Post on 27-Apr-2015
SPORTS GOODS
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CONTENTS
S.NO. CONTENTS PAGE NO.
1 Introduction to SMEs 3
2 Introduction to sports goods industry 4-6
3 Key markets and export destinations 7-8
4 Key Players 9-10
5 Major export items in sports goods 11
6 Major export destinations 12
7 Industrial statistics for sports goods 13-14
8 Methodology to be adopted for analysis and selection of markets for sports goods industry
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9 Conclusion 16
10 Bibliography 17
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INTRODUCTION TO SMEs
SMEs have been playing a pivotal role in country’s overall economic growth, and have achieved
steady progress over the last couple of years. From the perspective of industrial development in
India, and hence the growth of the overall economy, SMEs have to play a prominent role, given
that their labour intensiveness generates employment. The SME segment also plays a major role
in developing countries such as India in an effort to alleviate poverty and propel sustainable
growth. They also lead to an equitable distribution of income due to the nature of business.
Moreover, SMEs in countries such as India help in efficient allocation of resources by
implementing labour intensive production processes, given the abundant supply of labour in
these countries, wherein capital is scarce.
The enactment of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
was a landmark initiative taken by the Government of India to enable the SMEs’ competitive
strength, address the issues and challenges and reap the benefits of the global market. SME
policy initiatives at the national and state level are aimed at strengthening the role of SMEs at
the base as well as at the higher level. The Tamil Nadu Government formulating an exclusive
policy for micro, small and medium enterprises sector to encourage agro-based industries is a
recent example of the changes taking place at the ground level. The policy offers a range of
incentives and support for infrastructure development, subsidies for investment in industrially
backward areas, capital investment and technology development aiming to sustain over 10%
growth of the MSME segment in the food and agro sector.
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INTRODUCTIONS TO SPORTS GOODS INDUSTRY
The sports goods industry of India has its roots in Sialkot, Pakistan. When India was partitioned
in 1947, many of Sialkot's skilled Hindu craftsmen migrated across the border into Punjab,
settling in Jalandhar, where the Indian sports goods industry is now based. The Indian sports
goods industry has expanded to include the areas of Meerut, (Uttar Pradesh) and Gurgaon,
(Haryana). Most of India's sports goods are exported to the United Kingdom, The United States
of America, Germany, France and Australia. The industry is mainly concentrated in Jalandhar
and Meerut.
The sports goods industry in India has witnessed a phenomenal growth over the past five decades
and now occupies a place of prominence in the Indian economy in view of its massive potential
for employment, growth and export. There has been an increasing emphasis on its planned
development, aimed at optimal utilization of resources for maximizing the returns, particularly
from exports.
The Indian sports goods industry manufactures 318 items. However, major items that are
exported are inflatable balls, hockey sticks and balls, cricket bats and balls, boxing equipment,
fishing equipment, indoor games like carom and chess boards and different kinds of protective
equipment. The Indian sports goods industry is a highly labour intensive industry which provides
employment to the weaker sections of society and also employs a large number of women.
The global market share of India in this segment is barely 1% but 60% of the sports goods manufactured in India are exported. The reason for such less market share is that Indian sporting goods industry is concentrated mainly in the cottage and small-scale sector.
Indian sports goods industry has high potential in terms of quality, quantity and focus. The only thing that is missing is international orientation. The fact is that Indian manufacturers have never compromised on quality and that is the reason that most of the produce is exported. Point to be noticed is the maximum exported product is to the OEM suppliers.
Sports manufacturing companies have numerous ranges of products which they can produce. Some of these include tennis rackets, rugby balls, soccer balls, cricket equipment, bowling balls and many others.
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Sporting Goods industry in India, which is now one hundred and sixteen years old is spread over
the length and breadth of the country. There are major manufacturing concentrations in and
around Jalandhar, Delhi, Agra, Moradabad, Mumbai, Kolkata and Chennai. The Indian
sports goods industry has expanded to include the areas of Meerut, (Uttar Pradesh) and
Gurgaon (Haryana).
India's Sports Goods Industry, which is centered largely in Meerut and Jalandhar, exports
sporting goods and equipment worth more than Rs 200 crores. Major export items include
football and cricket gear, and athletic equipment. Both these cities together claim around 75% to
80 % of the total domestic production with more than 3000 manufacturing units, including
around 130 exporters. The sports goods industry of Jalandhar is widely known for the production
of quality sports goods in Asia.
Most of India's sports goods are exported to the United Kingdom, The United States of America,
Germany, France and Australia. There are around 400 registered sports goods exporters with the
Sports Goods Export Promotion Council (SGEPC) alone.
The Indian Sports Goods Industry
The sports goods industry in India is nearly a century old and has flourished due to the
skills of its workforce
A robust growth rate of 14.7 per cent in exports indicates a sizeable opportunity for India
in this sector
Being labour-intensive in nature, the Indian sports goods industry provides employment
to more than 5,00,000 people
The sports and leisure goods retail market in India was valued at US$ 17.7 billion for
2007-2008. The market grew at the rate of 18 per cent over 2006-2007 in value terms,
primarily due to outlet expansions by industry players
The nucleus of the industry in India is in and around the states of Punjab and Uttar
Pradesh; Jalandhar (Punjab) and Meerut (Uttar Pradesh) together account for nearly
81.8 per cent of total domestic production with more than 3,000 manufacturing units and
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130 exporters present in these two towns
About 60 per cent of the sports goods manufactured in Jalandhar are different kinds of
inflatable balls and provide direct employment to more than thousands of workers.
The industry also has a presence in Mumbai, Kolkata and Chennai, albeit at a lower scale
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KEY MARKETS & EXPORT DESTINATIONS
Industry exports were valued at approximately US$ 129 million1 in 2007-2008, growing
from US$ 74.5 million in 2003-2004 at a rate of 14.7 per cent.
India’s share of the global sports goods exports market is expected to grow manifold,
with the country establishing the credibility of its goods in the global market
In recent years, India has emerged as the leading international sourcing destination for
inflatable balls and other sports goods for international brands such as Mitre, Lotto,
Umbro and Wilson
Today, Indian sports goods manufacturers are exporting products under their own brand
names, in addition to being original equipment manufacturers (OEM) suppliers for
international sports brands.
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For the period 2003-2004 to 2007-2008, general exercise equipment emerged the
category leader in the export products segment, witnessing the highest growth rate of
27.3 per cent. Hammocks have emerged as one of the leading export products, growing at
a rate of 24.1, with India home to the leading hammock manufacturers in Asia. Inflatable
balls’ exports grew at a rate of 10.6 per cent
The EU, America and Australia are some of the key global export markets for Indian
sports goods. The UK is India’s largest export market - India exported US$ 38.4
million worth of sports and toy products to the UK between 2006 and 2008, exhibiting a
growth of 15.3 per cent
In recent years, Indian products have been exported for global sports events such as the
football World Cup 2002, where India-manufactured bladders were used. Athletic
equipment made in India was also used at the Atlanta Olympics (1996) and Beijing
Olympics (2008).
KEY PLAYERS
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International and domestic sports brands have become immensely popular among the youth in
India as a result of an increasing awareness about fitness and healthier lifestyles. Some of the key
global players are:
Reebok India Pvt. Ltd. (520 outlets)1
Adidas India Marketing Pvt. Ltd. (220 outlets)
Nike India (150 outlets)
Royal Sporting House (60 outlets)
Planet Retail Holdings Pvt. Ltd. (36 outlets)
Some of the key domestic players are:
Cosco India Ltd.
Enkay (India) Rubber Co. Pvt. Ltd.
Sanspareils Greenlands Pvt. Ltd.
BDM
Stag International
Nivia Sports
Advantage To India
The sports goods sector is a major contributor to the Indian economy in terms of employment
and enjoys a clear competitive edge.
Custom-made products
Indian products have the distinct advantage of being tailor-made to individual product
specifications, with hand-crafted goods such as cricket balls carving a niche in the global
market.
Strong workforce
Indian industry has a highly-skilled workforce for designing and producing high volumes
of sport goods.
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Competitive labour costs
India’s average labour cost for manufacturing is much lower than the rest of the world.
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MAJOR EXPORT ITEMS IN SPORTS GOODS
India is one of the largest exporters of inflatable balls, cricket bats, hockey sticks and balls,
boxing equipment, fishing equipment, Equipment for sports like indoor games like carom and
chess boards and different types of protective equipment. The total Indian domestic market for
various sports goods items is estimated to be around Rs170 Cr. of which cricket-related
equipment alone accounts for 70% of the total market.
The largest component of export is inflatable balls, which accounts for 50.6 % of total exports of
sports goods, followed by cricket bats (8.4 %) and gymnasium equipment (7.3 %).
India also imports sports goods, particularly gym and athletic equipment. In 1997-98, India's
imports were about Rs 30 Cr. The Indian sports goods industry manufactures 318 items.
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MAJOR EXPORT DESTINATIONS
The countries where Indian sports goods are imported are:
United Kingdom Australia The United States of America Italy Germany South Africa France New Zealand Netherlands Several Asian countries
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INDUSTRIAL STATISTICS FOR SPORTS GOODS
Export Growth
Indian exports have almost doubled from Rs.109 crores in 1993-94 to Rs. 204 crores in 1997-98
with the compounded growth rate of about 11 % per annum.
Trade Figures (1997-98)
Indian domestic market: Rs170 crores
Imports: Rs 30 crores approx.
Exports: Rs 204 crores approx.
Component Share In Total Exports
Cricket-related equipment alone accounts for a major percentage of the total market.
Inflatable balls: 50.6 % approx
Cricket bats: 8.4 % approx
Gymnasium equipment: 7.3 %approx
Others: 32% approx
Region-Wise Share In Sports Goods Production
Geographically, Jalandhar and Meerut, together claim 75 to 80 % of the total domestic
production. They have with more than 3000 manufacturing units, including around 120
exporters.
Country-Wise Market Share
The approximate share of various major countries in the world sporting goods market is as
follows:
1. United States of America (USA): 30%
2. European Union (EU): 33%
3. Japan: 22%
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4. Canada: 3%
5. India: less than 1 %.
6. Rest of the world: 12%.
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METHODOLOGY TO BE ADOPTED FOR ANALYSIS & SELECTION OF
MARKETS FOR SPORTS GOODS INDUSTRY
Identify few thrust products within sports goods and fitness equipment for production and
export.
Identify major markets for these goods
Launch a series of sports goods missions to identified markets to identify partners, technology
transfers and buy back arrangements
Adopt a consortium approach for export promotion by involving international trading houses
Continuously disseminate information on the potential of these sectors to attract more players
in this field.
We can also follow this process in order to identify the markets for the sports goods:
Identify Potential Customers
Conducting Market Research
Choosing a Target Market
Compiling a Customer Profile
Resources
As we have analyzed that sports goods industry is flourishing at a very rapid pace and there are
many countries where the sports goods manufactured are being exported more than they are
imported in the country. Hence above are the steps that can be included for selecting and
analyzing the market for sports goods.
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CONCLUSION
Indian Sports Goods industry has proud antecedents, which date back to more than 100 years. It
is born out of India’s age-old nurtured and mastered skills in the areas of metal processing,
leather crafts, wood crafts and a host of other industries. The industry is spread all over the
country, with major manufacturing centers in and around Jalandhar, Meerut, Delhi, Mumbai,
Kolkota and Chennai.
Indian Sports Goods are well known around the world and have made a mark in the global sports
goods market. They have established their identity in many countries across the world as a
reliable supplier of quality sports goods. The exports have grown from Rs.3350 million in 2003-
04 to Rs.5064 million in 2007-08, showing a steady growth of over 10 per cent per annum. The
major markets are: UK, Australia, USA, France, Germany, South Africa, New Zealand, Italy,
Canada, etc.
India, which exports nearly 60% of its total domestic output to the sports loving people all over
the world, has matured into a globally competitive & creative entity. The contribution by the
Indian sports goods industry to the international sports goods market has been remarkable. The
major sports goods exported from India are: Inflatable balls, Cricket Bats, Protective Equipment
for Cricket, Hammocks, Boxing Equipment, General Exercise Equipment, Cricket and Hockey
Balls, Nets, Protective Equipment for Football, Bladders, Carrom Board and Chess, T.T.
Equipment, Fishing Equipment, Golf Balls, Hockey Sticks, etc.. Indian manufacturers are
exporting these products in their own brand names as well as O.E.M. suppliers to International
brands like Adidas, Dunlop, Fila, Gap, Nike, Rawlings, Reebok, Spalding, to name a few.
The fitness equipment industry in the country is having boom time with its market size reaching
Rs.10000 million. With the rise in disposable income and consumerism, people are becoming
increasingly health/fitness conscious and the demand for the affordable fitness products are
growing at a rapid rate. Consequently, the industry is showing significant growth potential.
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BIBLIOGRAPHY
Source: Internet
http://www.va-interactive.com/inbusiness/editorial/sales/ibt/target_market.html
http://www.sgfi.org/
http://www.sporting-goods-industry.com/manufacturing-region-india/jalandhar-spoting-goods-
manufacturing.html
http://www.sporting-goods-industry.com/industry-statistics/
http://www.sporting-goods-industry.com/sports-goods-industry/trade-trends.html
http://www.dnb.co.in/SME%20Awards/methodology.asp
http://www.sgmea.org/index.html
http://www.dsir.gov.in/reports/mitcon/chap2.pdf
http://www.indiatradefair.com/pro/details-of-fair.html
http://www.intermesh.net/sports-goods.html
http://www.sportsgoodsexhibitionindia.com/info_indiansports_industry.html
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