Sportswear in India

7/22/2015 EuromonitorInternationalAnalysis

http://www.portal.euromonitor.com/portal/analysis/tab 1/5

SportswearinIndiaCategoryBriefing|09Jul2015

HEADLINES

Sportswearcontinuestoperformstronglyin2014andregisterscurrentretailvaluegrowthof23%toreachRs241.8billion

Theincreasingimportanceoffitnessamongurbanconsumershelpsdrivesalesofsportswear

Women'ssportsfootwearregistersthestrongestcurrentretailvaluegrowthof37%toreachRs32.3billion

adidasIndiaMarketingPvtLtdcontinuestoleadsportswearandaccountsfor10%ofretailvaluesales

SportswearisexpectedtoregisteraretailvalueCAGRof11%(constant2014prices)toreachRs408.2billionin2019

TRENDS

WorldYogaDayinJune2015wascelebratedwithmuchprideandgustoacrossthecountry.TheimportanceoffitnessandstayinghealthyisincreasingacrosstheruralandurbanregionsofIndiaalike.Theurbanandmetrocentresarewitnessingstronggrowthoffitnessclubsandgymsaswellasyogacentres.Thecountryisalsotakingupanumberofsportssuchasbadminton,swimming,squash,cricket,footballandbasketball,withIndiansportspersonsachievingsuccessatinternationallevel.Thesefactorshelpedsportsweartoregisterstrongcurrentretailvaluegrowthof23%in2014andregistersalesofRs241.8billion.

Insportsapparel,outdoorapparelregisteredthestrongestcurrentretailvaluegrowthof25%followedbyperformanceapparelwhichincreasedby18%whilesportsinspiredapparelregisteredgrowthof16%.Theincreasingtrendtowardshealthandwellnessandgrowingimportanceofsportsamongurbanconsumershelpeddrivesalesofsportsapparel.

ThemostimportantsportingdisciplinesinIndiaincludecricket,football,basketball,tennisandbadminton.Thereisgrowinginterestinsportsamongyoungconsumersandthisishelpingtodrivesalesofsportswearinthecountry.Mostnewschannelshavededicatedslotsforsportsrelatednewsduringprimetime,whichishelpingtoincreaseawarenessofinternationalanddomesticsportingevents.

ThepopularityofmarathonsisontheriseinIndia.TataConsultancyServicesorganisestheannualTCS10kmarathoninthecityofBangalore,whichispopularnationally.TheStandardCharteredMumbaiMarathonisanannualmarathoneventconductedinthecityofMumbai.Thenumberofpeopleenrollingforthesemarathonsinthemetrocitiesisontheriseyearonyearandtheseeventsgetnationaltelevisioncoverage,whichencouragespeopletotakeuprunning.

CounterfeitsportswearproductshavesignificantsalesacrossmajorcitiesaroundIndiaanditisincreasinglydifficulttospotthedifferencebetweenoriginalandfakeproducts.However,globalbrandssuchasNike,adidasandPumaputsignificantchecksoncounterfeitproductswiththehelpoflocalauthoritiesin2014.

InternetretailingcontinuedtogainshareofthesportswearmarketinIndiaduring2014andcommandedaretailvalueshareof5%.Internetretailingprovidesconsumerswiththeconvenienceofshoppingfromhomeandgivesconsumersintiertwoandtierthreecitiesaccesstoalargevarietyofbrandedproductswhichwerepreviouslynotavailabletothem.PricingdifferencesbetweenbrickandmortarstoresandinternetretailersissignificantlyhighinIndia,leadingtoconsumersshiftingtotheinternetchanneltomakepurchases.

COMPETITIVELANDSCAPE

adidasIndiaMarketingPvtLtdremainedtheleadingplayerandaccountedfor10%ofretailvalue

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salesin2014.ReebokIndiaPvtLtdrankedsecondwith5%followedbyNikeIndiaPvtLtdwith4%.Thesethreebrandhireddomesticandinternationalstarstopromotetheirbrandsduring2014.

adidasIndiaMarketingPvtLtdmanagedtoregisterthebiggestincreaseinvaluesalesinabsolutetermsduring2014.Thecompanycontinuedtofocusonincreasingthevarietyofsportingproductsavailabletoconsumersandalsoinvestedinitsstorestomakethemmoreattractive.Thecompanyalsofocussedontheinternetretailingchanneltoattainsalesandpromoteitsproductsduring2014.

Footwear(klick)IndiaPvtLtdregisteredthestrongestcurrentretailvaluegrowthof71%during2014,backedbythestrongperformanceofitsLancersportsshoerange.Thecompanycontinuedtopromoteitsbrandthroughtelevisionadvertisementsandprintads.

Thelocalplayerstargetmainlythemasssegmentofsportswearandoffereconomypricedproducts.TheprominentdomesticplayerswithinsportswearinIndiaincludeLibertyandLancerFootwear.Indiandomesticplayersarealsoregisteringstronggrowthwithinthemarketandareincreasingtheirshareandpresenceduetothelowpricingpointatwhichtheyselltheirproducts.

ProminentsportswearbrandsinIndiaincludeadidas,Reebok,Nike,Woodland,Puma,Fila,USPoloandPower.ApartfromReebok,whichfacedinternalissues,mostofthesebrandsgainedretailvalueshareinsportswearin2014.

ProminentadvertisingcampaignsforsportswearbrandssuchasFila,Puma,adidasandReebokthatarebasedaroundcricket,basketball,tennisandFormulaOnetargetconsumersaged1550.

PrivatelabelremainednegligiblewithinsportswearinIndiain2014.

PROSPECTS

Overtheforecastperiod,sportswearisexpectedtoperformstronglyduetothefavourablemacroeconomicenvironmentinthecountry.Interestinsportsgenerallyisontheriseduetothegrowinginfluenceofsportssuchascricket,football,basketballandswimming.Urbanconsumersarebecomingmorehealthconsciousandaretakingupsportssuchasbadminton,tennisandsquash,joiningfitnessclubsandgyms,andtakinguptojoggingandrunningtostayfit.ThistrendisexpectedtofurtherstrengthenovertheforecastperiodandwillhelpdrivesalesofsportswearinIndiaovertheforecastperiod.

TheretailvalueCAGRof11%(constant2014prices)expectedovertheforecastperiodisslightlylowerthantheCAGRof13%registeredoverthereviewperiodmanynewplayersareexpectedtoenterthemarket,whichwillresultinaloweraverageunitprice.

Outdoorapparelandsportsinspiredfootweararepredictedtorecordthemostdynamicperformancesovertheforecastperiod,withretailvalueCAGRsof10%and17%(constant2014prices),respectively.Thisisnotonlybecauseoftheirlowsalesbases,butalsoduetotheincreasingpopularityofoutdooractivitiesinIndia.Inadditiontotraditionaloutdooractivitiessuchashiking,emerginggenressuchascampingandrallyracingarelikelytoreceiveincreasingattentionovertheforecastperiod.Inaddition,moreamateurs,suchasmiddleagedandolderpeople,arealsolikelytoparticipateinoutdooractivities,tojointlydriveoutdoorapparelandfootweartoadynamicperformanceovertheforecastperiod.

Thepotentialthreattoexistingsportswearbrandsinthemarketwouldbetheentryofsmalldomesticplayersthatcouldofferproductsatsignificantlylowerpricesthantheexistingbrands,whichwouldeatintotheshareofthelargerinternationalplayers.

CATEGORYDATA

Table1SalesofSportswear:Value20092014INRbn 2009 2010 2011 2012 2013 2014

SportsApparel 45.2 55.5 68.5 83.8 102.2 122.4

PerformanceApparel 28.2 36.4 45.8 55.9 67.1 79.1

OutdoorApparel 12.7 14.3 17.4 21.9 28.1 35.1

SportsinspiredApparel 4.3 4.9 5.3 6.0 7.1 8.2

SportsFootwear 36.4 45.5 58.0 73.3 94.3 119.5

PerformanceFootwear 24.7 30.6 38.8 48.9 62.1 77.7

OutdoorFootwear 6.4 8.2 10.6 13.5 17.8 23.1

SportsinspiredFootwear 5.3 6.8 8.6 10.9 14.4 18.7



Sportswear 81.6 101.0 126.5 157.1 196.5 241.9Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources

Table2SalesofSportswear:%ValueGrowth20092014%currentvaluegrowth 2013/14 200914CAGR 2009/14Total

SportsApparel 19.8 22.0 170.8

PerformanceApparel 18.0 22.9 180.8

OutdoorApparel 25.0 22.6 176.5

SportsinspiredApparel 16.0 13.6 88.8

SportsFootwear 26.7 26.9 228.7

PerformanceFootwear 25.0 25.8 215.0

OutdoorFootwear 30.0 29.4 262.6

SportsinspiredFootwear 30.0 28.6 251.5

Sportswear 23.1 24.3 196.6Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources

Table3NBOCompanySharesofSportswear:%Value20102014%retailvaluersp 2010 2011 2012 2013 2014

adidasIndiaMarketingPvtLtd 11.7 10.2 11.0 10.3 10.4

ReebokIndiaPvtLtd 14.3 13.4 7.5 5.9 5.1

NikeIndiaPvtLtd 2.6 2.8 3.3 3.5 3.7

AeroGroup 2.8 2.8 2.8 2.7 2.8

PumaSportsIndiaPvtLtd 1.8 1.8 1.9 1.9 2.4

RelaxoFootwearLtd 0.4 1.2 1.3 1.5 1.6

FilaIndiaLtd 1.1 1.1 1.2 1.4 1.6

Footwear(klick)IndiaPvtLtd 0.7 0.7 0.8 0.9 1.2

ProlineIndiaLtd 0.6 0.7 0.8 0.9 0.9

ArvindLifestyleBrandsLtd 0.6 0.6 0.6 0.7 0.8

BataIndiaLtd 1.1 0.8 0.8 0.8 0.6

SportsLifestylePvtLtd 0.1 0.1 0.2 0.2 0.2

VFBrandsIndiaPvtLtd 0.2 0.2 0.2

LibertyShoesLtd 0.1 0.1 0.1 0.1 0.1

PageIndustriesLtd 0.1 0.1 0.1 0.1 0.1

WildcraftIndiaPvtLtd 0.1 0.1 0.1 0.1 0.1

VFArvindBrandsPvtLtd 0.2 0.2

Others 61.9 63.4 67.2 68.9 68.1

Total 100.0 100.0 100.0 100.0 100.0Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources

Table4LBNBrandSharesofSportswear:%Value20112014%retailvaluersp Company 2011 2012 2013 2014

adidas adidasIndiaMarketingPvtLtd 9.7 10.5 9.9 10.0

Reebok ReebokIndiaPvtLtd 13.4 7.5 5.9 5.1

Nike NikeIndiaPvtLtd 2.5 3.1 3.2 3.5

Woodland AeroGroup 2.8 2.8 2.7 2.8

Puma PumaSportsIndiaPvtLtd 1.8 1.9 1.9 2.4

Sprax RelaxoFootwearLtd 1.2 1.3 1.5 1.6

Fila FilaIndiaLtd 1.1 1.2 1.4 1.6

LancerFootwear Footwear(klick)IndiaPvtLtd 0.7 0.8 0.9 1.2

Proline ProlineIndiaLtd 0.7 0.8 0.9 0.9

USPolo ArvindLifestyleBrandsLtd 0.6 0.6 0.7 0.8

Power BataIndiaLtd 0.8 0.7 0.7 0.5

adidasKids adidasIndiaMarketingPvtLtd 0.5 0.4 0.4 0.4

Converse NikeIndiaPvtLtd 0.3 0.3 0.3 0.3



Lotto SportsLifestylePvtLtd 0.1 0.2 0.2 0.2

Nautica VFBrandsIndiaPvtLtd 0.2 0.2 0.2

Weinbrenner BataIndiaLtd 0.1 0.1 0.1

Force LibertyShoesLtd 0.1 0.1 0.1 0.1

Speedo PageIndustriesLtd 0.1 0.1 0.1 0.1

Wildcraft WildcraftIndiaPvtLtd 0.1 0.1 0.1 0.1

Nautica VFArvindBrandsPvtLtd 0.2

Others Others 63.4 67.2 68.9 68.1

Total Total 100.0 100.0 100.0 100.0Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources

Table5DistributionofSportswearbyFormat:%Value20092014%retailvaluersp 2009 2010 2011 2012 2013 2014

StoreBasedRetailing 99.3 99.2 99.1 98.1 96.8 95.1

GroceryRetailers 3.4 3.5 3.7 3.8 3.9 4.0

ModernGroceryRetailers 3.4 3.5 3.7 3.8 3.9 4.0

ConvenienceStores

Discounters

ForecourtRetailers

Hypermarkets 1.2 1.3 1.3 1.3 1.4 1.4

Supermarkets 2.2 2.3 2.4 2.5 2.5 2.6

TraditionalGroceryRetailers

Food/drink/tobaccospecialists

IndependentSmallGrocers

OtherGroceryRetailers

NonGrocerySpecialists 91.9 91.5 91.2 89.9 88.5 86.6

ApparelandFootwearSpecialistRetailers 58.1 56.8 54.6 52.5 51.0 49.0

LeisureandPersonalGoodsSpecialistRetailers 33.6 34.5 36.3 37.2 37.3 37.3

Sportsgoodsstores 33.6 34.5 36.3 37.2 37.3 37.3

OtherLeisureandPersonalGoodsSpecialistApparelRetailers

OtherNonGroceryApparelandFootwearSpecialists 0.2 0.2 0.2 0.3 0.3 0.3

MixedRetailers 4.0 4.2 4.3 4.4 4.4 4.4

DepartmentStores 4.0 4.2 4.3 4.4 4.4 4.4

MassMerchandisers

VarietyStores

WarehouseClubs

NonStoreRetailing 0.7 0.8 0.9 1.9 3.2 4.9

Homeshopping 0.1 0.1 0.1 0.1 0.1 0.1

InternetRetailing 0.6 0.7 0.8 1.8 3.1 4.9

DirectSelling

Vending

Total 100.0 100.0 100.0 100.0 100.0 100.0Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources

Table6ForecastSalesofSportswear:Value20142019INRbn 2014 2015 2016 2017 2018 2019

SportsApparel 122.4 134.3 146.6 159.1 171.6 183.9

PerformanceApparel 79.1 86.3 93.6 101.1 108.7 116.3

OutdoorApparel 35.1 39.3 43.6 48.0 52.3 56.5

SportsinspiredApparel 8.2 8.8 9.4 10.0 10.6 11.2

SportsFootwear 119.5 137.8 157.8 179.1 201.4 224.3

PerformanceFootwear 77.7 88.9 101.4 114.6 128.3 142.4



OutdoorFootwear 23.1 26.6 30.2 33.8 37.5 41.3

SportsinspiredFootwear 18.7 22.2 26.2 30.7 35.6 40.6

Sportswear 241.9 272.1 304.4 338.1 373.0 408.2Source:EuromonitorInternationalfromtradeassociations,tradepress,companyresearch,tradeinterviews,tradesources

Table7ForecastSalesofSportswear:%ValueGrowth20142019%constantvaluegrowth 2014/2015 201419CAGR 2014/19TOTAL

SportsApparel 7.2 8.5 50.2

PerformanceApparel 7.0 8.0 46.9

OutdoorApparel 8.0 10.0 61.0

SportsinspiredApparel 5.0 6.4 36.3

SportsFootwear 11.3 13.4 87.7

PerformanceFootwear 11.0 12.9 83.4

OutdoorFootwear 10.0 12.3 78.5

SportsinspiredFootwear 14.0 16.8 117.3

Sportswear 9.4 11.0 68.8Source:EuromonitorInternationalfromtradeassociations,tradepress,companyresearch,tradeinterviews,tradesources

EuromonitorInternational2015

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Sportswear in India