Sporting Goods Administration - Sprt 254 PDF

Sporting Goods Administration - Sprt 254 Week 1: Introduction and History What are Sporting Goods? -​ The physical objects needed for game form 8000 Indigenous sports and sporting games. Sporting Goods in Canada Stats -​ 9459 Sporting Goods Businesses -​ 1700 Canadian Tire Locations...

Sporting Goods Administration - Sprt 254 Week 1: Introduction and History What are Sporting Goods? -​ The physical objects needed for game form 8000 Indigenous sports and sporting games. Sporting Goods in Canada Stats -​ 9459 Sporting Goods Businesses -​ 1700 Canadian Tire Locations -​ 155 Source for Sports -​ Sporting goods retail worth in Canada is $11 Billion -​ Sporting Goods Apparel is $10.6B -​ Fitness Equipment Sales is $200M -​ Sporting Goods Products Sales in US is $13.3B World Stats -​ US industry is $111 Billion -​ Pakistan Industry exports/year is $1 Billion -​ Sporting Goods Apparel in US is $64.5B -​ Fitness Equipment Sales in US is $6B -​ Sporting Goods Products Sales in US is $66.6B Global Impact of the Sporting Goods Industry -​ -40% consumers net intent to purchase sporting goods items -​ 4-8% sales decline in US in Q1-Q3 2022 versus 2021 across main categories -​ 54% of households will occupy the upper-middle income and high income brackets by 2025 -​ 86% Sporting Goods companies plan on a CO2 reduction target Impact of Pro Sports Success -​ When a team is successful or makes waves in the industry, everything increases -​ After the Bautista Bat Flip, There was a 25% increase in registration -​ After the Raptors win, there was 22% increase in Registration International Events  -​ Spin-offs include: Program Development → Olympic success impacts program development What Influences the Sporting Goods Industry -​ Personal Preference -​ Demographics -​ Competition -​ Pricing -​ Weather Conditions -​ Economic Conditions -​ Athlete Behaviour -​ Technology What can be Impacted by the Business of Sporting Goods? -​ Who does the retailer choose as their supplier? -​ Supply chain pricing? -​ Advertising Dollars? -​ Sales for the suppliers? -​ Packaging? -​ Agencies? -​ Jobs? -​ Manufacturer History of the Sporting Goods Industry Pioneers -​ George Tryon: Fishing Tackle Business (1811) -​ Michael Phelan and John Brunswick: Billiards (1840s/50s) -​ Hillerich & Bradsby: Baseball Bats (1850’s-80’s) -​ Wright & Ditson: Rawlings Sporting Goods (1880’s) -​ Albert Spalding, American former pro baseball player in the 1870’s. Trend setter by wearing a baseball glove. Started the national league and wrote the first set of rules. Co-Founded by A.G. Spalding sporting goods company in Chigaco, grew to 14 stores in 1901. In 1986, A.G. Spalding manufacturers and sold bikes, golf, tennis racquets, dumbbells, football shoes and pants,jacket and hunting goods -​ Dr. George Beers: Fathe of Lacrosse (1860), Born in Montreal, 1st to codify rules of lacrosse  -​ The first organized Ice Hockey game was played on March 3, 1875 between two teams of nine men each from Montreals Victoria Skating club The Industry History -​ Abercrombie and Fitch: Sold high end camping gear in New York before expanding into women’s clothing in 1910 -​ Leisureware: Tennis greats Fred Perry and Rene Lacoste (Izod) launched fashionwear in the 1950’s -​ Player Endorsements: In the 1920’s, Honus Wagner was among the first of athletes to endorse products -​ Canadian Manufacturing: As early as 1929, 30 Manufacturers, employing 1212 people, produced goods (eg, skates, lacrosse equipment, snowshoes) worth $4.8M -​ Post-WWII Canadian Leisure Time: Post-WWII saw CDN MFG rise to $31.6M and 107 manufacturers. The 1960s boomed to $81.7M and employment in the industry rose by 45% to 5463 people Canadian Stats -​ 50% of Canadians participate in Sport -​ 5.7M Canadians went camping in 2023 -​ 200K Increase from 2022 -​ $52B spent on local communities Week 2: Relationships and Product Categories Industry Relationships -​ Vendors or Manufacturers -​ Responsible for the design and manufacturing of the product -​ Multiple methods involved in the distribution process -​ Distributions, Wholesalers, etc -​ Retailers -​ Consumers Issues for Vendors -​ Product Liability -​ Human Rights Issue -​ E-Commerce  -​ Athlete Endorsements Vendors Make Canada Home -​ Sporting Goods vendors employ approx 4,000 people in Canada -​ Top 3 Vendor Employer Provinces are Ontario, Manitoba and Quebec Roles with a Vendor -​ Product design and development -​ Web Design/Development -​ Manufacturing/Sourcing -​ Financial Management -​ Marketing/Communications -​ Sales -​ Operations -​ Field Operations -​ Customer Service Vendor Management Structure -​ Larger companies like Amer, Nike, Adidas offer a wide range of products typically divide categories under Directors -​ Sub-Contracts products to other smaller vendors if they do not have the capacity Vendor Sourcing -​ Locating suppliers domestically or foreign -​ Negotiating contracts -​ Overseeing production -​ Quality control -​ Ethics/Enviromental Responsibilties -​ Overseas Production → Activewear → Shoes → Balls → Uniforms -​ Domestic Production → Application of name/#s on uniforms  → Fitness Equipment → Ammunition → Fishing Tackle Domestic VS Foreign Production -​ Domestic Pros: → Maintain quality standards → Quick turnaround time → Avoid freight/shipping → Avoid taxes and duties → Jobs -​ Domestic Cons: → Higher Costs → Margins are thinner -​ Foreign Pros → Maintain quality standards → Lower labour and factory costs keep retail prices down -​ Foreign Cons: → Longer wait times → Duties/taxes → Unpredictable labour force → Quality control Nearshoring -​ “The practice of transferring a business operation to a nearby country, especially in preference to a more distant one” -​ 75% of surveyed players plan to expand nearshoring by 2025 Case Study - A tale of two hockey sticks -​ Warrior Hockey sticks made in mexico, composite stick forced manufacturing from Canada to overseas or Mexico -​ Heritage Hockey sticks made in Brantford, ON, formerly Hespeler, History dates back 100 years Product Categories Why is there a wide range of sporting goods available?  -​ With over 8000 sports in the world, why would there not be different choices and variations Choice = Categories -​ Provide options for: Athletes, Organizations, Municipalities, Governing Bodies -​ Various price levels available, Competition creates innovation Categories can be Broken Down in Many Ways -​ Extreme Sports: Inline skating, Skateboarding, Snowboarding, Surfing, etc -​ Fitness: All types incl., Martial Arts -​ Individual Sports: Badminton, Bowling, Golf, Skiing, Tennis, Wrestling -​ Team Sports: Baseball, Basketball, Ice hockey, Track and Field, Lacrosse, Football, Soccer, ETC -​ Outdoor Recreation: Archery, Backpacking, Bicycling, Water Sports, Ice Skating, Hunting, ETC -​ Indoor Games: Billards, Darts, Table Tennis Equipment Product Categories -​ Baseball: Gloves/Mitts, Baseball/Soft Balls, Metal/Composite Bats, Baseball/Softball Helmets -​ Pool: Billard/Pool Tables, Cue Sticks, Game Tables, Metal Tip Darts, Table Tennis, Paddles/Sets -​ Camping: Backpacks/Daypacks, Camp stoves, Hydration, Ice chests, Jugs for Water, Sleeping bags, Tents -​ Fitness Equipment: Abdominal Excercisers, Band/Spring Excercisers, Elliptical/Cross Trainers, Balls, Fitness Trackers, Free Weights, Home Gyms, Bikes, Treadmills, Weight benches, Yoga Mats Footwear Product Categories -​ Aerobic, Baseball, Boat, Bowling, Cheerleading, Cross Training/Fitness, Cycling, Football, Golf, Gym, Hiking, Wrestling, Hunting, Jogging, Skateboarding, Soccer, Sport, Tennis, Track, Trail, Volleyball, Walking, Water Clothing Product Categories -​ Aerobic, Camping, Baseball, Basketball, Bicycle Riding, Bowling, Cheerleading, Exercise walkin, Fishing (fresh water), Fish (salt water), Football, Golf, Gymnastics, Hiking, Hockey, Hunting, Lacrosse, Running, Soccer, Softball, Swimming Tennis, Volleyball, Weightlifting,Yoga Canadians Love Sport -​ Most canadians aged 15 or older participated in sport activities for recreation (86%), while 14% played sports competitively Athleisure -​ A desire to live and lead a healthy lifestyle drives the athleisure sales Active Females - Trendsetters -​ Late 1800’s: The bike really changed female clothing and athleisure wear -​ The fitness revolution not only brought better looking, higher performance workout wear but it also sent sports gear out of the gym, off the hiking trails, into the street and recently onto the runway Lululemon -​ Founded by Chip Wilson in Vancouver, Canada in 1998 -​ Lululemon is a yoga-inspired, technical athletic apparel company for women and men -​ 2024 Net Revenue: $10.475 Athleisures Rise due to Three Trends 1.​ Technological improvements to synthetic fibre 2.​ The modern fixation on healthy apperance 3.​ Decline of formality in American Fashion Polo Shirts -​ 1950’s: Polo players started really wearing the shirt -​ 1972: RL marked the polo shirt -​ 1980’s: Polo shirt exploded in the US -​ 1990’s:Started to become worn in the workplace -​ 2020: Working from home changed fashion -​ LACOSTE: Launches the brand in 1933 Jersey Origins -​ 1951: Mannys Baseball Land, First retail store selling jackets, t-shirts with team logos -​ 1965: Mannys Baseball Land, Sold replica jerseys -​ 1967: NBA licensing deal, 1st pro league to sign a licensing deal  -​ 1970’s: Vineflex, 1st heat-transfer process to apply numbers/letters to jerseys -​ 1981: Canadian Connection, Norm Charney sold Dallas Cowboys Merchandise -​ 1990’s: NFL Licensing, Teams were still negotiating their own licensing deals Origins - Female Influence -​ Women and girls made up 46% of the NFL fanbase in the US., amounting to 84 million fans in 2021 NA Pro League Licensing Deals -​ 1967: NBA with Sand-Knit now with Nike for $125M for 8 Years -​ 2001: NFL with Rebook now with Nike for $125M for 8 Years -​ 2001: NHL with The Hockey Company now with Fanatics for $70M for 10 Years -​ 2005: MLB with Majestic now with Nike for $100M for 10 Years -​ 2017: MLS with Adidas CURRENT for $117M for 6 Years Why Wear the Jersey? -​ “Basking in Reflected Glory” -​ 1976 Arizona State study performed by Robert Cialdini -​ Feeling part of the team by wearing a jersey - win or lose Top Selling Jerseys - Fanatics 1.​ NFL Jayden Daniels 2.​ NBA Stephan Curry 3.​ MLB Shohei Ohtani 4.​ NHL Alexander Ovechkin Estimated Jersey Sales -​ $35.12B (2023) to $56.67B (2033) Week 3: