Sector 9 Sold to Billabong Surf

[skategeezer]

from my blog...

So Billabong acquires Sector 9.

Not surprising, really.

For me it was always a question of when and who and not if.

The three principles behind Sector 9, along with a dedicated staff have done a tremendous job of carving out their own niche within skateboarding. They were mocked and derided at first. In fact, to this day, there are still some people in the skate world who still can’t get over the fact that anyone would want to buy something other than a street deck with 99 durometer wheels. Doubtful these folks will have their minds changed by this turn of events. But really, it’s not about the folks with tunnel vision – it’s about companies like Billabong and Quiksilver and Burton (who just acquired Alien Workshop) who see a market worth investing in.

Over the past few years, Sector 9 have become so successful and so dominant that it’s a wonder Billabong didn’t buy them sooner.

What I find interesting is that when I first met up with Sector 9, it was 1997 – eleven years ago. Even back then, I could tell they were anxious to make things happen. So, now the payday – or one would hope a payday for the founders. They’ll stay on for some time, I am sure…but then, well, time to move onto other goals. Or not…I guess it really depends on how things unfold.

There are a few things I keep thinking about – here is a random list

• I think everyone who runs a street skate company will be either wondering:
  • why can’t I get bought out by a big surf company – like RIGHT NOW!
  • holy crap, those Longboarders are onto something – how do we go after that market?

• Billabong has a lot of marketing money and a lot of muscle – they can get Sector 9 product into a number of different areas – exposure is key for Longboarding to keep growing

• In terms of marketing, this sends a very clear signal – the clothing guys want hardgoods to enhance what they do – it will be interesting to see if Billabong can make the soft goods of Sector 9 work. Thus far, NO Longboard company has made softgoods work. Perhaps this is the opportunity.

• It’s no secret that Sector 9 has been extremely aggressive in protecting its market share in certain retail areas. Go down to San Diego county and you’ll find racks of Sector 9 in lots of shops – and nothing else practically. It reminds me of that old Henry Ford chestnut: you can any color you want as long as its black. There are many companies that make very lucrative deals with shops to keep out other brands – it will be interesting to see what happens when Billabong moves Sector 9 product into more shops/channels. Some shops might have a problem with this – and this leaves the door open for up and coming brands.

• And finally, a personal note. A lot of people are watching and talking about this deal and will be in the days and months to come. It is significant and if you are a longboarder, it will have an impact on you. Why? Because a company like Billabong doesn’t acquire a niche skate company without big plans. As Steve Lake told an audience back in January at Surf Expo - “I keep thinking this is just the beginning.” Steve, I couldn’t have said it better myself. This is all a precursor as to what is about to unfold….and it’s going to be very exciting to see ALL types of skateboarding (and skateboard brands) GROW!

[Steez Police]

I had never even heard of billabong until I moved out of Cali and into Colorado where everyone wore Billabong, Lucky jeans, some variation of tan doc martens, and a bleach blond crew cut.

Sector 9 is now dead to me, for nothing more than being associated with the fratclone nightmare of my unwillingly uprooted childhood.

[Braden343]

as much as this comes as a shock to us , I doubt board production/quality/marketing/availability will change much.

this seems like a bad time to sell though, longboarding has grown a lot in my city recently (so I assume it has on a larger scale), so why sell out now? I would wait longer until the company has peaked.

to the point, Billabong now takes Sector 9 profits, that is all.

[skategeezer]

Braden,

it's complicated

yes, they take profits...but a bird in the hand vs two in the bush...

[Parallel Man]

Look at this the other way.

The Sector 9 guys pocket some cash, put in their obligated time with the company's new owners and then walk away. After an agreed-upon non-compete time period they are free to start all over again only this time with more start up money.

Some people look at deals like this and see a big company coming in and altering the direction or the momentun of the company. I look at it as an opportunity for the longboard skate community to still get what it wants from S-9 and maybe in the future getting even more from a new brand name.

I mean, Ferrari sold out to Fiat and things in Maranello got a lot better. Lamborghini sold out to Chrysler and things in S'ant Agata got a lot better. Lear sold out to Bombadier and things got better. There's no reason to assume S-9 getting sold to Billabong means things won't get better.

[Mile_High_Mark]

I'm still waiting on my offer letter from the folks at Depends.

[SK1ER]

Originally Posted by Parallel Man

Look at this the other way.

The Sector 9 guys pocket some cash, put in their obligated time with the company's new owners and then walk away. After an agreed-upon non-compete time period they are free to start all over again only this time with more start up money.

Some people look at deals like this and see a big company coming in and altering the direction or the momentun of the company. I look at it as an opportunity for the longboard skate community to still get what it wants from S-9 and maybe in the future getting even more from a new brand name.

I mean, Ferrari sold out to Fiat and things in Maranello got a lot better. Lamborghini sold out to Chrysler and things in S'ant Agata got a lot better. Lear sold out to Bombadier and things got better. There's no reason to assume S-9 getting sold to Billabong means things won't get better.

Good Post

[Barf]

A mod should merge this thread with the other one:

Sector 9 Sold to Billabong Surf

[HerBDerb]

Hooray!
Longboarding is now officially second-rate surfing!

[worldridr768]

I'm not sure what to think right now.

[Alpha06]

Originally Posted by HerBDerb

Hooray!
Longboarding is now officially second-rate surfing!

Its still first rated skating to me, I dont know what you're talking about

[A-cuara]

this is going to be good, longboards showing on mainstream, more products, more skaters, happy reps, happy sales. MORE longboarding around the world.

[Shimotakimas]

NOOOO WTF YO. I just bought a used s9 and now I'm showing that I endorse Billabong and I hate their beachy clothes! The name and image of sector 9 is better than the image of Billabong. This really grinds my gears.

[Ghoulardo]

Originally Posted by Shimotakimas

NOOOO WTF YO. I just bought a used s9 and now I'm showing that I endorse Billabong and I hate their beachy clothes! The name and image of sector 9 is better than the image of Billabong. This really grinds my gears.

Either way I think both their images are pretty bad.

[gricco]

lol.. why am i not surprised

[southshorelocal]

Well this puts all arguments to rest. S9 is a sell out and I will never but another one of their products.

[worldridr768]

Why the #### do all of you care? Ride your ####### boards. Who cares who owns the company. If it's a quality product who gives a ####?

[ALEC_[XAN]_DUR]

o no. i need a new board. im not going to feel right riding my S9. but its the only thing i got lol. i guess not people can now say, well i got a sector nine before they became COMPLETE sellouts. ####

[corylewandowski]

I dont like any of them. Maybe Billabong will do something good with S9, we dont know yet.

[Fishtale Boards]

imo it just makes sector nine more of a cliche "surfy" board company, and also the fact that they will probably be even bigger now. but who knows maybe it could remain pretty much the same at the core.