A conversation with Herman Poklukar, Elan’s long-standing North American markets representative.
Life can be an interesting and fun adventure if you dare to be brave, adventurous and open-minded. Things start to happen that may at first feel completely impossible and unthinkable. This is the life story of Herman Poklukar, Elan’s long-time head of the branch offices in the USA and Canada. Herman was born in the village Gorje near Bled, Slovenia. He moved to Bled as a young man and spent all his youth and adult life there until moving abroad. After graduating from high school in Ljubljana, he took a job in Bled at the institute of tourism, and while working continued to study and earn his degree in economics. In 1978 he joined Elan’s export department in Begunje. Six years into his job, he was offered a job that his curiosity could not let him refuse. He was offered a position in the management of Elan's North American branches. The first contract he signed was for five years. “Back then I told them not to even ask me for an extension.” The first five years passed quickly, but then things started to pick up pace. Yugoslavia was on the verge of collapse and Elan did not fare much better. The company ended up bankrupt, but its presence on distant markets survived without serious consequences because it managed to deliver all the ordered and sold goods on time throughout the year of bankruptcy and beyond. The market did not see most of the frequent changes in ownership and management in Begunje, so Elan managed to maintain its market position.
All these events significantly extended Herman’s initial five-year stay. Through a combination of circumstances and twists and turns of fate, Herman Poklukar and his family still make their home in the USA today. Although he now holds dual citizenship, he has never forgotten his roots. He remains a Slovene at heart, and above all a native of Gorenjska area of Slovenia. Even across the Atlantic, Herman still listens to Slovenian news and reads Slovenian newspapers every day. He travels to Slovenia at least twice every year to enjoy quality time with friends, playing golf and discovering the beauty of Slovenia. He says that the view of the Slovenian peaks from the Bled golf course is the most beautiful view in the world.


You moved to the USA in 1984. From a personal perspective, it was probably a much bigger step back then than it would be today. How did you decide to move to the other side of the world, did you have any doubts?
As someone who was always completely disengaged from politics, I still wonder how and why I was chosen for the job.
Elan has held a presence in North American markets since the late 1950s. At the end of the 1970s, the Shakespeare company that represented Elan at the time, decided to cease their operations. The question of how to move forward without them immediately arose, because such an important market could not simply be given up. At the time, Elan's long-standing and very close business partner, the Swede Lars Bengtsson (who also introduced the legendary Ingemar Stenmark to Elan), suggested that two new companies be set up, one in the USA and one in Canada, to ensure a smooth continuation of operations in North America. But in 1982 Mr. Bengtsson became seriously ill. He informed us of his illness and proposed to Elan management that Elan take over or buy out the branches and continue working through them on its own. Elan's management was very aware of the importance of the North American market and decided to keep going. So it suddenly became necessary to find and place someone from the parent company in both branches. The opportunity was offered to me.
What was the main driver behind your decision?
I made my decision relatively quickly. I was mainly driven by the thought that if I didn't accept the offer, I would probably never stop wondering what could have been. I could never escape the thought of what I had missed. If you don't go and try, you don't know. This has always been my motto.
I had only been to America twice before. It is true, however, that I was somewhat familiar with the market and the work of the branches because I covered the USA and Canada when I was still working in Begunje. But even so, it was a major change. The initial decision was quite easy. But the closer we got to the actual departure, the harder it got.
How did your wife take your decision?
When I got the offer and accepted, I couldn’t face telling her for the first two weeks. But when I summoned up the courage to tell her about my decision, she said: “All right, you go ahead, I'm not going anywhere. I have a job, a flat, a life here...”
And so I spent the first two years in the US on my own, traveling back home few times a year. We soon realized that this was not going to work, the situation in her job changed and the decision was made for her and our daughter to join me in the USA. I also realized that having my family with me would make it much easier for me to cope in my new environment.
How did you make your first steps in the new world?
Naturally, it took me some time to acclimatize. Both on a purely personal level and, of course, in terms of business. In retrospect, I could perhaps say that it took the people in both companies even longer to acclimatize to me and accept me than it took me to get used to them. Initially, they were very suspicious and it took me a lot of willpower and energy to convince them by my actions that I did not come here to spy, but to serve Elan companies in North America and above all as their colleague. My only interest is productive and fruitful cooperation and the success of both companies.
How strong was Elan's presence in North American markets at the time and how much of its reputation was marked by socialist overtones?
In this respect, the great geographical distance between Yugoslavia and the USA was a huge advantage. The Americans were interested in business and we never paid much thought to politics.
But there was a different problem. Elan products were known for being robust, durable and affordable. We had to be at least 25% cheaper than our competitors to sell anything. This was Elan’s opening strategy in the US market. So we initially did most of our business with ski rental companies. We had a market share of almost 10% even then, but the average price was very low. It took a lot of effort to even try to shift the perception of Elan, which was seen as both high quality and a great value. This is still the case today in a way, despite the fact that Elan has been producing the most innovative and technologically sophisticated products for years. The fact is that changing and upgrading the image of a brand is a long and complex process in which all the elements - the product, marketing and reliability in partnership - must work in unison over the long term. But Elan is definitely making it happen.


Your departure coincides with the years of the greatest successes of ski racers on Elan skis. That was the time of Ingemar Stenmark, Bojan Križaj and others. Did you see a positive impact of these successes in the US markets?
It is true that the Alpine World Cup, and competitive skiing in general, has never been particularly well-known among the American public. Statistically, only two to three percent of Americans ski. In Canada, the proportion of skiers is much higher. But even so, Stenmark's successes certainly did contribute to the recognizability of the Elan brand in North America. However, from a sales perspective, the costs of taking part in competitive sport never outweighed the benefits. So, I think the decision to leave the World Cup and move to the world of ski cross made sense for two reasons. Ski cross is rapidly gaining in popularity and consequently in media coverage while also being less demanding in terms of costs, and at the same time it still showcases Elan's presence in the competitive field.
What about Elan's innovations, how have they influenced the brand's reputation?
They have had by far the biggest impact. In the early 90s the innovations played a key role in positioning the company in the higher price brackets. Thanks to innovation and technological sophistication we managed to shake off the reputation that the Elan brand is mainly recognized in the lower price ranges.
How did the North American market receive carving skis?
It was back in 1994 when Elan pioneered the carving ski with the SCX. Personally, I was very enthusiastic about the innovation, but I suggested that they opt for a slightly less radical and extreme version. I knew that the market would have some concerns at the beginning. Elan did not patent the ground-breaking parabolic sidecut because it was supposedly not possible. The very next winter competitors already introduced slightly less radical versions of carving skis that took away a good portion of our market share. What is important about this innovation is that it was Elan that brought about a permanent and revolutionary change in skiing.
At Elan, we always firmly believed in the “try before you buy” approach. This proved decisive for the SCX skis, because we were able to give people the opportunity to actually experience the benefits of these skis. Retail sales staff also played a key role in sales in general. They were and continue to be regularly trained and briefed on new products before each season. I always advocated the importance of salespeople in retail. Supposedly it was proven a salesperson in retail has at least a 50% influence on the buyer's decision to buy.
Elan has a very good track record in America. Ripstick skis are very popular, as is the Primetime series. How do you personally perceive Elan in the North American market today? After all, you are the one who paved the way for this success story.
The success of the brand starts in Begunje. But all the innovations have to be presented to the market in the right way. Presentation and approach may vary by market, and the role of the agent in each market is indispensable. Compared to the bigger ski brands, we have often had much less to spend on advertising and marketing. So, we took a different route - we presented our products through the key factors that influence the final sale. Store sales were always very important in the sales cycle, and in-store sales even more so. In addition to the general conditions (weather, economic situation, consumer climate), the success of these depends on activity and engagement in stores and on the likeability and recognition of the brand. The price is also a decisive factor in the vast majority of purchases, especially in the mid and lower price categories which account for more than 50% of the skis sold.
In terms of innovation and graphic design, Elan has made major strides over the last two decades. And this has definitely had an impact as well, even in markets as demanding as North America.
How changeable were American winters?
Perhaps less so than in Europe, but there have always been significant fluctuations in North America as well. The fact is that our business depends on the weather and snow conditions to a large extent. That's why I personally always say that market share is the only true measure of a brand's performance in a particular market. The North American market has shrunk considerably over the last 30 years. In the golden years of the late 1980s and early 1990s, one million eight hundred thousand pairs of skis of all brands were sold in the US and Canadian markets. Today, the number is down to less than one million pairs.


What do you see as the main reasons for the decline?
There are several. The decline in sales is due to more than just the weather and snow. We shouldn’t forget that snowboarding also played its part with a number of potential consumers, especially younger ones, switching to this somewhat newer snow sport. The decline is also a result of decreasing of disposable income for vast majority of US and Canadian population. Skiing is becoming an expensive sport in North America, in fact, it is getting more expensive every year. And it has gotten even worse since COVID.
You must have faced many challenges and critical times in the decades you have spent in the US?
There were quite a few. The most stressful time was in the mid-1990s when Elan was in Croatian hands. That was when I got the call to go back home and continue working in the Head Office in Begunje, or to make sure that business in Canada improved, otherwise, the Canadian branch would be closed. It was a new challenge and a big decision to make. I rolled up my sleeves, took a bite of that sour apple and focused fully on my work in Canada. I decided not to move to Canada completely, but to commute weekly to Montreal which is about 160 kilometres from my home. My daughter was in high school at the time, so it was not a good time to move again.
In Europe there is a general perception that skiing is a fringe sport in the US and Canada. If we look at North America as a whole, this is probably true, but there are areas in North America where skiing is very much present and popular. Colorado, Wyoming, Utah, British Columbia, and Alberta have very popular ski resorts even in and California. Skiing must be very popular there too?
Yes, of course, and let's not forget the north-eastern part of the continent - Vermont, New Hampshire, Quebec... I totally agree. Most of America's top skiers come from famous ski resorts or their surrounding areas – the Lake Tahoe area, Vail, Salt Lake City...
Of course, we too knew how to focus on these American ski resorts. North American markets are somewhat divided into East and West, where the eastern part accounts for around 60% and west for approximately 40% of annual turnover in ski equipment sales. Our sales are (were) also roughly evenly distributed, but this can vary depending on weather and snow conditions on the continent. In my time I experienced good or bad winters across the continent in the same year. Our offices were always located in the Northeast, in New England. In recent years, however, Elan's market share in the West has been growing, thanks in particular to the Ripstick series.
You must have skied all over America in the last 40 years. What are your favorite US and Canadian ski resorts?
There are plenty of amazing ski resorts in the USA and Canada with excellent snow and breathtaking winter scenery, especially in the West. It's hard to say which are my favorites, but let's say these are my top five: Vail and Beaver Creek in Colorado, Park City and Alta in Utah, Heavenly Valley in California, Whistler/Blackcomb in British Columbia and Sunshine Village in Alberta.
What about on the East Coast?
The concept of ski resorts is quite different in the East. These are mainly family-run ski resorts that are much smaller and focused on local skiers and tourists from nearby urban centers. The altitude of these centers, and consequently the length of the ski slopes, is not comparable to the western centers. The snow is also not as amazing as at the ski resorts in the Rockies and elsewhere in the western part of the continent, as the powder is almost non-existent in the East.
Where do you live?
I have been living in Burlington, Vermont, since the beginning. It is a beautiful lakeside town that provides an excellent quality of life. Vermont is also a very nice state. It is hilly, wooded and dotted with lakes. It is about the size of Slovenia with 600,000 inhabitants. Sometimes we say we have more cows than people. Farming is an important industry, especially dairy farming.


But you haven't forgotten Slovenia?
Absolutely not. I've been coming at least twice a year for the last few years. I am still very attached to Slovenia. If my daughter, who is now a grown woman, did not live in America, I would have definitely come back to Gorenjska on the first day of my retirement. In the States, I listen to Slovenian news and read Slovenian newspapers every day.
When I get back home, I enjoy the beauty of Slovenia, good Slovenian food and wine, meet friends of course and I love to play golf.
Is golf now your major recreational field of interest?
Yes, weather permitting. I just regret I didn't start playing earlier. In the spring of 1985, when we had a Canadian sales conference, our agent in Ontario, Canada, gifted me a set of golf clubs that I didn't touch for over 20 years. They were just sitting in my garage. I had a bit of an attitude towards golf at that time. Then, around 2005, I got a gift voucher for three lessons with a golf instructor. I resisted going then too, but like a true son of Gorenjska, I told myself that you can't just throw a gift away, so I cashed it in. Today I realize that this decision was one of the better ones because, in terms of recreation and free time, there is simply nothing better than playing golf, always surrounded by nature and greenery. I should also add that my level of play is about appropriate to my late start in the game. But my motto with golf is to enjoy and don't take the game too seriously. Golf has become one of my favorite free-time activities.
Looking back at the past forty years, how do you feel about the decision to move to the other side of the ocean - was it the right thing to do?
The decision I made back then gave me a completely different view of the world and of Slovenia. I have never regretted the decision I made forty years ago. Would I make the same decision again? Not sure, with the knowledge about North America I have now.
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