Sports Equipment- 2009 Edition

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An economic recession does not bode well for any leisure-goods market, since purchasing of these products can usually be postponed while consumers concentrate on the basics of existence. Sports equipment falls into this category. Many items of equipment have already been struggling to maintain their markets because consumers are shifting their exercise regimes away from traditional `equipped' sports (e.g. golf or tennis) and towards `pure' fitness activities (e.g. health-club membership or jogging).The UK sports-equipment market is extremely fragmented and difficult to define, but Key Note values it at £1.1bn in 2008. This represents only direct spending on personal equipment by consumers, not spending by clubs or leisure centres. Demand has essentially been static for 5 years: the market was worth a similar £1.12bn in 2004, although it peaked at £1.2bn in 2006. Domestic manufacturing of equipment is similarly static at around £300m per year, most of which is exported. Imports have a growing share of the UK market, with China having increased its share of UK imports from under 10% to more than 30% in the 2000s, overtaking the US as the leading supplier.A downturn in 2008 and 2009 was inevitable, given the depth of the recession and its impact on disposable income. However, generalisations are difficult because of the vast range of sports, outdoor activities and indoor games involved in the market. Golf is the outstanding sport for consumer spending on equipment, accounting for more than a third of the market. Home fitness equipment (e.g. domestic treadmills) has moved into second place, overtaking fishing equipment, but the market also includes dozens of small sectors, such as watersports, `extreme' sports and balls for team sports. There is even fragmentation within the equipment produced for each sport (for example, cricket requires bats, balls and protection, not counting the separate markets for appropriate footwear and cricketing `whites').Given this fragmentation, manufacturing of sports equipment offers few economies of scale. Only a handful of companies compete across several sports. The dominance of the golf sector means that its leading manufacturers are among the largest sports-equipment companies, major names in a competitive global market including Callaway, Titleist, Srixon and Wilson. The most intriguing operator in the UK at present is Sports Direct International, which has managed to `vertically integrate', owning the UK's largest chain of sports shops (Sports World) as well as acquiring famous equipment brands such as Slazenger, Dunlop and Karrimor.The immediate prospects for the market are not favourable, pending the return of consumer confidence. However, the major sporting events (e.g. the Olympics and Commonwealth Games) that are scheduled to take place in the UK should stimulate enough interest to restore growth. Key Note forecasts that the UK market for sports equipment will decline in value in 2009 and 2010 but will then return to growth between 2011 and 2013.  

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Sports Equipment- 2009 Edition

  1. 1. Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email!Sports Equipment- 2009 EditionPublished on July 2009 Report SummaryAn economic recession does not bode well for any leisure-goods market, since purchasing of these products can usually bepostponed while consumers concentrate on the basics of existence. Sports equipment falls into this category. Many items ofequipment have already been struggling to maintain their markets because consumers are shifting their exercise regimes away fromtraditional `equipped sports (e.g. golf or tennis) and towards `pure fitness activities (e.g. health-club membership or jogging).The UK sports-equipment market is extremely fragmented and difficult to define, but Key Note values it at £1.1bn in 2008. Thisrepresents only direct spending on personal equipment by consumers, not spending by clubs or leisure centres. Demand hasessentially been static for 5 years: the market was worth a similar £1.12bn in 2004, although it peaked at £1.2bn in 2006.Domestic manufacturing of equipment is similarly static at around £300m per year, most of which is exported. Imports have agrowing share of the UK market, with China having increased its share of UK imports from under 10% to more than 30% in the 2000s,overtaking the US as the leading supplier.A downturn in 2008 and 2009 was inevitable, given the depth of the recession and its impact on disposable income. However,generalisations are difficult because of the vast range of sports, outdoor activities and indoor games involved in the market. Golf is theoutstanding sport for consumer spending on equipment, accounting for more than a third of the market. Home fitness equipment (e.g.domestic treadmills) has moved into second place, overtaking fishing equipment, but the market also includes dozens of smallsectors, such as watersports, `extreme sports and balls for team sports. There is even fragmentation within the equipment producedfor each sport (for example, cricket requires bats, balls and protection, not counting the separate markets for appropriate footwear andcricketing `whites).Given this fragmentation, manufacturing of sports equipment offers few economies of scale. Only a handful of companies competeacross several sports. The dominance of the golf sector means that its leading manufacturers are among the largestsports-equipment companies, major names in a competitive global market including Callaway, Titleist, Srixon and Wilson. The mostintriguing operator in the UK at present is Sports Direct International, which has managed to `vertically integrate, owning the UKslargest chain of sports shops (Sports World) as well as acquiring famous equipment brands such as Slazenger, Dunlop and Karrimor.The immediate prospects for the market are not favourable, pending the return of consumer confidence. However, the major sportingevents (e.g. the Olympics and Commonwealth Games) that are scheduled to take place in the UK should stimulate enough interest torestore growth. Key Note forecasts that the UK market for sports equipment will decline in value in 2009 and 2010 but will then returnto growth between 2011 and 2013. Table of ContentSports Equipment- 2009 Edition Page 1/5
  2. 2. Find Industry reports, Company profilesReportLinker and Market StatisticsExecutive Summary1. Market Definition REPORT COVERAGEMARKET SECTORSMARKET TRENDSA Stable MarketThe Trend Towards‘Pure’ Fitness The Quest for PerformanceGolf Retains Leadership Fragmented Retail MarketECONOMICTRENDSPopulationTable 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2004-2008Gross DomesticProductTable 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2004-2008InflationTable1.3: UK Rate of Inflation (%), 2004-2008UnemploymentTable 1.4: Actual Number of Unemployed Persons in the UK (million),2004-2008Household Disposable IncomeTable 1.5: UK Household Disposable Income per Capita (£), 2004-2008MARKETPOSITION The UKTable 1.6: UK Consumer Expenditure on Sport by Sector by Value at Current Prices (£m at rsp and %),2008Overseas2. Market Size THE TOTAL MARKETTable 2.1: The UK Consumer Market for Sports Equipment by Value at Current Prices andConstant 2004 Prices (£m at rsp), 2004-2008 Figure 2.1: The UK Consumer Market for Sports Equipment by Value at CurrentPrices and Constant 2004 Prices (£m at rsp), 2004-2008 BY MARKET SECTORTable 2.2: The UK Consumer Market forSports Equipment by Sector by Value at Current Prices (£m at rsp and %), 2000, 2004, 2006 and 2008GolfHomeFitnessFishing Outdoor Accessories Racket Sports Other EquipmentFootball and Other ‘Ball’ Sports IndoorGamesWatersportsSkates and Skateboards/Extreme Sports UK PRODUCTION AND OVERSEAS TRADEUK Production andImports Table 2.3: UK Production and Imports of Sports Goods by Value (£m at msp), 1999-2007 By Product SectorTable2.4: UK Manufacturing of Sports Goods by Sector by Value (£m at msp), 1999-2007 Table 2.5: UK Imports of Sports Goods bySector by Value (£m), 1999 and 2004-2007 ExportsTable 2.6: UK Exports of Sports Goods by Sector by Value (£m and%), 2006 and 2007 Sources and Destinations Table 2.7: UK Imports of Sports Goods by Country of Origin by Value (%), 1999,2006 and 20083. Industry Background RECENT HISTORYNUMBER OF COMPANIES Table 3.1: Number of UK VAT- and/or PAYE-BasedManufacturers of Sports Goods by Turnover Sizeband (£000, number and %), 2008EMPLOYMENT Table 3.2: Number of UKVAT- and/or PAYE-Based Manufacturers of Sports Goods by Employment Sizeband (number and %), 2008REGIONALVARIATIONS IN THE MARKETPLACE DISTRIBUTIONTable 3.3: Retailers Used to Buy Sports Goods (% of adults), 2007 HOWROBUST IS THE MARKETLEGISLATION KEY TRADE ASSOCIATIONSFederation of Sports and Play Associations OutdoorIndustries Association4. Competitor Analysis THE MARKETPLACE GlobalisationSpecialisation FragmentationMARKET LEADERSTable 4.1:Selected Leading Brands of Sports Equipment in the UK by Sector, 2009Table 4.2: Leading Multiple Brand Owners in the UK Marketfor Sports Equipment, 2009 Sports Direct International PLCAmer Sports Head Other Multiple Brand Owners Golf BrandsFitness Brands Fishing BrandsOther BrandsOUTSIDE SUPPLIERSMARKETING ACTIVITYMain Media AdvertisingTable4.3: Main Media Advertising Expenditure on Sports Equipment by Sector (£000), 2006-2008Other Marketing ActivityExhibitions5. Strengths, Weaknesses, Opportunities and Threats STRENGTHSWEAKNESSES OPPORTUNITIESTHREATS6. Buying Behaviour PARTICIPATION IN SPORT Table 6.1: Regular and Occasional Participants in Leading Sports and OutdoorActivities in the UK (% of adults and 000 adults), 2008 EQUIPMENT OWNERSHIP AND PURCHASING Table 6.2: Ownership ofKeep-Fit Equipment and Other Sports Equipment (% of adults), 1998, 2003, 2006 and 2008Table 6.3: Purchasing of Keep-FitEquipment and Other Sports Equipment in the Last 12 Months (% of adults), 2008Table 6.4: Purchasing of Keep-Fit Equipment andOther Sports Equipment in the Last 12 Months by Amount Spent (% of adults), 2008DEMOGRAPHICS OF EQUIPMENTOWNERSHIPTable 6.5: Ownership of Keep-Fit Equipment and Other Sports Equipment by Sex, Age, Social Grade, HouseholdIncome and Age of Children at Home (% of adults), 20087. Current Issues8. The Global Market MARKET OVERVIEWEUROPEAN COMPARISONSSports Equipment- 2009 Edition Page 2/5
  3. 3. Find Industry reports, Company profilesReportLinker and Market Statistics9. Forecasts THE ECONOMYPopulationTable 9.1: Forecast UK Resident Population by Sex (000), Mid-Years 2009-2013GrossDomestic ProductTable 9.2: Forecast Growth in UK Gross Domestic Product in Real Terms (%), 2009-2013 InflationTable 9.3:Forecast UK Rate of Inflation (%), 2009-2013 UnemploymentTable 9.4: Forecast Actual Number of Unemployed Persons in the UK(million), 2009-2013FORECASTS 2009 TO 2013Table 9.5: The Forecast UK Consumer Market for Sports Equipment by Value atCurrent Prices (£m at rsp), 2009-2013MARKET GROWTHFigure 9.1: The UK Consumer Market for Sports Equipment byValue at Current Prices (£m at rsp), 2004-2013FUTURE TRENDS The RecessionSports RetailingSports Events and theMedia InnovationSports Participation10. Company Profiles Acushnet Europe Ltd Amer Sports UK Ltd Callaway Golf Europe Ltd Head UK LtdSports DirectInternational PLC11. Further Sources AssociationsGeneral Sources Government Sources Key Note Sources Understanding TGI DataNumber,Profile, PenetrationSocial Grade Standard RegionKey Note ResearchThe Key Note Range of ReportsSports Equipment- 2009 Edition Page 3/5
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