Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Government
Private clubs,
academies,
schools, etc
National
Federation
Retailers
Retailers have to do
International
Federations
Consumers
Product re-orientation
Customisation
Positioning
0
-1
-1
0
-3
0
-1
0
-4
0
-3
1
Bicycles &
related
accessories
4
2
2
Total
sports
World
Americas
Europe
Middle East
and Africa
Asia
Sports
Sports
Sports
footwear apparel equipment
State Subject
Planning Commission
Budget allocation to States
27 State Associations
Manufacturing
Policy in India
100% FDI is allowed in
manufacturing of sports products
Focus is on exports and not on the
domestic market
Fast track clearance by DGFT
Duty exemptions, technology
up-gradation
SEZ
State specific incentives e.g.
Meerut
Drawbacks
Foreign partner should be
original owner of the brand
no distributors or dealers
Only regular product lines of
company granted permission
no experiments
Multi brand companies have to
take separate permission for
each brand most foreign
companies have more than one
brand
No screening of Indian partner,
can be a sleeping partner
100% FDI in whole sale cash and carry : most suitable for
volume business
Direct selling is a part of wholesale trading: Potential route for
sports and fitness goods retailers
Non-store formats like telemarketing
Most foreign retailers enter through exclusive licensing and
distribution agreements e.g. Lotto Sports Italia
Wholly owned subsidiary through setting up manufacturing
e.g. Nike, Reebok, Adidas
Franchising is a common mode to increase retail footprints
Trade
License
VAT
Registration
Number
Permission
from
Amusement
NOC*
Fire
License
Green
Channel:
Kolkata
Municipal
Corporation
Shop and
Establishment
Act
Zoning
regulation
Sourcing
regulations
Sports Retailing
Survey finding:
The market is
expected to grow @
20-25%
Modern retail
Mature and Transitional
Cities
Delhi/NCR, Mumbai, Bangalore, Kolkata,
Hyderabad, Chennai, Pune Ahmedabad
Indore,
Amritsar,
Jalandhar,
Nasik,
Bhubaneshwar, Agra, Coimbatore, Kanpur,
Nagpur, Goa
Nascent will take some time to Jodhpur, Patna, Rajkot, Aurangabad
grow
Corporate Retailers
Traditional Retailers
Factors Affecting
Choice of Brands
120
100
100 89.5
84.4
80
60
53.2
40.4
40
38.6
22.8
20
17.8
6.5
6.76.5
19.3
8.97.8
4.4
10.5
1.3
2.2
4.4
1.8
Factors
Sports Apparel
Sports Goods
Sports Shoes
Fitness Goods
Barriers
Niche segment of retailing: Low level of sports participation
Lack of sports culture focus on education
Sports is not a serious career option
Developing countries, low PPP, affordability
Shortage of infrastructure
Limited government investment: budget outlay for sports is less than 1 per cent of the
total national budget compared to about 13 per cent for a small country like Cuba
Barriers Contd.
Federations
Unprofessional, mostly
Sports losses
registered societies,
popularity
political connections,
limited control over
players
Federations about
retailers
Private
Sports retailers focus sponsors
not
willing
too much on talent
endorsement, not team
or event
Willing to sponsor only
few sports
Shortage of
funds
Difficult to
upgrade and
investment in
training and
development
Poor
performance
of players in
international
events
Barriers in Retail
Key problems of corporate and traditional retailers are same, impact may be
different
Infrastructure parking, electricity, warehousing
High real estate costs
Regulations Shop and Establishment Act
Corporate stringent labour laws; traditional: stringent shop opening timings
Small consumer base, low brand loyalty, limited knowledge about use and
technology
Corporate Retailers /brands: Brand positioning
Lifestyle/casual wear versus sports, luxury versus sports
Counterfeit product
Comparison of Nike Prices in India and the US
Limited brand availability
Price
lack of strong India brand
Rs.
US$
US
Style Name
difference
Lack of integration among
retail
equivalent
retail
(per cent)
export promotion councils,
Air Max 360
manufacturing sector
10,900
254
160
59
2009
Contract manufacturing may
Air Pegasus+26
6,700
156
85
85
loose control of production
Technology intensive product
Citius
4,200
98
72
36
have to be imported, high
Dart VII MSL
3,500
82
55
48
duties
Rayong
3,200
75
42
77
Some
thoughts....
India is :
Losing foreign
exchange
Losing business
opportunity of clubbing
sports retailing with
sponsorship and events
Losing strategic
partnership for
manufacturing and
brand development
Is FDI the only option?
Restrictions
Zoning Restrictions
Nationality
requirement
Stringent Retail
Regulations (Shop
open timings,
Local employment
Requirement
Countries
Japan, China, Italy, France
Austria, Czech Republic, France, Hungary,
Italy, Korea, Netherlands, Malaysia
(Bhumiputra), Oman (51 per cent Omani
shareholding to own show room)
France
Japan, Germany, China
Japan, Korea
Tobacco products Australia, France,
Hungary, Italy, Spain
Pharmaceutical products Austria,
Belgium, Denmark, France, Italy, the
Netherlands, Spain, Sweden, the UK
Sale of Alcohol Finland, Iceland,
Norway, Poland, Sweden, Turkey
France, Japan, Greece, Austria, Germany