Postby GraemeF » Sun Mar 24, 2019 11:08 pm
It's a result of marketing. Now I'm not sure what I'm about to tell you remains as true to day as it once was, but the key to Boards & More's early success comes from what we used to joke as 'state sponsored commercial terrorism'. It goes like this, they have a facility in Molne in Austria, which used to be the old windsurfing F2 facility, when the brands, North, Fanatic, F2, Mistral were all merged the facility remained, why was this, there was a lot of rivalry between the mainly German North and Fanatic teams and the Austrian managed F2. Well the story goes as follows the Austrian Government supports the Molne facility to guarantee jobs in a depressed region (Molne is half way up some valley in the middle of nowhere.) Part of this guarantee I believe were export credit guarantees, in which the government 'insure' the export debts. Now the rest of us suffer tremendously with bad payment from lets call them 'enthusiast' dealers who more enjoy kitesurfing than keeping their businesses on the straight and narrow and after the financial crash not only has bank credit dried up, so has our ability to extend long terms. Yet the one thing North and I guess Duotone still offer, is lets call it extravagant 'terms'. Our market was dramatically affected last summer as first there was a flush of North products dumped into the market, but this was then followed by the army of schools, team riders and ambassadors being 'persuaded' to switch their kit. I can only imagine something on this scale, had to enjoy credit terms, are they still supported by the Austrian Government, I do wonder, is it Government or corporate finance, I don't know, but they are preparing for a battle with the new North, who have now 'acquired' the Mystic Distribution, this will be less likely to flood the market with cheap kit, but there will be a well funded 'push' when the new products launch, either way, it won't be because of any 'superiority' of the product, it's a turf war simple as that and it will bring mixed issues, and the big losers? Old North customers having the value of their kites trashed and some won't forgive that.
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