Sporting Goods Industry 2

Sporting Goods Industry

The sport industry is made up of several various segments which include; sporting goods (retail and manufacturing), professional sports, sports tourism, sports apparel, outdoor sports, recreation, amateur sport activities, college and high school athletics, and sports businesses like sport sponsorship, sport marketing organizations, and sport governing institutions. Careers and jobs in the sports industry are uncountable and range from different businesses and segments. The sports industry is an industry where each individual can be successful by connecting passion for sports with interest in any other career. For example, an individual interested in medicine and sports can be employed as a medical practitioner in football, rugby, cricket among others. The scope, size, and flexibility make it one of the fastest growing industries. An industry refers to a market in which perfect substitutes and complementary goods are sold. While some industries can contain only one product, the Sporting goods industry is made up of a several goods sold to both existing and potential customers who are psychologically and demographically diverse, and who might change in want, need, demand, or desire (The Sports Business Industry, n.d.).
The sporting products industry consists of all products sold as equipment, goods, and apparel for utilization in recreation, health, fitness and sporting activities. The industry can be subdivided into various segments, with different ways of describing these segments; this paper discusses sporting products industry focusing on four major aspects of the industry (The Sports Business Industry, n.

d.). The major topics regarding sporting products industry discussed are; globalization of sporting activities, health, and the level of economic contribution that the sporting goods industry adds to different economies across the world. The topics are important in describing the scope, size, and flexibility of the industry that make it one of the fastest growing industries.
Literature Review
Globalization of Sports
The definition of sports stretches beyond the traditional games involving teams to include individual fitness and sports related like dance activities and aerobics, and also recreational activities like cycling and long walks. Sports extends from informal and casual participation into more serious club sports that are organized. The inclusive and wide description of sports stretches its relevance all over the world and its value as a notable player in the social agenda. The globalization of sports has undoubtedly contributed to positive outcomes in the management of sports leading to sensitization on issues such as multiculturalism, multilingualism, and multidisciplinarity in sports delivery worldwide. However, the controversies affecting amateur and professional sports are spread all over the world. For example, the use of drugs that enhance performance, the cross-border movement of coaches and athletes, the impact of sports on the environment, the utilization of workforce from developing nations for the manufacturing of sport equipment and sportswear, and the commercialization and commodification of sports in the society are some of the major concerns raised regarding globalization of sports (Thibault, 2009).
There are several factors that play a crucial role in the rise of the globalization of sports. They include international capital, pressure from multinational organizations, and right-wing states where trade relations among governments have been liberalized through deregulation. Furthermore, advancement of communication technology has enabled exchange among organizations, individuals, and governments. All these factors have contributed to the changing the world into a ‘global community’ in the social, political, cultural, and economic spheres. The sport has not been singled out of these discussions on the application of economic, political, cultural, and social spheres. For example, it is worth noting that 208 countries are members of FIFA worldwide compared to United Nations (UN) which has 192 member countries. Additionally, the International Olympics Committee (IOC) has a wider scope than the UN. Globalization has the unique ability to bridge cultural, religious, and gender barriers thereby fostering global unity (Thibault, 2009).
Health
In 2012, statistics from US Department of health and human services indicates that at least 35% of adults in the US are affected by obesity. This reported rate of obesity is alarming compared to other nations. Health specialists have linked obesity to various non-communicable diseases including type I diabetes, some forms of cancer, and heart disease. As health specialists work towards finding preventive forms of treatment; it is important for sport and fitness marketers to note the seriousness of health issues and utilize effective advertising tools how participation in sports can play a key role in the battle against lifestyle diseases in America. People are conversant with the notable benefits of living a healthy lifestyle, which includes, strength, proper nutrition, and cardiovascular training. In the sports products industry, a significant number of research on branding is dedicated to the spectator section as compared to the fitness sector (Williams et al., 2014).
Researchers have suggested that the way in which sports consumers draw brand perception may be the same as that of consumers of fitness. Furthermore, a disproportionate number of Americans are not consumers of products and services related to fitness that encourage a healthy lifestyle. For example, statistics indicate that out of all Americans, only 17% are members of health clubs. Nevertheless, 97% of the population indicate that they require the services offered by the health clubs for them to improve and maintain their livelihood. These findings support the idea that brand communication inefficiency may be the main reason why health clubs are unable to attract more people, even though people are in dire need of these services (Williams et al., 2014).
Economic growth
Expenditure on sports apparel consumes a large part of household spending. Worldwide, the increasing rate of sports consumption of directly relates to the increase in expenditure on sporting products. Using heterodox approach, Humphreys and Ruseski, analyzed socio-demographic and characteristics related to the sporting lifestyle based on the underlying expenses by consumers on sport related products. Variables such as expenditure and income were considered in the research. The results of the study indicated that lifestyle of consumers who have a connection with sports, whether an active participant in sports, having friends or partners who are active in sports, and being interested in sports play a key role in identifying the description of expenditure of consumer profiles. Expenditure decision regarding sports apparels is dependent on the lifestyle characteristics related to sports. These characteristics include; the intensity of participation in sporting activities, participation of partners and friends in sports, and the consumer’s attitude towards sporting products. However, the research results concluded that both socio-demographic (level of education, sex, and size of the family) and lifestyle characteristics related to sports significantly explain the variability of the expenditure on sporting goods (Humphreys & Ruseski, 2008).
Research done on the scope of sports products industry in the United States identified two major components of the industry. They include; attending sports events and participation in sports; the gross economic contribution of these two components can be drawn by finding the gross revenue generated by businesses in the sporting products market, supply approach. Furthermore, the economic contribution of the industry can also be computed by summing the total expenses on purchases, a demand approach. In 2005 the revenues the total revenue earned by the sellers of sporting equipment and goods amounted to $ 44.42 billion. The highest contribution came from footwear which was $31.4 billion, equipment totaled to $ 7.5 billion and finally apparel contributed $ 5.5 billion of the gross amount. Data collected by the United States Bureau on revenue sources by companies dealing with sporting products indicated that in 2002; revenues arising from membership and admission in golf courses, skiing facilities, country clubs, fitness, bowling and recreation center amounted to $15.3 billion. The total for supplies in the sporting products industry in America came up with $ 61 billion as the estimate for the scope of sports products market in America (Scheerder, Vos, & Taks, 2011).
Conclusion
The growth of the sporting industry over the past decades has been promoted mainly due to the improvement of information technology which has immensely driven globalization. Furthermore, the economic growth of various economies that thrive from sport, like in Europe countries, globalization have opened more trade opportunities with sporting activities like the English Premier League being watched across all continents. However, the sporting industry goods industry may have developed, but the full productive potential has not yet been reached. Issues like health present the unexplored business opportunities that sporting investors can venture into and contribute towards the development of sporting goods and services. The discussed topics on the globalization of sporting products industry, health, and economic impact of sporting industries explain the scope, size and flexibility of the industries describing just how much has been explored, how far can the industry grow, and the available unexploited opportunities like health. Sporting products industry is a very important aspect of sporting activities and can still grow to greater limits and provide more employment opportunities.
References
Humphreys, B. & Ruseski, J. (2008). The Size and Scope of the Sports Industry in the United States (1st ed.). Retrieved from https://web.holycross.edu/RePEc/spe/HumphreysRuseski_SportsIndustry.pdf
Scheerder, J., Vos, S., & Taks, M. (2011). Expenditures on Sports Apparel: Creating Consumer Profiles through Interval Regression Modelling (1st ed.). Retrieved from http://scholar.uwindsor.ca/cgi/viewcontent.cgi?article=1029&context=humankineticspub
The Sports Business Industry (1st ed.). Retrieved from http://www.bellerophonproductions.com/FOSM.pdf
Thibault, L. (2009). Globalization of Sport: An Inconvenient Truth. Retrieved 21 November 2016, from http://nassm.org/sites/default/files/zeigler/JSM23(1)2009Thibault.pdf
Williams, A., Vickey, T., Kim, D., Choi, W., Wright, B., & Rhenwrick, I. (2014). Building Viable Fitness Brands: Importance of Brand Communication Strategies in Attracting Potential Health Club Members (1st ed.). Retrieved from http://www.ijsmart.eu/onlinepic/vol15_d_Williams.pdf