Sporting Goods: Team Sports - US - August 2008

TABLE OF CONTENTS

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Inflation beating sales growth
• Team sales carry the market
• Baseball sales increasing despite declining interest in MLB
• Differences in retail purchasing substantial by gender, income
• Demographic outlook less than favorable
• Brand recognition more important than performance
• Market awaits expanded role from specialty players
• 18-24s, parents central buyers to focus upon in upcoming years
• Stereotypes holding up in regard to gender
• Small group of athletes at the heart of the market
• Internet campaigns warranted
• Taking marketing outside the box
• Market Size and Forecast
• Key points
• Baby boomers are aging, exiting the team sports arena
• Rise in popularity of extreme sports
  • Figure 1: Total U.S. sales and forecast of Sporting goods at current prices, 2003-09
  • Figure 2: Total U.S. sales and forecast of sporting goods at inflation-adjusted prices, 2003-09
• Competitive Context
• Video games
  • Figure 3: Adults and teens who own or play video games, key demographics, January-November 2007
  • Figure 4: Teens who play video games, key demographics, May 2006 - June 2007
  • Figure 5: Average hours spent playing video games per week, teens by gender, April 2007
• A home fitness fad for geeks
• More time demands on today's teens and children
• Exercise in health clubs (and at home)
  • Figure 6: Physical fitness venues, by household income, May 2006-June 2007
• Segment Performance
• Key points
• Athletic team goods make up the lion's share of the market
  • Figure 7: U.S. sales and forecast of sporitng goods at current prices, by segment, 2003-07
  • Figure 8: U.S. sales of sporting goods, by segment, 2005 and 2007
• Segment Performance--Athletic Team Goods
• Key points
• Decline in participation, spending for school sports programs
• Players focus on one sport
  • Figure 9: U.S. sales and forecast of athletic team goods, 2003-09
• Segment Performance--Individual Sales
• Overview
  • Figure 10: U.S. sales and forecast of athletics to individuals, 2003-09
• Baseball and Softball
• Key points
• Baseball's decreasing popularity
• Performance gear drives sales
  • Figure 11: U.S. sales and forecast of baseball and softball equipment, 2003-07
• Basketball
• Key points
• Basketball spectatorship on the rise
• Participation on the decline
  • Figure 12: U.S. sales and forecast of basketballs, 2003-07
• Hockey and Ice Skates
• Key points
• Hockey's popularity wanes as a spectator sport
  • Figure 13: U.S. sales and forecast of hockey equipment and ice skates, 2003-07
• Football
• Key points
• Increase in football spectatorship is reflected in sales of footballs
  • Figure 14: U.S. sales and forecast of football equipment, 2003-07
• Soccer
• Key points
• Soccer popularity on the rise
  • Figure 15: U.S. sales and forecast of soccer equipment, 2003-07
• Volleyball and Badminton
• Key points
• Volleyball sales weakest link in market
  • Figure 16: U.S. sales and forecast of volleyball and badminton equipment, 2003-07
• Retail Channels
• Purchase habits between men and women differ
  • Figure 17: Mass merchandisers and department stores where sporting good purchases were made in the last three months, by gender, January-November 2007
  • Figure 18: Sporting goods specialty stores where purchases were made in the last four weeks, by gender, January-November 2007
• Specialists have more draw with high-income groups
  • Figure 19: Mass merchandisers and department stores where sporting good purchases were made in the last three months, by household income, January-November 2007
  • Figure 20: Sporting goods specialty stores where purchases were made in the last four weeks, by household income, January-November 2007
• Married couples like specialists
  • Figure 21: Mass merchandisers and department stores where sporting good purchases were made in the last three months, by presence of children in household, January-November 2007
  • Figure 22: Sporting goods specialty stores where purchases were made in the last four weeks, by presence of children in household, January-November 2007
• Market Drivers
• Uniforms and protective gear
  • Figure 23: Ownership and recent purchase of uniforms and protective gear, by sport, June 2008
• Sizing up the market for uniforms: demographic differences
• Women
• 25-34s
• High-income households
• Teen spending is important... but will decline
  • Figure 24: Total U.S. teen spending at current prices, 2002-12
• An aging population
  • Figure 25: U.S. population, by age, 2003-13
• Race and Hispanic origin
  • Figure 26: U.S. population, by race and Hispanic origin, 2003-13
  • Figure 27: U.S. buying power, by ethnicity, 1990-2011
• Obesity further threatens sales, yet presents new opportunities
  • Figure 28: Prevalence of overweight and obesity among Americans, 1988-2002
• Sports specificity
• Aluminum bat backlash
• Attitudes toward Brands
  • Figure 29: Feelings about sporting goods brands, June 2008
  • Figure 30: Sporting goods brands, by changes in feelings, June 2008
• Special attention deserved by 25-34s
  • Figure 31: Positive changes in feelings towards sporting goods brands, by age, June 2008
• Brand Loyalty and Differentiation
  • Figure 32: Attitudes related to brand choice, by gender, June 2008
  • Figure 33: Attitudes related to brand choice, by age, June 2008
• Brand Qualities and Product Development
• Nike
• Wiffle
• Spalding
• Wilson
• Rawlings
• Mizuno
• Easton
• Adidas
• Innovation and Innovators
• Fastpitch softball grows up
• Branded balls
• Wood bat expanded options
• Wilson's "Green" Basketball
• Spalding Never Flat
• Advertising and Promotion
  • Figure 34: Advertising expenditures for selected sporting goods manufacturers, 2006-07
• Brand ambassadors
• Team and sport sponsorship
• Adidas all over the internet
• Nike looks beyond TV
• Reebok blurs lines between advertising and entertainment
• Mizuno changes tagline
• Spalding into mobile marketing, internet, and NoLa basketball
• Louisville Slugger do-goodery
• TV ad analysis
• Spalding
  • Figure 35: Spalding Never Flat Arenas and Young ad, 2007
• Easton
  • Figure 36: Easton baseball equipment
• Nike
  • Figure 37: Nike Scott Branding
  • Figure 38: Nike SPARQ Training
• Adidas
  • Figure 39: Adidas Reggie Bush Spot
• Participation and Ownership
• Participation declines with age
  • Figure 40: Sports played in past 12 months, by age, January-November 2007
• Ownership driven by presence of children
  • Figure 41: Sporting goods ownership, by age, January-November 2007
• Currently, participation favors men
  • Figure 42: Sports played in past 12 months, by gender, January-November 2007
  • Figure 43: Sporting goods ownership, by gender, January-November 2007
• The market for high-end training gear
  • Figure 44: Sports played in past 12 months, by household income, January-November 2007
• Building sales through socially-conscious marketing
  • Figure 45: Sporting goods ownership, by household income, January-November 2007
• Frequency of Participation, Purchasing, and Spend
• Small group of athletes at the heart of the market
  • Figure 46: Purchased team sports qeuipment in past 12 months, January-November 2007
  • Figure 47: Mean times team sports were played in the last year, June 2008
• Age key determinant in frequency of play
  • Figure 48: Mean times tean sports were played in the last year, by age, June 2008
• Sporting goods purchased in last 12 months, trended
  • Figure 49: Sporting goods purchased within the past 12 months, 2000-07
• Average spend
  • Figure 50: Sports equipment spending (mean), by demographic, June 2008
• It's for the Kids
  • Figure 51: Sports played/participated in, by presence of children, January-November 2007
  • Figure 52: Sporting goods ownership, by presence of children, January-November 2007
• Buying sporting goods for kids
  • Figure 53: Attitudes related to kids and sporting equipment, by gender, June 2008
  • Figure 54: Attitudes related to kids and sporting equipment, by age, June 2008
  • Figure 55: Attitudes related to kids and sporting equipment, by presence of children in the household, June 2008
• Trended ownership among teens
  • Figure 56: Sporting goods owned among teens, 2003-07
  • Figure 57: Sporting goods bought in the last 12 months among teens, 2003-07
• Ownership among teens by age and gender
  • Figure 58: Sporting goods owned among teens, by age and gender, January-November 2007
  • Figure 59: Sporting goods purchased in the last year among teens, by age and gender, January-November 2007
• Trended ownership among children
  • Figure 60: Sporting goods owned among children, 2003-07
• Ownership among children by age and gender
  • Figure 61: Sporting goods owned among children, by age and gender, January -- November 2007
• Attitudes and Motivations
• Motivations for playing
  • Figure 62: Attitudes related to benefits of sports, by gender, June 2008
• Socializing and dating through team sports
  • Figure 63: Attitudes related to benefits of sports, by age, June 2008
• Methods of participation
  • Figure 64: Ways of playing sports, by currently play, would like to play, or not interested, June 2008
  • Figure 65: Ways of playing sports, by gender, June 2008
  • Figure 66: Ways of playing sports, by age, June 2008
  • Figure 67: Ways of playing sports, by presence of children in household, June 2008
• Reasons for not playing sports
  • Figure 68: Reasons for not playing sports, by age, June 2008
• Race/Ethnicity
  • Figure 69: Sports played/participated in, by race/ethnicity, January-November 2007
  • Figure 70: Sporting goods ownership, by race/ethnicity, January-November 2007
• Spend
  • Figure 71: Sports equipment spending (mean), by race/ethnicity, June 2008
  • Figure 72: Positive changes in feelings towards sporting goods brands, by race/ethnicity, June 2008
• Appendix
• Previous and current team sports involvement by gender
  • Figure 90: Current and historical relationship to team sports, by gender, June 2008
  • Figure 91: Current and historical relationship to team sports, by age, June 2008
• Current team sports participation, by income
  • Figure 92: Ways of playing sports, by household income, June 2008
• Appendix: Trade Associations