Sports Apparel Industry

Presented By: Anjali Rajkumar Submitted To: Dr. Nitin Merh

Akanksha Singh
Muskan Vishwakarma
Rahul Soni
 About Industry
In the sport and apparel industry, clothes, shoes, and
equipment for sports and fitness activities are designed,
made, and sold. Brands like Nike, Adidas, Under Armour,
and Puma, as well as stores like Dick's Sporting Goods and
Sports Direct, are some of the biggest names in the business.
The industry is very competitive, and companies are always
coming up with new ideas for design and technology to give
themselves an edge. The COVID-19 pandemic has had a big
effect on the industry, with many stores having to close for a
while and customers spending more on necessities and
online shopping. But the industry is expected to get better as
the economy gets better and people travel and work more
like they used to.
 Scope of Industry

 The Global Sports Apparel Market is segmented based

on Distribution Channel, End User, and Geography.
 Performance apparel: This includes clothing and
accessories specifically designed for high-performance
activities such as running, cycling, and fitness.
 Athletic equipment: This includes equipment for sports
such as baseball, soccer, tennis, and golf.
 Sports and fitness technology:This includes wearable
technology such as fitness trackers and smartwatches, as
well as other sports-related technology such as sports
coaching software.
Market Overview

• Sports Apparel Market was valued at USD 171.25 Billion in 2021,

and it is expected to reach USD 287.70 Billion by 2029, exhibiting a
CAGR of 6.7% during the forecast period (2022-2029).
• According to the Bureau of Labor Statistics, 19.6% of women
participated in sports, exercise, and recreational activities every day
in 2021, an increase from 17.2% in 2018.
• In this year 2023, the sports apparel market will reach a valuation of
US$ 207 Billion. Furthermore, across the 2023-2033 period of
assessment, growth is expected to accelerate at a whopping 6.9%
CAGR, reaching US$ 400 Billion.
Government Economic Social trends, Advancements Environmental Laws and
policies, such conditions, such such as in technology, factors, such regulations, such as
as tariffs and as consumer increased such as online as climate labor laws and
trade spending and focus on sales and 3D change, can environmental
agreements, inflation, can fitness and printing, can impact the regulations, can
can impact the affect the health, can impact the way materials used impact the
cost and demand for drive demand sports apparel in sports production and sale
availability of sports apparel. for sports is designed, apparel and of sports apparel.
materials and apparel. produced, and the way it is Companies are
manufacturing sold. manufactured. expected to comply
for sports with labor laws and
apparel regulations, and
companies. failing to do so can
result in penalties
and reputational
damage.
Fila

Fila is an south korean sportswear brand with

Italian. The founder of the company is Ettore
and Gainsevero,Fila is founded in 1911 in
Coggiola in 2003 it was sold to united states
based sports brand Internatinal .Fila korea
acquired the brand in 2007 and launched its
initial public offering on the korea exchange in
Sep 2010.The CEO is Yoon Geun-chang and the
company manufacturing athletic and casual
footwear appared and accessories.
 Marketing Mix
 Product-Fila always offer a wide range sportswear for men, women, kids, and athletes and their product are
outerwear ,polos& t-shirt, sweat& knits track tops bottom & shorts ,shoes, bag, eye glasses and its most
popular selling product are shoes and eye glasses.
 Price- Fila's pricing style and approach more competitive to the other fashion shoe seller. Fila pricing system
makes use a vertical pricing integration where they can participants in different place with different
customer.
 Place-Fila's product is carried by different ports and also the exclusive Fila store across the globe .Already
fila has 11 offers in 11 different countries.Filla sells its product by the subsidiaries, independent distributors
and licenses
 Promotion-Fila has a number of famous athelets that serve as brand ambassadors, they promote their brands
by TV, printed media, online and billboard campaign.
 Segmentation, Targeting, Positioning

SEGMENTATION:
Geographic-They focused on national and international market.
Demographic-They segmented men and women, low-upper middle income and age 18-35 years including
athletes, fashion, conscious people Behavioral- benefits, pattern, usage rate .
Targeting:
They target the sports person and the customer wants better quality product.
Positioning:
Fila's is an international brand with creativity, energy and style in their apparel at a very affordable price.
 Financial analysis

2022
Ratio 2021

1.94 1.54
Current Ratio

0.78
Quick Ratio 0.93

0.19 0.16
Debt to Asset

0.49 0.41
Debt to Equity
 SWOT Analysis
STRENGTH Weakness
1.The brand has very popular sports brand 1.Fila has tremendous competition from sports
ambassadors. apparels brand globally meaning smaller market
2.Fila's has a very successful brand image dur to shares .
its motivational design 2.Lack of products in the women segment

Opportunities
1.Fila will be the first brand to inculcate a
casual cultural into a brand
2. The lines of expanding into casual clothing
and sports equipment.
Threats
1.Fila will be the first brand to inculcate a
casual culture into a brand experiences.
 NIKE
Nike, Inc. is an American multinational association that is involved in the design,
development, manufacturing and worldwide marketing and sales of apparel, footwear,
accessories, equipment and services.
The company’s world headquarters are situated near Beaverton, Oregon, in the Portland
metropolitan area (USA). It is a major producer of sports equipment and one of the world’s
largest suppliers of athletic shoes and apparel.
The Company was Founded by Bill Bowerman and Phil Knight on May 30 1971.
 SEGMENTATION,TARGETING AND
POSITIONING
Segmentation: Nike segments its market based on demographics, psychographics, and behavior. The company
targets different segments with specific products and marketing campaigns, such as its "Women's" line, "Nike
Pro" line, and "Nike +" line.
Targeting: Nike targets specific segments of the market with its products, such as athletes, fitness enthusiasts,
and fashion-conscious consumers. The company also targets different age groups, with products and marketing
campaigns tailored to specific audiences, such as children, teens, and adults.
Positioning: Nike positions itself as a premium brand that offers high-quality, innovative products. The
company's marketing campaigns often focus on themes such as performance, self-expression, and inspiration,
emphasizing the emotional benefits of using Nike products.
 HR Policies followed by NIKE
• Recruitment and Selection
• Training and Development
• Employee Engagement and Communication
• Employee Benefits
 Financial Analysis
• Current Ratio: The ideal CR is 2:1 and in last 5 years the ratio is more than ideal ratio so it is showing that it is
good enough to meet its financial obligations.
• Quick Ratio: The ideal QR is 1:1 and higher the QR it is better for short term financial position and in last 2 year
its good that means they have capacity to convert CA in cash quickly.
• Debt to equity: In 2018-19 it was 0.39 which is very less which is good for lenders of company but in 2019-2021
it has increased and again in 2022 it decreased which is good for company.
• Debt to asset ratio: Debt to asset ratio should be below 1 and it is consider as safe ratio when analysed for last 5
years.
SWOT ANALYSIS
 PUMA
 Puma, is a German multinational corporation that designs
and manufactures athletic and casual footwear, apparel and
accessories. The company was founded in 1948 by Rudolf
Dassler. The CEO is Arne Freundt .
 It has its headquarters in Bavaria, Germany. Puma is the
third largest sportswear manufacturer in the world.
 Market Cap of Puma for year 2023 is $10.06 billion. The
highest cap of puma was in the year 2021 in month of
October that was $18.87 billion.
 They run various brand campaign like she move us, run
puma, for all time and so on to attract the customers.

Source: companiesmarketcap.com
in.puma.com
Marketing Analysis

1. Segmentation: Puma segment its market based on

geographic, demographic and psychographic factor.
2. Targeting: Puma targets athletes, fitness fanatics,
fashionistas, and self-expressionists. Marketing and product
offers are targeted to Europe, North America, and Asia.
3. Positioning: Puma is an international brand with
creativity, energy and style in their apparel at a very
affordable price. Puma also positions itself as a socially
conscious and sustainable brand.
 HR Analysis

Puma HR strategies focuses on key areas

like:
 Talent Acquisition
 Training and Development
 Benefits and Compensation
 Financial Analysis
• Current Ratio: The ideal CR is 2:1 and in last 5 years
the ratio is in between ideal ratio so it is showing that
puma has capacity to meet its current obligations. Ratio 2022 2021 2020 2019 2018

• Quick Ratio: The ideal QR is 1:1 and higher the QR it is

better for short term financial position and in last 5 year
Current Ratio 1.54 1.61 1.41 1.59 1.83
its not too good that means it did have capacity to
convert CA in cash quickly.

• Debt to asset ratio: It should be below 1 and it is Quick Ratio 0.78 0.93 0.79 0.88 1.07

consider as safe ratio when analysed for last 5 years.

• Debt to equity: It helps to know long term financial Debt to Asset 0.16 0.19 0.23 0.17 0.01

position. In 2018 it was 0.02 which is very less which is

good for lenders of company but from 2019-2022 it has
increased still lenders are enjoying protection but less in Debt to Equity 0.41 0.49 0.61 0.41 0.02
comparison to 2018. Company is more in debt financing Source : Gurufocus.com
and less into equity financing.
SWOT Analysis
 Adidas

Adidas is a multinational corporation that designs and

manufactures footwear, apparel and accessories. It is one of
the world's largest sportswear companies, and is known for its
iconic three-stripe logo. The company was founded in Germany
in 1949 by Adolf "Adi" Dassler, and has since grown to become a
major player in the global sportswear market.
 Marketing Analysis
• Strong brand identity and reputation, with an iconic three-stripe logo that is easily
recognizable.

• Diverse product portfolio that caters to a wide range of customers and sporting
activities.

• Successful in targeting specific market segments through targeted marketing campaigns.

• Strong presence in the running and soccer markets, as well as expanding into new
markets such as fashion and streetwear.

• Heavy investment in digital marketing, utilizing social media and influencer marketing to
reach new customers.

• Strong e-commerce presence, making it easy for customers to purchase products online.

• Faced intense competition from rival companies such as Nike and Under Armour.

• To stay ahead of the competition and navigate the ongoing challenges facing the retail
industry, Adidas will need to continue to adapt and evolve.
 STP Analysis

 Segmentation: Adidas segments its market based on demographic,

psychographic, and behavioral factors.

 Targeting: Adidas targets athletes, sports enthusiasts, and fashion-conscious

consumers of all ages. The brand also targets specific segments such as
soccer players, runners, and basketball players with specialized products.

 Positioning: Adidas positions itself as a high-performance, sport-inspired

brand that combines style and functionality. The brand's slogan "impossible is
nothing" reflects its focus on innovation, determination, and overcoming
obstacles.
 SWOT Analysis
Strengths:
 Strong brand recognition and
reputation
 Diversified product portfolio,
including footwear, apparel, and
accessories
 Strong partnerships and
collaborations, such as with the FIFA
World Cup and the Olympics
 Strong presence in key markets such
as Europe and North America
Opportunities:
 Growing demand for sportswear and
athletic footwear, particularly in
developing markets
 Potential to expand into new product
categories, such as fashion and lifestyle
 Opportunities to expand online and
direct-to-consumer sales
Weaknesses:
 Dependence on a small number of
key retail partners
 Limited presence in high-growth
markets such as Asia
 Relatively high prices compared to
some competitors
Threats:
 Intense competition in the
sportswear and footwear markets
 Economic downturns and currency
fluctuations can affect sales
 Increased pressure on the company
to address sustainability and
environmental issues
 HR Analysis

Recruiting and hiring: Adidas has a policy of hiring the best-qualified candidates for
open positions, without discrimination on the basis of race, gender, sexual orientation,
religion, or any other protected status.

Employee development and training: Adidas provides employees with opportunities for
learning and development, including training programs, career development resources,
and mentoring programs.

Employee engagement and retention: Adidas aims to create a positive and inclusive
work environment, where employees feel valued and respected. The company also offers
competitive compensation and benefits packages to help retain top talent.

Diversity, equity, and inclusion: Adidas actively promotes diversity, equity, and inclusion
in the workplace. The company has developed a global diversity and inclusion strategy,
which focuses on creating a culture where all employees feel respected, valued, and
included.
 Financial Analysis

Ratio (Ideal Ratio) 2022 2021 2020 2019 2018

Current Ratio (2:1) 1.55 1.37 1.24 1.43 1.37

Quick Ratio (1:1) 0.65 0.77 0.94 1.11 1.23

Return On Equity 19.03 6.41 27.17 26.85 21.04

Debt to Equity 0.31 0.47 0.23 0.26 0.17

Source- https://www.macrotrends.net/
 Operations Analysis

 Supply Chain Management: Adidas sources its products from a large number
of suppliers around the world.

 Production Processes: Adidas uses a combination of in-house production and

outsourcing to produce its products.

 Logistics: Adidas uses a variety of transportation and logistics methods to get

its products to customers.
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