Part 1: Business results and forecast
2017 Business results and 2018 forecast
Read time 6 minutes: Kitesurfing has become one of the fastest growing watersports worldwide. The number of kite schools and potential students is growing, but how does this relate to your business or your fellow kite school owners? And what do kite schools expect in 2018?
We will also take a look at the differences in expectations between kite schools and kite shops.
Schools and shops in 2017
2017 has been an excellent year for most of the kite schools. 26% of the participants reported moderate growth and 29% even recorded strong growth of over 10%. Those numbers combined show an increase of business for 55% of the schools! Additionally another 21% was able to maintain their turnover resulting in 76% of the market being alive and healthy. The circle is completed with 12% not wanting to respond to this specific question and another 12% reporting a decline in business.
While looking at kite shops, the survey shows that more than half of the shops (63%) was able to develop their business in a positive way (Strong growth, growth and a stable turnover combined). 2% of the shops successfully expanded their business and 9% of all shops reported an increase of over 10% in turnover. About 28% of the kite shops was not able to grow and noticed a decline in turnover compared to the year before, compared to 12% of the kite schools. 9% of the responding shops didn’t want to answer this question.
When combining the results of the schools and shops we can conclude that about 67% of the total market was able to maintain a healthy business.
Goals and expectations for 2018
The kite scene is considered bright and prosperous about 2018 as almost 90% of your market (schools and shops) expects to be able to maintain its business (Strong growth, Growth and stable turnover combined). 37% of the schools expect moderate growth while 29% of the schools expect to increase their turnover by even more than 10%. Just 3% of the responding schools is expecting a decline in turnover for this year. 9% didn’t knew or didn’t want to answer the questions.
Of all the kite shops 80% are working forward to a positive year in terms of turnover (Strong growth, growth and stable turnover combined). 12% of the shops expect a decline for 2018. Schools expect to make a transition upcoming season and grow more than last year. We can conclude that, in comparison to shops, kite surf schools are more positive about the expected growth for the upcoming season and expect more growth in total.
How much of your business can be found online?
39% of the schools we spoke to state that half of their business is generated online, and another 28% claims that 10-25% of their business is generated online. What surprises us, is that almost a third of the participating kite schools only generate 10% or less of their business online.
On the other hand, 91% of all schools expect that this percentage will grow in the next season (in the upcoming articles we will share more information, tips and tricks on online business by kite schools).
Shops generate more business online. About 50% of the shops generate at least half of their sales online. About 18% generates 25% to 50% of their business online and 34% of the shops do less than 25% of their business online. While shops already focus more on online sales, it is no surprise that 55% expects to be able to continue to grow their online business . Only 4% of the shops expect a decline of the percentage of business they generate from online activities. 40% expect similar percentage of business gained online.
Global, Europe and local market development
You guys are expecting a good season, about 90% of all schools worldwide expect positive business results. What catches the eye is that 42% of the European schools expect a strong growth while outside of Europe this percentage is 26%. Also the number of schools that expect to decrease is 8% outside of Europe versus 4% in Europe. So check your numbers when you are expanding!
- Most shops and schools expect to grow their turnover compared to last year
- Growth for schools was stronger and more widespread compared to shops
- More business is expected by being more active online
- Biggest growth is expected for schools outside Europe.
It’s up to the wind and a good strategy for these plans to succeed and expectations come true. Time to get the strategy right and make that turnover grow! In the next episode of the tricks of the trade we will share information on how to get the most out of your supplier.