Sports Clothing and Footwear

Published by: Key Note Publications Ltd

Published: May. 1, 2009 - 97 Pages

Table of Contents

Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

MARKET TRENDS

Sports Participation and `Sports Leisurewear'

Technology and Fashion

Consolidation in Sportswear Branding

Competition with Designer Brands

Deflationary Pressures

Consolidation in Sportswear Retailing

ECONOMIC TRENDS

Population

Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2004-2008

Gross Domestic Product

Table 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2004-2008

Inflation

Table 1.3: UK Rate of Inflation (%), 2004-2008

Unemployment

Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2004-2008

Household Disposable Income

Table 1.5: UK Household Disposable Income per Capita (£), 2004-2008

MARKET POSITION

The UK

Table 1.6: UK Consumer Expenditure on Sport by Sector by Value at Current Prices (£m at rsp), 2008

Figure 1.1: UK Consumer Expenditure on Sport by Sector by Value at Current Prices (%), 2008

Overseas

2. Market Size

THE TOTAL MARKET

Table 2.1: The UK Market for Sportswear by Sector by Value at Current Prices and Constant 2004 Prices (£m at rsp), 2004-2008

Figure 2.1: The UK Market for Sportswear by Value at Current Prices (£m at rsp), 2004-2008

BY MARKET SECTOR

Table 2.2: The UK Market for Sportswear by Sector by Type of Sport by Value at Current Prices (£m at rsp and %), 2008

Outdoor Pursuits

Football and Rugby

Fitness Activities

Other Sports

Accessories

PARTICIPATION IN SPORT

Table 2.3: Regular Participation in Selected Sports and Fitness Activities (% of adults), 2004, 2006 and 2008

OVERSEAS TRADE

3. Industry Background

RECENT HISTORY

NUMBER OF COMPANIES AND EMPLOYMENT

Table 3.1: UK Manufacturers' Sales of Selected Textile and Leather Products by Value at Current Prices (£m), 2001-2006

REGIONAL VARIATIONS IN THE MARKETPLACE

DISTRIBUTION

Table 3.2: The UK Market for Sportswear by Sector by Distribution Channel by Value (%), 2009

Sports World (Sports Direct International PLC)

JJB Sports PLC

JD Sports Fashion PLC

Blacks Leisure Group PLC

HOW ROBUST IS THE MARKET?

LEGISLATION

KEY TRADE ASSOCIATION

Sports Manufacturers and Retailers Trade Association

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

Table 4.1: Leading Suppliers of Sports Clothing and Footwear to the UK by Country of Origin and Global Turnover ($, E and £), 2009

Nike Inc

Company History

Current Structure

Recent Developments

Financial Results

Table 4.2: Nike Inc — Global Sales and Net Income ($m), Years Ending May 1998-2008

Table 4.3: Nike Inc — Global Sales by Region and Type of Product ($m), Year Ending May 2008

adidas Group

Company History

Current Structure

Recent Developments

Financial Results

Table 4.4: adidas Group — Global Sales by Brand (_m), 2006-2008

Pentland Group PLC

Company History

Current Structure

Recent Developments

Financial Results

Other Companies

Hi-Tec

New Balance

PUMA

Regatta

Russell

Other Major Brands

Retailer Brands

Sport-Specific Brands

Table 4.5: Independent Specialised Suppliers of Sports Clothing and Footwear, 2009

OUTSIDE SUPPLIERS

MARKETING ACTIVITY

Main Media Advertising

Table 4.6: Main Media Advertising Expenditure on Sportswear by Sector by Brand (£000), 2008

Other Marketing Activity

Magazines

Trade Marketing

Sponsorship

Endorsement

Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

6. Buying Behaviour

PURCHASING OF SPORTS CLOTHING

Table 6.1: Sum Spent on Sports Clothing in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2008

RETAILERS USED

Table 6.2: Retailers Used to Buy Sports Goods (% of adults), 2007

PHYSICAL ACTIVITY

Table 6.3: Penetration of Popular Leisure Activities Outside the Home by Sex (% of adults), 2008

ATTITUDES TOWARDS SPORTSWEAR

7. Current Issues

THE ECONOMIC DOWNTURN

DEVELOPMENTS among RETAILers

CHINA'S ROLE IN THE MARKET

ENVIRONMENTAL ISSUES

MAJOR NIKE FOOTBALL CAMPAIGN

8. The Global Market

MARKET SIZE

GLOBAL BRANDS

GLOBALISED PRODUCTION AND DISTRIBUTION

SPORTS MARKETING

LOCAL PREFERENCES

9. Forecasts

THE ECONOMY

Population

Table 9.1: Forecast UK Resident Population by Sex (000), Mid-Years 2009-2013

Gross Domestic Product

Table 9.2: Forecast Growth in UK Gross Domestic Product in Real Terms (%), 2009-2013

Inflation

Table 9.3: Forecast UK Rate of Inflation (%), 2009-2013

Unemployment

Table 9.4: Forecast Actual Number of Unemployed Persons in the UK (million), 2009-2013

FORECASTS 2009 TO 2013

Table 9.5: The Forecast UK Market for Sportswear by Sector by Value at Current Prices (£m at rsp), 2009-2013

MARKET GROWTH

Figure 9.1: The UK Market for Sportswear by Value at Current Prices (£m at rsp), 2004-2013

FUTURE TRENDS

Sports Retailing

Major UK Sports Events

Sports Participation

10. Company Profiles

Adidas (uk) Ltd

Hi-tec Sports PLC

New Balance Athletic Shoes (uk) LTd

Nike (uk) Ltd

Pentland Group Plc

Regatta Ltd

11. Further Sources

Associations

General Sources

Government Sources

Other Sources

Key Note Sources

Abstract

Sportswear has been firmly established as a type of casual clothing or `leisurewear' since the 1980s, and this places it within the broader markets for clothing and footwear. In 2008, consumers spent an estimated £3.25bn on sports clothing and £1.28bn on sports footwear. This represents 8% of their total outlay on clothing and 19% of their spending on footwear.

Although most of the sportswear sold to consumers is bought as leisurewear, and not for playing the sport for which it was originally designed, the inspiration for `sports fashion' nevertheless comes from specific sports and the technical needs of apparel for those sports. A host of sports are involved, grouped broadly into teamsports (e.g. football, rugby), fitness activities (swimming, jogging, working out) and outdoor pursuits. Examples of major markets produced by these activities (whether for `function' or for `fashion') are replica football shirts, tracksuits, running shoes and fleece tops.

Branding is important for both function (participants seek the correct `performance' items) and fashion in sportswear, and two brands have emerged as global leaders. Nike Inc had global sales of $18.63bn in 2008, operating on such a scale that it was able to design new Nike footwear for every sport at the Beijing Olympics. In 2008, Nike bought the UK football brand Umbro. adidas, originally a German football-boot specialist, is now a global brand producing clothing and footwear for numerous sports. Since 2006, adidas Group has also included another global brand, Reebok.

The UK has its own sportswear groups, although, like Nike and adidas, they commission almost all of their manufacturing outside the UK. This makes the UK market almost totally dependent on imports, mainly from the Far East — a structure that has produced vertically integrated sportswear companies (i.e. companies that are active in manufacturing/importing and retailing). The largest of these companies are: Pentland Group, the owner of brands such as Mitre, Berghaus and Speedo, and the controller of the JD Sports retail chain; and Sports Direct, primarily a retailer (through Sports World stores) but also the owner of famous brands such as Dunlop, Slazenger and Kangol.

A nervous few years lie ahead for sportswear companies, as for the global economy in general, but the underlying factors are promising. The run-up to the London Olympics in 2012 should stimulate interest in many sports, with knock-on demand for functional sports apparel. Those in the Baby Boomer generation (now entering their 60s) are keen on a healthy, active lifestyle and have been brought up accepting a casual style of dress, as well as having an interest in a variety of sports.

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