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Creating the Equation for Growth
Global Retail Sports Apparel Market
2012–2017:
Market Trends, Profit, and Forecast Analysis
Published: February 2012
Lucintel
1320 Greenway Dr., Suite 870, Irving, TX 75038, USA
Tel: +1-972-636-5056, E-mail: [email protected]
Copyright © Lucintel
Creating the Equation for Growth
Table of Contents
1. Executive Summary
2. Market Definition and Scope
3. Market Overview
4. Global Macroeconomic Overview
5. Market Trends
6. Market Forecasts
7. Emerging Trends
8. Conclusions
About Lucintel
2
Creating the Equation for Growth
Executive Summary
3
• The Global Retail Sports Apparel industry reached an estimated US $XXX billion in
2011 with a CAGR of XX.X% during the last five years (2006–2011).
• The market is forecast to reach an estimated $XXX billion in 2017 with a CAGR of
XX.X% over during 2012–2017.
• The Sports Apparel industry is fragmented, with the top five and top 10 players
accounting for approximately XX.X% and XX.X% shares respectively in 2011.
• Asia Pacific (APAC) emerged as the fastest-growing region with an XX.X% CAGR in the
last five years (2006–2011).
• Consumers appreciate the versatility of athletic apparel, also wearing it for non-athletic
purposes, so they are willing to pay full price for its functionality; also, athletic apparel
is significantly less likely to be offered “on sale” than non-athletic clothing.
• Competitive rivalry is high due to the low switching cost in the Global Retail Sports
Apparel industry.
• Industry players are increasingly capitalizing on “socionomics” – the utilization of
social networking and mobile commerce to boost direct sales.
Creating the Equation for Growth
Table of Contents
1. Executive Summary
2. Market Definition and Scope
3. Market Overview
4. Global Macroeconomic Overview
5. Market Trends
6. Market Forecasts
7. Emerging Trends
8. Conclusions
About Lucintel
15
Creating the Equation for Growth
Global Retail Sports Apparel Industry: Annual Trend
• The market reached an estimated $XXX billion
in 2011 and grew at a CAGR of X.X% during the
last five years (2006–2011) due to:
– Higher volume in sales
– Improvements in average selling price
supported the expansion of the industry
– Increased buying mood of consumers helped
raise sales in retail markets
– AAA
– BBB
– CCC
– DDD
Figure 5.1: Global Retail Sports Apparel
Industry Annual Trend: 2006–2011Key Insights
16
2006 2007 20092008 2010 2011(e)
Ind
ustr
y R
ev
en
ue (
$ B
illi
on
)
XX.X% XX.X%
XX.XXX.X
XX.X
XX.X
XX.XXX.X
Creating the Equation for Growth
New Product Launches in Global Retail Sports Apparel Industry
• Adidas introduced Techfit Powerweb training apparel in the second quarter of 2011.
• Reebok’s Easy Tone apparel with resistance technology and a classic light apparel collection were
released in the first quarter of 2011.
• Adidas Golf launched ClimaCool apparel with Coolmax energy fabric technology in first quarter of
2011
• Adidas released its Terrex feather outdoor jacket during the fourth quarter of 2011.
• Performance Sports Brands debuted its Energy Athletic Golf apparel in 2011:
– Designed to provide a technological advantage for golfers. The patented IonX Ionized Energy Fabric™
features a negatively charged, electromagnetic field embedded into its structure to improve comfort.
• AAA
• BBB
• CCC
• DDD
18
Creating the Equation for Growth
• In November 2011, Adidas Group announced that it signed a share purchase agreement to acquire
Five Ten, a leading performance brand in outdoor action. The total purchase price is $XXX million in
cash at closing and contingent payments, which are dependent on Five Ten achieving certain
performance measures over the next three years:
– The strategic goal behind the acquisition of Five Ten is that Adidas will be even better positioned for its goal
of becoming a leading player in the outdoor market.
• AAA
• BBB
• CCC
• DDD
M&A in Global Retail Sports Apparel Industry
19
Creating the Equation for Growth
• Technological Advances and Innovation
– The ability to create new product technology and other performance-improving features is a key driver for
success in the Sports Apparel industry.
• Demographic Trends
– Growth opportunities in emerging markets are based on large and growing populations whose average
disposable incomes and standards of living are expected to increase
• Increasing sports participation and sports events
• AAA
• BBB
• CCC
• DDD
• Sensitivity of the industry to seasonal conditions
• AAA
• BBB
• CCC
• DDD
Key Drivers Key Challenges
20
Key Drivers and Challenges for Global Retail Sports Apparel Industry
Creating the Equation for Growth
Global Retail Sports Apparel Industry: Regional Trends
• In the Global Retail Sports Apparel
industry, APAC witnessed strong growth
during the last five (2006–2011) years due
to:
– The region’s emerging markets and economies
such as India, Indonesia, and Vietnam
– AAA
– BBB
– CCC
Table 5.1: Regional Growth Rate
ROW XX% XX% XX% XX% XX% XX%
APAC XX% XX% XX% XX% XX% XX%
Europe XX% XX% XX% XX% XX% XX%
NA XX% XX% XX% XX% XX% XX%
Key InsightsFigure 5.2: Global Retail Sports Apparel Industry Regional
Trend 2006–2011 (US $B)
Figure 5.3: Global Retail Sports Apparel Industry Regional
Trend 2006–2011 (%)
21
Ind
ust
ry R
even
ue
(US
$ B
illio
n)
XX XX
XX XX
XX XX XX
XX XX XX
XX
XX
XX
XX
XX
2007
XX
XX
XX
2008
XX
XX
XX
XX
XX
XX
2010
XX
XX
XX
2006
XX
XX
XX
2011(e)
ROW
APAC
Europe
NA
2009
XX% XX% XX% XX% XX% XX%
XX% XX% XX% XX% XX% XX%
XX%
100%
2006
XX%
XX%
100%
2007
XX%
XX%
100%
2008
XX%
XX%
100%
2009
XX%
XX%
100%
XX%
2010
XX%
XX%
100%
2011 (e)
Row
APAC
Europe
NA
Reg
ion
al C
on
trib
uti
on
(in
%)
Creating the Equation for Growth
Key Insights: Regional Trends
• The North American retail sports apparel industry grew at a CAGR of XX.X% during 2006–2011 and
reached an estimated $XXX billion in 2011, driven by:
– Running and outdoor sports related apparel experienced growth in 2011.
– AAA
– BBB
– CCC
• European industry grew with CAGR of XX.X% during 2006–2011 and reached an estimated $XXX
billion in 2011. This growth was driven by:
– Sporting goods retailer sales in Europe turned positive in 2011 although consumer demand in some
peripheral Euro countries and the UK remained challenging.
– AAA
– BBB
– CCC
22
Creating the Equation for Growth
Key Insights: Regional Trends
• APAC markets grew with a CAGR of XX.X% during 2006–2011 to reach an estimated $XXX billion in
2011. This growth was driven by:
– Emerging economies such as India and China
– AAA
– BBB
– CCC
• The ROW retail sports apparel industry grew at a CAGR of XX.X% during 2006–2011 and reached an
estimated US $XXX billion in 2011. This growth was driven by:
– Other regions declined in 2008 but ROW grew by XX.X% due to huge population base with increasing
disposable income.
– AAA
– BBB
– CCC
23
Creating the Equation for Growth
Profitability Trend: Global Retail Sports Apparel Industry
25
• The Global Retail Sports Apparel Market’s
gross profit bounced in 2009 was XX.X%
because economy improved, but decline
slightly in 2010 and 2011 due:
– Due to increasing cost pressure in 2010 and
2011
• The industry’s net profit suffered significantly
in 2009. Net profit for the industry increased
in 2010 and remain flat in 2011:
– Reduction in tax rate in 2010
– AAA
– BBB
• Average revenue per employee for Sports
Apparel industry was $XXX million/employee,
increasing to $XXX million/employee in 2011.
Figure 5.6: Global Retail Sports Apparel Industry
Revenue Per Employee Trend 2006–2011
Figure 5.5: Global Retail Sports Apparel Industry
Profitability Trend 2006–2011 Key Insights
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Gross Profit Operating Profit Net Profit
XX%
XX%
XX%
XX%
XX%
XX%
0.20
0.25
0.30
0.35
Revenue Per employee
XX%
XX%
XX%
XX%
Creating the Equation for Growth13
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