2019 Surf Market Report 2019 Surf market Report | Page 2

O P P O R T U N I T Y H O W More Australians than ever are choosing to buy sustainable products and services from responsible companies. They are driving a $30Bn market in Australia from organic food to solar panels, recycled paper and energy efficient appliances. O P P O R T U N I T Y I N B I G I S T H E S U R F ? LOHAS Consumer Segmentation Model — 2018 Engaged Market Entrenched Market What is LOHAS? Emerging Market LOHAS is an acronym for Lifestyles Of Health and Sustainability, a term used to describe a type of consumer and also the marketplace for the goods % Leaning 40% and services they seek. Learner 36% Mobium has surveyed over 50,000 Australians Leader 16% Laggard 8% about health and sustainability in the last decade. *Adult Australians aged 18-69 years. More Leaders every year The surf apparel market is estimated to be worth $1.2Bn in Australia. More than 50% of surf apparel shoppers say they would switch to a brand committed to sustainability, representing a $600m+ opportunity LOHAS Leaders — Australian Adults The Leaders segment has grown from 8% to 16% % 8% 10% 11% 12% 14% 16% of the adult population since 2007. Leaders are committed to buying sustainable Dave Rastovich cold water testing Yulex wetsuits in King Island, during a visit supporting the Keep King Island Fish Farm Free campaign. Photo: Ted Grambeau A Growth Market products, they want the story behind the brand, 30% of surf apparel customers have already and they pay a premium for sustainable brands 2007 2008 2009 2010 2014/15 2018 purchased an item because of its sustainability that deliver on their promise. credentials - and over 60% say sustainability will be a more important factor in the future. Leaders are the changemakers. They are committed to buying sustainable products, they want the story behind the brand, and they pay a premium for sustainable brands that deliver on their promise. Patagonia ambassador Belinda Baggs holding a hevea seedling from which natural rubber is harvested to make Patagonia’s neoprene free, Yulex wetsuits. Photo: Jarrah Lynch 75% 59% Believe it is important Said they would change for the brands in the surf their purchasing to support industry to demonstrate brands who can demonstrate leadership in being a commitment to being sustainable. sustainable. % 60% 30% Now Future