Europe
Content
INDUSTRY PROFILE
Sports Equipment in Europe
Reference Code: 0201-0218 Publication Date: May 2010
www.datamonitor.com
Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: [email protected] Datamonitor Europe 119 Farringdon Road London EC1R 3DA United Kingdom t: +44 20 7551 9000 f: +44 20 7675 7500 e: [email protected] Datamonitor Middle East and North America Datamonitor PO Box 24893 Dubai, UAE t: +49 69 9754 4517 f: +49 69 9754 4900 e: datamonitormena@ datamonitor.com Datamonitor Asia Pacific Level 46, 2 Park Street Sydney, NSW 2000 Australia
t: +61 2 8705 6900 f: +61 2 8705 6901 e: [email protected]
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 1
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The European sports equipment market grew by 1.8% in 2009 to reach a value of $21.1 billion.
Market value forecast
In 2014, the European sports equipment market is forecast to have a value of $23.4 billion, an increase of 11.2% since 2009.
Market segmentation I
Golf equipment is the largest segment of the sports equipment market in Europe, accounting for 18.5% of the market's total value.
Market segmentation II
Germany accounts for 22.1% of the European sports equipment market value.
Market rivalry
The sports equipment market has seen a great deal of forward integration in recent years as sportswear manufacturers such as Adidas and Nike have successfully branched out in to retail.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 2
CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY MARKET OVERVIEW Market definition Research highlights Market analysis MARKET VALUE MARKET SEGMENTATION I MARKET SEGMENTATION II COMPETITIVE LANDSCAPE LEADING COMPANIES adidas AG Amer Sports Corporation NIKE, Inc. PUMA AG Rudolf Dassler Sport MARKET FORECASTS Market value forecast APPENDIX Methodology Industry associations Related Datamonitor research Disclaimer ABOUT DATAMONITOR Premium Reports Summary Reports Datamonitor consulting 2 6 6 7 8 9 10 11 12 15 15 19 22 27 31 31 32 32 33 33 34 35 35 35 35
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 3
CONTENTS
LIST OF TABLES
Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17: Table 18: Table 19: Europe sports equipment market value: $ billion, 2005–09(e) Europe sports equipment market segmentation I:% share, by value, 2009(e) Europe sports equipment market segmentation II: % share, by value, 2009(e) adidas AG: key facts adidas AG: key financials ($) adidas AG: key financials (€) adidas AG: key financial ratios Amer Sports Corporation: key facts Amer Sports Corporation: key financials ($) Amer Sports Corporation: key financials (€) Amer Sports Corporation: key financial ratios NIKE, Inc.: key facts NIKE, Inc.: key financials ($) NIKE, Inc.: key financial ratios PUMA AG Rudolf Dassler Sport: key facts PUMA AG Rudolf Dassler Sport: key financials ($) PUMA AG Rudolf Dassler Sport: key financials (€) PUMA AG Rudolf Dassler Sport: key financial ratios Europe sports equipment market value forecast: $ billion, 2009–14 9 10 11 15 16 17 17 19 20 20 20 22 25 25 27 28 28 29 31
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 4
CONTENTS
LIST OF FIGURES
Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Figure 10: Figure 11: Figure 12: Europe sports equipment market value: $ billion, 2005–09(e) Europe sports equipment market segmentation I:% share, by value, 2009(e) Europe sports equipment market segmentation II: % share, by value, 2009(e) adidas AG: revenues & profitability adidas AG: assets & liabilities Amer Sports Corporation: revenues & profitability Amer Sports Corporation: assets & liabilities NIKE, Inc.: revenues & profitability NIKE, Inc.: assets & liabilities PUMA AG Rudolf Dassler Sport: revenues & profitability PUMA AG Rudolf Dassler Sport: assets & liabilities Europe sports equipment market value forecast: $ billion, 2009–14 9 10 11 18 18 21 21 26 26 29 30 31
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 5
MARKET OVERVIEW
MARKET OVERVIEW
Market definition
The sports equipment market consists of equipment for ball sports (baseball, softball, basketball, soccer, football, volleyball, cricket, hockey, etc), adventure sports (camping, hunting and firearms, skin diving and scuba, water ski-ing, surfboarding and sailboarding, etc), fitness (exercise bikes, home gym, rowing machine, hand/wrist/ankle weights, treadmill, jump rope, stepper), golf (clubs, bags, balls, gloves, carts, etc), racket sports (tennis, squash, badminton, etc), winter sports (downhill and cross-country ski-ing, snowboarding, etc), and other sports such as archery, billiards, indoor games, bowling, in-line skating, martial arts, wheel sports, pogo sticks, and fishing equipment. Market values are calculated at retail selling price (RSP). Any currency conversions used in the creation of this report have been calculated using constant annual average 2009 exchange rates. For the purposes of this report, Europe consists of Western Europe and Eastern Europe. Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, and the United Kingdom. Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 6
MARKET OVERVIEW
Research highlights
The European sports equipment market had total revenue of $21.1 billion in 2009, representing a compound annual growth rate (CAGR) of 2.2% for the period spanning 2005-2009. Golf equipment sales proved the most lucrative for the European sports equipment market in 2009, with total revenues of $3.9 billion, equivalent to 18.5% of the market's overall value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.2% for the fiveyear period 2009-2014, which is expected to drive the market to a value of $23.4 billion by the end of 2014.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 7
MARKET OVERVIEW
Market analysis
The European sports equipment market has experienced relatively stable growth in recent years. The average growth rate is predicted to remain the same over the next five years. The European sports equipment market had total revenue of $21.1 billion in 2009, representing a compound annual growth rate (CAGR) of 2.2% for the period spanning 2005-2009. In comparison, the German and UK markets grew with CAGRs of 0.8% and 3.8% respectively, over the same period, to reach respective values of $4.7 billion and $3.9 billion in 2009. Golf equipment sales proved the most lucrative for the European sports equipment market in 2009, with total revenues of $3.9 billion, equivalent to 18.5% of the market's overall value. In comparison, sales of adventure sport equipment generated revenues of $3.5 billion in 2009, equating to 16.6% of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.2% for the fiveyear period 2009-2014, which is expected to drive the market to a value of $23.4 billion by the end of 2014. Comparatively, the German and UK markets will grow with CAGRs of 1.3% and 3.6% respectively, over the same period, to reach respective values of $4.9 billion and $4.7 billion in 2014.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 8
MARKET VALUE
MARKET VALUE
The European sports equipment market grew by 1.8% in 2009 to reach a value of $21.1 billion. The compound annual growth rate of the market in the period 2005–09 was 2.2%. Table 1: Year 2005 2006 2007 2008 2009(e) CAGR: 2005–09 Source: Datamonitor Europe sports equipment market value: $ billion, 2005–09(e) $ billion 19.3 19.8 20.2 20.7 21.1 € billion 13.9 14.2 14.5 14.9 15.1 % Growth 2.7 2.1 2.4 1.8 2.2% DATAMONITOR
Figure 1:
Europe sports equipment market value: $ billion, 2005–09(e)
Source: Datamonitor
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 9
MARKET SEGMENTATION I
MARKET SEGMENTATION I
Golf equipment is the largest segment of the sports equipment market in Europe, accounting for 18.5% of the market's total value. The adventure sport equipment segment accounts for a further 16.6% of the market. Table 2: Category Golf equipment Adventure sport equipment Fitness equipment Ball sport equipment Winter sport equipment Racket sport equipment Other Total Source: Datamonitor Europe sports equipment market segmentation I:% share, by value, 2009(e) % Share 18.5% 16.6% 15.4% 15.2% 12.6% 5.9% 15.8% 100% DATAMONITOR
Figure 2:
Europe sports equipment market segmentation I:% share, by value, 2009(e)
Source: Datamonitor
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 10
MARKET SEGMENTATION II
MARKET SEGMENTATION II
Germany accounts for 22.1% of the European sports equipment market value. France accounts for a further 19.9% of the European market. Table 3: Category Germany France United Kingdom Italy Spain Rest of Europe Total Source: Datamonitor Europe sports equipment market segmentation II: % share, by value, 2009(e) % Share 22.1% 19.9% 18.9% 10.5% 6.7% 21.8% 100% DATAMONITOR
Figure 3:
Europe sports equipment market segmentation II: % share, by value, 2009(e)
Source: Datamonitor
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 11
COMPETITIVE LANDSCAPE
COMPETITIVE LANDSCAPE
The sports equipment market will be analyzed taking sports equipment retailers as players. The key buyers will be taken as individual consumers, and sports equipment manufacturers as the key suppliers. The sports equipment market has seen a great deal of forward integration in recent years as sportswear manufacturers such as Adidas and Nike have successfully branched out in to retail. The European market for sports equipment is fragmented despite the presence of some larger players. The wide range of products available, the existence of a large number of retailers and the fact that some large sports equipment companies have integrated forwards into retail all mean that buyer power is prevented from becoming disproportionately strong in this market. The retail of sports equipment offers some economies of scale such as bulk buying, but it is still possible to enter the market on a modest scale by producing, for example, small quantities of custom-made golf clubs, although uninspiring revenue growth in recent years makes entering this market a less attractive prospect for newcomers. Many companies in this market also sell sports apparel and footwear, which reduces their reliance on sales of sports equipment and rivalry, is weakened further by the policy of many large corporations to outsource manufacturing. Typical sports equipment retailers include multiples such as Groupe Go Sport and JJB Sports; numerous independents; club stores; department stores and e-commerce operations. Department stores and hypermarkets are also important as these have the space to stock and display large pieces of equipment such as home gyms. Consumer loyalty is often more towards a particular manufacturer brand, rather than to a retailer, and most retailers will stock multiple brands. This strengthens buyer power, and can leave 'pure' retailers somewhat vulnerable to manufacturers who also operate in the retail market through their own branded stores or online sales. Switching costs are very low for buyers, which strengthens buyer power. Buyer power is assessed as moderate overall. Sports equipment production may be characterized by three related themes: research & development, innovation, and adoption of new materials. Previously distinct boundaries between sportswear and casual wear are becoming increasingly blurred. Although the focus of this report is on sporting equipment and not garments the market’s crossover potential cannot be denied. This leads to the potential for equipment products to be stocked alongside sports garments in populist retail outlets such as super/hypermarkets. Fast-expanding sectors, like snowboard, mountain bike and cycling, are rather atomized, and innovation here is much more on new product and materials. In areas such as these, equipment and lifestyle go hand in hand, given the developing nature of extreme/adrenaline sports the potential for growth cannot be ignored. The ability of manufacturers to differentiate their products in these ways increases their supplier power. The suppliers of some of the materials used to make the equipment, such as rubber and textiles, include small factories and operate in a fragmented up-stream landscape, which also strengthens the bargaining power of the equipment manufacturers relative to their own suppliers. Furthermore, outsourcing is a prominent feature of this market.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 12
COMPETITIVE LANDSCAPE
Large corporations such as Nike often design their products in places like the US and then sub-contract manufacturers in countries like South Korea, India, China and Indonesia for the actual production of the goods. A significant proportion of Adidas products, for example, are produced at outsourced manufacturing locations around the world. The large number of relatively low-cost factory options available to these large corporations combined with the financial muscle of these sports equipment companies considerably strengthens the power held by these suppliers relative to their retail buyers. It is uncommon for sports equipment retailers to integrate backwards into the production of sports equipment, which strengthens supplier power. Forward integration among sports equipment manufacturers into the retail of sports equipment is highly likely as they often open and operate their own retail outlets, as well as direct e-commerce sites. Some sports equipment companies, such as Nike, have integrated forwards into selling directly to the consumer through company-owned retail outlets and a number of smaller companies take advantage of the internet to sell directly to consumers via company websites. Suppliers are not usually solely dependent on one type of sports equipment for their revenues and can often find alternative markets through diversification. Overall, supplier power is strong. Entry to the sports equipment retail market may be achieved by starting up a new company or by diversifying an existing company's operations into the retail of sports equipment. Although some brands of sports equipment are used across more than one sport (e.g. Slazenger, Wilson, Head), a considerable proportion is produced and sold by specialists. As a consequence of this, it is possible to enter this market on a small scale without the need to invest in a large chain of retail outlets. Custom-made sports equipment, such as Balabushka pool cues, is a good example of this. George Balabushka developed, made and sold his own pool cues. Many innovations of his are now industry standard, and the high reputation of his products among end-users is a competitive advantage. However, there is a need for significant logistical arrangements, such as good transport and distribution channels. Although some large, existing sports equipment retailers may be able to move in to new markets and open their own retail outlets, this strategy often proves too costly for smaller retailers or startups. Market revenue growth over recent years has been unexciting, which also makes the market less attractive to new companies. Overall, there is a moderate likelihood of new entrants. Substitutes to sports equipment may include any products purchased for the purpose of enhancing/passing leisure time as generally sport is a recreational activity. This is certainly the point of view of retailers, who deem substitutes for sports equipment to include other leisure products such as books, board games, music, and computer games. The severity of the threat depends on the business model of the retailer, and can be hard to assess. For example, many customers of specialist sports stores will often not consider the alternatives ‘beneficial’, because of their personal preference for playing sport over playing computer games. However, it will be harder for the specialist retailers to generate revenues from those potential customers who actually remain wedded to their consoles.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 13
COMPETITIVE LANDSCAPE
A department store will generally be able to offer both sports equipment and substitutes, safeguarding its revenues against fickle buyers through the diversity of its product lines. However, without detailed knowledge of the mark-up on different leisure products, it is difficult to know how substitute products might impact its profitability. The threat from substitutes is assessed as strong overall. The market for sports equipment retail is fairly fragmented. It is difficult for retailers to differentiate themselves effectively as many stock the same products, which strengthens rivalry. A number of companies in this market also sell sports apparel, footwear and other sports accessories. These products often represent a significant segment of retailers’ revenues, which makes them less reliant on the sports equipment market and also decreases rivalry somewhat. Purchasers have a fairly wide range of products to choose from, with low switching costs. Unexciting market revenue growth in recent years tends further to strengthen rivalry, which is assessed as moderate overall.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 14
LEADING COMPANIES
LEADING COMPANIES
adidas AG
Table 4: adidas AG: key facts Adi Dassler Platz 1 2, 91074 Herzogenaurach DEU 49 9132 840 49 9132 84 2241 www.adidas-group.com December ADS Frankfurt DATAMONITOR
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website
adidas is one of the largest companies in the sporting goods industry. The group has divided its operating activities by major brand into three divisions: adidas, Reebok and TaylorMade-adidas Golf. The group operates through more than 150 subsidiaries in Europe, the US and Asia, each focusing on a particular market or part of the manufacturing process. The adidas brand focuses on sports. It offers footwear, apparel and accessories through two divisions, namely sport performance and sport style. The sport performance division develops sports products, focused on running, football, basketball, tennis and training. The sport style division is focused on fashionconscious consumers and includes collections like the 'Y-3' designed by Yohji Yamamoto, a Japanese fashion designer based in Tokyo and Paris. The focus of the Reebok brand is more on style. It offers sports, fitness and casual footwear, apparel and equipment under the Reebok brand. Rebook operates through two divisions Reebok-CCM Hockey and Rockport. Reebok-CCM Hockey is one of the world's largest designers, manufacturers and marketers of hockey equipment and apparel with two of the world's most recognized hockey brand names: Reebok Hockey and CCM Hockey. Rockport designs and markets dress, casual and outdoor footwear as well as apparel and accessories. The TaylorMade-adidas Golf brand offers a range of golf clubs, accessories, footwear and apparel. It combines three of golf's most well-known brands: TaylorMade, adidas Golf, and Ashworth.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 15
LEADING COMPANIES
Most of the group’s products are manufactured by third party independent manufacturers. During FY2008, to minimize production costs, adidas outsourced over 95% of production to such manufacturers, primarily located in Asia. The group undertakes research and development activities on a global scale. Research and development (R&D) activities within the adidas group are decentralized, with each brand having its own research, design and development operations across several countries. The group markets its products through an extensive distribution channel. As December 2008, the total number of adidas stores was 1,332. The group has 796 concept stores, 381 factory outlets, 150 concession corners and five e-commerce stores worldwide. adidas has concluded several endorsement contracts with several sportsmen and women. Sportsmen under contract include David Beckham (soccer), Kevin Garnett and Tim Duncan (basketball), and Sergio Garcia (golf). It also provides the team kit wear for the French football team and clubs such as Real Madrid, AC Milan, and FC Bayern Munich. Key Metrics The company recorded revenues of $14,435 million in the fiscal year ending December 2009, a decrease of 3.9% compared to fiscal 2008. Its net income was $341 million in fiscal 2009, compared to a net income of $893 million in the preceding year.
Table 5: $ million
adidas AG: key financials ($) 2005 9,227.4 532.6 7,995.4 4,224.4 15,935 2006 14,021.9 671.6 11,651.1 7,707.6 26,376 2007 14,320.9 766.2 11,576.0 7,372.5 31,344 2008 15,016.1 892.7 13,255.7 8,528.0 36,129 2009 14,434.9 340.7 13,253.0 7,328.0 38,982
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 16
LEADING COMPANIES
Table 6: € million
adidas AG: key financials (€) 2005 6,636.0 383.0 5,750.0 3,038.0 2006 10,084.0 483.0 8,379.0 5,543.0 2007 10,299.0 551.0 8,325.0 5,302.0 2008 10,799.0 642.0 9,533.0 6,133.0 2009 10,381.0 245.0 9,531.0 5,270.0
Revenues Net income (loss) Total assets Total liabilities Source: company filings
DATAMONITOR
Table 7: Ratio
adidas AG: key financial ratios 2005 5.8% 13.2% 29.9% 8.5% 52.8% 7.5% $579,067 $33,421 2006 4.8% 52.0% 45.7% 82.5% 66.2% 6.8% $531,616 $25,463 2007 5.4% 2.1% (0.6%) (4.3%) 63.7% 6.6% $456,894 $24,444 2008 5.9% 4.9% 14.5% 15.7% 64.3% 7.2% $415,625 $24,709 2009 2.4% (3.9%) 0.0% (14.1%) 55.3% 2.6% $370,296 $8,739
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 17
LEADING COMPANIES
Figure 4:
adidas AG: revenues & profitability
Source: company filings
DATAMONITOR
Figure 5:
adidas AG: assets & liabilities
Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 18
LEADING COMPANIES
Amer Sports Corporation
Table 8: Amer Sports Corporation: key facts Makelankatu 91, 00610 Helsinki, FIN 358 9 7257 800 358 9 7257 8200 www.amersports.com December AMEAS NASDAQ OMX DATAMONITOR
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website
Amer Sports Corporation (Amer Sports) is a Finland based company that develops, manufactures and sells sports equipment. The company and its subsidiaries operate in over 30 countries and their primary markets are the US and Europe. Amer Sports operates through three business segments: winter and outdoor, ball sports, and fitness. Amer Sports, through its winter and outdoor segment, offers winter sports equipment under the brand names Salomon, Atomic and Bonfire; apparel and footwear under Salomon and Arc'teryx brands; cycling systems under Mavic brand; and sports instruments under Suunto brand. The company offers advanced equipment under the Wilson brand through its ball sports segment. Wilson's core categories include baseball, football, basketball, softball, bats, volleyball, soccer, youth sports, apparel, golf products and footwear. It also offers tennis, racquetball, squash, badminton and platform tennis products under racquet sports category. The fitness segment of Amer Sports offers fitness equipment for commercial and home markets under the brand name Precor. Its main products include aerobic exercise equipment, strength-training systems and entertainment systems. Precor is one the world's leading manufacturers of elliptical cross trainers. In addition, the company manufactures air drive computers under the brand Suunto. Key Metrics The company recorded revenues of $2,132 million in the fiscal year ending December 2009, a decrease of 2.7% compared to fiscal 2008. Its net income was $44 million in fiscal 2009, compared to a net income of $47 million in the preceding year.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 19
LEADING COMPANIES
Table 9: $ million
Amer Sports Corporation: key financials ($) 2005 2,408.4 104.6 2,344.8 1,435.0 6,667 2006 2,492.8 98.0 2,304.8 1,454.5 6,553 2007 2,297.1 25.7 2,286.7 1,578.0 0 2008 2,191.4 47.3 2,310.9 1,604.6 0 2009 2,132.2 43.5 2,120.0 1,101.1 6,338
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 10: € million
Amer Sports Corporation: key financials (€) 2005 1,732.0 75.2 1,686.3 1,032.0 2006 1,792.7 70.5 1,657.5 1,046.0 2007 1,652.0 18.5 1,644.5 1,134.8 2008 1,576.0 34.0 1,661.9 1,154.0 2009 1,533.4 31.3 1,524.6 791.9
Revenues Net income (loss) Total assets Total liabilities Source: company filings
DATAMONITOR
Table 11: Ratio
Amer Sports Corporation: key financial ratios 2005 4.3% 63.6% 103.0% 179.5% 61.2% 6.0% 2006 3.9% 3.5% (1.7%) 1.4% 63.1% 4.2% 2007 1.1% (7.8%) (0.8%) 8.5% 69.0% 1.1% 2008 2.2% (4.6%) 1.1% 1.7% 69.4% 2.1% 2009 2.0% (2.7%) (8.3%) (31.4%) 51.9% 2.0%
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 20
LEADING COMPANIES
Figure 6:
Amer Sports Corporation: revenues & profitability
Source: company filings
DATAMONITOR
Figure 7:
Amer Sports Corporation: assets & liabilities
Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 21
LEADING COMPANIES
NIKE, Inc.
Table 12: Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website NIKE, Inc.: key facts Nike, Inc., One Bowerman Drive, Beaverton, Oregon 97005 6453, USA 1 503 671 6453 1 503 671 6300 www.nike.com May NKE New York DATAMONITOR
Nike is primarily engaged in the design, development and worldwide marketing of footwear, apparel, equipment and accessory products. The company sells its products primarily through its retail stores and various distributors and licensees, in over 180 countries across Americas, Europe, the Middle East, Africa, and Asia-Pacific. Nike's operations are supported by manufacturing, sourcing and distribution facilities. The company procures raw materials including natural and synthetic rubber, plastic compounds, foam cushioning materials, nylon, leather, canvas and polyurethane films to make Air-Sole cushioning components used in footwear from Nike IHM, Nike (Suzhou) Sports Company, wholly owned subsidiaries of Nike and independent contractors located in China and Taiwan. Nike and its contractors and suppliers purchase raw materials for apparel products in the country where they manufacture apparel products for Nike and its subsidiaries. The key raw materials used in apparel are natural and synthetic fabrics, thread, plastic and metal hardware and specialized performance fabrics designed to repel rain and retain heat. The company operates one footwear factory which accounts for around 6% of the company's total footwear production. In addition to manufacturing, the company procures footwear from contract suppliers located in China, Vietnam, Indonesia, and Thailand. Of the total Nike branded footwear the company procured 36% from manufacturers located in China, 33% from Vietnam, 21% from Indonesia and 9% from Thailand. The company also has manufacturing agreements with independent factories in Argentina, Brazil, India, Italy and South Africa which manufacture footwear for the company to be sold in those countries.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 22
LEADING COMPANIES
Nike procures apparel for sale from the US and other international markets from independent contract manufacturers located in 34 countries such as China, Thailand, Indonesia, Malaysia, Vietnam, Turkey, Sri Lanka, Honduras, Mexico, Taiwan, Israel, Cambodia, India and Bangladesh. Its largest single apparel factory accounted for approximately 8% of total 2008 apparel production. Through a futures ordering program the company offers its merchandise to retailers in the US and other international locations. In the US, the company distributes footwear through its distribution centers located in Wilsonville, Oregon and Memphis. Nike distributes apparel and equipment from centers located in Memphis, Tennessee, Tigard, Oregon, and Foothill ranch, California. Nike operates 11 distribution centers in Europe, Asia, Australia, Africa and Canada from which it distributes to its stores in international locations. Nike's operations can be divided into four product lines: footwear, apparel, equipment and other. The company manufactures and sells footwear for specific athletic use such as running, training, basketball and soccer. It also manufactures and sells sports-inspired urban shoes and children's shoes. In addition, the footwear product line comprises shoes for casual and leisure use. The company also sells shoes designed for tennis, golf, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, hiking, outdoor activities and other athletic and recreational activities. The company offers these products for men, women and children. Nike offers sports apparel and accessories for athletic activities such as running, training, basketball, soccer, golf, baseball, football and bicycling. Nike sells sports apparel and accessories for most of the activities for which it offers footwear. Nike's apparel product line comprises sports-inspired lifestyle apparel, athletic bags and other accessory items. The company offers apparel and accessories to complement its athletic footwear products. It also offers footwear, apparel and accessories in collections designed in a similar fashion or for a specific purpose. The company also markets apparel with licensed college and professional team and league logos. Nike sells performance equipment under the Nike brand name, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protective equipment and other sports equipment The company also licenses the production and selling of Nike branded swimwear, cycling apparel, children's clothing, school supplies, eyewear, golf accessories and belts. In addition, Nike sells a wide range of plastic products to other manufacturers through its subsidiary, Nike IHM. The company offers athletic company owned branded footwear, apparel and equipment through 254 retail stores in the US.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 23
LEADING COMPANIES
Of these 121 are Nike factory stores which carry primarily overstock and closeout merchandise, 14 are Nike stores which also house Nike Women stores, 12 are Nike Towns which are designed to shelf Nike branded products and four Nike employee-only stores. Nike offers its products in other countries through Nike-owned retail stores and through a mix of independent distributors and licensees. The company sells its products to over 27,000 retail accounts outside the US, excluding sales by independent distributors and licensees. Outside the US, the company offers its products through 141 Nike factory stores, 46 Nike stores, three NikeTowns and 12 Nike employee-only stores. The company's other product line primarily includes the external sales by its subsidiaries: Cole Haan Holdings, Converse, Hurley International, Nike Golf, and Umbro. Nike's other businesses comprise subsidiaries through which Nike sells apparel, footwear and accessories of brands other than Nike. Nike's wholly owned subsidiaries include Cole Haan Holdings, Converse, Hurley International and Nike IHM. The company sells a line of dress and casual footwear, apparel and accessories for men, women and children under the Cole Haan and Bargano brand names through its subsidiary, Cole Haan Holdings. Converse, a subsidiary of the company, designs and distributes athletic and casual footwear, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, John Varvatos, and Jack Purcell brand names. It also offers footwear under the Hurley brand. Hurley International, a subsidiary of the company designs and distributes a line of action sports apparel for surfing, skateboarding, snowboarding and youth lifestyle apparel and accessories under the Hurley brand. The company also provides athletic and casual footwear, apparel and equipment, primarily for the sport of soccer under the Umbro brands. Nike Golf, a subsidiary of the company, designs and markets golf equipment, apparel, balls, footwear, bags and accessories across several geographies. Further, the company operates four Nike employeeonly stores, 102 Cole Haan stores that house factory and employee stores, 35 Converse stores that house factory and employee stores and seven Hurley stores. Outside the US, the company operates 57 Cole Haan stores. In addition to the physical retail store channel, the company also offers its products across various countries through the websites, nike.com, nikestore.com and nikewomen.com. Key Metrics The company recorded revenues of $19,176 million in the fiscal year ending May 2009, an increase of 2.9% compared to fiscal 2008. Its net income was $1,487 million in fiscal 2009, compared to a net income of $1,883 million in the preceding year.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 24
LEADING COMPANIES
Table 13: $ million
NIKE, Inc.: key financials ($) 2005 13,739.7 1,211.6 8,793.6 3,149.4 26,000 2006 14,954.9 1,392.0 9,869.6 3,584.4 28,000 2007 16,325.9 1,491.5 10,688.3 3,662.9 30,200 2008 18,627.0 1,883.4 12,442.7 4,617.1 30,200 2009 19,176.1 1,486.7 9,103.0 4,147.0 32,500
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 14: Ratio
NIKE, Inc.: key financial ratios 2005 8.8% 12.1% 11.4% 1.3% 35.8% 14.5% $528,450 $46,600 2006 9.3% 8.8% 12.2% 13.8% 36.3% 14.9% $534,104 $49,714 2007 9.1% 9.2% 8.3% 2.2% 34.3% 14.5% $540,593 $49,387 2008 10.1% 14.1% 16.4% 26.1% 37.1% 16.3% $616,788 $62,364 2009 7.8% 2.9% (26.8%) (10.2%) 45.6% 13.8% $590,034 $45,745
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 25
LEADING COMPANIES
Figure 8:
NIKE, Inc.: revenues & profitability
Source: company filings
DATAMONITOR
Figure 9:
NIKE, Inc.: assets & liabilities
Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 26
LEADING COMPANIES
PUMA AG Rudolf Dassler Sport
Table 15: PUMA AG Rudolf Dassler Sport: key facts PUMA Way 1, 91074 Herzogenaurach DEU 49 9132 81 0 49 9132 81 2246 www.puma.com December PUM Frankfurt DATAMONITOR
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website
PUMA AG Rudolf Dassler Sport (PUMA) is a sportswear company whose principal activities include the design, manufacture and distribution of a variety of sporting goods. The company has operations throughout Europe, Asia, America and Africa where it sells PUMA and Tretorn branded footwear, apparel and accessories. Puma operates through three divisions: footwear, apparel, and accessories. The footwear division designs, manufactures and markets a range of shoes for various sports, including football, motorsport, cricket, and golf. The apparel segment produces clothes aimed at sporting activities as well as leisure and casual wear. The company's clothing includes the Shudoh, Nuala, and Platinum brands. Puma has sponsorship deals with teams and individual sportsmen and women to help promote their products. The accessories division sells mainly bags, balls, and sporting accessories. The company conducts its operations and manufactures its products through a number of operations. Sourcing, research and development, strategic planning, supply service, warehousing and logistics, sales, sales service and distribution are controlled from headquarters in Germany. The company also has decentralized core competency centers, with operations in the US responsible for brand marketing and Research & Development, while PUMA's Hong Kong headquarters is responsible for brand marketing and product sourcing in the Asian market. The company's brands include PUMA + Alexander McQueen, Mihara, Rudolf Dassler Schuhfabrik, PUMA - The Black Label and Tretorn.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 27
LEADING COMPANIES
Key Metrics The company recorded revenues of $3,422 million in the fiscal year ending December 2009, a decrease of 2.5% compared to fiscal 2008. Its net income was $178 million in fiscal 2009, compared to a net income of $324 million in the preceding year.
Table 16: $ million
PUMA AG Rudolf Dassler Sport: key financials ($) 2005 3,319.2 397.4 1,836.9 619.6 0 2006 3,831.0 366.0 2,384.4 925.8 0 2007 3,808.3 374.0 2,590.5 984.8 0 2008 3,509.9 323.7 2,640.2 1,003.3 0 2009 3,421.6 178.3 2,800.6 1,076.7 10,069
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 17: € million
PUMA AG Rudolf Dassler Sport: key financials (€) 2005 2,387.0 285.8 1,321.0 445.6 2006 2,755.1 263.2 1,714.8 665.8 2007 2,738.8 269.0 1,863.0 708.2 2008 2,524.2 232.8 1,898.7 721.5 2009 2,460.7 128.2 2,014.1 774.3
Revenues Net income (loss) Total assets Total liabilities Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 28
LEADING COMPANIES
Table 18: Ratio
PUMA AG Rudolf Dassler Sport: key financial ratios 2005 12.0% 18.4% 40.2% 13.6% 33.7% 25.3% 2006 9.6% 15.4% 29.8% 49.4% 38.8% 17.3% 2007 9.8% (0.6%) 8.6% 6.4% 38.0% 15.0% 2008 9.2% (7.8%) 1.9% 1.9% 38.0% 12.4% 2009 5.2% (2.5%) 6.1% 7.3% 38.4% 6.6%
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Source: company filings
DATAMONITOR
Figure 10: PUMA AG Rudolf Dassler Sport: revenues & profitability
Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 29
LEADING COMPANIES
Figure 11: PUMA AG Rudolf Dassler Sport: assets & liabilities
Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 30
MARKET FORECASTS
MARKET FORECASTS
Market value forecast
In 2014, the European sports equipment market is forecast to have a value of $23.4 billion, an increase of 11.2% since 2009. The compound annual growth rate of the market in the period 2009–14 is predicted to be 2.2%. Table 19: Year 2009 2010 2011 2012 2013 2014 CAGR: 2009–14 Source: Datamonitor Europe sports equipment market value forecast: $ billion, 2009–14 $ billion 21.1 21.5 21.9 22.5 22.9 23.4 € billion 15.1 15.5 15.8 16.1 16.5 16.8 % Growth 1.8% 2.1% 2.1% 2.3% 2.1% 2.2% 2.2% DATAMONITOR
Figure 12: Europe sports equipment market value forecast: $ billion, 2009–14
Source: Datamonitor
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 31
APPENDIX
APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: National/Governmental statistics International data (official international sources) National and International trade associations Broker and analyst reports Company Annual Reports Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 32
APPENDIX
Industry associations
World Federation of the Sporting Goods Industry Maison du Sport International (Building C, 3rd floor), Avenue de Rhodanie 54, 1007 Lausanne, Switzerland Tel.: 41 21 612 61 61 Fax: 41 21 612 61 69 http://www.wfsgi.org Federation of the European Sporting Goods Association Rue Belliard 20, 1040 Brussels, Belgium Tel.: 32 2 762 86 48 Fax: 32 2 771 87 46 http://www.fesi-sport.org
Related Datamonitor research
Industry Profile Global Sports Equipment Sports Equipment in Germany Sports Equipment in the United Kingdom
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 33
APPENDIX
Disclaimer
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 34
ABOUT DATAMONITOR
ABOUT DATAMONITOR
The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Combining our industry knowledge and experience, we assist over 6,000 of the world’s leading companies in making better strategic and operational decisions. Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment.
Premium Reports
Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas.
Summary Reports
Our series of company, industry and country profiles complements our premium products, providing top-level information on 30,000 companies, 3,000 industries and 100 countries. While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need - including predictions and forecasts.
Datamonitor consulting
We hope that the data and analysis in this profile will help you make informed and imaginative business decisions. If you have further requirements, Datamonitor’s consulting team may be able to help you. For more information about Datamonitor’s consulting capabilities, please contact us directly at [email protected].
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 35
Copyright of Sports Equipment Industry Profile: Europe is the property of Datamonitor Plc and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.
Sports Equipment in Europe
Reference Code: 0201-0218 Publication Date: May 2010
www.datamonitor.com
Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: [email protected] Datamonitor Europe 119 Farringdon Road London EC1R 3DA United Kingdom t: +44 20 7551 9000 f: +44 20 7675 7500 e: [email protected] Datamonitor Middle East and North America Datamonitor PO Box 24893 Dubai, UAE t: +49 69 9754 4517 f: +49 69 9754 4900 e: datamonitormena@ datamonitor.com Datamonitor Asia Pacific Level 46, 2 Park Street Sydney, NSW 2000 Australia
t: +61 2 8705 6900 f: +61 2 8705 6901 e: [email protected]
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 1
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The European sports equipment market grew by 1.8% in 2009 to reach a value of $21.1 billion.
Market value forecast
In 2014, the European sports equipment market is forecast to have a value of $23.4 billion, an increase of 11.2% since 2009.
Market segmentation I
Golf equipment is the largest segment of the sports equipment market in Europe, accounting for 18.5% of the market's total value.
Market segmentation II
Germany accounts for 22.1% of the European sports equipment market value.
Market rivalry
The sports equipment market has seen a great deal of forward integration in recent years as sportswear manufacturers such as Adidas and Nike have successfully branched out in to retail.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 2
CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY MARKET OVERVIEW Market definition Research highlights Market analysis MARKET VALUE MARKET SEGMENTATION I MARKET SEGMENTATION II COMPETITIVE LANDSCAPE LEADING COMPANIES adidas AG Amer Sports Corporation NIKE, Inc. PUMA AG Rudolf Dassler Sport MARKET FORECASTS Market value forecast APPENDIX Methodology Industry associations Related Datamonitor research Disclaimer ABOUT DATAMONITOR Premium Reports Summary Reports Datamonitor consulting 2 6 6 7 8 9 10 11 12 15 15 19 22 27 31 31 32 32 33 33 34 35 35 35 35
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 3
CONTENTS
LIST OF TABLES
Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17: Table 18: Table 19: Europe sports equipment market value: $ billion, 2005–09(e) Europe sports equipment market segmentation I:% share, by value, 2009(e) Europe sports equipment market segmentation II: % share, by value, 2009(e) adidas AG: key facts adidas AG: key financials ($) adidas AG: key financials (€) adidas AG: key financial ratios Amer Sports Corporation: key facts Amer Sports Corporation: key financials ($) Amer Sports Corporation: key financials (€) Amer Sports Corporation: key financial ratios NIKE, Inc.: key facts NIKE, Inc.: key financials ($) NIKE, Inc.: key financial ratios PUMA AG Rudolf Dassler Sport: key facts PUMA AG Rudolf Dassler Sport: key financials ($) PUMA AG Rudolf Dassler Sport: key financials (€) PUMA AG Rudolf Dassler Sport: key financial ratios Europe sports equipment market value forecast: $ billion, 2009–14 9 10 11 15 16 17 17 19 20 20 20 22 25 25 27 28 28 29 31
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 4
CONTENTS
LIST OF FIGURES
Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Figure 10: Figure 11: Figure 12: Europe sports equipment market value: $ billion, 2005–09(e) Europe sports equipment market segmentation I:% share, by value, 2009(e) Europe sports equipment market segmentation II: % share, by value, 2009(e) adidas AG: revenues & profitability adidas AG: assets & liabilities Amer Sports Corporation: revenues & profitability Amer Sports Corporation: assets & liabilities NIKE, Inc.: revenues & profitability NIKE, Inc.: assets & liabilities PUMA AG Rudolf Dassler Sport: revenues & profitability PUMA AG Rudolf Dassler Sport: assets & liabilities Europe sports equipment market value forecast: $ billion, 2009–14 9 10 11 18 18 21 21 26 26 29 30 31
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 5
MARKET OVERVIEW
MARKET OVERVIEW
Market definition
The sports equipment market consists of equipment for ball sports (baseball, softball, basketball, soccer, football, volleyball, cricket, hockey, etc), adventure sports (camping, hunting and firearms, skin diving and scuba, water ski-ing, surfboarding and sailboarding, etc), fitness (exercise bikes, home gym, rowing machine, hand/wrist/ankle weights, treadmill, jump rope, stepper), golf (clubs, bags, balls, gloves, carts, etc), racket sports (tennis, squash, badminton, etc), winter sports (downhill and cross-country ski-ing, snowboarding, etc), and other sports such as archery, billiards, indoor games, bowling, in-line skating, martial arts, wheel sports, pogo sticks, and fishing equipment. Market values are calculated at retail selling price (RSP). Any currency conversions used in the creation of this report have been calculated using constant annual average 2009 exchange rates. For the purposes of this report, Europe consists of Western Europe and Eastern Europe. Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, and the United Kingdom. Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 6
MARKET OVERVIEW
Research highlights
The European sports equipment market had total revenue of $21.1 billion in 2009, representing a compound annual growth rate (CAGR) of 2.2% for the period spanning 2005-2009. Golf equipment sales proved the most lucrative for the European sports equipment market in 2009, with total revenues of $3.9 billion, equivalent to 18.5% of the market's overall value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.2% for the fiveyear period 2009-2014, which is expected to drive the market to a value of $23.4 billion by the end of 2014.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 7
MARKET OVERVIEW
Market analysis
The European sports equipment market has experienced relatively stable growth in recent years. The average growth rate is predicted to remain the same over the next five years. The European sports equipment market had total revenue of $21.1 billion in 2009, representing a compound annual growth rate (CAGR) of 2.2% for the period spanning 2005-2009. In comparison, the German and UK markets grew with CAGRs of 0.8% and 3.8% respectively, over the same period, to reach respective values of $4.7 billion and $3.9 billion in 2009. Golf equipment sales proved the most lucrative for the European sports equipment market in 2009, with total revenues of $3.9 billion, equivalent to 18.5% of the market's overall value. In comparison, sales of adventure sport equipment generated revenues of $3.5 billion in 2009, equating to 16.6% of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.2% for the fiveyear period 2009-2014, which is expected to drive the market to a value of $23.4 billion by the end of 2014. Comparatively, the German and UK markets will grow with CAGRs of 1.3% and 3.6% respectively, over the same period, to reach respective values of $4.9 billion and $4.7 billion in 2014.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 8
MARKET VALUE
MARKET VALUE
The European sports equipment market grew by 1.8% in 2009 to reach a value of $21.1 billion. The compound annual growth rate of the market in the period 2005–09 was 2.2%. Table 1: Year 2005 2006 2007 2008 2009(e) CAGR: 2005–09 Source: Datamonitor Europe sports equipment market value: $ billion, 2005–09(e) $ billion 19.3 19.8 20.2 20.7 21.1 € billion 13.9 14.2 14.5 14.9 15.1 % Growth 2.7 2.1 2.4 1.8 2.2% DATAMONITOR
Figure 1:
Europe sports equipment market value: $ billion, 2005–09(e)
Source: Datamonitor
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 9
MARKET SEGMENTATION I
MARKET SEGMENTATION I
Golf equipment is the largest segment of the sports equipment market in Europe, accounting for 18.5% of the market's total value. The adventure sport equipment segment accounts for a further 16.6% of the market. Table 2: Category Golf equipment Adventure sport equipment Fitness equipment Ball sport equipment Winter sport equipment Racket sport equipment Other Total Source: Datamonitor Europe sports equipment market segmentation I:% share, by value, 2009(e) % Share 18.5% 16.6% 15.4% 15.2% 12.6% 5.9% 15.8% 100% DATAMONITOR
Figure 2:
Europe sports equipment market segmentation I:% share, by value, 2009(e)
Source: Datamonitor
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 10
MARKET SEGMENTATION II
MARKET SEGMENTATION II
Germany accounts for 22.1% of the European sports equipment market value. France accounts for a further 19.9% of the European market. Table 3: Category Germany France United Kingdom Italy Spain Rest of Europe Total Source: Datamonitor Europe sports equipment market segmentation II: % share, by value, 2009(e) % Share 22.1% 19.9% 18.9% 10.5% 6.7% 21.8% 100% DATAMONITOR
Figure 3:
Europe sports equipment market segmentation II: % share, by value, 2009(e)
Source: Datamonitor
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 11
COMPETITIVE LANDSCAPE
COMPETITIVE LANDSCAPE
The sports equipment market will be analyzed taking sports equipment retailers as players. The key buyers will be taken as individual consumers, and sports equipment manufacturers as the key suppliers. The sports equipment market has seen a great deal of forward integration in recent years as sportswear manufacturers such as Adidas and Nike have successfully branched out in to retail. The European market for sports equipment is fragmented despite the presence of some larger players. The wide range of products available, the existence of a large number of retailers and the fact that some large sports equipment companies have integrated forwards into retail all mean that buyer power is prevented from becoming disproportionately strong in this market. The retail of sports equipment offers some economies of scale such as bulk buying, but it is still possible to enter the market on a modest scale by producing, for example, small quantities of custom-made golf clubs, although uninspiring revenue growth in recent years makes entering this market a less attractive prospect for newcomers. Many companies in this market also sell sports apparel and footwear, which reduces their reliance on sales of sports equipment and rivalry, is weakened further by the policy of many large corporations to outsource manufacturing. Typical sports equipment retailers include multiples such as Groupe Go Sport and JJB Sports; numerous independents; club stores; department stores and e-commerce operations. Department stores and hypermarkets are also important as these have the space to stock and display large pieces of equipment such as home gyms. Consumer loyalty is often more towards a particular manufacturer brand, rather than to a retailer, and most retailers will stock multiple brands. This strengthens buyer power, and can leave 'pure' retailers somewhat vulnerable to manufacturers who also operate in the retail market through their own branded stores or online sales. Switching costs are very low for buyers, which strengthens buyer power. Buyer power is assessed as moderate overall. Sports equipment production may be characterized by three related themes: research & development, innovation, and adoption of new materials. Previously distinct boundaries between sportswear and casual wear are becoming increasingly blurred. Although the focus of this report is on sporting equipment and not garments the market’s crossover potential cannot be denied. This leads to the potential for equipment products to be stocked alongside sports garments in populist retail outlets such as super/hypermarkets. Fast-expanding sectors, like snowboard, mountain bike and cycling, are rather atomized, and innovation here is much more on new product and materials. In areas such as these, equipment and lifestyle go hand in hand, given the developing nature of extreme/adrenaline sports the potential for growth cannot be ignored. The ability of manufacturers to differentiate their products in these ways increases their supplier power. The suppliers of some of the materials used to make the equipment, such as rubber and textiles, include small factories and operate in a fragmented up-stream landscape, which also strengthens the bargaining power of the equipment manufacturers relative to their own suppliers. Furthermore, outsourcing is a prominent feature of this market.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 12
COMPETITIVE LANDSCAPE
Large corporations such as Nike often design their products in places like the US and then sub-contract manufacturers in countries like South Korea, India, China and Indonesia for the actual production of the goods. A significant proportion of Adidas products, for example, are produced at outsourced manufacturing locations around the world. The large number of relatively low-cost factory options available to these large corporations combined with the financial muscle of these sports equipment companies considerably strengthens the power held by these suppliers relative to their retail buyers. It is uncommon for sports equipment retailers to integrate backwards into the production of sports equipment, which strengthens supplier power. Forward integration among sports equipment manufacturers into the retail of sports equipment is highly likely as they often open and operate their own retail outlets, as well as direct e-commerce sites. Some sports equipment companies, such as Nike, have integrated forwards into selling directly to the consumer through company-owned retail outlets and a number of smaller companies take advantage of the internet to sell directly to consumers via company websites. Suppliers are not usually solely dependent on one type of sports equipment for their revenues and can often find alternative markets through diversification. Overall, supplier power is strong. Entry to the sports equipment retail market may be achieved by starting up a new company or by diversifying an existing company's operations into the retail of sports equipment. Although some brands of sports equipment are used across more than one sport (e.g. Slazenger, Wilson, Head), a considerable proportion is produced and sold by specialists. As a consequence of this, it is possible to enter this market on a small scale without the need to invest in a large chain of retail outlets. Custom-made sports equipment, such as Balabushka pool cues, is a good example of this. George Balabushka developed, made and sold his own pool cues. Many innovations of his are now industry standard, and the high reputation of his products among end-users is a competitive advantage. However, there is a need for significant logistical arrangements, such as good transport and distribution channels. Although some large, existing sports equipment retailers may be able to move in to new markets and open their own retail outlets, this strategy often proves too costly for smaller retailers or startups. Market revenue growth over recent years has been unexciting, which also makes the market less attractive to new companies. Overall, there is a moderate likelihood of new entrants. Substitutes to sports equipment may include any products purchased for the purpose of enhancing/passing leisure time as generally sport is a recreational activity. This is certainly the point of view of retailers, who deem substitutes for sports equipment to include other leisure products such as books, board games, music, and computer games. The severity of the threat depends on the business model of the retailer, and can be hard to assess. For example, many customers of specialist sports stores will often not consider the alternatives ‘beneficial’, because of their personal preference for playing sport over playing computer games. However, it will be harder for the specialist retailers to generate revenues from those potential customers who actually remain wedded to their consoles.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 13
COMPETITIVE LANDSCAPE
A department store will generally be able to offer both sports equipment and substitutes, safeguarding its revenues against fickle buyers through the diversity of its product lines. However, without detailed knowledge of the mark-up on different leisure products, it is difficult to know how substitute products might impact its profitability. The threat from substitutes is assessed as strong overall. The market for sports equipment retail is fairly fragmented. It is difficult for retailers to differentiate themselves effectively as many stock the same products, which strengthens rivalry. A number of companies in this market also sell sports apparel, footwear and other sports accessories. These products often represent a significant segment of retailers’ revenues, which makes them less reliant on the sports equipment market and also decreases rivalry somewhat. Purchasers have a fairly wide range of products to choose from, with low switching costs. Unexciting market revenue growth in recent years tends further to strengthen rivalry, which is assessed as moderate overall.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 14
LEADING COMPANIES
LEADING COMPANIES
adidas AG
Table 4: adidas AG: key facts Adi Dassler Platz 1 2, 91074 Herzogenaurach DEU 49 9132 840 49 9132 84 2241 www.adidas-group.com December ADS Frankfurt DATAMONITOR
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website
adidas is one of the largest companies in the sporting goods industry. The group has divided its operating activities by major brand into three divisions: adidas, Reebok and TaylorMade-adidas Golf. The group operates through more than 150 subsidiaries in Europe, the US and Asia, each focusing on a particular market or part of the manufacturing process. The adidas brand focuses on sports. It offers footwear, apparel and accessories through two divisions, namely sport performance and sport style. The sport performance division develops sports products, focused on running, football, basketball, tennis and training. The sport style division is focused on fashionconscious consumers and includes collections like the 'Y-3' designed by Yohji Yamamoto, a Japanese fashion designer based in Tokyo and Paris. The focus of the Reebok brand is more on style. It offers sports, fitness and casual footwear, apparel and equipment under the Reebok brand. Rebook operates through two divisions Reebok-CCM Hockey and Rockport. Reebok-CCM Hockey is one of the world's largest designers, manufacturers and marketers of hockey equipment and apparel with two of the world's most recognized hockey brand names: Reebok Hockey and CCM Hockey. Rockport designs and markets dress, casual and outdoor footwear as well as apparel and accessories. The TaylorMade-adidas Golf brand offers a range of golf clubs, accessories, footwear and apparel. It combines three of golf's most well-known brands: TaylorMade, adidas Golf, and Ashworth.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 15
LEADING COMPANIES
Most of the group’s products are manufactured by third party independent manufacturers. During FY2008, to minimize production costs, adidas outsourced over 95% of production to such manufacturers, primarily located in Asia. The group undertakes research and development activities on a global scale. Research and development (R&D) activities within the adidas group are decentralized, with each brand having its own research, design and development operations across several countries. The group markets its products through an extensive distribution channel. As December 2008, the total number of adidas stores was 1,332. The group has 796 concept stores, 381 factory outlets, 150 concession corners and five e-commerce stores worldwide. adidas has concluded several endorsement contracts with several sportsmen and women. Sportsmen under contract include David Beckham (soccer), Kevin Garnett and Tim Duncan (basketball), and Sergio Garcia (golf). It also provides the team kit wear for the French football team and clubs such as Real Madrid, AC Milan, and FC Bayern Munich. Key Metrics The company recorded revenues of $14,435 million in the fiscal year ending December 2009, a decrease of 3.9% compared to fiscal 2008. Its net income was $341 million in fiscal 2009, compared to a net income of $893 million in the preceding year.
Table 5: $ million
adidas AG: key financials ($) 2005 9,227.4 532.6 7,995.4 4,224.4 15,935 2006 14,021.9 671.6 11,651.1 7,707.6 26,376 2007 14,320.9 766.2 11,576.0 7,372.5 31,344 2008 15,016.1 892.7 13,255.7 8,528.0 36,129 2009 14,434.9 340.7 13,253.0 7,328.0 38,982
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 16
LEADING COMPANIES
Table 6: € million
adidas AG: key financials (€) 2005 6,636.0 383.0 5,750.0 3,038.0 2006 10,084.0 483.0 8,379.0 5,543.0 2007 10,299.0 551.0 8,325.0 5,302.0 2008 10,799.0 642.0 9,533.0 6,133.0 2009 10,381.0 245.0 9,531.0 5,270.0
Revenues Net income (loss) Total assets Total liabilities Source: company filings
DATAMONITOR
Table 7: Ratio
adidas AG: key financial ratios 2005 5.8% 13.2% 29.9% 8.5% 52.8% 7.5% $579,067 $33,421 2006 4.8% 52.0% 45.7% 82.5% 66.2% 6.8% $531,616 $25,463 2007 5.4% 2.1% (0.6%) (4.3%) 63.7% 6.6% $456,894 $24,444 2008 5.9% 4.9% 14.5% 15.7% 64.3% 7.2% $415,625 $24,709 2009 2.4% (3.9%) 0.0% (14.1%) 55.3% 2.6% $370,296 $8,739
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 17
LEADING COMPANIES
Figure 4:
adidas AG: revenues & profitability
Source: company filings
DATAMONITOR
Figure 5:
adidas AG: assets & liabilities
Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 18
LEADING COMPANIES
Amer Sports Corporation
Table 8: Amer Sports Corporation: key facts Makelankatu 91, 00610 Helsinki, FIN 358 9 7257 800 358 9 7257 8200 www.amersports.com December AMEAS NASDAQ OMX DATAMONITOR
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website
Amer Sports Corporation (Amer Sports) is a Finland based company that develops, manufactures and sells sports equipment. The company and its subsidiaries operate in over 30 countries and their primary markets are the US and Europe. Amer Sports operates through three business segments: winter and outdoor, ball sports, and fitness. Amer Sports, through its winter and outdoor segment, offers winter sports equipment under the brand names Salomon, Atomic and Bonfire; apparel and footwear under Salomon and Arc'teryx brands; cycling systems under Mavic brand; and sports instruments under Suunto brand. The company offers advanced equipment under the Wilson brand through its ball sports segment. Wilson's core categories include baseball, football, basketball, softball, bats, volleyball, soccer, youth sports, apparel, golf products and footwear. It also offers tennis, racquetball, squash, badminton and platform tennis products under racquet sports category. The fitness segment of Amer Sports offers fitness equipment for commercial and home markets under the brand name Precor. Its main products include aerobic exercise equipment, strength-training systems and entertainment systems. Precor is one the world's leading manufacturers of elliptical cross trainers. In addition, the company manufactures air drive computers under the brand Suunto. Key Metrics The company recorded revenues of $2,132 million in the fiscal year ending December 2009, a decrease of 2.7% compared to fiscal 2008. Its net income was $44 million in fiscal 2009, compared to a net income of $47 million in the preceding year.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 19
LEADING COMPANIES
Table 9: $ million
Amer Sports Corporation: key financials ($) 2005 2,408.4 104.6 2,344.8 1,435.0 6,667 2006 2,492.8 98.0 2,304.8 1,454.5 6,553 2007 2,297.1 25.7 2,286.7 1,578.0 0 2008 2,191.4 47.3 2,310.9 1,604.6 0 2009 2,132.2 43.5 2,120.0 1,101.1 6,338
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 10: € million
Amer Sports Corporation: key financials (€) 2005 1,732.0 75.2 1,686.3 1,032.0 2006 1,792.7 70.5 1,657.5 1,046.0 2007 1,652.0 18.5 1,644.5 1,134.8 2008 1,576.0 34.0 1,661.9 1,154.0 2009 1,533.4 31.3 1,524.6 791.9
Revenues Net income (loss) Total assets Total liabilities Source: company filings
DATAMONITOR
Table 11: Ratio
Amer Sports Corporation: key financial ratios 2005 4.3% 63.6% 103.0% 179.5% 61.2% 6.0% 2006 3.9% 3.5% (1.7%) 1.4% 63.1% 4.2% 2007 1.1% (7.8%) (0.8%) 8.5% 69.0% 1.1% 2008 2.2% (4.6%) 1.1% 1.7% 69.4% 2.1% 2009 2.0% (2.7%) (8.3%) (31.4%) 51.9% 2.0%
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 20
LEADING COMPANIES
Figure 6:
Amer Sports Corporation: revenues & profitability
Source: company filings
DATAMONITOR
Figure 7:
Amer Sports Corporation: assets & liabilities
Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 21
LEADING COMPANIES
NIKE, Inc.
Table 12: Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website NIKE, Inc.: key facts Nike, Inc., One Bowerman Drive, Beaverton, Oregon 97005 6453, USA 1 503 671 6453 1 503 671 6300 www.nike.com May NKE New York DATAMONITOR
Nike is primarily engaged in the design, development and worldwide marketing of footwear, apparel, equipment and accessory products. The company sells its products primarily through its retail stores and various distributors and licensees, in over 180 countries across Americas, Europe, the Middle East, Africa, and Asia-Pacific. Nike's operations are supported by manufacturing, sourcing and distribution facilities. The company procures raw materials including natural and synthetic rubber, plastic compounds, foam cushioning materials, nylon, leather, canvas and polyurethane films to make Air-Sole cushioning components used in footwear from Nike IHM, Nike (Suzhou) Sports Company, wholly owned subsidiaries of Nike and independent contractors located in China and Taiwan. Nike and its contractors and suppliers purchase raw materials for apparel products in the country where they manufacture apparel products for Nike and its subsidiaries. The key raw materials used in apparel are natural and synthetic fabrics, thread, plastic and metal hardware and specialized performance fabrics designed to repel rain and retain heat. The company operates one footwear factory which accounts for around 6% of the company's total footwear production. In addition to manufacturing, the company procures footwear from contract suppliers located in China, Vietnam, Indonesia, and Thailand. Of the total Nike branded footwear the company procured 36% from manufacturers located in China, 33% from Vietnam, 21% from Indonesia and 9% from Thailand. The company also has manufacturing agreements with independent factories in Argentina, Brazil, India, Italy and South Africa which manufacture footwear for the company to be sold in those countries.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 22
LEADING COMPANIES
Nike procures apparel for sale from the US and other international markets from independent contract manufacturers located in 34 countries such as China, Thailand, Indonesia, Malaysia, Vietnam, Turkey, Sri Lanka, Honduras, Mexico, Taiwan, Israel, Cambodia, India and Bangladesh. Its largest single apparel factory accounted for approximately 8% of total 2008 apparel production. Through a futures ordering program the company offers its merchandise to retailers in the US and other international locations. In the US, the company distributes footwear through its distribution centers located in Wilsonville, Oregon and Memphis. Nike distributes apparel and equipment from centers located in Memphis, Tennessee, Tigard, Oregon, and Foothill ranch, California. Nike operates 11 distribution centers in Europe, Asia, Australia, Africa and Canada from which it distributes to its stores in international locations. Nike's operations can be divided into four product lines: footwear, apparel, equipment and other. The company manufactures and sells footwear for specific athletic use such as running, training, basketball and soccer. It also manufactures and sells sports-inspired urban shoes and children's shoes. In addition, the footwear product line comprises shoes for casual and leisure use. The company also sells shoes designed for tennis, golf, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, hiking, outdoor activities and other athletic and recreational activities. The company offers these products for men, women and children. Nike offers sports apparel and accessories for athletic activities such as running, training, basketball, soccer, golf, baseball, football and bicycling. Nike sells sports apparel and accessories for most of the activities for which it offers footwear. Nike's apparel product line comprises sports-inspired lifestyle apparel, athletic bags and other accessory items. The company offers apparel and accessories to complement its athletic footwear products. It also offers footwear, apparel and accessories in collections designed in a similar fashion or for a specific purpose. The company also markets apparel with licensed college and professional team and league logos. Nike sells performance equipment under the Nike brand name, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protective equipment and other sports equipment The company also licenses the production and selling of Nike branded swimwear, cycling apparel, children's clothing, school supplies, eyewear, golf accessories and belts. In addition, Nike sells a wide range of plastic products to other manufacturers through its subsidiary, Nike IHM. The company offers athletic company owned branded footwear, apparel and equipment through 254 retail stores in the US.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 23
LEADING COMPANIES
Of these 121 are Nike factory stores which carry primarily overstock and closeout merchandise, 14 are Nike stores which also house Nike Women stores, 12 are Nike Towns which are designed to shelf Nike branded products and four Nike employee-only stores. Nike offers its products in other countries through Nike-owned retail stores and through a mix of independent distributors and licensees. The company sells its products to over 27,000 retail accounts outside the US, excluding sales by independent distributors and licensees. Outside the US, the company offers its products through 141 Nike factory stores, 46 Nike stores, three NikeTowns and 12 Nike employee-only stores. The company's other product line primarily includes the external sales by its subsidiaries: Cole Haan Holdings, Converse, Hurley International, Nike Golf, and Umbro. Nike's other businesses comprise subsidiaries through which Nike sells apparel, footwear and accessories of brands other than Nike. Nike's wholly owned subsidiaries include Cole Haan Holdings, Converse, Hurley International and Nike IHM. The company sells a line of dress and casual footwear, apparel and accessories for men, women and children under the Cole Haan and Bargano brand names through its subsidiary, Cole Haan Holdings. Converse, a subsidiary of the company, designs and distributes athletic and casual footwear, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, John Varvatos, and Jack Purcell brand names. It also offers footwear under the Hurley brand. Hurley International, a subsidiary of the company designs and distributes a line of action sports apparel for surfing, skateboarding, snowboarding and youth lifestyle apparel and accessories under the Hurley brand. The company also provides athletic and casual footwear, apparel and equipment, primarily for the sport of soccer under the Umbro brands. Nike Golf, a subsidiary of the company, designs and markets golf equipment, apparel, balls, footwear, bags and accessories across several geographies. Further, the company operates four Nike employeeonly stores, 102 Cole Haan stores that house factory and employee stores, 35 Converse stores that house factory and employee stores and seven Hurley stores. Outside the US, the company operates 57 Cole Haan stores. In addition to the physical retail store channel, the company also offers its products across various countries through the websites, nike.com, nikestore.com and nikewomen.com. Key Metrics The company recorded revenues of $19,176 million in the fiscal year ending May 2009, an increase of 2.9% compared to fiscal 2008. Its net income was $1,487 million in fiscal 2009, compared to a net income of $1,883 million in the preceding year.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 24
LEADING COMPANIES
Table 13: $ million
NIKE, Inc.: key financials ($) 2005 13,739.7 1,211.6 8,793.6 3,149.4 26,000 2006 14,954.9 1,392.0 9,869.6 3,584.4 28,000 2007 16,325.9 1,491.5 10,688.3 3,662.9 30,200 2008 18,627.0 1,883.4 12,442.7 4,617.1 30,200 2009 19,176.1 1,486.7 9,103.0 4,147.0 32,500
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 14: Ratio
NIKE, Inc.: key financial ratios 2005 8.8% 12.1% 11.4% 1.3% 35.8% 14.5% $528,450 $46,600 2006 9.3% 8.8% 12.2% 13.8% 36.3% 14.9% $534,104 $49,714 2007 9.1% 9.2% 8.3% 2.2% 34.3% 14.5% $540,593 $49,387 2008 10.1% 14.1% 16.4% 26.1% 37.1% 16.3% $616,788 $62,364 2009 7.8% 2.9% (26.8%) (10.2%) 45.6% 13.8% $590,034 $45,745
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 25
LEADING COMPANIES
Figure 8:
NIKE, Inc.: revenues & profitability
Source: company filings
DATAMONITOR
Figure 9:
NIKE, Inc.: assets & liabilities
Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 26
LEADING COMPANIES
PUMA AG Rudolf Dassler Sport
Table 15: PUMA AG Rudolf Dassler Sport: key facts PUMA Way 1, 91074 Herzogenaurach DEU 49 9132 81 0 49 9132 81 2246 www.puma.com December PUM Frankfurt DATAMONITOR
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website
PUMA AG Rudolf Dassler Sport (PUMA) is a sportswear company whose principal activities include the design, manufacture and distribution of a variety of sporting goods. The company has operations throughout Europe, Asia, America and Africa where it sells PUMA and Tretorn branded footwear, apparel and accessories. Puma operates through three divisions: footwear, apparel, and accessories. The footwear division designs, manufactures and markets a range of shoes for various sports, including football, motorsport, cricket, and golf. The apparel segment produces clothes aimed at sporting activities as well as leisure and casual wear. The company's clothing includes the Shudoh, Nuala, and Platinum brands. Puma has sponsorship deals with teams and individual sportsmen and women to help promote their products. The accessories division sells mainly bags, balls, and sporting accessories. The company conducts its operations and manufactures its products through a number of operations. Sourcing, research and development, strategic planning, supply service, warehousing and logistics, sales, sales service and distribution are controlled from headquarters in Germany. The company also has decentralized core competency centers, with operations in the US responsible for brand marketing and Research & Development, while PUMA's Hong Kong headquarters is responsible for brand marketing and product sourcing in the Asian market. The company's brands include PUMA + Alexander McQueen, Mihara, Rudolf Dassler Schuhfabrik, PUMA - The Black Label and Tretorn.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 27
LEADING COMPANIES
Key Metrics The company recorded revenues of $3,422 million in the fiscal year ending December 2009, a decrease of 2.5% compared to fiscal 2008. Its net income was $178 million in fiscal 2009, compared to a net income of $324 million in the preceding year.
Table 16: $ million
PUMA AG Rudolf Dassler Sport: key financials ($) 2005 3,319.2 397.4 1,836.9 619.6 0 2006 3,831.0 366.0 2,384.4 925.8 0 2007 3,808.3 374.0 2,590.5 984.8 0 2008 3,509.9 323.7 2,640.2 1,003.3 0 2009 3,421.6 178.3 2,800.6 1,076.7 10,069
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 17: € million
PUMA AG Rudolf Dassler Sport: key financials (€) 2005 2,387.0 285.8 1,321.0 445.6 2006 2,755.1 263.2 1,714.8 665.8 2007 2,738.8 269.0 1,863.0 708.2 2008 2,524.2 232.8 1,898.7 721.5 2009 2,460.7 128.2 2,014.1 774.3
Revenues Net income (loss) Total assets Total liabilities Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 28
LEADING COMPANIES
Table 18: Ratio
PUMA AG Rudolf Dassler Sport: key financial ratios 2005 12.0% 18.4% 40.2% 13.6% 33.7% 25.3% 2006 9.6% 15.4% 29.8% 49.4% 38.8% 17.3% 2007 9.8% (0.6%) 8.6% 6.4% 38.0% 15.0% 2008 9.2% (7.8%) 1.9% 1.9% 38.0% 12.4% 2009 5.2% (2.5%) 6.1% 7.3% 38.4% 6.6%
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Source: company filings
DATAMONITOR
Figure 10: PUMA AG Rudolf Dassler Sport: revenues & profitability
Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 29
LEADING COMPANIES
Figure 11: PUMA AG Rudolf Dassler Sport: assets & liabilities
Source: company filings
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 30
MARKET FORECASTS
MARKET FORECASTS
Market value forecast
In 2014, the European sports equipment market is forecast to have a value of $23.4 billion, an increase of 11.2% since 2009. The compound annual growth rate of the market in the period 2009–14 is predicted to be 2.2%. Table 19: Year 2009 2010 2011 2012 2013 2014 CAGR: 2009–14 Source: Datamonitor Europe sports equipment market value forecast: $ billion, 2009–14 $ billion 21.1 21.5 21.9 22.5 22.9 23.4 € billion 15.1 15.5 15.8 16.1 16.5 16.8 % Growth 1.8% 2.1% 2.1% 2.3% 2.1% 2.2% 2.2% DATAMONITOR
Figure 12: Europe sports equipment market value forecast: $ billion, 2009–14
Source: Datamonitor
DATAMONITOR
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 31
APPENDIX
APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: National/Governmental statistics International data (official international sources) National and International trade associations Broker and analyst reports Company Annual Reports Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 32
APPENDIX
Industry associations
World Federation of the Sporting Goods Industry Maison du Sport International (Building C, 3rd floor), Avenue de Rhodanie 54, 1007 Lausanne, Switzerland Tel.: 41 21 612 61 61 Fax: 41 21 612 61 69 http://www.wfsgi.org Federation of the European Sporting Goods Association Rue Belliard 20, 1040 Brussels, Belgium Tel.: 32 2 762 86 48 Fax: 32 2 771 87 46 http://www.fesi-sport.org
Related Datamonitor research
Industry Profile Global Sports Equipment Sports Equipment in Germany Sports Equipment in the United Kingdom
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 33
APPENDIX
Disclaimer
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 34
ABOUT DATAMONITOR
ABOUT DATAMONITOR
The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Combining our industry knowledge and experience, we assist over 6,000 of the world’s leading companies in making better strategic and operational decisions. Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment.
Premium Reports
Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas.
Summary Reports
Our series of company, industry and country profiles complements our premium products, providing top-level information on 30,000 companies, 3,000 industries and 100 countries. While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need - including predictions and forecasts.
Datamonitor consulting
We hope that the data and analysis in this profile will help you make informed and imaginative business decisions. If you have further requirements, Datamonitor’s consulting team may be able to help you. For more information about Datamonitor’s consulting capabilities, please contact us directly at [email protected].
Europe - Sports Equipment
© Datamonitor. This profile is a licensed product and is not to be photocopied
0201 - 0218 - 2009 Page 35
Copyright of Sports Equipment Industry Profile: Europe is the property of Datamonitor Plc and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.
