SGMA Provides Its 'State of the Industry'

In its annual State of the Industry Report, the Sporting Goods Manufacturers Association, North Palm Beach, Fla., reviews the events that impacted our industry. Topics covered included the industry's state of consolidation, the surplus of retail selling space, which has caused the lowering of margins for manufacturers and retailers due to inventory buildup as demand declined for several product categories.

In addition to business-to-business commerce, the rapid growth of computer technology and the Internet has been a positive factor in reducing costs, as manufacturers, their suppliers and internal manufacturer operations have benefited from intranets and extranets, SGMA reports.

But on the consumer side, the Internet won't have as much impact on sporting goods as on other consumer products. Nevertheless, manufacturers, traditional brick-and-mortar sporting goods retailers and pure e-commerce firms are strategically positioning themselves for the "Internet Revolution."

SGMA estimates that total industry sales ? comprising sporting goods equipment, sports apparel and athletic footwear ? reached $46.5 billion (wholesale) in 1999. Highlights included:

? Sports apparel represented $10.4 billion.

? Sports equipment $17.6 billion.

? Athletic footwear $8.56 billion.

? Sports equipment is expected to grow on par with the overall industry.

? Apparel growth is expected to be about 5 percent.

? Athletic footwear sales will remain flat.

In other findings, the sports equipment segment will benefit from above average sales growth of outdoor/camping equipment and water sports equipment, while exercise equipment, golf, tennis, soccer, billiards and bowling equipment will grow only slightly more than the overall market.

In addition, sports apparel will be boosted by a new wave of fiber technology built into more casual wear items, as well as the fashion infusion by urban brands into the sports licensed market and teens wear segments. And good sales of running, outdoor casual styles and women's performance shoes will help counter a downturn in basketball and cross-training shoes.

As a whole, the industry should benefit in 2000 from the normal growth in consumer sports interest generated by the 2000 Olympic Games.

The 36-page annual State of the Industry Report is available free to SGMA members and for $125 (electronic version) or $175 (printed version) for non-members.