Exclusive extracts from this 65-page-long report:
- Who are the key players?
A couple of large players (Nike, the clear industry leader, and Adidas), several mid-sized global players (Asics, Puma and VF Corp), and more specialised groups (Lululemon, Under Armour, etc.) compete in the global market. Anta, the Chinese leader, has just completed the acquisition of Finland-based Amer Sports, which is likely to be a starting point for global expansion.
Groups analysed in this report include: Nike, Adidas, Decathlon, VF Corporation, Puma, Under Amour, Anta, Asics Corporation, Lululemon Athletica & Columbia Sportwear.
- What are the players' strategies?
Industry leaders have virtually no presence in product manufacturing, which is contracted to third-party companies located mostly in Asia, particularly China and Vietnam, which in turn rely on complex networks of small textile factories. Sporting goods companies' activities are thus focused on design and marketing, as well as retail operations. In recent years, most leading groups have intensified their direct-to-consumer operations (online, physical stores) to the detriment of wholesale channels.
- What are the players' key growth and profitability drivers?
Nike revenues were up 6% yoy in 2018, in line with previous years' performances. The Nike brand, which generated 94.5% of net sales, continued to enjoy strong demand, especially in the apparel category. Puma has had a strong track record over the past few years, with sales rising 12.4% yoy in 2018. The brand's solid performance has been due to the increased “competitiveness” of its portfolio, a wider store footprint (wholesale) in China, and the success of its basketball shoe collection in North America