Sporting Goods Industry

Sporting Goods Industry.
The sporting goods industry (SGI) is among the largest industries around the world. The industry consists of businesses that specifically deal with the retail of new sporting products such as fitness and exercise equipment. Other items include specialty sports footwear, bicycles and bicycle parts, and camping equipment among other goods (Sports Equipment Industry Profile: United States 2015). The SGI face a variety of challenges and opportunity other industries encounter, and increased changes in trends and preferences in the recent years pose a challenge to the business. This paper aims at determining prospects for the SGI both locally and internationally by identifying major problems and opportunities the industry face. Also, this work identifies the SGI segment with greater development opportunity that interested parties including employees and entrepreneurs can venture into for better returns.
The worldwide sporting goods industry is estimated to be worth over $150 billion. The SGI comprises of organizations that manufacture and retail different fitness and exercise products, golfing, fishing, camping, shooting, and winter sports goods (Government of Canada 2013). However, the business has, for the past several years, experienced difficulties that threatened its sustenance and expansion. SGI retails all over the world have recorded slow to moderate growth and reduced sales of athletic footwear, equipment, and apparel. These incidences are due to the variation in consumer tastes and need to purchase such commodities (Government of Canada 2013).

Additionally, the business’s decelerate can be attributed to a noticeable drop in sports participation. In fact, a considerable number of younger generations in Europe and United States prefer engaging in video games rather than participate in physical activities.
This shift in behaviors is consequently the reason behind the change in primary customers for SGI from adolescents to adults. Also, customers’ adjustments in sports activities are a direct cause of modifications in fashion interests. The previously embraced sports-logoed sportswear no longer tops the industry and instead most consumers currently prefer casual styles paving the way for more new market entrants and consequently saturation in the market. Some socio-economic standards impact the SGI market demand. The government of Canada (2013) indicates that because athletic and sporting goods are for leisure and recreation is largely a person’s preference, it, therefore, subjects the market demand to modern trends and shifting tastes. The SGI also is subject to competition against independent businesses offering leisure goods including video games, music, and books. Sports Equipment Industry Profile: United States (2015) suggest that the unavailability of more hindrances to enter the industry is responsible for the existence of numerous companies of varying sizes and different item specialization.
The current SGI companies range from small specialized enterprises to diversified forward-integrated organizations. Nevertheless, it is imperative to note that these companies understand the significance of brand loyalty which maintains their client base as well as ensures their sustained success. For example, corporations such as Nike and Dick’s Sporting Goods Inc. are among the leading companies that continue to thrive despite shifts in product consumptions and flood in the market. Other factors affecting the SGI market demand include weather and economic conditions, demographics and the charges of complementary and substitute products (Sports Equipment Industry Profile: United States 2015). As a result, participants of the industry seek to discover newer and improved strategies to enable them to develop spending from current consumers as well as lure disinterested ones to becoming recurrent buyers.
Based on the challenges and trends the SGI faces currently, it is evident the industry requires some more practical strategies to ensure they remain relevant in the fast moving world with frequent changes in consumer preference. As earlier noted in this work that the majority of existing primary user for sporting goods is adults unlike in the past where it was majorly adolescents, it is evident that there is a target that is not completely exploited. The youth group is a huge market that remains incompletely tapped due to the group’s disinterest in sports or physical activities and instead prefers video gaming among others. Therefore, this industry can design strategies directed at changing youths’ behaviors such that the group becomes more active and sports-oriented ultimately increasing demand for sporting items. Another market opportunity for the SGI involves the incorporation of technology to maximize sales.
It is evident that a majority of SGI retailers are still unable to utilize the internet by creating or massively benefitting from online retail shops. And although most of SGI companies have an online presence, they, however, continue to record few online sales. Technology is a major player in the modern world and therefore, utilizing it to maximize sales can make a significant change in the industry. It is, hence, evident that there exist an opportunity in the SGI online platform, an area that creates employment opportunities for marketers and e-commerce specialists. Also, it creates opportunities for business owners that may choose to have online SGI stores instead of physical ones or both.
In conclusion, the sporting goods industry is a top business dealing with a variety of sporting products including wears and equipment. However, the market recognizes the slow growth due to consumer change in preference and reduced interest in sporting. Several opportunities, nonetheless, exist that can improve the industry’s market involving increased utilization of the internet by making online stores. Also, there is a need to endorse plans that will increase people’s interest in engaging more in physical activities, particularly juveniles.
References
Government of Canada. (2013). Sporting and Athletic Goods. Canada. Retrieved from
https://www.ic.gc.ca/eic/site/026.nsf/eng/h_00078.htmlSports Equipment Industry Profile: United States. (2015). Sports Equipment Industry Profile:
United States, 1-32.