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BG: For the past few years, europe has become your second market, and probably your biggest area of growth. Was europe an inevitable market choice, and has it been a strategically successful one?
NRS: As our US dealer network has matured, we’ve been able to look to other markets for expansion. Today, much of our growth is concentrated in Europe and Canada. We’ve been selling into both of these markets for many years, but we’ve recently made some structural changes that make us much more competitive.
BG: You opened a stocking facility in europe a couple of years ago. What have been the biggest challenges of that move? NRS: The European Distribution Center that we opened up in 2014 has unlocked a lot of opportunities for us, but there has definitely been a learning curve. We’ve had to adapt to unfamiliar regulations, currency fluctuations and new demands on inventory management, not to mention the inevitable cultural and language barriers. We’ve also worked hard to understand the many different national and regional markets within the EU. We’re starting to see those efforts pay off now, and that’s really exciting
Paddling is a community-based sport, and local involvement has always been at the core of who we are as a company.
BG: As part of your european presence, you have forged connections with local paddling communities in a number of different ways. Is this part of NRS’s business philosophy?
NRS: Paddling is a community-based sport, and local involvement has always been at the core of who we are as a company. Our ultimate goal is to be as involved in communities in Europe and elsewhere as we are at home in the Pacific Northwest. Whether it’s producing films featuring local paddlers and rivers, promoting events, or supporting conservation efforts, we believe it’s important to actively participate in local scenes wherever we do business.
BG: You recently hired paddlesports industry icon hans Mayer. Is that part of the same strategy?
NRS: Absolutely. Hans brings so much to NRS in terms of local knowledge, relationships and of course his outstanding reputation. We couldn’t be happier to have him on board.
BG: Some say Asia, and China in particular, is the next big market for leisure industry, including paddlesports. Is part of your strategy to "conquer" China?
NRS: We’re watching trends in Asia and other emerging markets, but we’re keeping our focus on Europe and Canada for now. We’re a large company by paddlesports standards, but we don’t have the resources to pursue too many international markets at once.
BG: You started with whitewater, developed through sea kayaking and recreational paddling, and now have a solid stake in the stand up paddling market too. What has been the key to having success in those new markets? What is specific in the Sup market, that one who wants to go in that direction should be aware of?
NRS: The demand for good products and good service is the same no matter what sport you’re dealing with; the difficulty for a manufacturer
InDUStRY mAGAZIne
is appealing to new audiences while staying true to your brand. Our strategy is to not get into any sport that we’re not passionate about, and to always remember who we are and what we stand for as a company. Whether it’s whitewater, sea kayaking or stand up paddling, there’s a group of people within NRS who are obsessed with it and help drive product development. The most recent example is kayak fishing. We have some guys on our sales team who are crazy about the sport, and they are guiding our kayak fishing program. In terms of stand up paddling, we’re not a California surf company and we’re not going to pretend that we are. We represent a river and mountain lifestyle that’s cool in its own way, and we’re staying true to that heritage.
BG: If you had to break down your revenue per category, what would it look like?
We have a broad and diverse product line, so no individual category makes up a massive percentage of sales. Our biggest categories are rafts, life jackets, technical outerwear and SUP. We’ve always distributed other brands’ goods, largely because of our strong retail and outfitter businesses, but distributed goods make up an increasingly small part of our revenues today.
BG: how do you see paddlesports growing over the next 5-10 years?
NRS: I’m going to be a little harsh here, because I’m very passionate about this. We need to evolve as an industry if we want to grow. We’ve become a niche sport that’s less and less a part of the broader outdoor conversation, and that needs to change. We need to create more compelling products and provide a better customer experience, and we need to broaden the appeal of paddlesports to address a new generation of outdoor enthusiasts. We can complain about the Internet and shrinking margins and what the competition is doing, or we can get to work reimagining our business, improving our offerings and developing new customers. On the positive side, we have an opportunity to reshape our industry for a new level of success. We just have to be bold enough to seize it.
BG: What is the next big thing for NRS?
NRS: You’re looking at it. We’ve taken big steps in Europe over the past few years, but we have a lot of work left to do here. We’ve never been a company that pursues fast growth at the expense of quality or customer service, so we’re going to finish what we started here before we move on to “the next big thing.”
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