Leading the Way in Action Sports Protection: An Interview with TSG’s CEO Marcel Korner
As a leading brand in the bike, skate and snow sports protection industry, TSG International AG (TSG) holds a remarkable position on the global market. Driven by a passion for innovation, accountability, and a clear vision for the future, TSG is in good hands with Marcel Korner serving as CEO since 2022. We spoke with Marcel to find out more about current challenges and highlights, his leadership and TSG’s strategy.
Please tell us about your career before you joined TSG
I joined TSG from the sporting goods manufacturer Amer Sports, where I was most recently responsible for the global direct-to-consumer business of the winter sports brands Atomic, Armada, Salomon, and Volant. Prior to that, I spent five years as Head of Strategy & Business Development at Ringier and Ringier Axel Springer Media. And between 2002 and 2009 I worked at Swiss Snowsports, JTI, and NZZ, where I held positions in marketing, product, and project management.
How would you describe your leadership style?
I strongly believe in accountability. When people are accountable, they take ownership of their tasks and communicate more effectively. Both lead to higher performance, improved teamwork, and a more robust culture. Because much of my work is based on embracing change to avoid stagnation and to try new avenues of opportunity, it is key motivating others with a vision of the future that they can contribute to. And Leadership is also about being self-critical. I reflect on what worked well and what didn’t in my past experiences. I apply these lessons to avoid previous mistakes and can therefore constantly improve myself.
Marcel, you joined TSG in 2022, in a year when the entire sporting goods industry achieved record results. What did the situation at the time mean for your start?
In 2022, the supply bottlenecks caused by the previous pandemic were fully offset. Overall, we were able to close the financial year on a very positive note. However, when I started as CEO in autumn 2022, various market indicators and our own pre-orders for summer 2023 showed that we were in for a challenging next year. This has long since come true and almost the entire sports equipment industry faces several key challenges since then characterized by overstock, inflation and costs, changing consumer preferences and sustainability pressure.
How do you deal with these difficult economic conditions?
We are essentially pursuing two strategic directions to ensure that the brand is doing well. Firstly, I had to make operational changes, for example reducing operating costs by streamlining business processes, renegotiating supplier and distributor contracts or improving inventory control and logistics. While the focus here is on reducing costs to ensure profit and a positive cash flow, the second is on revitalising the brand and helping it to achieve new growth. This is just as important and cannot be done separately from the cost management, because continued growth enables a brand to innovate, and lead the way to new opportunities in the marketplace. Examples of this include identifying and targeting new consumer segments that have been overlooked or shifting from traditional to digital marketing to reach a larger and more engaged audience.
What does it take to make it all work?
The first thing you need to do is make sure that everyone involved is clear about where the company is heading. Therefore, it was important to have clarity about what TSG’s winning aspiration is.
And what is TSG’s winning aspiration?
Our winning aspiration is to become the number one brand of action sport protection designed by riders. It is our guiding purpose, and we orientate all our actions accordingly by clearly outlining what our playing field is and how we want to win on this playing field.
Can you give us a few examples of what you have changed on TSG’s playing field in the last two years?
As a result of our “where-to-play” and “how-to-win” choices one year ago we relocated our warehouse from Austria to the Netherlands. The new distribution centre in Rotterdam allows us to provide European distributors, wholesale customers and consumers with improved and efficient services from warehousing and packaging to fast shipping.
Another example relates to the Swiss market. We are rapidly implementing a “Winning at Home” strategy for Switzerland. The Swiss market occupies a special position in our global brand presence, as TSG’s headquarters and design laboratory are in Zurich. It therefore makes sense for us to take the entire sales and logistics process into our own hands. By moving away from the distributor model towards our own sales organisation, we want to move closer to our Swiss retail partners and offer them direct and comprehensive customer support from a single source.
Are there also examples from the product area?
Yes, there are quite a few. First of all, products are the lifeblood of our company. To be successful, you need good products. And you only make good products if they are relevant to your consumers. Here is an example: In US, Roller Derby is a fast-paced, full-contact sport played on quad roller skates. Working closely with this target group, we have further developed our protection product line to offer a compelling solution for the requirements of this sport. I always encourage people to let me know about their needs so that we at TSG can develop the right solution for it.
That looks like a successful example of how a product can be further developed. But is that enough to keep up with the competition in terms of innovation?
In the current challenging market environment, I believe in a sort of controlled innovation, incrementally implemented with thought and consideration. Our current focus is on incremental innovation: we listen to our pro rider team, consumers and dealers about what we can improve. We are expanding our product portfolio with new design and colour variants. We selectively implement new product features, and we rely on sustainable practices in packaging, production and logistics wherever possible and meaningful for the brand. And even if the focus is currently on incremental innovation, we are not standing still. We have something great in the pipeline for winter 2025.
Can you tell us more about it?
I don’t want to give too much away yet. But we are working on a new protective gear concept that combines comfort, lightness, protection and sustainability to a high degree.
Any major marketing initiatives planned?
Yes absolutely, a few weeks ago we announced that we would be the Official Volunteer Supplier of the FIS Freestyle World Championships 2025. It’s great, we will equip over 600 volunteers with specially designed TSG Vertice helmets and our TSG Goggle Four. Partnering with such events provide the brand with increased visibility, access to a targeted audience, and overall enhancing our brand image and credibility in winter sports.