The sports apparel market grew by 2.8%

The growth was marginally better than the global increases of 1.8 percent and 2.3 percent recorded in the previous two years, and it was less influenced by changes in foreign exchange rates. Along with a generally better economy worldwide, especially in the U.S. and Asia, the weather was more cooperative.

Retailers’ inventories were cleaner than before in the U.S., after the major retail bankruptcies of the previous year, but ongoing promotions led to an increase of only 0.9 percent to $37.0 billion in the country. The sports apparel market grew by 10.0 percent to $16.5 billion in Asia-Pacific, but fell by 7.1 percent to $6.7 billion in the rest of the world.

Partly supported by a 1.9 percent increase in the euro’s value against the dollar, the European sports apparel market went up by 4.3 percent in dollars to $20.2 billion. As previously reported (SGI Europe Vol. 29, N° 23+24 of July 25), the global sports shoe market rose at a higher rate of 9.4 percent to $63.2 billion last year, including a jump of 13.4 percent to $16.4 billion in Europe, largely induced by the ongoing sneaker boom in the region.

More details are available in the 2018 Athletic Footwear & Apparel Market Facts report, which can be ordered from www.sginews.com. However, the sales figures and the growth rates at retail were lower last year according to NPD’s consumer and retail panel, which is restricted to the five major European markets, probably because of a difference in consumers’ perceptions of the two product segments. It shows a 4.6 percent increase in sales of sports shoes to $12.3 billion and a decline of 0.4 percent in sports apparel sales to €15.8 billion.

Our annual survey relies mainly on the publicly available data of the major sports companies, converted to U.S. dollars based on the average rate compiled by the OECD for the year. Most of their sales data are based on their wholesale value, although the direct-to-consumer business has come to represent about 20 percent of the total invoiced turnover.

The related chart, published in this issue, shows that both the Nike and Adidas groups rose by just more than 5 percent in this segment, leading to slightly higher market shares. Together, they represented 23.5 percent of the total sports apparel market. In the much more concentrated athletic footwear market, Adidas grew last year much faster than Nike.

Further down the rankings, double-digit increases were scored by two major Chinese brands, Anta and Li Ning, along with Puma, New Balance, Goldwin, Amer Sports and Fila. Amer, whose business plan is discussed elsewhere in this issue, raised its sports apparel sales by 13.4 percent to $541 million. If Anta’s planned acquisition of Amer goes through, their combined annual apparel turnover will reach a level of about $1.9 billion, close to that of Columbia Sportswear with its own multiple brands.

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The global market for branded sports clothing rose by 2.8 percent to $80.4 billion in terms of the vendors’ invoiced sales in 2017, according to an annual survey by Sporting Goods Intelligence, with a relatively flat performance in the U.S. offset by solid gains in Europe and the Asia-Pacific region.