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Action sports is a big, fat, enjoyable business. And Southern California is the sponsor of this party.

 That realization, for those now living Under a stone, will definitely pop into your head should you choose to enter the core of Orange County, then roll down its yellow brick road, the top skateboards, in search of this action sports version of Oz. There are as many board stores on this stretch of road as there are street signs. (Well, seemingly, at least.) And only a brief jaunt from O.C.'s venerable PCH is the manufacturing Mecca of board sports as well, with a number of the world's top action sports manufacturers based in Orange County industrial hubs such as Irvine and Costa Mesa. A slew of others are only a kickilip and an ollie away in SoCal hot spots inside LA County and San Diego County.

 "It goes back quite far, to the 1960s Even," says Laurence LaHaye, VP of sports for American Sporting Goods, which pumps out its EVOS and NSS skate sneakers from Irvine, CA. "The Beach Boys should get attributed some of the achievement. Back then, Orange County didn't exist--it was an orange grove, and LA was just a large metropolis. The significant spectacle was in San Diego, especially for skate. The industry actually got its start from the '60s. It took off with the boom in the '80s and a lot of apparel-based producers moved into Irvine and Orange County because it's more affordable to conduct business there."

 So fast-forward to 2003. There you are, California Dreaming, rolling down that yellow-bricked PCH, and what do you find in Oz? A group of merry women and men alive the life and packing a piece of Southern California to be offered to eager customers across the globe? Well, yeah, pretty much. The SoCal scene is home to billions of dollars in action sports industry. Skate, surf and snowboarding have impacted youth sports culture in this manner that Orange County has morphed into a kind of fairytale dreamscape for action sports.

 "I always say I could market plastic Baggies filled with sand from the shores here," says LaHaye. "People just want to be part of it, and receive a sheet of Southern California."

 But take a peek behind the orange curtain at The people making the industry run and you'll see here is a whole lot more than meets the eye. Orange County itself is a perfect personification of action sports' contradictory truths. The area not only has ideal sea breaks, gorgeous skateparks and easy access to unreal ski websites, but it is also home to a number of the country's wealthiest, most conservative citizens. Really, the action sports industry can be distinguished in much the exact same schizophrenic way: acute partyers doing serious business. And according to people on the inside of the market, that contradictory reality is the thing that divides action sports from the pack. A trip to the core of activity sports provides a glimpse of this gorgeous dichotomy.

 Any conversation about why SoCal is the Epicenter of activity sports has to start with its environment. The landscape is so well-suited for participation in surfing, skateboarding, snowboarding and BMX riding which, naturally, it has become the perfect place to conduct business within them, too. It's got warm weather, smooth concrete, dirt trails, consistent waves, and snow in the hills. But there's much more to it than that. Way more, bro.

 "Those are the reasons the Majority of the top Riders from all around the world come out here to live, and when you have the best riders as well as the best terrain, the manufacturers and media will follow," says Don Brown, VP of marketing at Sole Technology, which produces skate manufacturers Etnies, Emerica and ES, as well as 32 snowboard boots. "You will find more action sports producers in Southern California than any other place on the planet. California is your dream for activity sports. It's everything you've ever wanted, with a little bit more"

 The industry thrives in SoCal not because Of the proximity of fantastic action sports circumstances, but also due in large part to a community filled with people with time, interest and money to spend in search of good times.

 "[SoCal] has the Exceptional combination of Having millions of children in an area which has surf, snow and things to skate," states Tim Garrett, VP of global marketing at Globe, whose U.S. headquarters are located in Torrance, CA. "There is a long history of activity sports icons from SoCal who have affected, started, or run these brands. People and place help create credibility, and credibility is the cornerstone to any successful brand."

 The validity stems Not Just from being Busy in a lifestyle, but living it, as well. Unlike other athletic tasks, action sports are often described by those in the sector as extensions of their lifestyles of its participants, rather than simply avenues for bodily exercise.

 "Non-traditional sports have consistently Evolved from California," says Scott Bowers, VP of sports marketing at Oakley. "Californians get bored doing the exact same thing everyday. We also have a little bit of disdain to be limited by rules and regulations. We like to do things that express individualism, liberty and rebelliousness. We also possess the surroundings and weather to accommodate our lifestyle."

 Combine the culture, the convenience and the Consistency of these conditions and you've got the perfect environment not just to participate in these actions, but to profit them off, as well.

 "The relaxed, however active, lifestyle here Enables us to promote these activities and products," notes Alain Mazer, manager of public relations at Irvine-based Op. "The bottom line is that the economics support it. Orange County is where all the money is. It is the technician coast. The money supports the lifestyle that has been component of the civilization for the past 10 decades.

 While All These variables in the SoCal Environment help make it a virtual incubator of trends and innovative product, in addition, it plays a massive role in the relaxed, unconventional business attitude that emanates from many of the industry's brands. At the same time, competition drives every one of the businesses to strive to be the very best, leading to a, dare we say, conventional approach to business.

 "It is friendly cut-throat," says Globe's Garrett. "It's like when you are surfing in your favorite place--you may be buddies in the water, however the main point is you want the best wave of the day and you are likely to Light for place to find that wave for yourself. Overall, however, I believe everybody supports each other, since we are aware that the action sports industry is much larger than just a few businesses, and when there are far more successful action sports businesses then it develops consumer consciousness and increases our customer base." He adds, "On a different note, it's a tight business and everyone pretty much knows everybody. If you do something lame, it will return to haunt you."

 In the SoCal scene, even when you make a sell-out Move, the people laughing in your face just may be your friends.

 "We enjoy it when somebody makes a mistake, Do not get me wrong," states Catherine Breton, Southern California sales rep for Rip Curl Girl. "But we do not have hard feelings and we hang out together. Ultimately, all the brands have another name and we are selling a different brand."

 Unlike some other pro athletes, activity sports Pros are not compensated by deep-pocketed crew owners. Athletes in ski, surfing, skateboarding, BMX and MX make most of their money through their patrons. And many go into the business side of the sports to supplement their earnings. This helps to keep the companies in the control of core participants, and in addition, it boosts corporate cooperation between manufacturers.

 "Many manufacturers in non-competing categories Share athletes and tend to group up on advertising programs like excursions, events and video releases," says Candy Harris, juniors brand manager for Billabong. "Generally speaking, everyone is eager to understand this sector grow and we understand one new success usually means media attention and prosperity for the sector as a whole."

 Harris points out that Billabong's participation With the Universal movie "Blue Crush" provided "amazing exposure for Billabong, but in addition, it helped encourage women's surfing. As a result, many relevant brands profited from the Egyptian Hollywood hype."

 Obviously, when an industry is in a growth phase, As the activity sport business undeniably has been around the past decade, it is simple for manufacturers to be friends. But just as in any other sector, tighter economic times will breed even the most laid back competitive relationships.

 "Our businesses have been growing solidly For the previous ten years, so everyone has been more focused on making sure we could supply the demand over caring about what the competition is doing," affirms Sole Tech's Brown. "Since most of the action sports businesses have reached a plateau, there'll be a lot more strategies aimed at sustaining and gaining market share from the competition. I think we'll see many more punches going down in ASR."

 While Brown may be flashing his well-honed Sharp wit regarding potential trade show pugilism, he brings up a point. The businessmen in the action sports industry are eager to fight to get what they need. And insiders say it is their love of the sport which drives them to work difficult.

 "The business of action sports is also The pleasure of action sport, '' says Op's Mazer. "The two are inextricably connected. Our company is that which we reside. We are facilitators of that which we enjoy. There isn't a disconnect to our work and also what we are. Somebody who creates a circuit board is not a computer, but someone who creates a surfboard is a surfer. The man making skateboards is a skater."

 As in any other industry, success from the SoCal actions sports manufacturing scene is predicated by how attentive a provider is to the requirements of the consumers and merchants. The companies that do the best at retail would be the individuals who understand the organization, the ones which send in time and give excellent support.

 "The equation for any Fantastic business is The exact same equation for success as activity sports," says Mazer. "And the people managing the work of surf culture tight today are consummate small business people. Their business acumen is on par with executives at any other industry."

 Indeed, in the Last Few years, the Business Has become accustomed to people many business-like occurrences: mergers and acquisitions. One of the major deals: Board sports giant Billabong purchased the edgy skate firm Element; actions sports savant Bob Hurley marketed his namesake company to Nike; and Globe bought Kubic Marketing, the U.S. holding company whose properties include World Industries and Dwindle Distribution.

 "The larger companies are doing great Business and they are doing global company," says Mazer. "France, Brazil, Australia, Costa Rica, Puerto Rico--that the lifestyle is becoming so pervasive on a worldwide scale. Aggregation is one of the strongest companies and it has allowed and enabled companies to fully realize the culture on a global scale."

 While the streamlined business approaches have Produced the brands stronger on a global scale, they also have served to boost competition at retail in their home turf. With an influx of strong product flooding the SoCal marketplace, retailers quickly run out of distance for open-to-buy.

 "The property is tight in California," says Rip Curl's Breton. "Retailers tend to stick to the principal brands so that it's hard for smaller companies to break in. They need Quiksilver, Billabong, Volcom and Hurley. You need to compete with some businesses that offer guaranteed sales. Each of the retailers have been selling the very same brands, the same item. People today think California is simple to break brands in because it is so saturated with retail shops, but there is so much rivalry."

 The Concept of endless retail chance for Brands is just one of several misconceptions about the activity sports industry. Quiksilver is a $700 million company. Oakley is closing in on $500 million, and Billabong $200 million. The listing of additional SoCal brands counting their international dollars in the best skateboard brands for beginners is ever-growing. Knocking at the doorway are Hurley, Volcom, O'Neill, Rip Curl, Op, Globe, Vans, DC, Rusty, Sole Tech and more. Yet outside of this market, there are individuals who dismiss the company as being one full of jokers and smokers.

 "The uninformed believe we are on drugs, unprofessional, and menaces to society," says Oakley's Bowers. "Others believe we are a bunch of kids having a fantastic time, who do not have a clue how to run business. I like to believe we're all of those things, along with being concentrated, organized and cuffing-edge within our industry practices."

 There is the rub. Corporate America can Attempt to Weasel into actions sports with being organized and focused, but they will never truly function of it. Fun-loving lunatics can learn business acumen, no problem. But can Middle American businessmen understand lunacy? Not likely. And that's fine with business insiders who delight in watching mainstream corporations fail in their attempts to grab a sheet of So Cal.

 "By far the most Frequent misconception, in My head, is that outsiders believe that they could borrow from the sports, like slapping an action shot in an advertisement or poster, and they will get immediate company from kids," states Globe's Garrett. "Children, and customers in general, are all smart. They know what's real and what isn't. Should they get tricked by an outsider, then a cooler child will call them on it and they won't make that mistake twice. No business is protected from poachers, but when your company is not built on a sound, authentic, action sports foundation then your long-term achievement is going to be limited, no matter how complex your marketing is."

 And if firms grow to the purpose of going Public, as Quiksilver, Billabong, Vans and Oaldey have done, company isn't taken lightly; you will find those pesky stockholders to think of.

 "People outside the industry believe that With our jobs we get to skate surf or snowboard three or four times per week," says Sole Tech's Brown, tongue planted firmly in cheek. "They're wrong, it is five to seven days a week. And we don't drink beer --we've got it for brunch. [Actually], the attitudes between the action sports industry and the conventional sports brands are probably very similar these days. Sole Technology is lucky as we're not people and have the freedom to do what we want to do. When we close down the business and take all the workers skating or snowboarding, we're not being criticized or watched."

 Action sports insiders enjoy the belief That when compared with other traditional sporting brands, they are not afraid to break the rules in regards to product, distribution and marketing. As Oakley's Bowers says, "Complacency sucks." The thinking goes that unless you climbed up in the action sports arena, and totally comprehend it, you won't have the capability to understand how to invigorate the marketplace, only how to react to it.

 "Legitimacy and validity are Paramount," asserts Bowers. "No poseurs. You have to have origins in action sports, walk the walk and talk the talk. Your company culture needs to live it and breathe it everyday. You can not just claim that, particularly if you're a big, conventional sports brand. Truthfully, I do not think that they could be completely accepted. A couple of the large ones have already tried."

 At ASG, a traditional sports corporation, its Skate brands, EVOS and NSS, are making their way on skate shoe partitions. But this entree to skate probably wouldn't have succeeded were it not made on the shoulders of someone participates in the industry, as LaHaye is. (LaHaye formerly launched his skate shoe manufacturer, Duffs, also boasts a very long resume from the action sports industry.) Still, at ASG, LaHaye confronts the corporate truth everyday.

 "Attempting to tell a big company the Doctrine of the industry is majorly hard," says LaHaye. "But right now, everybody is trying to get into it. There's not much happening in the sports sector, and action sports is your bright star."

 And while a Couple of outsiders have managed to Creep in, the insular SoCal scene has, for the most part, stuck together and kicked most of the intruders to the curb. But times are changing. More heart action sports manufacturers are choosing to jump into the big box sporting goods fray, side by side with these "outsider" traditional sports men. And more of these huge corporations will continue to attempt to worm their way to the core of SoCal.

 "I don't think that the conventional Sports brands have overlooked the action sports; they have just failed at every attempt to get in," explains Sole Tech's Brown. "One of the biggest challenges in business is to buy your way to an industry that's been built on fire for the sports. There are ways for mega-brands to get in, as Bob Hurley has shown us. But as a lot of them move in, the further homogenized the sports will end up. Our industry and demographic thrives on creativity, chaos and rebellion. These are just three items that mega-brands have trouble fitting into their ISO-9000."

 RELATED ARTICLE: THE INSIDERS

Getting a behind the scene take on what makes The action sports industry tick took a great deal of cooperation from our friends in the business. True for their fraternal board sports origins, our willing cover subjects exhibited an insatiable desire to get as many rival brands involved as you can. Our intent in collecting the team together was to depict the diversity and energy of this industry with a range of individuals from all walks of their board sports industry. Top row (left to right): Steve Van Doren, VP, Vans, whose dad Paul founded the business in 1966; Tim Garrett, VP of international marketing, Globe; Brad Gerlach, pro surfer, representing O'Neill. Middle row (left to right): Scott Bowers, VP of sports marketing, Oakley; Candy Harris, juniors brand director, Billabong; Don Brown, VP of advertising, Sole Technology. Bottom row (left to right): Alain Mazer, director of public relations, Op; Catherine Breton, Southern California sales representative, Rip Curl Girl; Jeff Hambrecht, staff supervisor, Rusty.

 The most Prosperous producers in the Action sports company might be operating on a worldwide scale, but you think that getting their equipment in the very best specialty retailers in Southern California is still a top priority. SoCal board stores have the last say in allowing core customers determine what is hot and what's not. Sometimes, they function as virtual showrooms for brands to exhibit their most ambitious designs.

 In accordance with Catherine Breton, Southern California sales rep for Rip Curl Girl, retailers in SoCal are the most receptive to forward-looking trends. "The East Coast is far more conservative," says Breton. "I always wind up selling my favorite designs in the line in California. You will find East Coast places that go trendy, but it takes more time and it is done more subtly. In California it is done more on impulse"

 With a few noteworthy exceptions, the Vast Majority of Southern California's main action sports accounts are situated on the shore, many directly on the Pacific Coast Highway. A comprehensive list of all the board shops in Orange County alone would take up more time than you've got, but we managed to pin a couple genres.

 The place to Begin is in the foot of the pier At "Surf City USA" at which HUNTINGTON SURF & SPORT (HSS) and JACK'S SURFBOARDS are located in prime real estate, right across from each other on the PCH in Huntington Beach. Not only are all the core action sports brands in these two doors, but also a profound variety of each brand's lineup can be obtained, which makes the stores brand ambassadors as well as retailers. HSS is lauded for especially good merchandising, and both Jack's and HSS have extensive girls' sections. Both stores have three distinct storefronts in HB. Jack's also has a place in Newport Beach.

 "From a Real activity sports point-of-view, Huntington Beach's Main Street and PCH is probably the greatest," says Tim Garrett, VP of international marketing for Globe. "Surfing and 'skateboarding are enormous in HB. Both jack and HSS have dedicated skate and surf segments, because they will get some; customers who only care for skateboarding and some that only care about browsing"

 Along with HB, key board sports accounts Are spread out across O.C.'s affluent coastal towns. BECKER SURFBOARDS is a growing chain with stores in HB, Hermosa Beach, Malibu, Corona Del Mar and Mission Viejo. Becker gets raves for top-line merchandise and trendy store layout. Other stores which do more than let the merch sell itself: LAGUNA SURF & SPORT in Laguna Beach (and Aliso Viejo); PHARMACY in Palmdale; VAL SURF (in North Hollywood, Valencia, Thousand Oaks and Woodland Hills); ZJ 'BOARDING HOUSE at Santa Monica; KS in Encinitas; ACTIVE RIDE SHOP in San Dimas; HANSEN'S SURFBOARDS in Encinitas; and LIBERTY BOARD SHOP in the best skateboards.

 O.C. natives have also been offered up two Socalled anti-malls, THE LAB and THE CAMP, both located in Costa Mesa. Both Anti-malls exist in a state of prefabricated trendy, however both are. surprisingly Effective at producing a "chill" shopping experience.