Sporting Goods Manufacturing

Sporting Goods Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture sporting and athletic goods, including sports and fitness equipment. Major companies include Acushnet Holdings, BRG Sports, Callaway Golf, ICON Health & Fitness, and Russell Athletic (all based in the US), as well as Amer Sports (Finland), Decathlon (France), Head (Netherlands), and Mizuno (Japan).

COMPETITIVE LANDSCAPE

Sporting goods manufacturers align their distribution, sales, and marketing strategies with the demands and trends of the sporting retail section. Major big-box chains have gained leverage over suppliers as they acquire smaller retailers that have fallen into bankruptcy. Large sports equipment manufacturers are increasingly selling products directly to consumers through their own websites, which allow them to offer lower prices or reap higher profit margins by bypassing retailers. The industry competes with vertically integrated retailers that manufacture and sell their own products; companies may also lose business to outlets that sell used sports equipment.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product categories for manufacturing include gym and exercise equipment account for about 30% of the industry revenue; golf equipment account for about 10%; recreational equipment account for about 20%; and other athletic goods account for about 40%. Additional products are equipment for sports such as baseball, basketball, football, hockey, and tennis.