The DIVERT Story - Part 2 - Three Major Market Trends, One Massive Opportunity
With such a large opportunity, why hasn’t anyone done this yet? There are thousands of people who would like to and have attempted to capitalize on the major pain point that exists in the Action Sports around accessibility to participation, but the market hasn’t matured until right now to warrant such a solution. Three converging forces mean now is the time to act on Action Sports!
CONVERGING FORCE #1: ACTION SPORTS
In the last post, we dove deep into the first force which is the growth and relevance of Action Sports. In case you missed it, here’s the short and sweet… Action Sports are the chosen sports for the upcoming generations (millennials and younger) because ideals like individuality, creativity, and self expression are reflected more in Action Sports than traditional sports.
While they would love to participate, monetary, geographic, and organizational barriers shut them out, which creates a massive opportunity as it represents a supply constrained market.
(source: Tyler Grove)
CONVERGING FORCE #2: ADVANCEMENT OF ACTION SPORTS TECHNOLOGY
Interest in these sports is great, but as long as the barriers prevent participation, the industry will remain choked by its own limitations, ironic for an industry that loves to tout a no limits mindset.
Here’s where the second converging force comes in. The skaters, surfers and snowboarders from the 80’s and 90’s have now grown up and turned engineer and entrepreneur. As a result, they have developed new technologies that break down those barriers that once existed. These new technologies have made participation in these sports possible anywhere.
It seems like everywhere you look someone is installing a wave pool or wave machine and companies like Snowflex have made the cold and mountains an optional part of the skiing/snowboarding experience. These technologies have transformed the face of Action Sports and we currently find ourselves at the inception of the impact they will have on the industry.
CONVERGING FORCE #3: SURPLUS OF AVAILABLE REAL ESTATE
Have you been to your local mall lately? Uhhh ya, we didn’t think so. Neither have most of your friends. Where do you go when you need to buy something? Amazon. As a result , an estimated 100,000 stores from brands like Sports Authority, Forever 21, Sears, JCPenny, Macy’s and many others are closing. This has left malls feeling more like a desolate underground hangout than a welcoming family experience.
The owners of these malls are still well-capitalized and are searching high and low for the answer of how to bring people back to their properties. They are turning to location-based entertainment, specifically concepts that bring the sport and lifestyle offerings that the millennial generation and younger choose to consume, and are willing to pay for.
(Source: Fashion District Philadelphia)
Let’s do a mental exercise. Let’s say you took Action Sports and the overwhelming interest from the younger generations Then you took the technologies that make them accessible anywhere and you designed an authentic and culturally relevant Action Sports experience. Then you put that experience in an available big box with a supportive landlord. Do you know what you might get? You will have to wait until our next post to find out!
Want to be a part of the solution with us and our team of industry experts? CLICK HERE to follow, share or contribute to our campaign and secure your spot as we build the future together!
David and Zach