Microsoft Word - Sports gecorr final 2005.doc

Sports and

camping

goods

EU MARKET SURVEY 2005

SPORTS AND CAMPING GOODS

Compiled for CBI by:

Fair Trade Solutions

In collaboration with

Searce

April 2005

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Photo courtesy: Searce

CONTENTS

REPORT SUMMARY 5

INTRODUCTION

PART A: EU MARKET INFORMATION AND ACCESS REQUIREMENTS 11

1 PRODUCT CHARACTERISTICS

1.1 Product groups

1.2 Customs/Statistical product classification

2 INTRODUCTION TO THE EU MARKET

3 CONSUMPTION

3.1 Market size

3.1.1 The EU Sports market

3.1.2 Germany

3.1.3 France

3.1.4 United Kingdom

3.1.5 Spain

3.1.6 Italy

3.1.7 The Netherlands

3.1.8 Sweden

3.1.9 The 10 new EU countries

3.2 Market segmentation

3.3 Consumption patterns and trends

4 PRODUCTION

4.1 EU Production of Sports Goods

4.2 Production in the selected countries

4.2.1 Germany

4.2.2 France

4.2.3 United Kingdom

4.2.4 Spain

4.2.5 Italy

4.2.6 The Netherlands

4.2.7 Sweden

4.2.8 The 10 new EU countries

5 IMPORTS

5.1 Total imports

5.1.1 Total imports by the EU

5.1.2 Germany

5.1.3 France

5.1.4 United Kingdom

5.1.5 Spain

5.1.6 Italy

5.1.7 The Netherlands

5.1.8 Sweden

5.1.9 The 10 new EU countries

5.2 Imports by product group

5.2.1 The 10 new EU countries

5.3 The role of developing countries

5.3.1 The 10 new EU countries

6 EXPORTS 64

6.1 Total exports by the EU

6.2 Exports by the selected countries

6.2.1 Germany

6.2.2 France

6.2.3 United Kingdom

6.2.4 Spain

6.2.5 Italy

6.2.6 The Netherlands

6.2.7 Sweden

6.2.8 The 10 new EU countries

7 TRADE STRUCTURE

7.1 EU trade channels

7.1.1 Trade channels in the selected countries

7.1.2 Germany

7.1.3 France

7.1.4 United Kingdom

7.1.5 Spain

7.1.6 Italy

7.1.7 The Netherlands

7.1.8 Sweden

7.1.9 The 10 new countries

7.2 Distribution channels for developing country exporters

8 PRICES

8.1 Price developments

8.2 Sources of price information

9 EU MARKET ACCESS REQUIREMENTS

9.1 Non tariff trade barriers

9.1.1 Product legislation

9.1.2 Market requirements

9.1.3 Occupational health and safety

9.1.4 Environmentally sound production

9.1.5 Packaging, marking and labelling

9.2 Tariffs and quotas

PART B: EXPORT MARKETING GUIDELINES: ANALYSIS AND STRATEGY 88

10 EXTERNAL ANALYSIS: MARKET AUDIT 90

10.1 Market developments and Opportunities

10.2 Competitive analysis

10.3 Sales channel assessment

10.4 Logistic requirements

10.5 Price structure

100

10.6 Product Profiles

102

11 INTERNAL ANALYSIS: COMPANY AUDIT

104

11.1 Product range and design

104

11.2 Product standards, quality and production capacity

107

11.3 Logistics

108

11.4 Marketing and sales

109

11.5 Financing

111

11.6 Capabilities

111

12 DECISION MAKING

112

12.1 SWOT Analysis

112

12.2 Strategic Options & Objectives

113

13 EXPORT MARKETING

114

13.1 Matching products and the product range

114

13.2 Building up a relationship with a suitable trading partner

116

13.3 Pricing and drawing up an offer

118

13.4 Handling the contract

120

13.5 Sales promotion and organisation

122

APPENDICES 125

1 DETAILED HS CODES

126

2 DETAILED IMPORT/EXPORT STATISTICS

128

3 USEFUL ADDRESSES

138

3.1 Standards organisations

138

3.2 Sources of price information

139

3.3 Trade associations

140

3.4 Trade fair organisers

142

3.5 Trade press

143

3.6 Other useful addresses

145

4 LIST OF DEVELOPING COUNTRIES

147

5 USEFUL INTERNET SITES

148

Update of EU Market Survey Sports and Camping Goods (December 2003).

REPORT SUMMARY

This survey profiles the EU market for sports and camping goods, which includes all

hardware articles (i.e. equipment and accessories) used for active sports, snow sports,

water sports, fishing, camping and outdoor activities. It emphasises those items which are

relevant to exporters from developing countries and highlights seven selected markets

within the EU.

In Part A, up-to-date market information is given on consumption, production, imports/

exports, trade structure, prices and the major EU market access requirements. As an

exporter, you need this basic information to draw up your Market Entry Strategy (MES) and

Export Marketing Plan (EMP) in order to penetrate the competitive EU market successfully.

To assist you here, CBI has developed Part B, where the Export Marketing Guidelines

provide relevance and a methodology for an external, internal and SWOT analysis. These

analyses are needed for your decision - whether to export or not. Furthermore, essential

guidelines are given on using your marketing tools effectively to build up this export

venture. The appendices at the end of the survey include contact details of trade

associations, trade press and other relevant organisations.

The survey excludes bicycles, motorbikes, cars, boats, caravans, sports bags, sports

clothing and sports footwear. The sports goods, covered in this survey are categorised

into the following product groups:

Product groups

 Fitness/gym  Rackets

 Golf  Sports gloves

 Snowsports  Table tennis

 Skates  Team/field sport

 Balls  Camping goods

 Watersports  Fishing tackle

 Horse riding

Sports participation

The sports goods market in the selected EU countries (Germany, France, United Kingdom,

Italy, Spain, The Netherlands and Sweden), is closely related to sports participation. Total

participation in these countries averaged 62 percent in 2003, with France having the

largest rate of sports enthusiasts (66%) and southern countries having rates below 60

percent. Regular participation (i.e. at least once a week) averaged 41 percent, or 107

million adults in these countries, with many people being member of one of the 537,157 clubs.

The traditional forms of sport, such as swimming and football still have many participants

in most EU countries. Competitive sports such as badminton, squash and some teamsports

suffered from a shift to individual soft sports (e.g. fitness, jogging, golf) and recreational outdoor

activities (e.g. trekking, climbing). On the other hand, football remains popular and recently

some teamsports have regained the interest of young people of school age via media coverage.

Consumption

Total sports goods retail sales in the EU25 member countries was estimated at € 11,492

million in 2003, of which € 9,700 million (or 84%) was achieved in the seven selected

countries, led by Germany and France. The EU is the second largest market for sports and

camping goods in the world after the USA and is very fragmented due to the wide variety

of sports played. Camping goods and equipment for horse riding are not included in these

figures. In 2003, EU sales of camping goods (excluding rucksacks and seats for camping)

valued € 1,120 million, led by the UK and Germany. EU sales of horse riding equipment

are more difficult to measure, but are estimated to be worth over € 490 million.

Although, like many other major markets, growth levels have stalled or fallen back, rising

participation by women, older people and increasingly middle-aged people have helped

protect this market from more serious reversals. In 2004, the EU sports goods market

started to rise again after virtually no change between 2002 and 2003. In the

long run, the sports goods market will be more fragmented and will be stimulated by:

 Concern about health and appearance, driving increasing participation levels.

 New sporting activities e.g, board sports, extreme forms of snow and

watersports, Nordic walking

 The ongoing increase in the number of retail outlets selling sports goods.

Production

In 2003, there were 3,200 production companies in the selected countries, the majority

of which produce specialised and high quality sports goods, each country having its own

speciality. Production in the EU25 valued around € 3.51 billion and is controlled by a large

number of small EU manufacturers, especially in Italy and Spain. Italy is major producer

of ski boots, in-line skates, skis and watersports equipment, while fitness, camping and

watersports equipment were sizeable categories in Spanish production. Fitness equipment

is the main category in Germany, skis in France, whilst in the United Kingdom golf is the

largest category.

According to the WFSGI (World Sports Federation), around 80 percent of most sports

goods is outsourced in Asia, led by China and Taiwan. With rising standards of living and

labour costs in Asia, EU suppliers are also looking for other developing countries, e.g.

North Africa with cheaper production costs. More co-operation between the selected

countries and Eastern Europe is expected, as many of these countries are themselves now

part of the EU.

Imports

The EU is one of the leading importers of sports goods in the world, and in 2003 accounted

for 909 thousand tonnes with a value of € 5,219 million. Total EU15 imports increased by

27 percent in volume and 7 percent in value. The 10 new EU countries accounted for a

further € 303 million of imports. The United Kingdom is the largest EU importer,

accounting for 19% of total EU volume imports: 172 thousand tonnes, with a value of

€ 964 million. The UK is followed by Germany (18% of EU imports) and France (16%).

Product groups

In 2003, fitness and team/field sports together accounted for 57 percent by volume (34%

by value) of the EU15 total. In terms of value, other sizeable product groups were

equipment for golf, snowsports, camping goods, fishing tackle, balls, watersports, skates

and horse riding equipment, most of which are of relevance to exporters from developing

countries. Between 2001 and 2003, equipment for team/field, balls, golf, fitness,

camping goods and fishing tackle grew more than other groups.

Main supplying countries

Intra-EU supplying countries: In 2003, 40 percent of EU imports by value came from

other EU countries with Germany representing 15 percent of intra-EU sports goods supplies

followed by France (15%) and Italy (14%).

Extra-EU supplying countries: The greater part, or 60 percent of EU imports, came

from non-EU sources, of which 27 percent came from China. In 2003, EU imports from

China were € 1,409 million, or 424 thousand tonnes. The huge investments in technical

and design expertise from EU manufacturers in China and improving communications

have stimulated this expansion. The international focus continues to be on China, who

are hosting the Olympic Games in 2008. The role of China in the supply of sports goods

will continue to grow. Taiwan (fitness), South Korea (fishing tackle), USA (golf and fitness),

Romania (skates) and other Eastern European countries are sizeable non-EU suppliers.

Developing countries

Next to China, suppliers from developing countries include Pakistan (balls and gloves),

Thailand (skates and watersports) and India (saddlery). Between 2001 and 2003, the

volume of imports from developing countries to the EU rose by 41 percent from 342 to

483 thousand tonnes, valued at € 1,833 million in 2003. The largest increases were in the

supplies (by volume) from China (+44%), Pakistan (+46%), India (+37%), Vietnam (+72%),

Philippines (+54%), Brazil (+100%), South Africa (+46%) and Turkey, while less was

imported from Indonesia and Morocco.

Trade channels

Large manufacturers have their own distribution networks and sometimes sell direct to

consumers by their concept stores or via factory outlets. The big brand manufacturers,

such as Nike and Adidas, use exclusive importers (and own stores) in each country, which

are engaged in sales and service. The actual distribution is controlled by their distribution

centres in Belgium, The Netherlands and Germany.

The majority of sports goods continue to be supplied from manufacturers through

importers/buying groups or through large retailers to consumers. In 2003, two-thirds of

total retail sales of sports goods in the selected countries was achieved by 26,000

specialist outlets, most of which were linked to one buying group. The two major groups,

Intersport (focus on 'expertise in sports') or Sport 2000 (focus on 'sports and lifestyle')

together represented over 30 percent in the EU. In the 1990s, many small family-owned

sports shops were forced to join, buying in large volumes in order to obtain similar

discounts to sports chains. Chain stores and specialist stores connected to a buying group

are prevalent in middle and northern EU countries, while smaller specialists’ shops are typical

in Italy and Spain. A further 10,000 outlets sell sports goods in the 10 new EU countries.

The share of chain stores (multiples, megastores or category killers), grew to an average

share of 24 percent of EU sports retail sales in 2003 and are expected to rise further. They

are dominant in France (Décathlon, Go Sport), UK (JJB, JD Sports, Blacks), Netherlands and

Sweden. The sports specialist retailers are particularly strong in Italy and The Netherlands

and were less significant in Germany and Spain, where department stores (Karstadt and El

Corte Inglés) were important sports goods retailers. Other non-specialists such as

hypermarkets (e.g. Carréfour, Metro) and discounters (e.g. Aldi) continue to expand their

ranges. In the UK, sales by mail order companies was 9 percent of UK sports retail sales.

Opportunities for exporters in developing countries

The sports equipment market is clearly a global market, and customers are prepared to

source the right items from anywhere in the world. Sometimes smaller suppliers are best

placed to meet specific requirements. The sustained demand for equipment for fitness

(weights, dumbbells, in-home trainers), horse riding, golf, new boarding and gliding activities

will offer opportunities for equipment and accessories. Here, most exporters concentrate

on the (OEM or ODM) production of outsourced equipment for EU manufacturers.

Alternatively, exporters could also consider supplying sports goods direct to EU importers.

In general, exporters must look for opportunities in areas in which they are strong, i.e.

labour intensive sports goods, which are not too complex to manufacture and where brands

still are of minor importance, such as:

Fitness Æ Simple in-home training equipment, small exercise equipment and martial

arts equipment.

Teamsports Æ Balls: footballs (normal - promotional or special balls e.g. for calcetto or

futsal), street basketballs, coloured beach volleyballs, rugby balls, waterpolo-

balls or medicine balls.

Æ Gloves, protective equipment (e.g. head or mouth guards, knee/ankle pads),

bats, sticks other team/field equipment (e.g. nets, goals, dome markers, disc

cones, starting blocks).

Golf Æ Balls (also for promotional purposes), bags, putting mats, exercise sets,

nets and golf carts.

Watersports Æ Swimming caps, headbands, spectacles, goggles, skimming boards, beach

mats, accessories, belts and wallets.

Camping Æ Tents, mattresses, lanterns, knives, compasses, money belts, picnic mats,

ropes.

Horse riding Æ Saddles, harnesses, whips, stirrups.

Other opportunities can be found in specific niche markets e.g. in the ethnic minority

population or in young people with a disability, who sometimes need special or modified

sports equipment. Women also often require equipment which differs from equipment

specifically designed for men.

Threats and difficulties for exporters:

Î The sports article should be well finished, made precisely according to importers'

specifications, and meet quality standards of the demanding EU market, where strict

safety standards are also required.

Î Production capacity, keen pricing and fast delivery are needed to establish reliable

relationships with importers or other buyers. Good communication (e-mail and

personal contact) and flexibility are vital.

Î The exporter must comply with International Codes of Conduct, meaning that the

use of child labour is not allowed. Potential buyers and auditors from the World

Federation of Sporting Goods Industry (WFSGI) may wish to inspect.

Further market research

This EU Market Survey serves as a basis for further market research: after you have

read the survey it is important to further research your target markets, sales channels

and potential customers in order to properly carry out your external analysis, and to

know how to keep control of your marketing tools.

Market research depends on secondary data (data that has already been compiled and

published) and primary data (information that you collect yourself). An example of

secondary data is this EU Market Survey. Primary data is needed when secondary data

is not sufficient for your needs as, for example, when you are researching which type of

consumer might be interested in your sports goods.

Sources of information include (statistical) databanks, newspapers and magazines,

market reports, (annual) reports from trade associations, along with shops in target

countries, products or catalogues from your competitors, and conversations with

suppliers, specialists, colleagues and even competitors. After you have collected your

information you should analyse it.

In order to assess the attractiveness of a market, you should use a Research Action

Plan and develop a classification or score system. Detailed information on market

research can be found in CBI’s manual ‘Your guide to Market Research’.

INTRODUCTION

This CBI survey consists of two parts: EU Market Information and Market Access

Requirements (Part A), and Export Marketing Guidelines (Part B).

Market Survey

Part A

EU Market Information and Market Access Requirements

EU Market Information (Chapters 1-8)

Product characteristics

Introduction to the EU market

Consumption and production

Imports and exports

Trade structure

Prices

EU Market Access Requirements

(Chapter 9)

Quality and grading standards

Environmental, social and health & safety

issues

Packaging, marking and labelling

Tariffs and quotas

Part B

Export Marketing Guidelines: Analysis and Strategy

External Analysis (market audit)

(Chapter 10)

Opportunities & Threats

Internal Analysis (company audit)

(Chapter 11)

Strengths & Weaknesses

Decision Making

(Chapter 12)

SWOT and situation analysis:

Target markets and segments

Positioning and improving competitiveness

Suitable trade channels and business partners

Critical conditions and success factors (others than mentioned)

Strategic options & objectives

Export Marketing

(Chapter 13)

Matching products and product range

Building up a trade relationship

Drawing up an offer

Handling the contract

Sales promotion

Chapters 1 to 8 of Part A profile the EU market for Sports and Camping Goods. The

emphasis of the survey lies on those products which are of importance to exporters from

developing countries. The major national markets within the EU for those products are

highlighted. Furthermore, statistical market information on consumption, production and

trade, and information on trade structure and opportunities for exporters is provided.

Chapter 9 subsequently describes the requirements which have to be fulfilled in order to

gain access to this market. It is furthermore of vital importance that exporters comply with

the requirements of the EU market in terms of product quality, packaging, labelling and

social, health & safety and environmental standards.

After having read Part A, it is important for an exporter to analyse target markets, sales

channels and potential customers in order to formulate export marketing and product

strategies. Part B therefore aims to assist (potential) exporters from developing countries

in their export decision- making process.

After having assessed the external (Chapter 10) and internal environment (Chapter 11),

the (potential) exporter should be able to determine whether interesting export markets

exist for his company. In fact, by matching external opportunities and internal capabilities,

the exporter should be able to identify suitable target countries, market segments and

target product(s) within these countries, and possible trade channels to export the

selected products (Chapter 12).

Chapter 13 subsequently describes the marketing tools which can be of assistance in

successfully achieving the identified export objectives.

The survey is interesting for both new exporters as well as exporters already engaged in

exporting (to the EU market). Part B is especially interesting for more experienced

organisations exporting to the EU for the first time and exporters looking for new EU

markets, sales channels or customers.

New exporters are advised to read this publication together with the CBI’s Export

Planner, a guide that shows systematically how to set up export activities and the

interactive tool on the CBI website “Export Marketing Plan”.

PART A

EU MARKET INFORMATION AND

EU MARKET ACCESS REQUIREMENTS

1 PRODUCT CHARACTERISTICS

1.1 Product groups

The products covered in this survey are hardware articles used for active sports (individual

and team sports), snow sports, water sports, fishing, horse riding, camping and outdoor

activities (e.g. trekking, climbing). Larger items of equipment usually bought by

institutions (e.g. sports schools), such as fitness equipment, are also included, although

many of the figures available only show sales to consumers. All these hardware articles,

mostly referred to as sports goods, are categorised into the following groups:

Product groups Sports goods/equipment

Fitness/gym - exercise bikes, treadmills, steppers, elliptical trainers, free

weights, dumbbells;

Racket sports - tennis, badminton and squash rackets;

Table tennis - bats, balls, nets, tables;

Balls - leather/non-leather, inflatable/non-inflatable; tennis, football,

hockey, cricket, volleyball, basketball etc.;

Team/field sports - equipment and accessories for cricket, polo and most other team

sports such as hockey sticks, baseball or cricket bats, equipment

for basketball (nets and stands), handball, volleyball, rugby etc;

Skates - ice skates, roller skates, in-line skates, skateboards, kickboards,

wakeboards, carveboards;

Golf - clubs, balls, accessories, carriage (trolley, carts and bags);

Snowsports - skis, bindings, boots and accessories;

Watersports - sailboards, waterskis, surfboards, diving, snorkelling, spectacles,

swimming caps etc.;

Sports gloves

- gloves used for baseball, cricket, ice hockey and other sports;

Camping goods - tents, airbeds, mattresses, sleeping bags, camping accessories,

climbing equipment, other equipment for recreational outdoor

activities (cooking gear, lanterns etc.);

Fishing tackle - rods, hooks, reels, nets.

Horse riding - saddlery and animal harnesses and accessories such as leads,

knee pads.

Team/field sports include a variety of small to very large items of equipment (e.g. nets for

volleyball, stands for basketball, goals for hockey, football etc.) for team sports, which are

played indoors as well as outdoors. This should not be confused with outdoor equipment,

such as hiking or climbing equipment, which are meant for recreational outdoor activities

and not for outdoor sports. Consequently, in this survey and in trade statistics, this type

of outdoor equipment falls into the category of camping goods.

Bicycles, motorbikes, cars, motor boats, sailing boats, yachts, caravans, campers, sports

bags, sports clothing and sports footwear are not covered in this survey. In some cases,

reference is made to sports clothing and sports footwear, which were two fast growing

sectors in the sports market in the 1990s. As sportswear is increasingly used as

leisurewear, most specialist sports stores in EU countries emphasise sports clothing and

footwear in their product range. This has been at the expense of the sales of sports

equipment. Detailed information on sports clothing can be found in the Market Survey

'Outerwear', whereas information on sports footwear is given in the Market Survey

'Footwear'.

Definition of sports participation

The COMPASS project was undertaken by the EU sports federations in 2000 to create a

uniform platform for monitoring sports participation in EU countries, since methodologies to

measure participation varied from country to country. Compass defines sports as follows:

'Sports' are all forms of physical activity which, through casual or organised participation,

aim at expressing or improving physical fitness and mental well-being, forming social

relationships or obtaining results in competition at all levels.

The total sports participation of each country is broadly defined and includes all regular

and occasional participants aged 6 years or older. Regular sports participation refers in

most countries to adults (over 16 years) and excludes walking.

Regular: Played 60 or more times in a year and refers to club members and to

people practising sports for competition at a regular and high frequency.

Occasional: Played less than 60 times in a year (i.e. less than once a week).

In this survey, the lists of sports or activities, which are considered important in each of the

selected countries, are contained within the following major categories:

Individual activities - golf, racket sports, skiing, athletics, darts, pétanque, martial arts

Fitness activities - aerobics, dance, fitness, weight/working out, taebo, spinning, running

Team sports - football, cricket, rugby, basketball, hockey, volleyball, polo

Watersports - swimming, surfing, waterskiing, scuba diving, canoeing, rowing

Outdoor activities - hiking (over 3 km), rambling, climbing, horse riding, fishing.

In France the term gliding sports ('sports de glisse') is often used and refers to various

kinds of new sensational sliding activities, popular among younger people. In some

countries they are referred to as extreme sports. These activities can be:

 On snow, e.g. snowboarding, carving, parabolic skiing, curling.

 On water, e.g. sailing, (wind, kite or body) surfing, waterskiing, rafting.

 On the street, e.g. in-line skating, roller skating, skateboarding, kick- or carveboarding.

 In the air, e.g. delta flying, parachute jumping or paragliding.

1.2 Customs/statistical product classification

The classification system used for both Customs and statistical purposes in EU member

countries is the Harmonised Commodity Description and Coding System (HS), which is

used worldwide. The EU has a set of its own internal codes, referred to here as

PRODCOM, which broadly mirror the HS codes. Table 1.1, from Eurostat, gives a list of

the main codes for sports and camping goods. The more detailed HS code groups

covered in this survey are given in Appendix 1. The major groups are given below:

HS Code Product group PRODCOM Code

9506 Sports equipment 3640

95061 Snowsports 3640113

95062 Watersports 3640120, 351212

95063 Golf 3640143

95064 Table tennis 3640145

95065 Rackets 3640146

95066 Balls (all types) 3640148

95067 Skates 3640115

950691 Fitness/gym 3640130

950699 Team/field sports 3640149

420321 Gloves for exercise sports 3640141

4201 Saddlery for horse riding 1920110

6306 Camping goods (inc outdoor equipment) 17402

63062 Tents 1740223

63064 Airbeds 1740227

630699 Miscellaneous camping goods (inc in 1740227)

94043 Sleeping bags 1740243

9507 Fishing tackle (rods, hooks and reels) 3640153/55

2 INTRODUCTION TO THE EU MARKET

The European Union (EU) is the current name for the former European Community. Since

January 1, 1995 the EU has consisted of 15 member states. Ten new countries joined the

European Union in 2004. They are the Czech Republic, Estonia, Slovakia, Cyprus, Latvia,

Lithuania, Malta, Slovenia, Poland and Hungary. Negotiations are in progress with a

number of other candidate member states to join in 2007. In this survey, the EU will

sometimes be referred to as the EU25, sometimes the former EU15, depending on the

context. Specific reference is also made to the “10 new EU countries”.

Population and economy

In 2003, the EU25 population totalled 458 million, which is over 3 times the Japanese

and 1.7 times the US population. The population of the selected EU markets in this

survey represents 328 million people with over 130 million households. The EU has an

ageing population structure with the proportion of 45+ olds rapidly increasing, especially

in Spain, Italy and Germany. The densely populated areas in the EU are located in The

Netherlands, Belgium, the Northwest of Germany, the Southwest of England and in

northern Italy.

Table 2.1 Population and GDP of selected and new EU countries, 2003

Countries Population Age 15-64 GDP (€)

million

estimation 2003

elected EU

countries

Germany 82.4 67.0 24,407

France 62.4 65.1 24,318

UK 60.3 66.3 24,495

Italy 58.1 66.9 23,699

Spain 40.3 68.0 19,455

The Netherlands 16.3 67.8 25,291

Sweden 9.0 65.2 23,717

New EU countries

Poland 38.6 70.0 9,727

Czech Republic 10.2 70.9 13,884

Hungary 10.0 69.0 12,292

Slovakia 5.4 70.8 11,761

Lithuania 3.6 68.4 9,904

Latvia 2.3 69.2 8,931

Slovenia 2.0 70.6 16,183

Estonia 1.3 67.5 10,877

Cyprus 0.8 67.4 14,149

Malta 0.4 68.5 6,263

Currencies €, UK £, SKr, DKr, CZK, EEK, SKK, CYP, LVL,

LTL, MTL, SIT, PLN, HUF

Exchange (2003) € 1 = US$ 1.13

Source: The World Factbook 2004, Insee

Within Western Europe – covering 15 EU member countries, Iceland, Liechtenstein,

Norway and Switzerland – more than 20 million enterprises are active. Small and

medium-sized enterprises (SMEs) accounted for the lion’s share. In 2003, the

average turnover per enterprise of SMEs and large enterprises amounted to € 600

thousand and € 260 million respectively.

EU harmonisation

The most important aspect of the process of unification (of the former EC countries),

which affects trade, is the harmonisation of rules in the EU countries. As the unification

allows free movement of capital, goods, services and people, the internal borders have

been removed. Goods produced or imported into one member state can be moved

around between the other member states without restrictions. A precondition for this free

movement is uniformity in the rules and regulations concerning locally produced or

imported products. Although the European Union is already a fact, not all the regulations

have yet been harmonised. Work is in progress in the fields of environmental pollution,

health, safety, quality and education. For more information about harmonisation of the

regulations visit AccessGuide, CBI’s database on European non-tariff trade barriers at

http://www.cbi.nl/accessguide

Monetary unit: Euro

On January 1, 1999, the Euro (€) became the legal currency within twelve EU member

states: Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, The

Netherlands, Spain and Portugal. Greece became the 12th member state to adopt the

Euro on January 1, 2001. In 2002, circulation of euro coins and banknotes replaced

national currency in these countries. Denmark, United Kingdom and Sweden have

decided not to participate in the Euro, at least for the time being.

The most recent Eurostat trade statistics quoted in this survey are from the year 2003.

In this market survey, the € is the basic currency unit used to indicate value. For more

general information on the EU market, please refer to the CBI’s manual Exporting to the

European Union.

Trade Statistics

Trade figures quoted in this survey must be interpreted and used with extreme caution.

The collection of data regarding trade flows has become more difficult since the

establishment of the single market on January 1, 1993. Until that date, trade was

registered by means of compulsory customs procedures at border crossings. Since the

removal of the intra-EU borders, this is no longer the case.

Statistical bodies such as Eurostat cannot now depend on the automatic generation of

trade figures. In the case of intra-EU trade, statistical reporting is only compulsory for

exporting and importing firms whose trade exceeds a certain annual value. The threshold

varies considerably from country to country, but it is typically about € 100,000. As a

consequence, although figures for trade between the EU and the rest of the world are

accurately represented, trade within the EU is generally underestimated.

Furthermore, the information used in this market survey is obtained from a variety of

different sources, e.g. national sports trade associations or trade press, using different

definitions. Therefore, extreme care must be taken in the qualitative use and

interpretation of quantitative data, both in the summary and throughout the text, as also

in comparisons of different EU countries with regard to market approach, distribution

structure, etc.

Table 2.2 Exchange rates of EU25 currencies in US$, 1998-2005

Country Currenc

1999 2000 2001 2002 2003 Feb 05

EU € 1.063 0.920 0.900 0.946 1.125 1.297

Denmark Dkr 0.14 0.12 0.12 0.13 0.15 0.17

Sweden Skr 0.12 0.10 0.10 0.10 0.12 0.14

UK GB£ 1.61 1.52 1.44 1.50 1.63 1.88

Poland PLN 0.25 0.23 0.24 0.24 0.26 0.33

Estonia EEK 0.07 0.06 0.06 0.06 0.07 0.08

Czech Rep CZK 0.03 0.03 0.03 0.03 0.04 0.04

Hungary HUF 0.004 0.004 0.003 0.004 0.004 0.005

Slovakia SKK 0.02 0.02 0.02 0.02 0.03 0.03

Lithuania LTL 0.25 0.25 0.25 0.27 0.32 0.38

Latvia LVL 1.72 1.64 1.59 1.61 1.75 1.85

Slovenia SIT 0.006 0.005 0.004 0.004 0.005 0.005

Cyprus CYP 1.85 1.61 1.56 1.64 1.92 2.22

Malta MTL 2.5 2.3 2.2 2.3 2.6 3.0

Source: http://www.xe.com

The Selected Markets

This survey profiles the EU market for “Sports and Camping Goods” in which seven

selected markets within the EU are highlighted. The countries selected for this survey

are Germany, France, The United Kingdom, Italy, Spain, The Netherlands and Sweden,

which are the largest consumers of sports goods in the European Union. In 2003, they

accounted for over 84 percent of total EU25 purchases of sports goods, with Germany

and France both taking a large share of over 20 percent each. The United Kingdom is the

largest consumer of golf and fitness equipment, while France and Italy sets worldwide

trends in snow sports and racket sports. Developing countries supplied 35 percent in value

and 53 percent in volume of sports and camping goods to the EU in 2003, most of which

were to these seven countries.

All seven selected countries within the EU have a high proportion of people who are

active in sports. The emphasis on sports participation is less on competitive team sports

and more on leisure and individual sports. With more leisure time, people tend to

exercise or undertake outdoor activities in order to stay fit. Demographic changes mean

that by the year 2020, the proportion of 45+ olds in most countries is expected to be

more than 40 percent of their total population. Besides outdoor activities, fitness and

golf are continuing to gain in popularity as well.

As far as the 10 new EU countries are concerned, the countries of Eastern Europe have

a history of considerable state support for sport. Hence there is a well established

market for a wide range of different sports equipment. Many of these countries also

have established production facilities for sports equipment eg fitness equipment in

Hungary.

3 CONSUMPTION

3.1 Market size

Sports participation

The use of sports equipment is closely related to participation in various kinds of sports.

Over 60 percent of the population in the selected EU countries, representing over 200

million people, participate in some form of sporting activity. Germany had the largest

number of sports participants (i.e. 50 million), which can be mainly attributed to its large

population size. France had the highest rate of sports enthusiasts (52% of the French

population), compared to Italy and Spain, which had the lowest rates as is shown in Figure

3.1. These total rates include regular (at least once a week) and occasional (less than once

a week) participation by people of all ages.

Regular participation in the selected countries was lower with an average rate of 41

percent, representing 107 million adults (16 years or older) doing a sporting activity at

least once a week. Many of these people were member of one of the 537,000 sports

clubs in the seven countries. In this case, France and the United Kingdom had the

highest rates of regular participants (see table in figure 3.1).

These figures are in contrast to a Eurobarometer poll published in 2004 which highlighted

the fact that Northern Europeans tend to do more sport and exercise than their southern

counterparts, as the following table indicates:

Table 3.1 % of EU population practising sport at least once a week

Swed Holland UK EU15 Germ Spain France Italy

% pop.

Source: Eurobarometer, 2004

Link between health and exercise

The health lobby and medical profession in the EU have been active in all countries in

promoting the benefits of maintaining fitness levels and an active lifestyle. The least

physically active are in southern EU countries where more people tend to smoke.

However, in northern EU countries, middle-aged people in particular have tended to stop

smoking but, perhaps as a substitute, have started to eat more. To compensate they do

some form of fitness or exercise. Italians have become more health aware as well. While

smoking is still a major public health concern, it is predicted that the number of people

who are significantly overweight, particularly children, may well be the greatest public

health concern in the future. This is already a major issue in the USA.

Individuals rather than teams

Sports are done on a competitive, individual or recreational basis. People in most

northern countries prefer to participate in individual (sports) activities, which demand

less in terms of time or commitment. Participation in most sports – with some notable

exceptions, have either declined or reached a plateau, with more consumers devoting

their time to general fitness – swimming, walking or working out in a gym – rather than

involving themselves in organised competitive sport.

Here, many sports clubs have suffered, lacking staff who do not want to commit time to

these voluntary activities. Consolidation seems inevitable, with more clubs (e.g. swimming,

tennis, basketball, handball and other team sports) closing down or merging with another

club. However, consumers also seek out the sociability and relaxing environment of health

clubs where they carry out their individual fitness activities in the company of others.

Major sports undertaken in selected EU countries

The traditional forms of sport, such as swimming and football still have large numbers of

participants in most EU countries (see table 3.2). Competitive sports such as badminton,

squash and some of the teamsports have suffered from a shift to individual less

competitive sports and recreational activities such as golf and jogging. Note cycling is very

popular in many EU countries, particularly France, Netherlands, Spain, Italy, but it has

been excluded from this table as sales of cycles and cycling accessories are not included

in this survey.

Fitness has been popular in all northern EU countries and is increasingly recognised by

young and older people in all selected countries. In southern EU countries, outdoor

activities e.g. climbing and wintersports, remain popular. People find these activities

sociable. Doing things with friends and family remains important in southern EU

countries.

Table 3.2 Top sports in the selected EU markets in 2003, by club membership

and participation

Country Sports

Germany

Gym, football, tennis, riding, fishing, table tennis, swimming,

keep fit, walking

France Football, tennis, judo, riding, basketball, swimming, walking,

jogging, camping, keep fit, fishing.

United Kingdom Gym, football, golf, tennis, fishing, walking/trekking,

swimming, jogging.

Spain Football, swimming, basketball, golf, jogging, fitness,

hunting/riding, judo, fishing

Italy Football, swimming, wintersports, tennis, fitness, watersports,

volleyball, basketball, fishing, judo

Netherlands Football, swimming, fitness, tennis, jogging,

rollerblading/skating, fishing

Sweden

Football, skiing, gymnastics, floorball, athletics, riding, fishing

Source: TGI, Stat. Bundesamt, INSEE, ISTAT, Inébase, CBS, Stat Sweden

Participation by gender

Men in most countries are strongly represented in regular participation (especially in

team sports), although the number of women participating either occasionally or

regularly in sporting activities continues to increase (see table 3.3). Fitness, aerobics,

dancing, running, swimming, gymnastics, volleyball, skating and horse riding were the

most popular activities among women in all selected EU countries. In northern EU countries,

contrary to some of the trends in male competitive sports, women’s football is becoming

popular. This has in part been stimulated by the intense media coverage which football

receives on a regular basis. Women are also taking up golf in large numbers. Sweden has

the highest proportion of sportswomen among the selected countries.

Table 3.3 Women's sports participation in the selected countries

2003 Total Participation Regular Participation

million ratio

women / men

million ratio

women / men

Germany

23.0

46%

10.5

40%

France

19.3

47%

11.5

44%

17.1

43%

11.0

40%

Italy

14.5

44%

5.7

38%

Spain

10.0

42%

3.6

36%

Netherlands 4.7 47% 2.3 40%

Sweden

3.0

49%

1.5

50%

Source: TGI, National Statistics of the selected countries

Participation by age

An increasing proportion of the older population are taking up sporting activities, particularly

in Sweden, Germany and the United Kingdom. This is seen as one explanation for increasing

life expectancy. The sports in question tend to be fitness related or “softer” sports such as

golf. The younger age groups in most countries continue to participate

more in football, (street) basketball, volleyball (Italy and Spain) or other team sports.

Young people are interested in new individual activities, all of which are strongly related

to lifestyle in terms of clothing, brands, celebrities and music, such as:

 Adventurous outdoor activities (e.g. rafting, climbing, delta flying, parachute jumping,

paragliding, diving, surfing)

 Alternative snowsports (carving/snowboarding, curling, skeleton)

 Extreme sports (skateboarding, cross skating, wake or carveboarding) and street

sports.

3.1.1 The EU Sports Market

The total European Sporting Goods Market in the selected EU countries – taking into

account all three sectors (clothing, footwear and equipment) was € 37,000 million in

2003, of which € 9,700 million related to sports and camping goods equipment in the

selected countries. Although sales in 2003 were marginally lower than 2002, mainly due

to continuing falls in Germany, 2004 is forecast to be a better year. Greater sales of

winter sports equipment, team/field, fitness and golf products are driving this growth.

The figures have been adjusted from previous surveys so that the figure for sports goods

includes all categories including fishing tackle, but not camping goods or saddlery items

for horse riding. Those figures are shown separately. Some countries also include cycling

in their figures for sporting goods. For consistency, these figures have also been excluded.

As is shown in figure 3.2, Germany, despite its falls in recent years, is still the largest

market, worth € 2,475 million in 2003. France is close behind on € 2,380 million, 4.8

percent higher than 2003. The figures shown are best estimates based on the available

sources. Between 2001 and 2003, with the exception of Germany and The Netherlands,

the consumption of sports goods still rose in other countries, especially in the United

Kingdom and Italy with growth rates of 9.2 percent and 5.9 percent respectively.

The EU market for sports goods is more fragmented than the other major world markets.

Total retail sales of sporting goods equipment in the EU15 member countries was

estimated at € 10,970 million in 2003, of which € 9,700 million (or 88%) was achieved

in the seven selected countries. Over 40 percent of this was from Germany and France.

The EU is the second largest market for sports goods in the world following the USA. A

further € 522 million of sporting goods were sold in the 10 new EU countries, the two

major markets being Poland and the Czech Republic.

The average consumption per capita on sports goods in the EU15 in 2003 was € 29, which

was higher in Sweden, France and Germany as is shown in figure 3.2. Consumption levels

in the 10 new EU countries was significantly lower at € 7 per capita. However, growth rates

here, albeit slowing in the last couple of years, are still much higher than in the EU15.

Between 2001 and 2003, consumption in the selected countries increased by just 1 percent.

Although growth rates have reduced in the review period, consumer expenditure has

continued to be stimulated in most countries by rising levels of participation in sports

generally, by women, older people and increasingly middle-aged people. The outdoor market

was strong. Fitness products continued to grow everywhere, particularly in Italy. A wider

range of outlets are now selling sporting equipment, but perhaps most significantly,

growth is driven by the media and celebrity endorsement of various sports, particularly

new, more fashionable sports. Many commentators are speculating that media coverage

for some sports, particularly football, is reaching saturation point. However, opportunities

still exist in many other sports eg basketball, for growth via more media coverage.

3.1.2 Germany

Germany is the largest EU market for sports goods. In 2003, German retail sales were

€ 2,475 million, representing 22 percent of the EU25 market. German households spent

€ 30 per capita on sports goods, just above the EU15 average.

As is shown in figure 3.3, sales of sports goods decreased between 2001 and 2003. This

was mainly because of the economic recession in Germany which affected all sectors, and

was more prolonged than for other EU countries. The main sectors are fitness, golf and

outdoor sporting activities. New snowsports such as carve skiing and snowboarding are

also popular.

There are clear regional differences in sports participation, partly due to sports culture

and disposable income. The former East Germans do not spend money on sports and are more

active in e.g. swimming, athletics and table tennis.

The market performance is also poor due to increased sales of cheap equipment by discounters

(Aldi, Tchibo). On the other hand, in-home fitness, golf, snowsports and outdoor equipment

remain popular by the more affluent Germans. Technical innovations and (new) material, with

a view to achieving more comfort in playing, especially for older consumers taking up sports

later in life, is the principal route for new product development in Germany.

3.1.3 France

France has a high level of participation in sport within the selected EU countries and is the

second largest market for sports goods in the EU with retail sales in 2003 valued at € 2,380

million, representing 21 percent of the EU25 market.

The French per capita expenditure of € 38 was second highest after Sweden (see figure

3.2). Cycling is the most popular sporting activity in France. As the country offers mountains,

coasts and a favourable climate, people enjoy many kinds of water, snow, street and

outdoor (gliding) activities, often referred to as ‘sports de glisse’.

As is shown in figure 3.4, sales of sports goods in 2003 rose by 5 percent since 2001.

The popularity of outdoor activities, in-line skating, snowboarding, fitness, golf,

watersports (canoeing, surfing, sailing) and horse riding combined to provide a good

market performance. Sales of tennis rackets declined due to falling demand. In 2003,

equipment for snowsports, fitness and outdoor activities formed the largest segments in

the French sports goods market. Young French sports enthusiasts are switching to more

extreme and energetic sports. In general, serious sports consumers prefer performance

and quality, and are concerned about how a product has been made (e.g. environmentally

sound, no child labour), rather than choosing the lowest price.

3.1.4 United Kingdom

The United Kingdom was the third largest EU market for sports goods. In 2003, UK retail

sales were € 1,710 million, 15 percent of the EU25 market. The per capita expenditure was

slightly below its major competitors, but the overall performance was better, the market

being 9 percent above its position in 2001. The UK sports goods market is highly

fragmented, as there are many sports in the UK such as snooker, darts and cricket, all

requiring their own specific equipment and accessories. Unlike other EU countries, sports

participation levels have ceased to increase. Sports such as swimming, racket sports,

snooker, darts, bowls and some team sports (cricket, hockey) have become less popular.

Golf is still the most popular sport in the UK, representing approximately 30 percent of

the market in 2003. The other key activity, walking, has recovered much more quickly

than expected from the Foot and Mouth disease outbreak in 2001.

Young people are interested in 'fashionable' extreme sports such as abseiling or

snowboarding, and street sports such as skating. As is shown in figure 3.5, sales of

sports goods in the UK have not been affected by recession as much as their European

counterparts. Future growth is expected to be slower. A growing demand is forecast for

equipment for golf, in-home fitness, football, and outdoor activities. Fishing is one of the

most popular pastimes in the UK and continues to be an important market.

3.1.5 Spain

In 2003, Spanish retail sales of sports goods was € 1,070 million, representing 9 percent

of the EU25 market. Per capita consumption was € 27, just below the EU15 average of

€ 29. The sports goods market grew by 4 percent between 2001 and 2003.

Sports participation by Spanish people is on the increase due to a growing concern about

health. This has stimulated sports goods sales. The International Olympic Committee

commented in early 2005 of the significant progress of sport in Spain as Madrid hopes to

host the 2012 Olympics.

Football continues to be the most popular sport, but fitness and aerobic activities are

increasing at a fast rate. Fitness equipment represented one third of the market (see fig

3.6) of all sports goods sold in Spain. Basketball enjoys high participation. Volleyballs and

balls for other teamsports such as rugby and polo will increase in demand. Swimming has

high participation levels, but is gradually declining as Spaniards have become interested

in individual and recreational activities, especially climbing, fitness, outdoor activities and

golf. Other sports which have seen increases are fishing and street sports, while tennis

and surfing has declined.

3.1.6 Italy

Italy is a large market for sportswear, but a smaller

market for sports goods. In 2003 Italian sports goods

sales were valued at € 1,260 million. Compared to the

other EU markets, Italian households are the lowest

spenders on sports goods, with a per capita expenditure

of € 22 in 2003.

The sports goods market in Italy has grown faster than

other European markets in recent years because of

new sports and a growing popularity for recreational

activities, undertaken not only by young people, but

also by middle-aged and older people.

Between 2001 and 2003, sales of sports goods

increased by 6 percent from € 1,190 to € 1,260 million

(see figure 3.7). Team/field equipment represented

over one third of the market, followed by snowsports

and skating. The market for fitness equipment is also

healthy, as is the market for watersports.

A recent survey by AC Nielsen for Assosport indicated that the number of people playing

tennis had fallen by 40 percent since 1997. Skiing and horse riding, both traditionally

strong Italian sports, had also fallen. The indoor personal regime activities of dance and

martial arts - both of which increased their number of practitioners by 45 percent over

the same time frame - were major winners. Trekking and hill walking saw numbers of

adherents boosted 35 percent, while muscle development was also a favoured exercise,

with 31 percent more people taking part.

Football is still the most popular sport. A large number of the newcomers to sport were

women and also men over 40. A significant number had apparently been won over to

some form of physical exercise, including swimming, aqua-gym activities, bodybuilding

and aerobics.

3.1.7 Netherlands

The Netherlands is the sixth largest market for

sports goods in the EU. In 2003, retail sales were

valued at € 405 million, representing 3.5 percent of

the EU25 market. Consumption per capita of € 25 is

below the EU15 average.

More than half of all athletes are members of one or

several of the approximately 30,000 clubs, football

and tennis clubs being the most popular. Roughly 1.5

million people opt for a different form of organisation.

They hike, jog, swim, cycle, ride mountain bikes or

motocross, either by themselves or in small groups.

Another 1.5 million people maintain their fitness and

health through weekly visits to a gym. A lot of sporting

and leisure activities take place in unorganised

associations. Skiing and skating are popular activities

of this type and also, among younger people, surfing,

skateboarding, snowboarding and rock-climbing. However, in the past few years, both

the number of hours per week in which people engage in sports and the amount of

physical activity engaged in during leisure time have fallen.

Equipment for team sports, fitness, in-line skating and watersports formed the largest

categories. Golf is reported to be a fast growing sport in The Netherlands. As is shown in

figure 3.8, sales of sports goods fell by one percent between 2001 and 2003, mainly

because of the recession which has affected much of mainland Europe.

3.1.8 Sweden

In relation to its low population, Sweden is a large

market for sporting goods. Valued at € 400 million in

2003, with a per capita expenditure of € 41, the

Swedes are an outdoor nation who participate in a

wide range of sporting activities.

Virtually half of the entire market relates to golf

products. Golf is a popular sport in Sweden, but

football is the largest participation sport. Ice hockey

is popular, as is “Bandy”, a team game using sticks

which is similar to hockey. Floorball is also popular.

Outdoor pursuits are particularly popular. Hence,

sports such as fishing and horse riding have many

followers in Sweden.

The fitness boom around Europe

has also been shared in Sweden and fitness equipment

is a large market. As you would expect, wintersports,

particularly skiing and skating, have many followers.

The Swedish sports goods market has grown by 4 percent between 2001 and 2003. It is

forecast to continue to grow at similar rates in the near future.

3.1.9 The 10 new EU Countries

The 10 new EU countries differ from the EU15 in two key aspects. Firstly, consumers spend

significantly less on sports equipment in these countries than the rest of the EU. This in

itself presents opportunities for developing country exporters, as there are still significant

growth opportunities in markets where many of the consumers already are interested in or

participate in a variety of sports, without spending much on equipment. The other aspect

is that a number of the new EU countries are used as production centres for some multi-

national sports goods companies. This presents a challenge to developing country exporters,

where some commentators are observing production moving closer to home markets.

Table 3.4 Consumption of sports goods in the 10 new EU Countries, value in € million

2003 2004* Population

(millions)

Consumption

per capita €

Czech Republic

200

214

10.2

Poland 150 161 38.6 4

Hungary 40 43 10.0 4

Slovakia 50 54 5.4 9

Slovenia 30 33 2.0 15

Lithuania 20 22 3.6 6

Latvia 15 16 2.3 7

Estonia 8 9 1.3 6

Cyprus 6 6 0.8 8

Malta 3 3 0.4 8

Total 522 561 74.6 7

*Estimate

Source: Sporting Goods Intelligence, Trade Estimates

Total sales in 2003 were € 522 million, representing just 4.5 percent of EU25 sales (see

table 3.4). The Czech Republic (€ 200 million) and Poland (€ 150 million) were the most

significant markets in terms of size. However, per capita rates were high in the Czech

Republic, but very low in Poland. Individual product group sales are difficult to estimate,

but according to apparent consumption figures from Eurostat, the largest product groups

were fitness, team/field, fishing, balls and skating. To give some specific examples:

- the Hungarian market for sports and fitness equipment has entered a new phase where

participation in sports and fitness activities is growing widely. New sports are becoming

popular such as golf, skiing and tennis. Consequently consumers are seeking more and

better quality equipment. Hungary has a large number of fitness centres and spas, as well

as traditional state supported sports clubs, which constitute a market for professional

quality exercise equipment.

- In Poland, the market for sporting goods is divided into two major segments: the brand

market and the general sporting products market. Recently, demand has moved toward

more expensive, better quality articles. It created a market for specialty sporting goods

stores, with well-trained sales staff. Less expensive equipment is sold through

supermarket chains.

- Czechs have a history of participating in organized mass sports such as hiking, skiing,

canoeing, and cycling; various collective ball sports, such as football, volleyball, basketball

and handball; and gymnastics. Nowadays, many hikers, bikers, canoeists, and skiers are

not organized. 1 million Czechs spend weekends down-hill and cross-country skiing every

winter. The number of registered skiers has remained stable at 30,000. While the numbers

of registered athletes in most traditional sports have dropped during the past four years,

a variety of new sports has been attracting new members. Aerobics, fitness, floorball,

snowboarding and skateboarding; or sports that were considered bourgeois during the

Communist regime, such as golf and horse riding, have flourished. The sports that have

experienced the biggest membership drop are traditional team ball sports with the

exception of football.

3.2 Market segmentation

Wintersport equipment, fitness, golf articles, team/field equipment, skates, and camping

goods form the largest categories within the sports goods market. Some products such as

motorized fitness equipment require high investments in R&D or in complex manufacturing

systems. These products will not be covered in this section. On the other hand, developing

countries dominate the supply of more simple equipment for fitness (e.g. small trainers, mats,

dumbbells), team/field sports, balls, gloves and camping goods. Many of these sports goods

are OEM or ODM (Original Designed Manufacturing) supplies to EU manufacturers.

For each sports, relevant to exporters, an EU overview in terms of participants, clubs and

major brands are described. A breakdown of equipment within some of these sports will

be illustrated in one sample country. It should be noted here that these breakdowns may

differ from country to country.

Fitness/Gym

30 percent of all fitness equipment in the world is sold in Europe. The people worldwide

who are members of a club exceed 60 million. Fitness and body-building continue to

take an increasing share of sporting activity in Europe, partly because of their fashionable

image and partly because they can be undertaken at times to suit the participant.

The main reasons for taking it up were to stay healthy, relax and improve one’s figure or

physique. In 2003, women accounted for more than half of all fitness participants in all

selected EU countries. Keep fit exercise, aerobics, yoga and, more recently, self-defence

activities such as taebo and martial arts (karate, taekwondo) have become popular among

women. Power yoga, which works by boosting body shape and wellness is a trend from the

USA. The contents of a power yoga kit are items which developing country exporters may

feel equipped to produce. It consists of a bag, mat, strap and yoga block.

Major activities undertaken by men are body-building, working out, weight training and

martial arts. Over 100,000 people in Spain are members of a judo club. A further 60,000

were in a karate club. There has also been a large increase in the number of participants in

the 40+ age group. Since fitness is increasingly recommended by doctors and

physiotherapists, especially for overweight people, the number of both men and women

participating is expected to continue to increase in the coming years. In addition, demand

by certain ethnic minorities in most selected countries is growing as well.

In 2003, the number of registered participants in the selected EU countries was over 20

million people (see table 3.5). Note, these figures only relate to those who are members

of commercial clubs. So, for example in the UK, there are a further 2,400 fitness facilities

in the public sector, accounting for a further 2.5 million members. Those who participate

in fitness activities on a regular (weekly) basis do so in fitness centres and clubs. There

has been a growing number of frequent participants, who have become more educated

and enthusiastic, increasing the demand for fitness and training equipment for in-home use.

Exercises at home can be done cheaply and quickly, without spending time going to the

gym. However, there are indications this increase is levelling off.

Table 3.5 Fitness clubs and value of equipment in € million, 2003

Commercial

Clubs

Participants

registered

Sales € million

Germany

6,500

5,600,000

400

France

2,500 3,500,000 400

United Kingdom

2,000 3,600,000 350

Italy

6,000 3,000,000 180

Spain

3,500 2,000,000 120

Netherlands

1,700 1,500,000 70

Sweden

1,000 900,000 60

Total

23,200 20,100,000 1,580

Source; SAZ, International Health, Racket & Sportsclub Association, Eurostat, Trade estimates (2004)

The estimated value of the fitness equipment market in the selected countries is € 1,580

million. This includes both home fitness and equipment in gyms and clubs. Germany,

France and United Kingdom are the largest EU markets for fitness equipment, as is shown

in table 3.5. 25 percent of French people who participate in sport engage in fitness activity.

The German fitness equipment market reached in 2003 a total value of € 400 million, of

which perhaps € 260 million was for in-home use. Some sports clubs are now open 24

hours a day, responding to demand from busy people who want to find time to stay fit.

The German market overall has been static compared with the previous year. There has

been significant price pressure in the market. Any volume gains have been at the expense

of heavy price discounting, as retailers such as Aldi have started selling the higher value

items alongside the smaller, portable items. Cycle shops have also started to sell exercise

equipment. Internet sales are also hitting specialist retailers hard.

Elliptical trainers accounted for 25 percent of all fitness equipment sold in Germany in

2003 (see fig 3.10) and along with the treadmills and steppers were the fastest growing

segments. Within these segments, electronically controlled equipment requires top quality

after sales service, as well as extremely knowledgeable sales staff. Market leaders for

larger items are Kettler (Kettler, HKS, Metro), Bremshey (Tunturi, UNO) and Aicon (Proform,

Healthrider, Weider, Weslo). Other well-known brands include Unifit, Life Fitness,

Technogym, Icon Fitness, Lifestyle and Reebok. Consumers spend on average € 1,500

for such equipment.

Within the more simple types of treadmills and trainers, there is a growing demand for back

boards, belly exercisers (e.g. benches or hoops), biceps trainers or smaller home multi gyms.

These portable items are relatively cheap and are often purchased on impulse. However,

consumers are looking for higher quality home fitness equipment which approaches the

quality found in studios.

Free weights are another large segment in the German fitness market (16%). There is an

increased demand from women, who are convinced that long-term slimming is achieved by

the regular use of dumbbells. The segment 'other equipment' includes many items, ranging

from AB Toners, rollers, exercise mats, resistance equipment (e.g. small hand, thigh

exercisers), jumping ropes, trampolines and fitness/martial arts related accessories (e.g.

protective equipment, punch bags, flexabands). Within most of these segments, brands

are still of minor importance.

A combination of a slow EU economy and a greater emphasis on fitness at all ages has

produced an upsurge in high-fitness, low-cost sports, meaning running and walking.

Nordic Walking has been developed as a new form of fitness training by Finnish

sporting manufacturer, Exel, in co-operation with sports analysts and medical

professionals. This recent phenomenon is rapidly becoming one of Europe’s main outdoor

activities, with an estimated 3.5 million people doing it regularly, urged on by some 3,000

instructors. The sport is defined as ‘hiking with special poles’ and provides gentle and

easily-controllable exercise, so it presents a promising way of responding to the needs of

beginners (or people with a stronger build) who view the sport as an ideal way to enter a

new world of fitness, wellness and body shaping.

Nordic Walking has been the most high profile “new sport" for the last couple of years. A

new “Nordic Treadmill” also enables people to practice it at home. Enthusiasts claim that

it uses more of the body’s muscles than cycling, swimming or running, increasing energy

consumption and allowing more calories to be burned. The arms take more of the strain,

making it popular with elderly enthusiasts. Other claims are that it can strengthen bones,

combat the effects of osteoporosis, reduce neck and shoulder tension and alleviate

symptoms of repetitive strain injury.

Team/field sports

Football is the most popular teamsport, well exceeding not only other teamsports but all

other sports. In 2003, there were an estimated 128,000 clubs in the selected countries

with a total number of 15 million members (see table 3.6). This will not include the large

number of people who play on a less formal basis. For example, in the UK, 7 million

adults and 5 million children play football regularly. The figure stated for Spain significantly

understates the number of people who actually play. Football has grown in popularity in all

selected countries in the past few years, largely driven by very heavy television coverage.

The number of women playing football in Europe is increasing significantly. Sweden and

Germany have had the most successful women’s teams. The next big European tournament

is in England in summer 2005, and the next Women’s World Cup is in 2007. Women’s

football in Spain is growing rapidly.

Table 3.6 Football participation in the selected countries, 2003

Clubs Registered Participants

Germany

26,239

6,273,921

France

19,073 2,146,752

United Kingdom

42,000 2,000,000

Italy

18,577 1,050,000

Spain

16,683 671,581

Netherlands

3,000 1,050,000

Sweden

3,307 1,951,789*

Total 128,879 15,144,043

*Swedish figure is number of participants, not all of whom will be registered

Source: French & Swedish FAs, Keynote, National Statistics Offices (2004)

Major brands of leather footballs are Mitre, Nike, Umbro, Patrick, Adidas, Puma, Donnay

and Hummel. The Mitre top range includes a 'Fluo Flare' ball for improved visibility. The

2006 World Cup will be held in Germany. This tournament always generates increased

interest in football, both in terms of watching it, playing it and purchasing equipment.

Germany will naturally benefit the most, but a surge in interest will also be seen across

all selected EU markets due to its proximity. This is in addition to the major European

football tournament, held every four years. The next tournament takes place in 2008.

The venue will be shared between Austria and Switzerland.

Most leather footballs are produced under licence by the major brands in Asia. Manually

stitched balls mainly come from Pakistan (Sialkot) and India. This is also the major source

of fair trade footballs. Each year, approximately 40 million footballs are sold around the

world. However in 2001, only 1.6 million of these balls carried one of the official FIFA quality

labels. The principal purpose of this is to denote high quality and consistency. But they are

also the indication of footballs made without child labour, as all manufacturers granted a

licence to bear a FIFA quality label are contractually obliged to reject all child labour.

Approximately 75 percent of the world's hand-stitched footballs are made in Sialkot,

Pakistan. A smaller proportion is also made in India. In 1997, FIFA signed an agreement

aimed at preventing child exploitation. This agreement was also signed by the Sialkot

Chamber of Commerce and Industry, ILO and UNICEF. Representatives of WFSGI and

other child welfare organisations also attended the signing ceremony in Atlanta.

Machine stitched leather footballs, which are lower quality than manually stitched balls,

mainly come from China. Many of these balls are used for promotional purposes e.g. use

during company games, as a give away item etc. As mentioned earlier, football is

strongly influenced by media coverage and during or before high-profile football matches,

the sales of replica kits, footballs with special logos, gadgets and other sales promotion

articles for fans increase enormously. For similar purposes, moulded (synthetic or PVC)

or plastic balls are also being used. Most of these balls are sold at the cheaper end of

the market e.g. in supermarkets, garages etc.

FIFA, the world football body (http://www.fifa.com) recognises the importance of football

in society and is also heavily involved in promoting disabled sport, and is also involved in

a number of high profile social campaigns, such as anti-racism.

Teamsports

Although individual sports have become more popular, football, basketball, volleyball, rugby

and hockey have either sustained or increased their interest levels. Cricket is played in the

UK. Although participation levels are in decline, cricket equipment is still a good market

opportunity for developing country exporters, particularly those such as India and Pakistan

where cricket is also played. The market for teamsports equipment is very large as it tends

to include the cost of large items such as artificial pitches, goals and nets. From a

Developing Country Exporter perspective, balls, padding, bats, sticks and related accessories

are good opportunities. Many European governments focus their investment in sport in

relation to how they see it benefiting the health of the nation. For this reason, team sports

are still encouraged at a government level.

Basketball was played by an estimated 2 million registered participants in the selected

countries in 2003. Indoor basketball is an important teamsport in France (426,711

players), the United Kingdom (300,000) and became more popular, especially among women,

in Spain (291,000) and Italy (280,000). Basketball is the world’s fastest growing

participation sport. More details can be found at the website of the International

Basketball Association (http://www.fiba.com

)

Street basketball has become fashionable, together with related products (clothing,

music), as many young people copy trends from the USA. The main brands of basketball

are Wilson, Spalding and Nike. Other equipment includes basketball stands, which are

mainly imported from China, Taiwan or USA. Brands are here of minor importance.

Volleyball is widely played by young people in school as part of their physical education.

In 2001, there were over 1 million registered volleyball players with more than half

female. Germany has the highest number of players (509,000), In Italy 250,000 people

were registered volleyball participants and 101,000 were in France. Membership has been

on the increase due to greater television coverage. Well-known brands of volleyballs are

Nike, Rucanor and Mikasa.

Beach volleyball has become fashionable with its brightly coloured balls, special outfit

and related music (R&B), which makes it entertaining to play and to watch. Beach

volleyball is also recognised as an Olympic sport. Beach volleyball is popular in Spain.

Handball is popular in Germany (830,000 particpants), France (320,000), Sweden

(323,000) and Spain (90,000) and floorball is very popular in Sweden (415,000

participants).

Rugby is among the most popular sports watched on television in the United Kingdom.

It has been boosted by England winning the Rugby World Cup in 2003. There were over

2,000 clubs in the UK with 305,000 members, of which 55 percent are under 25 and 30

percent between 25 and 34 years of age. In France, rugby has grown in popularity, with

256,000 members and 1,747 rugby clubs. Among the other selected EU countries, Italy

had 35,000 registered participants, followed by Spain (15,000). Rugby balls are mainly

sold by Mitre, Spalding, James Gilbert and Adidas. Protective equipment e.g. head or

mouth guards, knee pads and gloves come from specialised US or Indian suppliers. The

website of the England Rugby Union is a good point of contact (http://www.rfu.com

)

Netball is less popular than years ago and is mainly restricted to the United Kingdom.

Primarily played by girls, as with hockey, the reduction of schools offering the sport has

contributed to the decline. There are no major tournaments covered by television, so the

sport has suffered from competition from other televised sports.

Hockey is mainly played in the United Kingdom, where there are almost 2,000 clubs, The

Netherlands and Germany. Hockey has declined in line with the general decline in interest

in organised sports, and competition from other more popular televised sports. One

reason is the reduction in the number of schools which play hockey. However, the number

of players in The Netherlands rose between 2001 and 2002 from 146,000 to 155,700

participants. This can be attributed to the success of the (female) National Team. Of these

players, about 35,000 children under the age of 13 play hockey. The global hockey market

is worth € 410 million. The normal length of a hockey stick is 36.5 inches in light, medium

and heavy weights. Small sticks for children are sold in sizes starting from 24 inch. More

information on hockey can be found at http://www.fihockey.org

Ice hockey has always been popular in Russia and Scandinavia, but recently increased

in other northern EU markets, primarily due to television coverage. Indoor ice hockey

predominates as the climate does not allow outdoor ice hockey to be played in the

selected EU countries, except Sweden where 410,000 people play. A further 165,000

people play in Germany. Most ice hockey stadiums share their facilities with ice skating.

Technical developments in material (glass fibre, carbon, aramide fibres and advanced

moulded composites instead of wood) and the more curved solid heads of hockey sticks

have stimulated demand. Well-known brands are Grays, Dita, Stag and Slazenger.

Cricket is mostly played in the United Kingdom, played by over one million adults, down

by 20 percent in recent years. Cricket suffers from lack of grassroots development.

Although the international matches obtain high television coverage, the domestic games

generate little spectator interest. This is explained by the length of time it takes to

conclude a match, and the complexity of the rules. A large number of people from the

Indian subcontinent follow cricket in the UK.

In the past few years, the market for cricket equipment has more or less stabilised at

around € 15.5 million, which is still a sizeable part of the UK team sports equipment

market. Furthermore, cricket equipment is potentially a good opportunity for Developing

Country Exporters. The major brand for cricket balls is Alfred Reader and for bats Duncan

Fearnley, but Dunlop- Slazenger are the market leaders across the sport as a whole, with

both Dunlop and Slazenger brands being used for a wide range of cricket products, many

of which are made in India and Pakistan. Other brands include Grays of Cambridge,

Gunn & Moore and Kookaburra. More information on cricket can be obtained from

http://www.icc-cricket.com

Other equipment for teamsports includes a wide variety of specialised articles such

as nets, goals, disc cones, dome markers, whistles, starting blocks, protectives, gloves,

bats or any other sports-related specialised equipment (also referred to as Team and

Field equipment). Within this category, brands are of minor importance and most articles

are made in China, NICs (e.g. Taiwan, Korea), India, Pakistan, Malaysia, Vietnam and

increasingly in other developing countries.

Golf

According to the EGA (European Golf Association), there are well over 3 million registered

adult golfers in 2004 in the selected countries, playing on almost 5,000 golf courses (see

table 3.7). Around 70 percent of golfers are men, the highest proportion being 85 percent in

the UK. This reflects particularly low levels of participation by women in Scotland and Wales.

France (43%) and Germany (40%) have the highest proportion of female golfers.

The United Kingdom has the largest number of participants, i.e. 40 percent of all golfers

in the selected EU countries, or 1.2 million participants. Participation in Scotland is high due

to the number of low cost municipal golf courses. The UK market is quite mature and

growth in the numbers of people playing golf has been slow. In relation to their population,

Sweden has by far the greatest number of golfers. Golf is clearly the number one sport in

Sweden in terms of participation. Golf statistics can be found at http://www.ega-golf.ch

Overall growth rates in terms of numbers of players and numbers of courses has been

increasing by about 5 percent per year for the last few years. The golf industry is in a

healthy position. More media coverage, an increasing number of tournaments and success

by various European golfers have combined to encourage greater participation and higher

expenditure on golf equipment. The general public now consider that 'golf can also be a

sport for the man in the street', although the core market for golf continues to be men in

their forties and over, and those in well-paid full-time employment. Golf enjoys growing

popularity in all the selected markets, but participation levels remain relatively low in Italy.

Some of the selected countries (e.g. United Kingdom, Germany and France) have

'occasional golfers', who play on a pay-per-play basis with friends or colleagues or on

holiday. This group has recently grown in number, as the club infrastructure in these

countries has been more open than before.

Consumer spending on golf equipment in the United Kingdom amounted in 2003 to

€ 480 million, while in Germany spending has reached a value of € 260 million. In the

same year, consumer spending on golf equipment in France was estimated to be around

€ 300 million, and € 200 million in Sweden (see table 3.7).

Table 3.7 Golf participation and equipment sales in the EU25, € million

2004 Clubs Registered

Participants

Sales €

million

United Kingdom

2,618

1,269,224

480

Germany

648 483,172 260

France

548 359,141 300

Spain

266 233,708 80

Italy

229 76,717 N/a

Netherlands

139 251,000 N/a

Sweden

430 554,293 200

Total selected

countries

4,878 3,227,255 N/a

Total EU15

5,817 3,893,470 N/a

10 new EU countries

102 32,972 N/a

Total EU25 5,919 3,926,442 1,500

Source: European Golf Association, Keynote 2004, Sports Marketing Surveys

In general, new golfers first borrow clubs from a friend or use second-hand equipment

(especially in France and Spain), whereas in other countries (UK, Sweden, Germany),

golfers constantly strive to improve their game and are often prepared to upgrade to new

equipment. Both new technology and the introduction of new materials such as titanium

are constantly improving equipment. International brands dominate the market such as

the USA Fortune Brands (Titleist, Footjoy, Cobra), Etonic, Callaway, Taylor-Made (Adidas),

Spalding, Copperidge, Maxfli, Wilson, Ping, Mizuno and Slazenger. For exporters from

developing countries there may be opportunities for golf balls, bags, gloves and indoor

practice sets.

Golf equipment is sold mostly at pro shops and increasingly at sports chain stores and

discounters (e.g. Nevada Bob, American Golf Discount). These large volume buyers have

lowered the market price for starter sets (club, bag and balls) making golf equipment more

affordable to a wider range of people.

Racket Sports

Tennis is still one of the most popular sports although numbers have been falling in

recent years. It combines individual play with sociability and competition. In 2003, the

total number of people who played tennis in the selected EU countries was 16 million, led

by Germany (6 million), followed by United Kingdom (4 million), Italy (2.5 million),

France (1.5 million), Spain (1.2 million), The Netherlands (0.7 million) and Sweden (0.3

million). In some countries, notably in Germany, the number of women playing is rising

faster than men. In marketing terms, this group should be a key target for equipment

suppliers. A further 750,000 people play tennis in the 10 new EU countries, with the

Czech Republic accounting for over half that number. More information on tennis can be

found at http://www.tenniseurope.org

Head, Slazenger and Wilson are the dominant tennis racket brands. The latest rackets

are strong, light and comfortable. The grip has an anti-vibrating effect, achieved with the

insertion of polymer material between racket and grip. At the lower end of this market,

titanium and hyper carbon rackets, often parallel imports, are more frequently sold by

discounters. This, together with less people playing, has significantly reduced the total

value of racket sales.

Squash became immensely popular throughout the 1980s and into the 1990s. Regarded as

a fitness activity, it was played almost exclusively by men. By the late 1990s, popularity

declined and in Germany and the United Kingdom many squash clubs have been

converted into fitness or general leisure centres. 18,000 people were members of squash

clubs in Germany in 2003, with 25,000 in France and 2,000 in Spain. The main brands of

squash rackets include DSG, Wilson, Prince, Gray-Nicolls and Head. Dunlop is the main

brand for squash balls. Eye protection is a possible area of opportunity.

Badminton, which was frequently played by younger couples, has also lost in popularity.

Beach badminton, similar to beach volleyball, has benefited from the general increase in

beach sports. 222,000 people played badminton in Germany in 2003, while 79,000

played in France. Success at the Olympic Games in Athens in 2004 has revitalised the

game in the UK. The main brands in badminton rackets include Dunlop, Slazenger,

Wilson, Carlton, Yonex and Prince.

Table tennis is played by 21 million people in Europe and is most popular in former East

Germany which had 5 million participants in Germany in 2003. The decline in popularity

over the years has resulted in decreasing sales of table tennis bats. The introduction of

a larger ball with a slower spin, made rallies longer and table tennis more enjoyable to

watch and easier for people to play. Well-known brands are Sunflex, Stiga and Joola.

Other Sports

In-line skating took off in the early 1990s and peaked in 2001 at 28 million participants

in the selected EU markets. Inline skating in 2003 and 2004 experienced a drop in sales -

the trade is blaming it on a lack of innovation. Indeed, associated with the success of

Nordic Walking (see above), Nordic Blading could be the new discipline to create demand

within the hardware-saturated skater community. Currently still a niche sport, Nordic

Blading accounts for only about 5 percent among the 16 million inline skaters in Europe

today, but more people are moving from recreational and fun skating to fitness skating,

suggesting that greater enthusiasm for the Nordic discipline could push sales.

The popularity of in-line skates gave an enormous boost to the sports goods sector. The

German market grew massively during the 1990s, but has declined since then. In other

countries such as the UK and Italy, the craze has not developed to the same extent.

On the other hand, there are still many in-line skaters in France and The Netherlands,

where the activity is regarded as a fashionable method of transportation. There are

special routes for in-line skaters, including cycle lanes in The Netherlands, which offer

ideal circumstances for skating. There are 5 million roller blade enthusiasts in France.

Innovations in in-line skates are required in order to keep interest of younger skaters,

who tend to be more interested in skateboards. Brands for in-line skates include K2,

which accounted for 50 percent of the German market in 2000 followed by Rollerblade

(Bennetton), Salomon, Roces, Oxygen, Tecnica, Fila, Bauer (Nike), X-Cuse and Faze 7.

Kickboards are used for other skating related street sports. These boards require special

parks which have equipment designed to enable the participant, usually a teenager or

younger, to perform what can be described as gymnastic efforts assisted by their boards.

These sports are new variations on skateboarding, which was introduced from the USA

25 years ago. Carveboarding has also become popular, especially in France, Italy and

Spain. Major brands are X-Cuse, Fishbone and Neighborhood.

Skiing is particularly popular in France and Italy, accounting for a quarter of the

equipment market in each country. The number of Britons who take ski holidays each

year has broken through the one million barrier - largely because enthusiasts are using

the internet and no-frills airlines to fix short breaks as a "top-up" to their main family

winter holiday. There are some concerns in the industry that wintersports will reduce in

coming years as winters are less cold, shortening the season.

The Ski and Snowboard Industry, however, is forecasting a continued increase in skiing

holidays. America and Canada face a big invasion of European skiers cashing in on the

weak dollar. The figures show a remarkable revival since 2000, when the total number

of British ski holidays sank to barely 700,000 - partly because people dug their heels in

to resist sky-high prices during the Millennium celebrations.

Downhill skiing still dominates snowsports holidays, but snowboarding now accounts

for almost one quarter. Popularity has continued to be encouraged by technological

developments which have made skis easier to use. Volcom and Nikita are hot board

brands. The market is increasingly influenced by women’s lines, urban-inspired labels

and music-rooted brands. Opportunities exist for developing country exporters for

accessories in this market such as belts and wallets.

Freeskiing is becoming an alternative to snowboarding for some young people, and

was particularly popular in France. Heli-skiing and heli-boarding are available in Italy.

These are banned in France for environmental reasons. Ice-climbing, night-skiing and

night snow-boarding are becoming popular in some resorts. Over one third of French

sports equipment production is skiing related. 480,000 pairs of skis were sold in the most

recent winter season, 3 percent up on the previous year and the highest for ten years.

Swimming has many participants and is very popular in all selected countries,

particularly in France, Italy, and Spain where better climatic conditions favours outdoor

swimming. Half the French population go swimming, more than any sport in France other

than cycling. Like other traditional sports, swimming has suffered a reduction in

popularity due to an increased interest in outdoor and fitness activities. The swimming

market includes swimming caps, headbands, spectacles and goggles and was valued in

the UK around € 50 million. More women than men participated in swimming in Germany.

The largest part of the watersports equipment market are articles for (scuba)

diving, snorkelling, bodysurfing, windsurfing and a large variety of accessories

(beach mats, waterproof bags, chairs etc.). Beach culture is such that new innovations

will continue to appear. Sales of surfboards are not increasing at the same rate as

snowboards but diving, snorkelling and other 'fun' beach activities e.g. water-ski,

barefoot ski, wakeboard, hydro speed and jet-ski are still popular. Surfing, previously

felt to be unsuitable due to the climate, is very fashionable in parts of the UK now.

The sale of watersports equipment is not restricted to summer, but is sold throughout

the year, since younger and more affluent people tend to take frequent holidays to warm

destinations in winter. For surfing sports, the variety in brands is enormous and for

swimming accessories, O’Neill, Quicksilver, Speedo (Pentland Group), Arena, Billabong

and Nike are popular. Kitesurfing is the latest and possibly the most dynamic boardsport

of the moment - with a burgeoning community of young women discovering the sport.

Sailing has been popular for a long time in France, Italy, The Netherlands and Spain with

many licensed sailors and windsurfers. As both are established activities, more sails, parts

and accessories than boats or boards are sold in the equipment category.

Horse riding

Horse riding has grown in popularity in parallel with the increase in outdoor activities.

The market for saddlery products in the selected countries is estimated to be at least

€ 490 million, with Germany and the UK being the largest markets. There are 4.5 million

horses in the EU with over 6.5 million riders, over 4 million of which are from the selected

countries. The figures in table 3.8 below are provided by the International Equestrian

Federation (http://www.horsesport.org

). Germany has the largest equestrian association

in the world, and has 7,236 riding and coaching clubs. A further 25,000 people ride

regularly in the new EU countries, the majority in the Czech Republic, Poland and Hungary.

However, the market is potentially much bigger in some of the countries where horses are

also involved in the sport of hunting, which is excluded from this survey. This would

increase numbers significantly in Italy and Spain. Hunting is also a big sport in Germany,

and it has recently been banned in the UK for reasons of cruelty. Equestrian shows and

competitions are well supported and are very popular channels for supplying equipment.

Functionality and safety are still the top priority when it comes to outfits and equipment –

these aspects play an important role in new product developments. In terms of fashion,

in addition to the classic colours of black, marine, brown and beige, bright and cheerful

colour variations are gaining in significance for horse and rider.

Table 3.8 Horse riding participation in the selected countries

Regular Riders Jumping Dressage Eventing

Germany 1,500,000 50,000 50,000 50,000

France 400,000 50,000 20,000 20,000

UK 1,500,000 20,000 20,000 5,000

Italy 150,000 50,000 2,000 5,000

Spain 50,000 5,000 2,000 500

Netherlands 130,000 50,000 50,000 5,000

Sweden

250,000

20,000

5,000

Source: International Equestrian Federation (2002)

Camping Goods (including equipment for outdoor activities)

Camping and outdoor activities are enjoyed in a natural environment and often provide

an escape from the fast-paced and increasingly urbanised environment. There is an

increasing desire to go ‘back to nature’. Another trend is the popularity of ’survival’

weekends, organised by special outdoor travel agents or companies. The most common

outdoor activities in the selected EU markets are:

- Walking and trekking activities, such as hiking (walking 3 km or more often

across country) and rambling (walking in low-level areas, such as valleys).

- Climbing (rock, ice or wall climbing, bouldering) is the largest sub-sector in

outdoor activities, especially in France, Germany, the UK and Italy

- River sports such as canoeing, kayaking, rafting, pot holing and caving.

- Other adventurous outdoor activities, which include aerial sliding activities

like delta flying, parachute jumping, paragliding and surf skiing.

Walking is most popular as most people can do; it is non-technical and appeals to all age

groups. Nordic Walking has added an edge to normal walking. This encourages more

outdoor experiences. Climbing tends to be done through a club and training and high

levels of fitness are required. It tends to be specialist and highly fragmented. The European

Outdoors Group (http://europeanoutdoorgroup.com

) claims the market is growing due to

the broader general trend towards healthy living, but the market for specialist products is

static at best. The EU market for camping goods and outdoor equipment is very large and

diverse. The figures quoted here are estimates based on Eurostat figures of the categories

in question – tents, sleeping bags, airbeds, accessories and equipment, but excluding

backpacks, rucksacks, footwear or technical equipment used by mountaineers.

Table 3.9 Sales of camping goods in € million, 2003

Source: SAZ, Eurostat, Trade Estimates

The market is valued at € 1,120 million, led by the United Kingdom, with estimated

sales valued at € 300 million in 2003, followed by Germany and France (see table 3.9).

Germany's younger generation are increasingly escaping the larger cities for sporting

events of all kinds. Canyoning, ice climbing, trail running and downhill racing - with

speed and outdoor action making it an individual choice between one sport and another.

49 percent of all German hikers and 43 percent of the country's mountain climbers are

women. The trekking sector already has a share of 14 percent in the entire German

sporting goods market. GPS receivers are popular. Campers, walkers and other outdoor

enthusiasts spent an average of € 750 per head on outdoor clothing, footwear, tents

and other equipment in the UK. The market appears to has recovered more quickly than

expected from the foot and mouth crisis. As is shown in figure 3.11, tents were the

largest part of the UK market.

Participants

climbing

Sales camping

goods € million

United Kingdom

625,000

300

Germany

688,000 270

France

810,000 240

Italy

521,000 120

Spain

65,000 85

Netherlands

58,000 60

Sweden

90,000 45

Total 2,857,000 1,120

Dome, geometric and hoop tents are quickly and easily assembled by a single person

and can be packed in a light, compact, easy to store unit. Well-known brands include

Jack Wolfskin, J J Hawley, Vango, Mountain Craft, Vaude and Coleman.

Sleeping bags now have to meet a new European standard which will affect both brands

and retailers across Europe. It redefines how to measure and display temperature ratings

for sleeping bags. Vango and Stormshield are the major brands.

Other camping goods include camping stoves (Camping gaz, Coleman Epigaz, Primus),

cooking sets (Trangia, MSR, Vango), foldable tables and chairs, self-inflatable mattresses

(Coleman, Karrimor, Beacon), cooking gear, lanterns, compact binoculars, food, knives,

compasses, money belts, mosquito nets, medical sets and other camping or trekking

equipment. Sun protection cream is increasing.

Technical outdoor equipment includes equipment used by climbers and mountaineers.

Within this group crampons, ropes/rope accessories and ice axes are the main segments.

Rucksacks and backpacks are a large product group worth € 100 million in the UK, but

excluded from the figures. More variety in models, sizes, quality and designs have

stimulated demand. The largest rucksacks have a capacity of 75 litres, with pockets and

straps to attach accessories. Well-known brands are Lowe Alpine, Karrimor, Berghaus,

Mountaincraft, North Face. Designs specifically for women are becoming more widespread.

Fishing Tackle

According to the European Anglers Alliance (http://www.eaa-europe.org

), with an

estimated 16 million participants in the selected EU countries, fishing is still an important

leisure activity. A further 1.5 million people fish on a recreational basis in the 10 new EU

countries. In 2003, sales of fishing tackle in the selected markets valued € 839 million,

led by France and Germany (see table 3.10). This figure relates to rods, reels, hooks,

nets and accessories, but excludes clothing and footwear for angling. It is one of the

most popular sporting activities in the UK, but expenditure on equipment is relatively low.

Table 3.10 Fishing participation and fishing tackle market in the selected

countries, 2003

Recreational

anglers

Members of

angling clubs

Sales of fishing

tackle € million

Germany

United Kingdom

France

Italy

Spain

Netherlands

Sweden

Total

3,300,000

4,000,000

900,000

800,000

1,500,000

2,020,000

16,520,000

851,000

400,000

1,800,000

170,000

93,262

362,819

23,500

3,700,581

185

165

220

839

Source: European Angling Association, Spanish National Statistics, HBD, Eurostat,

Trade Estimates (2004)

Number of participants in most selected countries has decreased, due to:

 The growing popularity of other leisure activities.

 In some countries, reservoirs are stocked with fish, offering little challenge to anglers.

 The impact of foot-and mouth-disease.

Fishing tackle is mainly sold in specialised fishing tackle outlets and (sports) chain stores.

The oversupply of all fishing equipment became critical when it was sold by department

stores, foreign discounters and home direct sales companies, selling fishing tackle at low

’dumping’ prices. Well-known brands include Daiwa, Shimano, Zebco, VMC, Shakespeare,

Abu, Silstar, Albatross, Deboissy, Leeda and Peerless. To stimulate sales to younger

consumers, a starter pack of tackle, sold at low prices has been successful, especially in

France and the United Kingdom.

3.3 Consumption patterns and trends

Demand trends in the selected markets within the EU have been influenced not only by

changes in sports participation, but also by changing consumer habits and the strong

effects of short term fashions. Apart from these, the following factors influence consumer

expenditure on sports goods:

Demography and economics

The ageing of the EU population will result in an increasing number of people aged 45

years and older, who will be an important target consumer group for the future sports

goods trade. This group will have the time and income to lead a more active life as they

believe that a healthy lifestyle will prolong their lifespan.

Older people are increasingly recommended to do sports or fitness. In Germany and

Sweden, some insurance companies charge a lower premium for physically fit and

healthy people. 'Seniorensport' will be a major focus by local governments in the coming

years. Older people are willing to buy or invest in new equipment and inform themselves

more extensively than younger people. They want good quality, well-trained staff and

reliable after sales service.

Young people are likely to spend more on sports goods and particularly fashionable

sportswear. People between the ages of 35 and 50 have less time to spend on sports,

partly due to the increasing number of households where both partners work, but they

are affluent enough to purchase what they want. Women increasingly participate in sport.

A result of this is sports shops just for women. “Sheactive” is one such outlet in London.

Fashion

Fashion and design have become extremely strong influences in all leisure and sporting

goods. This trend has been reinforced by global developments, more women participating

in sports and lifestyle marketing, which have generated the elements of fashion in sports

goods. Young people in particular want to express themselves as individuals but,

paradoxically, also want to be one of the crowd. This has resulted in limited edition

ranges which have a very limited shelf-life and ranges which are endorsed by well known

celebrities – either from the world of sport, fashion, music or the media.

Leisure time

Due to changes in work patterns, consumers have less spare time. Despite this, leisure

activities have increased enormously over the past 10 years. People have more choice in

what to do and when, so choose not to commit themselves to sports on regular days or

times. They prefer to make more spontaneous choices, which explains the trend to more

individual and less team sporting activities. With regards to sports participation, men

tend do sports more frequently and for longer periods per week than women. Older age

groups also spend more time on sports. 24 hour opening of health clubs is a trend now.

Growing sponsorship and media involvement

Events such as the Olympics and the World Cup enable the emergence of heroes in

particular sports. This plays a part in encouraging sports participation. This link is

reinforced by sponsorship and promotional campaigns. Television is a key medium with

football, rugby, tennis and motorsports being most popular. The audience power of

televised sports draws in major sponsorship agreements and advertising budgets.

Brands of sports equipment benefit from this trend.

Mixing sports

This trend has seen the arrival of hybrid sports such as beachminton, tripple golf,

ultimate frisbee, discgolf and floorball. It introduces the possibility of generating new

products and sales by creating a new fashion from the merging of two established

sports. One such new product at a recent trade fair was a boot for “Roller Soccer”.

Other examples include a skate that can be used without the need for snow.

Sports locations

The growing availability of sports centres close to home or work has made it easier for

people to do sports whenever they like. Sports centres also perform a strong social

function and provide additional service (modern atmosphere, fast food restaurants,

shopping facilities, children’s play areas). Some sports centres, particularly privately run

ones have developed into retail outlets for sporting goods as well as a place to do sport.

Changing distribution patterns

Sports chain stores stimulated the popularity and fashion for wearing sports clothing and

footwear in the 1990s. They frequently have specialist sectors within their store which

receive high priority or are promoted by thematic corners or floors (e.g. urban sports,

fitness, outdoor, winter sports). Their main target group is the recreational sportsman or

woman and they sell the most popular brands in sports footwear and clothing, and offer a

limited range of sports equipment. New media, the internet and communication via mobile

phone will enable sports brand owners to reach the younger market more directly and in

ways that older consumers might not appreciate.

Brands

Brand awareness has been a feature of the sports goods market for a long time because

clear ranking systems have always existed in the world of sport. For the young, a brand is

strongly associated with the group to which they want to belong and stands for a defined

personality and status level. Throughout the year, heavy promotional efforts are made by

large companies such as Adidas, Nike and Reebok, in order to retain market share. In

sports equipment there are around 1,200 different brands, with each brand strongly

associated with a field of sports.

Quality/price

More wealth will bring more demanding consumers who expect the best price, quality and

service and will not accept compromises. They will not tolerate badly finished sports goods,

which fall apart after a few months, or articles which are made of defective materials that

deteriorate quickly. In all the selected EU countries, consumers are critical and expect

value for money. Consumers are more knowledgeable because they are exposed to wider

ranges of sports goods sold in more diverse retail outlets, by mail order, Internet and

phone.

Ethics

Environmental friendliness has become important in purchasing decisions of consumers

in most northern EU markets. Consumer awareness of social and ecological matters is

increasing and is reflected in purchasing behaviour. Consumers are increasingly reluctant to

buy products if they know that non-sustainable resources are being undermined, or if child

labour has been used in manufacturing. The French sports industry, for example has set

up an ethical and environmental code of conduct for members to adhere to. The WFSGI

and IOC have recently agreed to collaborate in an initiative, “Sporting Goods To Go”,

intended to facilitate the transport of donated sports equipment to disadvantaged youth

in developing countries.

Sales patterns

The traditional nature of summer sports and winter sports in terms of seasonal sales

patterns is changing. Manufacturers are trying to achieve consistent sales throughout the

year by extending the seasons for certain sports, encouraging people to travel abroad to

places where they can practice their favourite sport at different times. Manufacturers have

been buying smaller manufacturers specialist in other sports. This is designed to spread

their risk in terms of their market representation and also to ensure they can generate

solid sales throughout the year.

The unpredictable climate in EU countries can have a serious effect on seasonal sales of

specific sporting equipment. Warm winters with little snow mean greatly reduced demand

for snowsports equipment. A cool summer reduces demand for watersports articles.

Because of the growth in the number of the large sports centres, fitness centres and in

the number of people playing sports at home, sports in general has become less weather

sensitive than in the past.

4 PRODUCTION

4.1 EU Production of sports goods

Production of sports goods in 2003, according to Eurostat figures which are also used by

National Statistics Offices throughout the EU, amounted to € 3.51bn in the EU25, of which

over 98 percent was produced in the former EU15. There were 3,200 companies, employing

over 35,000 people, involved in the production of sports goods in the selected countries,

most of which produce specialised and high quality goods. A major feature of some

production is the outsourcing of part or all production and/or assembly to lower cost sub-

contractors in other parts of the world, notably Asia.

Table 4.1 Production of sports goods in the selected EU countries, 2003

Companies Employees

Major products by areas of sports

Spain

500

8,000

eam/field, fitness, watersports, saddlery, camping good

Italy

650 5,500 Team/field, skates, fitness, watersports, snowsports

Germany

700 7,900 Fitness, team/field, saddlery, snowsports, camping goods

France 560

7,200 Snowsports, team/field, fitness, fishing tackle, saddlery

420 6,500 Golf, team/field, saddlery, fitness, fishing tackle,

Netherlands 30

400 Camping goods

Sweden 325

1,000 Team/field, fishing tackle, fitness, camping goods

Source: National Statistics, Trade Estimates 2004

Between 2001 and 2003, production increased by almost 2 percent overall, although

decreases in Germany were offset by increases in other countries, notably Spain and the

United Kingdom. Broadly speaking, this small increase in value hides a continuing decrease

in volume as imports continue to increase.

Overall increases in the production of team/field, fishing, camping goods, golf and

watersports were in contrast to lower production of saddlery, skates, fitness equipment and

balls. The key difference between production in the new EU countries and the existing EU

countries was the limited nature of the production. Although some production was for

domestic consumption, much was for re-export for large multi-national sporting goods

countries. Hungary was the largest producer, being primarily involved in camping goods,

fitness, sports gloves, team/field, balls and table tennis production. Production of team/field

equipment was primarily in the Czech Republic. Poland was involved in camping goods,

saddlery and fitness equipment. Production is expected to increase in these countries in the

coming years. A limited amount of production (mainly team/field) took place in the Baltic

countries.

Table 4.2 Value of production of sports goods in the selected

EU countries, 2001-2003, € million

2001 2002 2003 % of EU25

Spain

162

181

205

5.8

Italy

736 742 749 21.3

Germany

523 508 501 14.3

France

602 619 637 18.1

530 589 568 16.2

Netherlands

42 58 67 1.9

Sweden

66 84 83 2.4

Total EU15

3,397 3,507 3,448 98.1

10 new EU

56 63 66 1.9

Total EU25

3,452 3,570 3,514 100.0

Source: Eurostat 2004, National Statistics

4.2 Production in selected countries

4.2.1 Germany

German sports goods production has declined

from € 523 million in 2001 to € 501 million

in 2003. It now lies behind Italy, France and

the UK in the value of its sports goods

production, accounting for just 14.3 percent

of EU25 production. Indications are that this

decline will not continue into 2004.

Fitness and team/field equipment accounted

for over 60 percent of all production in 2003.

However fitness equipment declined from

2001 while team/field equipment increased

by over 12 percent. Other important product

groups were saddlery, snowsports, camping

goods and balls (see figure 4.1).

The industry has suffered in recent times

from the economic difficulties in Germany

and the transfer of some production overseas.

700 companies in Germany were involved in the production of sports equipment.

Most German manufacturers of sports goods specialise in the manufacture of a few

products or in particular sectors requiring special machinery and expertise. Whilst their

reputation for quality is high, manufacturers increasingly have to outsource some

processes to Asia and Eastern Europe in order to stay competitive in price and design

4.2.2 France

France produced € 637 million of sports

goods in 2003, a 6 percent increase since

2001. Over half of this was ski equipment

(see figure 4.2), an increase of almost 12

percent over 2001.

Rossignol, probably France’s largest producer

in this market, has a sizeable amount

produced in countries where labour costs are

lower.

Production of items for horse riding increased

significantly in 2003, while camping goods

production decreased.

For fitness, Care based in the Paris area, was

a large French fitness equipment producer,

followed by LPI and around 10 sizeable

companies.

560 companies employ over 7,200 people in sports goods production in France.

Sports Major products in Germany

 Fitness : Studio/bodybuilding, gym and electronic training equipment.

 Outdoor : Camping equipment such as tents, rucksacks, sleeping bags and

accessories.

 Team/field : Football, hockey, athletics equipment.

 Other : Saddlery, ski poles and bindings, balls and table tennis

equipment.

4.2.3 United Kingdom

The UK is an important producer and exporter

of sports goods within the EU, particularly

of golf equipment. There were over 400

companies producing sports goods in 2003,

representing production worth € 568 million.

Golf equipment represented almost one third

of all sports goods production. Team/field,

saddlery, fitness and fishing equipment were

also important sectors. Production of saddlery

and balls were down in 2003 compared with

the previous year, but other categories were

up (see figure 4.3).

Most companies specialise in making

equipment and accessories for at least 30

different kinds of sports. The leaders are

shown in table 4.3, of which golf and fitness

equipment, and balls suppliers predominate. It should be noted that an average UK sports

goods supplier exports around 25 – 30 percent of its turnover. Grays of Cambridge, the world’s

largest supplier of cricket equipment, have taken over the rugby company James Gilbert. This

is a good example of companies needing to join together to defend their markets from

overseas competition. Dunlop Slazenger is a major manufacturer and exporter and easily the

UK’s largest sports equipment company.

Table 4.3 Leading UK suppliers of sports equipment, 2003

Company Product group Brands

Acushnet Europe Golf Titleist, Footjoy

Adidas (UK) Golf, football, rugby Adidas, Taylormade

Amer Sports UK Golf, racket, US sports Wilson

Bolton Stirland Fitness Tunturi

Callaway Golf Callaway, Top Flite

Daiwa Sports Fishing, Golf Daiwa

Donnay UK Golf, rackets Donnay

Dunlop Slazenger Golf, rackets, cricket, hockey Dunlop, Slazenger, Carlton

Grays of Cambridge Cricket, hockey, squash, rugby Gray-Nicholls, James Gilbert

Hippo Holdings Golf Howson, Hippo

House of Hardy Fishing Hardy’s

Head UK Rackets, skiing Head

MacGregor Golf Golf MacGregor

Mitre Sports Footballs, rugby balls

Mitre

Mizuno UK Golf Mizuno

Sheakspeare Fishing tackle Shakespeare

Unicorn Products Darts, cricket, hockey, bowls Unicorn, Botra, Gunn& Moore

Yonex UK Badminton Yonex

York Barbell UK Fitness York

Source: Keynote (2004)

Most companies specialise, and they tend to have a small number of employees with a

turnover of less than € 1.5 million. These are either traditional well-established companies,

or newer high-tech producers. Since sports participation in the UK is fairly static, exports

are becoming increasingly important. The large UK multisports suppliers like Dunlop

Slazenger, Wilson and the Pentland Group are significant exporters.

4.2.4 Spain

The Spanish sporting goods industry employs

8,000 people, more than any other in the EU,

although they accounted for just 5.8 percent

of the value of EU25 production 2003.

Spain has a long tradition in the production of

clothing and footwear, especially made of

leather and canvas, which form three-quarters

of total production.

In 2003, production of Spanish sports goods

manufacturers valued € 205 million. As is

shown in figure 4.4, team/field was the

largest category, representing 51.1 percent of

total sports goods production. Fitness was the

other significant category, accounting for

almost 30 percent of all production.

Early indications for 2004 suggest a decline in fitness production but a continuing increase

in team/field equipment. It already accounted for over half of all production in 2003.

Most Spanish companies are located in the C/A/B area (Cataluña, Aragón and Balearic

Islands), which is in the North East. 20 percent of companies were subcontracting sports

goods, being further processed abroad, while 10 percent had their products made under

licence by companies in South America or Asia. According to a survey done by Sports Panel,

almost 75 percent of Spanish companies are involved in exporting.

4.2.5 Italy

Valued at € 749m in 2003, Italian sports goods

production is the largest within the selected EU

countries. A significant proportion of this was

exported, indicating that Italian firms represent

about one fifth of the global sporting goods

market. Sports goods produced in Italy are the

highest value of any EU country, and have

remained broadly unchanged between 2001

and 2003. The biggest sector is team/field with

a value of € 243 million, accounting for almost

one third of all sports goods production.

Italy dominates the production of skates in

the EU. Roller skate production is five times

greater than the production of ice skates.

Overall they represent 17 percent of the

production value of Italian sports goods.

Fitness equipment accounted for 14 percent of production. The camping goods sector

showed the biggest increase over 2001, whilst watersports production registered the

greatest decrease.

Sports Major products in Italy

 Fitness : Studio bodybuilding, home fitness eqt (Tunturi, Forza Fitness).

 Skating : In-line skates (Roces, Rollerblade-Benetton), roller skates, boards.

 Snowsports : Skis, safety bindings and poles, snowboards and monoskis.

 Watersports: Surf and sailboards, inflatable boats, waterskis, diving eqt.

 Other : Gymnastic articles, balls, tents and fishing tackle (rods).

4.2.6 Netherlands

Production of sports goods in The Netherlands is very limited. In 2003, there were around

30 suppliers. Eurostat records € 67 million of production, in the categories of camping

goods, fitness and team/field equipment. Some well-known Dutch suppliers include

Rucanor and Point Break Europe (with the brand Brunotti) that both produce equipment

which sells all over the world. Long established Dutch manufacturers include Viking and

Zandsta, producing ice-skates and in-line skates. There is also limited production of water

sports articles. In the 1980s, surfboards were produced but, after the declining popularity

of windsurfing, the output volume fell from 300,000 units in 1985 to a few thousand by

the end of the 1990s.

4.2.7 Sweden

Production of sports goods in Sweden amounted to € 83 million in 2003, an increase of 26

percent over 2001. Production is concentrated on a few items of which team/field

equipment was the most important, valued at € 44 million in 2003. Sweden was the fourth

biggest producer of fishing equipment in the EU, after the United Kingdom, France and

Italy. Sweden exports some of its fishing tackle to its neighbouring Scandinavian

countries. Fitness equipment was the other category of note. Protective equipment for ice

hockey is included in this category. 325 companies are engaged in the production of sports

goods, which is high in relation to the size of the country.

4.2.8 The 10 New EU Countries

Production of sports goods in the 10 new EU countries amounted to € 63 million in 2002,

an increase of 13 percent over 2001. Over half of this production is carried out in Hungary,

which also produces the widest range of sports goods – notably fitness, team/field, camping

equipment, as well as balls, sports gloves and table tennis equipment. The Polish sporting

goods production is worth € 13 million, low for its size, while other production is carried out

in the Czech Republic, Slovakia and the Baltic States. No production figures are recorded by

Eurostat for Slovenia, Malta or Cyprus. Although not scheduled to join the EU until 2007,

Romania is also a significant producer of sports goods.

Outsourced Manufacturing

Most sports goods suppliers act as importers, concentrating on the marketing of their brand

and sourcing their products in countries where manufacturing is either cheaper or better.

According to the WFSGI (World Federation of Sporting Goods Industries) over 80 percent of

most sports goods are outsourced in developing countries especially in Asia, with the

exception of snowsports, golf and watersports equipment.

The major manufacturing countries in Asia for sports equipment are: China, Taiwan, South

Korea, Pakistan, India, Thailand, Malaysia, Vietnam, Philippines and Indonesia, which have

an established reputation and expertise for the production of sports goods. Most goods are

supplied OEM, and recently ODM:

 OEM (Original Equipment Manufacturing) Æ The product is tailor-made according to

customers' specifications. OEM equipment is usually supplied on a continuous base (e.g.

quantities fixed per year) or sometimes on a by-order basis.

 ODM (Original Design Manufacturing) Æ The product is made according to

customers' design. China and Taiwan have developed their own sports goods (fitness

equipment), which need to be redesigned for the EU market. Another example is

promotional or event related footballs.

Recently several new forms of supply by an exporter from a developing country have been

introduced, such as a licence agreement. Here a product is jointly developed between e.g. an

Asian manufacturer and EU supplier (i.e. manufacturer, importer, retailer or buying group).

Sometimes it is agreed that the Asian manufacturer can sell this product in his own country,

providing him with more security to produce over a longer period of time.

All these forms of co-operation between manufacturers from developing countries and EU

suppliers must comply with the Code of Conduct, produced by the WFSGI. This code

provides standards and ethical conditions for the production and joint development of sports

goods in a socially responsible way. The aim of this code is to establish long-term business

relationships and sustainable development in the manufacturing country. More information

can be found at http://www.wfsgi.org

or http://www.wsforum.org.

Rising living standards and labour costs in some Asian countries has led many EU suppliers

to look for other countries (in Asia or elsewhere) with even cheaper production costs,

especially for high volume items. A further reason for EU suppliers to look for new sources

is to try to identify producers who do not use child labour.

In the past few years, Eastern Europe has made significant gains at the expense of Asia.

As this region is closer to the EU market, transportation costs are low, compensating for

higher material costs. Another advantage of buying from neighbouring countries is their

ability to respond quickly to faster changing market needs. This process has been

stimulated further by the entrance of 10 countries to the EU in 2004.

The Euro is increasingly used by Eastern EU countries as well, reducing the risks of

currency conversion, as is now the case with the dollar.

These advantages apply to a lesser extent to production contracted to some North African

countries (Tunisia, Morocco, Egypt) and Southern European countries (Italy, Portugal and

Spain). In Southern Europe, the more exclusive, high quality ranges of sports and camping

goods are produced. As supply lines are short, small orders can be placed and delivery

made within a short period. For importers and buying groups, this is a good alternative

to the less flexible large brand manufacturers.

5 IMPORTS

Trade statistics in this Chapter are from Eurostat (http://europa.eu.int/comm/eurostat),

based on information from the Customs and EU companies given on a voluntarily basis.

Particularly in the case of intra-EU trade not all transactions are registered, such as those

by smaller companies and from non-EU sources (see remarks on trade statistics in

Chapter 2). On the other hand, figures on trade between the EU and the rest of the

world (Extra-EU) are registered and are, therefore, better represented in these

statistics. Still, they must be treated with extreme caution and only give an indication of

trends in the international sports goods trade.

It should be also noted that the presence of the distribution centres of Nike, Adidas,

Reebok, Asics in Belgium and The Netherlands means that there are large volumes of

sports goods which are re-exported from these countries to other EU markets.

The statistics specify total imports, divided into volumes/values sourced from non-EU

countries (extra-EU) with the values/volumes coming from developing countries, as defined

by the OECD (see Appendix 4). Appendix 2 lists import statistics of the EU and the selected

markets and gives detailed breakdowns of trade statistics by product group. The figures

quoted in the next section relate to the former EU15. Specific figures for the 10 new EU

countries are only available for 2003 and appear in a later section.

5.1 Total imports

5.1.1 Total Imports by the EU

The EU is among the leading importers of sports goods in the world and in 2003 accounted for

over 909 thousand tonnes with a value of € 5,219 million. Total EU15 imports increased by

27 percent in volume and by 7 percent in value, most of the increase coming through in 2003.

The UK is the largest EU importer, accounting for over 18 percent of total EU15 imports: 171

thousand tonnes, with a value of € 964 million in 2003. The UK is followed by Germany

(17% of EU imports in 2003), France (16%), Italy (8%) and Netherlands (8%). In terms of

volume, all countries in the EU15 increased their imports of sports goods between 2001 and

2003, especially UK, France, Netherlands, Belgium and Luxembourg, as shown in table 5.1.

Table 5.1 Imports of sports goods by EU country, 2001-2003 in tonnes and € 1,000

2001 2002 2003

value €

volume

value €

volume

value €

volume

Total 4,871,247

714,060

5,098,906

766,386

5,219,377

909,466

UK 910,727

125,536

1,016,556

154,116

964,171

171,877

Germany 957,089

161,308

870,471

143,758

893,314

171,338

France 787,608

114,510

797,529

126,076

847,949

144,003

Italy 419,826

56,364

405,056

57,155

418,769

63,243

Netherlands 334,154

51,064

379,363

57,301

417,573

80,670

Austria 310,742

34,884

311,735

35,552

312,176

38,963

Spain 262,168

40,039

303,681

46,021

305,090

50,802

Belgium/Lux. 286,457

51,739

350,944

65,845

398,101

85,814

Sweden 199,829

22,093

230,741

26,317

224,604

30,526

Denmark 139,905

17,982

148,386

20,027

150,112

23,078

Finland 94,763

8,847

97,290

10,026

105,218

12,265

Ireland 70,474

5,193

75,154

6,376

73,216

8,615

Portugal 53,407

8,377

56,026

8,311

51,818

8,459

Greece 44,098

16,124

55,987

9,507

57,266

19,812

Source: Eurostat (2004)

The sources of sports goods can vary considerably from year to year according to the product

in demand (e.g. ice skates during freezing periods). Even if orders from retailers have to be

placed far in advance, levels of stock held by importers in their EU warehouses or distribution

centres still can vary from period to period. An overview of Intra-EU and other sources of EU

imports can be found in Appendix 2 (EU imports by sourcing country).

Intra-EU supplying countries

In 2003, 40 percent of EU imports by value came from other EU countries. The principal

EU supplier was France, with 38,851 tonnes worth € 322 million, representing 15 percent of

total Intra-EU sports goods supplies (see fig 5.1). The major items supplied were team/field

and fitness equipment. Germany was the next largest importer in the EU (15%). Germany

is an important supplier of fitness and snowsports equipment, as well as camping goods to

other EU countries, then by Italy (14% - snowsports, team/field and fitness equipment),

Spain (fitness equipment) and the UK (golf, fitness equipment). Intra-EU supplies increased

by 7 percent in value between 2001 and 2003, from € 4,871 to 5,219 million, and by 27

percent in volume. This trend can be largely attributed to increased supplies of camping

goods throughout the EU, as well as team/field equipment and balls.

Extra-EU supplying countries

60 percent of EU imports came from non-EU sources, of which 45 percent came from

China. In the last decade, China and other Asian countries have expanded their exports

to the EU very rapidly. Between 2001 and 2003, China increased its supplies by 15

percent in value and by 43 percent in volume terms. China is the single largest sports

goods supplier to the EU. In 2003, EU imports from China were € 1,409 million, or 424

thousand tonnes. In terms of value, Chinese supplies were almost three times that of

the USA (€ 487 million) the second largest supplier to the EU. In volume terms, China

supplied nine times as much sports equipment to the EU as the USA. This also highlights

the significant price differential between each country.

China already has a long history in sports (e.g. table tennis, racket sports, martial arts)

and has a reputation for the production of equipment for new sports e.g. fitness, outdoor

activities, which have also gained popularity in the domestic market. Chinese production

of all sorts of sports goods is concentrated in the Shanghai, Jiangsu, Fujian Provinces, and

are directly exported from these regions. The huge investments in technical and design

expertise from EU manufacturers in China and easier communication within the country

and to the outside world have stimulated this expansion. With the next Olympic Games in

China in 2008, the role of China in the supply of sports goods will continue to increase.

Taiwan (fitness and golf), the Czech Republic (rackets), Canada (camping goods), Japan

(golf) and Romania (skates) and increasingly other Eastern European countries are other

sizeable non-EU suppliers. Major suppliers from developing countries were Pakistan (balls),

India (saddlery) and Thailand (watersports).

The figures below show the major trends and suppliers in each market.

5.1.2 Germany

Germany was the second largest EU importer of sports goods and accounted for 19 percent

of the EU total. In 2003, Germany imported 171 thousand tonnes valued at € 893 million.

30 percent came from Intra-EU sources, as is shown in figure 5.2. A substantial part, i.e.

46 percent of imports came from Developing Countries, which are mainly China, Pakistan

and India. Imports from the Czech Republic were significant.

Between 2001 and 2003, the volume of German imports rose by 6 percent, whereas the

value of imports varied by product group. The greatest increases were registered in

balls and team/field equipment.

Imports of watersports and saddlery were static, whereas skates, camping goods and

fitness equipment were less in demand. Compared to the other countries, Germany is a

large importer of equipment for fitness, skates, watersports, team / field and camping

goods, as is shown in figure 5.2.

The main suppliers of sports goods to Germany were China (36% of total value of

imports), The Netherlands (9%), Austria (6%), the Czech Republic (6%) and France (5%).

Other suppliers include Taiwan (4%), USA (4%), Italy (4%), the United Kingdom (3%) and

Pakistan (3%).

Between 2001 and 2003, supplies from China, The Netherlands, Poland, the Czech

Republic and Pakistan to Germany increased substantially, especially team/field

equipment.

The main suppliers to Germany by product group are shown in figure 5.2, with the share

of developing countries, which is high for each group compared to the other selected EU

markets.

In 2001, imports from developing countries valued € 412 million, which were led by

China and at a distance, Pakistan (4% of supplies by value) and India (2%). Between

2001 and 2003 imports from developing countries rose by 23% in terms of value. Less

significant suppliers from developing countries include Thailand, Vietnam, Malaysia,

Bangladesh and Brazil.

5.1.3 France

France accounted for 16 percent of EU sports goods imports in 2003, a total volume of 144

thousand tonnes, valued at € 848 million.

In contrast to the UK, France imported more than half, i.e. 59 percent, of their sports goods

from Intra-EU and only 15 percent from Extra-EU sources, while 26 percent came from

Developing Countries (see figure 5.3).

Compared to other EU countries, France is a large importer of snowsports equipment,

skates, team/field, watersports, table tennis equipment, camping goods and fishing tackle.

French imports of sports goods increased by 26 percent in volume terms between 2001

and 2003, while the value of imports rose by 8 percent.

Demand for equipment for snowsports (not shown in figure 5.3), fitness, team/field

sports, saddlery and fishing equipment has grown. In terms of volume, golf rose to 1,472

tonnes. On the other hand, French table tennis imports fell in the period under review.

In 2003, most French sports goods came from China (21% of total value of imports),

Belgium (17%), Italy (10%), Spain (10%), Germany (6%), Austria (6%), The Netherlands

(4%), Romania (4%), United Kingdom (4%), USA (3%), Taiwan (2%), and Canada (1%).

Supplies from most of these countries, especially from China (+40% by volume), Belgium

(+39%), The Netherlands (+30%), Romania (+105%) and Vietnam (+245%), increased

in the period under review.

The main suppliers by product group are shown in figure 5.3, with the share of developing

countries for each group.

Imports from developing countries valued € 224 million in 2003 and rose between 2001

and 2003 by 15 percent in terms of volume. Supplies from Pakistan fell, but on the other

hand, Brazil significantly increased its imports, while India fell somewhat to 872 tonnes.

Imports from Vietnam and Thailand also increased.

Other suppliers from developing countries include Malaysia, Mongolia, Indonesia and

Argentina.

5.1.4 United Kingdom

The United Kingdom is the largest EU importer of sports goods and accounted for 18

percent of the total value of EU imports in 2003. In the same year, the United Kingdom

imported 172 thousand tonnes with a value of € 964 million.

As is shown in figure 5.4, around 77 percent of imports came from Extra-EU sources.

Between 2001 and 2003, UK imports increased by 6 percent in terms of value, whereas the

volume of UK imports rose by 36 percent, from 126 to 172 thousand tonnes in 2003.

Imports of golf equipment valued € 276 million, thereby representing 29 percent of the UK

total, which is high compared to the other EU countries. In the past few years, importers

could benefit from the strength of the Pound Sterling.

Since 2001, UK imports of golf equipment increased by 10 percent in terms of volume. It

should be noted here that around 20 percent of golf equipment is re-exported to other

EU countries.

Between 2001 and 2003, UK imports by value of most product groups increased,

particularly camping (+56%), balls (+24%), team/field sports (+3%), and saddlery

(+6%).

The main suppliers of sports goods to the United Kingdom are China (29% of total value

of imports), USA (26%), Taiwan (7%), The Netherlands (6%), Italy (5%), Germany (4%),

France (3%), and India (3%). Other significant suppliers are Pakistan, Japan, Canada,

Denmark and Thailand.

The main suppliers by product group are shown in figure 5.4, with the share of developing

countries, which is high particularly for gloves, balls, camping goods and saddlery.

UK imports of sports goods from developing countries valued € 354 million, an increase of

11 percent over 2001 imports. In terms of volume, imports from developing countries

increased by 45 percent between 2001 and 2003, mainly from China, Thailand, Pakistan

and India. Other suppliers from developing countries include Vietnam, Brazil, Philippines

and Malaysia.

5.1.5 Spain

In 2003, Spanish imports of sports goods were 51 thousand tonnes, or € 305 million,

which represented 6 percent of total EU imports. Much of Spanish sports goods demand is

covered by domestic production (e.g. balls, watersports).

Spain imported 59 percent of its sports goods from other EU countries, 13 percent from

Extra-EU sources, while 28 percent came from developing countries. Between 2001 and

2003, Spanish imports increased by 35 percent by value and 28 percent by volume.

Equipment for fitness, golf, team/field, fishing and balls increased in demand. In terms of

volume, imports of all product groups, except camping and table tennis increased.

20 percent by value of Spanish imports came from China. Other large suppliers to Spain

include France (21%), Italy (10%), the United Kingdom (6%), Belgium (5%), Portugal (5%),

Germany (4%), USA (4%), Pakistan (4%), The Netherlands (4%) and Taiwan (3%),

Imports of sports goods from developing countries was valued at € 86 million. In terms of

volume, imports from developing countries rose by 32 percent between 2001 and 2003,

largely attributed to more supplies from China, while supplies from Malaysia and Philippines

decreased. On the other hand, imports from Pakistan, Vietnam, Thailand, India, Argentina and

Morocco rose in the period under review.

5.1.6 Italy

Italian sports goods production accounts for a reasonable part of domestic demand e.g.

fitness, skates, snowsports, waterports. However, many of these articles are outsourced

and are imported in increasing quantities from Asian or Eastern European countries.

In 2003, Italy imported 63 thousand tonnes with a value of € 419 million, representing 8

percent of total EU imports of sports goods.

Around 46 percent of Italian imports was sourced from other EU countries, while 38

percent came from Developing Countries (see figure 5.6).

Like France, Italy is a large importer of snowsports equipment, skates, watersports,

team/field equipment and fishing tackle.

Between 2001 and 2003, Italian imports of skates increased by 20 percent in terms of

value. Balls (+20%), watersports (+10%), camping goods (+50%) and fishing equipment

(+23%) also increased during the period under review.

This is partly due to a shift of production to China, and to a lesser extent, parts of Eastern

Europe by Italian manufacturers (e.g. Benetton, Invicta, Technica and Tacchini).

Imports of fitness and team/field equipment decreased over the review period.

In 2003, most Italian sports goods came from China (28% of total value of imports).

Other suppliers were France (14%), Germany (10%), Austria (8%), Taiwan (4%), USA

(4%), Thailand (4%), The Netherlands (4%), Belgium (3%), the United Kingdom (3%),

Pakistan (3%), Spain (3%), Romania, Slovenia, Ukraine, India, South Korea, Japan and

Canada.

In the review period, imports from most countries rose especially from China (+24%) and

France (+12%), whereas less was imported from Hungary, USA and Taiwan.

Imports of sports goods from developing countries valued € 158 million, an increase of 11

percent by value over 2001 imports, when overall imports were static. Apart from China,

imports increased from other supplying developing countries - Pakistan (+15%), Thailand

(+80%), India (+5%), and Tunisia (+23%). However, less was imported from Philippines

(-65%), Malaysia (-43%) and Vietnam (-24%).

5.1.7 The Netherlands

In 2003, imports amounted to 81 thousand tonnes, with a value of € 418 million. The

Netherlands accounted for 8 percent of total EU sports goods imports, a high share relative

to its size, which can be mainly attributed to re-exports to other EU countries (roughly 40%

in 2003). European distribution centres for Adidas, Reebok and Asics are based here. In

2003, The Netherlands imported 21 percent from other EU countries, 30 percent from

Extra-EU sources, and 49 percent came from Developing Countries. Between 2001 and

2003, Dutch sports goods imports increased by 25 percent in value and by 59 percent in volume.

Most groups except skates rose in the period under review. Most sports goods came from

China (38% of total value of imports). In terms of volume, Dutch imports from China rose by

60 percent between 2001 and 2003. Other main suppliers were USA (15% of total imports),

Taiwan (9%), Germany (8%), Belgium, Italy, Slovenia, Poland and the Czech Republic. Main

developing country suppliers were Pakistan, Thailand, Malaysia, India and Philippines.

5.1.8 Sweden

In 2003, Swedish imports of sports goods were 31 thousand tonnes, or € 225 million, which

represented 4 percent of total EU imports. Sweden imported 38 percent of its sports goods

from other EU countries, 31 percent from Extra-EU sources, and 31 percent came from

developing countries. Between 2001 and 2003, Swedish imports increased by 13 percent

by value and 41 percent by volume.

Equipment for fitness, team/field, saddlery and skates increased in demand. In terms of

volume, imports of all product groups, except golf, rackets, gloves and table tennis increased.

25 percent by value of Swedish imports came from China. Other large suppliers to Sweden

include USA (10%), the United Kingdom (7%), Denmark (7%), Taiwan (6%), Finland (6%),

France (5%), Italy (4%), Germany (3%), Austria (3%) and Canada (3%).

Imports of sports goods from developing countries was valued at € 70 million. In terms of

volume, imports from developing countries rose by 55 percent between 2001 and 2003,

largely attributed to more supplies from China. Imports from Pakistan, India, Indonesia,

Thailand, India, and Mexico also increased.

5.1.9 The 10 new EU Countries

Data for the 10 new EU countries is currently available for 2003, so comparisons with

earlier years cannot be made. The 10 new EU countries accounted for 5.5 percent of sports

goods imports into the EU25.

Total sports goods imports into the 10 new EU countries were valued at € 303 million in

2003, or 58,000 tonnes. Team/field and fitness equipment were the largest categories. 45

percent of imports were from EU25 countries. The dominant supplier was Austria, followed by

Germany, Italy and France.

Although they vary by new EU country, the main Developing Country suppliers were China

followed by Pakistan, Thailand, India, Malaysia, Philippines, Vietnam and Indonesia. Although

team/field items accounted for the largest proportion, they represented just 33 percent from

Developing Countries, compared with 76 percent for camping goods and 70 percent for balls.

The Czech Republic was the largest importer, importing € 85 million, mainly from China

(33%), Austria (14%) and Germany (14%). Poland accounted for 23 percent of all sports

goods imports to the 10 new EU countries in 2003, valued at € 71 million. Main suppliers

to Poland were China (44%), Austria (9%), France (7%) and Germany (7%). Hungary

imported € 50 million, mainly from China, Italy and Germany, while Slovenia imported

€ 27 million, primarily from China, Austria and Italy. Slovakia imported € 26 million

mainly from China.

5.2 Imports by product group

EU total by product group

The main product groups of sports goods imported by the EU and the development

between 2001 and 2003 are shown in table 5.2. Fitness and team/field sports together

formed more than half, i.e. 57 percent by volume (33% by value), of the EU total.

In terms of value, other sizeable product groups were equipment for golf, snowsports,

balls, camping and fishing tackle, most of which are of relevance to exporters from

developing countries, as well as saddlery. Camping goods itself represented 14 percent

by volume of EU imports.

Table 5.2 Imports of sports goods by product group, 2001-2003 in tonnes

and € 1,000

2001 2002 2003

value €

volume

value €

volume

value €

volume

Total 4,871,247

714,060

5,098,906

766,386

5,219,377

909,466

Extra-EU 3,033,049

512,045

3,078,595

550,388

3,111,431

654,836

Dev. countries 1,635,391 341,602

1,719,764

382,856

1,832,906

482,968

Fitness/gym 849,421

244,682

877,233

269,280

904,932

323,185

Golf 498,426

20,922

597,949

34,990

567,123

35,446

Snowsports 496,650

25,654

494,184

26,273

537,717

29,159

Skates 315,329

33,490

248,758

27,765

276,667

37,216

Watersports 292,045

23,453

310,563

31,165

298,661

29,631

Balls 287,662

39,779

347,251

45,964

372,914

53,861

Saddlery 219,935

20,982

236,564

19,141

229,040

21,828

Rackets 196,619

9,657

192,497

9,725

167,487

11,066

Sports gloves 52,623

1,820

56,817

2,107

52,549

2,144

Table tennis 45,370

7,974

42,697

9,418

43,139

12,161

Team/field sports 777,764

168,973

798,117

164,076

868,240

197,256

Camping goods 477,137

97,125

496,651

103,671

509,224

130,159

Fishing tackle 362,266

19,729

399,626

22,811

391,684

26,353

Source: Eurostat (2004)

In period under review, EU imports of all sports goods increased by 27 percent in volume

terms, i.e. from 714 to 909 thousand tonnes. Equipment for fitness, golf, snowsports,

rackets, balls, fishing tackle, team/field and camping goods were more in demand. In

terms of value, EU imports increased by 21 percent, from € 4,871 to 5,219 million.

In trade statistics a distinction is made according to the different sporting activities with

their related sports goods, which are further divided in terms of the material used.

Specific information about supplies from developing countries can be found in Appendix

2 - EU imports of selected product groups by source. The share of developing countries

in snowsports equipment was only 6 percent and is therefore excluded. The focus in this

section will be on those groups of relevance to exporters from Developing Countries.

Fitness/gym

This product group includes fitness and training equipment for in-home use such as

elliptical trainers, exercise bikes, treadmill/steppers, free weights, other equipment (e.g.

stomach exercisers, AB Toners, rollers, exercise mats) and resistance equipment (small

wrist, hand, thigh exercisers, chest expanders). Larger items of equipment, usually

bought by institutions or fitness centres, are also included here.

In 2003, fitness equipment accounted for 17 percent of total EU imports of sports goods,

representing a value of € 905 million. In terms of volume, this product group accounted

for 36 percent of total imports of sports goods. Between 2001 and 2003, EU imports

increased by 7 percent in value, and by 32 percent in volume. This clearly reflects

downward pressure on prices as well as an increase in consumer participation of a range

of individual fitness activities. All selected EU countries registered zero or negative

value increases of fitness equipment in this period.

As shown in figure 5.10, in 2003, 34 percent of EU imports of fitness equipment came

from other EU countries, (Italy, Germany, the United Kingdom and via Belgium and The

Netherlands), while 29 percent came from China. The USA, Taiwan, Canada, Malaysia,

Thailand, Poland and the Czech Republic are other important suppliers.

Fitness / gym Main suppliers Î Intra-EU 34% (Germany, Belgium, Italy)

China 32%

EU imports 2003 : € 905 million

Taiwan 14%

323,185 tonnes

EU imports trend 2001 and 2003 Î increase by 32% from 244,682 to 323,185t

Increasing from: Decreasing supplies from:

Main suppliers: Belgium (+ 122%)

Taiwan (- 30%)

USA (+ 6%)

Italy (-14%)

Germany (+ 52%)

Dev. countries: China (+ 50%)

Thailand (-53%)

Vietnam (+ 670%)

South Africa (-147%)

Pakistan (+ 55%)

Malaysia (- 4%)

India (+ 50%)

Morocco (-85%)

Turkey (+ 12%)

Supplies from developing countries rose substantially between 2001 and 2003,

especially from China, Pakistan and India. Smaller sources that grew in importance

were Vietnam, Turkey, and Indonesia. In the period of review, EU imports from all

these countries have risen, whereas EU fitness equipment imports from Malaysia,

Thailand, Morocco and South Africa declined.

Table 5.3 EU imports of fitness equipment

Volume Share Value Share

Exercise Apparatus with adjustments

157,439 49 493 54

Other exercise equipment 165,746 51 412 46

Total fitness equipment 323,185 100% 905 100%

Note: EU imports of 2003 are given in tonnes and € million.

Source: Eurostat (2004)

Golf

Within the EU sports goods imports, golf equipment was another growing product group

and represented in 2003 a value of € 567 million. EU imports were led by the United

Kingdom, which represented 52 percent of total EU golf imports in that year. In terms of

value, golf clubs formed the largest sub-category, i.e. 51 percent of EU golf imports,

while by volume golf clubs accounted for 17 percent, at 6,176 tonnes.

Between 2001 and 2003, the imported volume of golf clubs increased by 25 percent,

while imports by value increased from € 235 to 290 million indicating falling values of

golf clubs, which were increasingly sourced in China in the period under review.

In terms of volume, golf balls formed the largest sub-category (61%), as is shown in table

5.4. EU imports of golf balls rose by 126 percent in the period under review from 9,489 to

21,487 tonnes, reaching a value of € 118 million in 2003. Imports of other golf equipment

(e.g. putters, bags, carts, parts and accessories), which formed nearly 28 percent of EU

imports, rose by 20 percent in volume and 9 percent in value between 2001 and 2003.

Table 5.4 EU imports of golf equipment

Volume Share Value Share

Golf clubs 6,176 17% 290 51%

Golf balls

Other golf equipment

21,487

7,783

61%

22%

118

159

21%

28%

Total golf equipment

35,446

100%

567

100%

Note: EU imports of 2003 are given in tonnes and € million.

Source: Eurostat (2004)

The USA supplied 41 percent of golf equipment to the EU, i.e. € 232 million (see figure

5.10). In terms of volume, EU imports of golf equipment from the USA rose by 142

percent, from 7,944 to 19,236 tonnes in the period under review. Other large suppliers

of golf equipment were the United Kingdom, China, Taiwan and France. These figures

are underpinned by increased television coverage of international golf events.

In 2003, the share of developing countries in supplies of golf equipment by value was

rather low (around 16%), whereas by volume the share was 21 percent, which was

dominated by China. Between 2001 and 2003 supplies of golf equipment from China

rose from 3,980 to 6,630 tonnes, an increase of 66 percent.

Apart from China, other developing countries included Thailand (-48% by volume),

India (+136%), Malaysia (+73%), Pakistan (+655%), Vietnam, Indonesia, South

Africa, Philippines and Mexico. Most of these countries supplied other golf equipment

(trolleys, carts, bags, accessories) and golf balls.

Skates

In 2003, skates accounted for 5 percent of total EU imports, representing a value of

€ 277 million, the majority of which were roller and in-line skates (see table 5.5). Since

in-line skating has been a trend from 1996 onwards, imports of these skates, particularly

by Germany, the United Kingdom and France grew enormously. In the late 1990s, the

popularity of in-line skating declined, resulting in oversupply and high stock levels

at importers, and retailers selling them at very low prices.

Table 5.5 EU imports of skates

Volume Share Value Share

Ice skates 3,503 9% 33 12%

Roller / In-line skates

Parts for skates

31,835

1,878

86%

224

81%

Total skates

37,216

100%

277

100%

Note: EU imports of 2003 are given in tonnes and € million.

Source: Eurostat (2004)

Between 2001 and 2003, the value of EU imports of skates decreased by 12 percent. In

terms of volume, EU imports of skates increased by 11 percent, from 33,490 to 37,216

tonnes, a reversal of previous years’ volume declines. This can be partly attributed to the

sustained popularity of in-line skating in France, Germany, Italy and The Netherlands,

and lower import prices.

With regards to the other sub-categories ice-skates and parts for skates, EU imports

increased by 13 percent in terms of volume in the period under review.

Imports from the major supplier, China (49% of total value), decreased from € 158 to

136 million. This compares with a volume increase of 8 percent over the same period.

Other significant non-EU suppliers for skates included Thailand, Romania, Canada, USA,

Taiwan and Hong Kong.

In 2003, the share of Developing Countries in supplies of skates (by volume) was 64

percent, the majority of which is supplied by China. Apart from China, other Developing

Countries supplying skates to the EU included Thailand (6% of total volume of EU imports),

Malaysia (0.2%), and smaller supplying countries such as Tunisia, Mexico, and India.

Balls

In 2003, balls represented 7 percent of all EU imported sports goods with a total value

of € 373 million. Within this product group, the largest sub-category were inflatable balls

(footballs, volleyballs, handballs, rugby balls - all made of leather, and plastic balls).

Inflatable balls accounted for 65 percent (by value) of the total EU imports of balls, as is

shown in table 5.6.

Between 2001 and 2003, all EU countries imported more inflatable balls. The manual

stitched leather balls from Pakistan and India are suffering at the expense of cheaper

machine-stitched leather balls from China. Overall, the EU imports of inflatable balls

increased 45 percent by volume and 33 percent by value, from € 186 to 248 million in

the period under review. However, their overall share of the category reduced as tennis

balls increased their share.

Tennis balls accounted for 20 percent of all imported balls by value and between 2001

and 2003, EU imports of tennis balls increased from 7,179 to 9,624 tonnes. In 2003,

the EU imported tennis balls were valued at € 74 million, compared with € 56 million in

2001. Imports of the sub-category other balls include cricket, polo, hockey, baseball etc.,

and increased by 13 percent in volume in the period under review.

Table 5.6 EU imports of balls

Volume Share Value Share

Tennis balls 9,624 18% 74 20%

Inflatable balls

Other balls

33,518

10,719

62%

20%

248

66%

14%

Total balls

53,861

100%

373

Note: EU imports of 2003 are given in tonnes and € million.

100%

Source: Eurostat (2004)

In 2003, 37 percent of EU imports of balls came from other EU countries, as is shown in

figure 5.8. Within the EU, Ireland, Germany, Italy and the distribution centres of Nike in

Belgium and Adidas in The Netherlands supplied most inflatable balls to other EU

countries.

Pakistan, the largest football manufacturer in the world, accounted for 22 percent of total

value supplies of balls to the EU in 2003. Other important non-EU sources include China

(20% of supplies), Thailand (5%) and India (5%). There is a move from Pakistan to

China in the supply of balls driven by lower costs.

In terms of volume, the share of developing countries in supplies of balls was 64 percent.

Smaller supplying countries include Thailand (5%), Philippines (5%), Indonesia, Morocco,

Vietnam, Mexico, Malaysia, Cambodia and Venezuela. Statistics concerning the

development of EU imports of balls can be found in Appendix 2.

Watersports

Demand for watersports equipment in the EU increased by 26 percent in terms of

volume, from 23,453 to 29,631 tonnes in the period under review. In 2003, watersports

equipment accounted for 6 percent of total EU imports, representing a value of € 299

million. Within the EU, Italy and France were the largest importers.

Waterskis and surfboards accounted for more than half of total EU imports of watersports

equipment, as is shown in table 5.7. Between 2001 and 2003 imports of this sub-category

increased by 26 percent in volume terms reaching 16,200 tonnes in 2003. In the same

period EU imports of inflatable vessels, the second largest sub-category, increased by 34

percent, from 8,169 to 10,939 tonnes. Imports of sailboards increased by 2 percent.

Table 5.7 EU imports of watersports equipment

Volume Share Value Share

Sailboards 2,491 8% 54 18%

Waterskis, surfboards

Inflatable vessels

16,201

10,939

55%

35%

156

52%

30%

Total watersports equipment

29,631

100%

299

100%

Note: EU imports of 2003 are given in tonnes and € million.

Source: Eurostat (2004)

More watersports equipment (41% by volume) was imported from China, followed by

Italy, France, Spain and USA, all of which increased their supplies to the EU, with the

exception of France. In 2003, around 53 percent of the value of EU watersports

equipment imports came from other EU countries, as is shown in figure 5.8. In the

same year, China supplied 19 percent of watersports equipment (by value) to the EU.

Other supplying developing countries include Thailand (+55%), Sri Lanka, Vietnam,

South Africa, Tunisia, Indonesia, Malaysia, Mexico, Venezuela, Turkey and Costa Rica.

Racket Sports

Rackets/table tennis: EU imports of rackets increased by 15 percent in terms of volume,

at 11,066 tonnes in 2003, valued at € 167 million. As with golf and skating equipment,

the average prices of rackets decreased. This was primarily due to the declining popularity

of squash and badminton and an oversupply of titanium rackets. On the other hand, recent

innovations in rackets by Wilson (anti vibrating effect - see Chapter 3.2) have stimulated

demand. Tennis rackets formed 68 percent of total EU imported rackets, valued at € 113

million, a 15 percent decrease over € 133 million in 2001.

Between 2001 and 2003, Germany increased their imports of rackets. In terms of volume,

China supplied 71 percent of all rackets to the EU, followed at a distance by the Czech

Republic, Taiwan, The Netherlands, Belgium, Italy, France and Austria. Suppliers from

developing countries include Argentina, Thailand, Vietnam, Pakistan, Indonesia and India.

As is shown in Appendix 2 - Rackets, supplies from South Africa and Argentina dropped

substantially in the period under review. Imports of table tennis equipment increased by

52 percent, from 7,974 to 12,161 tonnes between 2001 and 2003, and valued at € 43

million, with Germany and China as the leading suppliers.

Sports Gloves

This product group includes all leather and synthetic gloves used for teamsports

(especially cricket, rugby), snowsports, skating, golf, watersports and martial arts and

includes all gloves which are usually bought by institutions or sports centres.

In 2003, EU imports of sports gloves represented a value of € 53 million and 2,144

tonnes. Between 2001 and 2003, EU imports of gloves were static in value, while in

terms of volume, imports increased by 18 percent. Within the selected EU countries,

The Netherlands and Germany are the largest importers.

Most gloves (43% by volume) were imported from Pakistan (+16%), followed by China

(+58%), India (+16%) and Indonesia. Other supplying developing countries included

Thailand, Vietnam, Sri Lanka, Philippines, Malaysia, Mexico and Morocco.

Saddlery

This includes saddles and harnesses, primarily used in horse riding. This would include

leads, knee pads, muzzles, saddle cloths, saddle bags and similar items. For the period

under review, this category was valued at € 229 million, an increase of 4 percent since

2001. 21,828 tonnes were imported in 2003, also an increase of 4 percent since 2001.

China (29%) and India (25%) were the most significant importing countries. Germany

and the United Kingdom were the largest importers within the EU. A number of Eastern

European countries are notable importers, including Ukraine, Romania, Poland and the

Czech Republic. Other significant developing country importers were Argentina,

Vietnam, Pakistan and Tunisia.

Team/field sports

This group includes all equipment used for athletics and team sports. Eurostat only

identifies the sub-category cricket/polo equipment, which accounted for less than 1

percent of this whole product group. Team/field equipment includes a variety of

specialised articles such as nets, goals, disc cones, dome markers, whistles, starting

blocks, protectives, bats or any other team sports-related specialised equipment. This

product group also includes equipment for swimming and paddling pools.

In 2003 this category accounted for 17 percent of all EU sports goods imports, valued

at € 868 million. Between 2001 and 2003, EU imports of team/field sports increased by

9 percent in value and by 17 percent in terms of volume. As shown in figure 5.8, around

47 percent of EU imports came from other EU countries, (France, The Netherlands,

Germany, Italy, Sweden and Denmark), while 24 percent came from China. The USA,

Canada, the Czech Republic and Taiwan are important non-EU suppliers.

In 2003, the volume share of Developing Countries in supplies of team/field sports

equipment was 42 percent (83,432 tonnes), China dominated and between 2001 and

2003, their supplies rose from 55,901 to 75,914 tonnes, an increase of 36 percent.

Other Developing Countries included Pakistan, India (both 0.5% of volume), Indonesia,

Malaysia, Thailand, Sri Lanka, Vietnam, South Africa, Morocco, Mexico, Argentina, Brazil,

Turkey and Philippines.

Team / field sports Main suppliers:

Intra-EU 47% (France, Italy)

China 24%

EU imports in 2003 : € 868 million

USA 11%

197,256 tonnes

Trend in EU imports 2001 and 2003 Î increase by 17% from 168,793 to 197,256t

Increasing supplies from:

Decreasing supplies from:

Main suppliers: China (+ 36%)

Netherlands (-16%)

Italy (+ 34%)

France (-13%)

Germany (-42%)

USA (-18%)

Developing countries: Pakistan (+ 107%)

Indonesia (-71%)

India (+53%)

Tunisia (-90%)

Vietnam (+ 141%)

South Africa (-1%)

Thailand (+ 42%)

Malaysia (+ 101%)

Camping Goods (including equipment for outdoor activities)

EU imports of camping goods grew along with the growing popularity of the recreational

outdoor activities in all selected EU countries. In 2003, EU camping goods imports

represented a value of € 509 million, or 10 percent of imports. Between 2001 and 2003, EU

imports of camping goods increased by 7 percent in value and 34 percent in volume terms.

Tents accounted for 52 percent of the total value of EU imports of camping goods, as is

shown in table 5.8. Tents manufactured from synthetic fibres formed the largest part

within this sub-category and EU imports between 2001 and 2003 have grown by 27

percent (volume terms). EU imports of tents made of textiles increased by 40 percent and

tents made of cotton fell by 14 percent.

Sleeping bags accounted for some 22 percent of EU camping goods' imports (by value),

which increased by 8 percent between 2001 and 2003, to a total value of € 113 million.

Imports of air mattresses increased by 26 percent, although cotton air mattresses

declined by 25 percent in the period under review.

Table 5.8 EU imports of camping goods

Volume Share Value Share

Tents (cotton) 3,262 2% 19 4%

Tents (synthetic fibres) 43,313 33% 217 43%

Tents (textile)

Air mattresses (cotton)

6,306

2,631

Air mattresses (textile) 7,195 6% 23 5%

Miscellaneous camping (cotton) 5,991 5% 22 4%

Miscellaneous camping (textile)

Sleeping bags

36,366

25,095

28%

19%

113

15%

22%

Total camping goods

130,159

100%

509

100%

Note: EU imports of 2003 are given in tonnes and € million

Source: Eurostat (2004)

51 percent of camping goods came from China, while other EU countries (Germany,

Belgium, France, The Netherlands and Denmark) supplied 31 percent to the EU, as is

shown in figure 5.8. Eastern European countries e.g. Poland, the Czech Republic, and

Slovenia are other sizeable suppliers to the EU. Developing country supplies of camping

goods other than China included Vietnam (2% of EU imported volume in 2003), Brazil,

Bangladesh, India, Pakistan, Indonesia, Thailand, Malaysia, Turkey, Tunisia, Sri Lanka,

Philippines and El Salvador. Between 2001 and 2003, EU imports from most of these

countries rose, whereas EU imports from Thailand, Sri Lanka and Philippines decreased.

Fishing Tackle

Demand for fishing tackle in the EU has increased by 20 percent in terms of value, from

€ 362 to 435 million between 2001 and 2003, partly due to oversupply of fishing rods

sold at very low prices. EU imports of all sub-categories increased in terms of volume,

especially fishing hooks (+88%) in the period under review. Nevertheless, decreasing

values of imported fishing tackle in relation to volumes indicate falling prices in all sub-

categories. As is shown in table 5.9, fishing lines account for the biggest share of EU

fishing tackle imports (around 42% by value), followed by rods and reels.

Table 5.9 EU imports of fishing tackle

Volume Share Value Share

Fishing rods 7,000 27% 119 30%

Fishing hooks 1,758 7% 33 8%

Fishing reels

Fishing lines

3,747

13,848

14%

52%

163

20%

42%

Total fishing tackle

26,353

100%

392

100%

Note: EU imports of 2003 are given in tonnes and € million.

Source: Eurostat (2004)

EU suppliers, especially Italy, France, the United Kingdom, Germany, and The

Netherlands accounted for 33 percent of total EU imports of fishing tackle. Significant

non-EU suppliers included China (36% of supplies), South Korea (5%), USA (5%),

Japan (5%) and Taiwan. Suppliers from developing countries were Malaysia, India,

Philippines, Thailand, Tunisia, Madagascar, Kenya, Vietnam and South Africa.

5.2.1 The 10 new EU Countries

While there is some local production, the 10 new EU Countries are sizeable importers of

sports goods, 45 percent of which was imported from the EU25 in 2003. The Eastern EU

countries represented 85 percent of these imports, with 11 percent from the Baltic States.

The Czech Republic is the largest new EU Country importer of sports goods, but on a per

capita basis, Slovenia is the highest, as per table 5.10.

Table 5.10 Sports Goods imports by the 10 new EU Countries, 2003 € million

Eastern EU countries Baltic States

Pol Czech

Hung Slvak Slven Lat

Eston Lithua

Cyprus

Mal

Total 71 85 50 26 27 12 9 11 9 4

Intra-EU 25 26 41 18 14 17 7 4 4 4 2

Extra-EU 25 45 44 32 12 10 5 5 7 5 2

Team/field 8 17 10 5 4 2 1 2 2 0.3

Fitness

10 9 14 3 3 2 2 2 3 1

Fishing 10 4 7 2 1 2 1 2 1 1

Camping 8 7 5 2 3 1 1 1 1 0.3

Balls 7 5 3 2 1 1 1 1 1 0.2

Skates 4 4 2 3 2 1 1 1 0.1

0.03

Watersports 4 3 2 1 1 1 1 1 1 0.5

Source: Eurostat (2004)

The Eastern EU countries are significant importers of team/field and fitness equipment, as

well as fishing tackle and camping goods. Almost 30 percent of Hungary’s imports are

fitness equipment. Team/field equipment is also a notable contributor to imports in

Hungary and the Czech Republic. While Cyprus and Malta account for just 4 percent of

the 10 new EU Country imports, on a per capita basis they rate highly.

5.3 The role of developing countries

China, Pakistan, India and Thailand dominate the supply of sports goods. In 2003, they

accounted for 95 percent of volume supplies to the EU from developing countries. In the

past few years, Malaysia, Vietnam, Philippines, and Indonesia have become important

suppliers. In other continents such as Latin America and Africa, it is difficult for exporters

to obtain a significant position because:

• In most countries, sports goods are handmade and labour intensive. Production

capacity, the level of technology, flexibility, good communications, product

innovations and variety in design are limited.

• EU importers continue to contract foreign manufacturers in Asian (especially China)

and Eastern European countries, which are 'closer' and more flexible in terms of

meeting their specific requirements.

• It is hard and expensive for many developing countries to meet the high quality

requirements (ISO) and strict safety standards often demanded in the EU market.

Between 2001 and 2003, exports from developing countries to the EU showed a steady

increase. The volume of imports rose by 41 percent from 342 to 483 thousand tonnes,

valued at € 1,832 million in 2003. The largest increases were supplies from China,

Pakistan, India, Philippines, South Africa, Brazil, Argentina, Mexico and Turkey, while

less was imported from Sri Lanka, Indonesia and Tunisia, as is shown in table 5.11.

Table 5.11 Largest increases in supplies of sports goods from Developing Countries

to the EU, 2001-2003, in tonnes and € 1,000

2001 2002 2003 vol incr %

value €

volume

value €

volume

value €

volume 2001- 03

TOTAL 4,871,247

714,060

5,098,906

766,386

5,219,377

909,466

+ 27%

Dev. counts 1,635,391

341,602

1,719,614

382,856 1,832,906

482,968

+41%

Asia 1,561,451

336,156

1,666,090

378,085

1,775,190

476,050

+42%

China 1,223,768

296,823

1,300,888

334,449

1,408,699

424,325

+ 43%

Pakistan 99,033

10,963

122,785

14,953

116,422

16,058

+ 46%

India 71,141

8,838

81,312

10,659

80,134

12,070

+ 37%

Thailand 80,843

6,813

62,993

5,226

70,674

6,857

+1%

Malaysia 23,274

5,612

27,225

5,527

24,247

5,778

+3%

Vietnam 26,898

3,301

29,640

3,455

30,061

5,664

+72%

Philippines 15,030

1,779

17,241

2,084

21,193

2,732

+54%

Indonesia 11,680

1,448

14,545

1,217

11,452

1,360

-1%

Sri Lanka 8,660

424

7,977

312

6,398

220

- 48%

Bangladesh 706

124

780

5,517

864

+597%

Africa

24,450

1,838

28,615

2,078

25,074

1,979

+ 8%

Tunisia 12,597

667

14,162

705

10,437

727

+ 9%

Morocco 4,071

432

4,845

334

4,404

212

-51%

South Africa 4,123

627

5,573

878

6,420

918

+46%

Madagascar 1,995

2,452

1,851

-24%

Latin Amer.

18,294

1,179

18,895

1,540

19,956

1,928

+63%

Brazil

2,948

437

4,427

736

4,475

874

+100%

Argentina

8,977

214

6,750

272

6,447

304

+42%

Mexico 2,245

161

3,922

257

5,506

325

+102%

Colombia 671

981

898

146

+90%

El Salvador 640

532

511

+ 11%

Paraguay 658

846

858

+37%

Other

31,196

2,429

6,164

1,153

12,686

3,011

+24%

Turkey

3,590

639

4,376

854

6,004

1,037

+62%

Source: Eurostat (2004)

Import statistics by developing countries to the EU can be found in Appendix 2.

Between 2001 and 2003, the EU imported more of all product groups, especially

equipment for fitness, balls, rackets, golf, saddlery, team/field sports, camping goods

and fishing tackle from developing countries. China now dominates the supply of most

product groups, as is shown in table 5.12.

Table 5.12 EU imports from Developing Countries by product group, 2003

DC supplies Major supplies from Developing Countries to the EU

Product group Million € % of total EU import value of each product group

Fitness/gym 316 China (32%), Malaysia (1%), Thailand (0.3%), Pakistan (0.5%),

India (0.2%), Turkey (0.2%),

Balls 218

Pakistan (22%), China (20%), India (4%), Thailand (4%),

Philippines (4%), Indonesia (1%), Morocco (1%), Vietnam (1%),

Malaysia (0.1%), Mexico (0.1%),

Skates 157 China (49%), Thailand (7%), Malaysia, Tunisia, Mexico, Pakistan,

India, Indonesia, Vietnam, Cambodia

Watersports 91

China (19%), Thailand (7%), Sri Lanka (2%), South Africa (1%),

Tunisia (0.5%), Malaysia (0.3%), Vietnam (0.2%), Venezuela

(0.2%).

Golf

91 China (14%), Thailand (0.6%), India (0.5%), Malaysia, Pakistan,

Vietnam, Indonesia, Mauritius, South Africa, Philippines, Mexico,

Sports gloves 34 Pakistan (26%), China (21%), Indonesia (7%), India (4%),

Thailand (2%), Vietnam (3%), Sri Lanka (0.5%), Philippines,

Morocco, Mexico

Team / field

sports

245 China (24%), Pakistan (1%), India (0.8%), Malaysia (0.3%),

Thailand (0.3 %), Mexico (0.3%), South Africa (0.1%), Vietnam

(0.3%), Turkey, Philippines

Camping

goods

290 China (51%), Vietnam (2%), Brazil (0.7%), Indonesia (0.2%),

India (0.2%), Pakistan (0.1%), Turkey (0.2%), Bangladesh

(0.9%), Tunisia (0.1%), Colombia

Fishing tackle 170 China (36%), Malaysia (2%), India (2%), Thailand (1%),

Philippines (1%), Tunisia (0.3%), Madagascar (0.5%), Kenya

(0.2%), Vietnam (0.2%)

Source: Eurostat (2004)

The share from developing countries in the total value of EU imports of sports goods

increased from 34 to 35 percent between 2001 and 2003. This share increased for most

product groups, particularly in equipment for fitness, saddlery, golf and fishing. The

categories in decline were rackets and camping goods. The shares in the period of review

in the supplies from developing countries by product group are shown in figure 5.11.

5.3.1 The 10 new EU Countries

Almost 43 percent of all sports goods imports by the 10 new EU Countries came from

Developing Countries, valued at € 129 million. The highest proportions were made to Poland

and Hungary where Developing Countries accounted for over half of their total sports goods

imports. Poland, the Czech Republic and Hungary are the largest importers from Developing

Countries, accounting for 75 percent of all imports from Developing Countries. Of the Baltic

States, Lithuania had the highest proportion of their imports from Developing Countries.

Fitness accounted for 19 percent of sports goods imports from Developing Countries at a

value of almost € 24 million in 2003. Hungary accounted for almost 30 percent of all

Developing Country imports of fitness equipment. Poland and the Czech Republic accounted

for most of the remainder. China was the dominant supplier, followed by Malaysia.

Camping goods accounted for 17 percent of imports from Developing Countries, primarily

destined for Poland and the Czech Republic. Hungary imported about half the amount of

these countries. China is overwhelmingly dominant as the source of supply.

Fishing accounted for 15 percent of imports from Developing Countries. Almost 40 percent

of this was imported into Poland. Hungary was the next biggest importer, followed by the

Czech Republic. The overwhelming supplier was China, although supplies were imported

from Malaysia, India, Thailand and Philippines.

Team/field imports were 13 percent of all Developing Country imports, valued at € 17

million. The Czech Republic was the biggest importer (from China primarily) with € 5.3

million, followed by Poland (€ 4.3 million from China with smaller supplies coming from

Pakistan).

Poland imported 40 percent of all balls from Developing Countries, whilst the tradition of

skating in the Czech Republic and Slovakia saw those countries dominating the imports.

Table 5.13 Sports Goods imports from Developing Countries by the 10 new

EU Countries, 2003, in € million

Eastern EU Countrie

Baltic States

Pol Czeh

Hung Slvak Slven Lat

Eston Lithua Cyprus Malt

Total 71 85 50 26 27 12 9 11 9 4

45 44 32 12 10 5 5 7 5 2

Extra-EU 25

Dev. countries 37 33 26 10 7 3 3 5 2 1

Team/field 4.3 5.3 3.8 1.1 0.7 0.3 0.2 0.7 0.3 0.1

Fitness 6.5 5.2 6.9 1.5 1.6 0.3 0.5 0.4 0.6 0.3

7.0 3.3 4.6 1.0 0.3 0.6 0.4 1.1 0.2 0.3

Fishing

Camping goods 6.7 6.1 3.3 1.6 1.5 0.6 0.7 1.2 0.2 0.1

Balls 6.1 2.9 2.3 1.1 1.0 0.3 0.4 0.7

0.4 0.2

Skates 2.5 3.5 1.2 1.9 0.8 0.4 0.3 0.4 0.04

0.01

Watersports 1.4 1.1 0.7 0.4 0.5 0.3 0.3 0.3 0.2 0.1

Share DCs in

imports (val)

52% 39% 52% 38% 26% 25% 35% 48% 25% 30%

Source: Eurostat (2004)

6 EXPORTS

6.1 Total exports by the EU

The EU is among the leading exporters of sports goods in the world. France and Italy are

the largest exporters within the EU, reflecting their international leadership role. In 2003, the

EU15 exported 427 thousand tonnes with a value of € 4,118 million. A further 29 thousand

tonnes valued at € 217 million were exported by the 10 new EU Countries.

EU exports of sports goods were led by France, as an important producer of fitness,

snowsports and camping goods. In 2003, French sports goods exports accounted for 17

percent of the EU total by value. This represented 57,712 tonnes, valued at € 708 million.

France was followed by Italy (14% of EU exports by value), Germany (14%), Austria

(13%), the United Kingdom (10%), Belgium (9%), The Netherlands (8%), Spain (5%),

Sweden (3%), Denmark (3%) and Finland (2%).

Between 2001 and 2003, EU15 exports increased by 22 percent in volume and by 7 percent

in value. As shown in figure 6.1, exports by value increased in Germany, Belgium and The

Netherlands. Volume decreases of exports in France (-4%), Italy (-4%) and the United

Kingdom (-9%), contrasted with volume increases in Spain (+22%) and Sweden (+25%).

Appendix 2 lists export statistics for the EU (by country and by product group). The most

important sports goods exported by the EU in 2003 were: equipment for snowsports

(23% of total EU sports goods export value), team/field sports (17%), fitness (13%),

watersports (8%), golf (7%), fishing tackle (7%), camping goods (6%), balls (5%),

saddlery (4%) and skates (4%). Exports to non-EU destinations increased in volume by 8

percent between 2001 and 2003. However, the value of Extra-EU exports decreased by 5

percent. Weaker exports to the USA, Latin America and Japan have offset gains to South

Korea, China and Eastern Europe over this period.

6.2 Exports by the selected countries within the EU

6.2.1 Germany

As the third largest exporter of sports goods in the EU, Germany exported a value of

€ 587 million in 2003, which represented 14 percent of total EU exports. The most

important product groups within German exports were equipment for snowsports, fitness,

team/field sports, saddlery and camping goods. Between 2001 and 2003, German exports

increased by 16 percent in terms of value, with the largest increases in exports of fitness,

snowsports equipment and camping goods. Major destinations of German exports were

other EU countries, particularly Austria and Switzerland, as well as extra-EU counties such

as USA, Russia and Japan.

6.2.2 France

France was the largest exporter of sports goods, exporting a value of € 708 million or 17

percent of total EU exports in 2003. The most important product groups within the French

exports were equipment for snowsports, outdoor sports, watersports, fishing tackle and

skates, with large increases in exports of equipment for watersports, fitness, and rackets.

Exports of camping goods decreased between 2001 and 2003. Major destinations of French

exports were USA, Japan, Italy, Spain, Germany and other EU countries. Switzerland,

Canada, Poland and South Korea were other important non-EU destinations.

6.2.3 United Kingdom

In 2003, the United Kingdom exported 20,600 tonnes of sports goods with a total value of

€ 394 million, or 10 percent of total EU exports. The UK is a sizeable exporter of sports

goods owing to the presence of many specialised manufacturers of sports equipment and it

re-exports much golf equipment, saddlery and fishing tackle. These articles and equipment

for fitness and team/field sports were the most important product groups exported.

Between 2001 and 2003 the volume of British exports decreased by 15 percent, as less golf

equipment was exported. Major destinations of UK exports were other EU countries, USA,

Canada, Japan and Australia.

6.2.4 Spain

Spain exported sports goods valued at € 193 million in 2003. Within Spanish exports, the

most important product groups were equipment for outdoor sports, snowsports, fitness,

and watersports. Large increases in exports of skis, snowboards, surf/sail boards, and

equipment for table tennis and team/field sports were registered. Exports of camping

goods, rackets and balls decreased in the period under review. Major destinations of

Spanish exports were France, Portugal and other EU countries, as well as USA, Andorra

and Japan.

6.2.5 Italy

Italy had a 14 percent share of all sports goods exports and exported a volume of 61,691

tonnes, valued at € 590 million in 2003. Within the Italian exports, the most important

product groups were equipment for outdoor sports, watersports, fitness and skates, as

well as snowsports. Between 2001 and 2003, Italy exported more fitness equipment,

skates and other watersports articles. Exports of saddlery, camping goods, snowsports and

golf equipment decreased in the period under review. Major destinations of Italian exports

were USA, France, Germany, the United Kingdom, Spain and other EU countries.

6.2.6 The Netherlands

The Netherlands exported a total volume of 39,361 tonnes of sports goods valued at

€ 344 million in 2003.The Netherlands was a sizeable exporter of sports goods

primarily because of re-exporting by large distribution centres owned by Adidas,

Reebok and Asics. In 2003, around 45 percent of Dutch exports were re-exports to

other countries. The most important product groups were fitness/gym, balls,

team/field, golf, fishing tackle and camping goods, with large increases in exports of

fitness equipment, balls, golf and fishing tackle. Major destinations of Dutch exports

were other EU countries, particularly Germany, as well as USA and Russia.

6.2.7 Sweden

Sweden had a 3 percent share of all sports goods exports and exported a volume of

13,912 tonnes, valued at € 141 million in 2003. Within Swedish exports, the most

important product groups were equipment for outdoor sports, fishing tackle, fitness and

skates, as well as camping equipment. Between 2001 and 2003, Sweden exported more

balls, camping goods, fishing and fitness articles, skates, snowsports and team/field

equipment. Exports of watersports equipment decreased in the period under review. Major

destinations for Swedish exports were USA, Finland, the United Kingdom, Denmark,

Germany, Japan and other EU countries.

6.2.8 The 10 new EU Countries

In 2003 sports goods exports from the 10 new EU Countries amounted to € 217 million, of

which 24 percent was camping goods and 22 percent was team/field. 74 percent of exports

were made to EU25 countries led by Germany and Austria. Over 10 percent of all exports

were to the USA. Just 1 percent of these exports were made to Developing Countries.

The Czech Republic is the largest exporter, accounting for 46 percent of the total. Over

half of all their exports are camping goods and team/field equipment. Germany receives

most of their exports, followed by the USA and Austria.

Poland accounted for 18 percent of the 10 new EU Countries’ exports, the vast majority

being camping goods destined for The Netherlands and Germany. Other major exports

were team/field equipment (€ 5.2m), fishing (€ 5.4m) and fitness equipment (€ 4.6m).

The Baltic States account for 7 percent of all the 10 new EU Countries’ exports, of which

Estonia is most active, particularly to Sweden and Finland. Malta & Cyprus have negligible

sports goods exports.

Table 6.1 Sports Goods exports by the 10 new EU Countries, 2003, in € million

Eastern EU countries Baltic States

Pol Czeh

Hung Slven Slvak Lithua Eston Latv Cyprus

Malt

Total 38 101 12 40 9 1.5 12 1.5 0.2 1.0

Extra-EU25 4.2 31.3 3.8 10.0 2.1 1.0 9.2 1.0 - 0.1

Team/field 5.2 30.6 2.1 1.4 6.5 0.2 1.3 0.6 0.1 0.04

Fitness

4.6 2.7 4.1 0.7 0.2 0.2 1.0 0.02 0.01 0.1

Fishing 5.4 1.8 2.0 0.1 0.1 0.5 0.3 0.5 - -

Camping goods 16.4 21.2 1.0 10.5 0.2 0.1 2.1 - - -

Balls 0.3 2.6 0.7 0.1 0.1 0.1 0.3 - 0.1 -

Skates

0.06 3.4 0.3 0.4

0.07 0.05 0.2 - - -

Watersports 0.3 4.3 0.2 0.07 0.2 0.1 1.2 0.3 - 0.1

Source: Eurostat (2004)

An overview of EU exports by country and product group can be found at the end of

Appendix 2.

7 TRADE STRUCTURE

7.1 EU trade channels

Large manufacturers/suppliers have their own distribution networks and sell directly to

consumers. Smaller manufacturers operate through importers/wholesalers and/or agents.

In the past few years, sports goods have become much more widely available within all

the selected EU markets. The key drivers have been increased demand for sports goods

in the mid 1990s and rising sales by non-specialised retail outlets such as clothing stores,

department stores, hyper- and supermarkets. In 2003, sales of sports goods by these non-

specialists was around 30%. The distribution structure for sports goods is shown below:

Manufacturers/suppliers

Over 80% of sport goods are produced outside the EU, mainly in Asian countries, especially

China. Most brand manufacturers/suppliers have their headquarters in the USA or in the EU.

Powerful international brands dominate. Brands such as Nike, Reebok, Adidas and Puma

have become recognisable international symbols of quality, prestige and technical innovation.

Symbols such as Nike’s “swoosh” device and Adidas’ three stripes are instantly recognisable,

transcending linguistic and cultural boundaries.

The major brands have all moved into retail with a network of concept stores. Nike has the

Niketown model with stores in London and Berlin, as well as a network of franchised stores

in France, Germany and the United Kingdom. Germany’s Puma has stores in Milan, Rome,

London and Paris. Italy’s Fila has the Fila Sport Life Store network with stores in Milan and

Paris. Niche brands such as surf and boardwear specialist Quiksilver are becoming more

recognisable. They have their own network of stores around Europe.

Brand manufacturers have their own exclusive importers in each country who are engaged

in sales and service. The actual distribution of the goods is controlled by their distribution

centre. For example, Nike has its distribution centre for all EU countries in Belgium

(Laakdal), while Adidas has its centre in The Netherlands (Moerdijk). Amer, which owns

the Wilson brand, is opening a new European distribution centre at Uberherrn in

Germany, close to the French border.

Most centres have advanced order control systems and are able to supply sports goods to

any EU country within 48 hours. Deliveries can be made to importers/wholesalers, buying

groups, large retailers or to their own concept stores. Concept/flagship or single brand

stores are strongly represented in France and Italy and are expanding in the other EU

countries. Most are smaller stores in sports resorts, sized between 80 and 150 m².

Factory outlets, established by manufacturers to sell ‘out of date articles’ from unsold

stock direct to consumers, are growing in importance in the EU. Due to a lack of adequate

legislation, they are a serious threat to sports retailers, especially in southern EU countries.

Here, FOC (Factory Outlet Centre) schemes are being built closer to major cities and there

is no clear definition of the goods that are allowed to be sold in these centres.

Brand manufacturers act more like suppliers now since they hardly produce any articles by

themselves. Adidas-Salomon (Germany) and Nike (USA) dominate the EU sports goods market,

although it was announced in March 2005 that Quiksilver is setting out to rival these giants

by buying the loss-making French ski-maker Rossignol. They aim to represent in outdoor

what Nike and Adidas represent in teamsports.

Adidas-Salomon: Founded by Adolf Dassler, the company originated in Germany and

has a long history in football and athletic footwear. In 1998, Adidas acquired Salomon,

France's largest manufacturer of golf (Taylor Made) and ski equipment. Adidas is the

official sponsor of the 2006 football world cup. Most goods are made in Asia (China,

Pakistan, India, Taiwan, Vietnam, Indonesia), Eastern Europe and North Africa (Morocco).

In Europe they have one small factory for footballs. See also http://www.adidas.com

Nike started in the 1970s as running shoe specialists and now their product range now

includes sports footwear, clothing, caps, some equipment (e.g. balls, golf), bags and

sport-related accessories. The popularity of brands, the Americanisation in Europe and

their aggressive marketing have all been crucial to their success. In London, they opened

their concept store Niketown (6,395 m²), while similar stores have opened up in Berlin

(4,500 m²)and Paris. Similar to Adidas, most goods are made in Asia (China, Pakistan,

India, Taiwan, Vietnam), Latin America, Eastern Europe and North Africa. See also

http://www.nike.com

Importers/wholesalers

Importers purchase directly from foreign manufacturers, sell the sports goods in their

own country and are familiar with the local market situation. Those importers who are not

exclusively tied to a brand manufacturer usually buy and sell the goods, take care of

import/export procedures and hold items in stock. Many importers sell directly to retailers

through permanent exhibition centres, while others have their own sales staff who visit

retailers on a regular basis and take orders.

Wholesalers often supply independent sports shops and play a major role in the supply of

sports equipment. They either specialise or carry a wide variety of products or brands. The

trend of bigger retailers and buying groups going outside the traditional distribution system,

along with the development of parallel imports and brand imitations, has caused wholesalers

to reconsider their position in the distribution structure. This has encouraged wholesalers,

who were losing part of their business, to operate on a regional basis.

Agents

These are mainly independent companies which negotiate and settle business on the

instructions of their principals and act as intermediaries between buyer and seller. They

do not buy or sell on their own account and work on a commission basis. Most agents

represent more than one exporter, although competition is avoided. Agents are more

common in southern EU countries.

Buying Groups

These groups act as purchasing agents for their individual members (retail shops) and act

as financial intermediaries between suppliers and retailers. Before each season starts,

sports collections are selected by committees which are made up of members of the

buying group. The largest European buying group is Intersport, with 3,300 member outlets

in the selected EU countries (sales in 2003: € 4,000 million). Their family focussed stores

offer much ‘expert advice’ on sports.

Sport 2000 is the second largest buying group with sales of € 2,600 million achieved by 2,400

stores. These stores are more fashion focussed and recently larger sized Sport Point Stores

(1,000 m²) were opened up in Germany, France and The Netherlands in order to compete

with clothing stores. Other major buying groups include Twinner/Technicien du Sports,

mainly operating in France, Italy and Spain.

The objective of the buying group is to make it possible for its members to deal with the

growing power of large sports chain stores. As a group, they also have the necessary buying

power to obtain greater discounts from suppliers. Many retailers in most of the selected EU

countries are connected to buying groups.

Retailers

As was shown in figure 7.1, the structure of sports goods distribution can be broadly

divided as follows:

 Specialist distribution, where all retailers specialise in sports goods or in sub-

sectors such as outdoor/camping goods or fishing tackle. In 2003, the share of retail

sales accounted for by specialist retailers in the six selected countries averaged 70%.

Specialists can be organised or independent. Organised retailers are the large chain

stores, franchised stores and concept stores. Independent retailers are smaller shops,

which are more common in southern EU countries.

 Non-specialist distribution, are all outlets mainly selling other items, but which

include sports goods. For example, department stores, hypermarkets, supermarkets,

clothing variety stores, shoe shops, mail order companies. In 2003, the share in EU

sports goods sales by non-specialist retailers was around 30% and is expected to grow

further in the coming years.

Retailers – specialised outlets

In 2003, the floor space of a retail outlet averaged over 1,000 m², instead of 200 m²

thirty years ago. In Italy and Spain, however, the market share of small outlets is still

high.

Chain stores are stores with the same name under central management. Along with the

growth of out-of-town shopping centres, sports chain stores, or category killers, are now

well represented in all selected countries. They can be also found in the high street and in

location e.g. at wintersports, mountain or watersports resorts. The more general type of

chain stores (or megastores) carry the major brands, have sports-specific sections, offer

a broad range and offer additional services e.g. test areas or restaurants. Their main

target groups are recreational sportsmen or women.

The number of smaller regional chain stores, operating in a specific area has grown

fast in France, Italy and Spain. Specialised chain stores in e.g. outdoor/camping,

fishing, skating, golf, expanded in all countries.

In 2003, Décathlon was the largest chain store operation with huge outlets (sized between

2,000 and 10,000 m²). Decathlon is followed by JJB sports (UK), John David Group (UK),

Sports World (UK) and Go Sport (France), and the department stores Karstadt (Germany)

and El Corte Inglés (Spain).

Concentration in the sports goods trade has increased rapidly during the past few years.

Significant chain store retailers have reached saturation point in their own country due

to local planning restrictions in respect of shopping centres and have looked abroad for

expansion.

Independent sports shops are distinguished in two categories, both having different

product mixes:

 Single sport shops, which sell mostly equipment. Nowadays they also stock clothing

to attract customers. This type of shop can be also found on the spot and is fairly

common for golf (pro-shops), horse riding, tennis, snowsports, skateboards and

includes clubs shops (football, fitness).

 Fashionable sports shops, which have an emphasis on branded sports clothing and

footwear. Due to changes in the sports goods market, some of these shops have been

forced to sell more sportswear than equipment, while others have reduced their risks by

becoming members of a buying group.

Franchised stores are more common in France. Recently they have opted for more

specialisation in one particular field of sports e.g. sliding sports (e.g. Quai 30) or fishing

(Europêche with 140 outlets).

Retailers – non-specialised outlets

The success of chain stores stimulated the total sports goods market, which in turn

attracted the attention of non-specialised outlets e.g. department stores, hypermarkets

and discounters. The increased sales made by all these outlets in the past few years

illustrates the trend for sportswear to be increasingly worn as leisurewear. They started

to sell sports footwear, particularly fast moving items, followed by trainers, replica kits,

other popular sports clothing and sports goods (fitness, balls, rackets, camping goods).

In 2003, non-specialist retailers accounted for 30% of sports goods sales.

Department stores are important in the sports goods market by selling sports

equipment and, more recently, sportswear. The German Karstadt (170 stores), Kaufhof

(120) and the Spanish El Corte Inglés (60) are leaders in the EU sports goods market.

They have sportswear departments and concessions in their stores, including their own

brand. Department stores in other countries e.g. Galeries Lafayette (France), John Lewis

(UK), Coin (Italy) and V&D (The Netherlands) also carry a wide range of sports goods.

Hypermarkets, supermarkets and discounters have grown in importance. They have

had a major influence on the increased price competition in the whole market, with

discounters selling at low prices. Like most department stores, they concentrate on fast-

moving sports goods and seasonal items, which require minimal advice and service.

Some large retail organisations e.g. Carréfour (France), Metro and Aldi (Germany), who

produce their own sports goods (mostly sportswear), are integrating manufacturing with

mainstream fashion retailing to increase their profit margins.

Mail order increased its share in the sports market, especially in the UK. Catalogues are

more fashion focussed and offer the leading brands of sportswear and some sports

equipment (outdoor, fitness, golf). Fitness equipment is also sold through television from

US manufacturers. In the selected countries, major mail order companies include Argos

(UK), Otto, Neckermann, Quelle (Germany) and Trois Suisses, Camif and La Redoute

(France). In addition, large sports retailers (Décathlon, Go Sport, Sport Scheck) and

specialists in rugby (Rugby Shop), tennis (Tennis Pro) offer their own mail order services

on the Internet. Catalogues can be downloaded from Internet sites, picked up in-store or

mailed to consumers. The mail order business has now shifted to e-commerce.

The internet is becoming a significant source of information as well as direct purchase.

Mail order companies and retailers have created Internet sites for sportswear and

equipment. With technological improvements such as interactive TV, this sales channel

is likely to grow. However, there are still many consumers who prefer to be able to try

out items before they buy and are suspicious about giving their credit card number.

Retailers versus suppliers

The increasingly concentrated and powerful retail sector has strengthened its position.

This has had a negative impact on suppliers, smaller EU manufacturers, and importers

who are being squeezed out in some cases. Large retailers source direct from any country

or buy overstocked items at very low prices. Décathlon produce their own labelled sports

equipment, clothing and footwear, mainly in France.

For their part, suppliers compete by offering their own discount policies to different retailers

(or buying groups), and expand their own concept stores. In addition, suppliers tend to

pressurise retailers to order earlier and in large quantities. These developments created

a growing mistrust from retailers against suppliers. The main problems for both were

summarised in a survey by SRE Magazine as follows:

 Suppliers' discount policies - (for retailers).

 Suppliers' competition by FOCs - (for retailers).

 Price wars initiated by discounters - (for both suppliers and retailers)

 Competition from large chain stores - (for both suppliers and smaller retailers).

 Competition from non-specialists - (for both suppliers and retailers).

 Suppliers' pressure to order early - (for retailers).

 Supplier's licensed sales to a few retailers - (for retailers).

 Low margins/high costs - (for both suppliers and retailers).

7.1.1 Trade Channels in the selected countries

The supply chain situation is next described in the seven selected countries, followed by

an overview of the supply chain in the 10 new EU countries. The key differences between

these countries and the former EU15 are also highlighted.

7.1.2 Germany

Sports specialists account for 58

percent of retail sales, dominated by

small specialist independent

retailers that are affiliated to buying

groups. The German retail trade is

dominated by the buying group

Intersport (http://www.intersport.de

)

which has over 1,700 outlets.

Intersport is an international sports

buying group with representation in

most European countries. Their

presence in Germany represents

almost half of their total European

operation. Intersport have recently

signed a partnership agreement with

Adidas to be their main partner for

the 2006 Football World Cup which is

taking place in Germany. Sport 2000 (http://www.sport2000.de

) is another European

buying group that has more members in Germany than other countries.

There are remarkably few specialist multiple chains, although KarstadtSport

(http://www.karstadtsport.de

) and Sportarena (Kaufhof) (http://www.galeria-kaufhof.de)

each have a strong market position. Their parent companies are department stores.

KarstadtSport owns 114 Runners Point and 17 Golf House outlets, but has recently put

them up for sale. Other specialist retailers of note are SportScheck

(http://www.sportscheck.com

) and Decathlon (http://www.decathlon.de). Mail order

accounts for 6 percent in Germany and this channel is a greater threat than other non-

specialists to the specialist sector. Young people are increasingly buying online. The

largest operator is Otto Versand (http://www.otto.de

) which also owns Sportscheck.

There are over 8,000 outlets in Germany selling sports goods of which half of these

are sports specialists.

7.1.3 France

France is a large sports equipment

market in per capita terms, and it is

dominated by sports specialists who

account for 75 percent of retail

distribution. Intersport

(http://www.intersport.fr

) is also

strong in France with 462 outlets,

including Sport Expert, Sport Leader

and La Halle du Sport. Sport 2000

(http://www.sport2000.fr

) accounts for

414 outlets and is planning to open a

new format targeted more specifically

at women. Another major buying

group in France, particularly noted in

the ski equipment market is Twinner –

Technicien du Sport, also known as

Groupe SED (http://www.twinner.org

They operate 238 outlets. Go Sport

also includes the chain Courir and between them operate over 300 outlets

(http://www.groupegosport.com

Decathlon (http://www.decathlon.fr) is the largest multiple retailer of sports goods in

France with 220 outlets. Its market leading position gives it almost 30 percent of the

market. Sports specialists will face continued competition from other channels, particularly

hypermarkets and mail order. Department stores are not seen as a threat. Group SED and

Sport 2000 merged in 2004 to enable them to better compete with rivals Decathlon,

Intersport and Go Sport.

There are 7,950 outlets selling sports goods in France, of which 4,800 are specialists.

7.1.4 United Kingdom

Sports specialists are highly

represented in the UK, accounting for

75 percent of sales of sports equipment.

The market is dominated by chain stores,

particularly JJB Sports

(http://www.jjb.co.uk

) with 425 outlets;

John David Group, formerly JD Sports,

(http://www.jdsports.co.uk

) (350 outlets)

Allsports (http://www.allsports.co.uk

)

with 270 outlets and Blacks Leisure,

(http://www.blacksleisure.co.uk

particularly strong in outdoor sports and

board/extreme sports with 375 outlets

and. Decathlon, Footlocker and The

Athlete’s Foot all have a presence.

Some of these outlets have alienated

many genuine sports enthusiasts with

their emphasis on fashion.

Buying groups are also present. Sport 2000 has an affiliated partner, called Sports World

(formerly Sports Soccer) which is a discount sports specialist. They operate 125 outlets.

Associated Independent Stores, the largest, voluntary, non-food buying group of its kind

in Britain, now owns the exclusive rights to the Intersport trademark in the UK.

The department store channel is important for sports equipment. The largest is the John

Lewis Partnership (http://www.johnlewis.com

). Mail order is also an important sector in

the UK, accounting for 10 percent of sales. In this sector, Argos (http://www.argos.co.uk

)

dominates. They emphasise home gym and keep fit items.

There are 3,500 specialist sports goods outlets in the UK.

7.1.5 Spain

The Spanish market is expected to

outperform the European average over

the next couple of years. Its relatively

young population is a positive factor, as

are increasing levels of sports

participation. 65 percent of retail sales

of sports goods in Spain are sold via

specialist sports outlets. The strongest

non-specialist channels are clothing and

footwear shops and department stores,

notably El Corte Ingles

(http://www.elcorteingles.es

). Whilst it

is not a specialist, El Corte Ingles is the

largest retailer of sports goods in Spain

thanks to its very substantial sports halls

operating in each of its department

stores. 60 of their outlets sell significant

amounts of sports goods. It continues to

open new stores, but the French retailer Decathlon is expanding its presence in Spain.

It may develop a specialist sports format itself, rather like another Spanish retailer,

Grupo Eroski (http://www.eroski.es

) has done with the creation of Forum Sport.

The two major buying groups, Intersport and Sport 2000 have both been successful in

entering the highly fragmented Spanish market. Intersport has 320 outlets, many well

placed close to ski resorts. Sport 2000 operates 200 outlets with the local partner Detail

Sport. The independent lobby is very strong in Spain where there are no fewer than 17

different sports buying groups. However their position is coming under threat from the

growth of multiple chains such as Foot Locker and Coronel Tapiocca

(http://www.coroneltapiocca.com

) that specializes in outdoor sports. Hypermarkets and

the Internet will also challenge the independents in the coming years.

Over 5,000 outlets sell sports goods in Spain, of which over 3,500 may be specialists.

7.1.6 Italy

There are a very large number of small

independent outlets that sell sports

goods in Italy, amongst other things.

More consolidation is expected in this

market in coming years. At present,

sports specialists account for 68

percent of sales of sports goods. The

large sports retailer Giacomelli

(http://www.giacomellisport.com

)

which also owned the Longoni chain,

has recently been purchased after

going into administration at the end of

2003. The retail market in Italy is

improving and further expansion is

expected from groups such as

Decathlon and Footlocker.

Buying groups are important in Italy.

Intersport (http://www.intersport.it

) has merged with the Italian sports chain Cisalfa so

the combined group now has over 450 outlets. Prior to this, Cisalfa had itself been

expanding fast through acquisitions. As well as trading under its own banner, other names

included Big Gym and Este Sport. Sport 2000 (http://www.sport2000.it

) is also active in

Italy, working with Sport Alliance, representing 130 outlets. They have replaced Selezione

Sport that suffered when Giacomelli had financial problems.

Of the 25,000 outlets that sell sports goods in Italy, no more than 4,000 could be

considered to be specialist sports outlets.

7.1.7 Netherlands

Netherlands probably has the

lowest proportion of sports goods

sales accounted for by specialist

outlets (48%). Retailing has been

tough in the Netherlands in the

last couple of years, but they have

performed better than Germany.

Sports participation is high so that

should help the sector.

The country’s two largest non-

food buying groups, Euretco

(http://www.euretco.nl

) and

Intres (http://www.intres.nl

) both

have big interests with their

respective links with Sport 2000

(100 outlets) and Intersport (250

outlets), but also with other sports

fascias (Runnerworld, Sportpoint/Euretco and GOS Sport, Coach Sport/Intres). The

German-based buying group Garant Schuh (http://www.garantschuh.de

) has a presence

using the Fairplay and Outdoor names. Other major sports retailers are Aktie Sport, Perry

Sport and Bever Zwerfsport.

A high proportion of sports equipment is purchased via sports clubs. Department stores

and variety stores are an important sector. Of the 4,300 outlets that sell sports goods,

3,000 are specialists.

7.1.8 Sweden

The Swedish economy has continued to

grow recently when some of the other

major European economies have been

stagnant. Against this background, the

retail environment for sports goods has

been reasonably positive. One of the key

aspects of retailing is inter-Scandinavian

cooperation.

70 percent of sports goods are sold

through the specialist sector. Buying

groups are well established in Sweden.

Intersport operates 140 outlets, and

boasts the largest store in Northern

Scandinavia. Team Sportia, part of Sport

2000, operates a similar number of

outlets. Other major retailers are

Sportringen (http://www.sportringen.se

)

with 89 outlets, Stadium with 79 outlets, and Friluftsbolaget (http://www.friluftsbolaget.se

)

with 29 stores. There are a couple of other specialists which cater for specific sports, such

as Golfstore, and Fenix Outdoor (http://www.fenixoutdoor.se

) which sells outdoor and

camping equipment.

Outside of the specialist sector, one of the major consumer co-operatives, jointly owned

with other Scandinavian co-operatives (http://www.coop.se

) has a chain of 43 hypermarkets

(called Coop Forum) that sell sports goods. Another department store chain called Domus

sells sports goods. Mail order is not very large in Sweden but it is growing quite quickly

and this segment is forecast to become more important.

3,200 outlets sell sports goods in Sweden.

7.1.9 The 10 new EU Countries

The 10 new EU countries offer significant opportunities for exporters from Developing

Countries. They are closest to the Southern European countries in that the trade is

dominated by small independent outlets. However, many of the major international sports

chains are already established. Decathlon is the largest sports retailer in Poland. Drapa

Sport, Giga Sport, and JB Sport are the largest retail stores in the Czech market.

The extent of the strength of the independent sector is emphasised by the relative lack of

buying groups. However in the last couple of years, there have been a number of

developments. The French Groupe Go Sport are in Poland. Prior to being sold, Giacomelli

had outlets in Hungary, Slovakia, Poland, Estonia and Latvia. Associated Independent

Stores (AIS), the UK buying group has outlets in Cyprus. Intersport has 20 stores in The

Czech Republic, 12 in Slovenia, and it has recently opened in Slovakia. Sport 2000, in an

agreement with Garant Schuh, is now in Hungary, The Czech Republic and Poland, as well

as Estonia, Lithuania, and Slovenia.

To tap emerging opportunities in the new countries, it is recommended that exporters link

up with regional distributors located in The Czech Republic, Hungary and Poland. For those

with little knowledge about Eastern Europe and the Mediterranean, the appointment of sales

agents and trading firms based in Western Europe is a viable option.

Sports specialists account for approximately 70% of retail distribution in the 10 new EU

countries and something in the range of 10-15% is accounted for by supermarkets and

hypermarkets, of which the major European retailers are already well-established. An

indication of the main outlets in each country appears in table 7.1:

Table 7.1 Sports outlets in the 10 new EU Countries

Country Total Name of major sports outlets

outlets

Poland 2,000 Decathlon, Go Sport, Giacomelli, Sport 2000, Campus

Czech Rep 3,300 Giacomelli, Drapa Sport, JB Sport, Intersport, Hudy, Hervis,

Hungary 1,650 Sport 2000, Giacomelli, Decathlon, Hervis, Szinga Sport, Intersport

Slovenia 800 Intersport, Sport 2000

Slovakia 1,250 Intersport

Lithuania 650

Estonia 350 Sportland, Kesko

Latvia 500 Kesko

Cyprus N/a AIG

Malta N/a

Source: Mintel, Euromonitor, Trade Estimates

7.2 Distribution channels for developing country exporters

In the case of outsourcing or OEM supplies, as described in Chapter 4, the EU

manufacturer/supplier takes care of the distribution of the goods. However, it is recommended

that exporters should be familiar with the various distribution channels, how to supply them

and be aware of the current issues between suppliers and retailers, as mentioned earlier.

In an environment of increasing competition between suppliers and retailers, and ongoing

inflexibility of suppliers, exporters can offer a good alternative.

Exporters can also benefit by supplying direct to EU retailers (e.g. Décathlon, JJB Sports,

Karstadt, Aldi), who are constantly looking for new sources for their private labelled

sports goods.

In the case of direct sales of sports goods, exporters should be aware that distribution

channels in the selected EU markets are different. Each market has its own preferred distribution

system. For example, the United Kingdom has a diversified system, with multiples and mail

order leading the sales of sports goods.

French distribution is characterised by the presence of many franchised stores. German

distribution is divided into eight main areas and, in order to cover the whole market, it may

be necessary to have a wholesaler in each area. For the geographically small Dutch market,

one importer-wholesaler can handle national distribution very effectively. Although large in

size, distribution in the Swedish market can be achieved via small numbers of contacts, due to

the relatively small population. Distribution in the southern markets of Italy and Spain is far

more fragmented than in the north. Taking these differences into consideration, the following

channels provide the safest and most effective method of distribution for exporters from

developing countries:

 Distribution by use of an importer in each country.

 Distribution through chain stores, buying groups, department stores or

hypermarkets.

 Distribution through mail order.

The relative importance of each channel has already been described in section 7.1.

The advantages and disadvantages of each channel can be found in Chapter 10.3.

Fair Trade organisations are another possibility for exporters. Although it is still a

relatively small sector, there is growing consumer interest. These organisations operate

for the benefit of small producers, farmers, co-operatives and exporters from developing

countries by providing an outlet for their products in EU countries. This sector is also

benefiting from the drive towards greater corporate responsibility, particularly in the

sports goods sector. Many consumers are choosing to buy from sources where there is a

much shorter link to the producer, and where the origins of a particular product are more

transparent and traceable. The main fair trade retailers in Europe are members of the

European Fair Trade Association (http://www.eftafairtrade.org

For example, in The Netherlands, the Fair Trade organisation has six shops and supplies

to 300 ‘Wereldwinkels’ (Third World Shops) in the country. All of these shops sell products

from developing countries ranging from food, clothing to handicrafts. They have recently

started to sell some sports articles e.g. footballs and volleyballs which have been

produced under fair trade conditions in Pakistan. Oxfam has an extensive retail network

around much of Europe and may provide an opportunity.

The Fair Trade organisation buys only products, which are made under humane and

acceptable working conditions (they employ no child labour, for example) and for which

a 'fair' price is being paid. These products tend to be sold at a slightly higher price in the

respective EU markets, but the producer is guaranteed to receive a higher proportion of

the selling price. Sports balls produced in this way have been sold in reasonable quantities

in Italy, as well as Germany and the United Kingdom.

8 PRICES

8.1 Price developments

In general, EU prices of sports goods have declined and are competitive, compared to

those in the USA. In principle, importers control the recommended retail prices fairly

closely, but parallel imports, an oversupply of goods and the increasing importance of

discounters have moved the balance in favour of consumers. This was particularly the

case for the more fashion-led sports clothing and footwear, but also for equipment such

as skates, skis, gloves, rackets, golf clubs and golf balls.

Price cutting and early clearance sales have become regular features of the trade.

Moreover, competition between stores has intensified because of the excessive number of

non-specialist outlets where sports goods are sold (e.g. discounters, hypermarkets, FOCs

etc.). In addition, large retailers who benefit from economies of scale and increased

efficiency are in a position to exert much pressure on prices and margins.

Much sports equipment is still sold at regular prices. Serious sports participants look for

value for money and regard product performance, technical innovations and comfort in

playing to be more important than price. Some retail prices of sports goods are given in

table 8.1. Note, in price checking one of the major sporting goods outlets, a major

clearance sale was taking place, offering discounts of between 50 and 70 percent on

most lines. Perhaps this is a sign of the competitive nature of the market at present.

Table 8.1 Retail prices of selected sports goods in the United Kingdom, 2005

Product Main Brands Retail price in €

(incl. 17.5% VAT)

Croquet set Jaques 200 – 500

Snowboards Best, Explorer, Salomon, Travis Rice 50 - 250

Rackets (tennis) Dunlop, Slazenger, Head, Prince, Wilson,

Donnay, Karakal 20 – 250

Rackets (squash) Dunlop, Head, Prince, Wilson, Donnay, Yonex 12 – 180

Rackets (badminton) Carlton, Yonex, Wilson, Prince, Donnay 12 – 150

Cricket Bats Slazenger, Fearnley, Gray Nicholl 5 – 40

Squash & tennis balls Yonex, Wilson, Slazenger, Donnay, Carlton, Mavis 10 – 20

Table tennis bats Dunlop, Tiga, Donnay 6 – 25

Golf clubs Callaway, Taylor Made, Forgan, Nike, King Cobra 80 – 700

Golf bags Triton, Wilson, Dunlop, Nike, Donnay, Top Flight, Adidas 20 – 150

Golf balls, tees Ultra, Pinnacle, Top Flight, The Master’s, Spalding, Maxfli 1 – 20

Helmets, LP Support, No Fear, Kooga, Umbro, Nike, Diadora 3 – 30

support/protection

Footballs Mitre, Adidas, Nike, Umbro, Donnay, Diadora 3 – 70

Rugby Balls Gilbert, Kooga, Mitre 6 – 25

Sports gloves Nike, Addidas, Diadora, Wilson, Mitre, Uhlsport 5 – 50

In-line skates Phoenix, Stateside, British Knight, Donnay 30 – 150

Skateboards Streetline, Rangers, Stateside, British Knight 40 – 90

Fitness exercise bikes Reebok, Horizon, Trimline, Tunturi 200 – 1,000

Fitness power training eqt. Trimline, Horizon, Reebok, Tunturi, Nordictrack 500 – 3,000

Grips, ropes, Bally, Uwin, Reydon, Reebok 20 – 40

wristwear, thigh toners

Fitness mats, workout kits Gaiam, Reebok, Marcy, Gold’s Gym, Donnay 5 – 70

Sleeping bags Kozi-tec, Micro-dot, Vango, Hi-Gear 30 – 75

Tents Eurohike, Vango, Coleman, Storm Shield 60 – 500

Fishing rods Harrison, Browning, Fox, Daiwa 70 – 350

Monitors, counters Oregon Scientific, Tanita, Polar 10 – 180

Source: Store checks (Lilywhites, JD Sports, John Lewis, LD Mountain Centre) Feb. 2005

More consolidation, more sub-brands

Aside from the increasing use of discounting, a further key price driver appears to be

greater manufacturers’ control over the supply chain. This is manifesting itself in a

reduced number of major suppliers, but a proliferation of sub-brands within each

major manufacturer. Hence consumers appear to have more choice but in fact that

choice is coming from a smaller number of suppliers.

As the Euro becomes more widely used, it will show the discrepancies in pricing between

various EU countries. This will result in more competition in all product categories.

Southern EU countries will be seen to have lower prices. The Euro will create more

transparency and make it easier for retailers to source products from EU countries at the

lowest possible price and without conversion costs. Differences in VAT, however, are still

large, ranging from 16% in Germany to over 22% in Scandinavian countries.

For sports goods, there are still significant differences in prices within EU countries. For example,

the difference in consumer price in 2005 between the cheapest country (Greece) and the most

expensive country (Sweden) is estimated by the trade at around 25%.

In order to comply with these differences and the increasing pressure on prices, it is vital

that promising new products from exporters of developing countries offer extra value. A

new product can be of interest to a buyer either because it is a unique product or is a

novelty, or because it could appeal to a particular market segment, in which case the

price is of secondary importance.

8.2 Sources of price information

The best way to obtain information about prices and price levels in the EU is by visiting

one of the major trade fairs or permanent trade fairs. Alternatively, comparisons can be

found in prices given in catalogues from sports chain stores, mail order houses,

department stores or from company web sites. Window-shopping in the prospective

market place, at several retail shops, is another good way of getting information about

prices, fashions, colours, qualities and promotions. Important sources of price information

on sports goods are listed below. The addresses can be found in Appendix 3.2.

____________________________________________________________________

WFSGI - World Federation of Î Major issues and trends in prices of sports goods

Sports Goods Industry http://www.wfsgi.org

EFTTA - EU Fishing Tackle Î Major issues in prices of fishing tackle in the EU

Trade Association http://www.eftta.com

Sport-Scheck Î German large chain store of sports goods

http://www.sportscheck.com

JJB Sports Î UK large chain store of sports goods

http://www.jjb.com

Perry Sport Î Dutch chain store of sports goods

http://www.perrysport.nl

____________________________________________________________________

9 EU MARKET ACCESS REQUIREMENTS

9.1 Non-tariff trade barriers

More detailed information on each of the following sections can be found at

http://www.cbi.nl/accessguide

. Needless to say, proper consideration of each of the following

issues that are raised can provide considerable competitive advantage for exporters.

9.1.1 Product legislation

EU product legislation on environmental and consumer health and safety issues is

compulsory for all producers and distributors to adhere to. Although there is no specific

legislation in respect of sports goods, the General Product Safety Directive 2001/95/EC,

effective since January 2004, reinforces the general requirement to market safe products

and improve product safety measures to ensure a coherent, high level of protection for EU

consumers. This directive applies to all products unless the product is subject to specific

safety requirements of its own.

Where specific directives are in force the products must carry CE marking. This stands for

"Conformité Européenne" and indicates that the product complies with set requirements

for safety, health, environment and consumer protection. However, the CE mark is not

intended as a guarantee of quality for the consumer. There are no particular directives for

sports goods, but Directive 88/378/EEC on the safety of toys makes some reference.

Although sports equipment is specifically excluded from the directive, skates and

skateboards sold to children must bear the marking “Warning – protective equipment

should be worn.” The product must be tested either by the producer himself or by a

recognised testing institute (notified body).

The General Product Safety Directive defines a 'safe product' as follows: a product that

under reasonably foreseeable conditions of use does not present any risk or minimum

risk compatible with the product’s use. Manufacturers must provide consumers with the

necessary information in order to assess a product’s inherent threat, particularly when

this is not obvious. For example, this may relate to a potential risk of back injury in the

use of certain sports articles. However limited risks consistent with the use of the product

and from the perspective of a high level of protection for the health and safety of persons

are regarded as acceptable when taking into account the following aspects:

 The characteristics of the product.

 The effect of this on other products.

 The way in which the product is offered.

 The categories of consumer.

On the basis of the EU directive on liability, a manufacturer, or his representative in the

EU, can be held liable for compensation to person and property caused by a product that

turns out to be not as safe as expected. When a relationship between the lack of product

safety and the cause of an injury can be proved, a financial compensation can be

demanded from the manufacturer for suffering incurred. As the importer will be regarded

as the supplier, he will require a contract with the exporter to cover his exposure to any

of the above-mentioned potential risks.

In the case of CE marking, standards are used to show compliance with the specific

directive. Harmonised standards are based on an amalgamation of existing national

standards and ISO standards. These are published by CEN. Producers are not obliged to

use them as they are not officially part of the legislation, however use of these standards

is the most sensible way to show compliance. Sometimes an ISO standard has become the

European standard. An overview of CEN standards can be found on the Internet sites of the

CEN. Addresses of CEN and national standards organisations can be found in Appendix 3.1.

Electrical equipment: In the case of electrically operated sports (fitness equipment) or

camping goods (heated sleeping bags), there are two directives (92/31/EEG and

93/68/EEG) on electromagnetic compatibility (EMC-directives). They cover electrical

material safety and electromagnetic compatibility and apply in all EU member countries.

Synthetic materials: There are no EU directives for the fire safety of synthetic

materials (e.g. sleeping bags, tents), although within the clothing and sporting industry

safety standards for synthetic materials are being discussed. In this respect, the Personal

Protective Equipment Directive (PPE - 89/686/EEC), is currently being reviewed by FESI

(Federation of the European Sporting Goods Industry), which represents the interests of

EU sports goods manufacturers. The aim of this review is to harmonise product quality

and safety within all EU member countries, so that products correspond to the same level

of protection, wherever they are purchased. Unlike a directive, a standard is not

enshrined in legislation, but it is expected that manufacturers should comply. From

January 2005 a new EN standard 13537 came into effect covering the testing and

publication of temperature ratings for Sleeping Bags.

The technical committee of the CEN harmonisation (TC85) on eye protective equipment

has a standard for personal eye protection for ski goggles for downhill skiing. The

technical committee (TC158) on head protection has standards for helmets for equestrian

activities, helmets for canoeing and white water sports, head and face protection for ice

hockey and protective clothing for roller sports. See Appendix 3.1 for the address of CEN

standards bodies.

9.1.2 Market Requirements

Social market requirements

Social issues are now very important in international trade. They concern both general

labour conditions, such as minimum wage, and health and safety of employees. Minimum

social conditions are now being demanded by many EU trading partners. Importers and

retailers do not want their names placed in connection with “sweat shops” or child labour.

The use of child labour in the production of sports goods is a serious cause for concern in

many EU countries. Widespread publicity has raised consumer and importers' awareness

of the issue and has had a negative impact on sales.

The use of child labour in production has been a serious issue in the sports

industry. The World Federation of the Sporting Goods Industry (WFSGI) developed,

together with the NGOs UNICEF and Save the Children, an International Code of

Conduct with ethical standards to which football manufacturers should comply.

More than 85 brands only buy footballs from Pakistan or India carrying a label, which

guarantees that these balls are made without child labour. The WFSGI also has a

monitoring system with inspectors regularly visiting factories, without giving prior

notice. For more information see: http://www.wfsgi.org

Pakistan produced 35 million footballs in 2002, roughly 75 percent of the total world

output. In one district, Sialkot, 7,700 children between the ages of 5 and 14 years old

are the main producers of footballs of the well-known brands Nike, Adidas and Reebok.

Leading producers in the sporting goods industry, NGOs, government representatives,

ILO, UNICEF and other international organisations met in Atlanta in 1996 to explore how

the sporting goods industry could contribute to the eradication of child labour. The

industry has moved a long way since then:

• The 2004 Global Forum for Sports and the Environment was held in Lahore, Pakistan

• Organised by the United Nations Environment Programme (UNEP), the Global Sports

Alliance (GSA) and the Pakistan-based Irfan Group of Companies, it explored ways the

sporting goods industry can enshrine sustainable development in their activities

• The Lahore/Sialkot Declaration on Corporate Environmental Responsibility resulted

• It acknowledges that it is inspired by the social progress achieved in many places,

including Sialkot, where child labour has been eliminated from the soccer ball industry.

More than 50 leading brand manufacturers only buy soccer balls from Pakistan carrying

a label which guarantees that they are made without child labour. In addition, some

well-known brand manufacturers/importers have their own standards. An example is

balls made in compliance with the 'Reebok Human Rights Production Standards'. Most

EU sports trade associations support the Agreement.

The organisation responsible for issuing the fair trade label throughout Europe

(http://www.fairtrade.net

) certifies the use of their label on certain stitched balls from

Pakistan and has published standards for their production. One large manufacturer in

Pakistan who contracts out the stitching of the balls to special stitching centres, where

children do not work and where normal salaries (per piece) are paid, makes these soccer

balls. The balls have been well received by consumers who also regard this issue as a

serious one. The International Labour Organisation is also involved in similar initiatives.

More promotion to increase consumer awareness of the child labour issue in the

production of soccer balls and other sports goods is expected. The soccer ball programme

serves as an example for other sports goods or sportswear (e.g. sports shirts). For more

detailed information on this issue the WFSGI, ILO or any sports trade association can be

contacted. Addresses can be found in Appendix 3.6.

Exporters who can guarantee and prove that their products are made without child

labour will not only have a competitive advantage over other products, but will also

have a much better chance of establishing a long-term business relationship. In

addition, the EU has added a 'social clause' to the Generalised System of Preferences

(GSP), which allows for special import tariff reductions for products that are

produced in a humane way.

It should, however, be noted that producers and exporters in developing countries can

never be subject to EU legislation regarding labour conditions. Companies in developing

countries only have to comply with legislation in the 'home' country. However, social

issues are becoming increasingly important. As in other industrial sectors, sports trade

associations in some EU countries are currently exploring the possibility of developing a

model code of ethical conduct for the production of some sports goods. Another

development is the introduction of a certified environmental management system (SA

8000) according ISO 14001, which is internationally recognised.

Environmental market requirements

Awareness of environmental problems has increased in the past few years and has become

an important issue in the international sports goods trade. In respect of environmental

aspects, sports goods are a complicated product group. Not only are there a wide variety

of products, but an extensive range of materials is also used.

Environmentally conscious product development is of great economic importance: there

is a growing demand for sustainable products in most consumer markets. Moreover,

environmental legislation governing both domestic and foreign products has an effect on

the competitiveness of trade and industry. New opportunities are afforded to those

businesses that are able to take advantage of this trend.

Most sports goods are often put on the market indirectly, through importers. In most

cases, this makes the importer responsible for the product. Importers might therefore

encourage or even force their overseas suppliers to meet certain environmental standards.

Legally binding guarantees are sometimes required by importers.

Although some environmental legislation may not yet be compulsory, it is now an

opportunity for exporters to meet these requirements as much as they can. Although

costly or arduous to implement, they undoubtedly provide a competitive advantage.

An example of this would be ISO 14000 certification. These represent standards of

environmental management. This certification is highly valued by some buyers.

Quality related market requirements

The EU harmonisation committee CEN TC 136 is coordinating the harmonisation of

standards and testing procedures for sports goods. In 2005, there were standards for a

number of items of sports equipment, including:

- various items of gymnastic equipment – horses and bucks, horizontal bars, wall

bars, lattice ladders and climbing frames, balancing beams, hanging rings,

trampolines, parallel bars, asymmetric bars, vaulting boxes.

- sports mats – gymnastic mats, pole vault and high jump mats, judo mats.

- playing field equipment – basketball equipment, volleyball equipment, badminton

equipment, tennis equipment, football goals, handball goals, hockey goals

- table tennis equipment.

- roller sports equipment – skateboards, inline skates, roller skates.

- stationary training equipment - strength training equipment, strength training

benches, pedal crank training equipment, treadmills, rowing machines, steppers,

stair climbers, elliptical trainers.

Standards are also under development for exercise bicycles and camping tents.

Each country still has some freedom to introduce new legislation and standards, but these

cannot become trade barriers within the single EU market. Germany has been especially

active in developing various standards for sports goods. The DIN (Deutscher Institut für

Normierung) has standards on gymnastic, climbing, diving equipment and camping goods.

Because new standards are constantly under preparation, exporters to a specific EU market

are recommended to check the required quality standards very carefully with the relevant

standard organisations and importers. Each EU country has its own standards organisation

of which the addresses can be found in Appendix 3.1.

With regard to equipment for professional games and playgrounds, balls and other articles

approved by the relevant sports federations are allowed. Examples are tennis balls, tested

and approved by the ITF (International Tennis Federation) or footballs approved by FIFA.

Although these are not national regulations, such testing and approval procedures should

be observed by the exporter. For more information on market requirements, see CBI’s

AccessGuide at http://www.cbi.nl/accessguide

9.1.3 Occupational Health and Safety

Exporters to the EU are not obliged to comply with legislation on labour conditions in EU

countries, but they do have to comply with legislation in their home country. As

occupational health and safety issues (OHS) are becoming increasingly important in the

EU, European legislation on working conditions may serve as an example on how

standards for occupational health and safety can be set.

A number of operations are performed in the process of manufacturing sports goods.

Welding, polishing, painting, leather treatment etc., may all present risks for workers’

safety and health in the work place. Manufacturers can take preventive measures by

observing general aspects like physical straining (in order to prevent injuries) and optimise

the facilities in the workplace as much as possible. Manufacturers can take preventive

measures in the following areas:

Physical straining Æ To prevent injuries, use lifting aids, adjustable worktables and

support tables.

Safety Æ Use safe welding masks, which should be amply available.

Chemical safety Æ Employees should be protected from gases released from welding

or from material like nickel, which can cause lung and nose cancer

Workplace facilities Æ Take care that workspaces and walkways are clean, well-lit and

tidy and that there is sufficient ventilation.

Employees should be instructed properly and they should be provided with tight-fitting

clothes and special protective wear. Further information on labour conditions can be

obtained from the International Labour Organisation, which is the UN organisation

dealing with all aspects of work; the address can be found in Appendix 3.6. For more

information on occupational health and safety, see http://www.cbi.nl/accessguide

9.1.4 Environmentally sound production

Industries in developing countries, as well as their European counterparts, have to

respond to ever changing and increasing environmental pressures and may well need to

transform their management and production styles. This requires new approaches in

companies, ranging from new management and employee awareness and commitment

to integrate environmental issues fully into the production process, product development,

and research and market strategies of the company.

Many companies are already improving process efficiency, including waste minimisation,

and energy, water, and (raw) materials efficiency. The next steps are towards a more

integrated approach to cleaner technologies and the production of more environmentally

acceptable products. All involve measures to prevent pollution.

Experience in both developed and developing countries shows that environmentally

sound production not only results in a cleaner environment, but also in substantial

savings for industry and society. Some cleaner production measures do not even involve

any cost. If investments are needed, the savings achieved in terms of material and

labour costs are often more than sufficient to offset initial higher investment costs. It is

estimated that 70% of all current wastes and emissions from industrial processes can be

prevented by the use of technically sound and economically profitable procedures.

The main materials used for the production of sports and camping goods are metal,

plastics, rubber, textiles and leather. Each of these materials and their environmental

impacts will be discussed below.

Metals

The use of coolants and lubricants has by far the greatest environmental impact. These

substances may contain all kinds of chemical additives and mineral or synthetic oils, for

instance VOCs (Volatile Organic Compounds), and are considered to be hazardous to the

environment. Between 85 and 90% of the metal-treatment liquids is emitted into the

environment. One way to decrease the consumption of coolants and lubricants is to avoid

them in the first place. Dry metal removal can be an option in turning, milling and drilling

bronze, aluminium, steel, carbon steel and stainless steel. Unfortunately, the use of

cooling lubricants cannot usually be avoided. Environmentally sound compounds, such

as vegetable oils, can be easily obtained in many countries at relatively low cost.

Plastics

Many harmful substances are used in the production process. The following table provides

an overview of harmful monomers and raw materials used in the production of polymers.

Polymer Harmful substances

PS benzene, ethylbenzene, styrene

PVC chlorine, 1,2-dichloro-ethane, vinylchlorine, mercury

PUR propene- end ethane-oxide, ethylene glycol, adipine-acid, phosgene, toluene

di-iso cyanate TDI, toluene diamine, toluene, diphenylmethane, isocyanate MDI,

benzene

ABS acrilonitril, butadiene, styrene

PC bisfenol A, phosgene, dichloro-methane, pyridine

POM formaldehyde, ethane oxide, diethylene ether

PPE 2,6-dimethylfenol

Many of the additives used in the production process of plastics are harmful to the

environment, especially pigments, fire-retardants and heat-stabilisers. Additives that are

not burned in waste disposal installations, like heavy metals, will end up in the environment.

The pigments cadmium and lead chromate and the fire retardant antimony are non-

degradable substances that have a significant impact on the environment. The production

of plastics will be more environmentally sound when manufacturers use less heavy metals,

organobromide and organochlorine compounds. Research is being carried out to develop

substitutes for additives which are less damaging to the environment. The re-use of

plastics helps to prevent environmental degradation and pollution.

Rubber

Natural rubber is a viscous, soft and tacky substance. Virgin rubber (natural as well as

synthetic) is not suitable for direct use. To give rubber the required properties (elasticity,

strength, hardness etc.), a number of additives must be introduced during processing.

Spilling of additives can be reduced by adding non-rubber compounds to the rubber

mixture at such a speed that they are absorbed directly into the rubber layer.

Furthermore, optimisation of the mixing process is important, as this saves energy. The

air emission of volatile additives and dust can be decreased by the application of a closed

compounding unit and a closed transport system for powdered and liquid compounds.

Textiles

Textile processing is characterised by the vast amount of water required and by the

variety of chemicals used in a long sequence of wet processing stages, which generate

much waste. Environmental problems associated with textiles are typically those

associated with water pollution caused by the discharge of untreated effluents. Liquid

wastes from washing operations contain a substantial organic and suspended pollution

load, such as fibres and grease. Effluents are generally hot, alkaline, strong-smelling and

coloured by chemicals used in dyeing processes. Some of the chemicals discharged are

toxic and can lower the dissolved oxygen of receiving waters, threaten aquatic life and

damage general water quality downstream. Dyeing and printing of textiles have a major

environmental impact. The best alternative is not to dye the fabric, but, if it is essential,

there are many more environmentally sound processes and dyes commercially available.

Use of pigments and dyes

Pigments may contain heavy metals, such as chromium, copper, lead and cadmium, which

are highly toxic to humans. Heavy metals used as pigments can often be replaced by less

harmful substances. Azo dyes are often used in the colouring process (particularly of

leather and textiles). Some azo colouring agents have carcinogenic properties or may

form amines (breakdown products), which have carcinogenic and mutagenic properties.

Germany was the first country to introduce legislative requirements that restrict the

presence of certain hazardous azo dyes in textile and leather products. After the

introduction of the harmonised EU Directive on azocolourants, Germany amended its

national legislation in January 2004. This means that Germany has directly transposed

the EU Directive on restricted use of azo dyes in textile and leather articles. In total,

around 120 azo dyes are prohibited. Other substances, which are banned (or only allowed

in limited amounts) in certain countries of the EU are: pentachlorophenol, certain flame

retardants, PCBs and PCTs, asbestos, cadmium, formaldehyde and nickel. The importer

is the best source of information on this issue.

For more information on environmentally sound production, see CBI’s AccessGuide at

http://www.cbi.nl/accessguide

9.1.5 Packaging, marking and labelling

In most cases, consignments from developing countries have a long distance to travel, so

it is very important that the sports goods are properly packed. Given the sometimes

expensive nature of the product, it is clear that its retail packaging should be carefully

planned. Whether buying exclusive or bulk items, there should be no need for importers

or buyers to repair sports or camping goods damaged because of bad packaging.

EU packaging standards

To harmonise the different forms of legislation on packaging and packaging waste in EU

countries, the Packaging Waste Directive (94/62/EC) has been introduced. This was

updated in 2004 by the directive 2004/12/EC that also incorporates broadly a maximum

10 year delay period for the 10 new EC members. The directive regulates minimum

standards. Currently packaging materials brought into the EU will require a recovery

quota of 50 - 65% and will regulate the presence of four heavy metals (mercury, lead,

cadmium and hexavalent chromium). By 2008, this will be a minimum of 60%.

At least 25-45% of the material brought into the market must be

recycled (increasing to 55-80% by 2008), with a minimum of

15% for each material.

In most of the selected EU countries, a so-called Packaging Convention has been reached

between representatives of the industry and the relevant government ministries.

According to this new law, each individual retailer, producer and packer in the sports and

camping goods branch are obliged to:

 Report annually how they intend to reduce their waste.

 Take necessary steps to ensure that 65% of their packaging waste can be re-used and

that 45% can be recycled.

 Report the quantity of packaging waste produced on a regular basis.

Because it is hard for an individual company to comply with the regulations, trade

federations monitor compliance on behalf of their members. However, all companies with

more then 4 employees and who produce more then 50,000-kg of packaging annually

must report. The green dot systems have been introduced in Germany (Grüne Punkt),

Belgium, Austria and France and are strategies that legally compel all organisations to

take effective measures for recycling and waste reduction in packaging.

Because the regulations are constantly changing, exporters are advised to check the latest

regulations and requirements regarding packaging. If these are not met, it may reduce the

competitiveness of the final product, as the importer will be confronted with additional costs

and time-consuming investigations and procedures. For example, new legislation on wood

packaging such as pallets has recently been introduced.

In general, an exporter can make his contribution by taking the following

precautions:

Î Take care that packaging materials (transport packaging, surrounding and sales

packaging) are limited and re-usable or recyclable and use as much packaging of the

same kind as possible.

Î Try to use (recycled) paper, cardboard, polythene or polypropylene, if it is necessary to

pack products individually.

Î Try to pack products together as much as possible and use (recycled) cardboard boxes.

Composite materials that are difficult to recycle should be avoided.

Î Try to combine products and make larger shipments instead of shipping frequently in

small quantities.

Î Try to develop re-usable and multi-functional foils with, for example, snap fasteners so

that consumers can use this foil for other domestic or packaging purposes.

Export packaging

It is essential that the outer packaging protects the goods during storage, transport and

distribution, so that they arrive at their final destination in Europe in a condition suitable

for sale. The main forms of damage likely to occur to sports goods are scratching, abrasion,

printing (the transfer of markings from a packaging material to a polished finish), soiling

and discoloration and moisture, dehydration and temperature damage.

With regard to the method of packaging, in most cases, the importers or buyers will specify

whether the items are to be individually carded, boxed or wrapped in bulk. The type and

design of packaging is chosen to match the quality and value of the sports goods.

When packing articles for export, pay attention to the following:

Key areas for the attention of exporters:

Î Select a reliable method of transport for valuable items, e.g. sea or air freight, but not

normal post. It is recommended that you use the same transport company as the

importer or buyer, as they may benefit from discounts.

Î Follow the packing instructions from the buyer or importer exactly, including all the

details specified, even to the position of a sticker or label.

Î Pack the articles in such a way as to minimise the opportunity for damage during

storage and during transport, e.g. packing fragile articles in plastic bags or bubbled

plastic, within a small box.

Marking and labelling

Packages in transit should be marked clearly with the name and address of the exporter

and importer, the country of origin, the port of trans-shipment and information on the

contents, so that the importer can identify exactly which batch of product(s) has arrived.

The importer will also usually request that the article number is marked on the outside of

the packaging, so that the shipment can be distributed without opening the containers. The

use of bar codes, which can be read by sensors, is now widespread in European wholesale

and retail distribution, especially in distribution centres. This method of marking means that

distribution can be performed automatically.

Unless the product is part of a promoted brand-named collection, the importer will also

specify whether he requires his own company's packaging, perhaps a private label for a

multiple retail client, or neutral packaging which he can modify according to his customers'

requirements. Importers or buyers frequently supply their own labels with the order.

For more information on packaging, see CBI’s AccessGuide at http://www.cbi.nl/accessguide

9.2 Tariffs and quotas

Broadly speaking tariffs in the 10 new EU countries are higher than in existing member

countries. Hence these tariffs will come down over a period of time in order to come into

line with the standard rates that apply across the EU. This will provide further opportunities

to export to these new member countries. In some instances the differences are quite significant.

Import duties for sports goods range from 0 up to 17%, as is shown in table 9.1 overleaf.

Table 9.1 EU import duties by product group (as % of the CIF value)

HS Code Product description Import duty (GCT) Preferential tariff (RGSP)

950611 Sports Skis 3.7 0

950612 Ski bindings 3.7 0

950619 Ski sticks and equipment 2.7 0

6402129 Ski boots 17.0 11.9

95062 Water sports 2.7 0

95063 Golf 2.7 0

95064 Table tennis 2.7 0

950651 Tennis rackets 4.7 0

950659 Other rackets 2.7 0

95066 Balls 2.7 0

9506691 Balls for cricket and polo 0 0

9506701 Ice skates 0 0

950673 Roller skates 2.7 0

950679 Parts and accessories of skates 2.7 0

9506911 Fitness equipment 2.7 0

9506991 Equipment for cricket and polo 0 0

950699 Equipment for other outdoor sports 2.7 0

4201 Saddlery 2.7 0

420321 Sports Gloves 9.0 0

63062/64 Camping Tents, airbeds 12.0 9.6

63069 Miscellaneous camping 12.0 9.6

94043 Sleeping bags 3.7 2.3

95071 Fishing Rods 3.7 0

Hooks (unmounted) 3.7 0

Hooks (mounted) 1.7 0

Reels and lines 3.7 0

Value Added Tax (VAT) for all sports and camping goods ranges from 17 - 25%

Sport goods, fishing tackle and sleeping bags from China and Thailand receive no tariff preference,

nor do tents and airbeds from China, Macao, Malaysia and Thailand.

Source: Belastingdienst Douane 2004

If there is no special trade agreement in force between countries, the general import tariffs

apply. For developing countries, a preferential trade agreement is established where import

tariffs for sports goods are reduced under the Generalised System of Preferences (GSP) or

the Cotonou Arrangement for the ACP countries (Africa, Caribbean and Pacific). The GSP

does not apply if sports goods are produced in large quantities such as China and Thailand.

At present, showing the Customs Authority Certificate of Origin ('form A') can reduce the

import duty payable as sports goods and a permanent reduction is being considered. In

addition, a Movement Certificate EUR 1 is required to show where the products have been

produced (the country of origin). Most imported goods are subject to an 'ad valorum' duty,

which means that the duties are levied as a percentage of their value.

There are no quantitative restrictions for imports of sports goods. Up-to-date information on

tariffs and a list of least developed countries can be obtained from Customs authorities in

The Netherlands, through their on-line system, known as TARIC at http://www.douane.nl

The relevant information numbers are given in Appendix 3.6. The HS code of the item must be

always mentioned- see Chapter 1.2.

PART B

EXPORT MARKETING GUIDELINES:

ANALYSIS & STRATEGY

The decision to export sports goods is a major one. In order to succeed, your export

business should be built on firm foundations. Exporting to the EU can bring tremendous

benefits, but it also will bring new pressures and ask much of your resources and skills.

Part B overviews the main topics to consider when exporting, and identifies which areas of

business need concentrated preparation in order to take on the challenge. In a highly

fragmented EU sports goods market, it is very important to make a detailed analysis as to

whether to export or not. By reviewing your current situation, you can recognise market

opportunities and your own strengths. At the same time, you can develop a sports product

range for your target markets and assess whether your business needs to adapt. In this

way, many problems that may arise later can be avoided

. The purpose of Part B is to assist

decision-making and provide an insight into a systematic export marketing process.

Part B distinguishes the following steps in the export marketing process:

1. External analysis (Market Audit, Chapter 10) and Internal analysis (Company

Audit, Chapter 11).

2. SWOT analysis (Chapter 12).

3. Decision making & formulation of objectives (Chapter 12).

4. The marketing actions - input for Market Entry Strategy & Export Marketing Plan

(Chapter 13).

In step 1 - external analysis - relevant topics in the EU sports goods marketplace will be

covered such as: market developments and opportunities, which products to export, to

which EU markets, who are the main competitors, via which channels, at what prices..

Exporters can investigate each topic by gathering information on the key questions. When

sufficient information is obtained by market research, target markets can be identified and

selected. Some relevant information has already been provided in Part A and some sources

for further research can be also found in Appendices 3 and 5.

An internal analysis should clarify whether an exporter could use his resources without

jeopardizing domestic sales efforts. It should also indicate if and how his company could

enter these target markets.

In step 2, the SWOT analysis, opportunities and threats (from external analysis) and the

exporters’ strengths and weaknesses (from internal analysis) are summarized. The result of

the SWOT analysis should inform the exporter if he is well placed to export his sports goods.

He may decide positively if there are more market opportunities (than threats) and if his

company is strong enough to start this venture.

In step 3, the export decision is made. The exporter sets his objectives for EU

sports target markets.

Step 4 covers the marketing actions that the exporter should take in order to

successfully penetrate these target markets.

Most topics in Part B relate to the External and Internal Analyses in step 1. The four steps

form the basis for exporters to draw up their Market Entry Strategy (MES) and plan their

activities in an Export Marketing Plan (EMP). More information on general issues relating to

export marketing can be found in CBI’s Export Planner. Information and methodologies on

carrying out market research can be found in CBI’s manual ’Your guide to Market Research’.

10 EXTERNAL ANALYSIS: MARKET AUDIT

An external analysis or market audit should help select the best sports goods markets or

niches that have the greatest chances for success. Start by taking a broad view by learning

about EU countries and gathering information from each country on the following topics:

• General data - population trends, sports participation levels

• Typical motives for buying sports goods - e.g. major sporting event

• Economic data - disposable income, consumer confidence, unemployment, debt.

• Household expenditure - expenditure or retail sales on other sports related items

• Market size of the product group and/or specific item in value and volume for the

past few years.

• Trade flows – identifying upcoming EU markets and competitor supplying countries

• Market developments - trading up towards better materials and designs, and the

importance of brands.

• Production developments - trends in shifting production to China, Thailand, India

• Consumer trends and lifestyles, main and new users of sports goods, differences

between southern, northern and new member EU countries in terms of preferred

sport or leisure activity. Who are the celebrities, trendsetters/opinion leaders?

• Sporting goods trends - new looks, designs, materials, colours, items, type of

product, applications and how, when these are used according to the latest trends

• Consumers buying behaviour – how and where do sporting enthusiasts buy sports

goods? Other target groups e.g. teenagers, older people, women? What does each

group regard as most important?

• Market niches and opportunities.

• Main competitors.

The information given in Part A of this survey and the additional data collected on these

topics already provide a picture of which countries are more difficult and which countries

are easier to enter.

Next, the exporter should try to set priorities and choose target markets for his specific

sports goods items in terms of primary, secondary and tertiary markets (see section

12.2). Here he could assess the sales channels, i.e. how to get his items to consumers in

each of these markets. For example, he may choose to export direct to a primary market

using an importer or exclusive agent. Alternatively, he may export indirectly through e.g.

contract manufacturing to a customer in a secondary market. This option requires less

investment in terms of design, logistics and marketing.

Once the priorities are set, he could narrow down his view and segment his chosen markets

further by region, product group, consumer type (income, age, preferred sport etc.). He

should investigate the local (seasonal) trends, mass-market designs, prices and margins

and collect as much information as possible on competitors operating in the same segment.

10.1 Market development and opportunities

Market Development

Desk research

Much information on these topics can be collected by desk research, especially by using

the Internet. General information, including marriage and economic data can be found at

the National Statistics Offices in each country. For sports goods, there are some useful

trade portals, trade associations and trade magazines, most of which are connected to the

Internet and offer an online database.

Data collection in EU markets

Trade statistics are usually available for most EU countries and give a general indication as

to which markets may be growing. In these statistics, products are often subdivided into

very broad categories e.g. according to type of sport (e.g. fitness, competitive/team

sports). In many cases, your specific item is within a larger product group, still leaving

questions to be resolved.

Market data is often available for large EU sports goods markets such as Germany,

the United Kingdom and France, which have up-to date information sources.

However, these countries often provide their information according to different

definitions, making it difficult to make comparisons.

Information sources Æ Market development and trends

Information on market size and developments is included in this market survey,

at portal sites (http://www.ipso.com or http://www.sports-data.com,

http://www.wfsgi.org , http://www.wsforum.org ) and can be found at websites

of trade associations, trade press and on some country or product specific sports

goods websites. Addresses are given in Appendices 3.1 – 3.5.

Sports trade press e.g. Sport Premier Magazine, SAZ in Germany, Sporting Goods

Intelligence, Sports Business and CMD in Spain, as well as trade fair organisers

IPSO (Munich) and MICAM (Milan) provide much information on market sizes,

developments and sports goods trends.

Another source of inspiration is watching live sport on TV in the target country. A

high degree of sports participation is encouraged by TV viewing.

You can find sports goods market reports on http://www.usatrade.gov or

http://www.marketsearch-dir.com that are not too expensive. Some commercial

business information providers produce reports on sports goods. Some of these

reports are useful and can be bought in part or by chapter. However it is important

to check if they really cover your specific item, as they are expensive. The most

important providers are:

http://www.globind.com http://www.euromonitor.com

http://www.snapdata.com http://www.marketresearch.com

http://www.mintel.com http://www.keynote.co.uk

How to collect market data?

Retail sales: Total sales by retail outlets in value (€) are measured at current or

constant end-user prices. In e.g. the European Retail Handbook (published by Mintel),

sports goods are mentioned as part of leisure expenditure. Even if the product category

is not further sub-divided, it is a good method of comparing countries. When collecting

data from various sources, check at least three years (if possible) and be aware that

some sources report retail sales with sales tax included, while others don’t.

Consumption or consumer expenditure, is calculated based on a large sample survey

commissioned by National Statistics Offices (usually every 4 years) or by large research

companies. Up-to-date statistics on consumer expenditure on sports goods is relatively

easy to find in the UK, France (at a cost) and Germany but more difficult in Spain, Italy,

The Netherlands and Scandinavia. Euromonitor provides consumption per capita figures

for the EU countries, but this needs to be checked with other sources.

Industry sales: Often sports trade associations e.g. the European Golf Association,

provide trade and sales statistics. The statistics include sales to export markets, which

need to be deducted in order to calculate the national sales. Sometimes the prices given

are wholesale or factory level, as opposed to retail.

Field research

Additional information can be collected by field research. Begin by talking with other

exporters, especially those who already export sports goods to EU markets. There might

be a way combine research resources and enter EU markets together. Visiting exhibitions

in the EU, and interviewing key people such as importers, wholesalers, editors of trade

magazines or managers of trade associations can be very enlightening. You may

discover hidden feelings people have towards your company, country or product.

Store checks are especially important. For example, look at specialist sports shops or

chains on the high street or at department stores. In addition to sports magazines and

store checks, watching people on the high street provides a good indication of the local

fashion, as sport is so closely linked with leisure wear.

How to interpret forecasts?

There is a great deal of information available on trends and forecasts, especially for

fashionable sports goods such as skateboards, surfboards, small fitness equipment. The

challenge is to translate these forecasts into potential products. Consider the following

points after you have looked into forecasts and start to make/design new sports goods

for export markets:

1. Define your consumer target group Î This can be done in terms of product group

or by user characteristics (see section 3.2).

2. Define your core expertise Î Your original designs.

(see Chapter 11.1) Your technical speciality or special skills.

Your use of materials.

A combination of the above.

3. Products for different sports Î Forecasts refer to new fashions for a

particular sport, which comprises the

equipment and its related outfit i.e. clothing

and footwear.

4. Style is important Î Styling and functionality is important for

sports goods

5. Forecasts can be overstated Î Forecasts give an indication of which ideas

may be translated into commercial products

in terms of design and size. Forecasts can be

used as an indication of markets for future

products, but should be treated with caution.

Opportunities

Sports participation

The emphasis in sports participation continues to be less on competitive team sports and

more on leisure and individual sporting activities (soft sports). By 2020, the proportion of

45+ olds in the population of most selected EU countries is expected to be more than 40

percent. These older people want to stay in good health by keeping fit in a variety of ways. This

means an ageing profile in participation.

Mixed market opportunities:

The global economy is gradually coming out of a downturn. This has affected the sports

goods market and depressed demand for more expensive articles. However, opportunities in

new EU member countries and increases in levels of sports participation will ensure sustained

demand for camping goods, equipment for fitness (weights, dumbbells, in-home trainers),

water sports and gliding sports. For all sports goods, stimulants to the future market are:

 Increased sales to women and older people, where design is most important.

 Global media coverage of sporting events continues to increase

 New technological improvements in sports equipment eg improved material, comfort

in playing, product safety (e.g. in carve skis) and intelligence in equipment.

These developments offer opportunities for equipment and accessories, which can be

supplied direct or OEM by exporters from developing countries.

Sub-contracting (OEM or ODM-supply) or strategic alliances:

Some EU manufacturers/suppliers look for new low-cost countries to outsource production

of high volume items, while others look for sports specific or labour intensive items. Both

cases offer opportunities for new suppliers or partners, who could also be exporters from

developing countries. The EU sports goods industry has been threatened by enormous price

competition from large supplying countries like China and Taiwan. Consequently, the EU

industry now concentrates on the marketing of the goods and is constantly looking for new

partners, producing their brands or private labels, with whom they can form a strategic

alliance. Inputs in terms of design and material are often made by the EU company.

Opportunities in growing niche markets - by product

Exporters must seek their opportunities in areas in which they are strong, i.e. labour

intensive sports goods, which are not too complex to manufacture and where brands still

are of minor importance such as:

Fitness: Æ Simple in-home training equipment, ranging from home gyms, AB Toners,

rollers, free weights, belly exercisers such as benches and collapsible hoops.

Æ Small exercise equipment such as resistance equipment (e.g. small wrist,

hand, thigh exercisers, chest expanders), jumping ropes, trampolines.

Æ Martial arts equipment e.g. punch bags for boxing, punch ball sets, sticks

(for e.g. kendo) and all sorts of protective equipment.

Æ Fitness related accessories such as exercise mats, protective equipment,

see earlier example of power yoga kits.

Team sports Æ Balls: footballs (normal - promotional or special balls e.g. for calcetto or

futsal), street basketballs, coloured beach volleyballs, rugby balls, water-

polo balls or medicine balls. Most of these balls are of leather and manually

stitched, which should be made without child labour. Machine made or

plastic balls, for special events or promotional purposes is an important

niche in the ball market for exporters from developing countries.

Æ Gloves: made of leather and used for football (e.g. all weather gloves),

rugby, cricket, golf or (ice) hockey.

Æ Protective equipment: head or mouth guards, knee/ankle pads, shoulder

pads used for rugby, cricket, (ice) hockey and smaller pads used in football,

basketball or handball. Also similar items to protect injuries whilst still

playing.

Æ Bats or sticks: used for cricket, (ice) hockey or baseball.

Æ Team/field equipment: used for all team sports such as nets, goals, dome

markers, whistles, disc cones, starting blocks or any other sports-related

specialised equipment.

Golf Æ Balls (also for promotional purposes), bags, gloves, putting mats, indoor

exercise sets, practice nets and golf carts.

Other sports Æ Racket sports: Rackets, balls, shuttlecocks and racket sports accessories

Æ Skating: Roller skates, cross skates, skateboards and (inline) skating

related protectives, gloves and accessories.

Æ Water sports: Swimming caps, headbands, spectacles, goggles, skimming

boards, beach and surfing accessories such as beach mats, waterproof bags

and beach chairs (also for promotional purposes).

Æ Horse riding: saddles, harnesses, traces, leads, knee-pads, muzzles, saddle

bags.

Æ Camping goods: Tents, rucksacks, foldable tables and chairs, self-inflatable

mattresses, cooking gear, lanterns, compact binoculars, knives, compasses,

money belts, mosquito nets, picnic mats and other camping or trekking

equipment (protectives, and gloves etc.). Crampons, ropes/rope accessories

and ice axes for climbing.

Æ Fishing tackle: rods, reels hooks, nets, baits and accessories.

Opportunities in growing niche markets - by consumer groups

 Eastern European Consumers. There are a large number of consumers in the new

 EU member countries of Eastern Europe where there is a strong state encouragement

 of sport. Many Eastern Europeans have also recently moved to various countries in

Western Europe. Fitness/gym and football are of particular interest in these countries.

 Young people with a disability who favour swimming/diving, football (or goalball),

gymnastics, trampolining, martial arts (e.g. judo), horse riding and basketball. In some

 of these sports, special or modified equipment is required, which is more labour intensive

to produce.

Threats and difficulties for exporters:

Î The sports article should be well finished, made precisely according to importers'

specifications, and meet the quality standards of the demanding EU market, where strict

safety standards are also required.

Î Production capacity, keen pricing and fast delivery are essential to maintain relationships

with importers or other buyers. Good communication (e-mail and personal contact) and

flexibility are vital.

Î The increased requirement from EU importers and the industry for quick delivery, means

greater stockholding and exporters tying up more cash

Î The exporter must be able to comply to the International Code of Conduct.

Although there is a trend towards greater similarity between markets, some of the above

opportunities and requirements still differ in each of the selected EU markets - see Chapter

3. Once they have been clarified, the next step is to identify similar niches in other target

countries and assess if and how they should be approached.

10.2 Competitive analysis

When target countries have more or less been identified, the next step is to find out how

many competitors operate in these markets, how they sell their products, through which

channels and at what prices. In each product group, you will find different competitors,

varying from well-known brand names to other exporters from developing countries.

The large exporters from China, India and south-east Asian countries have already

established their business in most of the selected EU markets (see also Chapters 4 and 5).

As these suppliers are technologically advanced and can benefit from economies of scale

and well-organised delivery systems, competition for exporters from (smaller) developing

countries will be difficult.

For most exporters from other developing countries, the primary focus should be on

quality and on a particular niche market. Here, try to find out as much as possible on

direct competitors operating in the same niche, by finding out the relevance of the

following questions:

Are there many competitors?

Make a list of all your direct competitors and if there are many, try to assess if it would

still be worthwhile entering your target market, or whether there are niches. For example,

in camping equipment, you will find many competitors. But you can narrow your focus by

e.g. concentrating on the market for older people, offering as your specialty camping

items where there might be an emphasis on luxury rather than efficiency. Here there may

be fewer competitors.

Who are your competitors?

Once the main competitors have been clarified, collect as much information as you can in

terms of their sports goods ranges, material, styles, designs, colours etc. and check the

opinions of your business contacts on these competitors in your target markets.

Will new competitors enter your market?

Keep abreast of forecasts (in equipment & accessories) and trends. Many competitors

are likely to enter the market early, particularly when a variation of an established sport

is expected to become a new craze. Find out through your contacts if any new companies

have emerged in your target markets that could be future competitors.

How do competitors sell and where?

Find out which trade channels are used by your competitors, in which countries or

regions and possible reasons. Ask your business contacts about your competitors. If

possible, visit competitors' company websites or check (sites) of retail outlets who sell

their ranges, in order to find out how products are priced and distributed.

Your competitors’ strengths and weakness?

Find out how long competitors have been operating in the EU markets and, most

importantly, what their strengths and weaknesses are, sub-divided by country.

Monitor activities in the sports goods industry

By visiting trade fairs (international or local), congresses, seminars etc. you can meet

potential buyers and/or learn about developments in their market. These also provide

opportunities to find out more about competitors. It is important to take the time to

attend trade fairs to see what your competitors are doing, and how they present and

promote their items.

When investigating competitors in more detail, you could use a checklist, trying to

collect as much information as possible by desk (internet) and field research:

Company details

 Headquarters and organisation

 Total number of employees

 Their resources

Export activity (if possible)

 Export sales

 Countries in which export sales are made and local resources in each

country

 Target market segments and main target groups

Products

 Sports goods categories, material, design, style

 Design ability and flexibility

 Positioning and brands

Distribution

 Distribution channels used (nationwide or particular regions)

 Key distributors (e.g. importers or exclusive agents)

Prices and discounts (if possible)

 Price of items in the range

 Discount structure

Promotion

 Presentation of products at exhibitions or in store

 Brochures, catalogues, website, promotional themes

 Other information you can find at exhibitions, store checks,

Relationships/partnerships (if possible)

 Licences

 Joint ventures

• Information sources Æ Competitors

Desk research: Information about manufacturers and main players can be found in

Chapter 4 of this market survey. Also check business directories (or platforms), which

can be found on sports goods portals http://www.ipso.com – see also Appendix 5.

You will also find information in trade magazines, trade fair catalogues (often available

on-line at the website of the trade fair organizer), competitors’ websites, annual reports

or brochures with their product ranges. Parts of reports from on-line business

information providers who also offer company profiles at a charge may be helpful.

There are also generic business directories. The most important generic on-line

directories are Europages and Kompass. The business directories offer multiple search

filters, like product group, market, company type, company size etc. Use of the business

directories is free of charge. Dunn & Bradstreet provides financial information on any

(registered) company in the EU.

http://www.europages.com http://www.kompass.com http://www.dnb.com

Field research: at exhibitions, store checks, through (potential) customers/buyers or a

contact in your target market, who can check e.g. prices or promotional material.

10.3 Sales channel assessment

When a clear appreciation of the market developments, opportunities and direct competitors

in the target markets is obtained, the next step is to identify the best way to enter these

markets. Depending on your strengths, you may choose the same sales channel as your

competitors. You may choose a different channel. Do not feel that you have to adopt the

same approach. It mainly depends on the opportunity in your target market, the type of

products and the investment required to successfully sell in this channel.

For example, if you are considering exporting rackets and have found opportunities in the

schools market, you could prioritise the largest markets such as Germany and France. In

both countries, these items are mainly sold in shops but schools buy from specialist

wholesalers. So an importer who specialises in this market would be a good option.

Possibilities for market entry

Depending on the investment and the degree of risk, there are a number of ways of dealing

with different levels of strategic involvement in target markets. Some of the possibilities are:

The indirect approach is a low-risk option, using the International market as an extension

of domestic production, e.g. manufacturing leather balls for an EU supplier. However a

direct approach requires a long-term strategic view, based on a good understanding of

the target markets. In this respect, EU markets differ from the US market in terms of

consumer preferences, colours and designs. EU countries also have a highly diverse

EXPORTING Direct approach

 Agents

 Importers

 Retailers (specialised / non-specialised)

 Domestic manufacturers

PRODUCING Indirect approach

with investment minimal investment

 Licensing  Assembly

 Franchising  Joint Ventures

 Contract manufacture  Acquisition

 Strategic alliance  Strategic alliance

distribution network for sports goods.

There are enough opportunities for exporters from developing countries by taking the

direct approach. Selling direct via the Internet is an increasingly frequent method. In the

next matrix, a selection is made of the most common choices of trading partners for

each kind of (potential) exporting company:

Trade channel:

Market entry / product:

Manufacturer

Importer

Retailer

specialised

Retailer

non-special

Agent

Overseas production

- - - -

Exporting direct Æ Machine made

Æ Hand made

X X X X X

Æ Other items

X X

The direct approach

When exporting direct, choose the best distributor (see also Chapter 7) by gathering

information on the potential sales channels. Find out if your

sports good could complement

their specialism. Find out details of importers or agents (e.g. on their websites), their

product range, to whom they supply, and their distribution coverage in your target country.

 Key questions on distribution channels

- Do I want to establish a long term relationship?

- If yes, an importer would be the best option - what sort of importer (e.g.

specialist or general etc.)?

- If no, what would be the best channels for a ‘one off’ i.e. large incidental order

(e.g. department store, buying group, hypermarket, mail order company?)

- What are their advantages/disadvantages? How can I get in touch with them?

- Do these partners serve retail outlets frequently visited by my target group?

- What are suitable in-store themes in which my products will fit?

- What are the latest trends in distribution? Can this influence my business?

 Key questions on Buyers / Customers:

- Am I really dealing with the right buyer – is he serving my target group?

- How many accounts does his company serve, with how many sales people? For

example, the average is 3-4 sales personnel to cover around 150 accounts,

each in an area of about 200 km.

- In case of long-term business, why would they switch to your range? Who are

their competitors?

- What is most important for them: - Competitive price? - The type of item, its

style, looks or special material? - Design capability? - Good communication,

flexibility, fast response time?

- What is the buying policy of large retailers? Do they have branches in other target

markets?

Information sources Æ Sales channels

Information can be found in Chapter 7 and at trade associations and Chambers of

Commerce. In addition, check local trade magazines that regularly interview

store managers and other key personnel in the supply chain.

During visits, you could do some store checks, get an idea of in-store themes and

get the opinions of store managers. It is useful to know beforehand if your item

fits into the store style when approaching buyers. If you are unable to do it

yourself, ask local people to visit stores on your behalf.

You could find buyers through exhibition catalogues (e.g. on the Internet), trade

portals and at sites of business platforms (by sector – by country/region).

Most sports goods items are handled by importers who supply specialised retailers or

buying groups. Sometimes a buying group may act as an importer by purchasing direct

from manufacturers. Importers have a good knowledge of the market and provide the

safest and most effective means of distribution for exporters from developing countries.

Generally, importers who operate a sales network that covers an entire country expect

exclusive representation agreements. They tend to be quite specialized in their own field.

Distribution by an importer:

Advantages Î quantity requirements manageable for smaller producers,

Î Not usually sale or return basis

Î Travel costs divided when visiting more than one importer.

Î If working relationship is successful, more business will follow

DisadvantagesÎ Exporters receive a relatively small proportion of the final price.

Î Importers may require exclusivity in the sale of the item.

Î Lack of control over final distribution outlets

Golf equipment is usually handled by specialised importers, exclusive agents or is

imported direct by large retailers or central buying groups. The main retail outlets are

specialist golf stores, specialist sporting goods, department stores, etc. (see Chapter 7).

Other sporting goods can usually be found in specialised sports shops, department stores,

and in a variety of other outlets, such as clothing stores, mail order or catalogue showrooms,

super or hypermarkets, shoe shops, market stalls, etc. This makes the distribution on importer

level very diverse and complex. Sports goods sold in non-specialised outlets

such as clothing shops and hypermarkets grew very quickly for the following reasons:

* Sport is complementary to clothing and part of a lifestyle.

* Some products provide a relatively high gross margin for retailers.

Sporting goods stores (e.g. Intersport, JD Sports) and hypermarkets (e.g. Carrefour) have

items produced according to their own design and specifications under their own or a

designer label. Their advanced stock control systems, using barcodes enables them to

integrate production, buying, distribution and selling. Most organizations buy directly.

Distribution through department stores, chain stores and retailers:

Advantages Î Higher selling price than to importers.

Î Production linked to receipt of the order avoiding wastage

Î Payments are more secure, because L/Cs or similar methods are used.

Disadvantages

Î Difficult to establish a relationship with buyers, as they often change or

are hard to contact.

Î Some insist on sale or return

Î Special conditions are required in labelling, packaging or pre-packing

ranges for individual chain store members.

Î In the case of poor service or product quality, late delivery or wrong

follow up of instructions by the exporter, buyers could make claims or

cancel the order.

Distribution by mail order / home shopping

Advantages Î Volumes usually of manageable quantities

Î Items can be sold at a higher price than to importers.

Î Additional publicity gained by featuring of items in catalogue

Disadvantages

Î These companies may require exclusivity in the sale of the item.

Î They often order items instead of product lines.

Î Exporters are required to keep the ordered items in stock when offered

for sale, at their own risk.

More channels in one country

By selecting any one trade channel, this often automatically excludes other channels. It

is not realistic to expect to have a relationship with a department or chain store and also

enter the market with the same line of products through an importer. This potential for

competition, or seeing the same product at different prices in different outlet types,

makes this practice unacceptable to most trade partners.

It would be feasible if each customer specialised in clearly different products or markets.

So, an exporter can sell goods in one country to an importer who is specialised in products

for sports shops and to another who specialises in leisure items, or he can sell a line to an

importer in The Netherlands and sell the same line to a department store in Germany.

However, markets are becoming more homogeneous so this is less likely to happen.

10.4 Logistic requirements

When the choice of how to enter the EU target markets has been made, the next step is to

look for the most efficient and safest way to deliver the items on time. Here the exporter

has to compete with EU countries who benefit from simplified transport procedures, as

many custom formalities have been removed. In addition, China and other Asian countries

are able to deliver more quickly nowadays.

Order control

Most sports goods importers and agents organise transport and stock keeping in the

conventional way. It depends on the volume, and whether it is mass-produced or a

specialty item. Larger fitness equipment tends to have a slow turnover, but short lead times

are increasingly required for most sports goods. Trends come and go more rapidly

nowadays.

Most chain stores and retail buying groups work with centralized warehouses and

distribution centres e.g. in The Netherlands and in Belgium. They use state of the art

order control systems that minimize stock levels and are increasingly based

on just-in-

time production, combined with electronic ordering. Delivery after a confirmed order by

large retailers is now expected to be between 30-45 days, sometimes less. Longer lead

times need to be negotiated.

Reducing stock

The current oversupply of some goods and intensified price competition have resulted in

retailers holding less stock and, at the same time, having less out of stocks. There is a

trend towards continuous replenishment. In general, purchasing policies are aimed at:

Î Less pre-seasonal orders.

Î More variety in sports goods per season (according to the latest trends).

Î Investment in seasonal planning and control.

Î Increased co-operation with suppliers e.g. quick response and EDI (Electronic

Data Interchange).

Î Fewer suppliers.

Transportation

Some sports goods are sent by airfreight or by courier, whereas more bulky and volume

lines from further a field are sent mainly by sea freight that can easily take 1-2 months. In

order to reach the destination country, there are many formalities and much documentation

(e.g. insurance) required related to the risk of theft, tariffs and terms of delivery.

There is a risk of items being damaged e.g. in transit by dampness or mishandling. The

main forms of damage likely to occur to sports goods are breaking, scratching, printing

damage (the transfer of markings from a packaging material to a finished product), soiling,

discoloration and moisture, dehydration and temperature damage. Therefore, packaging of

items is extremely important, as explained in Chapter 9.

100

10.5 Price structure

Prices

Bad pricing is one of the main reasons why attempts at exporting can fail. When entering

the target markets, successful pricing is a key topic in the market entry strategy. In fact,

pricing is the only part of the strategy that can raise revenue for exporters. All other

activities generate costs.

The price is the first point of comparison when evaluating your product against the

competition. As described in Chapter 8.1, prices in the low-end and cheaper middle range-

levels are under more pressure, coupled with an oversupply of cheap imports. Price cutting

and early clearance sales have become regular features of the trade. Increased demand

from younger people has resulted in more lower-priced items.

Pricing should be based on cost of materials and labour, and should cover all overheads.

When pricing in this way, many items may often be more

expensive than the competition,

making them difficult to sell. In order to compete, some items may even have to be sold

below cost. Although this loss may be compensated by a high margin on other items, it

would be wise to reconsider your target market or sales channel. This is not a sustainable

strategy but may be necessary in some instances to gain market entry. As a developing

country exporter it would be the best to concentrate on the exclusiveness of your product

range, eg by introducing originally or unusually styled product, which you know already

would appeal to your target group. If they recognise your USP, the price is less important.

 Key issues on price structure (see example of calculation in table 10.1)

- Retail prices: List up the prices of competitor’s products in primary markets.

- The trade channels with typical mark-ups of each channel and retail category.

- The number of in-between parties involved in the sale of your products.

- The production costs, incoterms, import duties, VAT level and other cost.

- Additional costs for product adaptation, design, packaging, marketing and promotion

- The most ‘reasonable’ or ‘tactical’ price level according to some of your local

contacts in the field (agents, other exporters from your country, store managers).

Other sources to collect price information can be found in Chapter 8.2.

Margins

Margins within the sports goods market are variable when compared to those of other

consumer goods. High margins are in part justified by costly stocks that retailers have to

maintain and by the high risk factor of high value products such as fitness equipment.

Many sporting goods operate on very low margins and can only be justified by high

volumes and quick turnover.

To generate an adequate profit, the margins on golf equipment for the low-end segment

are lower than the more specialist segment. The underlying reason for this is that the

margin is applied to very low prices and therefore represents a smaller amount of money,

while the amount of work involved in handling it remains the same.

 Information sources Æ Logistic requirements

Freight forwarders and carriers usually provide information on rates, frequencies,

possible combined containers. A cargo & logistics database can be found at

http://www.shipguide.com or a list of all freight forwarders can be found at the

directory http://www.forwarders.com or http://www.fiata.com or for airfreight

http://www.iata.org

Information on packaging can be found in Chapter 9.1 of this market survey and in

the CBI manual ‘Packaging Requirements’. Details on tariffs can be found in Chapter

9.2 and the usual terms of delivery are explained in Chapter 13.4 of this survey

101

In the past few years, buying has become more concentrated. The growth of some larger

brands, and the growth of retail chains that have centralised purchasing for a large

number of outlets, have produced a situation where a relatively small number of buyers

have relatively large purchasing power. As well as being able to force producers to make

increases in quality and service, large buyers are also able to force exporters to accept

prices that may not be economic for them.

In the past, sports goods retailers have enjoyed high margins but more recently, there has

been downward pressure on many prices, with the possible exception of the specialist

enthusiast sector. Retailers and brand owners have had to accept lower margins as they

face greater competition from other sources. Consequently, they have been looking to

control their overheads and forcing their own suppliers to cut their own costs.

Both manufacturer/suppliers and retailers have many costs for design, R&D, marketing,

promotion, advertising, administration, and distribution. In most sports goods, raw

material and manufacturing only account for around one third of the cost – sometimes less.

In general, margins of large organised outlets are higher than those of smaller shops, with

the exception of highly specialised shops (e.g. golf pro shops). Chain stores and super-

stores prefer to buy direct from manufacturers. They carry a wide assortment in large

outlets (floor spaces over 2,000 m²), often at expensive locations and have many sales

staff. This is all reflected in a higher margin.

Because of these differences, retail mark-ups for sports goods vary from 60% to 130%,

with an average of about 100%. This mark-up includes value-added tax (VAT), which

ranges from 16 to 21% on sports goods in the selected EU markets. Actual retail margins

can vary widely around these averages depending on:

 The kind and exclusivity of the sports article.

 The level of demand.

 The necessity of selling-out this article.

 The type of store through which these articles are sold.

In a similar way, importer/wholesaler mark-ups average between 40 and 70%, with the

margins on lower priced articles slightly higher than those on higher priced articles do.

The typical average commission rate for an agent is 10 to 15%. Depending on the

number of parties who handle the product, the net price achieved by an exporter can be

multiplied by a factor of 3 - 4 times. An example of a calculation of the final consumer

price of sports goods is given below. In this case, an importer or wholesaler handles the

product.

Table 10.1 Calculation of final consumer price

Low

Margin

High

Margin

Export price (FOB)

100

Import duties* 3 3

Other cost (e.g. transport, insurance, banking services) 3 3

Landed cost price (CIF)

106 106

Importer's/wholesalers mark up (low: 40%, high 70%) 42 74

Importer's/wholesaler's selling price 148

180

Retailer's mark up including VAT (e.g. 19%) 148

148

(eg 100% in both cases)

Final consumer or retail price

296 328

Ratio FOB - Consumer price (multiplying

coefficient)

3.0

3.3

* If the GSP tariff is applicable for your country, the import duty can be reduced to zero.

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10.6 Product profiles

This section gives product profiles of two key sports goods: fitness/gym equipment and golf

equipment. These products offer good prospects to most exporters from developing countries.

Each profile gives an overview of the market requirements, market structure and main suppliers

with much of the information already given in Part A and Part B (Chapter 9). These profiles serve

as a sample and are meant to encourage exporters to also make profiles for their specific product.

PRODUCT PROFILE – FITNESS/GYM EQUIPMENT

1. Product name: fitness/gym Main items Exercise bikes, free weights, treadmill /steppers,

other equipment (e.g. stomach exercisers, AB Toners, rollers,

exercise mats) resistance equipment (wrist, hand, thigh

exercisers, chest expanders).

Main material: Iron, metal, stainless steel, plastic, rubber

and synthetic material

2. Market requirements:

European quality standards: The product quality

standard: S 52 310 for gymnastic equipment.

Exporters are recommended to check the required

quality standards very carefully with the relevant

national standard organisation and with trade

associations. The general product safety standard

(Directive 92/59/EC), where the products carry the CE

mark. In the case of electrically operated fitness

equipment, there are two directives (92/31/EEG and

93/68/EEG) on electromagnetic compatibility (EMC-

directives).

Average sizes: Sizes of the many different kinds of

articles vary enormously. In general, it is always

important to agree exactly to the requested length,

width and thickness of the article by your customer.

Minimum labelling:

• name and full address of importer and exporter;

• country of origin;

• port of trans-shipment;

• information on the contents

• article number (barcode, if relevant).

Packaging: To avoid damage during transport, pack the

article in plastic bags or bubbled PVC, put in a box.

Other instructions on labelling etc. by your customer

must be followed accurately.

Import regulation

(besides the general information

stated in Section 1.2): Relevant import documents:

• AWB or Bill of Loading

• Proforma invoice

• EUR 1 form for ACP countries

• FORM A for other countries

3. Market Structure:

Average prices: (retail)

Exercise bikes € 180 - 270

Large training equipment € 200 - 900

Resistance equipment (smaller) € 6 -12

Main markets: The main EU markets are

Germany, United Kingdom, France, Italy, Spain

and The Netherlands.

Market trends

Fitness rapidly increased in popularity, partly

because of its modern, fashionable image and

partly because it can be done at any time.

There has been an increase in the number of

participants in fitness activities in the 40+ age

group. As there is a growing number of

frequent participants, who are more educated

and enthusiastic, there is increasing demand for

fitness and training equipment for in-home use.

Free weights is a fast growing segment of the

in-home fitness market, mainly because of an

increased demand from women, who believe

that long-term slimming seems more likely to

be achieved by the regular use of dumbbells.

Sales of exercise bikes and treadmill /steppers

have increased as well. Demand for other

fitness equipment, especially smaller articles, is

increasing. These portable items are relatively

cheap and are often purchased on impulse by

those with specific health or weight worries.

4. Main suppliers:

The largest producing

countries of fitness

equipment are China,

Taiwan, USA, Germany,

and Italy.

The leading non-EU

suppliers of fitness

equipment are China,

Taiwan and USA.

Other suppliers from

developing countries

include: Malaysia,

Thailand, Pakistan, India,

Turkey, Vietnam and

Argentina.

5. How to improve the quality:

Material: Solid and durable material should be used to have the best performance of the article concerned.

Finishing

: The finishing of articles becomes more important to buyers and consumers.

Design:

Articles that provide more comfort in exercising are growing in importance. In addition, easy-storage and multi-functionality

are important in home fitness equipment.

Buyers' instructions on sizes and colours (indicated in Pantone colours) should be followed precisely by the exporter. A minor

discrepancy could be fatal to the perceived product quality.

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PRODUCT PROFILE – GOLF EQUIPMENT

1. Product name Golf Main items: Clubs (irons, woods), putters, balls, bags and

accessories.

Main material: Metal, stainless steel, titanium, leather,

plastic and rubbe

2. Market requirements:

European quality standards: Exporters are

Recommended to check the required quality standards

with the relevant national standard

organisation and with trade associations.

Average sizes: Sizes of the many different kinds of

articles vary enormously. In general, it is always

important to agree exactly to the requested length,

width and thickness of the article by your customer.

Minimum labelling:

• name and full address of importer and exporter;

• country of origin;

• port of trans-shipment;

• information on the contents

• article number (barcode, if relevant).

Packaging

: To avoid damage during transport, pack

the article in plastic bags or bubbled PVC, put in a box.

Other instructions on labelling etc. by your customer

must be followed accurately. Packaging of thin wood o

triplex of more expensive articles is recommended to

avoid theft during transport.

Import regulation

(besides the general information

stated in Section 1.2):

Relevant import documents:

• AWB or Bill of Loading

• Proforma invoice

• EUR 1 form for ACP countries

• FORM A for other countries

3. Market structure:

Average prices: (retail)

Golf balls (15 pcs.) € 20 - 30

Putters € 20 - 40

Golf bags € 55 - 70

Golf clubs (irons and woods) €225 - 315

Main markets: The main EU markets are

United Kingdom, Germany, France, Spain and

The Netherlands. All markets are growing.

Market trends:

Interest in golf increased dramatically as there

was more coverage by media,

communicating to the general public that 'golf

can be a sport for the normal man too'. Golf

has become popular in most of the selected

EU countries. In general, the club

infrastructure has been more open than

before. Around 70% of golfers are men, while

in Germany and The Netherlands there is a

high proportion of female players.

Even if it is easier to play golf on a casual

basis without having to join a club, expensive

equipment is still needed. Both new

technology and the introduction of new

materials such as titanium are constantly

improving equipment, as golfers constantly

strive to improve their game and are often

prepared to upgrade to new equipment. Lost

balls and damaged tees make regular trips to

the golf shop necessary, exposing golfers to

the new ranges.

For exporters from developing countries there

may be good opportunities for golf balls, bags

and gloves.

4. Main suppliers:

The largest producing

countries of golf

equipment are USA,

China, Taiwan,

Japan and United

Kingdom.

The leading non-EU

suppliers of golf

equipment are USA,

China, Taiwan, Japan and

South Korea.

Other suppliers from

developing countries

include: Thailand,

Malaysia, India, Pakistan,

Mexico and Philippines

5. How to improve the quality:

Material: Solid and durable, but lightweight material should be used in order to have the best performance of the article

concerned. The latest golf clubs are made of titanium.

Fittings, locks and clasps

must be of a good quality eg clasps or fittings of golf bags must open and close easily.

Finishing

: The finishing of articles becomes more important to buyers and consumers.

Buyers' instructions on sizes and colours (indicated in Pantone colours) should be followed precisely by the exporter. A minor

discrepancy could be fatal to the perceived product quality.

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11 INTERNAL ANALYSIS: COMPANY AUDIT

After having done the external analysis, where market opportunities are clarified and

priorities are set for potential EU export markets, an internal analysis should tell the

exporter if he can take up the challenge. An internal analysis must clarify which resources

and additional investments are required to enter his target markets successfully without

threatening his existing business.

Based on the internal analysis, the exporter can get an insight into his strengths and

weaknesses by reviewing the following topics: product range, design, product standards,

production capacity, logistics, sales force, financial strength and capabilities

11.1 Product range and design

Product range

In a fragmented EU sports goods market with consumers increasingly more demanding on

design, quality and price, it is crucial for an exporter to create a range which is distinctive,

innovative and appealing to consumer target groups, as described in Chapter 3.2.

Understanding your target group

Most people in the EU countries are attracted by designs from trend setting countries such

as France, Italy, UK and USA, which include seasonal trends and short-term fashions.

When creating your product range, it is important to know that it has become more and

more difficult to relate specific products to clearly defined consumer groups. Trends seem

to be related to the timing of key international sporting events, or lifestyle changes. For

example, in the summer, young people may want to play tennis and buy equipment to do

so, but if there is a major football tournament happening at this time then there will be a

noticeable fall off in sales of tennis equipment.

It is also important to realize that the life cycle of many sports goods has become shorter.

Driven by the speed of the 24-hour economy, items that are popular today may be out of

fashion soon afterwards. Sports goods trends for older people move more slowly than

trends for younger people.

When you have gathered information on trends and forecasts (see Chapter 10.1), the next

step is to translate them into products. Does your range look right? Is it something new?

Product positioning and USP

Positioning refers to how you want consumers or buyers to think about your products

compared to those sold by your competitors. This depends on the type of product and type

of consumer. For example, are they slightly or very interested in new equipment trends,

designs or brands? There are differences by country as well. For instance, water sports may

be regarded as well established in France, while in the UK they are much less popular.

In today’s increasingly global market place, it is more difficult to be distinctive. Exporters

from developing countries are perfectly capable of producing high quality sports goods.

There is a continual demand for new products. As trends change so quickly nowadays,

flexibility and ongoing innovation in new products are expected by consumers and buyers.

One supplier of sports goods aimed at the youth market states that they keep 10,000

items in their showroom and produce over 500 new designs each month. Try to find out

your main point of difference and on what basis you could excel.

A few points of difference are:

Î Skills : Specially-made goods created by imaginative finishing or material

combinations

Î Country : Sports goods which are distinctive to their country of origin.

Î Material : The use of unique materials or use of a unique combination of materials.

Î Design : Become specialist in goods which are unique or specific to your own culture.

Î Price : Whatever price point you work to, make sure that you are providing best

value rather than lowest price.

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It is very important to match your particular expertise with a particular target group or

seasonal trend. Here collaborating with a retailer or manufacturer in the country intended

for export would help give a range local relevance.

Product adaptation

Depending on the type and style of product, you may have to adapt your current range for

the export market in order to achieve a good product-market match. This will require an

investment in terms of design, finish etc. So here you will need to be sure that the costs of

adapting your manufacturing will be justified by the potential sales from your target markets.

Flexibility

Be aware of the differences in consumer tastes between different EU countries. A small

variation in terms of material or colour (pantone) can be crucial, especially with young

sports enthusiasts.

 Key questions on product range:

- What is the specialty of my company and how do I stand out from competitors?

- Which consumer target group would be interested most in my sports goods?

- Are there large differences in target groups per country?

- What is required to adapt my product for my target markets?

- What is the best positioning strategy for my sports goods range?

- How to make my product concept - which items and complementary products?

- Can products of other exporters in my neighbourhood complement this range?

- What should be the design, shape, size and colour?

- Do I need an in-house designer or work with a well-known designer in target market?

- How brand sensitive is the market?

Product Design

The right design and styling is critical in developing new products. Looking for new shapes

and applications should be never ending. Buyers are curious to know what is new in your

range. This keeps the relationship alive. Retailers expect new products every six months as

a minimum. Hence, keep up with this pace e.g. by having your own design department,

working together with designers or e.g. trainees from design schools in your target markets.

Basic considerations in new designs are:

 Product and production efficiency

 Fashion, colour, material, appeal and styling

 Inspiration

 Quality standards

 Environment

 Product profitability.

 Information sources Æ Product range:

Information about product segments, consumer target groups and trends can be found

in Chapter 3.2 of this market survey. Additional information can be found in trade and

consumer magazines e.g. Sport Premiere Magazine in France, Sports Business in the

UK, Sport und Mode in Germany.

In addition, forecasts can be found at CBI’s download plaza (http://www.cbi.nl) and

from the International fairs in Munich (IPSO), Milan (MICAM) and Anglet, France

(GLISSEXPO). Another source of inspiration is watching live sport on TV in the target

country. A high degree of sports participation is encouraged by TV viewing.

You could buy some competitive products or during exhibitions study how competitive

products are presented. During visits, you could ask buyers or talk with editors of

magazines about the latest developments in sports goods. Alternatively, store checks

or asking the opinions of some people you know in your target market may help.

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Before introducing the new product, it may be worth registering its design in order to

prevent competitors from copying the product (see Chapter 13.1) - a common occurrence

in the many industries.

Exporters can also work to designs specified by importers or retailers. It is less risky for

new exporters to the EU to work this way. The more fashionable sports goods products

due to changes in trends - or their designs may not match the European designs. But even

if the design is specified by the customer, other product-related design aspects regarding

colour, size, materials, and finish must also meet the market requirements.

Sports goods sizes and colours: Since national preferences and (seasonal) fashion

trends can vary, it is always important to agree with the customer/importer the precise

dimensions of each article.

With regard to colours, it is recommended that the international Pantone coding system is

always used to avoid misunderstanding, and that colours and finishes are defined and

counter-sampled before agreement on the final order. The choice of (non-toxic) colouring

substances and finishes should also be carefully monitored in relation to the increasingly

stricter EU environmental regulations that restrict the use of materials that can be harmful

to health or the environment.

Product design: Exporters from developing countries need to be aware of the design

function of their article, which can be based on the latest trends or on interest from a

particular consumer target group.

More information on registration of designs and brands in the EU is given on the Internet

site of the Dutch design and brand registration office (Nederlands Octrooibureau); the

address is given in Appendix 3.6.

If the exporter’s article strongly resembles the design or shape of an existing item or well

known brand, they can be prosecuted. Even if there are some slight differences, the

original designer of the item is protected. This will cause serious problems for the importer,

who will make his claim against the exporter who has produced the imitation product.

Besides, copies of existing sports or camping goods are always regarded as cheaper items

and are perceived as low quality goods with a short life cycle.

Counterfeiting: A serious problem in the sports industry is the existence of counterfeit

or imitated products, i.e. illegal branded sportswear or sports equipment, which is often

produced in Asia or the EU and sold at low prices in Germany and other EU countries. In

2003, sales of these counterfeit products caused damage to the sports industry

estimated at around € 45 million, with many items being sold through the Internet.

Major sources of manufacture for these items were the Czech Republic, Poland and

Turkey where whole factories were often set up in reconstructed old Russian barracks,

for example. The main brand imitated was Adidas, followed by Reebok, Nike, Timberland

and O'Neill. In Germany (e.g. Die Deutsche Vereinigung zur Bekämpfung von

Produktpiraterie), the United Kingdom, France and The Netherlands, anti counterfeiting

organisations are currently taking measures to reduce or stop sales of these imitated

sports goods.

Designs specified by importers

Exporters can also work to designs specified by importers or retailers. It is less risky for

new exporters to the EU to work this way. The more fashionable sports and camping goods

changes in trends - or their designs may not match the European designs. But even if the

design is specified by the customer, other product-related design aspects regarding colour,

size, materials and finish must also meet the market requirements.

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11.2 Product standards, quality and production capacity

Product standards and quality

Although buyers are always looking for new and improved lines of merchandise, they tend

to stay with their established suppliers. Exporters must prove that their company and

products are absolutely reliable before buyers will consider them as new suppliers. The

strong manufacturing industries of the EU, China, South Korea and Taiwan produce sports

goods of excellent quality and the standards demanded by trade buyers are similarly high.

Consumers look for items of good quality, which are reliable, of a well-known brand and

which can be used for a long time.

Small deficiencies in quality could be a big problem for the buyer. The costs of correcting

problems can be high in EU countries.

 Key questions on product standards

- Which standards exist in my target markets? (Quality, Safety, Environmental)

- How crucial are they for my type of product? How can I meet them? What are the costs?

- Any issues in terms of safety?

- Can I easily source reliable raw material in my immediate neighbourhood?

- What are the packaging requirements in my target markets? What are the costs?

Information on voluntary and compulsory quality standards can be found in Chapter 9.1.

Buyers check whether the product adheres to international standards and to the standards

in their own country.

After-sales service: Sports or camping goods from developing countries are often

destined for the low-end and middle range market segments. In the middle range segment

in particular, a good after-sales service is very important, since the responsibility for faulty

goods cannot be fully accepted either by the retailer or importer. If something is wrong

with a higher value article, it is generally too costly for the retailer or importer to provide a

replacement, so the exporter must be able to deal with this situation quickly and efficiently.

Production capacity

The sports goods sector in industrialised countries is generally characterised by the

availability of good quality raw materials, low production costs and a flexible labour force

and good designers working with computer aided systems (CAD/CAM). In the EU, China,

Thailand, India and other Asian countries, sports goods can be made in large quantities.

Sports goods from most other developing country exporters are in small quantities and it

is still difficult for them to obtain a significant share in the international sports goods trade.

Here, most manufacturing is more basic, i.e. items are handmade and labour intensive.

However, the major problems in production capacity are more quality related, for

example, a limited level of technology, flexibility and variety in design. It is also difficult

for many developing countries to produce certain levels of finishing of sufficient quality.

In addition, manufacturers in developing countries have difficulty in supplying product of a

constant quality, size and finish. In many cases, manufacturers make a basic part of the

product but often require material from outside sources in order to finish the item. This

makes it hard to control quality and to avoid deficiencies – if a similar item is required.

Nevertheless, control the quality at each step in the production process. This reduces the

rejection rate of the final item. Besides, constant vigilance makes your employees and

outside suppliers pay more attention to quality. Take good care about the quality of finish

of your products. This is extremely important, as it is the first impression given to

importers and consumers.

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 Key questions on production capacity:

- Is there enough spare capacity for extra orders? Is there any flexibility in production?

- Can I make the new items with the current machinery? Is extra skilled workforce

required?

- What will be the cost of setting up additional production capacity?

- Will the export order hinder order for the domestic market?

- Can I guarantee a consistent supply and get all raw materials in time?

- Is the factory clean and tidy enough for the workers and are factory and machinery

representative enough for foreign inspectors/buyers?

- Do I have enough storage facilities for extra production for foreign markets?

11.3 Logistics

When manufacturing in larger volumes e.g. for large retailers, department stores or mail

order companies, lead times are short. As mentioned in Chapter 10.4, there is a trend

towards keeping stock levels as low as possible with more frequent deliveries during the

year. This requires the production of smaller lots of items with shorter life cycles and more

flexibility to produce lines according to specification and supply these items ‘Just In Time’.

Some products are sent by air and bulky items are shipped by sea freight. Airfreight usually

takes a few days, depending on destination. In the case of sea freight, which may take

between 8 – 10 weeks from e.g. an Asian to an EU country, transport requires careful

planning. Freight services must be high quality, safe and, at the same time affordable.

Select a reliable method of transport for higher value items, e.g. courier, airfreight. Do not

use the normal post. When using a courier, it is recommended that you use the same

courier as the importer or buyer, since they can benefit from discounts.

When starting an export business, you must not only estimate costs accurately before

entering into a contract, but also ensure that the shipping facilities in your country can

guarantee delivery within the contractual time frame. Are the shipping facilities reliable? –

this is particularly difficult to control if you are not near to a port or airport. Other problems

may occur when products have to travel a long distance overland before reaching the port,

and/or has to be stored for a while due to a delayed shipping schedule. In these cases,

having a reliable shipping agent is essential. More information on delivery terms can be

found in Chapter 13.4.

The best solution would be to use a shipping agent or freight forwarder to arrange

transportation services on your behalf. As they are familiar with import and export

regulations, they can simplify the shipping process. It is important to use a forwarder that is

experienced in handling sports goods to minimise the risk of damage and who can provide

good advice on safe export packaging.

They also must have experience and preferably speak the language of the destination

country. They must also provide assistance in handling all documentation, including export

licensing. Freight forwarders are cost effective to use, because they can negotiate the best

rates. They usually operate on a fee basis paid by the exporter.

 Key questions on logistics:

- How often are you able to deliver product to your target markets?

- What lot sizes do you generally produce or are you able to produce?

- What combinations of items can be made for different customers?

- How to shorten the physical distance (if any) between factory and port or airport?

- What is the safest way to insure the items, and what costs are involved?

- How to reduce the risk of possible theft of the items?

- What are the typical costs of transportation, document handling?

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11.4 Marketing and sales

When exporting sports goods, a combination of marketing tools (product, price, place

and promotion) is required to keep control over your export venture. How to use your

marketing tools and build up a long-term business relationship with partners in your

target market will be covered in Chapter 13.

When exporting for the first time, this demands an investment in terms of time, money

and skills. You may consider recruiting a new experienced member of staff to co-ordinate

your marketing strategy. There will certainly be a need for someone to spend periods

away in the target markets depending on the volume of your export business.

 Key questions on marketing and sales:

- Who will be (full-time) responsible for managing the export sales and marketing

functions?

- How well can he/she do the job?

- What sort of additional training is needed (strategic/sales skills/language/ technical/

trends)?

- Who do you know in the target markets?

- What sort of procedures will be needed to carry on your usual business when visiting

the target markets?

- How do you feel about having to travel a great deal and spend considerable periods

away from home?

- Are you open to other cultures with business practices quite different to your own?

- What sort of additional management information systems will be needed in order to

monitor the new overseas target markets?

- What sort of promotional material is available for overseas markets?

Perhaps you have existing contacts in your target markets, e.g. relatives, friends,

suppliers etc. They may gather information, monitor progress and follow up leads.

All marketing planning, sales and promotional activities involved in exporting take place

in the sales or marketing department – depending on the size of your business. This

department is responsible for the marketing and sales of products in the domestic and

foreign markets, as well as for all operational and quality control issues. A simple sales

organisation usually consists of office personnel and a field force.

Office personnel Field force

 Handling correspondence

 Handling offers and orders

 Issuing forwarding instructions

 Issuing and checking invoices

 Controlling schedules

 Keeping customer records

 Expediting product samples

 Keeping sales statistics

 Evaluating markets

 Dispatching goods

 Quality control

 Selling

 Visiting customers

 Presenting new products

 Discussing and implementing

campaigns

 Discussing listings

 Holding yearly reviews with customers

 Implementing selling prices

The marketing and planning is usually controlled by the company management, based

on the activities and achievements of the sales department. An essential tool used in

sales departments is a detailed and up-to-date customer database. The customer

database contains the following information:

- Basic data on the customer (e.g. long-term information - name, address, telephone

number, etc.);

110

- Changing data on the customer (information resulting from business with the customer

such as telephone calls, offers, sales statistics, etc.).

The customer database gives a sales person a review of the most important customer

information when planning a telephone call. If possible, the customer database should be

computerised, because this simplifies changes, updating, sorting and selection procedures.

If this is not possible, customer information should be kept on file cards (see samples).

Customer Data Sheet

Company: ...................................... Customer no.: _ _ _ _ _ _ _ _

Street: ...................................… Customer class*: oA oB oC

P.O. Box: ...................................... First contact date: _ _ / _ _ / _ _

Postal code: ..................................... Sales person: ............................

Town: ..................................... Customer type:..........................

Country: ..................................... (agent, importer, retailer)

Tel.: ..................................... Sales last year: .........................

Fax: ..................................... Sales planned this year: ...............

E-mail: .........................…………… Method of payment: ...................

Bank: .................................... Delivery conditions: .................…

Bank address: .…………..…………… Remarks: .................................

Account No: …………………………… ............................................

Contact persons:

1 Title: .............. First name: ................. Name: .......................

Function: ............ Tel.: .................. Fax: .....................

2 Title: ................... First name: ................. Name: .......................

Function: .............. Tel.: .................... Fax: .....................

Contact record:

1. Contact date: -- / -- / --

2. Sort of contact (tel., visit, e-mail)

3. Issues agreed – topics to follow up

* Classify customers by importance to your company (sales, quality of relation, etc).

Customer specific information (personal)*

hobbies when and where met family

Mr. ……..

Mrs………

Mr………

Mrs……….

etc.

e.g. he likes old cars - last met at GLISEXPO - his son likes

travelling

e.g. good tennis player - will visit Mauritius - husband

likes Indian

food

etc.

* This information is important, but should not be emphasised

in the conversation, especially not at the start of a relationship.

These topics could come up in a more social situation.

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11.5 Financing

As with any other approach to business expansion, direct exporting will involve a

considerable investment, not only in time and effort, but also money. Before you get close

to obtaining that first export order, you will incur costs for market research, design and

travelling. Further down the road you will need to have sufficient working capital to span

the gap between the time you pay out for day-to-day running costs, raw materials, freight

charges and insurance, and the time you receive payment from your customers. Here your

bank could be a useful source of information. They can provide you more information than

just the financial issues.

 Key questions on financing:

- What do you need to invest in order to get a clear idea of your export opportunities?

- How much would be the cost for additional resources (machinery/designer etc.)?

How can you fund these extra costs?

- In case of seasonal products, can you invest regularly in new designs necessary to

remain competitive?

- Is capital from other sources necessary for financing the operation? Any funds

available?

- How much will the export sales and marketing costs be and how will this be funded?

In the case of outsourced or licensed manufacturing, less investment is required for

exporters. Here, the financing is limited to the production process, the purchase of raw

material and the possible finishing.

11.6 Capabilities

Commitment to export

In addition to an in-house staff with international experience, your company should be able

to generate the physical and administrative infrastructure to deal with increased activities

from exporting - not only in dealing with orders but also with processing Customs and

shipping documentation. If this type of infrastructure is limited, then it is a weakness in

developing sustained export activities.

Export experiences

It is important to learn from experience. If the company has tried but failed to penetrate an

export market previously, this should be analysed to determine where things went wrong.

Language and culture

Alongside knowledge of export procedures and regulations, it is essential for you and other

staff in your company to know the language of your target market. Although English is often

accepted, good knowledge of the local languages is a competitive advantage and you may

become aware of hidden feelings faster. Be aware that in France, Italy, Spain and Greece

you must speak the local language. There are even regions in e.g. Spain such as Cataluña,

The Basque country or Andalucia where people strongly stick to their own language.

In addition, each EU country has its own culture and business manners. For example,

Germans are perfectionists; Dutch people are very direct, while French people are formal

but become milder once they know you better. Italians are people with good taste

(especially for designs), while Spaniards take their time in decision-making – and pushing

them too much has often the opposite effect.

Try to get familiar with the local business customs. Literature on this is available in

bookstores. You can also find information at embassies or local Chambers of Commerce.

If necessary, translators can be found through embassies or via commercial translation

offices in your target country.

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12 DECISION MAKING

12.1 SWOT Analysis

After the External (Market Audit) and Internal analyses (Company Audit) have been done,

the exporter can set out his position in the EU sports goods market and assess where his

company may need improvement in order to compete effectively in his target markets.

One widely used planning technique is to summarise the findings from Chapters 11 and 12

into a SWOT matrix, taking the following two points of view:

 Opportunities and threats in the marketplace

From your external analysis, you have an idea which EU countries to approach. It is

now time to start summarising all opportunities and threats you have found on matters

such as: market development, your target group, market niches, trends in fashion,

sports goods design, production trends, sports goods trade flows, price developments,

non-tariff barriers (e.g. environmental issues) or any other relevant topic. These summary

conclusions should provide you with enough insight into the opportunities and threats in

the EU market.

 Your own strengths and weaknesses

The internal analysis you have done should provide you with insight into your own

strengths and weaknesses. Topics to be assessed include: your specialty, your

sports goods range, design capabilities, product standards, production capacity,

flexibility, logistics, sales force, financial strengths and the capabilities, experience and

commitment of your company to approach overseas markets.

This SWOT matrix below only serves as an example. Here a combination is made by

market and by sales channel. You could do your own SWOT analysis tailored to your

specific situation and either consider your target market or your sales channel. It

depends on the type and size of your company, your target countries, the type of

sports goods and trends in fashion etc..

Opportunities

- Trend towards more in-home exercising.

- Consumers looking for reasonable prices.

- East European sports enthusiasts with

more disposable income.

- EU manufacturers require products which

involve intensive labour and skills.

- …………………………………………………..

Threats

- Pressure on prices of items from

developing countries, especially

machine-made items.

- Consumers increasingly demanding in

terms of quality, designs and brands.

- Trendy sports increasingly short lived.

- ………………………………………………

Strengths

- Specific design based on cultural heritage.

- Low labour cost, flexible production

system and export experience to the

Dutch market.

- Strong domestic tradition in the sport.

- The use of special materials in designs.

- …………………………………………………..

Weaknesses

- Limited production capacity, for

machine-made items.

- Difficult to find good experienced labour.

- Keeping up with fast pace of innovation.

- Low own financial resources.

- …………………………………………………

Optimise your strengths and see how to overcome weaknesses in the future and how to

deal with threats in the market place. The result of your SWOT analysis, the possibility

to overcome your weaknesses and the degree of risk when entering target markets, are

crucial for your decision - whether or not to start exporting to the EU -.

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12.2 Strategic Options and Objectives

From your SWOT Analysis, you should gain enough confidence to know if you are able to

export to the EU sports goods target markets with more opportunities (than threats) and

if your company is strong enough to start this venture. In order to export:

9 You know if and how your specialty could appeal to your target group and how

to adapt or restyle your sports goods range for export markets.

9 You may decide to concentrate on a few growing target markets, especially if

your company is new to exporting. You can divide markets into:

- Primary markets, where you can expect a relatively fast pay back against

investment at a relatively low risk. Also referred to as pilot or target markets.

- Secondary markets expose your company to a greater risk. But if you

have enough resources and approach them with caution, they are still

capable of generating profit. You could target these markets after you have

gained more experience in the EU.

- Tertiary markets may be interesting to approach actively in the future. But

for the time being you prefer to produce for EU manufacturers.

9 You know the best sales channels when entering the chosen markets.

9 You know the risks, threats and difficulties and what strategy and tactics are

required to tackle them and take this up as a challenge.

Once you are confident about your sports goods range for export markets, establishing or

expanding your export business should not harm your current business. In other words,

does an export marketing venture fit into your company’s objectives? In order to answer

this question, you will have to ask yourself:

 What does your company want to gain from exporting?

 Is the export goal consistent with other company goals?

 Will the export business give you a satisfactory return on investment? Maybe your

investment would be better used expanding your domestic business

Companies can waste a lot of time and money trying to enter markets that do not have

enough potential or are not suitable for their product. So try first to become familiar with

the EU market, set your priorities to a few markets, focus on one or a few target groups

and be well prepared in order to succeed in export marketing.

Once you have made a positive decision, you are ready to formulate your objectives

in a Market Entry Strategy (MES) for your target markets and plan your activities in

an Export Marketing Plan (EMP). With the marketing actions and tools covered in

Chapter 13, you should be able to draw up the MES and EMP. General export

marketing information can be found in CBI’s Export Planner and general information

and methodologies for doing your own market research can be found in CBI’s manual

’Your guide to Market Research’

Step 1:

Internal analysis

(Company Audit)

Step 2:

SWOT analysis

Step 4:

Marketing

Actions

Æ MES

Æ EMP

Evaluation / feedback

Step 1:

External analysis

(Market Audit)

Step 3:

Decision making &

Formulating

objectives

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13 EXPORT MARKETING

Once the decision to export sports goods to the EU is taken, you next have to find out how

to build up this export business successfully. This Chapter provides a general view on using

your marketing tools effectively, in order to establish a business relationship with

prospective buyers or trade partners in EU markets. The marketing tools are covered here

in the following way:

 Matching the products and the product range.

 Building up a relationship with a suitable trading partner.

 Drawing up a general or a specific offer (pricing issues).

 Handling the contract (terms and fulfilment).

 Sales promotion, advertising, communication, sales organisation and trade fairs.

13.1 Matching the products and product range

You have already reviewed your product range and possible adaptation of items in terms

of material, design and colour for primary markets in Chapter 11.

Creating a point of difference or specialty

Based on the information collected in your external and internal analysis, you may be aware

of most sports goods ranges by competitor suppliers e.g. in China and other Asian

countries. Try to distinguish your product from mass produced products by creating a

special range, based on your skills, country, material or specific design. It is important that

your range conveys this expertise or its authenticity, which could match the chosen target

group and be up with one of the seasonal fashion trends. A conversation or co-operation

with a supplier in your target market is crucial in order to give your range a ‘local touch’ or

avoid a local error.

More variety in sports goods products

In the past ten years, sports goods have become far more fashionable, with a greater

variety of styles. An overview of the most common varieties is given in Table 13.1.

Table 13.1 Type of sports goods products and their varieties

Type of product Variety

Fitness/gym

Exercise bikes, free weights, treadmill/steppers, other equipment

e.g. stomach exercisers, AB toners, rollers, exercise mats,

resistance equipment e.g. wrist, hand, thigh exercisers

Golf Clubs (irons and woods), putters, balls, bags, accessories

Water sports

Water skis, surfboards, sailboards, inflatable vessels, headbands,

spectacles, articles/accessories for diving, surfing and snorkelling

Balls

Inflatable balls (football, rugby, basketball, volleyball, handball,

polo), tennis, squash, hockey and cricket balls

Camping

goods

Tents, sleeping bags, mattresses, cooking gear, binoculars, instant

food, mosquito nets, medical sets and technical outdoor equipment

e.g. crampons, ice axes, ropes, accessories

Skates

Ice skates & roller skates, skating boots, parts and accessories for

ice and roller skates

Snow sports Skis, ski fastenings and bindings, ski equipment, ski sticks

Team/field

sports

Cricket & polo equipment, articles & equipment for baseball,

hockey, sleds, toboggans, other articles & equipment for indoor and

outdoor sports, swimming and paddling pools

Sports gloves

Gloves for general physical exercise or any other sports, made of

leather or other material

Fishing tackle Rods, hooks, other line tackle, fishing nets, reels

Horse riding

Saddles, harnesses, traces, leads, knee pads, muzzles, saddle

cloths, saddle bags

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Creating a concept and product range

When creating new items, you should try to present a product concept and offer a range

of products that fit the concept you have chosen. Most buyers prefer to make a selection

from different items, within an idea or concept matching their target group or fit into the

latest trend for the coming season, e.g. in department stores. Buyers are more easily

persuaded of the merits of a concept. Once they believe in it, they are more likely to take

particular items within this concept. You could test this range of sports goods products

with some of your current buyers beforehand.

Copying

As already mentioned in Chapter 11.1 - Product design -, try to avoid copying an existing

sports goods range. Copying is still a common issue and can have a very disturbing effect

on your business relationships, especially on products sold in markets under exclusive

arrangements. Copies are always regarded to be cheap and of a low quality. Apart from

the irritation it causes with your buyers, it also ruins the good name of the original item.

As competition in the EU market has intensified, your range could be copied and launched

on the market by someone else. Before introducing the new product, it may be worth

registering its design in order to prevent competitors' copying the product. In this respect,

it is important to know which laws exist on patents and trademarks; where to apply and

what the costs to register are. The violation of copyright laws may result in a penalty of

thousands of Euros for one item. In addition, the news will spread fast and seriously harm

the reputation of the offender.

Protection of your items

In order to protect your range, you could contact a legal representative in your target

market. You can request them to certify e.g. pictures or photocopies of your products.

Here you will need a certification stamp of the tax authorities. You could also get the

stamp direct from the tax authorities. This stamp gives you a tool to intimidate the

offender and you could start up legal proceedings, with or without the help of the local

legal representative. It is important to check their costs beforehand.

More information on registration of designs and brands in the EU, is given on the Internet

site of the Dutch design and brand registration office (Nederlands Octrooibureau) –

address see Appendix 3.6.

Outsourcing

When exporting to secondary or tertiary markets, you should give buyers a clear idea

on the raw material (also whether handmade or not), the available production facilities,

production process, production capacity, flexibility, delivery, and the possibilities for

supplying extra parts or special finishing according to the requirements of your

prospective partner.

Packaging

Special transport packaging is necessary to ensure that your products arrive in perfect

condition at their destination. Unsuitable packaging can cause the product to be damaged

– see Chapter 9.1. When packing for export, pay attention to the following key areas:

Key areas for attention:

Î Follow the packing instructions from the buyer or importer exactly, including all the

details specified, even to the position of a sticker or label. Mistakes or discrepancies

may result in a consignment being rejected or repacked by the importer.

Î Pack the product in such a way as to minimise the opportunity for damage during

storage and during transport, such as packing fragile articles in plastic bags, soft

paper or bubbled plastic within a small box.

Î On the other hand, when sending items by courier or air freight, try to avoid

excessive volume in order to keep the freight charges as low as possible.

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13.2 Building up a relationship with a suitable trade partner

Researching trade partners

Among many potential customers/buyers, you must identify those who match your

specialty and product range, who are suitable to build up a long or short-term business

relationship. Check your potential customer’s financial status and credibility. At the end

of the identification phase, you should have selected the names and addresses of suitable

trading partners. Some sources to find information on potential trade partners are:

In your own country:

 The foreign-trade Chamber of Commerce of your target country.

 The Economic Affairs departments or the official representative (Embassy or

Consulate) of your target country.

In your target countries:

 CBI’s linkplaza (http://www.cbi.nl) or check CBI’s company matching database

or export development programmes for sports goods.

 Business support organisations.

 Trade associations / Trade press / National trade platforms or portals (see

Appendix 3).

 Your own country’s public and private trade promotion bodies.

 Your own country’s diplomatic and consular representatives.

 Chambers of Commerce.

 Trade fair organisers (catalogues).

Be aware that sources of information often only answer written inquiries and may take

some time in sending a reply. A detailed inquiry improves the chance of precise

information and prevents future misunderstandings. Also, take the cultural differences

between EU markets into consideration in your approach (see also Chapter 11.5).

Evaluate names and addresses you receive, using the following criteria:

 Is the importer active in the target country you selected? Which other countries?

 To which channels/retailers does he supply? Can you still approach large retailers

yourself – even if you are in business with his company?

 Does the importer focus his activities on your item-related specialty?

 Are they interested in a long-term relationship or are only interested in ‘one shot’?

 Do you have enough sound information about the reliability of this partner?

 Check your potential buyers’ financial status credibility by credit rating reports by Dunn

and Bradstreet (http://www.dnb.com

), otherwise try to negotiate a LC (letter of credit).

 Is the information on his company complete (contact person, address, tel. and fax,

e-mail).

Using these criteria, draw up a priority list of the contact addresses you have received. In

your search, try to select trade partners who are a good match with your company. For

example, if they are too big and you have a limited capacity, they may not be suitable

partners.

Searching partners at trade fairs

While the option of employing a full time European agent is not affordable for some

exporters, it is essential to make sure that potential trade partners are at least given the

opportunity to see what can be available to them.

Trade fairs are tremendously important means for buyers to meet potential new suppliers.

However, a key point to note is that although there is a surplus of suppliers in most sports

goods sectors, good buyers need also to change their range on a regular basis. So, they

are always looking for new products, if not new sources of supply.

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Approaching trade partners

There is a difference in business approach between manufacturers and buyers. In general,

EU manufacturers make sports goods with an appreciation for the use of the product,

whereas buyers often regard them as a commodity for making money. The EU sports goods

industry tends to be dominated by men in high executive positions.

Irrespective of the kind of trade partner, try to ensure that you contact them at the right

time, and in the right manner to give yourself the best opportunity to succeed. Usually in

April/May buyers purchase their winter lines, which should be delivered in June/July. More

information on the seasons can be found at the end of Chapter 3.3 (‘Sales patterns’).

Good communication

In a new relationship try to answer questions as soon as possible. E-mail, telephone and fax

are indispensable. If you receive a question and need a few days to formulate your answer,

let your buyer know that you have received it and are working on it and let him know when

you will be able to give him the answer. Good communication is extremely important in

starting relationships (see also Chapter 11.6).

Samples

Buyers often take a careful approach when starting a 'new adventure' with a developing

country exporter. You may have to send samples before they give you an order. Sample

shipments are very costly and you should judge from his/her explanation as to why they

require a sample before confirming an order. If you promise to do so, and then act quickly,

you will create trust with him/her. If you send it by courier, send a copy of the airway bill

number and an advance notice (by e-mail) to the buyer, after you have sent the samples.

Look after samples carefully when taking them on business trips.

Mail order companies may ask for samples long before the delivery date for their catalogue.

In this case, you should have already negotiated a fixed order with them.

Trial orders

Buyers usually place a trial order and first want to check the following:

Î How the products will be delivered. The delivery date of an order is always specified at

the time of purchase. Be aware that failure to meet the specified delivery will usually

result in cancellation of the order. If you cannot finish something by a deadline, say so

early on.

Î How the exporter can meet their particular needs in terms of e.g. packaging, adaptation

of models, product finish etc.

Î Never ship poorer quality goods than those demanded and agreed upon. If you are

unable to produce the required finish, it would be better to say so and discuss the

possibility with the buyer to have certain items supplied from elsewhere.

Î How smooth communication will be between your company and themselves and other

people in their company.

Those exporters who can give a professional follow-up on these first contacts and particular

requests are likely to receive substantial orders later on. Even if they do not purchase from

you in the first instance, it important to develop ongoing relationships with these buyers.

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13.3 Pricing and drawing up an offer

Pricing

Setting the right price for sports goods is difficult. Some retail prices have been given in

Chapter 8. The difference between the highest and lowest price in most product categories

is very wide. Information on how the price is usually set in the sports goods trade was

provided in Chapter 10.5. In general, some of the following questions should be considered

when setting a price:

How much does it cost to manufacture your product?

 Production costs not only include costs for production, but also for raw

material, design, packaging, distribution and promotion.

 Allow for the costs of any unsold product.

How will you sell your product?

 Do you sell your products directly to customers in the EU?

 Are you producing on a contract basis for an EU manufacturer/supplier?

What is the price of your competitors’ products?

 What do competitors charge and are their products e.g. in terms of

material and volume the same as yours?

 The checklist in Chapter 10.2 and the price structure in Chapter 10.5, will

give you an idea of the prices they charge.

 What could be the upper limit of your price range, comparing your

products to competitors’.

What is the potential demand for your product?

 How unique is your product range or concept?

 To price according to demand you have to know more about the size and

nature of your customer base and their feelings about pricing.

 Consider market trends, niches and opportunities - see Chapters 3 & 10.1

In order to comply with the increasing pressure on prices, it is vital that promising new

items from developing country exporters offer extra value. A new product can be of

interest to a buyer either because it is a unique product, or because it could appeal to a

particular target group, fashion trend or craze, in which case the price is of secondary

importance.

However, still try to monitor your price in relation to your costs of production, your

competitors and your customers. Depending on these factors, you can set your minimum

and definite export prices. Once the price is agreed, try to make adjustments e.g. every

year.

Try to work always with a fixed price list and avoid bargaining. You could offer quantity

discounts as the cost price of an item is lower at higher quantities of production. Most

buyers, especially Dutch buyers do not accept your prices. They always try to negotiate a

discount. If they continue to insist, you could consider a discount on the value of the order

e.g. 5% on € 5,000 or 10% on € 10,000. Be sure here to add this amount to your prices

before you provide an initial quotation.

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Drawing up an offer

There are two different kinds of offers:

Î General offer – or company introduction

Î Specific offer.

Drawing up a general offer

- The purpose of a general offer is to attract the interest of prospective buyers or

trade partners who you do not know well.

- A general offer consists of sending a short profile of your own company and an

overview of your product range with a price indication.

- In a personal letter, briefly introduce your company and inform the prospective buyer

of the advantages of starting up a business relationship with your company, what are

your USP’s etc.

Drawing up a specific offer

A specific offer is legally binding for a certain period of time and is often based on a

specific request from the prospective buyer or trade partner. You must therefore be

capable of fulfilling its terms of contract. You should make a specific offer only when you

know the business partner personally or after you have made the initial contact.

Written offer:

 Name of the person responsible in your company.

 Exact description of the goods offered (preferably using an internationally valid quality

standard specification).

 Quantity or quantities.

 Price of the goods offered in accordance with the Incoterms 2000 (ICC publication, if

applicable, split up by delivery quantities or quality) – see

http://www.iccwbo.org/incoterms/faq.asp

 Possible delivery date and terms of delivery.

 Terms of Payment.

 The validity period of the offer, the waiver and/or extension of the offer.

General remarks

Recommended action for both kinds of offer:

 A telephone call to ask whether the offer (and the samples, if applicable) has/have

arrived.

 An invitation to visit your company.

 Possibly propose a visit to the country of destination. In that case:

- If necessary, hire an interpreter.

- Ask your own consulate or other intermediaries for assistance.

Booking the order

In case you do not need to make an offer and can book an order straight away, write it on

your letterhead (with your companies’ logo and contact details). Make sure that you have

explained your terms to the buyer and put them on your order sheet. Make sure the buyer

signs the order.

Several buyers, especially large companies, use their own order sheets. Be careful that if

you have accepted the order written on the buyer’s sheet, this implies that you have

accepted the order according to his conditions, which are often being printed on the order

sheet. So, always try to study these conditions before you sign the order. On any agreed

buying conditions make sure that you quickly send the buyer a confirmation or Pro Forma

invoice with detailed information of what exactly you have agreed to during the writing of

the order.

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13.4 Handling the contract

When handling the contract, you should consider the terms and the fulfilment:

Contract terms:

 Conclude the delivery conditions according to international guidelines (e.g. Incoterms

2000)

 In the case of trial orders, which are delivered for the first time, sometimes a credit

note for the charged costs of making the samples is sent to the buyer.

Failure to deliver on time is likely to be subject to penalties. A failure in delivery can result

in cancellation of the order. So exporters should be absolutely sure they can meet delivery

dates without delays, before they enter into a contract. Trading relations between exporter

and importer are based on trust, and they can only be built up by meeting the high

expectations of the importer.

Contract fulfilment:

 Procure the delivery documents in good time.

 Comply strictly with all parts of the supply agreement. A standard contract made by the

International Chamber of Commerce (ICC) could be a good reference in order to know

which subjects should be covered in a contract.

 If you cannot comply with any part of the agreement (e.g. delivery delays or quality

problems), inform the customer clearly and in good time.

 Co-operate on a partnership basis and seek a common solution even if conflicts arise.

 Fulfilling the contract should have a high priority, particularly when delivering for the

first time.

 Mention the total annual sales (in value) and the expected sales progress in the next

coming years.

 Termination of the contract should be clarified (when, why and how).

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Payment methods and delivery terms

In the sports goods trade, the payment method chosen will depend on negotiations between

buyer and seller in which both will try to achieve the best conditions for themselves. This

implies that exporters prefer to be paid before shipping the products, while buyers prefer

to pay as late as possible, after arrival, inspection or even sale of the items.

Common methods of payment

Red clause or down payment

Here the importer or buyer orders the goods and pays 50% of the invoice in advance

(instead of a LC). The remaining 50% is paid after the goods have been loaded for

shipment. This method is used when orders are valued up to € 1,000.

Documents against payment (D/P)

Also known as cash against documents (CAD). The buyer takes possession of the goods

only after payment. This method is not so popular; the costs are about 1%, but vary by

country and by bank. This method is used when orders are valued between € 1,000

and 5,000.

Letter of credit (L/C)

The irrevocable L/C is very often used at the beginning of a business relationship when

the importer and exporter do not yet know each other very well. The L/C is irrevocable

and will always be paid when the documents are in exact conformity with the stipulations

in the L/C. The costs vary between countries (e.g. 5%) and depend on the bank. The

cost of an L/C is higher than the D/P method. Payment by L/C is widely used in the EU

when dealing with exporters from outside Europe. As this method is rather complicated

and time consuming, it is mostly used when orders exceed a value of € 5,000.

Do not start production until you receive the L/C. Check the conditions stated in the L/C

against what is on the order sheet (e.g. the requested delivery time). Only after this,

proceed with the order. During the process of the order, check at regular intervals to see

if everything is still going as planned. Correct delivery is so important because you are

going to be paid from a L/C in which all conditions must be followed to the letter,

otherwise payment is not guaranteed.

Clean payment

This is the most common method within the EU. The basic condition here is that both

parties know each other well. The process is fast and reliable, depending on the credit-

worthiness of the importer. The bank carries out the transactions through the Swift

electronic data system and the transfer costs are not very high.

Cheques

Bank guaranteed cheques are generally no problem, though cashing them may take

some time, up to six weeks. Not all personal cheques are accepted.

More details of the payment methods and delivery terms can be found in CBI's Export

Planner. When dealing with every (new) supplier, the importer considers very carefully

which method of payment should be agreed upon. The same applies to the delivery terms.

Most common delivery terms

• FOB (Free on Board): the buyer arranges for transportation and insurance. FOB

must specify the port of departure.

• CFR (Cost & Freight): the exporter pays the freight, the buyer arranges for the

insurance.

• CIF (Cost, Insurance & Freight): the exporter pays the freight and the insurance.

In all cases, once the products have crossed the ships’ rails in the port of departure, the risk

transfers from the exporter to the importer or buyer. For sports goods, CIF is often used.

Details can be found at the Incoterms 2000 of the ICC – see also http://www.iccwbo.org

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13.5 Sales promotion and organisation

Sales Promotion

A first start when exporting can be made by using trade fairs, websites, free publicity and

some advertising in trade magazines, if budget is available. In addition, sales promotion

can be done at a reasonable cost in order to develop new customers and keep in touch

with your current customers. For example by a newsletter (by e-mail), you can show them

that you are actively following e.g. the latest fashion trends in the EU or are well-aware of

the latest developments in new material, certification etc. In your correspondence, a

constant, prompt and reliable communication is vital to build and keep up the relationship

with customers.

When developing new customers:

 Take good care of prospective customers. For example, expressions of thanks after

 you have met them and keep them regularly informed on the product range, etc.

 Brochures on your company and the product range are useful to promote sales.

 Ask existing customers for letters of reference. Such recommendations are particularly

important for new contacts.

Expanding supply quantities:

 In some cases, you may be able to increase supply quantities to existing customers.

 Always answer a letter of inquiry. If you cannot supply this contact, say so, explaining

that you will get in touch with him for the next campaign.

The message

Your product message

Sales promotion requires a large investment. However, starting on a very small scale,

your product range could already convey a basic message, in terms of style, design,

colour and presentation. Your product range will have been developed based on market

research, to appeal to your chosen target group.

Presenting the message to others

It is very important to present your product range as confidently and clearly as possible

to prospective customers or any other related parties in the supply chain through your

own personal selling. In this presentation try to explain what you have found out from

your external analysis e.g.:

- Who your target group is.

- What your sports good could do for them in terms of their own concept or USP.

- Why your product is better than competitive products.

- Where they could go to get it.

Apart from buyers or customers, it is also important to communicate your range to all

other people involved in the sale of your products. Once you are in business with the

buyer, sales people in the supply chain e.g. retail sales staff need to understand this range

well. A written explanation would be the best way to prevent misunderstandings that may

result in wrong information being provided to consumers. This is especially important in

the case of very unique material, craftsmanship or cultural heritage – all of which may be

quite unfamiliar to EU people.

Importance of language and style

If you or your importer does any form of promotion, the language is an important issue

to consider. Always try to put any form in the local language and be aware of the different

interpretations of humour, colour and ‘good taste’.

In addition, the style of your range must be reflected in any promotional presentation.

This means in store and by all people involved in the sale of your product.

More information can be found in CBI’s manual ‘Your Image Builder’.

123

Advertising

Advertising is another tool aimed at increasing the sale of your range. This is relatively

expensive. Always try to combine an advertisement in e.g. a trade magazine with free

publicity, which usually has a much higher credibility than an advertisement. In order

to get the best out of your investment, you will have to clarify:

A clearly defined target group Î Who could buy my products?

A well-formulated message Î What do I want to tell the customer?

Costs and dispersion losses

Two parameters are used to measure the costs of any communication measure:

Cost per contact Î How much does it cost to convey the message to one

target person?

Total costs Î How much does the whole campaign cost?

It must be borne in mind that not all messages sent actually reach the person for whom

they are intended. The costs for messages that do not reach the right consumer are

called dispersion losses.

Promotion

Manufacturers/suppliers, importers, retailers and other buyers travel extensively to

international trade fairs to look for new products, to decide upon suitable ranges for their

market and to keep up with the latest changes in sports, sports equipment, product

performance and design, fashions, materials and colours.

There are well-established European fairs where buyers from the countries in question

can be found. However, trade fairs are very much international events, you are quite

likely to find buyers from major EU countries who travel to trade fairs held in the developing

world. India and the Far East are well established on the international map of sports goods

trade fairs.

The ISPO in Munich (Germany), MICAM in Milan (Italy), Go Outdoors (United Kingdom) in

London and SnowbySig in Grenoble (France) are the most important fairs for sports goods

in the EU. The ISPO (Munich) is the leading fair for sports goods, which is held twice a year

(summer and winter) with around 40,000 visitors and 1,585 exhibitors at each fair. The

SnowbySig is focussed on gliding sports (e.g. snow sports, waterskiing, skateboarding,

paragliding etc.), with around 13,000 visitors and 200 exhibitors, and is held annually.

Other large specialised fairs include the European Outdoor in Friedrichshafen (Germany)

and Golf Europe in Munich (Germany). For a list of the most important European sports

goods trade fairs and addresses of trade fair organisers of the most important fairs in the

selected EU markets – see Appendix 3.4.

There is a permanent exhibition at the Sports Business Center in Leusden that plays an

important role in the trade in sports goods in The Netherlands. Here the most important

importers and wholesalers have showrooms in the centre and special fairs are organised for

the retail trade twice a year. The National Spring Preview Fair in January is more focussed

on winter sports (equipment, clothing and footwear), whereas the National Autumn Fair in

September gives a preview to the new collections for summer sports. The Sports Business

Center also organises specialised national fairs such as the Spocom (focussed on snowsports),

Outdoor Holland and Get-In-Line (skating and gliding sports).

The centre is open every working day and retailers can order new merchandise for their

shops. Every Monday the representatives of each sales company are present. For the

exporter, a visit to the centre gives a good impression of what is currently on sale in the

Dutch market. Northern EU countries have similar permanent exhibitions.

124

Participation in national and international trade fairs can be a useful sales promotion

tool. This requires comprehensive and detailed examination with regards to:

- selection of a suitable trade fair and preparations for participation;

- participation;

- follow-up.

Trade fairs, as with promotional campaigns, need thorough preparation:

Before the trade fair:

 up-date your customer files

 clarify what kind of buyers you are looking for (long-term relationship or ‘one-shot’)

 prepare all documentation (business cards, company brochures, product range, etc.)

 make a preparatory mailing, informing your present and potential customers of your

stand number and inviting them to visit you in the stand and/or propose to visit them

(i.e. the existing clients).

 carefully consider the range you are displaying at the fair to project accurately your

desired image

During the trade fair:

 register all contacts

 once a buyer stops at your booth, try to find out what kind of buyer he/she is

 find out his/her profile and make notes

 what is the sort of target group he/she serves, with how many sales force

 find out who their main competitor is (they often won’t tell you)

 find out from which suppliers they currently source and in which countries.

 if possible, try to take orders at the fair

After the trade fair:

 enter all your contacts in a data base

 write to the contacts to thank them for their visit and send the information you

promised

 consider a second mailing several months after the first one, to remind your contact

that you would be happy to answer any inquiry he may have.

Business support organisations and Trade associations can be of help in providing

information about relevant trade fairs. More information can be found in CBI’s manual

‘Your Showmaster’.

125

Appendices

126

APPENDIX 1 DETAILED HS CODES - SPORTS GOODS

HS Code Product description

9506 Sports goods

Articles and equipment for general physical exercise, gymnastics,

athletics, other sports (including table-tennis) or outdoor sports, not

specified or included elsewhere in this chapter; swimming pools and

wading pools; parts and accessories thereof.

Sports Equipment

Snowsports

950611 Skis for winter sports

95061110 Cross country skis

95061120 Downhill skis, inc monoskis

95061121 Monoskis and snowboards

95061129 Downhill skis excl monoskis and snowboards

95061180 Skis for skijumping

95061190 Skis for ski jumping and alpine skiing

950612 Ski bindings

950619 Ski equipment for winter sports (other then skis, fastenings and bindings)

95061910 Ski sticks

95061990 Ski equipment for winter sports (excl. skis, bindings and ski sticks)

Watersports

950621 Sailboards and parts and accessories thereof

950629 Waterskis, surfboards, sailboards and other water-sport equipment; parts

and accessories thereof:

95062910 Water skis

95062990 Surfboards & other water-sport equipment (excl. sailboards & water skis)

890310 Inflatable vessels for pleasure or sports

Golf

950631 Golf clubs, complete

950632 Golf balls

950639 Golf equipment (other)

95063910 Parts of golf clubs

95063990 Golf equipment (excl. balls, clubs and parts thereof)

Table tennis

950640 Articles and equipment for table-tennis

95064010 Bats, balls and nets for table tennis

95064090 Articles and equipment for table tennis

Rackets

950651 Tennis rackets, whether or not strung

950659 Badminton and similar rackets, whether or not strung

95065910 Badminton rackets, whether or not strung

95065990 Squash or similar rackets, whether or not strung

Balls

950661 Tennis balls

950662 Inflatable balls

95066210 Inflatable leather balls

95066290 Inflatable balls (excl. of leather)

950669 Other balls

95066910 Cricket and polo balls

95066990 Balls (excl. inflatables, golf, table tennis, tennis, cricket & polo)

127

Skates

950670 Ice skates and roller skates, including skating boots with skates and rollers

attached; parts and accessories thereof

95067010 Ice skates incl. skate boots with skates attached

95067030 Roller skates incl. Skate boots with rollers attached

95067090 Parts and accessories for ice skates and roller skates

Fitness/gym

950691 Articles and equipment for general physical exercise, gymnastics or

athletics or other sports

95069110 Exercising apparatus with adjustable resistance mechanisms

95069190 Articles & equipment for general physical exercise, gymnastics

Team / field sports

950699 Articles and equipment for indoor and outdoor sports, swimming and

padding pools

95069910 Cricket and polo equipment (excl. balls)

95069990 Other articles and equipment for sport and outdoor games

Sports gloves

420321 Special sports gloves, of leather and composition leather

Horse riding

4201 Saddlery & harness for any animal, incl traces, leads, knee pads, muzzles,

saddle cloths, saddle bags, and the like of any material

Camping goods

630621 Tents of cotton

630622 Tents of synthetic fibres

630629 Tents of textile materials

630641 Pneumatic mattresses of cotton

630649 Pneumatic mattresses of textile materials

630691 Camping goods of cotton (excl. tents, awnings and sunblinds, sails,

pneumatic mattresses, rucksacks, knapsacks and similar receptacles, filled

sleeping bags, mattresses and cushions)

630699 Camping goods of textile materials (excl. of cotton, tents, awnings and

sunblinds, sails, pneumatic mattresses, rucksacks, knapsacks and similar

receptacles, filled sleeping bags, mattresses and cushions)

940430 Sleeping bags, whether or not electrically heated

94043010 Sleeping bags, whether or not electrically heated, filled with feathers or

down

94043090 Sleeping bags, whether or not electrically heated, excl. filled with feathers

or down

Fishing tackle

9507 Fishing rods, fish-hooks and other line fishing tackle; fish landing nets,

butterfly nets and similar nets; decoy "birds" (other than those of heading

9208 or 9705) and similar hunting or shooting equipment; parts and

accessories thereof

950710 Fishing rods

950720 Fish-hooks, whether or not snelled

95072010 Fish-hooks, whether or not snelled, unmounted

95072090 Fish-hooks, whether or not snelled, mounted

950730 Fishing reels

950790 Line fishing tackle, fish landing nets, butterfly nets and similar nets;

decoys and similar hunting or shooting requisites

128

APPENDIX 2 DETAILED IMPORT/EXPORT STATISTICS

This section gives Eurostat statistics covering imports and exports of the EU and selected

EU countries. Import statistics of the selected product groups are given. The 10 new EU

Countries’ data refers to 2003. Export statistics can be found at the end of this section.

EU imports of sports goods by major source, 2001-2003

Tonnes and € 1,000

2001 2002 2003

value € volume value € volume value € volume

TOTAL 4,871,247

714,060

5,098,906

766,386

5,219,377

909,466

Intra-EU 1,838,198

202,015

2,020,311

215,998

2,107,946

254,630

of which:

Germany 295,304

39,184

305,082

32,543

280,592

38,101

France 272,782

27,426

309,559

34,974

322,203

38,851

Italy 241,747

26,172

254,003

26,835

332,479

31,981

Austria 195,623

9,180

176,829

8,757

50,991

4,844

Netherlands 193,356

24,123

239,473

26,504

263,015

31,193

UK 184,086

10,629

219,317

10,220

190,360

11,143

Belgium/Lux. 154,937

28,725

195,689

38,439

206,678

44,957

Spain 93,151

13,536

109,390

16,041

231,177

26,080

Sweden 47,377

5,135

92,796

6,865

85,835

6,805

Ireland 30,153

2,482

31,557

2,718

25,612

2,430

Denmark 45,800

4,255

59,119

6,020

56,532

5,893

Finland 46,827

4,026

48,041

3,996

63,063

7,228

Extra-EU 3,033,049

512,045

3,078,595

550,388

3,111,431

654,836

of which:

Other

countries

USA 568,250

37,298

570,870

45,358

487,375

46,792

Taiwan 301,717

66,277

257,214

56,258

224,517

50,133

South Korea 61,979

5,929

48,503

3,935

39,726

3,042

Hong Kong 41,984

3,617

43,974

4,359

28,176

4,203

Canada 59,622

16,451

49,562

13,061

49,543

14,267

Japan 47,129

1,963

44,706

2,065

46,264

2,112

Switzerland 42,609

1,770

38,049

1,778

38,504

1,725

Eastern

Europe

Poland 41,541

9,026

40,732

9,837

38,082

12,296

Czech Rep. 75,494

10,099

89,000

11,102

110,843

13,080

Ukraine 23,784

1,923

24,437

2,124

28,557

2,489

Romania 30,316

2,971

23,498

3,026

44,512

3,975

Hungary 18,221

2,587

15,955

2,116

12,348

1,764

Slovakia 11,954

1,562

11,138

1,579

16,293

1,817

Estonia 17,947

1,825

17,380

1,802

15,468

1,412

Developing

countries

1,635,391

341,602

1,719,764

382,856

1,832,906

482,968

China 1,223,768

296,823

1,300,888

334,449

1,408,699

424,325

Pakistan 99,033

10,963

122,785

14,953

116,422

16,058

India 71,141

8,838

81,312

10,659

80,134

12,070

Thailand 80,843

6,813

62,993

5,226

70,674

6,857

Malaysia 23,274

5,612

27,225

5,527

24,247

5,778

Vietnam 26,898

3,301

29,640

3,455

30,061

5,664

Source: Eurostat 2004

EU15 IMPORTS BY SOURCING COUNTRY

129

Imports of sports goods by major developing countries, 2001-2003

Tonnes and € 1,000

2001 2002 2003

value € volume value € volume value € volume

TOTAL

4,871,247

714,060

5,098,906

766,386

5,219,377

909,466

Developing

countries

1,635,391

341,602

1,719,764

382,856

1,832,906

482,968

Asia

1,561,451

336,156

1,666,090

378,085

1,775,190

476,050

China 1,223,768

296,823

1,300,888

334,449

1,408,699

424,325

Pakistan 99,033

10,963

122,785

14,953

116,422

16,058

India 71,141

8,838

81,312

10,659

80,134

12,070

Thailand 80,843

6,813

62,993

5,226

70,674

6,857

Malaysia 23,274

5,612

27,225

5,527

24,247

5,778

Vietnam 26,898

3,301

29,640

3,455

30,061

5,664

Philippines 15,030

1,779

17,241

2,084

21,193

2,732

Indonesia 11,680

1,448

14,545

1,217

11,452

1,360

Sri Lanka 8,660

424

7,977

312

6,398

220

Bangladesh 706

124

780

5,517

864

Cambodia 97

532

108

North Korea 240

123

130

Mongolia 17

147

Africa

24,450

1,838

28,615

2,078

25,074

1,979

Tunisia 12,597

667

14,162

705

10,437

727

Morocco 4,071

432

4,845

334

4,404

212

South Africa 4,123

627

5,573

878

6,420

918

Madagascar 1,995

2,452

1,851

Kenya 999

1,108

1,028

Mauritius 229

139

509

Egypt 150

205

Nigeria 0

138

Cameroon 47

Latin

America 18,294

1,179

18,895

1,540

19,956

1,928

Brazil 2,948

437

4,427

736

4,475

874

Argentina 8,977

214

6,750

272

6,447

304

Chile 119

Colombia 671

981

898

146

Mexico 2,245

161

3,922

257

5,506

325

Venezuela 663

371

280

El Salvador 640

532

511

Costa Rica 263

139

326

Guatemala 237

359

199

Dom. Rep 324

145

Paraguay 658

846

858

Uruguay 177

Other*

31,196

2,429

6,164

1,153

12,686

3,011

Turkey 3,590

639

4,376

854

6,004

1,037

Croatia 0

665

1,441

119

Jordan 75

Source: Eurostat (2004) *Slovenia in 2001 as a developing country, but not 2002/2003.

EU15 IMPORTS FROM DEVELOPING COUNTRIES

130

THE 10 NEW EU COUNTRY IMPORTS BY SOURCE, 2003

Tonnes and € 1,000

2003

value € volume

TOTAL 303,107 58,735

Intra-10 new EU 15,880 2,247

of which:

Czech Republic 6,118 928

Poland 2,525 412

Slovenia 2,416 114

Slovakia 1,828 359

Estonia 1,188 98

Hungary 832 134

Latvia 591 127

Lithuania 477 74

Extra-10 new EU 287,227 56,488

Of which Other EU countries

Austria 29,909 1,768

Germany 28,753 4,562

Italy 23,933 2,763

France 16,203 2,573

UK 4,778 424

Finland 4,230 353

Spain 3,704 670

Sweden 3,238 389

Netherlands 2,023 250

Of which Other non-EU countries

USA 11,298 1,490

Taiwan 9,685 2,470

S Korea 3,202 172

Japan 2,500 57

Norway 1,598 89

Hong Kong 1,337 132

Russia 1,189 254

Romania 1,162 164

Developing countries 129,223 35,955

Of which top Asian:

China 106,152 33,072

Pakistan 9,388 1,274

India 2,457 389

Thailand 3,056 220

Malaysia 1,254 377

Philippines 955 101

Vietnam 544 96

Indonesia 530 53

Of which top African:

South Africa 140 3

Morocco 72 2

Tunisia 46 2

Of which top Latin American:

Mexico 292 9

Brazil 128 15

Argentina 24 2

Other

Turkey 568 106

Source: Eurostat (2004)

131

EU15 IMPORTS OF SELECTED PRODUCT GROUPS BY SOURCE, 2001-2003

Tonnes and € 1,000

These tables list only the most important 3 suppliers and focus on imports from developing

countries.

FITNESS / GYM

2001 2002 2003

value € volume value € volume value € volume

Total 849,421

244,682

877,233

269,280

904,932

323,185

Extra-EU 602,945

202,202

603,116

212,655

595,372

250,261

Dev. countries 230,552

117,062

263,363

136,865

316,395

180,254

Top 3 suppliers:

China 207,380

109,054

241,987

129,405

292,234

170,333

Taiwan 195,503

54,264

153,818

45,524

127,885

39,008

USA 131,974

14,995

140,157

15,551

106,944

15,926

Dev. countries:

Malaysia 10,460

4,460

8,535

3,967

8,301

4,287

Thailand 3,641

1,069

2,834

631

2,905

744

Pakistan 3,590

874

4,386

1,253

4,833

1,445

India 2,095

692

2,257

869

2,514

1,077

Turkey 1,722

384

1,512

412

1,726

448

South Africa 304

242

104

Morocco 314

280

204

147

165

Mexico 155

881

715

Sri Lanka 48

Argentina 50

104

409

Indonesia 56

156

Philippines 9

Vietnam 55

1,293

429

Brazil 11

GOLF

2001 2002 2003

value € volume value € volume value € volume

Total 498,424

20,922

597,949

34,990

567,123

35,446

Extra-EU 364,563

16,433

416,121

30,156

383,806

30,591

Dev. countries 69,739

4,752

86,783

6,607

90,934

7,586

Top 3 suppliers:

USA 244,819

7,944

270,160

19,175

232,667

19,236

United Kingdom 84,924

2,395

108,703

2,540

92,980

2,367

China 60,397

3,980

77,036

5,555

81,918

6,630

Dev. countries:

Thailand 6,245

433

3,890

326

3,249

227

India 1,373

187

2,318

365

2,325

442

Malaysia 614

2,041

213

1,644

140

Vietnam 248

Philippines 143

Indonesia 99

131

Mexico 91

175

340

Pakistan 90 9

955

116

797 68

South Africa 48

107

Mauritius 0

278

Myanmar 41

Colombia 24

Sri Lanka 122

Egypt 81

Source: Eurostat (2004)

132

SKATES

2001 2002 2003

value € volume value € volume value € volume

Total 315,322

33,490

248,758

27,765

276,667

37,216

Extra-EU 231,527

27,970

169,708

21,550

193,120

26,884

Dev. countries 181,112

22,103

134,383

17,856

156,513

23,832

Top 3 suppliers:

China 158,410

19,877

124,274

16,850

135,659

21,384

Italy 35,473

2,432

25,773

1,713

31,615

2,264

Thailand 23,295

1,989

8,462

817

18,659

2,083

Dev. countries:

Malaysia 882

181

281

272

Vietnam 7

Indonesia 0

348

Tunisia 97

155

Mexico 97

Pakistan 27

India 42

556

144

Philippines 15

Cambodia 93

376

BALLS

2001 2002 2003

value € volume value € volume value € volume

Total 287,667

40,399

347,251

45,964

372,914

53,861

Extra-EU 188,510

27,952

231,744

34,212

235,469

40,756

Dev. countries 167,808

25,586

211,238

31,784

217,601

38,458

Top 3 suppliers:

Pakistan 69,856

7,931

89,102

10,739

83,442

11,290

China 48,948

11,136

62,735

12,914

75,383

18,094

The Netherlands 27,631

2,885

31,621

2,595

52,927

3,526

Dev. countries:

Thailand 15,542

1,911

17,501

2,000

16,821

2,135

India 14,996

1,995

18,552

2,720

15,181

2,635

Philippines 10,535

1,561

12,205

1,945

16,216

2,581

Indonesia 3,111

405

4,589

610

4,655

761

Vietnam 1,022

362

1,485

465

2,084

665

Morocco 2,389

2,991

2,650

Malaysia 449

533

113

203

Mexico 327

370

321

Guatemala 145

243

154

Brazil 0

0 187

Colombia 27

169

Argentina 36

Turkey 81

Source: Eurostat (2004)

133

WATERSPORTS

2001 2002 2003

value € volume value € volume value € volume

Total 292,045

23,453

310,563

31,165

298,661

29,631

Extra-EU 152,663

13,923

149,593

16,360

139,889

17,772

Dev. countries 92,376

10,300

94,453

12,793

91,391

13,991

Top 3 suppliers:

China 55,410

8,772

59,111

11,081

57,189

12,136

Italy 40,532

3,041

43,196

2,948

42,675

3,378

France 29,013

1,491

37,784

6,186

37,879

3,235

Dev. countries:

Thailand 23,753

557

21,673

534

19,759

489

Sri Lanka 6,201

206

5,750

195

4,976

167

South Africa 1,562

280

3,055

550

3,240

595

Malaysia 925

110

1,160

130

987

136

Vietnam 733

539

891

106

Venezuela 654

363

266

Tunisia 618

866

1,482

121

Turkey 375

437

652

105

Costa Rica 244

132

309

Mexico 93

332

766

Pakistan 85

101

116

India 40

Philippines 18

Indonesia 0

318

256

Brazil 95

116

153

RACKETS

2001 2002 2003

value € volume value € volume value € volume

Total 196,618

9,657

192,497

9,725

167,487

11,066

Extra-EU 129,173

7,434

127,878

7,836

105,971

8,854

Dev. countries 81,935

5,967

84,084

6,619

79,879

8,075

Top 3 suppliers:

China 78,341

5,828

81,408

6,411

77,089

7,895

Czech Republic 19,793

486

20,003

470

16,066

395

Austria 15,728

239

13,925

161

8,646

232

Dev. countries:

Argentina 2,028

644

572

Mexico 0

189

Pakistan 728

1,495

1,410

Vietnam 259

Thailand 181

212

160

Malaysia 139

142

111

Indonesia 0

112

India 46

South Africa 29

Morocco 0

Source: Eurostat (2004)

134

SPORTS GLOVES

2001 2002 2003

value € volume value € volume value € volume

Total 52,625

1,820

56,817

2,107

52,549

2,144

Extra-EU 38,041

1,459

41,045

1,580

36,934

1,780

Dev. countries 34,443

1,376

37,697

1,510

34,206

1,713

Top 3 suppliers:

Pakistan 14,309

798

14,140

834

13,500

926

China 8,981

286

9,877

288

11,088

453

Indonesia 4,749

6,683

113

3,441

Dev. countries:

India 2,252

140

2,692

181

2,292

163

Thailand 1,439

1,048

1,064

Vietnam 1,430

1,810

1,889

Sri Lanka 602

872

529

Philippines 320

390

225

Morocco 252

Turkey 28

Malaysia 43

South Africa 2

Panama 0

Mauritius 14

Argentina 4

Mexico 12

SADDLERY

2001 2002 2003

value € volume value € volume value € volume

Total 219,936

20,982

236,563

19,142

229,040

21,828

Extra-EU 146,377

12,741

150,351

13,675

156,252

16,558

Dev. countries 87,805

9,211

94,886

10,118

105,084

13,117

Top 3 suppliers:

India 37,406

4,236

40,348

4,559

43,109

5,387

China 29,165

3,938

31,924

4,399

38,870

6,370

Germany 23,433

1,652

23,919

1,810

24,586

1,603

Dev. countries:

Argentina 6,313

143

5,431

147

4,954

161

Vietnam 8,518

493

10,144

548

8,900

561

Tunisia 1,385

1,401

2,924

197

Mexico 949

779

477

Pakistan 971

104

1,117

138

1,251

149

Morocco 722

912

1,027

Paraguay 653

846

858

Thailand 614

527

524

South Africa 475

705

989

Philippines 161

101

Turkey 96

318

405

Malaysia 26

145

Brazil 43

Source: Eurostat (2004)

135

TEAM/FIELD SPORTS

2001 2002 2003

value € volume value € volume value € volume

Total 777,762

168,793

798,117

164,077

868,240

197,256

Extra-EU 432,606

98,177

428,662

100,423

461,941

126,509

Dev. countries 219,910

60,904

233,418

67,599

244,601

83,432

Top 3 suppliers:

China 186,040

55,901

198,557

62,524

209,348

75,914

USA 90,966

9,505

81,317

6,902

76,015

7,768

France 65,157

14,788

63,334

13,756

65,056

13,665

Dev. countries:

Pakistan 7,810

878

10,138

1,440

10,237

1,817

India 6,078

836

6,934

1,010

7,213

1,303

Tunisia 5,821

227

5,093

177

285

Thailand 2,686

676

2,067

610

3,083

976

Malaysia 1,868

350

3,191

581

3,352

720

Vietnam 1,764

643

1,190

317

2,275

1,555

Indonesia 1,745

717

721

237

636

210

South Africa 1,215

194

851

172

1,171

194

Mexico 403

939

2,557

Argentina 390

337

288

Sri Lanka 454

455

392

Philippines 561

889

957

Turkey 564

116

956

148

1,144

200

Morocco 251

416

316

Chile 99

Brazil 0

211

CAMPING GOODS

2001 2002 2003

value € volume value € volume value € volume

Total 477,139

97,125

496,652

103,671

509,224

130,159

Extra-EU 357,158

80,132

358,433

84,281

351,597

99,163

Dev. countries 298,365

72,435

291,137

75,874

289,780

92,385

Top 3 suppliers:

China 258,737

67,390

259,924

71,532

259,413

86,935

Germany 22,969

2,719

25,771

2,858

32,194

12,596

Belgium 21,953

3,730

30,250

3,421

33,503

4,437

Dev. countries:

Vietnam 12,461

1,642

13,578

1,893

12,021

2,199

Brazil 2,654

415

3,948

703

3,842

809

Pakistan 1,424

280

1,251

304

641

226

Tunisia 1,248

4,241

178

808

Sri Lanka 1,228

188

586

156

India 1,111

170

1,064

189

1,332

262

Thailand 664

816

157

419

Bangladesh 556

521

4,509

828

Colombia 538

802

732

107

El Salvador 518

527

506

Malaysia 295

535

324

Indonesia 0

1,281

161

1,366

186

Philippines 489

Turkey 0

899

155

1,503

185

Source: Eurostat (2004)

136

FISHING TACKLE

2001

2002 2003

value € volume value € volume value € volume

Total 362,259

19,729

399,626

22,811

391,684

26,353

Extra-EU 239,998

13,133

263,182

15,951

260,926

19,830

Dev. countries 127,109

9,264

161,134

12,301

169,710

16,030

Top 3 suppliers:

China 100,975

8,053

128,288

10,789

140,379

14,549

South Korea 37,157

976

27,939

826

20,431

699

Italy 21,149

1,326

22,479

1,221

19,993

996

Dev. countries:

Malaysia 7,583

287

10,767

361

8,860

273

India 5,348

479

5,966

594

5,505

607

Philippines 2,664

3,590

3,572

Thailand 2,580

3,977

3,919

Tunisia 2,660

184

2,144

175

1,324

142

Madagascar 1,925

2,448

1,851

Kenya 998

1,068

1,015

Vietnam 436

742

634

Indonesia 0

326

273

South Africa 253

368

399

North Korea 166

Sri Lanka 117

297

263

Bangladesh 56

Turkey 0

THE 10 NEW EU COUNTRIES

2003 2003

value € % dev co volume

% dev co

Total

303,107

43 58,735

Extra-EU25

165,796

78 42,194

Fitness/gym

49,558

48 19,781

Main supplier China

22,908

14,260

Golf

3,649

27 210

Main supplier USA

1,203

Skates

17,381

63 2,442

Main supplier China

10,090

1,800

Balls

22,019

70 3,920

Main supplier Pakistan

6,962

1,030

Watersports

14,321

37 2,003

Main supplier China

4,212

1,159

Rackets

8,287

82 819

Main supplier China

6,735

751

Sports Gloves

3,330

159

Main supplier Pakistan

1,407

Saddlery

6,859

28 514

Main supplier Germany

2,319

138

Team/field Sports

51,996

33 12,378

Main supplier China

14,784

4,810

Camping Goods

29,331

75 7,607

Main supplier China

21,362

6,573

Fishing Tackle

31,882

59 2,470

Main supplier China

15,017

1,575

Source: Eurostat (2004)

137

EUROPEAN UNION - EXPORTS

Exports of sports goods by EU country, 2001-2003

Tonnes and € 1,000

2001 2002 2003

value € volume value € volume value € volume

EU15 3,840,624

349,743

4,042,395

383,366

4,117,586

427,326

France 740,624

58,225 719,247

55,578 707,560

57,712

Italy 617,276

61,144 614,328

63,092 589,991

61,691

Austria 531,786

25,055 513,310

25,718 520,943

26,983

Germany 504,940

57,832 559,941

63,336 586,856

75,387

United Kingdom 431,077

24,246 440,699

22,831 393,841

20,600

Belgium/Lux. 234,560

40,301 285,224

56,832 352,961

74,261

Netherlands 226,763

24,765 272,439

27,656 343,573

39,361

Spain 157,677

21,733 197,307

26,427 192,758

28,401

Sweden 113,060

11,199 145,712

13,770 140,515

13,912

Denmark 99,246

7,771 117,057

11,028 131,964

12,947

Finland 98,737

9,852 93,051

9,597 81,396

8,853

Ireland 69,282

3,944 63,658

3,804 49,803

3,080

Portugal 12,255

3,332 18,127

3,446 22,744

3,796

Greece 3,341

344 2,295

253 2,679

341

The 10 new EU

Countries

217,436

29,376

Czech Republic

101,090

13,324

Slovenia

39,971

2,917

Poland

38,402

7,071

Exports of sports goods by product group, 2001-2003

Tonnes and € 1,000

2001 2002 2003

value € volume value € volume value € volume

EU15

3,840,624

349,743

4,042,395

383,366

4,117,586

427,326

Extra-EU15

1,604,296

119,911

1,580,066

128,085

1,520,544

129,832

Of which

Snowsports

985,334

43,233

943,326

40,930

950,006

41,754

Fitness

418,414

70,244

496,713

88,594

547,366

113,373

Watersports

299,702

15,828

321,023

20,797

315,175

21,464

Golf

281,350

8,746

304,983

6,939

302,859

8,535

Skates

191,999

13,961

157,812

12,679

173,278

14,634

Saddlery

179,230

9,027

199,056

8,734

175,439

9,246

Balls

158,282

21,009

180,823

24,267

205,804

24,656

Rackets

129,596

3,582

139,674

3,509

117,556

3,354

Table tennis

43,667

14,938

53,495

19,346

55,421

21,958

Gloves

20,535

373

25,646

626

25,741

566

Team/field sports

614,712

110,377

668,610

116,283

713,495

123,080

Camping

224,093

26,312

247,906

28,776

247,904

32,135

Fishing

293,710

12,113

303,328

11,886

287,543

12,572

Source: Eurostat (2004)

138

APPENDIX 3 USEFUL ADDRESSES

3.1 Standards organisations

INTERNATIONAL

International Organisation for Standardisation (ISO)

Email: mailto:[email protected]

Internet: http://www.iso.org

EUROPEAN UNION

European Committee for Normalization (CEN)

Email: mailto:[email protected]

Internet: http://www.cenorm.be

GERMANY

Deutsches Institut für Normung (DIN)

Email: mailto:[email protected]

Internet: http://www2.din.de

FRANCE

Association Française de Normalisation (AFNOR)

Email: mailto:norminfo@afnor.fr

Internet: http://www.afnor.fr

UNITED KINGDOM

British Standards Institution (BSI)

Email: mailto:[email protected]

Internet: http://www.bsi-global.com

SPAIN

Associacion Española de Normalizacion y Certificación (AENOR)

Email: mailto:[email protected]

Internet: http://www.aenor.es

ITALY

Ente Nazionale Italiano di Unificazione (UNI)

Email: mailto:[email protected]

Internet: http://www.uni.com

THE NETHERLANDS

Netherlands Institute for Standardisation

(Nederlands Normalisatie Instituut (NEN))

Email: mailto:info@nen.nl

Internet: http://www2.nen.nl

SWEDEN

Swedish Standards Institute (SIS)

Email: mailto:[email protected]

Internet: http://www.sis.se

139

3.2 Sources of price information

World Federation of the Sporting Goods Industry (SGI)

Email: mailto:info@wfsgi.com

Internet: http://www.wfsgi.org

EFTTA

(European Fishing Tackle Trade Association)

Email: mailto:info@eftta.com

Internet: http://www.eftta.com

Sport-Scheck

Email: mailto:[email protected]

Internet: http://www.sportscheck.com

JJB Sports

Email: mailto:[email protected]

Internet: http://www.jjb.co.uk

Perry Sport

Email: mailto:inf[email protected]

Internet: http://www.perrysport.nl

140

3.3 Trade Associations

INTERNATIONAL

World Federation of the Sporting Goods Industry (SGI)

Email: mailto:info@wfsgi.org

Internet: http://www.wfsgi.org

or http://www.wsforum.org

FESI

(Federation of the European Sporting Goods Industry)

Email: mailto:info@fesi-sport.org

Internet: http://www.fesi-sport.org

FEDAS

(Association of specialist European sports retailers)

Email: mailto:[email protected]

Internet: http://www.fedas.com

SGMA

(Sporting Goods Manufacturers Association)

Email: mailto:[email protected]

Internet: http://www.sgma.com

GAISF

(General Association of International Sports Federations)

Email: mailto:info@agfisonline.com

Internet: http://www.agfisonline.com

GERMANY

BSI

(German Association of Sports Goods Industry)

Email: mailto:info@bsi-ev.de

Internet: http://www.bsi-ev.de

VDS

(Union of German Sporting Goods Retailers)

Email: mailto:vds-wiesbaden@T-online.de

Internet: http://www.wds-sportfachhandel.de

http://www.sportpress.de/vds.htm

FRANCE

FIFAS

(French Sports and Leisure Federation)

Email: mailto:catherine.trachtenberg@fifas.com

Internet: http://www.fifas.com

FPS

(National Federation of Sporting & Leisure Goods Retailers)

141

Email: mailto:fps@filieresport.com

Internet: http://www.filieresport.com

UNITED KINGDOM

TSIF

(The Sports Industries Federation)

Email: mailto:[email protected]

Internet: http://sports-life.com

or http://www.sports-data.com

Snowsport Industries of GB

Email: mailto:info@snowlife.org.uk

Internet: http://www.snowlife.org.uk

SPAIN

AFYDAD

(Spanish Association of Sports Goods Industry)

Email: mailto:[email protected]

Internet: http://www.afydad.com

ITALY

FEDERADAS

(National Federation of Sporting Goods Retailers)

Address: Via Desiderio 3/9, I – 20131, Milan

Telephone: + 39 (0) 0270 608152

Fax: + 39 (0) 0270 639614

ASSOSPORT

(Italian Association of Sports Goods Industry)

Email: mailto:[email protected]

Internet: http://www.assosport.it

THE NETHERLANDS

FGHS

(Association of manufacturers and wholesalers of Sports Goods)

Email: mailto:[email protected]

Internet: http://www.fghs.nl

MITEX SPORT

(Federation of Dutch Sports Goods Retailers)

Email: mailto:[email protected]

Internet: http://www.mitex.nl

SWEDEN

SPOFA

(Association of Swedish Suppliers of Sports Goods)

Email: mailto:[email protected]

Internet: http://www.spofa.se

142

3.4 Trade fair organisers

ISPO (International Trade Fair for Sports Equipment and Fashion)

Frequency: Biennial, Munich

Email: mailto:[email protected]

Internet: http://www.ispo.com

MICAM (National Fair for Sports Equipment and Fashion)

Frequency: Annual, Milan

Email: mailto:[email protected]

Internet: http://www.micamonline.com

Go Outdoors

Frequency: Annual, UK

Email: mailto:[email protected]

Internet: http://www.go-outdoors.co.uk

SOLTEX (Snow, Board, Outdoor, Fashion & Leisure)

Frequency: Annual, UK

Email: mailto:soltex@raremanagement.co.uk

Internet: http://www.soltex.co.uk

SIG ProWinter-Sports

Frequency: Annual, Grenoble, France

Email: mailto:[email protected]

Internet: http://www.sig-grenoble.com

SPORT BUSINESS FAIR (National Fair for Sports Equipment and Fashion)

Frequency: Biennial

Email: [email protected]

Internet: www.sportsbusinesscenter.nl

EUROPEAN OUTDOOR (International Trade Fair for outdoor equipment,

clothing and footwear)

Frequency: Annual, Friedrichshafen, Germany

Email: mailto:[email protected]

Internet: http://www.messe-fn.de

GOLF EUROPE (International Trade Fair for golf equipment, clothing and footwear)

Frequency: Annual, Munich

Email: mailto:[email protected]

Internet: http://www.ispo.com

EQUITANA (Equestrian Sports World Fair)

Frequency: Biannual, Essen, Germany

Email: mailto:info@equitana.de

Internet: http://www.equitana.de

143

3.5 Trade press

INTERNATIONAL

Sporting Goods Intelligence

Email: mailto:[email protected]

Internet: http://www.sgieurope.com

GERMANY

SAZ

Email: mailto:[email protected]

Internet: http://www.saz.de

Sport und Mode

Email: mailto:[email protected]

Internet: http://www.spomo.de

FRANCE

Sport Premiere Magazine

Email: mailto:[email protected]

Internet: http://www.sportpremiere.com

Sporteco

Email: mailto:[email protected]

Internet: http://www.sporteco.com

UNITED KINGDOM

SGB UK – (also SGB Golf; SGB Outdoor)

Email: mailto:[email protected]

Internet: http://www.datateam.co.uk

Sports Business

Email: mailto:[email protected]

Internet: http://www.sportbusiness.com

SPAIN

CMD

Email: mailto:[email protected]

Internet: http://www.gescode.es

Diffusion Sport

Email: mailto:[email protected]

Internet: http://www.diffusionsport.com

Tradesport

Email: mailto:[email protected]

Internet: http://www.tradesport.com

144

ITALY

Sportivi

Email: mailto:[email protected]

Internet: http://www.sportive.it

Moda Sport

Email: mailto:[email protected]

Internet: http://www.modasportenna.com

NETHERLANDS

Sport Partner/ Tendens

Email: mailto:[email protected]

Internet: http://www.maruba.nl

International Sport Cult

Email: mailto:[email protected]

Internet: http://www.sportcult.nl

EUROPE-WIDE

Europe Sports News

Email: mailto:[email protected]

Internet: http://www.europesportnews.com

145

3.6 Other useful addresses

INTERNATIONAL

United Nations International Labour Organisation (ILO)

Email: mailto:[email protected]

Internet: http://www.ilo.org

EUROPEAN UNION

International Chamber of Commerce

Email: mailto:webmast[email protected]

Internet: http://www.iccwbo.org

European Commission, Sport

Email: mailto:[email protected]

Internet: http://www.europa.eu.int/comm/sport

SGB Guide to the UK Trade (formerly Harpers Sports and Leisure)

(published by Miller Freeman)

Email: mailto:[email protected]

Internet: http://www.datateam.co.uk

Eurostat, Statistical Bureau of the European Union

Email: mailto:[email protected]

Internet: http://epp.eurostat.cec.eu.int

Mintel/Corporate Intelligence

Email: mailto:[email protected]

Internet: http://www.mintel.co.uk

France Sports

(Directory of French trade)

Email:

Internet: http://afssaps-prd.afssaps.fr/html/has/cepp/index.htm

GTZ

(German Agency for Technical Cooperation)

Email: mailto:[email protected]

Internet: http://www.gtz.de

146

THE NETHERLANDS

CBI

Centre for the Promotion of Imports from Developing Countries

Email: mailto:[email protected]

Internet: http://www.cbi.nl

Belasting Dienst Douane (Customs)

Dept. External and Internal Communication

Email:

Internet: http://www.douane.nl

Benelux Octrooibureau

(Design and brand registration office for The Netherlands, Benelux and the EU)

Email: mailto:[email protected]

Internet: http://www.octrooibureau.nl

CBI / AccessGuide

c/o CBI, Centre for the Promotion of Imports from Developing Countries

Email: mailto:[email protected]

Internet: http://www.cbi.nl/accessguide

147

APPENDIX 4 LIST OF DEVELOPING COUNTRIES

Please note that the list of developing countries from the OECD (Organisation for Economic

Co-operation and Development), as applied in this market survey, may include countries

that are not immediately being considered as developing countries (e.g. China).

Afghanistan Georgia Pakistan

Albania Ghana Palau Islands

Algeria Grenada Palestinian Admin. Areas

Angola Guatemala Panama

Anguilla Guinea Papua New Guinea

Antigua and Barbuda Guinea-Bissau Paraguay

Argentina Guyana Peru

Armenia Haiti Philippines

Azerbaijan Honduras Rwanda

Bahrain India Samoa

Bangladesh Indonesia São Tomé & Principe

Barbados Iran Saudi Arabia

Belize Iraq Senegal

Benin Jamaica Serbia and Montenegro

Bhutan Jordan Seychelles

Bolivia Kazakhstan Sierra Leone

Bosnia & Herzegovina Kenya Solomon Islands

Botswana Kiribati Somalia

Brazil Korea, rep of South Africa

Burkina Faso Kyrghyz Rep. Sri Lanka

Burundi Laos St. Helena

Cambodia Lebanon St. Kitts-Nevis

Cameroon Lesotho St. Lucia

Cape Verde Liberia St. Vincent and Grenadines

Central African rep. Macedonia Sudan

Chad Madagascar Surinam

Chile Malawi Swaziland

China Malaysia Syria

Colombia Maldives Tajikistan

Comoros Mali Tanzania

Congo Dem. Rep. Marshall Islands Thailand

Congo Rep. Mauritania Togo

Cook Islands Mauritius Tokelau

Costa Rica Mayotte Tonga

Côte d'Ivoire Mexico Trinidad & Tobago

Croatia Micronesia, Fed. States Tunisia

Cuba Moldova Turkey

Djibouti Mongolia Turkmenistan

Dominica Montserrat Turks & Caicos Islands

Dominican republic Morocco Tuvalu

Ecuador Mozambique Uganda

East Timor Myanmar Uruguay

Egypt Namibia Uzbekistan

El Salvador Nauru Vanuatu

Equatorial Guinea Nepal Venezuela

Eritrea Nicaragua Vietnam

Ethiopia Niger Wallis & Futuna

Fiji Nigeria Yemen

Gabon Niue Zambia

Gambia Oman Zimbabwe

January 2003

148

APPENDIX 5 USEFUL INTERNET SITES

Sports-data – http://www.sports-data.com

This site has been set up by the TSIF (UK Sports Industries Federation) and provides

information on the UK and European sports goods industry through their latest published

market reports. It also gives possibilities for contacting other suppliers and this site has a

linkage to other useful sports databases.

SGMA – http://www.sportlink.com

This site of the Sporting Goods Manufacturers Association provides information on the USA

and the international sports industry and has a news service with summaries of their latest

published market reports. It also gives a good selection of links to trade associations,

publishers and other organisations.

SGI – http://www.wfsgi.org

This site of the World Federation of the Sporting Goods Industry, provides information on the

world sports industry and has a news service with summaries of their latest published market

reports. It also gives a good selection of links to trade associations, publishers

and other organisations involved in the sports industry.

World Sports Forum – http://www.wsforum.org

Another site from the World Federation of the Sporting Goods Industry, which gives an

overview of recent meetings on economical and political issues on sports in the EU and the

world. The main purpose of the World Sports Forum is to serve as a neutral platform for

discussion, debate and action on the key issues on the global agenda of sports. Detailed

information on the Code of Conduct can be also found on this site.

Sites of some European e-tailers:

http://www.sportsequip.co.uk

Based in UK

http://www.sweatband.com

http://www.sportswarehouse.co.uk

http://www.sport-e.com

http://www.gymworld.co.uk

http://www.tackandski.co.uk

http://www.sporthouse.de

Based in Germany

http://www.sportus.se

Based in Sweden

Recommended sites for information of the selected countries are:

http://www.sportpress.de

Information about the German sports industry

http://www.cnpc.fr

Information about the French sports industry

http://www.sportbusinesscenter.nl

Information about the Dutch sports industry

http://www.sportsbusiness.com

Information about the UK sports industry