The outdoor market was one of the winners of the crisis during the pandemic because people were drawn outside. However, the current consumption slump is hitting the industry as hard as anyone else, and it requires bold moves. Especially from sales. We spoke to the Oberalp Group’s new Senior Sales Manager for the DACH region, Irina Andorfer, about maintaining margins, price increases and further developments in the outdoor market. She is responsible for sales for the Oberalp Group for the brands Salewa, Dynafit, Wild Country and Evolv in the important DACH region and is one of the still manageable number of women in management positions in the outdoor market. We met her at the Oberalp Convention in Zurich.
You have just taken over the sales management for most Oberalp brands in the important DACH market. Before that you were responsible for sales at Dynafit for a long time. So you must have done something right. What was that?
We are a people business and we work in an emotional industry. The products are just one side. What probably distinguishes me is that I seek contact with the dealers, I live that, that drives me every day. And I’m a team player: because when the team works well, the business runs on its own. I put a lot of energy into team development and creating the right framework for the team to develop. I don’t have to and don’t want to decide everything on my own – if you know your market, you often know best what to do.
The outdoor industry is accused of being a male domain. Have you also noticed that in your career?
Especially in the outdoor area, it is still widespread that technical products are attributed to men, although I know enough counter-examples where women are particularly tech-savvy. I think things are slowly changing. But women in management positions are of course an issue. Although for me personally it never played a big role. I’ve been an athlete since I was a kid, and there just never was that difference. If you sit together in the mountain hut, then everyone is just the same. But when I look at the sports industry – and I’ve been in the sports industry for 16 years – then of course I can see that it’s mostly men who hold important positions. But I’ve never booked it as an issue for myself professionally either. I just did my job and always enjoyed it. I myself am relatively uncomplicated, and this behavior has always been shown to me by men.
So does the outdoor industry need a quota?
I’m generally against a quota. In my opinion, skills should count. But it is important to me, and I also make sure that my team is mixed, that we have a mixed team and that different points of view are represented in it.
What is your focus in the new position?
It is important to me to create efficient processes and to set up the right structures for them. The outdoor and sports industry has become very professional in recent years. Markets have grown and there are more brands, competition has increased. In order to have the necessary relevance for customers and retailers, you have to be professional today. That is why we have just created six new positions in order to be able to offer retailers more service.
What does it mean to offer retailers more service?
Like I said, we’re a people business. We were one of the first companies to make personal appointments with retailers again after the lockdowns during the pandemic – of course in compliance with all safety regulations. After all, it is about the existence of the dealers, and it is our job to support them in their work. It always depends on how you connect product and retailer. Our job is only done when the product sells well in retail. That’s where I want to start again. There have been a few things that have been neglected in the last few months because communication with retailers has simply revolved around when we can deliver the goods. That was the case with many brands.
Oberalp was one of the first companies to use the pandemic as an opportunity to revise their collection structure. Fewer new products, more throughput, more focus on value retention. How has the strategy worked so far?
The general strategy using Dynafit as an example is: There are two main collections with the winter and summer collections and an intermediate collection – our autumn collection. The colors are coordinated in such a way that many parts continue to fit and run with the new collection. We’ve already done that anyway. More throughput is an important issue also in relation to sustainability. It simply makes a difference how long a product has been on the market. The product life cycle is extended. This is even more relevant for hardware than for clothing. If there isn’t a new ski every season, then the current one is longer the latest development. Of course, there are still highlights, but the basic collection runs alongside them. The trade really appreciates that. It’s about margin maintenance!
What else have you learned as a company during the pandemic?
Especially for Austria, it was extremely interesting to see during the pandemic that Austrians are really enthusiastic about ski tours. There were no tourists, but the number of ski touring sets sold has increased. That means the Austrians love ski tours!
Direct-to-consumer channels have become enormously important for many brands during the pandemic, although the outdoor market is traditionally more geared towards stationary specialist retailers. How high is the DTC share of the total turnover of the Oberalp Group?
It’s less than five percent. We’re not planning any big growth here either. For us, our online shops are primarily brand showcases, just like our monobrand stores. Brand worlds must also be built online, which is extremely important, especially with regard to Gen Z. They identify themselves much more strongly with online channels. Of course, at the end of the day, we also want to sell something, but these channels are not revenue-driven.
The same is also true on the stationary side: Our Dynafit Competence Centers are stationary dealers who have a high level of credibility and expertise. These retailers don’t have to be big, but they are extremely important to us because they drive the brand forward. Here, too, we are not primarily concerned with sales.
In general, wholesale has played a major role and will continue to do so, it is significantly involved in brand building. The joint task of brands and retailers is to place the right products in the right channel. In concrete terms, this means that the best concept for success in cooperation is the “shared values” between brand and retail. If the end customer understands what a brand stands for – for example Salewa “Pure Mountain” and the Salewa products are sold by a retailer who also stands for outdoor – then it will be successful.
Are you planning to open more stores?
Our focus is on the further development of our mountain shop concept. This is a franchise concept, which we implement with existing partners and the majority of the goods offered in the shop consist of Oberalp brands. Of course, the topic of outdoor is important, we can cover this with our brands as a whole, but we also want to offer the end customer the opportunity to have a selection beyond the Oberalp brands. On the one hand, we have our own stores, and then there is the concept of the Mountain Stores as a franchise concept, where the majority of the range consists of Oberalp brands. But it may be that a small part consists of third-party brands. We want to develop this concept further, but there is no goal to open a certain number of new stores here, that happens more by chance when opportunities arise with our existing partners.
What role do marketplaces play for you? This topic is still viewed critically.
We are just starting with this topic. The end customers determine the place where they buy, not us.
After the pandemic, we already have the second crisis in retail. How is the outdoor trade doing right now?
In our area, the pandemic was even positive because the customers wanted to get out. Anyone who was able to offer outdoor activities could make up for a lot. The great demand of the last two years is currently missing.
How are you reacting to the situation now?
Luckily we were very careful and limited the production capacities before the falling demand so as not to overproduce. Sometimes we didn’t accept orders that were too high.
But of course we are also affected by the various effects of the crises. The delivery is running, but partly later than planned. The bottleneck in production will persist, especially with bindings and skis, and that will still be an issue next year. Clothing works better than hardware.
What is your price development like?
Prices will go up. This development is coming. Our prices in the pre-order winter 2023/24 have increased by an average of ten percent. It’s a cross-industry phenomenon, and we haven’t even passed on all the increases yet.
Some fear that winter sports in particular will soon only be affordable for the rich. What can you do about it?
There will still be entry-level products in the future. The question will be more like: how long do I wear this and do I really need my own equipment for all sports? This is where we can start and we also do this with long-lasting or multifunctional products.
But that also means less sales for you.
I am sure that the outdoor market as a whole is growing, so we can compensate well if end users want to use our products longer. This is exactly why it is particularly important not to overproduce, so that the market is not flooded with goods.
Some brands and retailers have started selling second-hand products. Is that already an option for you or your dealers?
The interest is already very high in some cases, even if not by very many! Bergzeit has just started its own second-hand shop. Oberalp also does this internally, so you can also resell used equipment. The topic is of great relevance and will become more important. We are increasingly relying on repair services, as are many of our dealers.
What are your next goals now?
Build the new team, optimize the processes, bring clarity to the structure. Focus on trade and continue to go into close cooperation.
The interview took place as part of the Oberalp Convention in Zurich. At the two-day event, the company presented the new collections for AW/2023 to retailers and press representatives as well as a lecture on Gen Z.