The NPD Group has released its evaluation of the sporting goods market in France this year. As of the end of September, sale of shoes and apparel combined had fallen by 3 percent in the previous 12 months. In line with this figure, the market research group expects the full year 2009 to see a reduction in the sporting goods market overall.
The group’s expert for the sports sector, Renaud Vaschalde, said that NPD did not think that good sales of bicycles and other sports equipment could make up for poor sales of shoes and apparel, and that overall the French sporting goods market would fall by 1-3 percent for the year. It declined by 3 percent in 2008.
In explaining the slump in the market, he noted that, to sell something, you need to make the customer desire it, or make him think he needs it. Many companies with permanently low prices or too frequent sales promotions have brought down the perceived value of their products, so the consumer did not desire them. This applies particularly to shoes and clothing. The average price of athletic or sports-inspired shoes fell by 2 percent while apparel was down by 1 percent on average during the period.
NPD noted that in 2003, athletic shoes costing more than €50 made up 36 percent of sales, but this year, the ratio has gone down to 24 percent.
For the upcoming holiday season, NPD reports a couple of bright sport: Technical undergarments are selling strongly, up by 15 percent in the last 12 months, and T-shirts are benefiting from a move away from cotton to more technical mixes of fibers. Their sales have increased by 8 percent in the last 12 months.
The French market is essentially saturated at the moment. Despite lower prices, sales by volume fell by 2 percent in the 12 months to Sept. 30, and most of the purchases have consisted of replacements of older products.
