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Industry News:

What Does Salomon's Sale Mean to the Inline Industry?

Some See Sale as Hopeful, Others Have Doubts ... Only Time Will Tell

By Robert "Just the Factoids" Burnson

Salomon isn't the biggest fish in the inline sea.

But in its eight years in the skate puddle, its swirl-shaped logo has rippled throughout the industry.

Not only has it become a leader in the high-end fitness market, but it has dominated the freestyle market in Europe.

In addition, it has assumed an important leadership role as the cosponsor of the powerful Saab-Salomon team, one of the top contenders for the World Inline Cup.

So what happens now that Salomon is being sold to the Finland-based sports conglomerate Amer?

New Boss Same as the Old Boss?

Probably not much ... at least not initially.

The $628 million sale is basically a lateral transfer of the company from one sports conglomerate (Adidas-Salomon) to another (Amer).

However, Amer is significantly smaller than Adidas (the world's second biggest sporting goods company). So perhaps now, Salomon will become a higher priority.

"Adidas has been a great big brother," says Michael Chiasson, Salomon North-America's inline product manager.

"But Amer understands our hard goods business more intimately --- and since we will be the biggest brand in its portfolio, this means more attention at all levels," Chiasson says.

"I see (the sale) as Salomon going from the sixth man off the bench to the star center."

No News Is Good News

So far, Amer (which also owns the brands Wilson and Atomic) has said nothing about making any changes at Salomon.

Salomon headquarters will remain in Annecy, France; Jean-Luc Diard will continue to run the company (he has been president since 1998), the company will retain its own sales staff; and its reorganization (which shifts manufacturing to Asia) will continue.

Whatever changes are in store apparently will come further down the road.

What about Peace, Love and Understanding?

One thing to watch will be Salomon's 2006 inline skate product line.

With its product line this year, Salomon appeared to maintain its high standards for quality and fit, but lost ground in terms of innovation.

In fact, its top-of-the-line fitness skates seemed to be little more than last year's models, refitted with new frames and bigger wheels.

Meanwhile, Rollerblade and K2 both introduced completely new skate models this year to tap into the excitement of the Big Wheel market.

These new skates are likely to chip away at Salomon's share of the high-end market. The question for next year is: Will Salomon get back into the race?

Jabba's Hungry!

Keith D'Entremont, former president of Roces USA, says he has doubts about the merger of skate company and conglomerate.

"I've been around too long and can remember when Salomon was a family business," says D'Entremont, who is now the national sales and marketing director for Ovo ski helmets.

"My personal opinion is that ski and skate are small, peculiar industries, best left to those that know and love them.

"I'm not convinced that they present a good fit within a conglomeration."

(posted on May 6, 2005)

 

 

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