Sports Retailing

FIFA, IPL and Commonwealth Games are not exciting only because of the
adrenaline rush that they cause but also owing to the business opportunity
that can offer. With growing health and fitness awareness in developing
countries, the market for fitness-related sports, such as running, walking,
swimming and cycling has increased. The amount of money that is being
spent on sporting events shows a sharp rise.
 
One segment that has seen more growth than any other is retail. The
aspiration to connect more and more with national and international sports
events leads to increased spending on merchandises related to these
events.  Hence, sports retailing has become a lucrative business
opportunity.

 
The Concept

Sports Retailing is a niche segment of retail which refers to selling of sports

goods, equipment, apparel, shoes and accessories. Reebok is one of the
biggest players in the segment which sells products ranging from footballs to
casual wear, T shirts and footwear.
 
Apparel and footwear are not the only things that can be sold; bags,
sunglasses and other accessories have become very popular. Whether
standalone stores, multi brand outlets or online stores every format is able
to make money out of the boom in the segment.
 
Market Potential

A study by ICRIER says though there are no official figures of how large the
industry is but according to one estimate, the total size of the Indian retail
market was $372 billion in 2008, of which sports retail was around three
per cent. However, its share in organised retail was around 10 per cent. Now
that is a pretty big share!
 
Estimates of the sports goods/equipment manufacturing industry is
available from SGEPC, which shows that the industry has been growing at
an average annual rate of around 10-12 percent in the past five years. India
is among the largest sports goods manufacturers in Asia after countries like
China and Japan. And with the capacity of consumption of its domestic
market increasing the retail of these home made products is sure to rise.
 
With national and international events of large stature like the
Commonwealth Games and IPL being held in such close proximity, the
sports retail segment will grow even faster.  The passion for sports and
willingness to pay for it is also giving a push to the growing opportunity.
 
What are the items that can be retailed?

Sports goods are the first on the list. Rackets, balls, bats, sticks etc top the
list. Then comes the ancillary products. Jersey, back packs bands and other
accessories are next on the chart. Music and videos also sell like hot cakes
during the tournament season.
 
Factors one should take care of

When entering the sports retail segment one should keep in mind the nature
of the sports industry, which tends to be seasonal. During major
tournaments like World Cup and Asian Games the demand may increase
unbelievably and so can it fall during off seasons.
 
Also, a lot depends on the kind of sport. The demand for cricket and football
related merchandise can be really high whereas that for Kabbaddi and Golf
might be on the other extreme. 
 
How good is it for small players?

The opportunities for a small player in this segment are unlimited. A lot of
them have already benefitted from it. Recently held FIFA 2010 gave a major
push to sports retailing. Numerous online retailers partnered with bigger
brand s for retailing sports items. Infibeam, an online retailer based out of
India, a part of the Infinium Group ,partnered with Adidas to retail FIFA
merchandise.
 
It is one sector which is far from saturation.  A major reason for this is
involves the young population which has a significant purchasing power. No
wonder the opportunity it offers is immense. It depends on how creatively
you leverage it!