression of the Women’s Pro team as Team Manager in 2010 to now, Brooke understands first-hand how the growth in female surfing has strengthened the Women’s divisions and how Rip Curl can continue to deliver quality surf products to female surfers. 

“Surfing is the foundation for everything we make, so as women’s surfing has grown, so have we. We challenge ourselves daily to ensure that we are making the best swimwear and wetsuits for the waves and the best surfwear for the beach. Mirage Swim, Bombshell Series, Anti-Series, Heat Seeker Wetsuit Technology… the increased participation of women in the water has driven our teams to ensure we deliver quality surf products to our female customer.”

This strange and dark winter has seen some silver linings: women, kids, indeed whole families are in the water in numbers we've never seen before. As the entire economy debates whether current patterns will become the "new normal", wetsuit makers and retailers are seeing the choice in stark relief: prepare for a return to a 2019 market, or throw away the template and accept that nothing will ever be the same?

This story appeared in our current digital edition visit digital.asbmag.com