Getting the right product to the right place at the right time. Thats the key to success in business – especially in the sporting goods industry. How that will be best accomplished by 2010 is the $64,000 question. Thats one of the dominant themes of SGMA Internationals “Imagining the Future – The U.S. Sporting Goods Industry in 2010 White Paper.”
“Where the future will take us is, to an extent, a very open-ended questions,” said SGMA International President John Riddle. “Nevertheless, as we produced this report, we spoke with such a large cross section of the sports industry, that we are confident that many of our predictions will be accurate.”
Some of the more interesting facts contained in the White Paper are listed below.
- Eight out of ten sporting goods executives expect joint ventures and alliances to be important growth engines for the future.
- Consolidation in the sporting goods industry will continue to be a significant force throughout the first decade of the 21st Century.
- The population growth of children, aged 5-19, will only grow slightly between the years 2005 and 2010, which is the mainstay of the sports-playing, equipment-buying, sports-apparel and athletic footwear-wearing group.
- At retail, there will be an emergence of sporting goods stores keyed to specific sports/lifestyles.
- Power will continue to shift to the retailer from the supplier. The retailer will utilize that strength by demanding more services and concessions from the suppliers.
- The supercenter concept is expected to expand causing manufacturers to cut costs.
- Private labels brands are going to become more prevalent.
- Independent sales agents will be an essential link between small, entrepreneurial vendors and independent specialty dealers.
- Success, for retailers and suppliers, will require continuous improvements in the use of information technology – especially in the area of compiling/utilizing data about customers and their preferences.
- Successful suppliers will have to master all aspects of brand management.
- As private labeling grows in popularity, suppliers must learn that retailers are both their customers and their competition.
- Successful suppliers will be efficient channel managers – providing powerful retailers with exclusive products.
- Sports/fitness companies, government bodies, health care organizations, insurance companies, and community-minded groups will work together to promote physical activity.