According to research by the NPD Group, the sporting goods market didn’t grow in 2008 – but on the other hand, despite the global economic crisis, it didn’t shrink, either. In terms of U.S. dollars, sales of sports equipment, apparel and footwear to consumers remained steady at $284 billion, after growing by 4 percent in 2007.

Europe saw a 1 percent decrease in sales, as did the Americas, led by a 2 percent fall in the U.S. market. Increases of 4 percent in Asia and of 7 percent in the Middle East/Africa helped offset the drops. Sales in China alone jumped by 15 percent, which NPD attributes to a growing middle class with more disposable income, as well as the benefit of the Beijing Olympics.

Growth was seen in “sport use” apparel and footwear, in contrast with lifestyle products, and in other technical products for running, walking and hiking, swimming, cycling, fitness, football and snow sports (with the latter getting a boost from snowy winters). However, declines were recorded for golf, basketball, tennis, hunting and fishing.

The stagnation of the industry stretched across all categories: Footwear and equipment had a 0 percent growth rate, while apparel fell by 1 percent. Bikes were the only bright spot with an increase of 4 percent (see also our chart on page 3).
In Europe, sports apparel took a hit, falling by 4 percent, while footwear stayed flat, bicycles and accessories increased by 2 percent and other types of sports equipment grew by 1 percent.

According to NPD, attempts to boost the women’s market in Europe have been problematic, attributed to a greater number of women in the workforce; combined with taking care of children and the household, they don’t have time to work out or pursue sports. In addition, cultural boundaries keep some sports from gaining in popularity. The study cites the unlikelihood of getting Europeans to appreciate baseball, for example, just as Americans have never really warmed to football.

Bikes and accessories grew by 2 percent in the U.S. and other parts of the Americas. Footwear was down there by 3 percent, indicating perhaps a saturation of the market. Apparel was flat and other kinds of sports equipment fell by 3 percent.

The Middle East and Africa were positive across the board, with 8 percent growth in footwear, 6 percent growth in apparel, a 6 percent rise in equipment and a 7 percent increase in the bike category. Asia also saw growth in all categories if not as significant: 4 percent for footwear, 1 percent for apparel, 4 percent for equipment and 6 percent for bikes.
Looking ahead to what may happen in 2009, NPD did not offer any quantitative projections in the press release

announcing the new study. It said it expects more consolidation in Europe on the manufacturing side, especially in outdoor products and swimwear. It points out that many medium-sized brands and retailers are suffering from Décathlon’s expansion and from the proliferation of single-brand stores. Struggles by smaller groups and independent shops could work to benefit large groups such as Intersport and Sport 2000.

NPD questions whether Europe’s direct-to-consumer channel can maintain the significant growth it has achieved recently. Because online shoppers are often looking for the cheapest prices, this means lower margins for the seller. And there will always be the issue that some buyers want to see and touch the actual product before buying it. This applies to equipment, but apparel and footwear as well, as consumers often want to try on their potential purchases.

Finally, China may have hit its peak. NPD notes that China is suffering heavily because of the economic downturn, with a drop in exports that is not being compensated for with business at home. Excess stock of Olympic products is a problem for retailers as well.