Word on the street this week is of double digit layoffs from the Australian operations of two of the biggest brands in surfing.
Can anyone vouch for this? Is there any truth in this rumour?
If there is, it begs a lot of questions.
I throw it open to the forum...
has the surf industry bubble finally burst?
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cheap labour.
I don't go in many surf shops 
like I'd go in one about 4-6 times a year on average, for say the last 10 years (minus this year cause I bought a few second hand boards which meant I went for a trawl, and also visited two in tassie just out of interest 
) so ...... I've tended to see the changes of what the shops are carring and for me it's easy to see why your saying that aussie companies are laying off workers. Why 
because the majority of boards in em come from overseas 
like I'd go in one about 4-6 times a year on average, for say the last 10 years (minus this year cause I bought a few second hand boards which meant I went for a trawl, and also visited two in tassie just out of interest ) so ...... I've tended to see the changes of what the shops are carring and for me it's easy to see why your saying that aussie companies are laying off workers. Why because the majority of boards in em come from overseas If it's well engineered it's beautiful .
wrong in a lot of cases.munch wrote: because the majority of boards in em come from overseas
There are still guys out there that have passion about surfing and will keep their store or label core or to its roots, and its up to the consumer to decide wether they want to grab stuff from those guys that are run by a guy that has surfing running thru his veins, or, a company that simply can see the quick buck without any interest in the sport/lifestyle.
Yeah agreed, I've made a massive generalistion therelongbum wrote:wrong in a lot of cases.munch wrote: because the majority of boards in em come from overseas
but "alot" of the surf shops I go into have nothing but overseas-poxy boards and some have nothing but home-poly boards, and I choose to buy my boards from em If it's well engineered it's beautiful .
I reckon its a general trend across all industries to offshore work. This will mean a reduction in labour costs in Oz. The Federal Governments workplace relations laws havent helped but the offshoring has been going on for yonks. The big winners are India, China and Vietnam.
All we need is some civil unrest there and perhaps it will all come flooding back. As soon as supply is interrupted the big companies will realise their mistake. (perhaps).
All we need is some civil unrest there and perhaps it will all come flooding back. As soon as supply is interrupted the big companies will realise their mistake. (perhaps).
From crikey.com.au (whose sources tend to be in the loop)
In 2004 Victorian Treasurer John Brumby proudly announced a $100,000 grant to help surf giant Quiksilver create 50 new jobs. With the global surf giant firing 20 Torquay staff this week, do you think Mr Brumby should go and ask for our money back?
In 2004 Victorian Treasurer John Brumby proudly announced a $100,000 grant to help surf giant Quiksilver create 50 new jobs. With the global surf giant firing 20 Torquay staff this week, do you think Mr Brumby should go and ask for our money back?
Not sure if this is specific to just the surf industry. .
Clothing retail in general has been suffering from a downturn pattern (this is in general and of course some smart retailers are still doing well).
This in turn has had an effect on those companies who supply the clothing retail sector.
Now this may not be the case with the two surf companies you are suggesting, however my guess would be that this is part of the reason. Many other clothing suppliers (outside the surf industry) are doing the exact same thing. It appears that the first areas that are affected are those in the Sales and Marketing departments.
Anyone know how Quicksilver's retail clothing sales are trending in Australia? This will at least give an idea if the above is the case for them.
The sacking of one sales rep in Australia, buys many sweat shop workers in Asia at 10 cents and hour for companies like Quicksilver.
Clothing retail in general has been suffering from a downturn pattern (this is in general and of course some smart retailers are still doing well).
This in turn has had an effect on those companies who supply the clothing retail sector.
Now this may not be the case with the two surf companies you are suggesting, however my guess would be that this is part of the reason. Many other clothing suppliers (outside the surf industry) are doing the exact same thing. It appears that the first areas that are affected are those in the Sales and Marketing departments.
Anyone know how Quicksilver's retail clothing sales are trending in Australia? This will at least give an idea if the above is the case for them.
The sacking of one sales rep in Australia, buys many sweat shop workers in Asia at 10 cents and hour for companies like Quicksilver.
I work in IT and we've seen many jobs go to India.
Unlike clothes manufacturing however, the quality is not equal to Australian, it's about a 100 times worse, it's keeping me in a job repairing it all.
I think eventually that people will come to realise that you do get what you pay for.
The problem is that the big companies don't really care about what their customers think (the banks are a good example) So long as people keep buying and using their products they'll try and give it to them at the cheapest labor cost they can and kept to a quality that is just over the threshold of being bad enough that will make a customer want to go somewhere else.
The big surf brands aren't any different to other clothes manufacturers, why pay an Australian $12 an hour and have to pay all the other costs surrounding it (WorkCover, Insurance etc...) when you can get it all done in China for $0.12.
Here's something interesting I noticed a few months ago. The Quicksilver "Board Riders Club" store in Swanston Street Melbourne CBD does not even have one single surfboard or booger for sale! The Rip Curl one does I think, but they are ridiculously over priced.
It would seem that big companies (or their shareholders more to the point) are finding that there is no money in making surfboards in Australia.
Unlike clothes manufacturing however, the quality is not equal to Australian, it's about a 100 times worse, it's keeping me in a job repairing it all.
I think eventually that people will come to realise that you do get what you pay for.
The problem is that the big companies don't really care about what their customers think (the banks are a good example) So long as people keep buying and using their products they'll try and give it to them at the cheapest labor cost they can and kept to a quality that is just over the threshold of being bad enough that will make a customer want to go somewhere else.
The big surf brands aren't any different to other clothes manufacturers, why pay an Australian $12 an hour and have to pay all the other costs surrounding it (WorkCover, Insurance etc...) when you can get it all done in China for $0.12.
Here's something interesting I noticed a few months ago. The Quicksilver "Board Riders Club" store in Swanston Street Melbourne CBD does not even have one single surfboard or booger for sale! The Rip Curl one does I think, but they are ridiculously over priced.
It would seem that big companies (or their shareholders more to the point) are finding that there is no money in making surfboards in Australia.
Just out of interest.
Was walking through New York City 2 weeks ago. Right in prime location on Broadway (in fact probably one of the best locations in NYC) is a large Quicksilver store. The place was packed with people buying anything with a Quicksilver logo on it. My guess would be not one person in that store knew anything about surfing. I know the guy working the floor there said that he would like to try surfing one day. It is basically just a fashion store that uses the 'surfing lifestyle' to market its clothes to everyday people.
I guess if these companies remained pure surfing companies with a target market of only people who ride surfboards, then these companies would not be around today.
Was walking through New York City 2 weeks ago. Right in prime location on Broadway (in fact probably one of the best locations in NYC) is a large Quicksilver store. The place was packed with people buying anything with a Quicksilver logo on it. My guess would be not one person in that store knew anything about surfing. I know the guy working the floor there said that he would like to try surfing one day. It is basically just a fashion store that uses the 'surfing lifestyle' to market its clothes to everyday people.
I guess if these companies remained pure surfing companies with a target market of only people who ride surfboards, then these companies would not be around today.
You’re so right Hatch, remember years ago hearing from someone very high in the financial services industry saying the banks only deliver what suits them, it is not customer driven at all. Ain’t too many alternatives though...Hatchman wrote: The problem is that the big companies don't really care about what their customers think (the banks are a good example) So long as people keep buying and using their products...
You obviously haven’t been to ManlyHatchman wrote: Here's something interesting I noticed a few months ago. The Quicksilver "Board Riders Club" store in Swanston Street Melbourne CBD does not even have one single surfboard or booger for sale! The Rip Curl one does I think, but they are ridiculously over priced.
surf FASHION boutiques is all they are, the boards are for decoration, yes and overpriced to buggery so they are NOT sold.
Hatchman wrote: It would seem that big companies (or their shareholders more to the point) are finding that there is no money in making surfboards in Australia.
Still don’t think shareholders should be accountable for management decisions, but I probably lost that arguement in another thread
The time for Virgin Surf is nigh
anyone got Sir Richard’s number I need some seed money to get this baby off the ground...ric_vidal wrote:The time for Virgin Surf is nigh
virgin seed baby ... 
um
I don't want to get involved in virgin surf but I'm interested in Virgin Tours .
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now I just look like a crusty old festa, don't I
If it's well engineered it's beautiful .
The chinese business I commute to has 35 active bays from shaping to bogging up to polishing - they export hundreds of boards a week to California - they pay their workers about $1.75 and hour - the workers have one day off a month - they work 12 hours a day - they make all the types of boards we ride .. from swallow tailed fish to 9'6" longboards - they also make composite bike frames - composite F1 motor racing car bodies - suf skis - paddle boards - racing kayaks - canoes - All the product looks A1 - - The business argument, to go there or not , is irresistible / laz
Bottom line is......
1 x Tshirt for $80 (oz made)
1 x Tshirt for $40 (os made)
which one you gonna buy ???
90% of people cannot see the bigger picture. If you pay more $$$ your gonna keep $$$ here which in turn creates more jobs & industry, better wages etc etc, etc...
but humans mostly want cheap things cheaper so down thru the spiral we all go......
1 x Tshirt for $80 (oz made)
1 x Tshirt for $40 (os made)
which one you gonna buy ???
90% of people cannot see the bigger picture. If you pay more $$$ your gonna keep $$$ here which in turn creates more jobs & industry, better wages etc etc, etc...
but humans mostly want cheap things cheaper so down thru the spiral we all go......
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