Size of Sports activities Apparel Market

1. 0 Introduction

Sports Outfits Industry caters to the requirements of clothing and shoes or boots for different kinds of athletics. This industry is gathering popularity with each and every passing day. Global scenario has improved now, after advancement of Television and internet. Activities fans from all around the globe want to watch their favourite games on Television set. This pattern has given increase to games played in several countries. To make games more desirable and popular, organisers 're going extra mile to buy designer, stylish and trendy clothes for his or her players.

Figure1 Size of Athletics Apparel market

Source: http://www. fairolympics. org/background/Company_Profiles. pdf

Sports Outfits industry integrate both athletic shoes and garments is exceedingly a labour extensive market. Therefore, majority of the production happen in low income countries. Bulk of the employees with in the supply chains of sportswear are young and feminine and they inevitably work beneath hard terms of employment and underprivileged working condition.

Sports Clothing Industry can be grouped into "A" brand, where "A" bradt identifies companies like Nike, Adidass, Reabok and "B" brand, which less recognizable companies such as Umbro, Fila and izuno, ect. , with regards to the market share of every brand as illustrated in Physique 2.

. Shape2 Market Share

Source: http://www. fairolympics. org/background/Company_Profiles. pdf

2. 0 Characteristics of Industry

The ever before growing and popular sports activities outfits industry is occupied uplifting its turn to project the industry as "Trendy & Stylish" (wto. org, 2010). They are a few of the characteristics of the industry

Sports fans all over the world want to see their favourite players in artist clothes. This displays demand once and for all professional clothing & sneakers.

Health and fitness conscious people want to wear trendy and smart clothes to match their life style. This demonstrates the demand for leisure- clothes.

Efficient sales programs are key to this industry. As better is the way to obtain the apparels, the better will be the demand for the same.

Growth of sports is immediately proportional to the progress of international market for sports activities apparel. This reveals strong chance of the sports activities manufacturers.

The chain in this industry typically will involve the garments designers, manufacturers, sellers and the suppliers.

The range of products includes sportswear, shoes or boots, camping equipments, exercise instruments and clothes, firearms & hunting machines etc.

Sports attire industry is not a local industry, only catering to the local markets. That is an international industry which thrives on the level of popularity of the sports all across the globe.

The industry suits two types of clients- Experts players and leisure centered players.

The better is the quality of sports outfits, technology used the higher would be the demand.

3. 0 Strategic Postures of Key Players

Figure3 Athletic Clothes - Global Market Share

Source: http://www. wikinvest. com/image/Footwear_market_shares. PNG

Figure4 Athletic Shoes or boots - Global Market Share

Source: http://www. wikinvest. com/image/Footwear_market_shares. PNG

Presence of big brands makes this industry more obvious. These days sportswear is known as need somewhat than want. Strategic stances of a few of the popular companies are listed below


Nike is the world's most significant retailer of the sports activities apparel and athletic boots. It uses more than 33, 000 folks from different countries. Year 2009 reported revenues around $19. 20 billion.

The focus on FY09 aims to keep track of efficiency using new Clothing Index. Time 2015 is proclaimed for quality products obtaining the baseline benchmarks. The management is constantly reviewing its clothes policies.


Adidas is a German bases sports activities apparel company company. Company products include men clothing, women clothing, wrist watches and eyewear. Company is second largest apparel wear making company after Nike.

Adidas key competency is based on its customer support, brand recognition, source chain advertising competitive plans.


Reebok International limited is a subsidiary of German Adidas, which makes sports clothes, accessories and shoes.

Reebok clothes strategy focuses on product offering and extreme marketing. The business products be capable of supply to a distinct segment segment of the marketplace. Its promotional strategy also includes celebrity associations.


PUMA is a German multinational company that manufactures high-end sportswear, athletic shoes and lifestyle sneakers.

PUMA is relatively a fresh entrant in this industry, trying to gain some market-share. The business is contending against big brands like Nike and Adidas, which can be old players in the forex market.

4. 0 Latest Trend in the Industry (Direction)


The consumer world has become technology savvy today. Consumers are up to date about the latest solutions available and want to have the latest designs and fashion to display. Sports garments industry keeps working on the changing tendencies and demands in athletics wear to target more sections of the marketplace.

Safety Concerns

Sports clothes is a profession where the safeness of the clothing is given utmost priority. Sportspersons using these clothes need to execute and deliver their best. But at the same time, the clothes they may be using should be made to suit their kind of sports and must include all the safety measures (ibisworld. com, 2010).

Quality Issues

Consumers do not want to settle for not best. Because of the concept of multi-national companies, they feel more pampered these days. Sports Apparel companies are ensuring that the products they are available in the market segments are interacting with the global requirements.

Internationalisation of the Brands

Due to technological advancements Sports Attire industry is turning global now (ibisworld. com, 2010). Companies from different regions and countries are making tailor made products, designer clothes for the players of countries they invest in.

Industry Standards

Industry is moving towards a frontward looking, workable, and targeted industry. Globalisation has resulted in a revolution in all the operating industries. Consumers are more aware about the brands, they want to buy only best products, and they want the best services (ibisworld. com, 2010).


There are two types of customers on the market for the sports clothes industry. First segment is that of the professional players who participate in regional, nationwide and international game titles situations (ibisworld. com, 2010). The next segment comprises of the leisure people, sports activities fan and health mindful people who wish to wear athletics clothes because of their routine agenda.

5. 0 Porter's Five Forces Framework

Figure 5: Porter's Five Forces

Source: http://vectorstudy. com/management_theories/porters_five_forces. htm

Porter's five forces structure gives the platform for the industry analysis and its own strategies. This model originated by Michael Porter in 1979, teacher in Harvard Business University. It helps to discover the competitive strength and elegance of the industry. These forces are thought to be the micro-environment for the industry.

Porter Forces assignments three causes form the horizontal competition and two required from vertical competition (vectorstudy. com, 2010).

Threat of replacement products

There has been a growing tendency of the clients to look for substitute products in case the available product does not fit their budget or displays poor properties.

In the current industry threat originates from local garments suppliers. Customers can swap jogging or running apparel with casual t-shirts and trousers which are available almost in every the stores. However, there is certainly minor replacement for the athletic shoes. Generally, sport shoes are made for the sports' purposes and it is difficult to replace them with other types of shoes, such as boots, shoes or sleepers.

Threat of proven rivals

Due to the impact of Internet and media on the consumers' preferences the brand recognition became very very important to the sport clothes industry. There's a high level of competition among the prevailing players, both at "A" brand level and a "B" brand level. Opponents such as Nike, Adidas and Reebok are almost identical in proportions and in power, which makes competition even tougher. Generally, activities and ft. wears are simply the same in conditions of use that is why companies need to differentiate their products by using diverse strategies and tactics.

Companies like Nike and Adidas usually associated with major sports activities event, each one of these key players trying to relate themselves with certain activities or sport groups and stars in order to attract lovers as customers and be differing from the challengers.

Threat of new entrants

The sports clothing industry is occupied by big players, like Nike and Adidas, to be able to enter the marketplace new companies will require significant investments to perform the same level and more importantly time to achieve brand understanding and reputation, which becomes very complicated for new entrants. Also, for many who try to enter in sports attire industry, the threat comes in the proper execution of mergers and acquisitions form the major players. This cooperation results in increased brand which is recognised by the clients and it includes the best characteristics of both the companies.

In august 2008 sport market was boomed by new combination of Nike Company and Apple, using their new product Nike+ipod touch System (illustrated in Body 6), which allows consumers to evaluate and records the distance and pace of an walk or run ( ). This blend bring new market share for both companies as well as increased the barriers for the new entrants.

Figure 6 Nike+ ipod device Kit

( http://news. ictexpress. com/wp-content/uploads/2009/10/ICTExpress-nikeipod3. jpg)

The bargaining electric power of the suppliers

Suppliers of components, raw materials and services can overwhelm the company. They could won't cooperate with the business and can require high prices for their supplies (vectorstudy. com, 2010). Sportswear industry has many suppliers which lead to the minimal bargaining electricity of suppliers. The activities wears are mainly produced from leather, silicone and cotton which are highly available in the market, which allows makers' companies to change between suppliers with little if any costs, which give additional gain to big companies like Nike and Adidas.

The bargaining electricity of the customers

Customers' regular demand for new, improvised and cheaper products can put the business under pressure. Hazards like changing to a new company, buying swap products or even buying from other options (e. g. online shopping) looms large on the company. For the sportswear industry the bargaining vitality can be viewed in a different way. Those companies who do not have high brand reputation are ruled by the customers' preferences and needs. While big companies like Nike, who already proven their brand name and loyalty of the consumers, have electric power under their suppliers. There were many cases where Nike was unsocial and unethical with their consumers, however this never damaged their sales ( ). A whole lot of studies show that major companies like Nike and Adidas have a higher power under their customers, however their strategy concerns on enhancements, services and futures, which are definitely manufactured in order to satisfy the customers' needs, which show the lifestyle of customers' vitality.

6. 0 PESTLE Evaluation - Macro environment

PESTEL analysis is helpful in understanding the positioning of the industry as complete. It is used in tandem with SWOT evaluation to evaluate individual business situation (marketingminefield, 2010)

Figure 6 PESTLE Analysis

Source: http://tunio. com/strategy/analysis/pestle/

The term PESTLE refers to Politics, Economic, Sociological, Technological, Legal and Environmental triggers.

Changes in Macro-Environment


Government plans, taxation policy of a particular country can affect the stateliest of the industry (marketingminefield, 2010). As mentioned earlier, a sports outfits industry generally operates in international environment. Therefore the big players operating in this industry need to manage the regulations of the united states they are going into.


The overall economic growth of the united states, the per capita income of the individuals, the purchasing power of the potential buyers, and spending inclination of the clients, the loan composition, government taxation and their interest levels form the economic environment (marketingminefield, 2010). Company should consider these issues, both when stepping into any market as well as in an existing market in order to be ready for the changes.


The demographics and life style pattern of the actual consumers form the sociological world. Companies need to assess the response of the world towards athletics and other physical events to select the usage rate with their products. Presently, people are definitely more concern about health aspects; hence more people start to sign up for fitness clubs as well as teach by their own. The above mentioned issues lead to the increase in dependence on sportswear.


Latest technology takes on a great role in the sales of sports activities attire, as players want the best designs in conditions of quality and convenience to execute the best. Every individual player desires to perform the best (marketingminefield, 2010). As was mentioned above, the clear example of technological effect on sportswear is the combo Nike+iPod (Amount 6). Furthermore, technology allowed Nike to make new Shox system, which allows to reduce the chance of injuries. The additional technology in this industry was also developed by Nike, shoe which allows reducing pressure on the legs, knees and back again.


All the regulatory and trading body should approve of the sports company's existence in their place. The company should take extreme care of the legalities with their apparels while producing and distributing. The sportswear companies should take into consideration consumer protection and competition laws and regulations, as well as occupation law. Guidelines of good competition should be considered, for example while companies advertise they do not allow to say something which is not true or to compare company' products using their competitors.


These days' people all over the world have become aware and nurturing towards the surroundings surrounding them. They would like to use only environment friendly products, use bio-degradable products or recyclable goods. Therefore for better consumer response, the making units should take care of the surroundings sentiments of the consumers (marketingminefield, 2010). Environmentally friendly matter for the activities garments industry are transportation which are being used to send out goods, waste disposal and losing packaging ( ).

7. 0 Structural Individuals of Change for Garments Industry

Government Policies

Purchasing Electricity of customers

Increased competition

Growing Population

Inflation Rates

Technological Innovations

New lifestyle and fashion trends

Emerging Economies

7. 0 Attire Industry life-cycle

The Apparel industry life cycle can be effectively split into four levels (porter, 1980)

Introduction Stage

Growth Stage

Maturity Stage

Decline Stage

Figure 7 Levels in Clothing Industry

Source: http://www. yorku. ca/lripley/imUproduct. htm

Introduction Stage

In this level, the new clothing product emerges in the market. The industry in this stage is at its infancy. This is how the industry starts.

Growth Stage

In this stage, as the industry just commences to get, funds are required. During this stage the business can distinguish its products form that of the competitor's products by offering customised deals.

Maturity Stage

In the current stage, the Apparel industry begins producing good dividends. If the business flourishes, then at this time, the industry can retrieve all its purchases. By adding improvements and changes according to customers' demands, sports apparel can be made more appealing for the customers.

Decline Stage

This stage is inevitable for any industry. If the firms keep adding the changes relating to the latest technologies, the merchandise will survive. In case this is not done, then your sales of the products will suffer, revenue will drop and industry will go away from the marketplace.

9. 0 Three situations for long term future

The mass hysteria which was detected during World soccer 2010, provides indications that athletics events have a good presence as well as prosperous future. Sports activities crazy fans wish to watch their preferred players wearing best quality and trendy wears.

Use of latest Technology

Customers today are becoming more fashion and technology conscious. They need the latest technology, reliable goods and proficient customer services. To stay ahead in your competition, the companies must give importance with their Research and Development strategies in future.

Use of Promotional Strategies

A extensively publicised product is also the generally bought product. This statement reflects the significance of promotions and advertising to attract the customers. Future companies will be asked to adopt innovative strategies to advertise their products, such as involve superstars to market their products.

Availability of tailor-made products

Customers have access to internet, making all their jobs done at a faster tempo. They want to buy goods sitting down at home without comprising quality. Brand devotion will be increased if goods are sent to customers according to their requirements at fair prices.

Likely Future Scenario

Products with latest designs, trendy, elegant, environmentally friendly and safe to take care of will entice customers. Also options like online shopping and goods delivery at the entranceway step will attract more customers.

10. Conclusion

Sports Clothes industry is capturing up fast scheduled to technological progress. The popular brand names of this industry are Nike, Adidas and Reebok. Important top features of this industry are brand consciousness programs, heavy advertising and celebrity endorsements. The key to stay forward in the competition is to keep applying innovations to the products and produce tailor-made products for the consumers.

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