Catching Up With: Rob Willis

josh hunter

• November 12 2008
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Rob Willis has been involved in the actionsports industry for more than three decades. From owning a three-store chain of specilaty shops in Florida, to acting as Billabong’s National Sales Manager, Rusty’s VP of Sales & Marketing, and Executive Vice President of Mada, Willis has seen his fair share of economic cycles in his thirty year tenure from both sides of the table. Aside from having a unique perspective on the market from his years of retail experience, Willis is full of one liners and colloquial wisdom from the manufacturing side of the fence as well. Transworld Business caught up with Willis to get his take on current market conditions. Here’s what he had to say.

How and when did you get your start in the action sports business?

I started in the Surf/ Skate and even Snow business in 1976 as the owner/ operator of Sealestial Surf Shops in Florida .

What can you tell me about the years you spent as a retailer and the ups and downs your shop faced?

I was in retail from 1976 to 1988. Then I sold the shop to Yancy Spencer and J.B. Schluter of Innerlight and began repping Billabong full time—I had been both running the shop and repping for two years. The challenges my own shops faced then were pretty much the same as today— theft, no crystal ball on weather, waves, or economic factors .

During the tough times (like we are in today) how does the relationship between vendor and retailer change?

The relationship should not have to change at all if it was built on a fair and reciprocal foundation of belief, trust and stoke. Short-term thinking and actions get you short-term results. Plan together more and plan to the end.

What can manufacturers do to try and keep their sales up?

Due diligence, rely on their sales reps and marketing departments relationships with the retailers. Be patient, be kind, and don’t panic. Don’t get greedy; give to get. Practice the same Golden rule your Mom taught you, do unto others … you know the rest.  Also, Offer value added margin builders. There is a finite amount of sales in these austere times; everyone needs to make money on that same sale.

What can retailers do when they are seeing sales drop in their stores, but still getting orders in from manufacturers?

Pretty much the same as the manufacturers; rely on their reps, be fair but don’t leave anything on the table. Get to know the sales and marketing management if you don’t already. Take the initiative, and call them with ideas they are holding on to. You might hit a winner if you work together.

Also, be creative with promo’s not just promotional with pricing. Go deeper with category killers and eliminate non-performers. Re-balance your mix, but run as lean as possible overall to have a decent turn. The lean dog runs the long race.

From your experience working with manufacturers recently, what are retailers facing right now and how are the manufacturers responding?

Good question. Retailers are facing a couple of challenges and opportunities we have not had to face in the past. The proliferation of company-owned stores is one. This is not necessarily a bad thing. When Billabong opened it’s first US stores, I was on the front lines. Having cut my teeth in surf shops, I was skeptical too. However, our brand awareness went through the roof in places like Florida and Hawaii, and most of the accounts in surrounding areas saw their own Billabong business increase as well. Billabong came to understand the nuances and challenges of retail better and it was a win/ win.

That being said, I can still understand when a shop owner that is 100% backing a brand already get’s a bit chapped when a company store opens up across the street. So, as long as the companies keep their original distribution and business plan in tact it can and does work.

Another thing is the sheer volume of product in the market—especially in hardgoods since Board sales slowed. All the products associated with the sale of a surf, skate, or snowboard at retail also suffer and there is a hardgoods glut that will not soon be removed, because unlike apparel, that stuff has but one niche’ consumer. Boardshorts, T-shirts, watches, sunglasses, and footwear are all given  “necessity” status by today’s consumer.

What sets the retailers that can weather this storm apart from the ones that can’t?

Reasonable fixed operating overhead, a war chest, and attitude. If you are in it for love AND money, you will adapt and survive. If you are in it for love OF money, goodbye and good riddance.

What do you think the next 12 months has in store for our industry?

In Florida in 1992, I was repping Billabong and lost almost 50% of the account base, but we still showed growth that year because the retailers who survived got smarter, faster, and better. They are now some of the best of the best. The next 12 months will separate the barley from the husk.

Is this economic climate advantageous for smaller, young brands trying to plant its heels in the market? How?

The longer you are in business the more open minded you have to become. A good example locally [Dana Point, CA] is Hobie Surf Shops. They have done a great job of adapting to the changes, not letting their mix grow stale, and have given an honest shot to new companies.

The heels part comes down to hard work, perseverance, creative grass roots marketing, and promise keeping. It is definitely advantageous to getting some playing time, if you can dig your heels in is another matter.

If there is a silver lining to the state of the economy, what do you think it is for the action sports industry?

There is always a silver lining! For every challenge there is an opportunity, and every opportunity presents a challenge. The Action Sports Industry will survive and be better for it.