Introduction

Nowadays, with the developing of our society and the

globalization trend. People are pursuing a higher living standard
such as hobbies or lifestyles not only about the basic living
requirements. One of the most interesting entertainments is the
sports. Sports industry plays a significant role in our daily life. For
instance, In Canada, hockey is the mainstream sport in here On the
other hand, Sportswear industry is also increasing due to the
popularity and prosperity of the sports
Category Analysis
1. Size35
Adidas Group Nike Puma

30 29.1
27.51
24.99
25
Revenue in billion euros

22.75
20.97
19.29
20 18.08
16.74 16.65 16.47 16.92
14.68 14.88 14.49 14.53
15 13.44 13.34
11.99
10.08 10.3 10.8 10.38
10

5 3.17 3.27 2.99 2.97 3.39 3.63

2.76 2.74 2.77 2.61 2.86

0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

This is a graph which shows 3 mainstream sport brands (Nike, Adidas &
Puma). As you can see, the whole market has an increasing trend as a whole.
The total revenue was about 26.2 billion dollars and after 10 years later, the
total revenue is rising up to the 51.96 billion dollars. Almost the double amount
of the three brands revenue in total.
 400

348.51
350
320.79
297.03
300
Market size in billion U.S. dollars

273.27
253.47
250 239.6
213.86 217.82
200
200

150

100

50

0
2009 2010 2011 2012 2013 2014 2015* 2016* 2017*

This graph shows the nike market size in U.S. Within 9 years, the whole sports
market in the world increased about 148.51 billion U.S. dollars from 200 million
in 2009 to the 348.51 million in 2017
2. Growth
Even though in some of the years, the
sportswear sales decrease slightly.
The sportswear sales were about
5.9% in the year 2012 and the
percentages changed to the 6.5% in
the year 2016. While the
womenswear and the accessories
percentages were decreasing during
the few years. On the other hand,
some of the sports footwear sales
may calculate in the footwear sales.
3. Profitability and Life cycle
4. Implication
Online purchase
The statistic shows that the online shop and mail-order sales of sporting
goods from 2003 and to 2015. It illustrates that the percentages of the
online sporting goods account for more than 85.86% of the total sales in
the market from less than 40% in the year 2003 (Statista, 2015)

Collaborate with leisure brands

The second implication is that Sportswear brands are trying to attract
more customers from the leisure brands fans and try to adopt the wearing
culture and tend to become more leisure. For example, Adidas and Nike
are collaborating with some other leisure brands such as Supreme or
Mastermind Japan in order to attract the leisure style trend and add sports
element into the leisure products
Porter’s 5 Forces Analysis
1.New Entrants (Barriers to entry) (high)
Nowadays, the mainstream brands are a few big companies like Nike and
Adidas and Puma. From my research, 47.75% of the market shares are controlled
by the big 2 which is the Nike and Adidas companies.

2. Substitutes (high)
There are many alternative choices to make. EX: Nike, Adidas, Puma, Under
Armour, ASICS etc
3. Rivals (high)
Despite there are only a few barriers to get into the market, but more than 40%
of the market shares are controlled by the Nike and Adidas. Like the report said:
Of course, Nike is not without competition. Adidas is also a marketing
behemoth. Over the decades, Adidas has built a strong association with sport
and elite sportspeople to build an impressive brand franchise. Adidas ranks at
number 71 in the list of the world’s top 100 brands, ahead of Rolex, Audi, and
BP among others.

4. Customers (The power of buyers) (high)

The sportswear market is huge and still increasing. The athletic footwear market is larger
than the active sportswear market. Just-Style.com. (2008) notes that the average person
in North America spends $56.00 on footwear compared to $42.00 on sports apparel,
while the average number of athletic shoes purchased in 2007 is about 1.6 pairs per
person
5. Suppliers (The power of the Suppliers)（low）
The suppliers do not have too many choices on the designing or management
control and the sportswear brands such as the Nike or Adidas all are involved in
the labour abuse cases in China and suppliers cannot change too much even it is
unethical. On the other hand, most benefits are gathered by the company Nike
itself and the manufacturing factories owners.
SWOT
Strength
The advantage of the sportswear is that it provides customers variety of choices.
Customers can choose whatever they want to wear and they can compare different
brands due to the prosperity of the industry. Nowadays, sports are more accessible to
our daily life and the sales are even over the woman wears in total. It plays a
significant role in our daily life. With more advanced sportswear gears, customers can
play sports more safely while using those gears, and they can also have a healthier
body.
Weakness
The weakness of the sportswear industry is that most of the gears can be used for a long
time without replacement. Most of those can only be used for sporting. Some of the gears
are still too expensive for users. Some of the brands such as Nike and Adidas occupied
most of the market shares, but some of the brands such as Asics or Under Armour, they do
not account for a big part of shares. The market competition is still high.
Opportunities

There are some opportunities such as new technologies can be applied to sportswear
gears. New markets like India or China are rising in sports industries as well as the
sportswear gears consumptions. Sports companies can also acquire cheaper resources from
developing countries due to the currency exchanges. Another opportunity is that sports
companies can take advantage of the celebrities’ fame and propagate their products.

Threats

Negative news such as abuse labors in developing countries would be a threat to

sportswear brands and harmful to their reputation. In addition, the high competition makes
the brand loyalty hard to process. With the popularity of the online sales in nowadays, an
increasing number of the fake products are circulated around the industry and online
shopping security might be another potential threat to this marketing.
CONSUMER ANALYSIS
MARKET
 Target Market Segment Strategy AGE PREFERENCES
SEGMENTATION
 Consumer Needs
 Strategy and Implementation Parents 25-35 Durable goods

High school Light weight

16+
Athletes goods

Trending and
College Students 18+ fashionable
goods
 COMPETITIVE ANALYSIS
 COMPETITIVE MEASUREMENTS
 COMPETITIVE EDGE
 SALES STRATEGY
 SALES FORECAST
 PEST ANALYSIS
• Change in laws. Economic
• Effects of changes Factors • In favor or against.
on imports and
exports. • Need towards
• Changes in social works.
customer’s tastes.
• Upgradation in
preferences.
Political Social
Factors Factors
 LIMITATIONS
• QUALITY
• PRICING
RECOMMENDATION
&
CONCLUSION