Waxing Sales with a Downhill Race

By Stephen Koepp

Ski-equipment makers pin their dollars on Olympic medals

Millions of TV viewers in the U.S. watched in awe one day last month as Californian Bill Johnson, 23, streaked down a Swiss Alp and became the first American ever to win a men's World Cup downhill race. His teammates were jubilant, but no more so than the company that makes his ski boots. The day after Johnson's victory, executives at Swiss-owned Raichle Molitor U.S.A. began planning a new advertising campaign to celebrate the performance of the skier and his gear. The slick ads, picturing Johnson at full tilt, will soon appear in the pages of several ski-industry publications.

Top racers like Johnson are highly sought after to lend their glamour and success to products ranging from Marker bindings to Mentholatum lip balm. Says Heinz Herzog, president of Raichle Molitor: "There's no question that we get a boost in sales every time a top name is seen wearing our brand." When Olympic competition begins at Sarajevo next week, the manufacturers expect to bask in a glow of publicity that peaks once every four years.

Annual sales of ski clothing and equipment in the U.S. are expected to top $1 billion for the first time this year, a gain of more than 20% over last season. Endorsements by big-name racers have become a key competitive factor among ski companies. Most firms are too small to afford network TV commercials, so manufacturers try for some free exposure on programs like ABC's Wide World of Sports by putting their boldly trademarked ski poles and stretch pants on winning racers.

Companies leave little to chance in ensuring that their equipment is displayed to its best advantage. Technicians known as "racer chasers" accompany skiers from mountain to mountain in brightly marked vans to help them prepare their gear for events. The payoff comes when the winning racers pose for photographers holding skis that are plastered top and bottom with splashy trademarks. If manufacturers had their way, skiers might become as laden with logos and decals as race drivers usually are. But International Ski Federation rules say that trademarks on goggles and gloves, for example, can be no larger than .78 of an inch.

Especially responsive to these brand-name promotions are the growing numbers of skiers who have taken up slaloming on a weekend basis. Some 300,000 fledgling racers are expected to test their nerve this season in the National Standards Race, up about 35% from the previous year. Says NASTAR Marketing Director Mark Driscoll: "These are fanatic skiers. They are buying nearly anything that makes them look fast."

Finding hot new competitors to serve as skiing billboards is a long-term job. The makers of France's Rossignol skis employ teams of scouts who follow the racing circuits looking for potential stars. Austrian manufacturers provide free gear to nearly 600 promising youths, some under the age of ten. Comments Christl Haas, a gold-medal winner in the 1964 Innsbruck Games: "These toddlers all have at least three pairs of skis and a company representative to wipe their noses."

Companies sign up talent early because the services of established racers cost much more. Though Olympic skiing is ostensibly reserved for amateurs, rules adopted in the mid-1970s allow ski teams to pay competitors out of a kitty partly filled by manufacturers. Top racers negotiate their own deals with the ski companies, and the amounts are almost never publicly acknowledged.

Austrian Ace Franz Klammer, after a dazzling gold-medal run in 1976, is reputed to have received $700,000 to switch from Fischer to Kneissl skis, and another large sum several years later to jump aboard the Blizzard brand. A top woman skier like America's Tamara McKinney may earn about $100,000, while U.S. Superskier Phil Mahre is reputed to make an even larger income. Says Debbie Armstrong, a member of the U.S. Alpine squad: "It's normal and accepted that each skier has the backing of equipment makers. Skiing has become so expensive that lots of people like myself wouldn't be able to be in races without this."

Mahre and his twin brother Steve carry the logo of K2, a ski maker located on woodsy Vashon Island in Seattle's Puget Sound. The company has catered to the Mahres practically since they first hit the bunny hill. Says K2 President Dale Vogel Jr.: "We won't get a sales jump just because Phil or Steve wins a gold medal.

But we think our involvement with top racers gives us a lot of credibility." The company will produce about 240,000 pairs of skis this season, up 4% from 1983.

At least one firm has thrived by shunning the celebrity sweepstakes. Aspen's Sport-Obermeyer has grown into one of the U.S.'s largest ski-apparel companies without bidding for athletes. Sales are expected to hit $25 million this season, up about 40% from 1983. Says Marketing Vice President Ira Litke: "Most consumers are sophisticated enough to know that Phil Mahre could win in any sweater or pair of pants." --By Stephen Koepp. Reported by Thomas McCarroll/New York and Robert C. Wurmstedt/Denver

With reporting by Thomas McCarroll/New York, Robert C. Wurmstedt/Denver