Source: asga.com.au
Source: asga.com.au
Source: asga.com.au
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Sporting Goods in Australia:<br />
An Industry Snapshot March 2012
ASGA Industry Research.<br />
A snapshot of the sporting goods industry in Australia.<br />
ASGA | Industry Snapshot Research 2
3<br />
Foreword!<br />
The Australian Sporting Goods industry currently faces a <strong>com</strong>plex but exciting set of operating<br />
conditions: a tentatively improving global economy, a historically high dollar, rapid changes in<br />
consumers’ online and offline buying habits and evidence of evolving attitudes and preferences<br />
towards sporting apparel and footwear.<br />
These factors represent strategic challenges but also powerful opportunities for the industry. To<br />
assist members in making the very best decisions, ASGA partnered with Empirica Research to<br />
create this industry report. The chief goal: To create an actionable roadmap for navigating the<br />
current economic/industry conditions and for remaining ahead of the curve in addressing shifts in<br />
the Australian consumer’s needs and preferences.<br />
We invite you to explore the report and hope the findings help to inform your decision making in<br />
the year ahead.<br />
David Neal, Ph.D Brad Kitschke<br />
Anna Coster, M.A. Executive Director<br />
Cassie Govan, Ph.D Australian Sporting Goods Association<br />
Empirica Research <strong>asga</strong>.<strong>com</strong>.<strong>au</strong><br />
empiricaresearch.<strong>com</strong>.<strong>au</strong>
4<br />
<strong>Source</strong>s of data and structure of the report!<br />
The research for this report was conducted between January and March 2012, using two <strong>com</strong>plementary<br />
research methods.<br />
The first was “primary research,” which included the analysis of data from two surveys: The quarterly<br />
ASGA industry member survey and a survey of Australian consumer behaviour and attitudes in the<br />
sporting goods space (survey conducted by Empirica Research, February-March 2012).<br />
We also conducted “secondary research,” which involved a <strong>com</strong>prehensive literature review of existing<br />
government (e.g., ABS) data, recent industry reports, and academic publications.<br />
1. Primary research...<br />
• ASGA industry member survey (quarterly)<br />
• ASGA consumer survey of 1000 Australians, conducted by Empirica<br />
Research (Feb-Mar 2012)<br />
2. Secondary research (i.e., literature review)...<br />
• ABS and other Government Data<br />
• Other industry reports<br />
• Academic literature
5<br />
<strong>Source</strong>s of data and structure of the report<br />
These primary and secondary methods were used to generate data on four key content areas, shown in<br />
the figure below. These content areas make up the four main sections of the report.<br />
1. Macro economic<br />
data<br />
2. Industry sales data<br />
3. Consumer<br />
attitudes and buying<br />
behavior<br />
4. Trends in sports<br />
and exercise<br />
participation<br />
• Secondary: Government data and<br />
industry reports<br />
• Primary: ASGA member survey<br />
• Secondary: Government data<br />
• Primary: ASGA/Empirica consumer<br />
survey<br />
• Secondary research: Industry reports<br />
• Primary: ASGA/Empirica consumer<br />
survey<br />
• Secondary research
6<br />
Report contents!<br />
Section Subsection Page<br />
Macroeconomic conditions 7<br />
Executive summary 8<br />
Global GDP Forecasts 9<br />
Australian dollar 10<br />
Consumer sentiment 11<br />
Business sentiment 12<br />
Labour market 13<br />
Industry metrics 14<br />
ABS data: Sporting equipment 15<br />
Retail sales data 17<br />
Wholesale data 18<br />
Footwear drill down 19<br />
Compression drill down 20<br />
Gold drill down 21<br />
Consumer attitudes and buying behaviour 25<br />
Main exercise segments and brand metrics 27<br />
Purchase destinations and motivations 31<br />
From the track to the streets 43<br />
Consumers and counterfeit sporting goods 49<br />
Trends in Australian sports participation 55<br />
Trends in sport and exercise 56<br />
Concluding remarks 60<br />
About Empirica Research 62
!<br />
Macroeconomic conditions<br />
An overview of key macroeconomic factors impacting the sporting goods industry.<br />
ASGA | Industry Snapshot Research 7
8<br />
Macroeconomic conditions<br />
Executive summary<br />
• Most domestic and global indicators point to a continued, albeit tentative, global recovery<br />
marked by growth rates slightly below historical trend lines.<br />
• Consensus estimates for the AUD suggest it will to continue trade at or above parity with the<br />
USD through 2012.<br />
• Consumer sentiment in Australia, although having made up ground in recent months, sits<br />
close to its historical average of 100.<br />
• Similarly, business sentiment sits close to its historical average. This applies to measures of<br />
(a) business confidence, (b) business conditions, and (c) capacity utilisation.<br />
• Labor market conditions remain “steady,” but Westpac predicts unemployment will rise to<br />
5.75% from current levels (5.2%) over the next 3-6 months.<br />
• Employment in retail trade declined by 20,000 in 2011.<br />
• Predicted growth in the Australian retail sector through 2015 ranges from 4.5% p.a. (Morgan<br />
Stanley) to 3.0% (National Retail Association).
9<br />
Macroeconomic conditions<br />
Global conditions<br />
Consensus forecasts from the IMF, Westpac and NAB point to a tentative recovery in global economic<br />
conditions. The latest GDP forecasts through 2013 for Australia and other key economies are presented<br />
below.<br />
Real GDP %<br />
ann<br />
2007 2008 2009 2010 2011e 2012f 2013f<br />
United States 1.9 -0.3 -3.5 3.0 1.7 1.7 2.1<br />
China 14.2 9.6 9.2 10.3 9.3 7.8 8.7<br />
Japan 2.1 -1.7 -5.7 4.7 -0.8 1.6 2.0<br />
India 10.0 6.2 6.8 10.1 7.0 6.0 8.1<br />
Other East<br />
Asia<br />
6.1 3.2 0.4 7.7 4.3 1.9 4.8<br />
Europe 2.8 0.3 -4.2 1.8 1.5 -1.0 0.3<br />
Australia 4.7 2.5 1.4 2.6 2.0 3.0 3.5<br />
New Zealand 2.8 -0.1 -2.0 1.6 1.6 2.8 3.8<br />
World 5.4 2.8 -0.7 5.1 3.9 2.8 4.0<br />
<strong>Source</strong>: International Monetary Fund and Westpac Economics
10<br />
Macroeconomic conditions<br />
The Australian dollar!<br />
As global growth conditions have improved, the Australian dollar has risen sharply. The<br />
figures below show the AUD’s performance against the Yen, USD, Euro and New Zealand<br />
dollar.<br />
The latest forecasts from Westpac Economics as at February 2012 are that “the Australian<br />
dollar and <strong>com</strong>modity prices are set to fall through to the third quarter of 2012 prior to a<br />
‘recovery’ in the second half.” Their specific 2012 predictions for the AUD are:<br />
Mid 2012 AUD<br />
forecast<br />
End of 2012 AUD<br />
forecast<br />
<strong>Source</strong>: Westpac Economics<br />
• = parity with the USD<br />
• = 1.06 (USD)
11<br />
Macroeconomic conditions<br />
Australian consumer sentiment!<br />
Consumer sentiment in Australia currently rests very close to its long term average level of<br />
100.<br />
<strong>Source</strong>: Melbourne Institute and Westpac Economics<br />
Click here for the latest consumer sentiment data.<br />
Note:<br />
Australian Consumer Sentiment-<br />
Average since 1980 = 100
12<br />
Macroeconomic conditions<br />
Australian business sentiment<br />
<strong>Source</strong>: The NAB Business Survey<br />
• Business conditions measure: Survey<br />
data integrating 3 key variables:<br />
profitability, employment and trading<br />
conditions. Zero point represents<br />
average since 1989.<br />
• Business confidence measure:<br />
“Excluding normal seasonal changes,<br />
how do you expect the business<br />
conditions facing your industry in the<br />
next month to change?” Zero point<br />
represents average since 1989.<br />
• Capacity utilisation measure: 100<br />
percent Utilisation represents<br />
“maximum desirable level of output<br />
given existing capital equipment”.
13<br />
Macroeconomic conditions<br />
Employment<br />
• As of the February 2012 jobs report, unemployment sat at 5.2%. Factoring in lower<br />
participation rates and lower population growth, this figure implies that there has been<br />
no job growth in Australia since the beginning of 2011.<br />
• As a percentage of total employment, the retail and wholesale trade industry remains<br />
close to its average for the last 5 years, accounting for 14.5% of all employment (see<br />
lower left panel).<br />
• However, retail trade lost almost 20,000 jobs in 2011, second only to Agriculture/<br />
forestry/fishing and manufacturing (see lower right panel).<br />
Share of total employment by industry Employment growth in 2011 by industry<br />
<strong>Source</strong>s: ABS, NAB and Westpac Economics<br />
000’s of jobs gained/<br />
lost
!<br />
State of the Industry.<br />
An overview of the Sporting Goods and Apparel industry.<br />
ASGA | Industry Snapshot Research 14
15<br />
ABS data on the Australian sporting goods market<br />
ABS data allow modelling of the sports equipment market, but not apparel and footwear!<br />
• Australian government data (e.g., retail and wholesale trade statistics) typically provide limited<br />
insight for the sporting goods industry. This is bec<strong>au</strong>se the ABS generally does not break out<br />
sporting apparel/footwear from other apparel and footwear categories. However, the Australian<br />
Household Expenditure Survey, conducted every 5 years, provides detailed statistics on sporting<br />
equipment purchases made by Australian households.<br />
• The figure below shows $ spent each year by the average Australian household across sporting<br />
equipment categories for the two most recent periods available (2003/2004 and 2009/2010).<br />
• Across this period, the annual value of the equipment increased by 15%. However, we note that CPI<br />
increased by 19% over this period, indicating an overall decline in the market. This decline may partly<br />
reflect temporary effects of the GFC on discretionary spending.<br />
2003/2004<br />
896 M. p.a.<br />
2009/2010<br />
1.032B p.a. (! 15%)<br />
(note: CPI rose 19%<br />
over this period)
16<br />
Sporting goods industry sales data<br />
The ASGA Industry Member Survey<br />
Highly detailed sales data are available in reports based on ASGA’s quarterly industry member survey.<br />
Members provide detailed information on units and total sales revenues for specific categories of<br />
sports apparel, footwear, and equipment and accessories.<br />
Market analyses based on these data are available to ASGA members on a subscription basis. For more<br />
information about the available data sets, please click here or visit:<br />
http://www.<strong>asga</strong>.<strong>com</strong>.<strong>au</strong>/sample-market-intelligence-surveys<br />
In this section, we provide a top line analysis of key trends from these reports.<br />
Specifically, we present:<br />
1. Quarterly retail sales data: Footwear and apparel<br />
2. Quarterly wholesale data by unit type<br />
3. Footwear drill down<br />
4. Compression drill down<br />
5. Golf drill down
17<br />
ASGA quarterly retail sales trends:<br />
Footwear and apparel<br />
!"##"$%&'<br />
$!!"!!#<br />
($!"!!#<br />
(!!"!!#<br />
'$!"!!#<br />
'!!"!!#<br />
&$!"!!#<br />
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%!!"!!#<br />
$!"!!#<br />
!"!!#<br />
""#$%&!<br />
-,))!<br />
-(&,!<br />
"'($')!<br />
-,)+!<br />
-(+'!<br />
<strong>Source</strong>: ASGA/10 Thousand Feet<br />
"*+$))!<br />
-,(%!<br />
-(&)!<br />
"(+$,*!<br />
-,&&!<br />
-#()!<br />
"(&$&)!<br />
-,)+!<br />
-#'+!<br />
Footwear Sales<br />
Apparel Sales<br />
Total Sales<br />
2 per. Mov. Avg. (Total Sales)<br />
""#$,,!<br />
-,)#!<br />
-(%%!<br />
"*#$+&!<br />
-,(%!<br />
-(&(!<br />
,+,$#&!<br />
-,%(!<br />
-(*#!<br />
"%%$''!<br />
-,)"!<br />
-#*'!
18<br />
ASGA quarterly wholesale trends:<br />
Cut Sporting by unit type and goods $ sold/units industry sold<br />
sales data<br />
$ sold<br />
$ units<br />
/!"!#*#+,-#<br />
.!"!#*#+,-#<br />
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$"!#+,-#<br />
("!#+,-#<br />
'"!#+,-#<br />
&"!#+,-#<br />
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!#<br />
Lifestyle Fashion Non Licensed Branded Licensed Accessories<br />
(($#+!-!./0!<br />
)&$'(!-!./0!<br />
,#$&&!-!./0!<br />
,+$#*!-!./0!<br />
,$&#!./0!<br />
#$,(!./0!<br />
#(#$#%1!<br />
"$(&!./0!<br />
(($+,!-!./0!<br />
%,$"#!-!./0!<br />
(($,,!-!./0!<br />
,$(%!./0!<br />
($&,!./0!<br />
,#$)(!-!./0!<br />
)%+$")1!<br />
"$',!./0!<br />
"%$,%!-!./0!<br />
++$,'!-!./0!<br />
,&$+&!-!./0!<br />
,($+#!-!./0!<br />
,$)(!./0!<br />
#$#*!./0!<br />
"%$,(!-!./0!<br />
++$",!-!./0!<br />
"+$(&!-!./0!<br />
,,$)"!-!./0!<br />
(&$%'!-!./0!<br />
*$,(!-!./0!<br />
)$#(!-!./0!<br />
Lifestyle Fashion Core apparel includes: Track suits, separate pants, jackets, T-Shirts, singlets/tanks, sweat tops and shorts. Non-licensed<br />
brand core apparel includes: Track suits, separate pants, jackets, T-Shirts, singlets/tanks, sweat tops and shorts. Licensed Core apparel<br />
includes: AFL - jumpers & guernseys, NRL - jumpers & guernseys, ARU - jumpers & guernseys, Soccer, NBA and Cricket Australia<br />
Accessories Core apparel includes: Bags, caps and socks<br />
*)+$(,1!<br />
"$"'!./0!<br />
,$,&!./0!<br />
($)+!./0!<br />
,,$)(!-!./0!<br />
*+"$),1!<br />
,$))!./0!<br />
*&*$('1!<br />
,$&&!./0!<br />
,'&$#&1!<br />
,$'!./0!<br />
Note: Data from July 2011<br />
reported quarterly; data<br />
prior to July 2011<br />
reported half-yearly<br />
,)$,)!-!./0!<br />
(+$&)!-!./0!<br />
,$,+!./0!<br />
"$(,!./0!<br />
($&)!-!./0!<br />
+$+%!-!./0!<br />
,,&$%,1!<br />
,$,%!./0!<br />
<strong>Source</strong>: ASGA/10<br />
THOUSAND FEET<br />
<strong>Source</strong>: ASGA/10<br />
THOUSAND FEET
19<br />
ASGA quarterly footwear drill down:<br />
Sales cut by footwear category<br />
Highlighted Footwear Findings (ASGA/ 10 Thousand Feet)<br />
• After decreasing for 3 consecutive quarters (-6% in Jul – Sep 2011 <strong>com</strong>pared to Apr – Jun 201, -7% in Apr – Jun 2011<br />
<strong>com</strong>pared to Jan - Mar 2011, -3% Jan – Mar 2011 <strong>com</strong>pared to Oct – Dec 2010), footwear sales went up 20% in Oct – Dec<br />
2011 <strong>com</strong>pared to Jul – Sep 2011.<br />
• Average selling price was higher in Oct – Dec 2011 than one year before ($49.05 in Oct – Dec 2011 <strong>com</strong>pared to $47.04 in<br />
Oct – Dec 2010).<br />
70.0 $ MIL FY 2010/11 Q3 Jan - Mar FY 2010/11 Q4 Apr - Jun<br />
60.0 $ MIL<br />
50.0 $ MIL<br />
40.0 $ MIL<br />
30.0 $ MIL<br />
20.0 $ MIL<br />
10.0 $ MIL<br />
0<br />
Cross<br />
Training<br />
Running Basketb<br />
all<br />
FY 2011/12 Q1 Jul - Sep FY 2011/12 Q2 Oct - Dec<br />
Court -<br />
Indoor<br />
Court -<br />
Outdoor<br />
Football<br />
-<br />
Moulde<br />
d Sole<br />
Football<br />
- Screw<br />
in Sole<br />
Turf<br />
Shoes<br />
Netball Cleated Ath/<br />
Leisure<br />
Walking Outdoor<br />
FY 2010/11 Q3 Jan - Mar $13,453, $49,062, $2,228,8 $53,256 $1,230,1 $20,886, $278,371 $787,601 $3,372,8 $5,577 $22,714, $2,614,8 $649,068 $134,070 $490,927<br />
FY 2010/11 Q4 Apr - Jun $15,250, $58,551, $2,201,4 $39,341 $664,165 $2,323,0 $54,478 $191,518 $704,012 $12,692 $25,828, $2,299,4 $519,762 $507,639 $258,728<br />
FY 2011/12 Q1 Jul - Sep $12,411, $45,681, $2,557,0 $87,320 $1,461,4 $4,009,4 $20,725 $557,239 $864,441 $62,877 $27,158, $1,711,1 $3,042,8 $994,199 $2,043,2<br />
FY 2011/12 Q2 Oct - Dec $13,431, $59,104, $3,163,1 $79,252 $1,739,8 $12,332, $59,128 $259,747 $1,639,8 $7,106 $26,721, $1,708,0 $1,377,5 $266,792 $1,034,9<br />
Track<br />
and<br />
Field<br />
Sandals
20<br />
ASGA quarterly <strong>com</strong>pression wear drill down<br />
Cut by gender and adult/child<br />
$ sold<br />
$ units<br />
3.0 $ MIL<br />
2.50 $ MIL<br />
2.0 $ MIL<br />
1.50 $ MIL<br />
1.0 $ MIL<br />
500.0K<br />
Thousands<br />
0<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
2.41 $ MIL<br />
108<br />
860.93K<br />
202.36K<br />
34<br />
10.93K<br />
1.07 $ MIL<br />
50<br />
Men ($) Women ($) Children ($)<br />
737.93K<br />
28<br />
24.24K<br />
382.81K<br />
38<br />
747.01K<br />
25<br />
621.40K<br />
13<br />
159.34K<br />
59<br />
945.80K<br />
673.76K<br />
27<br />
12.84K<br />
Note: Jul-Sep 2011 and Oct - Dec 2011 figures in the report are raw data<br />
provided by members and do not include uplift.<br />
250.76K<br />
35<br />
716.59K<br />
27<br />
634.38K<br />
0<br />
Note: Data from July 2011<br />
reported quarterly; data<br />
prior to July 2011<br />
reported half-yearly<br />
64<br />
1.02 $ MIL<br />
24<br />
557.66K<br />
0<br />
<strong>Source</strong>: ASGA/10<br />
THOUSAND FEET<br />
<strong>Source</strong>: ASGA/10<br />
THOUSAND FEET
21<br />
ASGA annual golf drill down (figure 1 of 3)<br />
Cut by product category<br />
Highlighted Golf Findings (ASGA/ 10 Thousand Feet)<br />
• In 2011 golf apparel sales increased 5% <strong>com</strong>pared to 2010. Non-licensed branded products increased (+8.8%) while<br />
accessories dropped (-9.8%).<br />
• In 2011 shoes kept decreasing (-4% <strong>com</strong>pared to 2010) after an -11% drop in 2010 <strong>com</strong>pared to 2009. This 2011 drop was<br />
driven by a decrease in sales of shoes costing $90 or more (-39% <strong>com</strong>pared to 2010) while shoes under $90 sales went<br />
up 16% <strong>com</strong>pared to 2010.<br />
• Graphite Individual golf clubs remain relatively stable <strong>com</strong>pared to 2010, while Steel golf clubs sales are behind in 2011<br />
<strong>com</strong>pared to 2010 (-2%).<br />
• Golf bags dropped 11% in 2011 <strong>com</strong>pared to 2010 while gloves went down 9% <strong>com</strong>pared to 2010.<br />
0!"!#*#+,-#<br />
$!"!#*#+,-#<br />
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!#<br />
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23456!;?=@=?A56!B36C!D6A:;!E857?=@=?A56!B36C!D6A:;!F4996!<br />
+$,%!-!./0!<br />
(*$)(!-!./0!<br />
,#$",!-!./0!<br />
*"$')!-!./0!<br />
"&$'(!-!./0!<br />
+$&#!-!./0!<br />
(,$)%!-!./0!<br />
,($'(!-!./0!<br />
#*$&*!-!./0!<br />
"+$%%!-!./0!<br />
,'$,)!-!./0!<br />
(#$",!-!./0!<br />
,#$,"!-!./0!<br />
#'$(#!-!./0!<br />
"#$#"!-!./0!<br />
,'$,+!-!./0!<br />
('$#'!-!./0!<br />
,"$*"!-!./0!<br />
(+$(#!-!./0!<br />
")$'#!-!./0!<br />
,'$)%!-!./0!<br />
"*$*'!-!./0!<br />
,"$'(!-!./0!<br />
(+$")!-!./0!<br />
"*$*+!-!./0!<br />
<strong>Source</strong>: ASGA/10<br />
THOUSAND FEET
22<br />
ASGA annual golf drill down (figure 2 of 3)<br />
Cut by product category<br />
Highlighted Findings (ASGA/ 10 Thousand Feet)<br />
• Golf bags dropped 11% in 2011 <strong>com</strong>pared to 2010 while gloves went down 9% <strong>com</strong>pared to 2010.<br />
1"!#*#+,-#<br />
."!#*#+,-#<br />
0"!#*#+,-#<br />
$"!#*#+,-#<br />
("!#*#+,-#<br />
'"!#*#+,-#<br />
&"!#*#+,-#<br />
%"!#*#+,-#<br />
!#<br />
23456!B63@9;! 23456!:ABB=9;!F9549?! 23456!:ABB=9;!G36657;=:69!<br />
23456!:5B;!G588HIF45>?! 23456!:5B;!F45J! 23456!:5B;!G584!<br />
)$""!-!./0!<br />
,$)&!-!./0!<br />
"$"(!-!./0!<br />
"$*)!-!./0!<br />
,$,&!-!./0!<br />
*$"*!-!./0!<br />
*$&#!-!./0!<br />
,$*&!-!./0!<br />
,$('!-!./0!<br />
,$&,!-!./0!<br />
&""$&(-!1!<br />
#$&+!-!./0!<br />
+$'"!-!./0!<br />
,$,(!-!./0!<br />
,$'!-!./0!<br />
"$',!-!./0!<br />
,$,'!-!./0!<br />
*$&'!-!./0!<br />
)$#(!-!./0!<br />
+)*$'+-!1!<br />
+"($"&-!1!<br />
"$,)!-!./0!<br />
+(($+&-!1!<br />
*$#&!-!./0!<br />
*$%#!-!./0!<br />
+(($&%-!1!<br />
,$",!-!./0!<br />
,$&&!-!./0!<br />
%"'$%)-!1!<br />
#$+'!-!./0!<br />
<strong>Source</strong>: ASGA/10<br />
THOUSAND FEET
23<br />
ASGA annual golf drill down (figure 3 of 3)<br />
Cut by product category<br />
1"!#*#+,-#<br />
."!#*#+,-#<br />
0"!#*#+,-#<br />
$"!#*#+,-#<br />
("!#*#+,-#<br />
'"!#*#+,-#<br />
&"!#*#+,-#<br />
%"!#*#+,-#<br />
!#<br />
23456!;94;!E857
!<br />
Consumer attitudes and behavior in the<br />
sporting goods and attire space<br />
ASGA | Industry Snapshot Research 24
25<br />
The ASGA Sporting Goods Consumer Survey<br />
Overview of the survey<br />
The ASGA Consumer survey was designed and conducted by Empirica Research in February and March<br />
2012. The study was a nationally representative survey of 1000 Australians, oversampling people who<br />
exercise or play sport once or more often each week. Thus, the survey findings closely map onto the<br />
“average Australian sporting goods consumer.”<br />
The survey was designed to address the following core content areas:<br />
1. Core exercise segments: Australians’ main forms of exercise cut by age and gender; brand awareness,<br />
ownership, and loyalty metrics.<br />
2. What, where and why are people buying? Major purchase destinations and motivations.<br />
3. How are Australians attitudes towards sportswear evolving?<br />
4. Counterfeit sporting goods in Australia: Will Australians buy in?
26<br />
The ASGA Sporting Goods Consumer Survey<br />
Sample and Methodology<br />
• The sample was nationally representative across gender and state/territory. Exercisers were<br />
oversampled (90% of the sample exercised once per week or more).<br />
• The survey was conducted in February and March 2012.<br />
• The total sample size was 1000.<br />
GENDER %<br />
Male<br />
Female<br />
50<br />
50<br />
AGE %<br />
18-24<br />
25-34<br />
35-44<br />
45-54<br />
55 or older<br />
23<br />
22<br />
21<br />
18<br />
17<br />
STATE %<br />
NSW 33<br />
VIC 26<br />
QLD 20<br />
WA 8<br />
ACT 1<br />
TAS 2<br />
NT 1<br />
SA 8
Part 1: The lay of the land<br />
!<br />
Segmentation analysis of Australians’ “main form of exercise” and core metrics of<br />
brand awareness, ownership and loyalty.<br />
ASGA | Industry Snapshot Research 27
28<br />
Segmentation analysis: Australians’ main form of exercise<br />
Top 10 forms of exercise cut by gender and age<br />
What is your main form of exercise?<br />
18-24 Years 25-34 Years 35-44Years
29<br />
Segmentation analysis: Australians’ main form of exercise<br />
Top 10 forms of exercise cut by gender and age<br />
What is your main form of exercise?<br />
45-54 Years 55+ Years
30<br />
Brand awareness, ownership and loyalty metrics<br />
Which brands have you heard of? Which brands do you currently own? Which brand is your favourite?<br />
2XU<br />
Adidas<br />
Asics<br />
Black Diamond<br />
Bonds<br />
Brook<br />
BSc<br />
Everlast<br />
Fila<br />
Icebreaker<br />
Katmandu<br />
KSwiss<br />
Lonsdale<br />
Lorna Jane<br />
Lululemon<br />
Merrell<br />
Mountain Designs<br />
Mountain HardWear<br />
New Balance<br />
Nike<br />
North Face<br />
Outdoor Performance<br />
Patagonia<br />
Performax<br />
Puma<br />
Reebok<br />
Running Bare<br />
Russell Athletic<br />
S<strong>au</strong>cony<br />
Skins<br />
Snow Gum<br />
Speedo<br />
Supre<br />
Target<br />
Under Armour<br />
Vibram<br />
0% 25.00% 50.00% 75.00% 100.00%<br />
2XU<br />
Adidas<br />
Asics<br />
Black Diamond<br />
Bonds<br />
Brooks<br />
Everlast<br />
Fila<br />
Icebreaker<br />
Katmandu<br />
KSwiss<br />
Lonsdale<br />
Lorna Jane<br />
Lululemon<br />
Merrell<br />
Mountain Designs<br />
New Balance<br />
Nike<br />
North Face<br />
Outdoor Performance<br />
Performax<br />
Puma<br />
Reebok<br />
Running Bare<br />
Russell Athletic<br />
S<strong>au</strong>cony<br />
Skins<br />
Snow Gum<br />
Speedo<br />
Supre<br />
Target<br />
Under Armour<br />
Vibram<br />
0% 25.00% 50.00% 75.00% 100.00%<br />
2XU<br />
Adidas<br />
Asics<br />
Black Diamond<br />
Bonds<br />
Brooks<br />
Everlast<br />
Fila<br />
Icebreaker<br />
Katmandu<br />
Lonsdale<br />
Lorna Jane<br />
Lululemon<br />
Merrell<br />
Mountain Designs<br />
New Balance<br />
Nike<br />
North Face<br />
Patagonia<br />
Performax<br />
Puma<br />
Reebok<br />
Russell Athletic<br />
S<strong>au</strong>cony<br />
Skins<br />
Speedo<br />
Supre<br />
Target<br />
Under Armour<br />
Other<br />
0% 25.00% 50.00% 75.00% 100.00%
Part 2: Where, what, and why people are<br />
buying?<br />
!<br />
Market share analysis for consumers’ most recent sporting goods purchase;<br />
preferred buying destinations across sporting goods/apparel product categories;<br />
key drivers/motives for buying at each destination<br />
ASGA | Industry Snapshot Research 31
32<br />
Purchase destinations<br />
% of consumers buying at each destination and top 5 market share for each destination<br />
Where did you purchase your most recent clothing item to wear during sports or exercise?<br />
Speciality sports<br />
store:<br />
Destination<br />
48.3%<br />
Market<br />
Share<br />
Rebel Sport 36%<br />
Amart<br />
Allsports<br />
Athletes<br />
Foot<br />
19%<br />
5%<br />
Lorna Jane 4%<br />
Sports Co 3%<br />
Bricks and<br />
mortar:<br />
92.4%<br />
General clothing<br />
store:<br />
44.1%<br />
Destination<br />
KMART<br />
Market<br />
Share<br />
29%<br />
Target 27%<br />
BigW 15%<br />
Myers 4%<br />
Cotton On<br />
Body<br />
2%<br />
Australian site:<br />
3.9%<br />
Destination<br />
Market<br />
Share<br />
oo.<strong>com</strong>.<strong>au</strong> 10%<br />
Amart AllSports 5%<br />
Catch of the Day 5%<br />
Rebel 5%<br />
P<strong>au</strong>l’s 5%<br />
Online<br />
7.6%<br />
OS site:<br />
3.3%<br />
Destination Market<br />
Share<br />
ebay.<strong>com</strong> 26%<br />
wiggle.<strong>com</strong> 16%<br />
Nike 16%<br />
Online, but not<br />
sure where<br />
based:<br />
0.4%
33<br />
Purchase destinations<br />
% of consumers buying at each destination cut by age group<br />
Where did you purchase your most recent clothing item to wear during sports or exercise?<br />
Key finding<br />
• Online buying rates for sports clothing are highest in middle-aged consumers (around 10% among<br />
35-55 years olds), and are lower in younger and older consumers.
34<br />
Purchase destinations<br />
% of consumers buying at each destination and top 5 market share for each destination<br />
Where did you purchase your most recent pair of sneakers?<br />
Destination<br />
Speciality sports<br />
store:<br />
61.3%<br />
Market<br />
Share<br />
Rebel Sports 29%<br />
Amart<br />
Allsports<br />
13%<br />
Athlete’s foot 12%<br />
Footlocker 6%<br />
Nike 4%<br />
Bricks and<br />
mortar:<br />
88.4%<br />
General dept.<br />
store:<br />
27.1%<br />
Destination<br />
Market<br />
Share<br />
k mart 19%<br />
BigW 13%<br />
Target 8%<br />
Haris Scarfe 7%<br />
Myers 6%<br />
pay for less 6%<br />
Australian site:<br />
3.6%<br />
Destination<br />
Market<br />
Share<br />
Ebay 11%<br />
New balance 11%<br />
ozsales.<strong>com</strong>.<strong>au</strong> 11%<br />
Rivers 11%<br />
Online<br />
11.5%<br />
OS site:<br />
6.8%<br />
Destination Market<br />
Share<br />
wiggle.co.uk 17%<br />
Amazon.<strong>com</strong> 11%<br />
Ebay 11%<br />
niketown 11%<br />
Eastbay 8%<br />
Online, but not<br />
sure where<br />
based:<br />
1.1%
35<br />
Purchase destinations<br />
% of consumers buying at each destination cut by age group<br />
Where did you purchase your most recent pair of sneakers?<br />
Key finding<br />
• Online buying rates for sneakers/runners are significantly higher in younger consumers, having<br />
reached 15% among 18-24 year olds (vs. 6% in 55+ consumers)
36<br />
Drill down into online purchasing:<br />
Sporting goods <strong>com</strong>pared to other retail categories<br />
How does Australians’ online purchasing of sporting goods <strong>com</strong>pare to their online purchasing in other<br />
retail categories?<br />
The figure below integrates the Empirica/ASGA survey findings with online purchase rates found in other<br />
retail categories. The estimates for these additional retail categories <strong>com</strong>e from research conducted by<br />
Citibank (2010) and Morgan Stanley (2011).<br />
<strong>Source</strong>s: Empirica Research, Morgan Stanley, Citibank, National Retail Association
37<br />
Drill down into online purchasing:<br />
Sporting goods and the Low Value Threshold<br />
Is the “low value threshold” on imports driving Australians to buy sporting goods from<br />
overseas websites?<br />
• Our survey estimates of Australians’ rates of overseas online purchasing of sporting<br />
goods (3.3% for apparel; 6.8% for footwear) are in line with estimates generated by<br />
analysing air cargo consignments in the “low value” category (LVCs).<br />
• (LVCs are foreign goods imported in consignments that are valued at $1000 AUD<br />
or less and hence avoid GST, customs duties, and other associated fees.)<br />
• According to the Centre for International Economics (CIE, 2011), 7% of air cargo<br />
consignments destined for individual Australian homes are in the “sporting goods”<br />
category.<br />
• We note that an additional 41% of consignments to individuals are in the “textile and<br />
fashion” category. A proportion of this category presumably includes sporting apparel<br />
items.<br />
• Thus, the actual percentage of overseas online purchases in sporting goods/apparel<br />
likely exceeds 7%, and perhaps by a significant margin.<br />
• Ernst and Young estimate that the low value threshold will cost up to 33,400 retail jobs<br />
in Australia through 2015 and will result in forgone GDP of between 3.9b and 6.5b.<br />
<strong>Source</strong>s: CIE (2011) and Ernst and Young (2012)
38<br />
Consumer motives/drivers for buying at each destination<br />
Respondents described where they would buy a variety of sports apparel and footwear items. They then<br />
described why they would buy at their chosen destination. We coded these motives to identify the top<br />
drivers for buying each product type at each destination. These data are presented below…<br />
Top motivations for buying sneakers at each destination…
39<br />
Consumer motives/drivers for buying at each destination<br />
Top motivations for buying <strong>com</strong>pression wear at each destination
40<br />
Consumer motives/drivers for buying at each destination<br />
Top motivations for buying shorts at each destination
41<br />
Consumer motives/drivers for buying at each destination<br />
Top motivations for buying tops at each destination
Consumer motives/drivers for buying at each destination<br />
Top motivations for buying tennis rackets at each destination<br />
42
Part 3: From the track to the streets<br />
!<br />
The shift towards “sportswear as streetwear” – where and for whom is sportswear<br />
acceptable outside the exercise context?<br />
ASGA | Industry Snapshot Research 43
44<br />
Sports attire outside the exercise context<br />
Consumers are be<strong>com</strong>ing more relaxed about “where and when” they wear sports attire in<br />
non-exercise related settings/activities. This attitudinal shift represents a major opportunity<br />
to expand the category. To provide hard metrics on this shift, we measured whether<br />
consumers think it’s “OK” versus “not OK” to wear a range of different sports outfits in a<br />
range of different settings, from doing housework to having coffee with friends.<br />
Key finding<br />
• Compression wear is not accepted outside an exercise context.
45<br />
Sports attire outside the exercise context<br />
Key finding<br />
• Sports shorts and tops readily accepted by consumers outside the exercise context, especially in<br />
the home setting.
46<br />
Sports attire outside the exercise context<br />
Key finding<br />
• Tracksuit readily accepted by female consumers outside the exercise context; acceptance more<br />
mixed among male consumers.
47<br />
Sports attire outside the exercise context<br />
Note: The yoga outfit question was only asked of female respondents<br />
Key finding<br />
• Yoga outfit readily accepted as housewear by female consumers, but not readily accepted as<br />
streetwear.
48<br />
Sports attire outside the exercise context<br />
Gender and age matter!<br />
• The figures below represent averages across all of the non exercise related settings (i.e.,<br />
walking the dog, coffee with friends, housework etc). Thus, a higher score means it’s<br />
more acceptable to wear each outfit when doing non exercise related activities.<br />
• The figures show that age and gender interact.<br />
• As men get older, they see sports attire as more permissible in non-exercise settings.<br />
• As women get older, their attitudes remain relatively stable for most categories, but grow<br />
less permissive for yoga outfits. (Note: this pattern does not apply to <strong>com</strong>pression wear)
Part 3: Counterfeit sporting goods: Will<br />
Australian consumers buy in?<br />
!<br />
Consumer perceptions of counterfeit availability; willingness to buy counterfeit;<br />
cues that signal counterfeit to consumers; attitudes towards greater government<br />
intervention.<br />
ASGA | Industry Snapshot Research 49
50<br />
Counterfeit sportswear<br />
Perceptions of counterfeit availability in Australia<br />
Australian consumers are generally aware that counterfeit sporting goods are available<br />
here. We asked them how likely it is that counterfeit sporting goods are sold at each of the<br />
destinations shown in the figure below…<br />
Key findings:<br />
• Consumers accurately perceive<br />
the presence of counterfeit<br />
sporting goods at Australian<br />
street markets.<br />
• Consumers may underestimate<br />
the presence of counterfeit at<br />
generic online retailers and<br />
generic sports stores.<br />
• Consumers may overestimate<br />
the presence of counterfeit at<br />
major retailers (e.g., Rebel) -<br />
both bricks and mortar and<br />
online.<br />
• Despite awareness of<br />
counterfeit’s presence,<br />
consumers underestimate their<br />
personal exposure to it. (See low<br />
likelihood ratings for “the places<br />
I shop”).
51<br />
Counterfeit sportswear<br />
Willingness to buy counterfeit<br />
Respondents were presented with an image of an<br />
Asics gel runner and were asked to imagine they<br />
found a counterfeit version that they felt was about<br />
the same quality as the real product.<br />
We then asked them what discount from the RRP of<br />
$180 they would need to buy the counterfeit version.<br />
Respondents could also tick “I wouldn’t buy the<br />
counterfeit at any price”<br />
Key findings:<br />
• Overall, only 24% of consumers indicate they<br />
would not be willing to buy the counterfeit Asics<br />
under any level of discount.<br />
• Willingness to buy counterfeit is highest in young<br />
consumers (under 24 years), where less than 15%<br />
wouldn’t buy the counterfeit under any level of<br />
discount.
52<br />
Counterfeit sportswear in Australia<br />
Counterfeit cues – bricks and mortar setting<br />
When buying sporting goods/apparel in a store, what are the main cues that signal the<br />
product might be counterfeit?<br />
(Note: word size indicated frequency of mention by consumers)
53<br />
Counterfeit sportswear in Australia<br />
Counterfeit cues – online<br />
When buying sporting goods/apparel online, what are the main cues that signal the product<br />
might be counterfeit?<br />
(Note: word size indicated frequency of mention by consumers)
54<br />
Counterfeit sportswear in Australia<br />
Counterfeit – general attitudes and policy support<br />
Key findings:<br />
• Consumers view small Australian retailers and<br />
major brands as the major victims of<br />
counterfeit sporting goods (see Figure top<br />
left)<br />
• On average, consumers support stronger<br />
Government action on preventing counterfeit<br />
from entering the country, although not by<br />
large margins (see Figure bottom left).<br />
• A majority support lowering import tariffs,<br />
although the strength of this support is<br />
modest (see Figure bottom left).
!<br />
Trends in sports participation<br />
Participation rates in organised and non-organised sport and exercise<br />
ASGA | Industry Snapshot Research 55
56<br />
Trends in Australian Exercise and Sports Participation<br />
ABS Time Use Studies reveal declining minutes per day spent on sports/exercise!<br />
Activity 1997 2006<br />
Sport and outdoor activity<br />
(mins/day)<br />
Males Females Males Females<br />
33 20<br />
25 17<br />
Total free time (mins/day) 328 304 308 284<br />
Top forms of exercise and % participation in pop. over 15 years<br />
!"#$%&'()*!+(!,"$-(./0(1&%$&.2"/'()(3-.232%.4("5&$56&7("8()#3-$.46.(9:;
Australian participation rates in sport and exercise<br />
57<br />
Percentage and raw numbers of participants: Organised and nonorganised<br />
sports/exercise.<br />
!"#$%&'()*!+(!,"$-(./0(1&%$&.2"/'()(3-.232%.4("5&$56&7("8()#3-$.46.(:;
58<br />
Organised sports and physical activity<br />
Trends over time…<br />
• Over the past decade, the percentage of the<br />
population participating in organised sport<br />
has declined from 27% in 2001 to 26% in<br />
2010.<br />
• Due to population growth however, the raw<br />
number of participants in organised sport<br />
has increased slightly.<br />
• Males’ participation in playing roles has<br />
dropped 3% points in the last decade, to<br />
24%, but has remained stable in females<br />
(20%).<br />
Involved in a<br />
playing role only:<br />
2.95 M (17%)<br />
Involved in a<br />
playing role:<br />
3.82 M (22%)<br />
!"#$%&'()*!+(>/5"45&?&/-(6/(@$A./63&0(!,"$-(./0(BCD36%.4()%256-D(<br />
Involved in<br />
organised sport or<br />
physical activity:<br />
4.52M (26%)<br />
Involved in both a<br />
playing and nonplaying<br />
role:<br />
.87M (5%)<br />
Total Australian<br />
population aged<br />
15 years and over:<br />
17.34 M (100%)<br />
Not involved in<br />
organised sport or<br />
physical activity:<br />
12.82M (74%)<br />
Involved in a nonplaying<br />
role:<br />
1.56M (9%)<br />
Involved in nonplaying<br />
role only:<br />
.69M (4%)
59<br />
Organised sports and physical activity<br />
Quick Facts: The 4.52 million Australians and organised sport are!<br />
• More likely to be involved if they were born in Australia (30% involved) than born in<br />
another English speaking country (25%) or a non-English speaking country (11%).<br />
• More likely to be involved if they’re male (29%) than female (24%)<br />
• Less likely to be involved if they live in a capital city (25%) than outside one (28%)<br />
• More likely to be involved if they’re employed (30%) than unemployed (26%)<br />
• 9% receive some type of payment for their involvement<br />
• Among those in playing roles, 49% are involved for 3-9 hours per week<br />
• Among those in non-playing roles, 41% have <strong>com</strong>pleted a course or qualification relevant<br />
to their role and 60% are involved with school or junior sports
Concluding remarks<br />
!<br />
ASGA | Industry Snapshot Research 60
61<br />
Concluding remarks<br />
ASGA and Empirica Research hope the findings presented here will assist readers in navigating the<br />
Australian sporting goods market in the year ahead.<br />
We invite you to make contact to access additional resources.<br />
For information regarding ASGA’s proprietary market intelligence surveys, or for inquiries about ASGA<br />
membership, please contact::<br />
The Australian Sporting Goods Association<br />
Brad Kitschke - Executive Director<br />
767 Springvale Rd<br />
Mulgrave, VIC<br />
3170<br />
<strong>asga</strong>.<strong>com</strong>.<strong>au</strong><br />
For questions regarding the consumer survey presented in this report, or for other research-related<br />
questions, please contact:<br />
Empirica Research<br />
Dr. David Neal – Founding Partner<br />
david@empiricaresearch.<strong>com</strong>.<strong>au</strong><br />
214 Kerr Street<br />
Fitzroy, VIC<br />
3065<br />
empiricaresearch.<strong>com</strong>.<strong>au</strong>
ABOUT EMPIRICA RESEARCH<br />
!<br />
62
63<br />
About Empirica Research<br />
Empirica injects academic, evidence-based research into <strong>com</strong>mercial projects.<br />
Empirica Research, based in Melbourne and Miami, is a full service consumer and social research firm. We have<br />
diverse range of clients across Australia and the US. We offer tailored research solutions, innovative techniques, and<br />
our unique “Think Tank” of leading marketing professors from around the world.<br />
We maintain strong ties to the academic world, publish in academic journals, and our Founding Directors have PhDs.<br />
Our work is diverse, but our philosophy across these projects is the same: inject academic, evidence-based research<br />
into <strong>com</strong>mercial projects while keeping a clear focus on real-world, actionable insights.<br />
Cassie Govan, Ph.D.<br />
Founding Partner<br />
David Neal, Ph.D.<br />
Founding Partner<br />
empiricaresearch.<strong>com</strong>.<strong>au</strong><br />
Anna Coster, M.A.<br />
Director of Consumer Research
64<br />
Our clients include…
65<br />
Our work has been featured in…
Thank you.<br />
!<br />
ASGA | Industry Snapshot Research 66