SUBMITED BY VAIBHAV SRIVASTAVA MBA 3RD SEM (MARKETING

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 SPORTS APPAREL INDUSTRY IN INDIA  SPORTS APPAREL MARKET IN INDIA 2011 MAJOR PLAYERS OF SPORTS APPAREL INDUSTRY IN INDIA FIVE COMPETITIVE FORCES IN SPORTS BUSINESS ENVIRONMENT STEPS TOWARDS DEVELOPMENT FOR SPORTS APPAREL INDUSTRY     POTENTIAL OF SPORTS APPAREL INDUSTRY SWOT ANALYSIS OF INDIAN SPORTS APPAREL INDUSTRY  .

manufacturers.000 crores. changing lifestyle. Retailing of sportswear products in India is growing due to the rise in per capita income.    . the contribution of Jalandhar to this figure is about 60%. and consumers play an important role. Sportswear is a niche segment of retailing whereby. The Indian Sports equipments manufacturing industry has been exporting about 60% of its total domestic production to the sports loving consumers around the globe The total value of the sports goods manufacturing in India is worth about 5. government.8 Billion. and consumer preferences The current size of the Indian sportswear industry is worth ` 365. federations. sponsors. which is expected to grow at a CAGR of around 33% during 2010-2014.

poor state of sports infrastructure in the country and imposition of excise duty.     The competition section provides an overview of the competitive landscape in the industry and includes a brief profile of the major domestic and international players in the market along with their financials.The market is growing at 35-40 per cent a year and is expected to reach $3.493 crore).2 per cent of the retail market in India which translates into $1 billion (Rs 4.174 crore) by 2015. . Sports goods account for 0. The key trends identified include players sponsoring sports events and teams. The market is estimated to be worth INR 50 bn in 2010 and is expected to reach INR 120 bn by 2020 The key challenges identified include low sports participation rate.6 billion (Rs 16. competition from unorganized players. tie-ups between renowned Indian designers and the players and sportswear brand endorsements by prominent celebrities.

Indian sportswear market will be dominated by men’s sportswear section. which constitutes around 70% of the total sportswear market.159 Billion by 2014. Rise of online sales has brought tremendous opportunities as well as challenges to the retail and commercial businesses in India. growing at a CAGR of around 33% during 2010-2014. Total sportswear market is expected to reach to ` 1.   . A growing number of sportswear companies in India are now leveraging on the Internet platform as a doorway to diversify their sales and marketing channels.

 ADIDAS  NIKE  PUMA  REEBOK .

Crocs recently formed an alliance with the NFL to sell Crocs shoes in professional team colors. All four of these companies need to anticipate the moves of their competitors. and speed (responding to new styles and models and getting these products quickly to retailers). Crocs are slip-on shoes that have become popular in water sports and as a fashion item. 1. Adidas-Reebok. Nike. 2. For example. Rivalry among competing firms : Businesses compete for customers by price.  . Puma. Crocs normally come in bright colors and are easily recognizable. quality. Potential development of substitute products and services: This occurs when companies from other industries try to move into the market. and Fila are rivals in the athletic footwear industry. They also need to be aware of newer competitors such as Under Armour.

 3. it controls the suppliers. Workers are paid very low wages. In effect. has successfully entered the high-performance apparel industry. Because there are many consumers who want Nike products. which indirectly gives Nike a great deal of power over these oftentimes helpless factory workers. Potential entry of new competitors: How difficult and costly is it for new businesses to enter the industry? Does the company need to defend itself against new competition? Under Armour. founded in 1996.   . consumers lose power when they are loyal to a business like Nike and want to buy only Nike footwear. Nike is in a strong position as long as it continues to offer appealing products. Bargaining power of suppliers: Nike doesn’t manufacture its own sneakers. it uses private contractors in Vietnam to produce the sneakers. higher quality. better price. 5. because Nike can easily switch factories. 4. greater convenience. Bargaining power of consumers: How much does the business depend on the consumer? Consumers of footwear have power because they can shift to other manufacturers on a mere whim or because of a new style. However. and a host of other reasons.

The principal factor that has boosted up the growth of a large number of small scale sports goods manufacturing units in the country are the liberalized industrial policies of the government that have helped them to actualize the goals set forth by the Indian Government.  . The Indian sports goods manufacturing Industry is keenly looking forward to joint ventures and technical collaborations with suitable firms especially with a considerable degree of buy back arrangements. since the sports equipments manufactured in the country enjoy an immense export potential.

there are about 1. India need to increasingly implement more modern and value added technology in the process of manufacturing and evolving innovative products. This will help in meeting the growing competition in the international market. In Jalandhar alone.000 big and small sports goods manufacturers. The sports goods manufacturing industry of India is endowed with a huge potential across a wide spectrum of industrial issues including employment.  . economic development.5 lakh people. and exports.  This segment has today generated direct employment opportunities to about 1.

Business acumen of entrepreneurs Manufacturing industry network & linkages        Capacity to operate under adverse conditions .  Strengths More than 100 years old industry with strong base of traditionally skilled man power Availability of most of the raw materials Abundant human resources at comparatively lower cost Emergence of India on global manufacturing scene Low overheads due to small scale production.

            Weaknesses Most of the industry is in tiny sector. Minimal expenditure on brand building. Low Volume of Production Low mechanization in the MSME industry Lack of research and development facilities Lack of synergy and coordination amongst various manufacturers critical for Component Approach Higher production cost due to low scale of production Comparatively higher interest rates for loans Insensitivity to customer needs/ poor channels of customer feedback and customer complaint redressal system. advertising Lack of professional management Lack of opportunities for sports goods manufacturers .

           Opportunities Large and expanding domestic market Increase in demand due to rise in the disposable income of domestic consumer Growing confidence of both. Sports & fitness gaining importance at School/ College levels People are more health conscious now than ever Achievements of Indian sports persons increasing the awareness and popularity of sports in India Overseas buyers are looking for alternate source of supply instead of heavy dependence on one country Government Support for manufacturers for export promotion. Sector no more reserved for SSIs. hence encouragement for large companies to set up manufacturing in this sector .domestic and international buyers on the Indian sports goods.

and growing in numbers Shift from traditional sports equipment to high tech equipment . composites) by international manufacturers Easier import procedures & lower import duties increasing demand of imported equipment International brands gaining popularity in India. Low consciousness on international safety & quality standards Unable to adapt quickly to rapid changes in product designs Popularity of International brands amongst Indian consumers Introduction of high tech materials (Graphite.         Threats Competition from International brands in India. Single brand international stores already allowed by the govt.

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