UK Sports Clothing & Footwear

UK Sports Clothing & Footwear

Sports clothing and footwear has been an established part of the general apparel market for 20 years. The UK market, worth £4.25bn in 2006 at retail selling prices (rsp), has inevitably shown signs of saturation after such a long period. As a result, between 2002 and 2006, market growth was 4.9%.

A complex relationship between fashion and function characterises the sports clothing and footwear market. Accordingly — although there are lucrative niches for solely functional apparel, particularly for golf, football and other team sports — the market is dominated by multipurpose leisurewear that may never see a playing field (e.g. tracksuits, trainers, shorts and T-shirts). Furthermore, the popularity of keeping fit by joining a gym or jogging has increased demand for multipurpose products. As such, it is very difficult to distinguish specific sectors for fashion and function. Therefore, for the purpose of this Key Note Market Report, the market is split into a sports clothing sector and a sports footwear sector, with each sector being split into subsectors defined by the sport for which the type of clothing/footwear was originally designed. Although the items in these subsectors may not
be used functionally at all, these distinctions are the only ones that can feasibly be made.

Sports clothing was worth £3bn at rsp in 2006 and footwear (predominantly trainers) was worth £1.25bn at rsp in 2006, although, in practice, consumers buy into major brands that produce strong ranges of all types of sports clothing and footwear. Nike Inc is the clear UK and world leader, followed by adidas Group, which now also owns Reebok, another global brand. These two global giants are much larger than the UK's leading competitors, which include Pentland Brands, Umbro and Hi-Tec. The globalised marketing of Nike, adidas, Reebok and other sportswear brands fits in with globalised production. Domestic manufacture of sportswear has withered away in Europe, replaced by imports from the Far East (particularly the People's Republic of China and Vietnam).

Although some sportswear lines have maintained their pricing premiums, such as football-club replica shirts and true `performance' sportswear, discounting has been boosted by the battle for market share between the giant, global brands and also at the retail level. Sports World (the main retail fascia of Sports Direct International PLC), which advertises prices `up to 80% off on leading brands', has grown rapidly and the company was partially floated in February 2007. A Key Note consumer survey — which asked a representative sample of adults where they purchase sports items — identifies this intense competition for retail market share: while 41.6% of respondents had bought a sports item from JJB Sports, the market leader, in 2006, 25.1% had bought from a Sports World outlet. Supermarkets (36.3%) and online traders (27.7%) have added to the competition.

The next 5 years (2007 to 2011) should see marginally better growth for sportswear, with prices solidifying. However, dramatic growth is unlikely, given the `greying' of the UK population. The run-up to the London Olympics in 2012 should renew interest in a wider number of sports, with a knock-on effect on demand for functional sports apparel.

1. Market Definition
REPORT COVERAGE
Development of ‘Sports Leisurewear’
MARKET SECTORS
Sports Clothing
Sports Footwear
Fashion and Function
MARKET TRENDS
Sports Participation
Table 1: Participation in Sport, Exercise and Other Physical Leisure Activities Outside the Home At Least Once a Week by Sex (% of respondents), 2006
Sportswear as Fashion
Branding Trends
Consolidation in Sports Retailing
Globalised Sourcing
ECONOMIC TRENDS
Population
Table 2: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006
Gross Domestic Product
Table 3: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006
Inflation
Table 4: UK Rate of Inflation (%), 2002-2006
Unemployment
Table 5: Actual Number of Unemployed Persons in the UK (million), 2002-2006
Household Disposable Income
Table 6: UK Household Disposable Income Per Capita (£), 2002-2006
MARKET POSITION
The UK
Overseas

2. Market Size
THE TOTAL MARKET
Table 7: The Total UK Market for Sportswear by Sector by Value at Current Prices (£m at rsp), 2002-2006
Figure 1: The Total UK Market for Sportswear by Value at Current Prices (£m at rsp), 2002-2006
Table 8: The Total UK Market for Sportswear by Sector by Value at Constant 2002 Prices (£m at rsp), December 2002-2006
BY MARKET SECTOR
Clothing Versus Footwear
Sectors by Sports Design
Table 9: Regular Participation in Sport (% of adults), 2005 and 2006
Function or Fashion: Sportswear Sectors
Table 10: The UK Market for Sportswear by Main Sports Designs by Value at Current Prices (£m at rsp and %), 2006
Outdoor Pursuits
Fitness Activities
Football
Other Team Sports
Swimming
Golf
Racket Sports
Multisport and Leisurewear
Minority Sports
Accessories
OVERSEAS TRADE AND DOMESTIC PRODUCTION
Table 11: Import and Export Ratios for Wearing Apparel, (% by value), 1996 and 2002-2004
Table 12: UK Production of Selected Sportswear Items by Value (£m), 2002-2004

3. INDUSTRY BACKGROUND
RECENT H_CENTO25
NUMBER OF COMPANIES
EMPLOYMENT
REGIONAL VARIATIONS IN THE MARKETPLACE
DISTRIBUTION
Table 13: Retailer Market Shares for Sportswear (% by value), 2006
HOW ROBUST IS THE MARKET
LEGISLATION
Overseas Trade
Replica Price Fixing
KEY TRADE ASSOCIATIONS
The Sports Manufacturers and Retailers Trade Association

4. Competitor Analysis
THE MARKETPLACE
MARKET LEADERS
Table 14: Selected Leading Suppliers of Sports Clothing and Footwear by Country of Origin and Global Turnover ($m, €m and £m), 2007
Nike Inc
Table 15: Nike Inc Global Sales and Net Income ($m), Years Ending May 1998-2006
adidas Group
Table 16: adidas Group Sales by Division (€m and %), Year Ending December 2006
Other Major Manufacturers
Puma
Pentland Brands PLC
Umbro PLC
Hi-Tec Sports PLC
OTHER COMPANIES
Specialist Sportswear Manufacturers
Table 17: Specialised Suppliers of Sports Clothing and Footwear, 2007
Specialist Sportswear Retailers
Table 18: Selected Leading Multiple Retailers of Sports Goods by Number of Outlets, 2006
Blacks Leisure Group PLC
JJB Sports PLC
JD Sports (The John David Group PLC)
Sports Direct International Ltd
OUTSIDE SUPPLIERS
MARKETING ACTIVITY
Main Media Advertising Expenditure
Table 19: Main Media Advertising Expenditure on Sports Clothing (£000), Year Ending December 2006
Table 20: Main Media Advertising Expenditure on Sports Footwear (£000), Year Ending December 2006
Other Marketing Activity
Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
BUYING BEHAVIOUR
Spending Patterns
Table 21: Amount Spent on Sportswear by Sex, Age and Social Grade (% of adults), 2006
Retailers Used .57
Table 22: Retailers Used to Buy Sports Goods (% of respondents), 2007
Table 23: Specialist Retailers Used to Buy Sports Goods (% of respondents), 2007
Table 24: Non-Specialist Channels Used to Buy Sports Goods (% of respondents), 2007
Consumer A64
Table 25: Attitudes to Sportswear (% of respondents), 2005

7. Current Issues
ADIDAS/REEBOK MERGER
NIKE DEVELOPMENTS
SPORTS DIRECT INTERNATIONAL LTD FLOTATION
OLYMPICS SPONSORSHIPS
OVERSEAS TRADE

8. The Global Market
INTRODUCTION
GLOBAL BRANDS
INFLUENCE OF THE US
THE UK’S INTERNATIONAL ROLE
OTHER COUNTRIES’ INFLUENCES ON THE UK

9. Forecasts
INTRODUCTION
The Economy
Population
Table 26: Forecast UK Resident Population by Sex (000), Mid-Years 2007-2011
Gross Domestic Product
Table 27: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2007-2011
Inflation
Table 28: Forecast UK Rate of Inflation (%), 2007-2011
Unemployment
Table 29: Forecast Actual Number of Unemployed Persons in the UK (million), 2007-2011
FORECASTS 2007 TO 2011
Table 30: The Forecast Total UK Market for Sportswear by Sector by Value at Current Prices (£m at rsp), 2007-2011
Sports Clothing & Footwear Contents
MARKET GROWTH
Figure 2: The Forecast Total UK Market for Sportswear by Sector by Value at Current Prices (£m at rsp), 2007-2011
FUTURE TRENDS
Sports Participation
Specific Sports
Sports Retailing
Manufacturer Market Share
Sports Leisurewear

10. Company Profiles 77
adidas (UK) Ltd
Hi-Tec Sports PLC
Nike (UK) Ltd
Pentland Brands PLC
Umbro PLC

11. Consumer Confidence 88
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
Confidence Improves
Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007
Willingness to Borrow Slips Slightly
Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2006-2007
SPENDING FROM SAVINGS
Slight Increase in Spending from Savings
Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007
Saving Grows in Relative Importance
Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), February 2006-2007

12. Further Sources 96
Associations
General Sources
Government Publications
Bisnode Sources