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Executive Brief: Impact of Direct-to-Consumer (DTC) Sales on the Paddlesports Industry

  

Overview

This executive summary provides a role-based analysis of the impact of Direct-to-Consumer (DTC) sales across the paddlesports industry. Insights were drawn from a cross-sector survey of retailers, outfitters, manufacturers, sales representatives, and industry associates. This summary is based on survey results through May 19, 2025. Updated results will be discussed at the June 5, 2025 webinar. 

Key Insights by Stakeholder Group

1. Retailers (54 respondents)

  • Impact: Most negatively affected group, with over 60% reporting significant or extreme impact.

  • Top Concerns:

    • Declining trust in manufacturers

    • Perceived unfairness in current pricing models

    • Concerns about long-term sustainability of brand relationships

2. Outfitters (21 respondents)

  • Impact: Similar to retailers, though slightly less severe.

  • Top Concerns:

    • Erosion of profit margins

    • Difficulty competing with DTC pricing

    • Reduced marketing support and brand trust

3. Manufacturers (32 respondents)

  • Impact: More optimistic; view DTC as a necessary growth strategy.

  • Top Suggestions:

    • Implement geo-fenced sales data to manage channel conflict

    • Enforce Minimum Advertised Price (MAP) policies

    • Foster collaborative hybrid models with retail partners

4. Sales Representatives (9 respondents)

  • Impact: Concerned about role relevance and compensation.

  • Top Concerns:

    • Lack of credit or commissions for DTC transactions

    • Disconnect between in-store promotion efforts and DTC rewards

5. Industry Associates (8 respondents)

  • Perspective: Strategic, high-level view of systemic tensions.

  • Top Recommendations:

    • Improve inventory planning and forecasting

    • Support innovation through dedicated funding

    • Establish clearer communication and partnership frameworks between dealers and brands

Conclusion

The shift toward DTC sales is creating economic and relational strain within the paddlesports sector. While manufacturers embrace it as a strategic evolution, traditional partners—retailers, outfitters, and sales reps—are disproportionately burdened. Moving forward, the industry must prioritize transparent, collaborative models that equitably balance innovation and stakeholder value.

Recommended Actions

  • Develop clear, enforceable MAP policies

  • Introduce hybrid sales models with shared revenue or attribution

  • Enhance communication channels and trust between manufacturers and frontline partners

  • Invest in systemic improvements such as inventory planning and innovation support