Handbook 2009
Transcription
Handbook 2009
FOREWORD - Table of contents FOREWORD Table of contents Dear readers, Main chapters & Highlights We are pleased to present you a new version of the WFSGI International Handbook : a new size and a new design for easy and enjoyable reading! This handbook is dedicated to several subjects with internal and external contributions on themes and issues the WFSGI committees are dealing with all year long. You will find 6 sections in this handbook : Corporate Responsibility, Intellectual Property Rights, Trade cases, International Sports Federations and Olympic topics and Industry Federations and Manufacturers themes. In the table of contents below, we have chosen to highlight a certain number of articles in each section to give you a first glance of what can be found in the handbook. We are convinced that you will find several articles of interest which can serve you in your daily activity. We wish you a nice time reading. With best regards, The Editorial Team Message President p. 2 Message Secretary General p. 6 WFSGI Presentation p. 8 Corporate Social Responsibility p. 29 •Engagement in energy issues •Response to upcoming challenges of global energy issues •Back to basics in managing energy use •Energy efficiency and the WFSGI •Unite to combat climate change Intellectual Property Rights p. 67 •IPR – the way to become a global brand •Intellectual Property Disputes - How the WFSGI can help Trade Cases p. 87 •What a successful Doha Round means for the sporting goods industry •Perspectives for global trade in the early 21st century expect very turbulent times ahead International Sports Federations and Olympics p. 94 IMPRESSUM Published by : Editor : WFSGI Headquarters Layout : Pulsion, Agence de Communication SA Lausanne - www.pulsion.ch Printing : PCL WFSGI Maison du Sport International Avenue de Rhodanie 54 1007 Lausanne Switzerland Ph : +41 21 612 61 61 Fax : +41 21 612 61 69 www.wfsgi.org - [email protected] •The impact of the 2008 Olympic Games •Youth Olympic Games add a new dimension to the Olympic ideal •Healthy Sport in a Healthy Society Manufacturers Advancements p. 112 •IMAC – Independent Monitoring Association for Child Labour •Why a Labour Contract Law in China? Federations Involvment p. 125 •The sport of politics : leveraging Sporting Goods industry assets to promote a public policy agenda Cover : © Erik Kolstad - Fotolia.com 1 WFSGI Handbook 09 MESSAGE FROM THE PRESIDENT MESSAGE FROM THE PRESIDENT MESSAGE FROM THE PRESIDENT John Larsen, President Emeritus New Balance Athletic Shoe, Inc. & Director New Balance (UK), ltd. Today is the 30th anniversary of the first General Assembly of the World Federation, which was convened on September 30, 1978 at 10:30 a.m. at the SPOGA Fair Grounds in Cologne, Germany. Armin Dassler of Puma was the Chairman of the “Committee of Nine”, the far sighted group whose vision led to the creation of our Federation. Frank Dassler, Armin’s son, continues the family tradition as a very active member of our Executive Committee. Kihachiro Onitsuka of ASICS, our recently deceased honorary President, represented Japan. Benjamin Liu represented Taiwan and his company, Poyang International. Benjamin is a valued Director and member of our Manufacturer’s Forum. He is also the only active member who attended that first meeting. Twenty one countries were represented. Fifteen had voting rights – one per country. charter “to encourage and promote the spirit of legally permissible cooperation among sporting goods manufacturers worldwide...” is still the glue that holds us together. Armin Dassler summed up the rationale for founding the World Federation in his welcoming speech to the General Assembly. The relevance of his vision to our current world situation is uncanny. The first words he spoke after thanking the “Committee of Nine” were about the 1978 monetary crisis and the importance of an international voice for our industry. While the mission of WFSGI largely remains unchanged, the industry and WFSGI’s role in the industry have dramatically changed. It is both appropriate and instructive to look back to the thinking behind the founding of the World Federation and then consider relevance of that thinking today and for the future. Most brands have either shut owned and operated factories or drastically cut back in favor of importing from developing countries. This dramatic change to the industry supply chain set in motion most of our recent growth opportunities. It has also been responsible for many of the social and trade issues that have accompanied this change. WFSGI has reacted to develop industry solutions. © Jochen Schaefer tion was done locally, though Taiwan and Korea, (and Japan before) were increasingly important source countries for our products. Many of us sold our products only in our home country, but we were beginning to think internationally. As incredible as it now sounds, China was not a factor in our equation. Today, one third of the World’s shoes are made in Guangdong Province. And most brands are fighting for a share of China’s large and growing consumer base. Armin continued his remarks with the following comments on fair trade: “If one country opens its borders for the goods of the other, the other country should also open its borders. However we must realize that a worldwide free trade can only exist for a long period if it is a fair trade. As long as the wages are different in the various countries, the trade is not really fair. I do know, as I said at the beginning, that we probably cannot change much in the present world. But somewhe(re) someone must start thinking about these problems and try to change the little piece of world he controls. This to achieve is certainly the most sophisticated target for this World Federation.” For the past 30 years we have worked to expand that little piece of the world we control. And that little piece has grown significantly larger in size and global influence. Our influence reaches across continents into the lives of millions of families. With that change, our implied responsibilities have shifted from local issues alone to both global and local issues. Social and trade issues in our sourcing and operating countries have taken on much greater significance in our lives. In 1978, the Sporting Goods business was both simpler and more difficult. Do you remember Telex? Do you remember how difficult it was to make international phone calls? There were no faxes or mobile phones much less email. Do you remember bumpy roads and cold hotels in some developing countries? Do you remember the trade show wars? Do you remember the retail landscape before it was dominated by large chain retailers? Do you remember when athlete endorsements were affordable? And when there was no European Union? And when Viet Nam was war torn and not a trading partner? Do you remember when Nike was just another small business with a good idea? Our way of doing business then was simple and personal. Most of our companies were privately held and the owners represented their companies at the Federation meetings. Our customers, our endorsers and in some cases our competitors were our friends. Much of what we did then with difficulty, is now much easier; and some of what was simple then, is now more difficult and expensive. Largely speaking, our world is less personal. Through it all, WFSGI has persisted and our He opened his speech with comments on the value of collective action. He said: “We are meeting today at a time where the international monetary situation like an earthquake shakes millions of people. We Sporting Goods People are only small kids compared with those giants who control most of the international trade. But we must not be naive to believe that we can change much. But with a World Federation, the first one to be founded, at least one of the first international manufacturers Associations, we could provide us with a powerful voice, a voice, which will be heard.” In 1978 the globalization of our industry was in the early stages, but our founders clearly saw what lay before us. In 1978 most of our produc- © CSGF In 1978 we paid scant attention to the suite of factory initiatives we now address under the heading of “corporate social responsibility”. Today we take seriously our role for assuring factories comply with local labor laws and proactively work to contain environmental damage and improve health and safety conditions in the workplace. WFSGI, through its members, has taken a leadership role in this movement.In 1998, we collaboratively worked on programs with Pakistan and India to eliminate child labor in the football industry. These, and other initiatives, continue to evolve. The Manufacturer’s Forum, within the WFSGI, has been established to assure there is an effective dialog between brands and manufacturing partners. With the establishment of the Forum, we are making the statement that all stakeholders in our industry have an important voice. This is an opportunity to more effectively address our common concerns. There will be conflicts. But in the end, the result will be better. As he continued his opening remarks, Armin alluded to just such a situation in the advice he gave to the General Assembly. He believed WFSGI provided a venue for our global industry to discuss common problems and concerns and a platform to work together for solutions. He makes the case better than I possibly could. He said: WFSGI Handbook 09 3 “...we must carefully think and plan in order to be understood and accepted. We must first of all understand ourselves why we want to found this federation.” easily communicate with one another through our formal meeting structure and through informal private discussions is invaluable. “The most important reason for us is in my opinion the simple fact that we are developing an organization, where we can meet, where an American manufacturer can speak with a colleague from India and where a Japanese sporting goods manufacturer can exchange his thoughts with one from Europe. We all have common problems. We all produce something for the same market. We all need human assistance, we need machines, we sell to the same dealers, we have our troubles with our or our competitors’ promotion, with amateurs or professionals. Someway or the other we are in contact with Sports Federations, with Olympic Games or with World Championships. This World Federation is the place to meet and to discuss these problems. It is the place where we must stick together, where one manufacturer must help the other if he wants the other one to help him. It is here, where we must forget our competition and be aware that everyone of us wants to live, that all of us have responsibility towards thousands or people who work for us, who have put their fortune in our hands.” Our members are concerned about waste management; they build products from recycled materials; they scrutinize their products for chemicals that pollute the atmosphere or cause potential harm to their customers. They are working to assure product safety legislation is properly crafted. Every part of the supply chain is analyzed in depth to assure waste is minimized. WFSGI is the central clearing house and the vehicle to communicate and promote these industry best practices within our membership. The most important reason for us is in my opinion the simple fact that we are developing an organization, where we can meet, where an american manufacturer can speak with a colleague from India and where a Japanese sporting goods manufacturer can exchange his thoughts with one from Europe. armin Dassler The World Federation still provides the most effective vehicle for collectively dealing with these issues. It is increasingly clear that even the largest companies in our industry benefit from collective action. For this reason, they are willing to lead and share their experiences and resources for the benefit of the industry. The learning opportunity can be massive for smaller companies; and the larger companies will benefit from collective solutions to common problems. The ability to Our members work with their factories on lean manufacturing concepts – many of which have been developed by Toyota. The goal is to help factories improve efficiency, eliminate waste and improve working conditions. Most enlightened brands treat their factories as partners. Factory problems are brand problems. For example, we are developing programs that will lead to more energy efficient factories. We believe we can demonstrate that significant cost reductions are available to most factories. This will not only reduce costs but have a positive impact on the environment. As we look forward, we know our world will be different 30 years from now, just as it was 30 years ago. As those changes become apparent, the specific activities of the Federation will also change. In some cases the changes will hit us hard and fast; in other cases they will evolve. In all cases the changes will have ever increasing global implications for which we must be prepared. The challenge for WFSGI will be to identify the issues and properly set our priorities. We must lead the industry in developing best practice solutions to global industry concerns. Armin Dassler set the tone for the Federation agenda in his September 30, 1978 welcoming speech. During the past 30 years we have tried to follow his sage advice. Our successes came from our ability to communicate with each other, which resulted in acceptable solutions to our common problems. Our future successes will happen the same way. September 30, 2008 © 2008 adidas AG. adidas, the 3-Bars logo and the 3-Stripes mark are registered trademarks of the adidas Group. MEssaGE FROM THE PREsIDEnT Nature should never dictate how far we can go. Which is why the waterproof Terrex ClimaProof® shoe comes with a Winter Grip outer sole – its spikes get harder when it gets colder; so you can get bolder. adidas.com/outdoor MEssaGE FROM THE sEcRETaRy GEnERal MEssaGE FROM THE sEcRETaRy GEnERal MeSSaGe FROM THE sEcRETaRy GEnERal robbert de Kock, WFSGI Secretary General As in the last edition I would like to start by wishing you all the best for 2009. It is probably hard to predict the actual economy but I sincerely hope that we will not have so many surprises and stock exchange drops as in 2008. On the other hand, it shall be obvious that the “after wave” will start touching our sporting goods industry in 2009 and I sincerely hope you are prepared for it the best way possible. We also wish to thank all our WFSGI members for their special financial support we enjoyed in the second half of 2008. Without this support we would not have been able to execute our plans and to prepare the future of the federation. And there is a great future! Our deepest thank you! We also welcome our new members. Stay with us, there is much more to come. As you can read from John’s message, the WFSGI lived through 30 years of enormous economic and technological development. In my message, I wish to concentrate on a glance back of our 30th Anniversary year “2008” and the challenges for 2009 with the motto “Let’s start to walk before we start to run”. We started in the beginning of 2008 with a complete new team. The team had a most difficult task to explain the financial situation during our General Assembly in January 2008. With the professional guidance of the board we were able to find a solution where the burden was limited thanks to the full support of our members. At the General Assembly meeting we received a positive commitment from Frank Henke (adidas group), as our new CSR Chairman, replacing Lesley Roberts from Pentland (enjoying a sabbatical) where we identified new directions and scope for the CSR committee. An interesting direction was the launch of our Energy Efficiency program and the new project leadership by various members of the committee for CSR related projects. Another new development was the Manufacturers Forum, under the leadership of Pashi Sondhi (PC Sondhi-India). We created a specific platform for manufacturers to express their concerns and to link this forum with all WFSGI committees and to translate the various needs in a streamlined way. The Forum is also extremely interesting for the committees when it comes to the implementation and feedback of the various programs, if this is Energy Efficiency, Social Compliance, trade issues or legal issues. From left to right : George Wood (TsMa), Masato Mizuno (Mizuno), Jochen schaefer (WFsGI legal counsel) and his partner, Robbert de kock (WFsGI secretary General) / © Peter Thürl Meeting with RasIE during IsPO Winter 2008 / © Peter Thürl The Trade Committee, chaired by Brad Figel (Nike Inc.) is new as is the Federations Committee with Tom Cove (SGMA) as chairmen. The challenges are much bigger here because these committees handle cases where it is hard to see direct results. They lobby, exchange and support on local and regional level with governments and other political organizations. It is essential that these people remain active to defend the interest of our industry and to inform us on the challenges we face in the coming years. I remember talking to an industry executive from a rather large company telling me; “Why shall I be involved, we are not big enough to do something on government level”. Well, we can and we do make a difference, both on local, regional, as well as on world level! Our industry represents over USD 280 billion and that is a significant number to tell people about our cause. We thank Brad, Tom and their committee members for their continuing fight for our industry. WFsGI members in front of the bird nest (beijing) during the WFsGI meetings in May 2008 / © csGF counsel, who has given a new breath to the IPR committee by reevaluating the past process and redefining the needs of the industry. It leaves me to thank Dr. Jochen Schaefer, chairman of the IPR committee, and WFSGI legal Last, we welcomed a new chairman for the Committee of International Sports Organizations (CISO) in the person of Marius Rovers (President of Sport 2000 International and General Manager of Euretco Sport Netherlands). With his team we have been able to initiate higher level discussions with the IOC and several International Sport federations. We are also extremely pleased to count on the support of sport companies in this committee, such as adidas, asics, li ning, nike, new balance, mizuno, pentland group, puma, salomon, sport2000, ski racing supplier, technical group and under armour. The next challenges will be new agreements and collaborations with the IOC and several IF’s such as FIFA. As you can see we will have a very challenging year 2009. To start with, we will decide on a new membership fee structure during the General Assembly, as the current structure is for 2008 only. The proposal looks promising. We are convinced that the improved communications, the sharing of best practice solutions and new programs add real value and are in the interest of all members. In 2009 we will additionally start with the roll out of the Energy Efficiency program, continuing support on Social Compliance, the new agreement with the IOC, an outline of the new trade challenges for 2009, the activities of the Manufacturers Forum and many other interesting targets. Especially I wish to announce our new CSR Forum around September 2009 where we will invite all our members and their manufacturers to join us. Details will follow. After such a long welcome message I can only ask you to visit our website for more details on the 2009 programs and to wish you all a financial stable and healthy 2009. WFsGI HanDbOOk 09 7 COMPANY PROFILE COMPANY PROFILE COMPANY PROFILE What is the WFSGI? • • • • We are an independent association formed by sports brands, manufacturers, suppliers, retailers, national federations and all sporting goods industry related businesses. We are the world authoritative body for the sports industry. We are a non-profit organization and does not pursue any objective of economic character for its own gains. We are officially recognized by the IOC as the industry representative within the Olympic family. What is the role of the WFSGI? • • • • • • We play a strategic role in the support and promotion of the sporting goods industry world-wide by providing the forum in which the countries of Europe, Asia, North and South America and Oceania forge the tools of their cooperation to promote the well-being of mankind through the practice of sports and where our activities range from promoting free and fair trade to contributing to increase the sport participation in the world. To promote and facilitate free and fair worldwide trade and the exchange of sporting goods manufactured and /or sold by its members. Sporting goods shall be defined as including any merchandise or other products connected with sports. To foster and encourage the development, compilation and enforcement of international industry standards, principles and methods with the objective of improving the quality of sporting goods products, and of manufacturing processes (which includes, without being limited hereto, environmental, ethical, and sportsspecific aspects, as well as issues relating to the protection and enforcement of intellectual property rights). To provide information and statistics in all fields of interest in particular for, but not limited to the World Federation’s membership. To consult on and co ordinate dates and places of international trade fairs and exhibitions, and, within the limits of permissible applicable laws and its capabilities, be active and supportive in all areas which are of legitimate use and benefit for the members of the World Federation and for the international community of the sporting goods industry in general. To represent the sporting goods industry at all international sports organizations and federations, governmental and intergovernmental bodies at international level. To encourage and promote the spirit of legally permissible friendly co-operation among the sporting goods industry and trade and all other sports-related bodies worldwide, such as the exchange of information, mutual assistance, peace and understanding and fellowship among members and in particular exercise efforts to ensure best practice by its members. Trade Committee • • • • To mediate and settle any dispute that may arise between members, if called upon to do so. To do all other things that may be legally permissible so as to foster the objectives of the World Federation. To foster and encourage the participation of citizens of all countries in healthy sporting activities; and where practical, financially viable and approved by the World Federation to provide the means for such activity. To help create a better world through sport. How does the WFSGI work? The WFSGI is composed of 6 Committees which exchange information on various issues and topics : CSR - Corporate Social Responsibility Committee The CSR committee is focusing on global societal, social and environmental trends like climate change, resource depletion, labour and health issues. Its work is targeted at developing and promoting an understanding within the World Federation about the relevance of global social and environmental challenges for each individual member company offering members an opportunity to tackle challenges through guidance and sharing best practice services, Supporting members in identifying synergies to tie resources and enhance leverage through collaborative work. Some programs for 2008-2011 are : • building platforms to share best practice • providing guidance on relevant industry initiatives (Energy Efficiency, Carbon dis closure, Harmonization of Audit processes) • providing guidance on specific social and environmental issues (labor inspections, restricted substances management) • participating in concerted efforts to eliminate child labor in the football stitching industry • establishing frameworks for partnerships • engaging with supranational organizations and NGOs to represent the industry position • CSR Forum 2009 - Singapore (for members and their suppliers only). The Trade Committee, created in 2007, is focusing on international trade issues facing the global sporting goods industry, including eliminating trade barriers, defending against trade cases, examining new product safety and testing requirements, removing restrictions that impact WFSGI member company’s supply chains, supporting international trade agreements that benefit the global sporting goods industry via : • International Trade Agreements (global, regional and bi-lateral) • International Trade cases (e.g. anti-dumping, safeguards, customs reclassifications and countervailing duty cases etc.) • China – Product Safety/Testing Initiative • Supply Chain (port security and infrastructure congestion and development • Trade Litigation Training Program • IOS/CE standardization project (with DIN) to be extended to USA and other regions • US Consumer Product Safety Regulations. benefit to all WFSGI members and the sporting goods manufacturers’ community at large. • IOC Manufacturer Identification Guideline Project • Project to increase brand exposure at IOC and IF events • Negotiate with the IOC on kit and advertisement regulations (Rule 41/51) • Reinforce IF contacts and involvement with kit rules and regulations (FIFA/UEFA/IAAF etc.) • Manage Olympic Ticketing and Technical Accreditations. IPR - Intellectual Property Rights Committee The IPR Committee is there to keep WFSGI membership informed in a proactive manner on international developments and matters in legal, legislative and trade related areas. To define and recommend concrete strategies and instruments to the WFSGI members for a more efficient protection of the intellectual property rights of the WFSGI members; To educate members on matters of special interest in the area of law and international institutions such as WTO, WIPO, etc.). Some projects are : • WFSGI security label/device project • WFSGI Web Monitoring program • WFSGI best practice risk management and document retention program • Educational activities and best practices in the area of IP protection and enforcement in China • Cooperation with the world customs organiza tion in the area of customs authorities’ training. CISO - Committee of International Sport Organizations The CISO represents the WFSGI as the industry consensus voice to all sports federations and organizations, promoting maximum and equal Headquarters of the WFSGI in Lausanne / © Hugues Siegenthaler Federations Committee The Federation Committee is a new committee, created in 2008, to enhance the collaboration of WFSGI with its regional and national sporting goods industry member federations, to promote improved information exchange and mutual assistance amongst the federations themselves. To provide a platform for the global, regional and national federations to develop, exchange and promote best practices, industry trends, market research, collaborative programming and problem solving. Projects here are : • Product Classification Key project (based on FEDAS) • Identification of Federations’ Critical needs • International Trade Policy-Global Reduction of Sporting Goods Tariffs Initiative • Exchange of Best Practices in Supply Chain Management • Sharing of Federation-Generated Market Research • Improved Information Exchange between WFSGI and Member Federations • Evaluation/Study on a specific Manufacturer ex change platform (committee or sub-committee). WFSGI Handbook 09 9 cOMPany PROFIlE Manufacturers Forum • A new committee created from manufacturers for manufacturers. The Manufacturers Forum aims at creating a positive synergy between manufacturers and brands by : • beingthevenueforthemanufacturingcommunityandtheiragents to raise issues and show concern • beingasoundingboardforthebrandsbecausetheyneedtoknow what is possible / what is not and how things can be done. • understanding the constantly changing generic requirements of the brands and circulate those to the members of the Forum • being a bridge between manufacturers and brands to have the ideas flow in both directions • sharingandcirculatingknowledgeamongtheForummemberson issues such as health & safety, hazardous materials, Corporate Social Responsibility and environmental issues, etc. structure of the WFsGI Global solution through international teamwork. WFsGI susTaInInG MEMbERs wHat does tHe wFsGI oFFer to Its members? • TheWFSGIdistributesexclusiveinformationto its members on economic figures, new laws and regulations, events, etc. • TheWFSGIkeepsitsmembersupdatedonall national and international developments in product standardization for sports equipment (ISO or CEN standards related to the sporting goods industry) and product safety. • The WFSGI publishes a list on developments on restricted substances as well as updated information on REACH regulations. • TheWFSGIorganizesworkshopsonimportant projects like energy efficiency, waste management, human resources management, etc. • The WFSGI negotiates with the International Sports Federations on the products regulations and defends the industry’s interest : the WFSGI also takes part in the preparation of the Manufacturers Identification Guidelines which is the reference document published by the International Olympic Committee to regulate the equipment during the Olympics; the WFSGI is present during each Olympic Games to support and defend its members in case of dispute with the organization committee. • TheWFSGIoffersassistanceinfightingproduct counterfeiting and trademark infringements and help with all matters of product liability and product discrimination ; the WFSGI also provides legal advice and assistance through our international network of expert legal counsels and mediation service in legal disputes. • Alltheexclusiveinformationmentionedabove is available in a special section on the WFSGI website called “Members Area” only accessible by the WFSGI members: members can find exclusive information on various issues like CSR (including standardization, REACH, restricted substances), Trade, relations with IFs, but also a directory with contacts of all WFSGI members, being major companies of the sporting goods industry: brands, manufacturers, retailers and distributors. • Etc. WFSGI susTaInInG MEMbERs Sustaining membership may be obtained by any member who demonstrates a specific high degree of identification with the WFSGI and its objects. This status is divided in three levels : gold, silver and bronze (with respective services). More on www.wsfsgi.org ! WFSGI - Global solutions through international teamwork 11 WFsGI HanDbOOk 09 WFSGI Code of Conduct WFSGI Code of Conduct WFSGI Code of Conduct Guiding Principles - As accepted by the General Assembly in Munich on August 5th, 2000 Where the right to freedom of association and collective bargaining is restricted under law, the employer shall consider the development of parallel means for independent and free association and bargaining. Wages Introduction The World Federation of the Sporting Goods Industry (WFSGI) was formed in 1978 to promote the world’s sporting activities, to standardize the size of equipment and the rules of sport, to improve the standards of quality for sporting goods and to promote fair trade in sporting goods internationally. WFSGI currently consists of a diverse membership from over 50 countries including large international sports companies and small national companies; companies that serve as suppliers to other companies and companies that market directly to consumers. Also represented are the federations of the sporting industries of individual countries whose members contribute to a total of over 12,000 enterprises employing many hundreds of thousands of people -, which are affiliated to WFSGI in some way. The WFSGI’s Committee on Ethics and Fair Trade (CEFT) developed a Model Code of Conduct in 1997 following consultation with its constituent federations and other members, and on going dialogue with international agencies and non-governmental organizations. The Code was designed as a model for companies committed to ensuring that their operations satisfy the highest ethical standards in the global marketplace, and since 1997 many members companies have introduced their own codes and are monitoring compliance with those codes using internal and external monitors. In view of developments in thinking and dialogue on international trade since 1997, and as a result of further dialogue with external organizations representing the rights of workers and children, WFSGI has decided to revise the Code in 2000. Preamble The ideals of the WFSGI are the ideals of sport, and the organization seeks to promote fairness, honesty, mutual understanding and high ethical standards not only on the sports field but also in the factories which make sports products. WFSGI members recognize the important role they play in the global economy and their influence on the social and economic conditions under which sporting goods are manufactured and produced. That influence is exercised both through their actions as employers and far more profoundly through their decisions as customers of companies that serve as suppliers of goods and services. The relationship between WFSGI member companies and their suppliers, and in turn any sub contractors involved in the production process, must be based on trust, mutual respect and common values. WFSGI is committed to fostering a sports industry in which member companies actively build business partnerships with those who share the values of sport and take responsibility for making the values real through active engagement. These Principles are based on the international labour standards outlined in the relevant Conventions of the International Labour Organization (ILO). WFSGI also acknowledges that companies operate under different legal, economic, social and cultural environments and these differences merit understanding and respect. Members must ensure that all activities related to the production of their goods at least comply with all relevant applicable mandatory legal requirements. Legal Compliance Member companies and the companies that produce goods for them (“employers”) should operate in full compliance with national and local laws, rules and regulations relevant to their business operations. Working Conditions Local industry standards should prevail when higher than the local legal requirements. In countries where the legal requirements fall short of internationally recognized standards, it is recommended that members should apply the following minimum criteria: Forced labour Employers shall not use forced labor, whether in the form of prison labor, indentured labor, bonded labor, or otherwise. No employee can be compelled to work through force, the threat of force, or intimidation of any form. Non-Discrimination No person shall be subject to any discrimination in employment, included in hiring, salary, benefits, advancement, disciplines, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin. Freedom of Association and Collective Bargaining Employers shall recognize and respect the rights of workers to join workers organizations and associations of their own choosing, and to bargain collectively. Employers recognize that wages are essential to meeting employees’ basic needs and that employees should be fully compensated for all time worked. In all cases, wages must equal or exceed the minimum wage or the prevailing industry wage, whichever is higher. In addition to their compensation for regular hours of work, employees shall be compensated for overtime hours at the premium rate legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate exceeding their regular hourly compensation rate. Hours of work Workers shall not be required, except in extraordinary business circumstances, to work in excess of 60 hours per week, including overtime, or the local legal requirement, whichever is less. Employees shall be entitled to at least one day off for every seven day period. Benefits and Leave Each employee will be provided all legally mandated benefits. These may include meals or meal subsidies; transportation or transportation subsidies; other cash allowances; health care; child care; emergency, pregnancy or sick leave; religious, or bereavement leave; and contributions for social security and other insurance, including life, health and employees compensation. accidents, and toxic substances. Lighting, heating and ventilation systems should be adequate. Employees should have access at all times to sanitary facilities, which should be adequate and clean. The factory must have safety and health policies and procedures that are clearly communicated to the workers. These should apply to employee residential facilities, where provided by employers. Harassment or Abuse Every employee should be treated with respect and dignity and have the right to a workplace free from physical, sexual, psychological or verbal harassment or abuse. Environmental Protections Members should aim for progressive improvement in their environmental performance, not only in their own operations, but also in their relationships with partners, suppliers and subcontractors. This includes : • Integrating principles of sustainability into business decisions. • Responsible use of natural resources such as land, soil, energy and water • Reducing, minimizing and avoiding pollution and waste including solid, liquid and atmospheric conditions. • Designing and developing products, materials and technologies according to the principles of sustainability. Community Involvement Employers recognize the economic and social impact of their work and are committed to improving conditions in the wider community. Company Specific Standards Members are encouraged to draw up their own specific code of ethical conduct, if they have not already done so, building on the above standards. Verification No person shall be employed at an age younger than 15 (or 14 where the law of the country of manufacture allows) or younger than the age for completing compulsory education in the country of manufacture where such age is higher than 15. These Principles have been adopted by WFSGI to provide guidance for individual companies in ensuring that their products are made under fair factory conditions. Members are encouraged to establish their own internal management systems to monitor the standards outlined in their own code of conduct and to implement action plans for continuous improvements in factory working conditions in their own operations and those who supply them. Members are also encouraged to have factories monitored by appropriately qualified external third party organizations. Health and safety Compliance A safe and hygienic working environment shall be provided, and occupational health and safety practices which prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of employer facilities shall be promoted. This includes protection from fire, Members shall take steps to ensure compliance with these standards in their own operations and those who supply them. Where there are instances of non compliance [e.g. significant and/or persistent breaches] whether found by internal or external monitors, members shall ensure timely and reasonable remediation of such non compliance; and ensure that adequate steps are taken to prevent recurrence and/or occurrence in other factories. Child labour WFSGI Handbook 09 13 Becoming a WFSGI member! Becoming a WFSGI member! Becoming a WFSGI member! Wish to be in the heart of the industry ? Join us! Your daily business is to build and run a sporting goods business, our business is to help you by coping with the global challenges. Join us! Why becoming a member ? • The WFSGI distributes exclusive information to its members on economic figures, new laws and regulations, events, etc. • The WFSGI keeps its members updated on all national and international developments in product standardization for sports equipment (ISO or CEN standards related to the sporting goods industry) and product safety. • The WFSGI publishes a list on developments on restricted substances as well as updated information on REACH regulations. • The WFSGI organizes workshops on important projects like energy efficiency, waste management, human resources management, etc. Membership categories • The WFSGI negotiates with the International Sports Federations on the products regulations and defends the industry’s interest : the WFSGI also takes part in the preparation of the Manufacturers Identification Guidelines which is the reference document published by the International Olympic Committee to regulate the equipment during the Olympics ; the WFSGI is present during each Olympic Games to support and defend its members in case of dispute with the organization committee. • The WFSGI offers assistance in fighting product counterfeiting and trademark infringements and help with all matters of product liability and product discrimination ; the WFSGI also provides legal advice and assistance through our international network of expert legal counsels and mediation service in legal disputes. • All the exclusive information mentioned above is available in a special section on the WFSGI website called “Members Area” only accessible by the WFSGI members : members can find exclusive information on various issues like CSR (including standardization, REACH, restricted substances), Trade, relations with IFs, but also a directory with contacts of all WFSGI members, being major companies of the sporting goods industry : brands, manufacturers, retailers and distributors. 1.Full member : • National or Regional Organizations : National or regional organizations constituted and recognized as national or regional sporting goods governing bodies in any country throughout the world. • Industry Suppliers : Brands, manufacturers, suppliers and/or distributors (including licensing, franchising and retail businesses of sporting goods and services). • Industry Supporters : Recognized federations, associations and or firms related to the sporting goods industry (such as trade fair organizers, consultancy companies, etc.) which are not directly engaged in the manufacturing, supply or trading of sporting goods and services. 2.Associate member : • International Sports Federations or Associations : Associations or federations with close links to the sporting goods industry, provided they are internationally recognized bodies and/or institutions. 3.Additional membership : Sustaining member This status may be obtained by any member who demonstrates a specific high degree of identification with the WFSGI and its objects. This status is divided in three levels : gold, silver and bronze (with respective services). For more information call us on : +41 21 612 61 61 or drop an e-mail : [email protected] 15 17 WFSGI Handbook 09 bOaRD - EXEcuTIVE MEMbERs bOaRD - EXEcuTIVE MeMbeRS Board of Directors (2007 – Jan 2011) PresiDent •John Larsen Vice-PresiDents Representing Europe : •horst WiDmann Representing America : •tom coVe Representing Asia : •masato mizuno President Emeritus New Balance Athletic Shoe, Inc. & Director New Balance UK, Ltd. Vice-President Puma, President FESI President SGMA Chairman Mizuno Corp. BoarD memBers rePresenting euroPe •aLBerto Bichi Secretary General FESI •Frank DassLer General Counsel adidas Group •Jean-cLauDe FauVet Senior Executive Vice President Lacoste •giancarLo zanatta President The Tecnica Group •Position vacant (election in January 2009) BoarD memBers rePresenting america •kiLLick Datta Chairman and CEO, GBMI •rauL hacker President Speedo Brazil, President ABIAE •gumercinDo moraes neto Representing Alpargatas •LinDsay steWart Vice-President and Chief of Staff, Nike Inc. •Position vacant (election in January 2009) BoarD memBers rePresenting asia •nouman Butt Director Capital Sport, representing SCCI •BenJamin Liu President, Poyang International Co. Ltd., Executive Director TSMA •Liu Jun Vice-President CSGF •hirotaka miyaJi Director General JASPO •o-sung kWon President Vivasport, President KOSPA •aniL sharma President AKAY International, representing SGEPC If you are looking for qualified and passionate sport managers, your search ends here ... We offer a multi-disciplinary postgraduate master ’s programme in sport administration and technology (MSA) to sport enthusiasts from all over the world. A globally relevant programme conducted by leading academics and top sport administrators prepares our students to address the needs of an ever-evolving sports world. executive committee For recruitment opportunities, please contact us : Ph. + 41 (0)21 693 8593 or [email protected] — www.aists.org/msa The AISTS was founded by the International Olympic Committee (IOC), leading Swiss universities, the City of Lausanne and the State of Vaud BoarD memBers eLecteD By the executiVe committee •micheL PerrauDin WFSGI Past President 2004-2007, Owner & Founder MP Consult •kLaus uhL WFSGI Treasurer, Consultant & Chairman of the Administration Board of Uhlsport Co. Ltd. •stePhen ruBin Chairman, The Pentland Group •manFreD WutzLhoFer Chairman & CEO Messe München GmbH •Frank zhang Vice-President Government & Public Affairs, Li-Ning The WFSGI Executive Committee is composed by the persons whose name is highlighted above. The committee is completed by 2 members ex-officio : •RobbeRtdeKocK WFSGI Secretary General •JochenSchaefeR WFSGI Legal Counsel www.aists.org WFsGI HanDbOOk 09 17 CSR Committee CISO Committee CSR (Corporate Social Responsibility) Committee chair • Frank Henke CISO (Committee on International Sports Organizations) Committee Global Director Social & Environmental Affairs, adidas Group chair • Marius Rovers Members • Lesley Roberts • Lary Brown • Tom Cove • Gianni Lorenzato • Reiner Hengstmann • Ron Pietersen •Toshiaki Mizuno •Caitlin Morris •Carol Greenwood •Reidar Magnus Director CR, Pentland Group Corporate Compliance Manager, New Balance President & CEO, SGMA (Sporting Goods Manufacturers Association – USA) Vice-President, Lotto Global Head Environmental & Social Affairs, Puma Vice-President & CFO, Asics Europe Senior Manager, Presidential General Affairs Office, Mizuno Director of Integration and Collaboration CR Compliance, Nike Director of CSR & Supply Chain, Umbro Senior Manager, CSR / Supply Chain, Intersport Ex Officio •John Larsen •Robbert de Kock •Jochen Schaefer WFSGI President WFSGI Secretary General WFSGI Legal Counsel Mission Statement The CSR committee is focusing on global societal, social and environmental trends like climate change, resource depletion, labor and health issues. Its work is targeted at developing and promoting an understanding within the World Federation about the relevance of global social and environmental challenges for each individual member company, offering members an opportunity to tackle challenges through guidance and sharing best practice services, supporting members in identifying synergies to tie resources and enhance leverage through collaborative work. Some programs are : •Building platforms to share best practice •Providing direction on relevant industry initiatives •Providing guidance on specific social and environmental issues (labor inspections, restricted substances management) •Participating in concerted efforts to eliminate child labor in the football stitching industry •Establishing frameworks for partnerships •Engaging with supranational organizations and NGOs to represent the industry position. Chairman, Sport 2000 International Vice-Chairs • Jean-Pierre Morand • Celia Muir Secretary General, SRS (Ski Racing Suppliers Association) Worldwide Head of Sports Marketing & Sponsorship, Speedo International Members • Michael Riehl Senior VP Global Brand & Sports Relations, adidas Group • Christian Frison-Roche International Promotion Manager, Salomon • Craig Masback Director of Business Affairs, Global Sports Marketing, Nike • Liu Jun Vice-President, CSGF (Chinese Sporting Goods Federation) • Masato Mizuno Chairman, Mizuno • Blair Tripodi Director International Marketing, Under Armour • Filip Trulsson International Teamsport Business Unit & Marketing Manager, Puma • Reto Rindlisbacher Managing Director Sales & Marketing Nordica, Tecnica Group • Frank Zhang Vice-President Government & Public Affairs, Li-Ning • One additional committee member to be confirmed soon Ex Officio •John Larsen •Robbert de Kock •Jochen Schaefer WFSGI President WFSGI Secretary General WFSGI Legal Counsel Goals for 2009 •To further promote the Guiding Principles of the WFSGI Code of Conduct by strengthening guidance and direction to members on global industry initiatives that address global social and environmental trends •To raise awareness on the importance of CSR by investing in platforms for sharing best practice •To increase leverage by identifying common grounds for member-led programs and establishing frameworks for partnerships with service providers. Mission Statement Goals for 2009 The CISO represents the WFSGI as the industry consensus voice to all sports federations and organizations, promoting maximum and equal benefit to all WFSGI members and the sporting goods manufacturers’ community at large. Our objectives will be to get the WFSGI back in the center of the radar screens of the IOC and IF’s and to identify joined interest to grow the sports and our mutual activities. Some programs are : •Olympic Games Manufacturer Identification Guideline Project Vancouver 2010 and London 2012 •Youth Olympic Games kit and advertisement regulations project Singapore 2010 •Project brand collaboration at IOC and IF events •Reinforce IF collaborations (FIFA/UEFA/IAAF etc.) •Olympic Ticketing •Technical Staff Accreditations for our member brands. We will organize meetings between the WFSGI member brands and the major International Sport Federations to start to discuss future collaboration and extension of our services and relations. 19 WFSGI Handbook 09 IPR Committee Federations Committee IPR (Intellectual Property Rights) Committee Chair • Dr. Jochen M. Schaefer WFSGI Legal Counsel Members • Frank Dassler • Ian Fullagar • Mark Granger • Edward J. Haddad • Kingson Lai • Rory Macmillan • Hirotaka Miyaji • Gumercindo Moraes Neto General Counsel, adidas Group Chairman, ASGA (Australian Sporting Goods Association) Head of Legal Task Force, SGMA (Sports Goods Manufacturers Association – USA) Vice-President - Intellectual Property and Licensed Products, New Balance Legal Counsel, TSMA (Taiwan Sporting Goods Manufacturers Association) Director Government Affairs Europe EMEA, Nike Director General, JASPO (Association of Japan Sporting Goods Industries) Representing Sao Paulo Alpargatas S.A. Brazil Ex Officio •John Larsen •Robbert de Kock WFSGI President WFSGI Secretary General Mission Statement The IPR Committee is there : • To keep WFSGI membership informed in a proactive manner on international developments and matters in legal, legislative and IP-related areas ; • To educate members on matters of special interest in the area of law and international institutions such as WTO, WIPO, etc.). • To help the members in defining an international IP management strategy based on best practice experience ; • To optimize their existing IP portfolios ; • To help them finding competent IP experts at global level (on recommendation basis only!!), or to provide an expert opinion in sporting goods-related issues / disputes / up to submit so-called amicus curiae opinions letters to courts and / or legislators in different countries ; • To help them to find innovative technology solutions (like web monitoring, anti-counterfeit devices and systems), matchmaking with leading players in this field ; • To lobby support in the event of IP infringements through special WFSGI contacts (e.g. in Asia and other regions of the world), but limited to potential violators who are non members of the WFSGI ; • To act as a mediator in the event of IP disputes between members ; • To channel member requests to WIPO, WTO, WCO and other international organizations governmental institu- tions law enforcement authorities, etc. without the need to disclose the name of the respective member company if not appropriate or advisable under the concretecircumstances. The current five main projects are • WFSGI security label / device project -To develop a uniform WFSGI security label / device as additional layer of protection for the global sporting goods industry and trade and tool to combat counterfeits and identification mark for genuine sports products ; • WFSGI Web Monitoring program -To offer a Web monitoring program for WFSGI members, which screens the world wide web and notifies the brand and rights owners on suspicious activities, dubious online transactions and the like to enable them to intervene efficiently and swiftly ; • WFSGI best practice risk management and document retention program -To make available for WFSGI members a best practice document retention and risk management program with the objective to improve risk management methods and policies (e.g. if exposed to litigation, in the event of investigations conducted by public authorities, product recalls etc.) • Educational activities and best practices in the area of IP protection and enforcement in Asia and other world regions •To help and support both domestic and foreign sports brands and cooperate with local IP prosecution and enforcement authorities such as patent and trademark offices, brand protection associations, governmental institutions, legislators, etc. •Cooperation with the World Customs Organization (WCO) in the area of customs authorities’ training •To create a higher level of awareness and better understanding at customs level for the specific needs of the sporting goods industry and trade in general and of the WFSGI members in particular. All above-described projects are subject to continuous review and acceptance by the WFSGI membership. Goals for 2009 • • • To be able to present at least one concrete business proposal ready to be adopted by the WFSGI members out of the five projects mentioned above; Organize a high level industry and IPR Committee meeting at WIPO and/or WTO to obtain their concrete support get access to and involved in their IP-related working projects and groups; Create a broader working platform of IPR experts for the Committee’s work by recruiting additional committee members like in-house IP counsels. Federations Committee chair • Tom Cove President & CEO, SGMA (Sporting Goods Manufacturers Association-USA) Members • Alberto Bichi • Hirotaka Miyaji • George Wood • Liu Jun • Sean Cary Secretary General, FESI (Federation of the European Sporting Goods Industry) Director General, JASPO (Association of Japan Sporting Goods Industries) Chairman, TSMA (Taiwan Sporting Goods Manufacturers Association) Vice-President, CSGF (China Sporting Goods Federation) Executive Director, ASGA (Australian Sporting Goods Association) Ex Officio •John Larsen •Robbert de Kock •Jochen Schaefer WFSGI President WFSGI Secretary General WFSGI Legal Counsel Mission Statement The Federation Committee is a new committee, created in 2007, to enhance the collaboration of WFSGI with its regional and national sporting goods industry member federations, to promote improved information exchange and mutual assistance amongst the federations themselves. To provide a platform for the global, regional and national federations to develop, exchange and promote best practices, industry trends, market research, collaborative programming and problem solving. Some programs are : •Product Classification Key project (based on FEDAS) •Identification of Federations’ Critical needs •International Trade Policy-Global Reduction of Sporting Goods Tariffs Initiative •Exchange of Best Practices in Supply Chain Management •Sharing of Federation-Generated Market Research •Improved Information Exchange between WFSGI and Member Federations •Evaluation/Study on a specific Manufacturer exchange platform (committee or sub-committee). Goals for 2009 •U.S. Consumer Product Safety Improvement Act (CPSIA) •European REACH program WFSGI Handbook 09 21 Trade Committee Manufacturers Forum Trade Committee Manufacturers Forum Chair •Brad Figel Director Governmental Affairs & International Trade Counsel, Nike Chair • P.C. Sondhi Members •Frank Dassler •Gumercindo Moraes Neto •Hirotaka Miyaji •Benjamin Liu •Liu Jun •Tom Cove •Alberto Bichi •Herb Spivak •Leonid Strakhov General Counsel, adidas Group Representing Sao Paulo Alpargatas S.A Brazil Director General, JASPO (Association of Japan Sporting Goods Industries) President, Poyang International and Executive Director, TSMA (Taiwan Sporting Goods Manufacturers Association) Vice-President, CSGF (China Sporting Goods Federation) President & CEO, SGMA (Sporting Goods Manufacturers Association-USA) Secretary General, FESI (Federation of the European Sporting Goods Industry) Executive VP, New Balance Vice-President, RASIE (Russian Association of Sports Industry Enterprises) Ex Officio •John Larsen •Robbert de Kock •Jochen Schaefer WFSGI President WFSGI Secretary General WFSGI Legal Counsel Mission Statement The Trade Committee, created in 2007, is focusing on international trade issues facing the global sporting goods industry, including eliminating trade barriers, defending against trade cases, examining new product safety and testing requirements, removing restrictions that impact WFSGI member company’s supply chains, supporting international trade agreements that benefit the global sporting goods industry via ; •International Trade Agreements (global, regional and bi-lateral) •International Trade cases (e.g. anti-dumping, safeguards, cu stoms reclassifications and countervailing duty cases etc.) •China – Product Safety/Testing Initiative •Supply Chain (port security and infrastructure congestion and development) •Trade Litigation Training Program •IOS/CE standardization project (with DIN) to be extended to USA and other regions. •Overview of new laws and regulations addressing product safety and testing •Overview of trade remedy cases including anti-dumping, counterfeiting duty and safeguards particularly as the relate to footwear and apparel cases that may be brought against the sporting goods industry. Managing Director, F.C. Sondhi & Co. Members • George Wood Chairman, TBS Group and Chairman, TSMA (Taiwan Sporting Goods Manufacturers Association) • Nouman Butt Director, Capital Sports and representing SCCI (The Sialkot Chamber of Commerce and Industry) • Ali Imran Shabbir Managing Director, Ali Trading • Benjamin Liu President, Poyang International and Executive Director, TSMA (Taiwan Sporting Goods Manufacturers Association) • One additional committee member to be confirmed soon advisor • Tom Cove President & CEO, SGMA (Sporting Goods Manufacturers Association - USA) Ex Officio •John Larsen •Robbert de Kock •Jochen Schaefer WFSGI President WFSGI Secretary General WFSGI Legal Counsel More members are to be recruited for this committee especially from China and other South East Asian nations. But the Forum will embrace manufacturers and their agents from all over the world and not just from Asia. The membership of this Forum will be WFSGI members who have their own factories and are supplying goods to small, medium and large brands. It will also include agents of factories i.e., people who either buy from them and supply the brands or negotiate on their behalf with the brands i.e., companies who are responsible for the methods of production in those factories. Why do we call it a forum and not a committee ? We have used the word Forum because we want it to be a place where everyone can come and exchange ideas and share concerns. It will be open from all sides to ideas and suggestions. Goals for 2009 Mission Statement For 2009, the Trade committee intends to implement regional training programs on the following issues : • To give a venue for the manufacturing community and their agents to raise issues and show concern. • • • • • To be a sounding board for the brands because brands need to know what is possible / what is not and how things can be done. To understand the constantly changing generic requirements of the brands and circulate those to the members of the Forum. This will save the sometimes confrontational situations which brands encounter when they issue directives. To be a bridge between manufacturers and brands to have the ideas flow in both directions. To create a positive synergy between manufacturers and brands and in turn this will add strength to the fabric of the WFSGI also. To share and circulate knowledge among the Manufacturers Forum members on issues such as health & safety, hazardous materials, Corporate Social Responsibility and environmental issues, etc. They will also share their success in solving some of these problems. 23 WFSGI Handbook 09 IsPO WInTER 2009 IsPO cHIna 2009 ISPO WInTER 2009 ISPO cHIna 2009 69 International Trade Fair for Sports Equipment and Fashion International Trade Show for Brands in Sports, Fashion and Lifestyle in Asia th city and country : Munich, Germany city and country : Beijing, PR China address : Messegelände address : China International Exhibition Center (CIEC) Beijing telephone : +49 (0)89 949 20163 telefax : +49 (0)89 949 97 20163 81823 Munich Germany telephone : +49 (0)89 949 11388 telefax : +49 (0)89 949 11389 ispo online : www.ispochina.com ispo online : www.ispo-winter.com e-mail : [email protected] e-mail : [email protected] Date of fair : February 19 – 21, 2009 (thursday – saturday) Date of fair : February 1 – 4 , 2009 (sunday – Wednesday) organized by : Munich Trade Fairs (Shanghai) Co., Ltd organized by : Messe München GmbH, 81823 Munich, Germany co-organized by : management : Markus Hefter – Exhibition Director Jing Mu International Exhibition Co., Ltd CIEC – China International Exhibition Centre management : Kerrin Mueggenburg, Exhibition Manager opening hours : February 1- 3, 2009 : 09:00 – 18:00 h (Sunday – Tuesday) opening hours : February 19 – 21, 2009 : 09:00 – 17:00 H. (Thursday – Saturday) Prices for exhibitors : From EUR 180 to EUR 189 per sq. m. tickets : Trade visitor : 60 RRMB exhibitors accepted : Brands only – outdoor, boardsports, teamsports/running, fitness, racketsports, ski, sportswear & sportsstyle, golf, bike, ski resort equipment, fabrics & fibers, others February 4, 2009 : 9:00 – 17:00 h (Wednesday Prices for exhibitors : From EUR 133 to EUR 150 per sq. m tickets : Admission ticket for one day, two days, four days : from EUR 40 to EUR 60 If purchased online with pdf voucher : from EUR 10 to EUR 45 Free public transport (MVV) to and from the fairgrounds exhibitors accepted : sports hardgoods and softgoods, suitable for the individual ispo areas Visitors accepted : Trade only Visitors accepted : Trade only Listing of services : Listing of services : Customs, forwarding & shipping agent, storage contractors, flowers, decorators, Full range of services including forwarding & shipping agent, flowers, post office, decorators, interpreters, cleaning, electricity, telephone, water, hotel accommodation, visa, etc. Local transportation : Bus, shuttle bus, taxi Parking : 1’000 places total space exhibition : approx 20 000 sq. m. Hotline : +49 (0)89 949 11388 or www.ispo.com total number of brands : 329 from 21 countries(2008) Parking : 13’000 places total number of visitors : 11 108 from 147 countries (2008) total space exhibition : 180’000 sq. m. hall general information : total number of exhibitors : 2026 (2008) from 47 countries International : Kerrin Mueggenburg, Shanghai : Joanna Su, Beijing/ China : Ronald Wu total number of visitors : 64’000 (2008) from 113 countries Visa application : general information : Constanze Fuchs / Kerstin Leckebusch / Engin Mueller-Oezer / Eva Schlangenotto Ms. Aurora Zhang [email protected] interpreters, cleaning, electricity, telephone, water, hotel accommodation, etc. Local transportation : Airport shuttle (free of charge with ispocard), railway station fairgrounds, metro suburban express, trams, buses – free of charge with visitor / exhibitors pass, taxi travel information : Hotel Directory with City Map, Hotels and Guesthouses in and around Munich, 25 WFsGI HanDbOOk 09 GOlF EuROPE 2009 RunnInG ORDER sHOW GOlF EuROPE 2009 17 International Trade Fair for Golf th city and country : Munich, Germany address : M,O,C, Munich Order Center Lilienthalallee 40 80939 München/ Freimann – NEW Location RuNNING ORdeR sHOW Sponsored by GorE-TEX & GorE running Wear city and country: Munich, Germany address: M,O,C, Munich Order Centre Lilienthalallee 40 80939 Munich/ Freimann telephone : +49 (0)89 949 20 172 telefax : +49 (0)89 949 20 179 telephone: +49 (0)89 949 20 157 golf europe online : www.golf-europe.com telefax: +49 (0)89 949 20 169 e-mail : [email protected] Date of fair : september 27 – 29, 2009 (sunday to tuesday) running online: www.running-order.de organized by : Messe München GmbH, Messegelände, 81823 Munich, Germany e-mail: [email protected] management : Armin Wittmann, Exhibition Director Date of order show: June 28 – 29, 2009 (sunday to monday) opening hours : 27 – 28 September 2009: 09:00 – 18:00 (Sunday - Monday) 29 September 2009: 9:00 – 17:00 h (Tuesday) organized by: Messe München GmbH, Messegelände, 81823 Munich, Germany Prices for exhibitors : From EUR 125 to EUR 132 per sq. m management: Jose Moreno-Tapia, Exhibition Manager tickets : Admission ticket for one day, two/three days : EUR 25 to EUR 35 Advance sale : Admission ticket for one day, two/three days : EUR 17 to EUR 27 Free public transport (MVV) to and from the M,O,C, opening hours: June 28 – 29: 09:00 – 19:00 h (Sunday - Monday) Prices for exhibitors: booth package ( 24 sqm space, booth system, carpet, lightening) EUR 1890 exhibitors accepted : Golf Articles, Golf Fashion, Golf Accessories, Indoor Golf, Driving Range, Golf Tourism, Golf Journals, Golf Literature Visitors accepted : Golf Pros, Members of the PGA of Europe, Pro Shop Owners, Pro Shop Employees, Sports Retailers, Department Stores Selling Sports Equipment and Fashion, Mail Order Firms Listing of services : Customs, forwarding & shipping agent, storage contractors, flowers, decorators, interpreters, cleaning, electricity, telephone, water, hotel accommodation, etc. Local transportation : Airport shuttle (free of charge with ispocard), railway station (12 minutes by subway), subway station (5 minutes by feet), trams, buses – free of charge with visitor / exhibitor pass, taxi travel information : Offers at www.golf-europe.com Parking : 1’500 places total space exhibition : 15’000 sq. m. hall number of domestic exhibitors : 118 (2008) number of foreign exhibitors : 167 from 26 countries (2008) total number of exhibitors : 2026 (2008) from 47 countries number of domestic visitors : 2’154 (2008) number of foreign visitors : 2’484 from 52 countries (2008) total number of visitors : 4’638 (2008) general information : Armin Wittmann / Simone Bingel Prices for m,o,c, members (exhibitors): EUR 490 tickets: Admission ticket for two days: EUR 20, free public transport (MVV) to and from the M,O,C, Advance sale: Admission ticket till 18 May 2009 for free! exhibitors accepted: Clothing, Shoes, Nordic Walking, Triathlon, Nutrition, Accessories Visitors accepted: Sports Retailer, Department Stores, Running Retailer, Triathlon Stores, Nutritional Stores, Orthopaedic Stores Local transportation: Airport shuttle (free of charge with ispocard), railway station (12 minutes by subway), subway station (5 minutes by feet), trams, buses – free of charge with visitor / exhibitor pass, taxi travel information: Offers at www.running-order.de Parking: 1’500 places total space exhibition: 15 000 sq. m. hall total number of exhibitors: 98 (2008) total number of visitors: 1300 from 58 countries (2008) general information: Jose Moreno-Tapia 27 WFsGI HanDbOOk 09 www.ispo.com “ Staying behind your counter CSR Committee - Activity Report 2008 CSR Committee Activity Report 2008 nowhere. ispo is where things get moving.” gets you Frank Henke, Chairman of the CSR Committee - Corporate Social Responsability The work of the CSR Committee in 2008 was primarily driven by the execution of the strategic direction as it was presented to the members at WFSGI meetings in January 2008. It was summarized by the theme: “Streamlining efforts – maximizing impact”. — alain, 29, shop owner The strategic direction was designed according to the following important trends and developments in the industry and society : 1.There is still a great level of uncertainty about the term Corporate Social Responsibility and the role of business. This becomes visible through an overwhelming number of definitions and interpretations of the general term CSR. To provide clearer guidance, the work scope of the CSR Committee therefore had to be narrowed down and more focused. pascher-heinz.com pic: xandi kreuzeder athlete: dennis ehlert / amplid 2.Member companies of the WFSGI and players in the sporting goods industry are highly diverse in terms of company size, product categories, regional origin and presence, corporate culture and organisational setup of their businesses. This diversity within the industry poses a challenge in developing common views about corporate responsibility or ethics and in establishing a one-size-fit all approach. Stronger emphasis should be put on mutual communication to take into account different viewpoints. 3.Within, and outside of, the sporting goods industry, several initiatives and platforms have already been established that promote cooperation, collaboration and information sharing related to sustainable business practices between companies. Individual WFSGI member companies have also been successful in building coalitions with other brands outside the industry. These programs are tailored and designed to e.g. effectively address issues in global supply chains. So more work had to be done to inform members about current or planned initiatives to avoid parallel work streams and to build effective leverage. builds on the previous track record and achievements but also puts a strong focus on members’ needs in the context of the changing role of business in society and what the changes really mean. Based on lessons learnt, the CSR Committee designed an iterative approach that allows the Committee to focus its work on manageable key activities and sustainably broadening the WFSGI’s and its members’ engagement for the CSR agenda year by year. As a first stage, major actions in 2008 were related to the enhancement of awareness building programs for CSR practices and the establishment of platforms for sharing best practice among members. Actions included: Information and awareness raising programs 1.A CSR directory was designed and launched that aims to guide members to actual CSR industry initiatives. This directory provides information about multi-stakeholder initiatives, transparency and data sharing platforms and environmental initiatives. 2.Under the theme “Listen to the experts” a guest speaker curriculum for relevant CSR topics was developed; in May 2008 for example, experts in energy efficiency management and waste management attended the CSR meeting and provided lectures to the audience. Sharing best practice 1.A CSR section on the WFSGI website was developed that allows members to profile their CSR approaches and showcase best practice. 2.A brand gathering event was organized in Hong Kong in March 2008 to offer a platform for discussing and sharing experiences in managing environmental issues in the regional supply chain and to provide collaboration opportunities between brands. Taking these aspects into account, the Committee has aimed to develop a three-year programmatic approach that 1-4 feb 09 Messe München GmbH, Messegelände, 81823 München, Germany, phone (+49 89) 949-11 3 88, fax (+49 89) 949-11 3 89, [email protected], www.ispo.com for trade visitors only 29 WFSGI Handbook 09 Addressing energy efficiency at the adidas Group Addressing energy efficiency at the adidas Group Addressing energy efficiency at the adidas Group The adidas Group is a world leader in the global sporting goods industry. Being a leading multinational demands that we respond to global developments, to the big issues of today. Experts say that this set of ‘big issues’ – broadly encompassed by the term ‘sustainability’ – affects all of us and will have a growing influence on our lives and how business operates. Frank Henke, Global Director Social & Environmental Affairs, adidas AG One of today’s big issues is climate change. The threat of climate change is becoming ever more apparent as consensus grows on the need to stabilise greenhouse gas levels – primarily those of carbon dioxide – to prevent increasing global mean temperatures. The UN Intergovernmental Panel on Climate Change suggests carbon dioxide emissions could increase two and a half times by 2100. But we need to stabilise emissions at just one and a half times of current levels if we are to avoid significant change to the planet. Reducing emission growth requires greater energy efficiency and wider use of low-carbon technologies. At the Bali conference on climate change in December 2007, the world’s governments pledged their support to the idea of setting emission reduction targets. In the run-up to the conference, 150 global companies including the adidas Group signed the Bali Communiqué, calling for a comprehensive, legally binding United Nations framework to tackle climate change. What’s causing the problem? As we all strive to improve our standard of living, the choices we make have unforeseen consequences. The main problem is the increase of carbon dioxide and other greenhouse gases in the atmosphere. This comes largely from burning fossil fuels for energy and clearing forest land for development. Resources are being depleted at an unprecedented rate, a problem that increases as poverty decreases. Projections from the International Energy Agency suggest that primary energy use could more than triple by 2050 in a more prosperous world. The 2005 Millennium Ecosystem Assessment showed that of the ‘services’ that humanity receives from the ecosystem – such as fuel, food, water and timber – two thirds were being used unsustainably. What can be done and what is the adidas Group doing? Over the past decade we at the adidas Group have closely analysed not only the social but also the environmental conditions we find on the ground and have worked hard to improve the working and environmental conditions at own sites and in our suppliers’ factories. Our products – which are at the heart of our business – must be competitive in function and price but also safe. Manufacturing products must be done with the least environmental impact without compromising function and quality. And we have to be efficient in our use of resources, but also fully support our global business. The challenge is to balance these various demands. All of us can try to use less energy. As the generation of electricity is the major source of emissions, we have taken steps to measure and reduce our energy use as a business. At the adidas Group we apply policies, procedures and practices to ensure that all corporate entities are operating to the highest standards. We have environmental management systems in place at our major sites, and our core suppliers are required to establish one, too. Addressing energy efficiency in the supply chain We have limited control over the direct environmental impacts of the manufacturing process and how our suppliers act. The best way we can influence the environmental impacts at our suppliers’ factories is to encourage the introduction of environmental management systems, and we have made implementing such systems mandatory for all our core suppliers. Achieving certification requires factories to plan, manage and review their own environmental performance. This encourages them to approach the issue with rigour and the appropriate resources. Environmental management systems commit the supplier to continuous improvement. Our German factory in Scheinfeld, for example, has reduced its energy consumption for all its operations in each of the past three years. The total saving is equivalent to a 13.5% reduction in the average energy used to make a pair of sports shoes. various aspects of energy management and contained a wide range of improvement suggestions for factory managers and their facilities. Another important topic was how to stay competitive and safeguard production performance while at the same time reduce pollution and its impact on global warming. The adidas Group’s approach is to help its suppliers reduce the environmental impacts in their factories through advice and support. The company has issued detailed and practical Guidelines on Health, Safety and Environment, complemented by a more specific Guide to Best Environmental Practice. Highlighting best practice both inspires and practically explains how suppliers can improve their performance. The Guide shows how to address environmental issues in a systematic way and how to obtain economic benefits by taking a proactive stance in the management of resources, processes and wastes and goes far beyond end-of-pipe solutions. To better tailor the training programme on environmental issues, we conducted specific needs assessments among our suppliers. Through these we sought to better understand their environmental priorities, which can differ significantly from site to site, depending on product complexity and production processes. Many reported that energy consumption was one of their main concerns. The drastic increase in oil prices has affected energy costs, and the high demand for energy has resulted in power shortages in factories in China where several of the suppliers’ factories are located. Accordingly, the adidas Group conducted a series of energy efficiency workshops. With the help of an environmental consultancy we developed customised training materials and technical recommendations across the different product divisions. In 2007, Vietnam and South China were chosen as the countries to kick off the series of workshops which were attended by more than 100 core suppliers. The workshops were run under the theme ‘Energy Efficiency – Advantage for Environment and Industry’ and stressed the significant economic potential for industry and business and the tangible benefits to the environment. In-depth training was given on Energy efficiency workshop in China Energy management at our administration sites and in the retail business Besides our supply chain, we also look at how we can reduce our environmental impact as individuals, and as a company. To further strengthen our performance in managing social and environmental issues, it is important that the Group and its employees ‘walk the talk’ in terms of the environmental conditions and sustainability of our own sites, workplaces and offices. In a workplace, energy is used in lighting, heating and air conditioning and for running various types of electrical equipment that we use daily WFSGI Handbook 09 31 Addressing energy efficiency at the adidas Group such as PCs, photocopiers and printers. Office equipment alone typically accounts for more than 20% of the energy used in most offices and even up to 70% in some offices. In retail spaces, most energy is consumed either in heating, air conditioning or lighting. We seek to raise awareness and provide solutions and ways for purchasing environmentally friendly products and materials, conserving energy and water and reducing waste. In short, we want to create “green” workplaces together with our employees and internalise the “green” thinking. Most of our sourcing offices, sales subsidiaries, warehouses and administration sites have less environmental impact than manufacturing products in factories. Nonetheless, besides adhering to specific local laws, our Corporate Guidelines on Health, Safety and Environment also support managing activities at our own sites. They provide best practice advice for workplace ergonomics, eco-purchasing of office materials and resource savings through ordering chlorine-free print and copy paper, collecting and recycling/refilling printer cartridges and using energy-saving printers and lighting. To minimise the environmental footprint within the retail sector, the Group’s Workplace Standards have been extended to cover franchisees, and the manufacturers of store fixtures and fittings have been included within the scope of monitoring. In 2007, environmental activities were expanded for the first time to the own retail business with on-site energy audits being conducted in retail stores in China. Several energy management opportunities were identified and shared with senior management and relevant business units as part of our ongoing commitment to continuous improvement. Upon completion of the audits, action was taken by colleagues in the retail business unit to address the findings immediately, where possible, or to incorporate these in future designs for store concepts. Addressing energy efficiency at the adidas Group year to reduce the environmental impact of transporting its products around the world. Our policy is to minimise the impacts from transport, in particular air freight shipments, which create the most carbon dioxide emissions, through improved order and production planning tools. Only in emergencies or in times of high-market demand, for example during global sporting events, we choose to airfreight our products. Carbon dioxide emissions are measured in grams of carbon dioxide per kilometre each tonne travels (grams CO2/km t) : •Sea freight contributes 17.5 grams carbon dioxide CO2/km t •Road freight by truck contributes 147 grams CO2/km t •Air freight contributes 903 grams CO2/km t. The shipping supply chain Due to the fact that the adidas Group works with third parties, rather than its own transport fleet, it is difficult to measure the resulting vehicle emissions (truck, ship and plane). To reduce the environmental impact, our transport and logistics department has developed benchmarks for carriers and forwarders that help us evaluate their environmental performance. Emissions from product transport Both environmental and wider sustainability One of the key climate change impacts comes from the fuel used performance have been included in the decito transport our goods to the market. The adidas Group works each sion-making process regarding which service supplier we work with. To gain a clear overview of the CSR capabilities of our current and potential new service partners and to determine whether they meet our requirements for partnering with the adidas Group, they have been asked to provide information about ISO 14001 certifications and environmental policies, their current five most important CSR activities and their CSR strategy. This will allow us to conduct in-depth analyses of the profiles of potential parThe employee restaurant ‘Stripes’ in Germany was built based on an innovative ecological climate concept which eliminates the need for energy-intensive air-conditioning equipment. tners in the future. Impact of global travel As a global business with more than 150 locations worldwide and a global supplier base, air travel is widely used by adidas Group employees. To obtain a better understanding about the environmental footprint caused by air travelling, we are quantifying what the carbon dioxide emissions are. While air travel cannot be avoided, we are exploring options to further reduce it through more rigid travel planning and extended use of telecommunication systems such as video conferencing. Summary Environmental sustainability poses a number of challenges for our company and its functions, whether for product management, innovation, development teams, facility management or our manufacturing partners. The goal is to achieve a balance between various demands: • • • Manufacturing must be done with the least environmental impact without compromising function, quality, price and safety (during use and after disposal) of the product. Apply best practices at own sites and operations to continuously reduce our direct environmental footprint. Our operations have to become resourceefficient and lean but also need to fully support our business goals. Climate change is one of a number of key issues for our global society to face, along with disease, poverty and resource depletion. All of these issues stand in the way of a truly sustainable world. While these challenges can seem overwhelming, it is important to remember that our efforts and energies need to be focused on what we can do, in our street, our town or our company, to make a difference. As the adidas Group strives to improve its social and environmental performance, we recognise that we can, and must, take action and encourage others in our supply chain to take action if we are to make a difference and become a sustainable business. Our corporate responsibility publications Giving 110% This review reflects on the efforts the adidas Group made in 2007 to be a responsible business. It discusses the social and political context for our work, covering four main topics: big business and sustainability, preparing for major sporting events, ‘Made in China’ and climate change. Our online corporate responsibility report 2007 Striving to improve performance. Going into more detail than the review, our online report looks at what we have achieved in 2007. So it includes performance data, a review of our progress against the targets we set ourselves for the year and more information on our approach to managing social and environmental issues. It also includes a ‘GRI Index’ so readers can see how we report against the international benchmark of the lobal Reporting Initiative. The ‘Sustainability’ section of our corporate website In this section of our corporate website, we provide an overview of the standards we have put in place to manage the issues of labour rights, health, safety and the environment, in particular in our supply chain. Also here are our past seven years of social and environmental reports, statements clarifying our position on matters of public interest and historic case studies that illustrate how we have tackled workplace and environmental issues in the past. We can, and must, take action and encourage others in our supply chain to take action if we are to make a difference and become a sustainable business. WFSGI Handbook 09 33 Kamik Environmental footprint Kamik Environmental footprint Kamik Environmental footprint Norman Cook, Executive Vice President, Genfoot Inc. Regardless of what goods are being produced, the logistics of moving products to consumers has become an ever-increasing global economical challenge. Rising energy prices have become a critical concern in today’s economy and many manufacturers are looking for ways to cut their cost of operations without sacrificing the quality of their product offering. Energy costs are likely to remain high and we at Kamik Footwear are continually looking at ways to grow our business not only with new and innovative products, but also with creative ways to reduce our operating costs and shrink our environmental footprint. Kamik is a privately owned family company. Since the company began its operations in 1898, the company’s goals have focused on manufacturing competitively priced and highest quality outdoor footwear for men, women and children. Our heritage therefore drives us to continually examine our production and operating practices in order to ensure Kamik remains a relevant and a competitive brand in the today’s market place. An important benefit of this dynamic evaluation process has been that Kamik has not only reduced its exposure to rising energy costs but also has enhanced its global reputation as a bonafide environmentally friendly company. For Kamik, incorporating green practices provide us with an excellent opportunity not only to lessen our ecological footprint but also to improve our profit margins as well as our customer’s. The existing challenges of the global energy crisis remain significant and require close attention. In short, our current business practices focus on reducing any wasteful costs and consequently lowering any added stresses caused specifically by the current energy crisis. These practices encompass where we manufacture, how we manufacture, what materials we use, how our products are marketed and how they are distributed to our customers. Manufacturing and Operations When one thinks of energy, often the cost of fuel is the first thing that comes to mind. The Kamik brand’s primary area of distribution is North America. In order to efficiently meet its domestic demand for product, Kamik maintains two North American factories that enable us to manufacture closer to home and closer to our customers. The net result of this strategy is that we are able to reduce our distribution costs and minimize our environmental footprint at the same time. While many companies made the shift to manufacture product overseas, we assessed the pros and cons of producing domestically and found a substantial cost and customer service advantage to keeping production close to home. Kamik maintains two factories in North America: a American based plant located in Littleton, New Hampshire and a Canadian based facility in Montréal, Quebec. The current high costs of fuel and energy remain a constant and real concern. To effectively address this and other operating issues, our production effort is centered on manufacturing, employing and distributing locally. Aside from supporting the domestic economy, producing locally allows Kamik (i) to maintain a tight control over its production quality, (ii) to minimize its non-value added shipping and handling efforts and (iii) to improve its ability to meet customer changing demands resulting from varying weather conditions in season. This provides us a competitive edge that benefits the Kamik brand’s consumer image, our bottom line and our responsible environmental footprint. Our goal is to continue to manufacture and sell Kamik products close to market. In 2009, along with our current Canadian and US factories, Kamik will begin to manufacture product in Europe to supply our growing European client base. From an environmental point of view, this new European production facility will afford Kamik the chance to meet both European consumer needs and lower shipping costs but without a large, negative impact on the environment. Kamik’s Green Manufacturing For over 20 years, Kamik has been dedicated to eliminating waste by reducing and reusing production materials. Both of our North American factories employ hydro-generated power to run machinery and equipment. Hydro-generated power is a renewable energy source that not only minimizes our production costs but also maximizes our use of ecologically sound production inputs. A closed looped distribution system recycles water that is used to cool the machinery during the production process. Even the vast amount of oil used we use in various hydraulic pumps is filtered, recuperated and reused. Our methods of sustainable manufacturing ensure that nothing is wasted and productivity remains efficient. As part of our long-standing program, no waste from the production of footwear is ever discarded. Kamik collects all production scrap material, sorts it and then reuses it to produce additional footwear. In the fall of 2008, Kamik will introduce a consumer boot recycling program. We provide consumers with the opportunity to return used, heavily worn boots to us, which in turn will be reused to create new boots. A component of our message, however, will be to educate consumers that the best way to ‘recycle’ boots is to pass them along to a charity or a needy individual who will wear them, especially if the boots are still in reasonably good shape. A list of Kamik boots that are accepted for recycling will be available on the Kamik Web site (www.kamik.com) beginning in Fall 2008. Rising energy costs will continue to influence Kamik as well as its business operations. As such environmental factors evolve, so will our efforts in terms of time for and research into finding new materials and methods to produce products that are both environmentally friendly, cost effective and consumer friendly. Marketing Kamik’s dedication to reducing waste can also be seen in the development of our marketing materials. Kamik’s packaging, hangtags and marketing material are all printed on recycled paper. In 2008, we introduced an online catalog in addition to our printed catalog, thus reducing the number of catalogs that we print. While we have always chosen to print our catalogs on partially recycled paper, in 2008 we will take it a step further and to print all of our catalogs on 100% recycled paper. By doing so, we have saved over 24 Million BTUs of energy, over 3,000 pounds of greenhouse gases, almost 15,000 gallons of water, numerous mature trees and a significant amount of solid waste. While environmentally sound, this recycled paper choice also enhances the look and feel of our Kamik brand to our customers. In summary, Kamik employs multiple strategies and tactics to enhance its reputation as a leading, environmentally friendly company. We are confident that our continued energy saving approach as well as our efforts to identify innovative energy efficient policies or processes will continue to generate significant returns for our Kamik brand, our company and our customers. While many companies made the shift to manufacture product overseas, we assessed the pros and cons of producing domestically and found a substantial cost and customer service advantage to keeping production close to home. 35 WFSGI Handbook 09 MIzunO cORPORaTIOn’s EnGaGEMEnT In EnERGy IssuEs MIzunO cORPORaTIOn’s eNGaGeMeNT IN eNeRGY ISSueS To maintain an environment where we can live humanly. Masato Mizuno, Chairman of the Board of Mizuno Corporation Introduction Imagine the Earth becoming an inhospitable place to live for human beings due to the deteriorating global environment. One can most likely visualize harsh environments such as open deserts, a substantial amount of disaster due to abnormal climates, decrease in Masato Mizuno doing first pitch in baseball game plants and animals, starvation due to during beijing Olympic Games 2008 food shortages, limited outdoor activities due to air pollution etc. It is probably impossible to continue the sports culture in such an environment. Clean air, water and a fertile earth. The cause of destruction of these things in nature which we take for granted, and making it a more difficult place for human beings to live in, is all a result of our own activities. And, the only thing that can protect the Earth from this environmental deterioration is ourselves. Warming temperatures melt ice Desertification of the earth Not only is it an important topic for us related in the business of sports, but efforts for environmental conservation is probably the current most top-priority issue that should be promoted by all of us for the continued existence of all humankind. In order to prevent environmental destruction to advance to a point of no return, all individuals and business organizations must make whatever efforts possible. At our company, we have been incorporating the idea that all humankind is part of the crew on the third planet of the solar system--spaceship “Earth.” Acknowledging that we have the responsibility to protect the environment of the spaceship we live on, in 1991, we have been promoting an environmental conservation activity called “Crew 21 (Conservation of Resources and Environmental Wave21)” which has been taken on by the entire company. In this article, we would like to introduce the actual state of energy issues and energy conservation which our company is involved in as part of Crew 21 activities. about Energy Issues Global Environmental Issues and Energy Issues It is impossible to think about global environmental issues without energy issues. The 18th century industrial revolution being the turning point, mass consumption of fossil fuels began, and the range of fossil fuels used started to broadened from WFsGI HanDbOOk 09 37 Mizuno Corporation’s Engagement in Energy Issues coal to petroleum, and then to natural gas, leading to a dramatic increase in energy consumption. Though on one hand, there are fears that there will be a depletion of energy resources due to worldwide mass consumption of fossil fuels such as petroleum and coal, it is also thought that several environmental issues are arising due to the rise in the Earth’s temperature, caused by the emission of CO2 when energy is consumed. The Kyoto Protocol adopted in 1997 states that the only countries undertaking the obligation to decrease the emission of greenhouse gas are the advanced countries in the world such as the EU, Russia, Japan, Canada etc. When we look at one of the greenhouse gases, CO2, these advanced countries emit only one third of the world’s entire emission amount. On the other hand, the forecast for future CO2 emission amounts by country/ region states that the emission percentage by developing countries will increase as their economies develop (Figure 1 & 2). The amount of fossil fuels left on this planet is limited, and if we continue to use them in the current pace, it is said that oil will deplete in 40 years, natural gas in 64 years, coal in 154 years, and uranium in 85 years. Resolving both “energy issues” and “global environmental issues” at the same time is a pressing challenge that is desired worldwide. Figure 1 : CO2 emission by country (Year 2004) Mizuno Corporation’s Engagement in Energy Issues Figure 2 : Forecast of CO2 emissions by country/region Data : Research Institute of Innovative Technology for the Earth The Present Situation of Japan’s Energy Conservation As previously mentioned, from both viewpoints of a stable supply of energy resources and the prevention of global warming, there is a heightened need to attain an energy conserving society which minimizes the use of fossil fuels. Lessons learned from past oil shock incidents, Japan has been making efforts to conserve energy as well as diversify energy resources, resulting in steady accomplishments. Figure 3 shows the power composition of power energy amounts. Compared to 1973, we see that the percentage of petroleum has decreased greatly in 2005. Figure 4 shows the international comparison of primary energy supply amounts per GDP. Through energy conservation efforts, Japan has achieved the highest global standard for energy consumption efficiency. New Energy Utilization Efforts In our country, the promotion of utilizing new energy is a large pillar that is positioned at the same level as prevailing/accelerating energy conservation. The goal to adopt new energy by 2010 is 3% of our total energy, being 19.1 million kilo liters when converted to petroleum amount. To be more precise, both public and private sectors are joining hands to research and develop as well as make active efforts to use natural energies such as solar power energy, wind-generated power, hydraulic-power generation, geothermal energy, recycled energy such as waste power generation, waste thermal utilization, and biomass energy such as biomass power generation and biomass thermal utilization. Also, the use of conventional energy in new utilization forms such as in clean energy vehicles like electric and hybrid cars, as well as the development and use of natural gas cogeneration and fuel batteries are all under way. Figure 3 : The Power Composition of Power Energy Amounts 100 100 80 80 60 60 40 40 20 20 0 1973 0 2005 Figure 4 :International comparison of primary energy supply amounts per GDP 20 15 10 Countries such as the EU, Russia, Japan, Canada, and other ratified nations on exhibit B that hold the Kyoto Protocol decrease obligations (29% of the total emission amount). 5 0 Data : IEA, KEY WORLD ENERGY STATISTICS 2006 / Note : Data numbers are from 2005, Japan=1.0 Mizuno’s Global Environmental Conservation Activities As mentioned in the opening section, in 1991 our com-pany began the “Crew 21 (Conservation of Resources and Environmental Wave 21)” environmental conservation activities. As Crew 21 activities, we have been cutting back on energy resources, using recyclable materials, using recycled materials, conserving the environment during production processes, developing environmentallyfriendly products such as the disuse of toxicsubstances, and providing thorough environmental education etc., steadily making efforts over the years. And in February 2002, we obtained ISO14001 approval which is an environmental management standard for environmental conservation, for all of our offices throughout the nation. We also accomplished our second renewal in February 2008. Furthermore, in May 2005 our largest overseas production subsidiary Shanghai Mizuno, and in February 2008 our sales subsidiary Taiwan Mizuno located in Taiwan, both obtained ISO14001 approval, and we are making efforts to expand our environmental conservation ISO14001 Registration Certificate (Taiwan Mizuno) activities to our group companies. Mizuno’s Promotion for Energy Conservation In the Mizuno Environmental Policy established in 1999, we took notice of the fact that all business activities our company performs impacts the environment, and as we contribute to the global environment as well as preserve the global environment, we promised to make efforts to improve on environmental impact and prevent pollution under the slogan of “Providing a sound and healthy sports scene to people and Mother Earth.” In particular, 1) energy conservation and saving resources, 2) waste reduction and recycling, 3) developing environmentally-friendly products/services, 4) purchasing environmentally-friendly ingredients, materials, and goods have been set as priority issues. For each, an environment goal has been established, and to obtain such goals an environment management system has been established and maintained which is also being periodically reviewed as well as improved upon. Data : “Comprehensive Energy Statistics” etc. from the Resource and Energy Agency Data: CO2 Emissions from Fuel Combustion Mizuno’s Efforts in Energy Issues Solar Power Energy For our mid-term environmental plan promotion which started in FY2000 and had a final goal achievement year of FY2006, which was the 100th anniversary of our company, we were able to achieve 11 environmental conservation goals out of all 16 goal items. Out of the achieved goals, the following shows the achievement results for energy conservation related goals. WFSGI Handbook 09 39 Mizuno Corporation’s Engagement in Energy Issues Energy Saving at asics Chart 1 Goal achievement status for energy conservation related items Items (units) Performance FY2000 FY2006 Goal for FY2006 Performance target Ratio against Electricity usage amount (10,000 kWh) 1795 1466 1458 99.5% Gas(m3) 173000 Gasoline/light oil(kl) 885 119836 883 100574 931 83.9% 105.4% Kerosene (kl) 28.2 24.7 87.5% 35.2 Other Energy Conservation Related Activities Mizuno Technics Corporation, our company’s manufacturing subsidiary develops wings for small wind-power generating devices. By adopting carbon fiber reinforced plastic material and a hollow architecture, they have been able to achieve lighter weight, and coupled with the adoption of a new shape, achieve high power generating efficiency. It is an effort allowing us to leap out of the box of our conventional domain identity and extensively contributing to the promotion of energy conservation. Figure 5 : Transition of numerical results for items related to energy conservation Items (units) 2000 2001 2002 2003 2004 2005 2006 2007 Electricity 1’795 1’715 1’615 1’538 1’538 1’520 1’458 1’370 (10,000 kWh) Gas 173 (1’000m3) Kerosene (kl) 35.2 Consumption of Petrol/Diesel oil (kl) 885 151 153 119 137 131 101 32.6 31.5 27.3 27.1 30.7 24.7 25.7 912 924 912 907 887 931 944 Modal Shift Containers Morio Nakagawa, Manager CSR Team, Legal Department, Administration Division, Asics Corporation Why is ASICS committed to environmental sustainability? evaluate greenhouse gas emission with the tool, so called “ Life Circle Assessment (LCA)”. ASICS provides products and services that make sports fun for all. At the same time, Motoi Oyama, President and Representative Director, recognizes that as a global company we should be committed to Corporate Social Responsibility. What specific are ASICS’ actions? Motoi Oyama regards the need for taking positive action to prevent global warming an integral part of this commitment. Goals for the reduction of greenhouse gas emissions are recognized and adopted worldwide. As such ASICS will actively promote reducing greenhouse gas on a global scale, whilst fulfilling its responsibilities as a global citizen through actively and continuously reducing its greenhouse gas emissions. 109 In order to achieve these goals, our company has been pursuing measures such as modal shift promotion, the implementation of low-emission vehicles, making efforts on setting air conditioning temperatures etc., with long-term perspectives. Also, we have been continuing employee education so that all of our employees obtain a deeper understanding of the meaning and importance of energy conservation, and that they do not have a passive image of energy conservation as being about patience and constraints, as well as also making sure that proactive approaches are being taken in their business activities and domestic life. Energy Saving at asics A global company steeped within a traditional commitment to the environment Wings for wind-power generation Conclusion Energy conservation is not something that can be achieved merely by streamlining energy related devices as well as with efforts made by energy related industries, but efforts to transform a large-volume energy consuming economical/ societal structure in to an economy and society with a resource-saving structure must take place. For this to happen, the transformation of minds of the people is absolutely imperative. The world has come to a point where the human race must rethink the meaning of “happiness” and “affluence” beyond the bounds of race, religion, and values. For our beautiful blue and luminous planet Earth, and for the future of humankind, our company will continue to make ceaseless efforts towards global environmental conservation. ASICS aims to live up to its environmental commitments tapping into the traditional «Japanese model» for a sustainable society. In a nutshell, this model is based on environmental technology, its « wisdom and tradition for living in harmony with nature », and Japan’s history and dedication to energy efficiency. ASICS is clearly seeking to encourage a responsibility-based Globally Integrated business culture. It wants to see further progress of the debate, and to build better international connections in the discussion. 1. Actions within product development and manufacturing. ASICS carries seeks product development based on our concept of «Clean, Saving, Sustainable and Recycle» with target quantities to reduce the greenhouse gas emission. 2.Logistical actions enable and Recycle to reduce the greenhouse gas emission with target quantities. Greenhouse gas emission of ASICS products will calculated and assessed for specific delivery unit. Asics is constantly seeking way to produce fewest greenhouse gas emissions. For example, we are considering the possibilities of joint-delivery together with other brands and/or transportation by train other than simply transport through trucks. 3.ASICS is considering energy-efficient transaction management in the supply chain. 4. Investigation in clean energy technologies as an effective means. ASICS considers introduction of wind power & solar energy in the company’s facility. 5.Indirect approach. ASICS plans for introducing carbon offset to its business according to people become familiar with it. We believe we can contribute to the reduction of greenhouse gas emissions by applying carbon offset measures even in indirect manner. ASICS will work for social & environmental issues as part of our regular deal that meets social needs. We are therefore confident that we can develop and provide the most environmentally friendly processes and products in the sporting industry. ASICS is willing to tackle with solving or reducing public burden, which is beyond the government control such as environmental problems. ASICS will exercise to achieve major result on the stage where we can use direct influence As we mentioned, lessening the frequency of transportation will be one of the results of fundamental review of the working style for CO2-reduction. We think integrating the solution of social and environmental problems into daily work will meet the demands of the social requirements. There’s nothing can be solved global warming if your environmental activity is separated from routine work. Our corporate activities are going to calculate and assess into greenhouse gas emission. ASICS will WFSGI Handbook 09 41 Energy Saving at asics We will make CO2 emission reduction effort, but won’t use it as an excuse that we won’t make necessary environmental efforts that cost money. Committed to sustainable innovation Being a product driven organization and the most innovative company in the market, ASICS is devoted to continuously improving its processes and products. As such we seek to integrate environmental improvements in the design of our processes and products. We feel ASICS ECO PLAN Mark Recognition Standard Clean: We will reduce environmental impact in manufacturing activities. •Products made of environmentally-friendly materials for reduced impact at time of disposal •Products constructed with materials that easily biodegrade and breakdown to reduce environmental impact at time of disposal Saving: We will save energy and resources used in manufacturing activities. •Resource saving products that use less materials •Products that make efficient use of resources by adopting common materials •Energy saving products with an energy efficient manufacturing process Sustainable: We will reduce wastes by extending product life. •Products that allow repair and replacement of worn out parts or those with a construction that makes repair and replacement easy •Products that use durable materials and are of durable construction Recycle: We will recycle products towards the goal of a recycling oriented society. •Products designed for the recycling system (product collection recycling product) •Products that make use of waste materials •Products that make use of recycled materials Packaging materials: We consider packaging materials to be parts of the product and will make efforts for the reduction and simplification of packaging materials. “ Sporting pursuits are no longer separable from our everyday life.They are deeply connected to society and culture... We will strive to play an important role in the health and happiness of people all over the world, with sport as our core interest. ” Kiyomi Wada, Chairman ASICS stands for “Anima Sana in Corpore Sano”, a sound mind in a sound body. A Latin phrase expressing the ancient ideal of a sound mind in a sound body. We believe that sport has not only a positive effect on the body and soul, but has a universal meaning that overcomes cultural differences and contributes to improving solidarity. that this approach is the most effective and direct approach to achieve sustainability improvements. Even better we perceive sustainability as a source for innovation. there’s the road i run and there’s my road In general, most environmental impacts of a product are determined in its design. Moreover, the design of a product also profoundly impacts the production process. The goal should therefore be to ‘’design for environment’’. Based on our company’s tradition and culture, objectives and societal commitment we seek to design our products using the best available technology so to maximize sustainability benefits. A concrete result of our dedication to sustainable design is our range of Eco Plan products. The Eco Plan range sets our benchmark in the use of recyclable materials and energy reducing technology. Multiple approach to environmental program Energy saving products sell good in the environment friendly items. But it won’t sell good other than energy saving products. Customers and clients are not accepting it. There aren’t many customers and clients who buy eco-products just only it is using recycling materials. In short, they chose the products which brings monetary profit something like saving electricity expenses. The emphasis placed on global warming is particularly noteworthy recently as if it’s one of the marketing approaches. However, ASICS notes there are many environmental issues remained. ASICS think we must carefully listen to criticism in the developing countries. For examples, even we will also make efforts to promote recycling and forestation overseas, the local society may disagree on what we think right and better. HIVAIDS related-issues could be more serious matters for the local society than spending money for forestation. It is very important to combat global warming. The pressure to combat is become more and more strong in the world. ASICS will tackle with environmental problem from a variety of standpoints something like efficient energy use. ASICS means Anima Sana in Corpore Sano: timeless wisdom reminding us that a healthy body is the cradle of a healthy mind. PUMA – Energy Today and Tomorrow PUMA – Energy Today and Tomorrow PUMA – Energy Today and Tomorrow Response to upcoming challenges of global energy issues. Listening to Others During PUMA’s 5th annual stakeholder dialogue “Talks at Banz” climate change was a main topic and we shared our ideas and efforts related to energy efficiency and to tackle climate change with various experts from WWF, Greenpeace, the Carbon Disclosure Project or the German Environmental Business Association B.A.U.M who provided valuable feedback. They helped us developing our strategy in terms of defining where we stand as of today, in setting ambitious but realistic targets and in finding ways of how to inform our consumers, including our suppliers. Where do we stand today? Based on the principle of sustainable development, we at PUMA reviewed our own “Pawprint” related to energy consumption and carbon emissions. Supplier of Rawmaterials Supplier Stores PUMA HQ Offices Logistics Subcontractors Starting from where our influence is at the greatest, namely at our own offices, we tracked the energy consumption on a per employee basis for offices in more than 30 countries worldwide. We compared the results, advised office managements on how they could improve their energy efficiency and set up an ambitious target to reduce the average energy consumption until 2010 by 20% based on the levels of 2005. The tracking of the environmental Key Performance Indicators, KPI, has been established as an ongoing process and is being followed up on a yearly basis. The results of our monitoring efforts and the trend of the last three years are published on our website about.puma.com in the sustainability section. PUMA offices worldwide Average data per Employee 2005 2006 2007 5,203 2.65 11.32 0.48 - 4,409 2.25 11.54 0.45 - 4,884 2.49 15 0.38 0.05 Electric Energy (kwh) CO2 (tons) from electric Energy Water (m3) Waste (tons) Paper (tons) Realizing Best Practices To demonstrate our strong commitment to fight climate change as well as to minimize our energy bill, we got engaged with an energy efficiency institute. The institute is responsible for integrating energy efficient technologies into our new Head Office, the PUMA Plaza in Herzogenaurach, Germany. While the building is currently still under construction, we hope to celebrate the “house warming” in 2009. The building features some state of the art energy efficiency technology such as motion sensors for lighting, concrete core temperature control for climate control and rain water usage for washroom facilities. As the most visible and effective sustainability innovation of the building, a solar power station with 1000 square meter of photovoltaic cells will be installed on top society. Following the seminar factories may choose which project they want to pursue as applicable in their operation. Logistics and Production At the same time, we commissioned a diploma thesis to find out about the total CO2 pawprint of one pair of shoes, considering the whole lifecycle of the shoe from cradle to grave. Besides our own operations, the production and transportation of our products worldwide marks a significant part of our environmental “Pawprint”. In the year 2008, for the very first time, we were able to track the CO2 Emissions from our logistics operations worldwide. We considered the transport route from the point of production to the main warehouses worldwide, from where the final distribution to the retail stores is being handled. Dr. Reiner Hengstman, Global Head Environmental & Social Affairs and Stefan D. Seidel, S.A.F.E. Manager Europe, Puma In the 2008 handbook of the WFSGI, PUMA elaborated on the challenges imposed by climate change, declining fossil fuel resources and the immediate need for a paradigm shift to avoid large scale damage in the future. of the roof and partially integrated into the façade. This power station will generate enough energy to supply the equivalent of 20 homes and save 35 tonnes of CO2 emissions per year. Calculation for transport-related CO2 emissions 2007 Air SeaRailway Truck BtoBRiver 907g CO2 8,9 g CO2 / t.km 5,1 g CO2 / t.km or 0,1tCO2/TEU / t.kam Total 69,3 g CO2 30,4 g CO2 / t.km / t.km ton ton ton ton ton ton Europe 10.612 17.216 69 1.697 0 29.594 Fareast 0.286 0.455 0 0 0 0.741 America 3.623 10.877 45 825 8 15.378 Total 28.548 114 2.522 8 45.713 14.521 We asked our main suppliers to report on energy usage and production records. With this data, we were able to calculate the energy usage which is required for the production of PUMA goods, exemplified through one pair of shoes or one shirt. To do more than merely collecting data, we initiated environmental trainings with the consultancy Neville Clark for our Chinese suppliers and got engaged in a pilot project with the German chemical company BASF to increase energy efficiency and to decrease the carbon footprint at apparel suppliers’ factories in Bangladesh. The first results of these projects were promising and led to energy savings of up to 20%, a reduction of the carbon footprint of approximately 10 %. In Vietnam, footwear suppliers were trained on a multitude of ideas in alternative and renewable energy sources in a seminar in Environmental Economics and Green Business Opportunities. This included harnessing solar thermal energy and waste heat from Aircon units to be used in factory heating requirements, natural light source system in production area, modified building designs to effect natural ventilation and cooling system and collection and cleaning of waste cooking oil into biodiesel to partly substitute diesel usage. In the end, the seminar highlighted not only a win-win situation, but turned out to benefitial for the manufacturer, environment and CO2 Emission from electric Energy (in kg CO2/pair of shoes) Average 2005 1.08 2006 1.12 2007 0.88 As part of our commitment of implementing and enhancing social and environmental standards along the supply chain, our SAFE (Social Accountability and Fundamental Environmental Standards) Team visits all manufacturers of PUMA products on a regular basis to monitor and guarantee the implementation of our Code of Conduct. While the implementation of core labour standards as defined by the ILO remains a key task in some of our main sourcing countries, our SAFE team has shifted its efforts to embrace more and more issues related to product and production related environmental standards. For example, our auditors evaluate the environmental KPI’s of our suppliers by checking environmental certificates, permits and test reports. To demonstrate our strong commitment to fight climate change as well as to minimize our energy bill, we got engaged with an energy efficiency institute. WFSGI Handbook 09 45 PUMA – Energy Today and Tomorrow Outlook With the implementation of a professional software solution for the tracking of environmental key New Balance Goes Back to Basics in Managing Energy Use performance data, PUMA will further increase the data accuracy at its own operations. Split by offices, stores and warehouses, we aim to sharpen our knowledge and information on energy consumption for the PUMA entities worldwide. This will enable us not only to track our progress against the target of a 20% reduction until 2010 but also to develop specific energy efficiency projects related to each type of operation as well as to share best practices among the different locations. At the factory level, pilot energy efficiency projects will continue and be expanded. With rising energy cost and increasing energy shortages in some main production countries, investments in alternative energy resources or more energy efficient equipment are getting ever more attractive – leading to the often cited win-win situation for both - the environment and the financial performance of the company. Currently, there are no existing internationally agreed and defined standards for carbon footprinting. PUMA, however, is committed to contribute to the development of such standards. It might be not before too long that a carbon footprint label will appear on your new pair of PUMA sneakers. Runway_Meio_Wns_DC3.pdf 23.09.2008 13:13:14 Uhr New Balance Goes Back to Basics in Managing Energy Use John E. Campbell, Jr., CFM, Director of Corporate Services New Balance Athletic Shoe Through the evolution of growth and continuous improvement, New Balance sets high expectations for efficient operations at its facilities. New Balance’s ability to continue manufacturing almost 25% of its athletic shoes in the United States rests with its ability to control operational costs and remove waste from the process. Seeking better and smarter ways to use energy in these challenging times is a global quest for all manufacturers. Energy created by fossil fuels has become limited and costly. Manufacturers all over the world are currently engaged in feasibility studies seeking solutions and have made capital investments in alternative energy solutions to support their operations. New Balance has established a tiered approach in addressing the impacts of the energy situation on the company. In an effort to establish a base, the company’s first response has been to return to basics seeking to optimize what is already in place. Steps include drawing as much efficiency as possible from existing plant and process systems. At the same time, smart energy efficient decisions are being made on the upgrade and replacement of process equipment. To complement these actions, optimizing computer based building management systems, installing high efficiency lighting systems and analyzing and identifying opportunities for peak demand shaving have all become important pieces of establishing this primary step. This approach with minimal capital investment has yielded a 1.12 million kWh reduction when comparing 2007 electrical energy usage to the same time period in 2008. Some of the key initiatives that drive these very favorable results include : • Performing routine analysis of business processes, seeking energy efficiency at all levels of the company. • • Transitioning whenever possible, to sustainable-based design elements that conduct or contribute to the delivery of power or other power assisted utilities. Continuous improvement efforts in process and physical plant equipment and preventative maintenance programs, removing inefficiency throughout New Balance’s domestic factories. High efficiency compressed air system NB - Norway, ME Manufacturing Training and Awareness New Balance understands that major tactical and strategic initiatives in controlling energy resources can only be sustained by first establishing the importance of efficiency with the user. New Balance is currently developing a campaign to educate all associates on how their everyday routine impacts energy use. The requirement to reduce waste in energy is everyone’s responsibility. Energy waste is easily found in the work place if one is trained to look for it. Energy use awareness and waste observation tips will be shared to identify conditions usually taken for granted. Associate observation and immediate action to stop the waste provides untold benefits and provides a strong base to a sustainable operation culture. WFSGI Handbook 09 47 nEW balancE GOEs back TO basIcs In ManaGInG EnERGy usE nb’s Global Energy challenge will continue... new balance corporate Headquarters - boston, Ma Successes Achieved • Severalupgradesinfactoryutilityinfrastructure have been completed at all U.S. Manufacturing and Distribution locations within the past 18 months resulting in decreased energy and utility usage • Overthepast12monthsmultiplebuildingprojects were completed that incorporated green and sustainable elements including high efficiency lighting and upgraded heating, air conditioning and ventilation systems. Many of these designs included open space day lighting elements that take advantage of natural ambient lighting • Totalenergybudgetsavingsfordomesticlocations of over $500K for budget year FY07 was realized by the introduction and expanded use of energy management programs at all New England locations • Newlightingdesigns,continueddevelopmentand programming of building management systems and coordinated energizing schedules for plant equipment resulted in a 1.12 million kilowatt hour savings as of August 2008 when compared to the same period in 2007. New Balance will continue to manage the dynamics of energy use and conservation. The results desired combine these dynamics to produce a fully functional and efficient operation. As stated earlier, optimizing building management systems, good choices in procuring process equipment and providing awareness training for associates to identify waste will continue to serve the company well as its first line of defense. Renewable energy source technology provides the next tier of action and will be called upon to compliment a total energy plan. New Balance has engaged studies for the use of wind and solar collection at selective domestic locations. Currently, these projects are being assessed at a feasibility stage taking into consideration a wide array of factors from environmental impact to return on investment. It is widely accepted that alternative energy use will soon become the preferred energy platform and provide positive results on many levels. New Balance’s long term agenda in terms of renewable or alternate source energy involvement seeks to : • Purchaseamajorityshareofourpowerneeds through renewable or alternative power by 2014. • Developplansforatleastonealternativesource to contribute power to a New Balance location by 2012. For now, New Balance’s response to the global energy situation has leveraged low cost initiatives and operational waste reduction. In turn, the company has begun to establish a strong and sustainable base as it prepares for the next tier of corporate energy management. In an effort to establish a base, the company’s first response has been to return to basics seeking to optimize what is already in place. sPORT 2000 lEaVE a “GREEn FOOT PRInT” aT EVERy busInEss lOcaTIOn In EuROPE SPORT 2000 leave a “GReeN FOOT PRINT” aT EVERy busInEss lOcaTIOn In EuROPE Wolfgang schnellbügel, Managing Director, Sport 2000 International ”Some men see things and wonder why. I dream of things that never happened and wonder why not.“ I happened to stumble upon this quotation of the legendary US President John F. Kennedy when thinking about how SPORT 2000 International deals with sustainability on the global market with sports goods. Don’t we all dream of protecting our endangered environment by developing, launching and selling ever greener products ever faster and don’t we all wonder at the same time why they could not be developed yet or faster? It is us in our capacity of retailers that play a key role in acting as “gate keepers” for 500 million European consumers in the currently ongoing global sustainability process. We act as intermediary between millions of consumers which have demand for our range of goods and thousands of manufacturers and the products they offer. This applies in particular regarding leisure time and sports products and especially for us as SPORT 2000 International. This is why we have been following up on the sustainability debates in the EU for many years. As far as many a detail issue is concerned, we draw conclusions as to our own marketing behaviour on the market. Among other things, the EU’s “Green Week”, now in its eighth year, from 3 to 6 June 2008, at which 3,000 delegates discussed the current trends and activities for the protection of the environment in Brussels constitutes a benchmark for this debate between the central office and its partners. At the conference under the heading “Only one earth – Don’t waste it!“ it was debated how we could change our lifestyle and use the scarce resources of our plant in a more sustainable way. Debates were focused on four sub-topics: resources and waste management, sustainable consumption and production, nature and biodiversity as well as climate changes. At the EU’s Green Week, EU Commissioner for the Environment Stavros Dimas emphatically pointed out the link between lifestyle and environmental problems by stating: “Our current consumer behaviour is not sustainable but causes environmental problems. It will get much worse if we do not change our habits.” His reference to the inconsistency between what Europeans say they do and actually do has stirred up all of us: “More than 70 percent of all Europeans indicate their willingness to spend more money on environmentally friendly products but when they have a choice, only 17 percent are actually willing to buy these products. This means that we need to change ourselves if we want things to change. It takes inspiration and a wealth of ideas to solve the complex global environmental problems.” We at SPORT 2000 International are convinced that we have been realising inspiration and a wealth of ideas in terms of what the EU Commissioner said since our foundation more than 40 years ago. We have been aware of it right from the start that as a trans-European supplier of sports and leisure-time products we will only manage to succeed on the market if sports and leisure-time activities are practiced in a healthy environment. Our current concepts are all based on this idea. sPORT 2000 lEaVE a “GREEn FOOT PRInT” aT EVERy busInEss lOcaTIOn In EuROPE How do we promote it? We recommend that our member shops adjust the energy balance of their companies on the basis of state-of-the-art ecological findings with respect to energy-saving construction and operation. For instance: use of environmentallyfriendly air conditioning systems, thermal insulation, heating and energy-saving bulbs. We at the central office of SPORT 2000 International in Mainhausen, for instance, have decided not to install an air conditioning system. This is how we optimise energy requirements in an environmentally compatible way. With our business concepts we mainly promote small and medium-sized retail shops in the area, in the neighbourhood. This means that our customers do not have to travel far to visit ever growing malls on ever bigger green meadows. With its exclusive brands SPORT 2000 International is a member of the BSCI but also focuses on brand suppliers which have done their homework as far as sustainability is concerned. At the same time, all central offices support product sales by their partners with products which have a longer life than those offered by the known discounter supermarkets. It has long been a tradition of SPORT 2000 International to always also support suppliers with production sites in Europe, i.e. in the vicinity. This particularly applies to ski boots and hiking boots. Wherever possible, SPORT 2000 International tries to avoid the use of PVC both when it comes to purchasing and selling. For instance, there is no entry price level for children’s shoes made of PVC. As economically as well as ecologically oriented supply and demand association of small to medium-sized specialised sports shops in Europe which has its roots in the French alps, we will in future seize any potential for improvement including what is offered by the international association of the sports goods industry regarding sustainability. As one of the leading suppliers of sports goods and sports fashion in Europe, we will continue to strive for the promotion of sustainability in all areas we have an influence on. At a time when everyone is personally asked to calculate his own ecological foot print and to make a contribution towards the reduction of CO2 emissions in Europe, it is our intention to clearly emphasise our “green foot print” in all towns and cities in which we are represented as SPORT 2000 and to intensively support the EU-wide challenge “It is you who influences climate change”. We as SPORT 2000 dealers also say “We will if you want“. This means we do both: We promote the demand of as many consumers as possible for sustainable products in our shops and at the same time promote sustainable use and consumption of our products with our range. For details about Green Week: ec.europa.eu/environment/greenweek/ home.html SPorT 2000 International is one of the leading associations of specialised sports good dealers in Europe with 3,5000 sports shops in 25 countries and a turnover of more than 4.6 billion euros. The national member organisations of SPORT 2000 International increasingly act as wholesalers. The number of shipments to shops can thus be reduced. The scope of energy-consuming transportation may be reduced, less packaging waste is created. Also, as a consequence of cooperation between the national organisations and the industry, purchasing is only focused on a few larger-scale order events. This means that it is not necessary for dealers to visit many different central order exhibitions. Furthermore, all SPORT 2000 International organisations keep a watchful eye on pollutant emissions by business vehicles. some men see things and wonder why. I dream of things that never happened and wonder why not. us President John F. kennedy 51 WFsGI HanDbOOk 09 Alpargatas seeks the raise of sustainability in business Alpargatas seeks the raise of sustainability in business Alpargatas seeks the raise of sustainability in business The Company understands the implications of a responsible posture and perceives the economical, social and environmental dimensions as strategic themes. Sao Paulo Alpargatas All organizations depend on natural resources to keep up with their activities. All of them consume energy, generate waste and need not only to be aware of the impacts they may generate today and in the future, but also seek alternatives to neutralize these impacts. This is a challenge that has been faced successfully by Alpargatas. As a major brand of footwear and sports products company, Alpargatas understands that success in business depends not only on the quality of their products and services, but also, more and more, on an ethic and responsible position before the whole society. For this reason, the company applies financial and intellectual capital to conduct innovative solutions promoting the sustainability and preserving the capacity to attend the needs of present and future generations by way of a management focused on the balance between environmental, economical and social aspects. From the economical and financial viewpoint, Alpargatas is a solid company which has been obtaining increasingly better results. On the social dimension, it takes action in a strategic and effective manner by way of Instituto Alpargatas, established in January 2003 and, since then, it has been responsible for the improvement of a variety of indicators in the Education field. Regarding the © Mario Castello environment, the company invests constantly in mechanisms for clean production and in research and development of low environmental impact products. As a company owned by Camargo Corrêa Group, one of the largest industrial conglomerate in Brazil, Alpargatas signed the Sustainability Letter. This document recognizes that one of the main current issues is to continue to profit in an increasing and continuous way within the boundaries imposed by nature and affirms the group’s commitment in taking part of the future. Such commitment is also expressed in the Vision, Mission and Values of the company.Alpargatas’ Vision is to be a global company with desired brands of sports products, footwear and industrial textile. The mission is to develop and trade innovative products of high value perceived, with quality and profitability, world class and value creation for shareholders, employees, suppliers and customers, acting with social and environmental responsibility. The values are the five principles guiding the company: Ethics, Respect to People, Innovation, Customers Satisfaction and Commitment. The whole organization is committed to the sustainability project, which is part of the strategic planning and the operational plan of the company. This theme reaches all directors and as a result makes it more viewed and more worked on. The company is also registered at GRI (Global Reporting Initiative), official collaborative center to the United Nations Environment Program which provides the guidelines for the design of reports on sustainability and evaluates the transparency in the description of economical, environmental and social impacts. The company holds daring environmental goals that foster the constant review of processes and helps to put into practice the concept of eco-efficiency: produce improved assets and services by continuously reducing the use of resources and generate pollutants. On Alpargatas plants the principle conducting the life cycles of nature is pursued: nothing is lost, everything is transformed. Some wastes are 100% re-incorporated to the production process. Others, such as timber, scrap metal, laminates, foam, paper, plastic and card board are reused by partner companies and return to marked as byproducts becoming bags, tiles and even couches. The air quality is ensured by monitoring of gas emissions and by searching alternative, less pollutant and more recommended materials or fuels. The replacement of BPF oil by natural gas, the installation of exhausters, filters and gas washers and the use of water based paint with no solvents are good examples of this evolution. In order to secure the continuous improvement processes, all employees are encouraged to participate with ideas in a program which awards the best suggestions. In every unit there is a Labor Security, Health and Environmental Committee which approves and evaluates the improvement programs and fosters the awareness of the employees, seeking their active participation on the preservation of health and environment. The company is also advancing on the field of reverse logistics, which means to catch the product used by the consumer and transfer it to proper disposal. There is a pilot project already in test phase concerning reutilization of used and discharged rubber sandals on asphalt composition. These examples evidences the restlessness of the company in meeting the sustainability on business, a behavior that already influences the whole supply chain, evaluated by economical, social and environmental indicators. Alpargatas understands that success in business depends not only on the quality of their products and services, but also, more and more, on an ethic and responsible position before the whole society. The search for sustainability raise is viewed as a business opportunity, source of innovation and competition advantage that brings positive results as makes the productive chain more efficient, reduces operations risks, facilitates funding, makes possible to attract and maintain talents, values the brand and enlarges the chance to be ahead with innovative products and processes. Likewise, innovative is the Instituto Alpargatas (IA) actions which bets on the changing power of education, with a mission to improve the quality of teachinglearning process by way of sports. The Institute coordinates projects on Education by Way of Sports and Volunteering programs in cities of Brazilian Northeast where Alpargatas plants are located. Among the benefited cities there are Santa Rita, João Pessoa and Campina Grande, all in Paraíba State where is found the lowest Human Development Indicators (IDH) in Brazil. In addition, IA develops projects in Natal, at Rio Grande do Norte State and in Carpina, Pernambuco State. © Mario Castello The actions are carried out in three fronts : • School Action, carried out in partnership with city and state teaching institutions, with the objective to develop the quality sports practice as a methodological tool for the education improvement. • After School Action, gathering a number of partners ranging from volunteers to public institutions and non-governmental organizations, which provide sports activities, recreation and professional training courses for children and youth, outside regular classes time. • Financial support for the remodeling of sports courts and squares. WFSGI Handbook 09 53 Alpargatas seeks the raise of sustainability in business In 2007, Instituto Alpargatas developed 77 projects of Education by way of Sports in the cities of Campina Grande, João Pessoa, Natal and Santa Rita, which benefited 42.589 students, 2,3% more than the previous year. The continuing evolution of indicators measuring the Project performance, such as socio-educational inclusion, human diversity, classes planning and school performance, have been found during each term and in comparing every year as well. Teachers, supervisors, technicians and volunteers, totaling 720 professionals had a total of 12,888 hours of training on learning planning, new teaching methodologies, reports design, capacity building in physical evaluation, among others. The investments in continuing education had a direct impact on the improvement of teaching quality as it kept the professionals both updated and motivated. The After School action Project developed in João Pessoa, within the Program on Child Labor Eradication – PETI reinforced the assumption that activities complementary to school time strengthen the whole education and collaborate with the identification of talents. This was the case of Latocando group, comprising 23 children who play percussion instruments made with recycled materials. Memorandum of Understanding between APP and NASEO A number of actions of the Education by way of Sports Project have already been incorporated to the teaching methodologies of the participant schools, which demonstrates the reach of the goal related with influencing public policies. Another step towards this direction is the project developed by the Center of Educational Skills and Sensory-Motor Learning (CEEAS) in Joao Pessoa, in partnership with Instituto Alpargatas and the Government of Paraíba State. The work applies the dermatoglyphics – analysis of digital prints – to indicate more suitable the sport to the physical qualities of each student. It already attends about 30 thousand youth. Instituto Alpargatas is also the manager of Citizen Employee Project, which fosters volunteering in the staff of the company and their relatives as to complement its actions for education improvement. In 2007 the volunteers’ registry summed up to 592 persons. Among a variety of action ways, it should be highlighted the classes on information technology, basic electricity, tae-kwon-do and soccer taught by volunteers in courses offered outside school time. In the current year, IA increased to 106 the amount of Education by way of Sports – School Action projects and to 29 the number of After School projects. The consolidation of the Education by way of Sports project and the construction of a solid network of relationships have been decisive for the choice of the Instituto Alpargatas as one of the main partners of the Ideal School program, an initiative by the Instituto Camargo Corrêa, aiming at developing the democratic and participative management of public schools. The partnership already benefits 90 thousand students all over Paraíba Sate. A segment leader in various sports modalities, with the brands Topper, Rainha and Mizuno, Alpargatas sees the sports as an instrument for social transformation capable of bringing for the self-esteem and developing human values indispensable for a healthy society. Sports promote the biological, sociological and psychological balance of children by strengthening their bonds with school, family and friends. The sports activities, the games and the plays have potential to educate and provide joy and well-being. Sports reinforce the perspectives of social insert, improvement of life quality and invigorate the hope of a good future for children and youth by way of relationships founded and sustained on universal ethic values. © Mario Castello Memorandum of Understanding between APP and NASEO Bill Nesmith, Senior Energy Advisor, NASEO and Dr. Griffin Thompson, Program Manager, Asia-Pacific Partnership on Clean Development and Climate, U.S. Department of State The Asia-Pacific Partnership on Clean Development and Climate (APP) is an innovative new effort to accelerate the development and deployment of clean energy technologies. Its Partner countries of China, India, Canada, Korea, Japan, Australia, and the United States collectively account for over half of the world’s economy, population, and energy use. While each Partner has different natural resource endowments and sustainable development and energy strategies, Partners are actively working together to achieve common goals. By building on the foundation of existing bilateral and multilateral initiatives the Partners are cooperating to meet increased energy needs including those related to air pollution, energy security, and greenhouse gas intensities. APP Partners are collaborating to promote and create an enabling environment for the development, diffusion, deployment and transfer of existing and emerging cost-effective clean technologies and best practices. It is a goal that these efforts lead to strong economic growth while enabling significant reductions in greenhouse gas intensities. In addition, the Partners will share experiences in developing and implementing our national sustainable development and energy strategies, and explore opportunities to reduce the greenhouse gas intensities of our economies. State Energy Officials and U.S. Departement of State become Parners On September 9, 2008, the National Association of State Energy Officials (NASEO) and the U.S. State Department signed a Memorandum of Understanding that will provide a mutually beneficial framework for technical cooperation under the Asia-Pacific Partnership program. The agreement was signed by NASEO Chair Dub Taylor of Texas and Ambassador Reno Harnish, Principal Deputy Assistant Secretary of State for Oceans, Environment and Science. As a unique initiative funded by the U.S. government, APP is designed to leverage the power of public-private partnerships to accelerate the deployment of clean energy technology throughout the Asia-Pacific region. Through the MOU, the APP and NASEO will identify opportunities for collaboration between the Partnership and state and local governments on replicable clean energy policies and projects. The APP advances efforts under the UN Framework Convention on Climate Change to construct a post-2012 arrangement on climate change that is effective and economically sustainable. This will require major emerging economies like China and India join developed countries to curb greenhouse gas emissions, which is a key objective of the APP. By combining efforts to foster practical cooperation in eight key energy-intensive sectors – aluminum, buildings and appliances, cement, cleaner fossil energy, coal-mining, power generation and transmis- APP defined by Partnerships From the outset APP has enjoyed the support of three key federal agencies including the Department of State (DOS), US Department of Energy (USDOE), and the Environmental Protection Agency (EPA). Overall program management is provided by Griff Thompson at the State Department. USDOE and EPA provide overall policy guidance and subject matter expertise for each of APP’s six task forces. EPA’s efforts are lead by Kathleen Hogan, Director of Climate Protection Partnership Division while USDOE is represented by Mark Ginsberg of DOE’s Board of Director’s. Numerous experts from the USDOE National Laboratories also participate and have made significant contributions. WFSGI Handbook 09 55 Memorandum of Understanding between APP and NASEO sion, renewable energy and distributed generation, and steel – the APP partner nations are promoting and advancing energy efficiency, climate, sustainable development, and energy security goals. Thus far, the United States has appropriated over $65 million to the APP. Recently the United States has seen how effective APP activities are in promoting common knowledge among member countries in unders- About NASEO The National Association of State Energy Officials (NASEO) is the only national non-profit organization whose membership includes the governor-designated energy officials from each state and territory. NASEO was formed by the states and through an agreement with the National Governors Association in 1986. The organization was created to improve the effectiveness and quality of state energy programs and policies, provide policy input and analysis, share successes among the states, and to be a repository of information on issues of particular concern to the states and their citizens. NASEO is an instrumentality of the states and derives basic funding from the states and the federal government. Members are senior officials from the State and Territory Energy Offices, as well as affiliates from the private and public sectors. Member state agencies work on an extremely wide range of energy programs and policies, including : • Energy efficiency in homes, commercial/public buildings, industry and agriculture ; • Renewable energy, such as solar, wind, geothermal and biomass ; • Residential, commercial and institutional energy building codes ; • Transportation and heating fuel supplies, pricing and distribution˚; • Oil, natural gas, electricity and other forms of energy production and distribution ; • Energy-environment integration (such as using conservation to reduce air emissions) ; • New and emerging high efficiency transportation fuels and technologies ; and • Energy security and emergency preparedness, and many other energy matters. Energy efficiency and the WFSGI tanding their respective barriers and opportunities. This is a prerequisite for an effective negotiating environment for global climate change. APP provides a launch pad for specific, focused, on-the-ground initiatives by the public and private sectors to promote widespread adoption of cost-effective renewable energy and energy efficiency technologies. The APP seeks to not only involve the private sector in its activities, but to also work with state and local governments. One collaborative example of this is a project that is promoting energy efficiency cooperation between the Indian state of Maharashtra and the state of California that will help alleviate Maharashtra’s 5000 MW energy shortfall. WSFGI Joins the Effort At their meeting in Herzogenaurach, Germany, on September 25, 2008, the World Federation of Sporting Goods Industries (WSFGI) decided to become a participant in APP’s efforts to cut energy use and greenhouse gas emissions in developing countries including China and India. The sporting goods industry is a large and growing sector that uses substantial amounts of energy in the manufacture and transportation of a diverse array of products. NASEO and WSFGI are proposing to work together to develop and implement an efficiency program to serve members and contract suppliers of the association. It is hoped that this effort will be a model for using associations in other industrial sectors as a channel into the marketplace and influencing members to implement clean technologies. Next steps include : • Prepare energy efficiency and best practices recommendations for factories in China and India • Issue a request for proposal and select one or more energy services companies to provide services • Select three factories to participate in pilot energy efficiency program • On site visit to three factories participating in pilot EE program • Installation of EE recommendations at three factories • Develop tool kit for providing turn-key EE services on a broader scale • Develop EE roll out plan to WFSGI members. For more information please contact Robbert de Kock at WSFGI at [email protected] Energy efficiency and the WFSGI Dave Newman, Global Climate and Energy Manager, Nike Energy efficiency is not a new concept. Investments in energy efficiency translate to lower operating costs and the savings go directly to the bottom line. The SCLC aims to help companies better understand the climate impact of their supply chains. Twelve companies participated in a pilot project, distributing surveys on climate change efforts and initiatives to more than 300 suppliers. Typically, companies will concentrate their energy efficiency investments in owned facilities, then move to potential savings in longterm leased facilities. The new frontier for global companies is implementing energy efficiency thinking throughout their supply chains. Global supply chains are often complex, fragmented systems managed by many contracted and sub-contracted vendors. A company’s ability to influence its contracted supply chains is challenging at best. Very few organizations can mandate energy efficiency from their supply chain. But it’s possible. Global organizations can employ a collaborative approach with their supply chain vendors to introduce and execute energy efficiency programs with benefits for both. Expectations of global companies are changing... or at least how they report the impacts of their global supply chains. A company’s impact no longer ends at the company’s doors. Expectations have changed. Increasingly, companies are held accountable for the impact of the full range of their operations. In response, companies are reporting a more complete climate footprint that includes emissions from their supply chain, including sub-contracted logistics and manufacturing. Three recent efforts have helped companies begin to understand and address these issues. One effort to help companies with this effort is The Carbon Disclosure Project’s (CDP) Supply Chain Leadership Collaboration (SCLC). © Maxim Khokhlov – fotolia.com A Carnegie Mellon University study found that two-thirds of U.S. industries fail to measure up to 75 percent of their total greenhouse gas emissions. This significant gap is caused by considering only impacts from owned operations and energy use. With only a fraction of emissions counted, the study found that industries’ true carbon footprint is severely underestimated by omitting emissions from the supply chain. Understanding and addressing their full range of impacts would help companies identify and tackle the most costeffective emissions mitigation strategies. WFSGI Handbook 09 57 The good news is that many global organizations are creating energy efficiency awareness Many global organizations are actively helping implement energy efficiency in emerging countries by working with partners in their supply chains. These organizations range from non-governmental organizations involved in climate and business integration, to global banking institutions and governments. Programs developed by these global organizations range from training to funding to skills sharing. Non Governmental Organizations (NGOs) China Climate Change Training Initiative (CCCTI) is a partnership between The Climate Group, The British Consulate-Guangzhou (BCG) and Business for Social Responsibility to develop and deliver training for manufacturing organizations in China. The goal of the Initiative is to provide knowledge and practical skills for managing and reporting on climate change impacts. Governments are investing in deploying energy efficiency and clean technology to developing nations. TCG and BCG together are developing and piloting the project “Managing Carbon I China’s Supply Chains - China Climate Change Training Initiative.” The initiative aims to provide knowledge and practical skills for managing and reporting on climate change. The CCCTI is designed to address the needs of two audiences: senior business executives (Chinese business owners and strategic directors); and operational managers (those implementing strategies). Governments Both the U.S. Department of Energy and the US Department of State have programs that support the transfer of energy efficiency/clean technologies into emerging economies. One such program managed by the State Department is an international, multi-country program known as the Asia Pacific Partnership on Clean Development & Climate. To find out more about these programs, please see the article from US Department of Energy and US Department of State (p.55). Collaboration : The new frontier Individual companies have made great strides introducing energy efficiency into their supply chains. Despite the progress, the pace is not fast enough. Company and industry collaboration offer a new rate of change, one that may allow society to reach the climate mitigation goals called out by the Intergovernmental Panel on Climate Change. Once program bringing together industry is a partnership between the World Federation Sporting Goods Industry (WFSGI), US Department of Energy, US Department of State and the National Association of State Energy Officials. The new frontier for global companies is implementing energy efficiency thinking throughout their supply chains. Banks The World Bank, The Asian Development Bank and the International Finance Corporation have established programs providing funding to facilitate deployment of energy efficiency. The programs focus on heavy industry such as steel, cement and building materials in developing nations. These institutions have recently developed additional programs that address the next level of manufacturing. These smaller manufacturers produce consumer goods which include sporting goods products. FASHIONABLE BLING BLING JACKET WITH WATERPROOF, BREATHABLE OMNI-TECH FABRIC. WE’RE HAPPY TO BE ALONG FOR THE RIDE. The World Resources Institute and World Business Council for Sustainable Development Greenhouse Protocol in 2001 together developed a Greenhouse Gas protocol that defined how companies report Scope 1 & 2 emissions, including [energy use, etc]. That work has become the global standard for reporting. The bodies are now developing a new standard for measuring and reporting Scope 3 greenhouse gas emissions, including contracted manufacturing and other supply-chain impacts. RACHAEL COUNTS ON THE TESTED RELIABILITY AND COMFORT OF MANY COLUMBIA PRODUCTS, INCLUDING THE FUNCTIONAL AND Energy efficiency and the WFSGI MEET RACHAEL SCDORIS, PIONEER OF MUSHING. THE IDITAROD DOG SLED RACE IS 1,161 MILES OF BRUTALITY. PARTICIPANTS FACE BLIZZARDS, SUB-ZERO TEMPERATURES, AND UNPREDICTABLE TERRAIN. RACHAEL SCDORIS FACES ONE MORE OBSTACLE: This program is building a set of open source tools for all WFSGI members. Contract manufacturers have been part of the discussion. This program has the potential to help transform the sporting goods industry, and develop a standardized approach for energy efficiency across the industry. SHE’S LEGALLY BLIND. AND WHILE SHE DOESN’T SEE THE FINISH CLEARLY, SHE’S CROSSED IT. AND WILL AGAIN. FOR HER GRIT AND UNWAVERING SMILE, WE ARE VERY PROUD TO CALL RACHAEL A PIONEER OF THE GREATER OUTDOORS AND AWARD HER THE GERT BOYLE MEDAL OF MERIT (M.O.M.). LEARN MORE ABOUT RACHAEL, HER SPORT, AND HER GEAR AT COLUMBIA.COM. © 2008 Columbia Sportswear Company. All rights reserved. Unite to combat climate change Unite to combat climate change Unite to combat climate change • • • ecosystem infrastructure ; reduced greenhouse gas emissions from deforestation and forest degradation ; sustainable cities, including planning, transportation and green building. Achim Steiner, United Nations Under-Secretary-General and Executive Director, United Nations Environment Programme (UNEP) In just over a year’s time, negotiators will meet in Copenhagen, Denmark, to finalize a new deal on climate change. It is essential they come up with an agreement that is inclusive, comprehensive and – most importantly – ratifiable. In order for governments to sign up to a new deal –and justify it to their electorates – they have to be able to clearly demonstrate how it will benefit national economies, company balance sheets and citizens of the least developed countries and the wealthiest nations alike. Governments don’t operate in a vacuum. They have to balance a variety of powerful constituencies, including the private sector. Organizations such as the World Federation of the Sporting Goods Industry therefore have a major role to play in deciding whether we will have a deal in 2009 that can propel us towards a climate neutral and environmentally sustainable future, or whether we put our heads in the sand, carry on business as usual and hope that when the tidal wave of environmental havoc engulfs us we will be among the survivors. Thankfully, from where I sit, I see that business and industry are taking a lead when it comes to progressive thinking. And indeed why not? Businesses have profits to make, shareholders to account to and markets to maintain. Industry leaders increasingly understand both the threats of climate change, and the opportunities presented by tackling it. UNEP’s role is to help our partners seize those opportunities : by presenting the science on which decisions can be made ; facilitating the collaborations and initiatives that translate good ideas into reality ; and publicizing outstanding achievements so they can be reproduced around the world. Recently UNEP launched a Green Economy initiative with the support of top economists and governments, including Germany and Norway and the European Commission. The premise is simple: as a society, The savings that can be made right now are potentially huge and the costs to implement them relatively low if sufficient numbers of governments, industries, businesses and consumers act. we need to adopt new ways of thinking to dig ourselves out of the economic and environmental hole in which we find ourselves. In the 1930s, United States president Franklin D. Roosevelt was faced with an economic and employment emergency. He did what political leaders are elected to do and intervened with a series of programmes, dubbed the New Deal, which steered the economy back to stability. Today we face an even more disturbing, scenario. In the foreground, financial markets are in turmoil, food and fuel prices are volatile, and there is a real threat of global depression. In the background : the threat of environmental bankruptcy from decades of profligate spending of our natural capital. It is clear that business as usual is not producing the results we need. Wherever we look, we see market failures. Climate change – with costs to society and economies beyond calculation – is the most dramatic and threatening failure, but it is not the only one. Annual losses in goods and services due to deforestation are estimated at $2.5 trillion, commercial fish stocks may run out in decades or less, fertile agricultural land is heading in the same direction, and the ranks of environmental refugees are swelling daily. UNEP’s proposal is a new Green Deal that will steer the global economy in an environmentally and financially sustainable direction. Climate change solutions, such as renewable energy, are at the core, but the Green Deal is not just about climate change. It addresses a broad range of economic, social and sustainability challenges through six inter-related pillars : • clean energy and clean technologies, including recycling ; • rural energy, including renewables and sus tainable biomass ; • sustainable agriculture, including organic agriculture ; The potential social, environmental and economic pay-offs of the green economy are huge. The principle is simple: more intelligent management of existing resources will both save and generate money. Take energy efficiency, for example: every $1,000 reduction in a company’s energy bill translates into an extra $1,000 profit. By some estimates, boosting average fuel efficiency in cars in the United States to 35miles per gallon could generate consumer savings of close to $40 billion – money that can be spent in the wider economy. Or look at ecosystem services. Deforestation currently accounts for a fifth of global greenhouse gas emissions and untold losses to rural livelihoods and ecosystem health through siltation, reduced rainfall, flooding and land degradation. A Deutsche Bank report, commissioned by the European Union and released in May 2008, estimates that environmental degradation, including species loss, costs between $2 trillion and $5 trillion annually. In China, environmental degradation in 2004 was estimated to be costing its economy $66 billion, or 3.5 per cent of GDP. Protecting the environment, on the other hand, is a sound long-term investment. It is estimated that just $45 billion a year invested in the world’s 100,000 National Parks and protected areas could not only secure ecosystem services valued in trillions of dollars but boost employment and livelihoods for millions of indigenous and rural people. Compare that to the cost of the recent bank bailouts. The momentum for the green economy is already significant. In 2007, $148 billion was invested in the renewable energy market – up 60 per cent from the year before. Venture capital investments in the United States alone in energy efficiency and clean energy reached close to $2.5 trillion. Such investments could generate between 2 and 3.5 million additional jobs in Europe and the United States, and the potential may be even higher in the developing world. Already India is looking at generating 900,000 jobs by 2025 in biomass gasification, while recycling and waste management already employ an estimated 10 million people in China and 500,000 in Brazil. Political and business leaders the world over are catching on to the potential of the green economy. Countries such as Costa Rica, Iceland, New Zealand and Norway have joined a growing number of cities and businesses in pledging a zero emission future – aware both of the economic benefits as well as the imperative of combating climate change. They are part of UNEP’s Climate Neutral Network (CN Net), which is showcasing policies and inspiring actions that can be exchanged, tested and replicated around the globe. For business and industry, the CN Net also provides a perfect opportunity for participants to enhance their corporate environmental responsibility programmes, respond to growing consumer demand for environmentally sound products and business practices, and make an impact on the company bottom line. The message of the CN Net – to members of the World Federation of the Sporting Goods Industry as well as the world at large – is that climate change can not only be beaten, but that doing so can unleash a host of opportunities to address the multitude of sustainability challenges that we have amassed. Our species – now so dominant on this planet – is characterized by its adaptability, inventiveness and will to survive. We have also proved that given sufficient cause we can work together for a common goal. In the environmental field, the stand-out example is the Montreal Protocol, whereby scientists, governments and industry have combined tom take concrete steps to restore the ozone layer. Their success is a lesson and an inspiration. It is now time to focus on the defining challenge of our generation. Now is the time to unite to combat climate change. UNEP Activities in Energy UNEP works to address environmental consequences of energy production and use, and assists decision-makers in governments and the private sector to make better, more informed energy choices which fully integrate environmental and social costs. The website www.unep.orgprovides information on key activities at the global and regional levels, including UNEP Energy Branch, UNEP Risoe Centre, Sustainable Energy Finance Initiative, UNEP Offshore Oil and Gas Environment Forum, Basel Agency for Sustainable Energy (BASE) and OzonAction Branch. Information is also provided on energy-related policies and strategies. WFSGI Handbook 09 61 Vancouver 2010 Strives for Carbon-Responsible Games and Legacies Vancouver 2010 Strives for Carbon-Responsible Games and Legacies Vancouver 2010 Strives for Carbon-Responsible Games and Legacies 2)REDUCE as many emissions as possible in Games-based construction and operations through energy conservation, and the use of fuel and energy sources that produce low or no emissions. 3)NEUTRALIZE BY OFFSETTING carbon emissions that cannot be reduced or eliminated by investing in projects that remove an equivalent amount of emissions from the atmosphere. Ann Duffy, Corporate Sustainability Officer, and Stephanie Snider, Communications Specialist, Vancouver Winter Games 2010 4)ENABLE AND INSPIRE OTHERS TO ACT by using the 2010 Winter Games experience to increase awareness of and participation in emerging local and global solutions to climate change. The Vancouver Organizing Committee for the 2010 Olympic and Paralympic Olympic Winter Games (VANOC) is committed to integrating sustainability principles in the planning, organizing and delivery of the 2010 Winter Games. VANOC’s aim to use the Games spotlight to inspire others about sustainable lifestyle choices, shift awareness of climate issues and move toward a carbon-responsible lifestyle, on a local and global level, could be one of the great legacies of the 2010 Winter Games. Working together to meet energy needs In conjunction with its government partners and sponsors, VANOC is working toward the smart use of energy in the construction of Games venues, the delivery of its transportation program, and its Games-time operations. The 2010 Winter Games are being held in British Columbia —on the west coast of Canada) — a province which is showing significant leadership on climate change by focusing on a green economy involving residents, communities and businesses. Finding the right energy for the 2010 Winter Games Energy use and the effects of global warming and climate change are inextricably linked when addressing the Organizing Committee’s commitment to convene “carbon responsible Games.” As winter sports and winter Games depend on snow and ice, they are particularly vulnerable to the effects of global warming. The Games also use considerable energy to heat buildings, make snow, freeze ice sheets and sliding tracks, power equipment, and transport people and goods. These activities generate greenhouse gas emissions (GHGs) produced from burning fossil fuels. VANOC’s focus is clear : ensure all of construction and operating plans reduce Games-based emissions of carbon at source through energy conservation and where possible, finding alternate sources of clean energy (energy that produces little or no carbon emissions). The added challenge for the 2010 Winter Games is delivering an energy program that is cost effective and, particularly in the case of its venue program, provides an energy-efficient infrastructure that serves host communities well beyond Games time. KNOW how much carbon our Games are emitting VANOC collaborated with an internationally recognized environmental non-governmental organization, the David Suzuki Foundation1, on a discussion paper about GHG (carbon) management for our 2010 Winter Games. A forecast for the 2010 Winter Games’ carbon footprint is estimated at 340,000 tonnes of emissions2 : This includes : • 120,000 tonnes from direct Games-based activities such as venue construction and transportation ; • 220,000 tonnes from emissions indirectly associated with the Games, specifically air travel by participants and spectators. A third-party auditing firm, PriceWaterhouseCoopers, reviewed the forecast and supported the methodology used. REDUCE as many emissions as possible VANOC has aggressively focused on opportunities to reduce energy consumption in four ways : • power planning • transportation • venue design and construction • office and event operations. Power planning © Photo courtesy of VANOC Responding to the challenges of global energy issues at the 2010 Winter Games Building off of the experience of previous Organizing Committees, input generated in the bid phase and through ongoing consultation with stakeholders, VANOC is taking responsibility for carbon emissions generated by the Games by implementing a carbon management program based on four objectives : 1)KNOW how much carbon the Games are emitting, and publicly track and report on it. The 2010 Winter Games can draw from reliable, clean electric power that is available in abundance thanks to the hydro-based utility sources throughout our province. VANOC is working with the province of British Columbia’s electrical utility provider, BC Hydro, to design an innovative approach to provide both the base power-supply capacity and primary backup power to our key venues with a lighter environmental footprint. For example, temporary heating at Games venues is traditionally provided by propane heat; in 2010, however, lower emission electric heat will be used at our venues instead. By using low-emission electric power, the 2010 Winter Games will reduce carbon dioxide emissions from power generation by 90 per cent as compared to previous Olympic Winter Games. 1 2 The 2010 Generator The power supply for Olympic and Paralympic Games venues is typically provided by direct connection to some combination of utility electrical distribution and temporary stationary generators (independent sources of electricity). Temporary generators both increase the power supply capacity to serve the base load and provide backup power for critical activities in the event of a utility electrical distribution power outage. Generators typically run on diesel fuel and are less desirable compared to the clean hydro-based electrical sources of energy which are abundant in British Columbia. To reduce the need for the traditional use of diesel generators for backup power, new electrical distribution lines, called feeders, will be installed from two different utility power substations to ensure power reliability and reduce the number of generators needed to about 170 units (the Torino 2006 Olympic Winter Games used more than 600 temporary generator units). In addition, many of these generators would be deployed in a “cold standby” role, meaning they would most likely never need to run at all. This example of engineering innovation will result in significant reductions in both GHG and air contaminant emissions. For more information, visit www.davidsuzuki.org Contextual Note : Canada currently emits approximately 5 tonnes of carbon per person per year. 63 WFSGI Handbook 09 Vancouver 2010 Strives for Carbon-Responsible Games and Legacies Transportation With the help of its partners, VANOC is planning for an efficient, reliable, accessible and financially sound transportation system for 2010. This system will include sustainable transportation guidelines for mass transit, park and rides, initiatives to encourage non-motorized access to events and event tickets that include transit passes. In addition, VANOC’s low emission fleet includes hybrid vehicles, fuel efficient vehicles and operating procedures, such as no idling, to help reduce carbon emissions from transportation. By providing hybrids, flex fuel vehicles and vehicles with active fuel management, VANOC sponsor General Motors has been an important partner in helping the Organizing Committee find solutions to reducing its transportation carbon emissions. Venue design and construction Green planning and construction practices have been part of VANOC’s venue development program from the beginning. The close proximity between venues and villages helps reduce the need for single occupancy vehicles and encourages use of public transit. In addition, carbon emissions associated with venue construction have been avoided by using existing venues, where possible. VANOC and its venue partners collaborated to build all new Games venues to a LEED3 green building standard rating of at least silver. The application of LEED green building principles regarding energy efficiency and clean energy use for villages and venues will reduce operating costs and lower emissions over the lifecycle of the facilities. Due in part to LEED, each of the 2010 Winter Games venues demonstrate energy conservation and efficient measures. Many of the venues utilize waste heat recovery from refrigeration to heat other areas of the building. Office and event operations Further reductions are being sought through sustainable operational activities such as procurement, office management and event management practices emphasizing energy conservation, energy efficiency and waste reduction. 3 The Leadership in Energy and Environmental Design (LEED) Green Building Rating System is the most respected standard for developing high-performance, sustainable buildings in North America. For more information about LEED, visit the Canada Green Building Council website at www.cagbc.org. VANOC’s Lead-by-Example program for its executives, along with employee engagement activities that include an annual Commuter Challenge, encourage sustainable, low emission transportation to the workplace while promoting a healthy and active lifestyle. In addition to facilitating carpooling, the Organizing Committee encourages the use of public transit and cycling to work by providing a rush-hour shuttle service to the nearest rapid transit stations, as well as bike lockers and showers. VANOC’s sustainable office, meetings and events guidelines help its workforce make smart energy choices in their meeting and event planning and convening. Significant reductions in VANOC’s carbon footprint can also be found through the management of its overall waste. By minimized waste at its offices and venues during the last two reporting periods, the Organizing Committee has diverted 98 per cent of its waste from landfills in the last fiscal year. All VANOC offices and construction sites have waste reduction and recycling collection programs in place; however, the bulk of the waste is not generated on a per capita basis by its workforce, but rather by venue development and overall operational activities. VANOC has © Photo courtesy of VANOC recycling programs in place at all construction sites to help minimize emissions from the transport of waste resulting in no vegetation debris from land clearing at the mountain venues being sent to the landfill. For example, at Whistler Olympic Park, VANOC re-used much of the wood waste as fill for temporary sites, Vancouver 2010 Strives for Carbon-Responsible Games and Legacies donated large woody debris to regional fish habitat enhancement programs and composted much of it for use as revegetation and erosion control. After the 2010 Winter Games, VANOC will be obtaining independent verification of the reductions in carbon emissions achieved in the areas of power planning, transportation, venue design and construction, as well as office and event operations. In the meantime, by applying green and sustainable practices to all of its activities and operations to date, the Organizing Committee estimates that it has been able to reduce its carbon emissions by 20 per cent over what would have been if these measures had not been taken. NEUTRALIZE by offsetting VANOC has consulted with its partners, corporate sponsors and interested environmental and community groups on how it should go about offsetting emissions that cannot be reduced or eliminated at source. Carbon offsets are activities that compensate for carbon (or GHG) emissions in one area by reducing them in another resulting in an overall outcome of no net increase in emissions. VANOC is investigating credible projects to invest in that will offset Games emissions by identifying further energy efficiencies or renewable energy sources elsewhere. Examples of projects that could receive investment from funding raised for 2010 offsets include: 1. Conversion to renewable energy — projects that replace the use of fossil fuels with energy from renewable sources such as solar, wind, geothermal or tidal 2.Energy efficiency — projects that conserve energy and/or increase the energy efficiency of buildings 3.Carbon sequestration — projects that capture or store carbon from the atmosphere. Developing an offset investment program is both technically and financially challenging — the scope of GHG emissions to be offset must be defined. As a result, VANOC is including the Olympic and Paralympic Games Winter Games period, as well as air travel by athletes, of- Did you know... The Government of Canada and VANOC commissioned a business case analysis for improving the environmental and operational performance of the Hillcrest Curling facility. The study indicated that the incremental investment required will be recovered in four years through reduced energy costs — proving it saves more to plan sustainability up front. The report is available at vancouver2010.com. ficials, spectators and workforce. The Organizing Committee has received a sound estimate from the David Suzuki Foundation; however, the total scope of the offsets needed won’t be known until closer to Games time. ENABLE and inspire others to act Together with its partners and sponsors, VANOC is seeking opportunities to mobilize participants, spectators and citizens on actions that encourage behaviour change around energy consumption and sustainable lifestyle choices. In efforts to influence behaviour of future Organizing Committees and large-scale events through a transfer of knowledge, VANOC is working on documents such as the Sustainability Management and Reporting System, environmental management plans, green meetings and events, and green office guidelines for future Organizing Committees. An important next step in VANOC’s Carbon Management program is to consult with its partners, sponsors and different groups participating in the 2010 Winter Games — including athletes and the media — to find ways to collaborate with VANOC on climate change. VANOC is doing its best to reduce its footprint as much as possible and in a cost-effective way. Many of the groups and organizations involved in the 2010 Winter Games are already taking responsibility for reducing their carbon footprint through their own programs or initiatives. VANOC would like to work with them to find ways to make innovation and public activation on climate change one of the lasting stories and legacies of the 2010 Winter Games. Did you know... © Photo courtesy of VANOC VANOC produces an annual Sustainability Report. It is based on the internationally recognized Global Reporting Initiative G3 guidelines and can be found at vancouver2010.com/sustainability. WFSGI Handbook 09 65 IPR Committee - Activity Report 2008 IPR Committee Activity Report 2008 Jochen M. Schaefer, Chairman of the IPR Committee - Intellectual Property Rights 1. IPRC’s Projects and Structure : Right after the Election of the new WFSGI Board in June 2007, the shaping of a new structure took place. After consultation with the then new WFSGI President John Larsen and the WFSGI Executive Committee, five concrete projects were defined and subsequently approved by the WFSGI’s Board. Each of these projects is headed by a co-chairman: “See descriptions of the five projects page 20 and more details from page 74 to 79”. 2. Activities 2007/2008 : a. Viability of Projects : The main focus in this first working period of the IPRC which commenced in fall 2007 was laid on the following focal points : • Isthereanindustryneedandconcretemembership interest to realize them ? • If, yes, are they viable in terms of the existing resources at WFSGI level or can services be outsourced to achieve concrete results, if yes at which cost ; • Definition of concrete projects, timelines and objectives. By the end of October 2008 it turns out that the first results are different for each of the above projects (see progress reports of the five co chairmen in this Handbook). Based on the preliminary findings and conclusions drawn, it will be discussed in a conference call among the Co-Chairmen of the IPRC and its Chairman which of the above projects are proposed to be pursued and which to be dropped, the results will be presented in the course of the next WFSGI meeting to the Ge neral Assembly in Munich in January 2009. b.Committee Meetings : i. The first meeting of the newly structured and composed IPRC took place in Munich on January 25, 2008. In addition to the presentation of the five projects by the respective chairmen, the key note speaker, Mr. Jian Liu, Division Director of the International Cooperation Department of China’s Intellectual Property Office (SIPO) described the role of SIPO and how the Office can be of help for WFSGI members. ii. The subsequent meeting in Beijing on May 28, 2008 involved an intensive dialogue with Chinese IP-related authorities, in particular with Ms. Zizi hua LV, Deputy Director General of the China Tra demark Office (CTMO) asking her questions like : • What is the wish list of the CTMO when dealing with foreign brands ? • What can be improved, what are the recommendations of the CTMO. It is the firm intention of the IPRC to continue and ex pand this dialogue with the key Chinese institutions and authorities in the field of intellectual property pro tection and enforcement to further improve the IP protection in China same as in other regions of the world Further progress reports were provided to the attendees by the five co-chairmen either present them selves or presented by myself on their behalf. c.Cooperation with World Intellectual Property Organization WIPO : I am pleased to report that a very positive and close cooperation has been established between the World Intellectual Property Organization (WIPO) and the WFSGI. On November 10-14 a WIPO seminar for journalists is held in Geneva on the importance of intellectual property rights in sports. We have been able to co-define the agenda together with WIPO and have also helped to find suitable speakers for this event. It is also planned to stage a joint WFSGI/WIPO semi nar in January/February 2009 educative seminar jointly with WIPO for the sporting goods industry, the aim of which would be to raise awareness among members of the role of WIPO, the strategic commer cial importance of IP and the range of services that WIPO offers to industry to promote and facilitate use of the system and effective management of IP as sets, including alternative dispute resolution in this area (mediation/arbitration). 67 WFSGI Handbook 09 IPR – the way to become a global brand IPR Committee - Activity Report 2008 IPR – the way to become a global brand Guenter Schrotzhammer and Tanya Carter, Managing Partners, “The Missing Link Brand Engineers, Munich” 20/18/20 and 19 cm tall. These perfect measurements have long established themselves in consumers’ minds as a distinctive mark of identification. Whenever we see the silhouette of a Coca-Cola bottle, we associate it with the famous brown soft drink from the southern United States and as the official thirst-quencher of Santa Claus himself. The creative direction for the designers was not just to make sure the packaging stood out from the rest, it also had to be easily recognizable even in the dark. «Mission accomplished!» Not only can the bottles be identified in the dark, when we see just one piece of a broken CocaCola bottle, we are immediately able to associate it with the brand and thus the original product. A design created and patented in 1916 has made a decisive contribution to the global success of one of the world’s greatest brands. Any subsequent attempt by product managers to deviate from the patented bottle design has inevitably led to lower sales figures. This is a clear sign that the shape of the bottle has undeniably become a core element of the brand. In other words, as companies stimulate brand evolution, they must take care not to change the elements they are known for. Creating a look that clearly distinguishes one brand from the rest is, however, just one example of how «intellectual property» can help make a brand globally unmistakable.Therefore, in the interaction between brand management and intellectual property, the focus should be not just on design, the company logo or the claim as what makes and typifies a brand. That would make things far too easy. Intellectual property can be used creatively in many playful ways to differentiate a brand from the competition, and all of these ways play a decisive role in global competition. A further example of intellectual property and branding and certainly an ideal case that displays the opportunities presented through differentiation, is a patented technology that unmistakably stands for a brand. In this case, a «well-rounded» product story underscored by technological exclusivity is the beginning of a wonderfully successful story. And it all began in 1995. The idea for the product is simple and thus easy to convey – and what is far more important – to understand. «The shoe that breathes!» How logical! The concept was born during a business trip to Reno, Nevada (USA). Mario Moretti Polegato, at that time still working for his family’s winery, was taking a walk and got so upset by his «overheated» feet that he abruptly decided to cut a few holes in the rubber soles of his shoes. The pumping effect that this created as he walked, ended up pressing the heat out of his shoes and cooling his feet. The idea behind a worldwide brand was born. The rest was a matter of continuous communication and focusing on this one unique selling point, or USP. No creative «outbreaks,» no todaywe-stand-for-pretty-pictures-and-tomorrow-fordiscount-prices, and then after that for a special membrane. And the bare facts and figures? Since 1995, Geox has been able to post annual growth rates far above 20% and ended its 2007 fiscal year with global sales of 770 million Euros. Not bad for a small vintner from Northern Italy. What makes such successful brands better than the others – or better yet, how do companies create successful brands? The good news first. Brand building has nothing to do with witchcraft or immense budgets – though it should be mentioned here that both, of course, would make things much easier. Successful brands simply make better use of intellectual property than their competition. Its not that they have better ideas, mind you, it´s because they convey their merits to the consumer more credibly by employing continual communication. When a consumer knows, or thinks he knows, what he can discover behind a particular brand name, the seller of that brand doesn’t have to work as hard to sell. A strong brand name with clear positioning and/or statement makes his daily work easier. And not to the customer’s disadvantage, either. The latter makes his purchase with the absolute certainty that he has received something outstanding for his money and thus made a good deal for himself. And the pleasant side effect of this is that brands that use this intellectual property wisely earn more money. A brand is the value consumers are willing to pay additionally for a specific product, i.e. the ADDED VALUE of that product. Now comes the question, of course, as to why we are willing at all to pay a higher price for a particularly branded product. Simply put, we use brands and their stories to define our own personality, attitudes and views. In other words, we use branded products to show others that we belong to a particular group or to show our agreement with the story that brand tells. In addition, branded products are also a matter of emotion. Brands are emotional triggers, and not just for the people we meet while using a brand’s products but also for ourselves, and that is the decisive factor. Brands stimulate our imagination and thus generate the added value that, in the final analysis, leads to a purchase. We buy branded products to make us feel good and put ourselves into our own, very personal «comfort zone.» If we’re wearing our favorite T-shirt from our favorite brand, we feel better, more appealing and happier, which in turn will also give us much more self-confidence in our dealings with others. So how can a brand and its story make more money? Researchers conducted a series of tests on two different groups in an attempt to explain this and came to an astounding result. Group “A” was shown bottled olive oil and asked what they would be willing to pay for it. The candidates agreed to pay a maximum of E4.40. Group “B” was shown the same bottle with this explanation: The olives come from ancient olive trees on the Liguria coast of Italy. The freshly harvested olives are collected in handmade wooden vats. The first drops of oil that run out of the vats from the natural weight of the olives are captured in this bottle thus creating an intense and well-rounded flavor. The candidates agreed to pay E15.40 per bottle! Finally, a brand is a promise. « We pave the way!»...« It’s bottled nature! »...« It’ll freshen you up someday!» – regardless of the slogan, and of the story you choose to go with it, one thing is of the utmost importance : Comment from a legal point of view Dr. Jochen M. Schaefer, WFSGI Legal Counsel and Chairman of the WFSGI IPR Committee The distinctive shape and visual appearance of a product can be protected both by a three-dimensional trademark and/or a design patent in numerous countries. In Germany e.g. the Supreme Court for Civil Law Matters, the Bundesgerichtshof ruled already in December 2005 that the shape/the silhouette of a car may enjoy protection under German trademark laws as three-dimensional mark (in the concrete case matter it had been the Porsche boxster design). Many legal experts criticized such decision and argued that designs should be protected as design patents only and not as three-dimensional trademarks. For me such discussion is very academic, if not hardly to understand, since from a brand protection point of view those who represent the legitimate interests of trademark owners should be happy if an additional layer of protection is created by the case law of high level courts to fight faked products and to be able to e.g. stop the importation of such copies already at the border of the European Union by the European customs authorities. And --- I ask myself, what the automotive industry does to protect its products, can’t this be copied by the sports brands. In this context no objections, your honor to copy best practices of other industries !! The story has to be true – just like the story with the olive oil from the coast of Liguria, by the way. If a company for example tempts consumers with the slogan «There’s no better way to fly,» but at the same time has failed for years to rank among the top ten global airlines, it is quite apparent that the company needs to rework its offering quickly to deliver what the slogan promises. Nothing is worse for a consumer than discovering that a commitment and promise which led him to his purchase is invalid. It could affect the relationship indefinitely. So in a day and age where consumers are confronted with up to 1,000 messages each day, the mission for brand managers is simple but challenging to accomplish. Find your USP, create your exclusive and unique intellectual property, ensure that it cannot be refuted and communicate it truthfully and consistently through every company channel. WFSGI Handbook 09 69 InTEllEcTual PROPERTy DIsPuTEs - HOW THE WFsGI can HElP InTEllEcTual PROPERTy DIsPuTEs - HOW THE WFsGI can HElP INTelleCTual PROPeRTY dISPuTeS - HOW THE WFsGI can HElP Jochen M. schaefer, WFSGI Legal Counsel and Chairman IPR Committee in cooperation with DUVINAGE Lawyers The Challenger brand was equally unwilling to give in, moreover its management was convinced that it had acquired priority trademark rights in several countries through its various registrations including its home country and would therefore be in a position to block the sales of the AGA branded products in such countries by bringing forward administrative and court action against its competitor. 1. Each industry federation is measured by its members, on what it does concretely for them, which tangible benefits are being derived from being a member apart from all networking opportunities members do enjoy by being a part of a (global) group which represents similar interests and pursues common goals. Both companies were highly determined to go to war and be prepared to spend substantial amounts of time and money to defend their respective rights, AGA with the objective to force Challenger to discontinue the use of its logo, whilst Challenger was absolutely convinced to win its case and would hence not need to surrender unless and until the courts of this world had ruled that it indeed conflicted with Logo A of its opponent. A feast for lawyers... 2. In particular in difficult economic times one of the best things which can happen to members is to save considerable amounts thanks to services provided and efforts made by the Federation to assist and help them. 3. A concrete and very recent example illustrates how the WFSGI was of valuable assistance and the positive effects it had for the individual members. 3.1 Thefollowinghappened: An international well-known sporting goods brand and long-term WFSGI member, Company AGA* has invested over numerous years substantial amounts to create a specific logo («the A Logo»), to raise brand awareness among consumers and the trade and is very proud of the high quality products it is manufacturing and selling through subsidiaries, distributors and sporting goods retailers in many countries of the world. In spite of all the worldwide activities of company AGA, it had not secured all trademark protection of its A Logo in all countries on the globe and not for all products it sold. Why was this case? As it frequently happens the business had grown significantly over the years, the range of products expanded, whilst the scope of trademark protection did not reflect this in all countries adequately as it should have been the case, further there were a few obstacles AGA was facing when it tried to register its logo alone without adding its company name in several developing countries. Nevertheless, AGA did not face major problems throughout the years and sold its products successfully internationally and also in those countries where its trademark protection was rather weak or sometimes even non-existent. 3.2 This all changed when the WFSGI came into play. How did this happen? The Challenger Company had become a sizable player and received international attention and recognition. Its management therefore felt that it would make sense and be the right time to apply for membership of the WFSGI to become visible and show their face in the international community of leading sporting goods brands, the WFSGI represents. As soon as it became known to Company AGA the Challenger had knocked at the door of the World Federation, AGA protested and informed the WFSGI that it would not support such membership application, but would object to it due to the pending vibrant trademark conflict. Approximately five years ago a new brand surfaced, which has its origin in Asia, i.e. Company Challenger*). As it is common within the sporting goods industry, it not only marked its products with its corporate name, but created also a logo, which it found attractive and distinctive from other brands in its subjective view, but did not consult an internationally experienced professional advisor to conduct a trademark search covering the key markets in order to find out whether there would be similar existing logos used by third parties, which might conflict with the logo of Company Challenger. The management of Challenger might even have noticed the logo of company AGA, but may have come to the subjective conclusion that in their view the two brands and logos can peacefully coexist, since they were somewhat similar, but not close enough to create a clash between the two brands. The ‘new kid on the block’ sold its line of sports apparel and shoes in its home country only in fairly small quantities within the first two years, but started right from the beginning to file trademark applications to protect its name and logo in its home country, in the neighboring countries and ultimately also in a number of countries overseas. Certainly it is no surprise that after some time had passed, company AGA found out that literally in its backyard something was going on, which it disliked and was not willing to tolerate. The owners of company AGA as well as its legal advisors were of the opinion that the two logos looked confusingly similar and decided the refore to take legal action to protect AGA’s own A Logo after all attempts to persuade Company Challenger to change its logo had failed. 71 * names and some facts have been changed in order to protect the confidentiality of some information obtained from the two parties and others WFsGI HanDbOOk 09 Intellectual Property Disputes - How the WFSGI can help 3.3 How would and how should the WFSGI now deal with this situation? • From a pure legal point of view, the World Federation has to ensure that all procedural and other requirements are met in the course of approving or disapproving permanent membership as mandated by its By-Laws and/or applicable laws, not less not more. Full Stop ? • It is neither up to the WFSGI, to the Board, nor to its Executive Committee or its Legal Counsel to assume the role of a judge and to decide who is right and who is wrong in this case. Full Stop ? • It would be foolish and even constitute a violation of applicable laws to make the attempt to impose a rule on members (including prospective members) that they are not accepted if an IP-related conflict with another member existed. Full Stop? • An option could have been to just wait until the two parties would have ultimately resolved their dispute, even if this may well have taken years and then to decide whether Company Challenger is eligible for permanent membership. Full Stop? 3.4 Regardless what the legal merits of the case are and who would be the looser or the winner ultimately, it is the philosophy and also the task and duty of the WFSGI to offer its assistance on a voluntary basis to both parties in an impartial manner with the intent to assistand to facilitate at least a swift and satisfying solution. The emphasis is on ‘to offer’, since it is always up to the parties concerned to accept such offer or to pursue different avenues. 3.4.1 One of the prime objectives highlighted in Article 2.6 of the WFSGI’s Bye-Laws is «to mediate and settle any dispute that may arise between members, if called upon to do so.» Further, Article 2.5 provides «to encourage and promote the spirit of legally permissible friendly cooperation among the sporting goods industry and trade. ..., mutual assistance, peace and understanding and fellowship among members...» 3.4.2 This does not imply that disputes may occur among competitors, i.e. WFSGI members, which cannot be resolved amicably and where the courts will have the last say. Nevertheless the By-Laws clearly mandate the WFSGI to make concrete Intellectual Property Disputes - How the WFSGI can help attempts to help to resolve pending disputes, not to mention the WFSGI Code of Conduct here, which each new member is required to sign as integral part of the membership application filings. 3.4.3 Apart from the above, each industry federation has in my opinion the noble task to fulfill regardless whether this is stipulated in its bylaws or not - to assist its members • by handling sensitive matters discreetly; • by treating members equal and being neutral; • by providing guidance, know how and expert knowledge (including best practice); • by acting in a manner where neither party will lose face. 3.4.4 Does all this imply that the parties concerned can expect to obtain such professional assistance and support free of charge, since covered by the membership fee? Not really. It will certainly depend on the concrete circumstances and the extent of support and assistance given; further, who will be involved on part of the WFSGI to be a facilitator, mediator, expert or even arbitrator - if requested by the parties. If profound legal expertise is needed which requires reviewing all details, facets and surrounding facts to be able to propose a solution, it is certainly a different story than if only some more or less abstract guidance is provided, which remains very much on the surface rather than digging into details. © Cekur – Fotolia.com 3.5 How did the concrete dispute between the AGA and the Challenger brand further evolve? 3.5.1 The WFSGI offered to assume the role of a mediator in order to propose or to at least to facilitate swift amicable out-of-court solutions for the two parties with the objective to save them considerable amounts of time and to spare them from investing substantial contra-productive energy in a case matter, where the outcome for both parties is uncertain and where at the very end neither party may win, but both may lose. 3.5.2 The Board of the WFSGI and the Executive Commit tee felt entitled under the concrete circumstances to temporarily suspend the decision whether Company Challenger should be accepted as permanent mem ber and it was recommended that : • On one hand Challenger should start to create a new logo, which in its visual appearance should not have any similarity with the A Logo of company AGA ; • On the other hand AGA should tolerate for a certain reasonable period of time the further use of Challenger’s existing logo, until for example existing sales and promotional materials would be used up, by in parallel thereto giving Challenger the opportunity to introduce its new logo to indus try and trade and to the consumers in Challenger’s home market and abroad. 3.5.3 The top management of both companies met and decided to discontinue with any litigation and suspend any other pending legal action with immediateeffect by relying upon each other’s good faith spirit and seriousness to honor the proposed settlement terms. It certainly will still take a while until the series of new international trademark applications filed by Company Challenger will mature into registration, but everything seems to be on good track now and both, Company Challenger and company AGA have expressed their gratitude about the positive role, the WFSGI played in this dispute. 3.6 Yet, in order to be not misunderstood: if a notorious IP-rights infringer knocked at the door of the WFSGI to become a member, such door would remain defi nitely closed. The WFSGI represents the legitimate and authentic sporting goods brands only and has continuously been an outspoken advocate to reach a higher standard of legal protection of the intellec tual property rights owned by its members ; the World Federation will continue to provide know how and ef ficient tools to fight the plague of counterfeits and knockoffs. WFSGI IPR COMMITTEE – PROJECTS WFSGI IPR COMMITTEE – PROJECTS WFSGI IPR Committee Projects The WFSGI IPR Committee is especially working on 5 projects (see presentation of the Committee page 20). Here are some more details on each project. 1.Security / Authenticity Label Ed Haddad, Co-Chair for Project 1 The IPR Committee has been investigating the feasibility and applicability of introducing a label for products for use by its member companies. There have been several focuses for the label identified and the feasibility of each purpose requires a through analytical review to insure that the identified objective incorporates the right technology and look, and that the label adds value to both the product and the member company. Initially, several uses for the label had been identified : 1.To signify quality 2.To confirm the product made in a compliant factory 3.To confirm authenticity 4.To confirm the company’s affiliation to WFSGI. An example of the type of labeling being considered is the security foil solutions which have been protecting banknotes, tax stamps, and documents for many years. This type of technology is developed by Kurz in Germany as well as other companies around the world. The last objective provides interesting possibilities for the Federation to expand and enhance its reputation around the world with limited risk by eliminating any claims which may be difficult to support. 2.wfsgi web monitoring program In its 2007 report The Economic Impact of Counterfeiting, the OECD noted the problems with determining the precise extent and cost of IP crime due to the lack of reliable data, particularly for trademarked and copyrighted goods, because of the clandestine conditions under which counterfeits are produced and distributed. However in recent years, industry has commissioned research studies to estimate the cost of piracy and these have confirmed that the problem is large and continuing. While OMs provide exciting opportunities for legitimate sellers to create profitable business, the ability of competing sellers to offer IP infringing products creates an unfair playing field. Further different standards are often applied to businesses operating on such sites as opposed to personal shoppers. Industry groups report instances where goods are imported as personal purchases and on-sold in large quantities as items from the sellers’ “own collection”. In this way, sellers purchase goods via the Internet as personal shoppers and bring them into their country without paying GST, import fees or customs duty at the point of entry and yet on-sell items in large quantities as a business. These sellers operate in direct competition with legitimate online and bricks and mortar businesses that are taxed for the same activity. Ian Fullagar, Co-Chair for Project 2 The aim of this Committee Project is to offer a web monitoring program for WFSGI Members, which screens the world wide web and notifies the brand and rights owners on suspicious activities, dubious online transactions and the like to enable them to intervene efficiently and swiftly. After careful analysis, it was determined that each objective offered both positives and negatives in both their application and stated purpose: 1.Quality Can be subjective to each individual 2.Compliance can change exposing the federation to criticism 3.Labels can be counterfeited, compromising the certification 4.Requires intense Marketing to create awareness of the Federation’s mission and objectives. The key issue which the project seeks to address is pirate or counterfeit goods being sold regularly on a daily basis through online marketplaces (OM). Piracy or counterfeiting is the unauthorized duplication, distribution or use of a product protected by one or more IP rights. It includes, for example, the sale of copyright and/or trademark infringing goods such as pirate CDs, film, software, games, sporting goods or musical instruments. This is not only of concern for intellectual property (IP) owners, but it is also detrimental to OMs who need to ensure that they create safe and attractive marketplaces where consumers have confidence in the goods that they are buying. Counterfeit merchandising and brand abuse represent a massive global problem for the sports good industry as well as film, music and television industries. Broadband internet usage is expected to increase 50 fold between 2008 and 2015. Heavy losses are being incurred due to counterfeiting ; high volumes of counterfeit goods are on the market - and up to 50% of industry product sales are already made online. International brands with broad relationships, the list of authorised affiliates and licensees can run to hundreds of names. Brand protection allows organisations to regulate and reclaim control of their brand identity and digital assets online. It involves knowing everything, positive and negative about a brand’s visibility, risk and reputation over the internet. It’s also about the removal of that risk, damage reversal and reclaiming of intellectual property. Brand protection is about letting the counterfeiters, brand abusers and inefficient affiliates or licensees know that they are no longer invisible. It also ensures the completion of re-branding exercises. At its most extreme, it is about providing the evidence used to stop illegal distribution chains, and pursue damages claims. Many industry groups systematically monitor OMs for products that can be identified as pirate or devices that allow the circumvention of copyright protection measures using industry specific search terms and phrases. If the OM provides for notice mechanisms then appropriate notices are sent to the site for the removal of the auction or listing. This exercise requires the investment of an appreciable amount of time and resources and involves manually searching across OMs and generating takedown notices individually. WFSGI has been working closely with the specialised IT service provider NetResult to develop a program to monitor and report online infringements on behalf of WFSGI Members. NetResult tabled a detailed proposal for consideration at the WFGSI Beijing meetings in May 2008. Feedback has been sought from WFSGI members on the proposal. Since that time WFSGI and NetResult are continuing to meet to bed down the proposal and ensure the program commences as soon as practicably possible. 3.DEVELOPING WORLD-WIDE BEST PRACTICES REGARDING DOCUMENT RETENTION Mark Granger, Co-Chair for Project 3 We want to give WFSGI members a best practice document retention and risk management program with the objective of improving risk management methods and policies and legal compliance. A document retention program that highlights the best practices necessary in order to meet the current international requirements is a significant added-benefit to WFSGI membership. Purpose • In the event of a crisis such as major litigation, questions regarding the duties of officers and directors, criminal or regulatory investigation, searching for records is often a significant challenge, particularly for SMEs. Under the stress of the situation the last thing a company wants to struggle with is trying to figure out where certain documents, such as notes, memos, e-mails or company certificates such as IP rights registrations, are archived. The loss of critical documents can carry significance for a company. Sanctions including large fines, loss of the litigation and even criminal charges are possible. Removal of officers and board WFSGI Handbook 09 75 WFSGI IPR COMMITTEE – PROJECTS members for failure to properly control the companies documents is a reality. We plan to put together a plan that will enable WFSGI members to avoid these problems. • It is essential that companies know how long certain documents and information types have to be stored, and what the disclosure requirements and restrictions are in these kinds of scenarios. This will more than likely vary from jurisdiction to jurisdiction, and it is important to know the various policies. • The objective of Project Three is to develop a “best practice” example, and possibly propose solutions with a specific focus on the needs of the medium to small-sized manufacturers (“SMEs”) who do not have the experience and resources of the leading brands. In order to do this, we are looking to fellow members to join the committee in helping prepare this model. Challenges • Because the requirements vary from jurisdiction to jurisdiction, it is important to know what the various requirements are. For example, in the United States, under the Federal Rules of Civil Procedure there are specific requirements for document retention. It is probable that other jurisdictions such as Australasia and Europe have similar requirements. We need members who know about these areas to come forward and help us compile this information. Having current international requirements for record retention is a major benefit to all WFSGI members. Goals • Project Three’s overall goal is to provide WFSGI members with an International Best Practices model for record retention that will illustrate proactive steps they should take now to avoid much greater costs in the future. We want to look out for our member companies and to provide them with the added benefit of valuable resources, such as clear and relevant advice on how to develop a cost effective record retention plan that will assure the protection of privilege, and protect the security of members’ IP and commercial practices. • To accomplish these goals we need you to get involved. We are calling on your expertise to help develop the Record Retention Best Practice model. WFSGI IPR COMMITTEE – PROJECTS • Concrete best practice examples need to be collected and presented both from WFSGI member companies, and also from other industry branches. • Different potential scenarios need to be presented so that member companies are made aware of their potential exposure. Such scenarios include product liability issues, including regulatory investigations and recalls; tax issues; and liability of Directors and Officers. Regarding the last item, malfeasance and nonfeasance of Directors and Officers is a big issue in the EU. Mistakes of the company can lead to the Directors and Officers being held personally liable. Poor record keeping exposes companies to these and other dangers. It is essential that member companies realize how important a proper record retention policy is to their livelihood and success. • Our Best Practices model will not only include the requirement of various jurisdictions, but helpful suggestions on different types of data storage that will result in a more cost effective record retention policy. For example, there are companies who will convert files from a company’s outdated computer system so that they can be read by the current system. Such a service may seem unnecessary, but if the company is being investigated by a regulatory agency who requires information from several years ago, simply saying that data is not accessible may not cut it. The Process We will start by gathering information on document retention laws and practices internationally. We intend this to be a wide ranging search including information from other industry groups. A copy of the questionnaire is attached and we welcome your comments. Once this information is gathered we will sift through it to find common themes and requirements. A discussion document will then be prepared and circulated to the Project Three Committee for comments and discussion. It will then be put into a draft for circulation and comment by the WFSGI membership. Membership comments will be reviewed by the Project Three Committee and a final draft Document Retention Policy prepared. • Focus on 3 perspectives: Administrative and criminal actions, civil actions and customs. Research methodology 4.Progress in trademark protection in China • • • • Frank Dassler, Co-Chair for Project 4 Fields of research and perspectives Intellectual Property is an important source for innovation, creativity and progress protecting it contributes to economic growth by stimulating innovation and technical development. The protection of Intellectual Property Rights (IPR) in general and specifically in China is one of the main focus areas of the WFSGI and the sporting goods industry. • Administrative and Criminal Actions. • Civil Actions and Customs. The WFSGI IPR Sub Committee on “Educational Activities and Best Practices in the Area of IP Protection and Enforcement in China” can play an essential role in achieving better protection of IPR. Sharing experiences and best practices within the industry will support future strategies and initiatives. The first step is to gather valid information. Problems and characteristics of the issue are to be reflected on an industry-wide basis by means of a survey. In that context, the WFSGI recently launched a survey on Intellectual Property in China. A questionnaire was sent to all WFSGI members by e-mail in order to address the problems the WFSGI members may be encountering regarding the topic “Trademark Protection”. The respondents represent fair share of all regions and brands within the sporting goods industry. The results of the questionnaire will provide input for the next steps. They have been compiled (see below) and action will be taken. Research objectives • • • Measuring industry‘s experiences with IP protection and enforcement in China. Evaluation of current actions and initiatives and sharing Best Practice Examples within industry. Identifying possible fields of action for politics and / or WFSGI. Exploratory study and desk research on IP issues in China. Descriptive Research design with questionnaire. Sent out and return questionnaire to WFSGI. Evaluation, research report and presentation. Summary : Current Situation • • • • • • • Brands operate through wholly owned subsidiaries and joint ventures as well as Repr. Offices and agents in equal shares. Major problems with Counterfeiting and Infringements of Design, less in patent infringements. Legal matters are handled with international law firms/consultants and personally from the office abroad. Types of measures undertaken with Chinese authorities to increase protection focus on administrative, judicial and -to a lesser degree –Customs procedures. Identifying the authorities is rather easy, whereas the length and the effectiveness of the measures are considered rather poor. The costs of proceedings are considered both from “very high” to “acceptable”. Online auctions are monitored by most brands. Summary : Authorities • • • • • • • Cooperation with AIC is considered mainly from “not effective enough” to “yes and no”. Improvements could be obtained if penalties increased, transparency after seizures was provided and if an independent AIC had more powers versus local authorities. Raiding at factories in China would help improve the situation. Effectiveness on raiding factories vs. retailers undecided. Most of the brands do not pursue criminal actions. Assessment of criminal procedures is diverse, some are available, but not implemented. Clear guidelines for cases passing from AIC to PSB would improve the situation. Summary: Civil Actions • • • Most brands have had no law suits in the past. The outcome of civil lawsuits is being assessed rather positive. The notarized purchase procedure took between 2 weeks and 1 month. WFSGI Handbook 09 77 WFSGI IPR COMMITTEE – PROJECTS • • WFSGI IPR COMMITTEE – PROJECTS Intellectual Property is an important source for innovation, creativity and progress protecting it contributes to economic growth by stimulating innovation and technical development. Main difficulties with lawsuits are the requirements for notarization while being abroad and the duration of the trial. The main weakness of the system is the weak procedural transparency and fairness. Summary: Customs • Most brands have registered their TM with Customs and have problems with counterfeits. • Their designated representative is a local law firm /investigator. • The number of received customs notices ranges mostly up to 50 p.a. • Most of the brands could not identify the ports, an essential intelligence tool for more effective tracking. • Main problem in dealing with Customs is the short 3-day response window, high costs and the lack of transparency. • Identification of samples via photo is not a good solution for most of the brands who do not use security labels. • Most brands have a list of vendors manufacturers to refer to. • Improvements for customs enforcement program could be reached trough: -better cooperation of Customs, AIC and PSB -high penalties for the exporters not declaring branded goods -the counterfeiter bearing the costs. Conclusion • IP protection is of major importance to the global sporting goods industry, especially in China. • • • Research study representing fair share of all regions and brands focuses on administrative and criminal actions, civil actions and customs. Although achievements were realized by some brands in the past, various open topics within the industry have been identified. Legal actions are characterized by high costs, lack of procedural transparency and a continuous capacity building process. • • • Better cooperation between AIC and PSB would increase efficiency. Intellectual Property Rights in China require further action on the part of the industry, politics and WFSGI. A journey of a thousand miles begins with a single step –WFSGI has already taken this first step! 5.Cooperation with the world Customs Organization in the area of customs authorities’ training fore. While a global marketplace presents many benefits to both industry and consumers alike, it also raises new and more complex challenges to protecting intellectual property rights and combating counterfeiting. Just as legitimate businesses are benefiting from more open borders and improved trade relations, so are counterfeiters taking advantage of the same conditions to manufacture and sell counterfeit products. Differences in laws and enforcement of intellectual property rights and anti-counterfeiting efforts between countries, in addition to an insufficient level of public awareness of the dangers of buying counterfeits, only exacerbate the counterfeiting problem. The European Commission’s 2007 Report on Community Customs Activities in Counterfeiting and Piracy stated that there has been an increase of 17% in the number of cases of counterfeit goods seize by EU Customs. Cigarettes and clothing, including sportswear, were cited as the main sectors for large seizures. The fight against counterfeiting has been an ongoing one for years, but many governments, rights holders and industry associations are finding it more important than ever to step up this effort globally, and the International Trademark Association (INTA) has committed itself to being a leader in the fight against the fake goods that harm businesses and brands and injure consumers. INTA is a global association of member companies and firms that support and advance trademarks and intellectual property as elements of fair and effective global commerce. Its membership spans every industry and is proud to serve sporting goods brands, including Adidas, Asics, Callaway, Nike and Puma. Rory Mac Millan, Co-Chair for Project 5 Anti-counterfeiting gets a sporting chance Candice Li, External Relations Manager of AntiCounterfeiting for the International Trademark Association, headquartered in New York, New York. © Millymanz – Fotolia.com The increasingly globalized nature of today’s economy as a result of rapid technological advances, increased use of the Internet and enhanced trade between countries allows consumers to have access to more products and services than ever be- well as alignment of legal frameworks to ensure that adequate criminal, civil and border protection measures are in place. This framework for a plurilateral treaty includes setting high standards for measures to combat counterfeiting, improving coordination of national and international enforcement efforts, providing powers to customs officials to disrupt the flow of counterfeits across borders, addressing the growing problem of the sale of counterfeits on the Internet, and providing for criminal enforcement of counterfeiting and piracy. Industry has been closely monitoring the negotiations, although ACTA negotiators have not revealed any drafts of the Agreement. INTA has collaborated with more than twenty national, regional and international industry associations, many of which are based in the negotiating countries, to provide collective business perspectives on topics under discussion by ACTA negotiators. The group has urged negotiators to deliver an ACTA that will significantly improve the international enforcement by establishing stronger standards for government performance and more effective national regimes for protecting intellectual property rights. While a global marketplace presents many benefits to both industry and consumers alike, it also raises new and more complex challenges to protecting intellectual property rights and combating counterfeiting. In late 2007, in recognition of increasing challenges to combating counterfeiting and piracy, the United States, European Union, Japan, Switzerland, Canada, Mexico, Australia, and South Korea, announced that they would commence negotiations on the Anti-Counterfeiting Trade Agreement (ACTA) – a plurilateral agreement intended to establish a stronger set of common standards for intellectual property enforcement among the signatories of the Agreement. Industry expectations for ACTA are high. The harms caused by counterfeiting are no longer contained in one country, economy, industry sector, or demographic. From clothing and sporting goods to medicines and automotive parts, counterfeiters are using more creative means and taking advantage of jurisdictional gaps in IP enforcement between countries to manufacture and sell counterfeits to growing markets around the world. ACTA, if done right, would go a long way to overcoming the shortcomings in enforcing intellectual property rights that continue to hinder the efforts of trademark owners to protect their marks. It would create a basis for a global framework needed to combat this global problem. ACTA is intended to provide for stronger international cooperation and enforcement practices as To learn more about trademarks and protecting your brands, please visit us at www.inta.org. WFSGI Handbook 09 79 Important aspects of brand protection of sports goods in China Important aspects of brand protection of sports goods in China Important aspects of brand protection of sports goods in China Dr. Thomas Pattloch, LL.M.Eur., IP Officer EU Delegation, Beijing Brand protection is no easy «sport», least of all in China. During the Olympic Games in China, famous athletes like sprinter Usain Bolt and basket ball star Yao Min were widely engaged and present to enhance the brand image of their sponsors. New forms of advertising a brand also invite counterfeiters to jump on the band wagon of success. Protecting successfully the investments into the brand building exercise in China thus brings up the need to combine multiple aspects in one strategy. A couple of these aspects are discussed below. a Chinese trademark alongside with the original one in Latin. Choosing an appropriate trademark which is easily memorized, uncomplicated to write and describes the product and company well is critical for a success of a brand. The first step therefore remains the same for each new product and each new brand to be introduced in China: Make sure the mark fits your business image and customers’ expectations. Nick names One size does not fit all In the early days of global branding most experts would emphasize the need to maintain a uniform brand throughout the markets on the globe. Today the trend goes more into diversification suited to local needs, sometimes under a unified umbrella trademark. In China, the use of Chinese characters as written language basically requires to choose Foreign language trademarks, though increasingly recognized, are still automatically transferred into a Chinese equivalent by Chinese consumers. If this is not done by the right holder himself, the customers may do so and create nick names. Counterfeiters are quick to notice such trends and register nick names trademarks and company names themselves, profiting from the good will created by others. It is therefore imperative to control such phenomenon and register any nick name as soon as they become widely used in the Chinese market, rather than allowing third parties to create parallel businesses. Timing for applications © AlexAvich – Fotolia.com Registration of new trademarks requires a long time in China at the moment: The average time from application to registration has grown to more than three years. Where oppositions are raised this process may take much longer, up to five and some times even eight years. Equally, removing an infringing trademark registered by a third party in bad faith (“trademark squatting”) requires again many years and may even prove unsuccessful. This demonstrates that brand owners should plan their registration strategy well in advance and apply early. Not fighting fraudulent registrations by former agents or trademark squatters can lead to serious problems later on, as a five year time limit since knowledge of the registration for cancellation applies, unless bad faith can be proven by the right owner – a challenge more difficult in China than in other jurisdictions. Registering widely, considering defensive marks For trademark registration China maintains its own system of sub-classes in each main class of products and services. Practice shows that applicants for similar trademarks often manage to register their trademark even in the same main class, based on filing in different sub-classes. Applicants should therefore pay particular close attention to covering as many sub-classes as possible. Strategically and as regards costs it is better to risk a cancellation action for consecutive non-use rather than having to fight an application or registration made in the same class. In general, the costs for registration of trademarks in China are not prohibitively high, and certainly much lower than the costs of subsequent opposition or cancellation procedures. Thus, registering similar trademarks in all relevant classes and sub-classes as defensive marks usually pays off, especially for those marks likely to become targets of counterfeiters. My brand – a well-known mark? Some companies may be tempted to rely on their reputation for protection, rather than going through a lengthy process of registration. Obtaining the status of a well-known trademark in China basically can be achieved either through an application to the State Administration of Industry and Commerce and its local offices, or through litigation in courts. The reality shows that foreign trademarks, even in their translated form, take a much longer time – at least several years - for recognition in the administrative process. Substantial evidence of length and degree of its use in the Chinese market, advertising efforts, money invested and geographical distribution of the specific goods is necessary to prove the nation-wide recognition of a brand in China. As a result, most foreign brands will struggle obtaining the status. Company and branch names Besides using identical or similar identifiers on identical or similar goods, counterfeiters nowadays tend to use company names as alternative route to free-ride on the back of a brand. Often, a Hong Kong company registered as Hong Kong «Brand» International Ltd will serve as cover for local shops to sell knock-offs or similar branded goods. Fighting these pirates can turn to a nerve-wrecking exercise, with many local authorities in China reluctant to act unless a recognized wellknown trademark is involved. Conflicts in this area may require turning to courts, which in the recent past increasingly tend to regard such behaviour as unfair competition where confusion of consumers and intention on behalf of the owner of the company name can be proven. Internet Domain grabbing and free-riding on the reputation of brands or their stars employed is wide-spread in China, requiring a much targeted strategy to control costs. More established B2B platforms like Alibaba often cooperate and take websites down once indicated by right holders to infringe. A much more difficult problem to control is sales platforms like Taobao.com which allow counterfeiters to distribute freely branded goods over the Internet. Communicating clearly to the own customer base the proper sales channels is one way to start the Herculean task of dealing with this new phenomenon. Private agreements and MoUs for installation of filtering software may be another alternative for bigger brands. Building up its own distribution network and intelligence gathering network through the own sales staff throughout China is often the only starting point to improve the scope of legal business and avoid serious confusion among customers. Right holders may finally be required to battle the frequent statements on websites that the infringer is acting as “authorized distribution agent”. Registered trademarks provide a more secure basis for action than a pure reliance on unfair competition. Enforcement Right holders predominantly rely on the Administration of Industry and Commerce and administrative authorities for enforcement. Trademark holders may consider choosing the local technical supervision bureaux where products show quality or sub-standard issues, which allows quick investigations and often results in more substantial fines. Investigation and raid results by law firms and local connections to find sources of counterfeits need to be carefully assessed due to business models sometimes sold to brand owners (“staged raids”). If damages are sought, court proceedings must be initiated. A very important first step is trying to identify and freeze bank accounts of WFSGI Handbook 09 81 Important aspects of brand protection of sports goods in China infringers. Where the manufacturer is easily located, a warning letter may be a useful alternative to stop infringement, as there is still a considerable number of unwary Chinese producers who are willing to refrain from further infringement after some negotiations. Damage awards in China are rapidly increasing. This indicates that it is also important to avoid infringing trademarks registered by others in China. It is further important to use the trademark as registered in order to avoid counter claims for lack of protection, or even illegal use of the “registered” – sign on goods. It is always advisable to keep a very thorough written record of all business documents, catalogues and invoices in Chinese, in order to be able to provide evidence for possible later on proceedings. Witness testimonies and internet printouts usually are not strong evidence unless notarized. Trade fairs Bigger trade fairs increasingly care about IP protection and provide special administrative complaint centres at the venues. It is advisable to monitor the most important trade fairs and come prepared for infringement cases with original proof of ownership via the original Trademark Registration Certificate and valid entrustment that is notarized and legalized Power of Attorney for a Chinese trademark attorney, together with proper documents showing the legal status of the trademark holder and its entrusted agent. Local trade fairs – often held without proper authorization, are more prone to offer counterfeiters with a platform for offering fake goods. Customs For fighting counterfeiting, brand owners need to identify those localities which act as production centres for counterfeited goods and ensure that typical exit ports, local authorities and their staff is well informed on these issues. Interaction with correct department at precise ports and providing accurate information in writing and with explanations how to identify fake goods is essential. As the checking rate by customs at export of goods is very low (a service which is not mandatory according to TRIPS), especially in main harbours like Shanghai with a checking rate between 0.2-0.3%, providing information to Customs is needed for success; warehouse costs and difficulties to see counterfeited goods destroyed are still valid concerns. However, customs take a more and more pro-active agency in China with dedication to stop counterfeits at the border, especially in case of trademark infringements. C M Choosing a realistic approach – growing legal business Focusing on areas in China with sufficient purchasing power for real branded products can help to further increase acceptance of legitimate goods by sports brands. Although fake markets will continue to offer branded goods, specialized closed distribution systems can help to signal to consumers where legal goods should only be obtained. Care must be taken as regards distribution channels in the Internet. As is the case in all places around the world, the best protection starts with a precise and good knowledge about the local market and the consumers in China. Y CM MY CY CMY K © treenabeena – Fotolia.com All featured Trade Marks are owned by or licenced to Pentland Brands plc Serving the Business of Sport Serving the Business of Sport Serving the Business of Sport Francis Gurry, Director General of the World Intellectual Property Organization (WIPO) In recent years, sport has mushroomed into a multi-billion dollar global industry, generating huge revenues from sponsorship, merchandizing deals and the sale of media rights, as well as enormous employment opportunities. Intellectual property is central to many of the commercial opportunities presented by sport. It protects the integrity of the image and the reputation of sportsmen and women, clubs and teams through trademarks, designs and unfair competition law. It provides a legal and commercial framework for distribution and merchandizing. And it enables, through copyright, sportsmen and women and their managing teams and clubs to control the transmission and broadcasting of sporting performances and games. WIPO is at the service of the intellectual property user community. The Organization offers a range of cost-effective services that help obtain international protection for patents, trademarks and designs. The WIPO Arbitration and Mediation Center offers a range of dispute resolution services that provide an attractive alternative to lengthy and costly litigation. In particular, the Center is recognized as the leading dispute resolution service provider for disputes arising from the abusive registration and use of Internet domain names. Under the Uniform Domains Names Dispute Resolution Policy (UDRP) the Center has handled over 29,000 cases since it was launched at the end of 1999. These include cases involving a large number of sporting personalities, companies and organizations, such as, lancearmstrongfoundation. com, waynerooney.com, thelondonmarathon.com, worldcup2010.org, wwwadidas.com and nike-shoes.com. WIPO is committed to further improving both the range and quality of the services it offers, and to tackling head-on the challenges arising from the growing demand for intellectual property services. WIPO is both a service provider to the global economy, and a development agency which, through its capacity-building services, seeks to promote greater participation on the part of developing countries in the benefits of innovation and the knowledge economy. These initiatives benefit not only those countries themselves, but all foreign companies operating within them, by ensuring better access to intellectual property services and a greater recognition of the importance of respecting intellectual property rights. As the international agency responsible for intellectual property, WIPO is well placed to facilitate discussions on the future evolution of the international intellectual property system. Our most basic challenge is to ensure that the intellectual property system continues to stimulate innovation and creativity and to contribute to market order. This will require the Organization and its member states to explore new ways to address the challenges arising from the increasing economic value of innovation – for example, the growing backlog of unexamined patent applications worldwide. Similarly, in the field of copyright, the international community will need to find solutions to threats to the copyright system arising from the convergence of expression in digital technology and the distributional power of the Internet. Perhaps of greatest direct relevance to the sporting goods industry sector, however, is the Organization’s role in promoting greater respect for intellectual property rights. The sports industry is, like many other manufacturing sectors, painfully aware of risks and threats posed by the expanding trade in counterfeit and pirated goods which, according to one estimate, is valued in excess of US$200 billion per annum. While plurilateral accords to deal with this scourge are under active consideration, the global nature of these illegal activities and the threats they pose to the safety and health of consumers point to the need for a global response. As WIPO opens a new chapter, I am confident that the Organization is well placed to respond to the evolving needs of users of intellectual property, be they producers or consumers. WIPO’s Services WIPO provides a range of services for the owners and users of intellectual property (IP). These include international filing and registration services, which enable applicants to seek protection for their patents, trademarks or designs in multiple countries by filing a single application. WIPO also maintains IP classification systems, which facilitate searches in IP databases and registries. WIPO’s Arbitration and Mediation Center offers alternative dispute resolution services for private parties involved in international IP disputes. This includes Internet domain name dispute resolution for tackling cybersquatting. Patent Filing Services The Patent Cooperation Treaty (PCT) is an efficient and cost-effective option for any company seeking patent protection in multiple countries. The PCT, an international treaty administered by WIPO, simplifies the process of multi-national patent filings by reducing the requirement to file multiple patent applications for multi-national patent rights. Under the system it is possible to seek patent protection for an invention simultaneously in a large number of countries by filing a single “international application” with a single patent office. By using the system, applicants can postpone the major costs associated with internationalizing a patent application. The system further offers applicants the means to make more informed business decisions through its international search and preliminary examination options. Applicants may also benefit from certain cost advantages by using the PCT’s secure and user-friendly on-line application facilities. Further information about the full range of services under the PCT is available at: http://www.wipo.int/pct/en/. Trademark Registration Services The Madrid System for the International Registration of Trademarks (“The Madrid System”) offers a user-friendly and cost-effective service that enables companies to acquire and maintain trademark protection in export markets. The Madrid System offers a trademark owner the possibility of having a mark protected in a large number of countries by filing one application, in one language (English, French or Spanish), with one set of fees, in one currency (Swiss Francs). Applicants wishing to use the Madrid System must apply for trademark protection in a relevant national or regional trademark office before seeking international protection. An international registration under the Madrid System produces the same effects as an application for registration of the mark in each of the contracting parties designated by the applicant. If protection is not refused by the trademark office of a designated contracting party, the status of the mark is the same as if it had been registered by that office. Thereafter, the international registration can be maintained and renewed through a single procedure. Thus, the system provides a cost-effective and efficient way for trademark holders to secure and maintain protection for their marks in multiple countries. Further information is available at : http://www.wipo.int/madrid/en/. Industrial Design Registration Services The Hague System for the International Registration of Industrial Designs (Hague System) offers the owner of an industrial design the possibility of protecting a design in several countries by simply filing one application with WIPO, in one language, with one set of fees in one currency (Swiss Francs). An international registration under the Hague System produces the same effects as an application for registration of the industrial design mark in each of the contracting parties designated by the applicant, unless protection is refused by the competent office of that country. The Hague System also greatly simplifies the management of the industrial design right, since it is possible to record subsequent changes or to renew the registration through a simple, single procedural step with WIPO. WIPO’s Alternative Dispute Resolution (ADR) Services The WIPO Arbitration and Mediation Center offers ADR options for the resolution of international commercial disputes between private parties. Developed by leading experts in cross-border dispute settlement, the arbitration, mediation and expert determination procedures offered by the Center are widely recognized as particularly appropriate for technology, entertainment and other disputes involving intellectual property. An increasing number of cases are being filed with the Center under the WIPO Arbitration, Expedited Arbitration, Mediation and Expert Determination Rules. The subject matter of these proceedings includes both contractual disputes (e.g. patent and software licenses, trademark coexistence agreements, distribution agreements for pharmaceutical products and research and development agreements) and non-contractual disputes (e.g. patent infringement). The Center assists parties in the selection of mediators, arbitrators and experts from the Center’s database of over 1000 neutrals with experience in dispute resolution and specialized knowledge in intellectual property disputes. Where necessary in individual cases, the Center will use its worldwide contacts to identify additional candidates with the required background. The Center offers a case administration facility WIPO Electronic Case Facility (WIPO ECAF) which allows for secure filing, storing and retrieval of case-related submissions in a web-based electronic docket, by parties, neutral(s) and the Center from anywhere in the world. It also facilitates case management by providing, in addition to the online docket, a case overview, time tracking and finance information. The Center is also recognized as the leading dispute resolution service provider for disputes arising from the abusive registration and use of Internet domain names. In addition, the Center is frequently consulted for other specialized dispute resolution services. Further information is available at: http://www.wipo.int/amc/en/. 85 WFSGI Handbook 09 2009 China International Sporting Goods Show 2009 China International Sporting Goods Show International Trade Show for Brands in Sports, Fashion and Lifestyle in Asia City and country : Beijing, China Address : China International Exhibition Center (new) 88 Yuxiang Road, Shunyi District, Beijing, China Telephone : +86-10-87183076/87183963 Telefax : +86-10-67102689/67120299 E-mail : [email protected] / [email protected] Date of fair : April 23-26, 2009 Organized by : Sports Equipment Administrative Center of China General Administration of Sport and China Sporting Goods Federation Management : Ms. Yong Zhongjun (Laura), Project manager Opening hours : 23-25 April 2009 :09:30am-17:00pm (Thu.-Sat.) 26 April 2009 : 09:00-12:00 (Sun.) Prices for exhibitors : booth package ( 24 sqm space, booth system, carpet, lightening) EUR 1890 Cost for Exhibitors : Standard booth : (3m x 3m) USD2,000 / each Indoor raw space (minimum 36m2) USD200 / m2 Tickets : Visitor˚: USD 2-3 Visitor Pre-registered before March 15th, 2009 Exhibitors accepted : Sportswear, Fitness Equipment & Accessories ,Outdoor Sports & Leisure, Tennis & Badminton, Sports Apparatus & Rehabilitation Equipment, Ball Game Equipment, Stadium & Gym Facilities, Sports Media & Others Listing of service : Customs, forwarding & shipping agent, storage contractors, post office, booth constructors, interpreters, cleaning, electricity, telephone, hotel accommodation, etc. Local transportation : Airport shuttle (free of charge with ispocard), railway station (12 minutes by subway), subway station (5 minutes by feet), trams, buses free of charge with visitor / exhibitor pass, taxi Parking : Available Total space exhibition : 100’000 m2 Number of exhibitors : approx. 1’000 Number of visitors : approx. 50’000 General information : Ms. Zhang Mei (Cilia) China Sporting Goods Federation Tel : +86-10-87183076/87183963 Fax : +86-10-67102689/67120299 E-mail : [email protected] / [email protected] Website :www.sportshow.com.cn Trade Committee - Activity Report 2008 Trade Committee Activity Report 2008 Brad Figel, Trade Committee Chairman 1. Following the launch of the sub-committee at ISPO in January, the WGSGI recruited members to join the committee based on the proposedmission statement. As a result of this recruitment initiative, the subcommittee has strong membership representing every region of the world. 2. In September, the Chairman developed and sent to the Committee members a proposed work plan for the sub-committee that included an extensive overview of new U.S. product safety legislation and discussion of upcoming trade cases facing the sporting goods industry. The work plan suggested a list of projects the committee should undertake, and the Chair solicited feedback from committee members which were then added to the proposed work plan. 3. In October, the sub-committee chair wrote an article for the WFSGI ISPO handbook on the importance of the DOHA WTO Round for the sporting goods industry. 4. In November, the Committee met via international conference call and agreed upon the work plan. Specifi cally, the members of the Committee agreed to : • Organize and promote a seminar at ISPO (open for all ISPO participants) on new product safety requirements and testing that have been developed in Europe and the United States. Experts would provide an overview of the new law and requirements, and how they impact the sporting goods industry. • Organize and sponsor a series of regional summits (North Asia, South Asia and Latin America) for WFSGI members on current and new trade defense cases facing the sporting goods industry. The summits will cover basic information on what these trade cases are, the threats to our industry and identify ways our industry can prepare for these cases. Organize and sponsor a series of regional summits (North Asia, South Asia and Latin America) for WFSGI members on current and new trade defense cases facing the sporting goods industry. 87 WFSGI Handbook 09 What a successful Doha Round means for the sporting goods industry What a successful Doha Round means for the sporting goods industry What a successful Doha Round means for the sporting goods industry Brad Figel, WFSGI Trade Committee Chair and Director, Governmental Affairs and International Trade Counsel, Nike ; with the collaboration of Tom Cove, SGMA President and CEO and Rory McMillan, Director, Government Affairs – EMEA, Nike. Over the last couple of years, there has been a great deal of public discussion and controversy about the World Trade Organization’s (WTO) Doha Round with its on again/off again negotiations between the developed and the developing world and its highly publicized failure to reach conclusion this summer in last-minute talks. The negotiation’s implications for trade in agriculture seems to have garnered most of the attention, but how the WTO, and this round of negotiations in particular impacts the sporting goods industry is little understood or appreciated. But for our industry a successful conclusion to this round and a strengthened WTO is vitally important to the growth and future prosperity of our industry and why we as an industry need to do everything we can to ensure this round of negotiations is successful and that the objectives our industry seeks in these negotiations are met fully. If one looks at the world’s sporting goods industry and segregates our industry down to its absolutely simplest form -- of making footwear, apparel and equipment for the world’s athletes and consumers, it is pretty clear that our industry, as a whole, is one of the most highly regulated sectors in business today. How? Well if you take into consideration that most of sporting goods product (particularly footwear and apparel) face some of the highest import duties of any industrial product; that these very same products face a wrath of current and new trade defense cases from around the world; and then couple this with the fact that our products face some of the largest challenges from counterfeiting – it becomes much clearer to see how a successful Doha Round and a strong WTO will help us address these challenges. Let’s start with tariffs. Sporting goods products have what is commonly referred to as peak tariffs – tariffs that are amongst the highest of all industrial products. Globally, according to the WTO, tariffs on manufactured product average just above 3%. But look at where our industry is on tariffs: for footwear, average tariffs run 20%, apparel 25% and sporting goods equipment 10%. © Christophe Rio – Fotolia.com The normal and conventional method of reducing or eliminating regular import tariffs, has always been through multilateral trade negotiations like the Doha round or in regional negotiations such as NAFTA, MERCOSUR, or the European Union’s Generalized System of Preferences (GSP) program for developing coun- tries. However in many cases these tariffs are only lowered if stringent country of origin rules apply and so, for many developing countries, duty rates have remained the same. Despite these regional and bi-lateral efforts and previous WTO Rounds, tariffs on our products still remain high globally. In the Doha Round, the global footwear industry fought hard to eliminate most tariffs through pushing for a sectoral negotiation on footwear. Had this concept been accepted, it would have reduced or eliminated footwear tariffs on a wide swath of non-import-sensitive footwear products. Unfortunately, some key WTO members opposed this approach and footwear was placed in the regular formula cutting approach (straight out reductions on tariffs on a percentage basis). But even under this approach, virtually all shoe tariffs would have been reduced by 50% or more in a final deal. Consider this. In 2006 the United States collected nearly $1.9 Billion in footwear tariffs. Even if our industry were to get a 50% reduction in tariffs we, and our consumers would experience significant cost savings. The same is true for apparel. For the most part apparel trade went through a significant transition when the Multi-Fiber Agreement (or quotas) was eliminated in 2005. Domestic producers of apparel products opposed the elimination of the quotas in the Uruguay Round, and now strongly oppose tariff cuts on apparel products in the Doha Round. Despite this opposition, if the Doha Round is completed, apparel products would have gained some tariff reductions under the formula approach. On equipment, there was strong interest globally in reducing global tariffs dramatically, in many cases to eliminate them entirely. Led by the initiative of several members of the WFSGI, sporting goods equipment was included in the “Zero for Zero” negotiations that had gained real momentum during the course of the Doha Round. While this initiative halted with the breakdown of the larger negotiations, it is anticipated the progress made on “Zero for Zero” can be restored quickly if there is movement on the broader issues of the Doha Round. On trade defense cases, our industry has been faced with anti-dumping cases and safeguard cases from every region of the world on footwear, and will likely soon face new cases on apparel now that the special quotas in several markets on China will expire at the end of this year. Rest assured, domestic producers in Europe, the U.S. and within Latin America are preparing their cases even as you read this article. We can’t prevent them from filing these cases, but having strong, clear, enforceable rules and standards on how these cases can be used and a strong dispute settlement process at the WTO are critical to ensure that only legitimate cases move forward and not ones based on protectionist impulses. The same argument applies to protection of our industry’s intellectual property. For the most part, WTO rules on Intellectual Property (e.g. trademarks, patents etc) are well established. But enforcement around the world remains weak, and the WTO provides a solid mechanism to ensure countries adhere to their obligations on intellectual property enforcement and when they don’t there is a mechanism to resolve disputes in an effective way. As leaders of the global sporting goods industry, we need to use our voices to press our respective governments to get back to the negotiating table and finish this deal. Our industry, and the fate of the global trading system depends on it. In the Doha Round, the global footwear industry fought hard to eliminate most tariffs through pushing for a sectoral negotiation on footwear. 89 WFSGI Handbook 09 Leading by example Multilateral Negotiations at the WTO Leading by example Multilateral Negotiations at the WTO Leading by example Multilateral Negotiations at the WTO Bernard Kuiten, Counsellor, External Relations Division, World Trade Organization 2008 was a year marked by crises and setback. Aside from the Beijing Olympic Games, it is hard to recall any other successes. Roaring food and energy prices and a financial crisis with a magnitude the world has barely seen before. Couple that with a changing climate, which is about to mark the planet with irreparable and irreversible damage if not acted upon quickly, and you have the sum of all fears. The policy challenges facing the world leaders are as great as they have been after the Second World War. The need for collective action and global cooperation is emerging. Given the interdependent state of today’s world, an improved multilateral architecture is the only way forward. More than ever, rules-based solutions have to be put in place to fight the problems of today and prepare for those of tomorrow. Where rules do not exist, they need to be designed. Where they are insufficient or fragmented, they need to be improved or made more coherent. In this respect, World Trade Organization is a good example of a carefully built framework of internationally agreed rules and disciplines. For more than half a century, governments have been making rules, regulating international trade, thereby saving themselves from the policies that brought about economic ruin in the last century. As WTO Director-General Pascal Lamy has said, WTO rules provide a global insurance policy for a global real economy, thereby acting as a « shock absorber » in times of turmoil and uproar. The WTO is a firewall against protectionist tendencies, which is particularly relevant today as crises surround the globe and protectionism is feared. Constructing this wall took a long time. To preserve WTO’s functions and leadership in successful multilateral co-operation, it needs to be maintained and further fortified. A long but gratifying road 2008 is a historical year for the multilateral trading system. 60 years ago, a small, but visionary group of countries realized the need to start the construction of a system of international trade disciplines. Picking up the pieces after a long period of economic and strategic disaster, the 23 government leaders agreed that go-it-alone and beggar they neighbour policies had ruinous effects on their economies. Instead, a collective and rules-based approach in trade relations was proposed. The intended International Trade Organization never got off the ground, but instead, the countries signed the General Agreement on Tariffs and Trade (GATT). This became the start of a new and unprecedented sys- tem of international trade governance. 50 years later, the GATT became the World Trade Organization, which now represents a sophisticated and matured regulatory system under which nations interact commercially. It has been updated through eight rounds of trade negotiations between 1947 and 1994 and has a membership that rose from the original 23 to 153 countries today. The establishment of the WTO was as a milestone in international cooperation. It reflected the continued believe in equitable and transparent trade rules and the need for a permanent global trade body to promote and expand those rules. It confirmed the world’s trust in collective action and its willingness to subscribe to a multilaterally agreed contract, coupled with flexibilities, safeguards and controls to ensure that the legitimacy of the system for all its Members. The membership takes decisions by consensus. One country equals one voice, regardless of its size or share in world trade. Negotiations on new or improved rules and opening of markets are gradually implemented, resulting in tailor-made trade agreements that cover most if not all aspects of trade in goods, services and intellectual property. The system has the necessary surveillance instruments and a binding dispute settlement mechanism, available to all WTO Members. Finally, given the diversity of the WTO Members’ economies, the rules allow for flexibility and compensation in order to meet the system’s overall trade and development objectives. Multilateralism at work There is a strong philosophy behind the idea of multilateral, consensus-based and gradually negotiated rules and market openings : it guarantees full ownership of the results, allows country-specific diversity and warrants that sufficient time is available to adjust to changes in the regulatory system. As credible as this may sound, the system has been put to test in the last decade. Critics have argued that the negotiating philosophy of the WTO is not adhered to, creating a sustained conflict between the multilateral nature of the organization and the negotiating practice. Accordingly, a small group of developed country Members of the WTO (and the GATT before) determined the shape and direction of trade negotiations and left insufficient time to the majority of the membership – the developing and least-developed countries - to adapt to new rules and market liberalization. The commitments taken on by WTO Members at the end of the Uruguay Round negotiations in 1993 may have been burdensome for some developing countries. The failed attempt to launch new negotiations during the famous WTO Ministerial meeting in Seattle in 1999 was evidence of reluctance among the WTO membership to commit to a new phase of market liberalization and expanded WTO rules. In 2001, the membership tried again and launched the Doha round of negotiations. Since then, we have witnessed a remarkable and decisive change in the negotiating process at the WTO. The membership committed itself to the creation of a more equitable and development-oriented trading system. History learnt the WTO lessons about making development concerns part of and central to any multilateral reform. Developing countries, both individually and collectively, have taken the major stage, reflecting their growing say and importance in world trade, as well as the need to see their interests and demands reflected. This has greatly improved the inclusiveness of WTO negotiations and will contribute tremendously to a smoother and more harmonious implementation of multilaterally negotiated results. Concluding the Doha round is easier said than done though. History shows that multilateral trade negotiations take and deserve time. We are 7 years down the road and the ride has been far from smooth. This is not surprising, given the WTO’s consensus-based negotiating philosophy, the number of Members and their diversity and a complicated agenda filled with 20 major negotiating topics and 15 subtopics each. However, step by step, in line with the gradual negotiating approach, the scope of the work has been narrowed and in July 2008, WTO Members came very close to agreements on the major determinants of further liberalization of agriculture and industrial goods trade. Negotiators hit the wall on a technical matter – how and when to protect developing country farmers when imports rise substantially- hiding the more fundamental problem of matching development and liberalization interests. A future unclear? Work is nevertheless continuing at WTO’s headquarters in Geneva. The July 2008 was a setback, but no reason to give up on what was accomplished until then. Among others, there was essential agreement on a formula to cut farm tariffs and reduce trade distorting domestic farm subsidies. WTO Members already agreed to eliminate direct export subsidies. Rich country duties on at least 97% of the poorest countries exports will be eliminated. Gaps in market opening for trade in industrial goods were narrowed. In short, the majority of the work was done and the foundation for concluding the round is in place. The remaining part of the puzzle will come once the political climate is confident enough to make another attempt to finalize the Doha Round. A WTO deal has often been compared to low-hanging fruit, which is relatively easy to identify and pick. WTO Members came very close at filling the basket and have an obligation to prevent each other from drifting away in opposite directions. This would send a very bad signal around the world and would not bode well for future attempts to seek convergence on considerable more complex matters such as climate change or the financial crisis. So far, the multilateral trading system has been exemplary in making progress and seeking solutions collectively. Political failure to conclude the Doha Round would go contrary to the vision developed 60 years ago. It would put to question the success of 6 decades of multilateral trade cooperation. But more importantly, it could spell disaster for the enormous challenges of the 21st century. What is the WTO? Location: Geneva, Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations (1986-94) Membership: 153 countries on 23 July 2008 Budget: 185 million Swiss francs for 2008 Secretariat staff:625 Head: Pascal Lamy (Director-General) Functions: • Administering WTO trade agreements • Forum for trade negotiations • Handling trade disputes • Monitoring national trade policies • Technical assistance and training for developing countries • Cooperation with other international organizations WFSGI Handbook 09 91 Perspectives for Global Trade in the Early 21st Century Expect Very Turbulent Times Ahead Perspectives for Global Trade in the Early 21st Century Expect Very Turbulent Times Ahead Jean-Pierre Lehmann, Professor of International Political Economy, IMD & Founding Director, The Evian Group “Through trade, people’s satisfaction, merchants’ profits and countries’ wealth are all increased”. This was the remark made centuries before Adam Smith and David Ricardo by the Tunisian philosopher Ibn Khaldun in the 14th century. Throughout history, societies that have traded together have mutually gained. Because of its positive effects on the citizens of trading nations, it has long been held that there is a correlation between trade and peace. The early 19th century French economist Frederic Bastiat commented: “if goods don’t cross borders, armies will”. The most famous remark on that subject was made by Franklin Roosevelt’s Secretary of State (and Noble Peace Prize winner)in 1937 at the height of the trade wars that had engulfed nations and that were within a short time to metamorphose into military war: “I have never faltered, and I will never falter, in my belief that enduring peace and the welfare of nations are indissolubly connected with friendliness, fairness, equality and the maximum practicable degree of freedom in international trade”. Hull’s vision materialised after World War Two when a global multilateral rules-based trade regime was established, initially under the aegis of the GATT (General Agreement on Tariffs and Trade) and subsequently, from 1995, the WTO (World Trade Organisation). In the decades that followed World War Two trade boomed and contributed massively to the rising wealth of consumers in North America, Western Europe, Japan, Australia and to that of those developing economies, notably Taiwan, South Korea, Hong Kong and Singapore that engaged in international trade. The sporting goods industry was clearly a major beneficiary of these very positive trends. International trade proved so successful that eventually virtually all of those countries that had shunned trade out of ideological convictions, whether the communist states of the Soviet bloc or the economic nationalists and protectionists of what used to be called the “third world”, abandoned their positions and sought to join the global market economy – as this would give them better fishing rods, tennis rackets, golf clubs and better conditions in which to enjoy them. The amazing and indeed unprecedented trade success story of course has been that of China. The transformation that has occurred in the global market economy has been amazing. Countries ranging from Vietnam to Brazil to Chile to South Africa have seen their trade grow by as much as 100% per annum. Whereas the trade community for most of the post-war decades was mainly a small coterie of rich states, today almost every country in the planet – if you add members (153 countries) + applicants (some 30 countries) – is in the WTO. And yet, while trade is highly beneficial to the vast majority of citizens, it does have its enemies. These are primarily people who work in non-competitive industries that enjoy state protection and hence are able to extract rents either through very high prices or through subsidies or, in the case of EU agriculture for example, both. The economics of trade are straightforward; the politics can be very complex. Indeed when trade becomes too political, as is the case at present; it is likely to generate more confrontation than collaboration. Thus, all the positive developments that have occurred in the last couple of decades notwithstanding, the major reason why the WTO Doha Round has been paralysed is that the countries that ran the trade agenda for decades (basically the OECD countries) are not prepared to diminish significantly, let alone abolish, the privileges that have been granted to some of their important political lobbies. Very high tariffs and other restrictions are imposed, for example, on garments, textiles and footwear from developing countries in the US in order to protect economically weak but politically strong industrial sectors in the US South. There is also a misplaced fear that trade causes job losses. This is at best only partially true, but it is much more convenient for politicians to blame foreigners for their country’s ills than to have to own up to their own failures in areas such as education, innovation, infrastructure development, and so on. This fear is exacerbated at this moment by the apparent unstoppable juggernaut of China. When the world is in a state of anxiety, coupled with poor political leadership, and especially if other causes of fear arise, such as a financial meltdown, there is a visceral tendency for politicians to engage in populist measures, one of the most populist of all being protectionism. This is the state in which we are at present. We are heading for a period of protectionism and trade turbulence. What can be done to reverse the trend? One important source could be that those who benefit from trade, such as the sporting goods industry, should also seek to promote the benefits of trade to public opinion and participate in the trade public policy process. And indeed the sports industry should be a prime candidate for seeking to ensure not only that trade is properly promoted, but in particular that there should be a level playing field! Through trade, people’s satisfaction, merchants’ profits and countries’ wealth are all increased. Tunisian philosopher Ibn Khaldun in the 14th century. The Evian Group, founded in 1995, is an international coalition of corporate, government and opinion leaders, committed to fostering an open, inclusive, equitable and sustainable global market economy in a rules-based multilateral framework. The Evian Group advocates trade liberalisation to achieve growth and sustain the momentum of globalisation. The Evian Group believes that international trade and investment has the great potential of uniting people through greater mutual understanding and common interest across countries, continents, cultures, and generations, rather than dividing them. The Evian Group, although global in its outlook and outreach, has focused on four key regions: Europe, the Arab Region, Greater China and South Asia. All four have played a major role in the development of global trade and world civilisation. The four regions are vital to the establishment of the 21st century global community, without which the global market cannot be sustained. The Evian Group is committed not only to establish a constructive and strong presence in the four regions, but also to act as a bridge between them. The Evian Group adheres to the view that poverty, inequality, injustice and intolerance are the key moral issues of the 21st century, as slavery was in the 19th and fascism in the 20th. It believes that a market economy, founded on responsible capitalism, combining the critical role of government in providing public goods, a strong ethical base of good governance, and free enterprise are the best means for generating growth, employment, empowerment and enrichment in terms of both wealth and welfare. The Evian Group is strongly engaged in working with the next generation of leaders and with youth, convinced that if youth does not have hope in the 21st century, there will be no hope for the 21st century. The Evian Group believes that every positive contribution, no matter how modest, counts. It also adheres strongly to the words of Edmund Burke : “All that is needed for evil to happen is for good men to do nothing. More on www.eviangroup.org WFSGI Handbook 09 93 CISO Committee - Activity Report 2008 CISO Committee - Activity Report 2008 CISO Committee Activity Report 2008 Marius Rovers, Chairman of the CISO Committee - Committee on International Sports Organizations We can look back on a very successful year for the CISO committee. Thanks to the professional guidance, the CISO committee was run in the first 9 month in 2008 with interim chairmen, Jean Pierre Morand and Celia Muir. Together with the Secretary General they continued the directions and preparations for the various meetings and Olympic Games. The year 2008 was a challenging one because of the Olympic year as we again have been able to play a role in the support to our members present at the games. The target of the CISO committee for 2008 was to reinforce and/or re-establish contact with the IOC and International Sport Federations. We also had to prepare the Olympic Games when it comes to the implementation and problematic of IOC Rule 41 and 51 (kit and advertisement regulations), Technical Accreditations for the brands and the Olympic tickets. We had a special task in analyzing the Manufacturers Identification Guidelines and a Brand Exposure study. 1. IOC information The IOC installed a new kit and equipment approval system (IOC Rule 51) for the Olympic Games which showed to be a good way to evaluate the products before the games and to avoid major problems during the Olympics Games. Kit’s need to be approved up front and an electronic platform has been made available for submission support. In addition we like to thank the IOC for the good collaboration in judging implementation possibilities of the products in the field of play. For a more harmonious collaboration and a respectful participation at the games, the IOC and the WFSGI discussed about the brands participating at the games. Our IOC – WFSGI Code of Conduct gives the IOC and WFSGI the right for special treatment but also respect against ambush marketing and other misuse of the brand presence. Ideally, a sporting goods brand present at the Olympics should be part of the WFSGI. Last but not least we have to thank the IOC and BOCOG for the great Olympic Games. time line of the MIG has been discussed and shall in the future be aligned to an ideal timeline for the industry (24 month before the Games). 4. Brand Exposure project We launched a project together with the AISTS (Sport Ma nagement University of Lausanne) where we went through major sports and disciplines and compared the world championships with the Olympic Games when it comes to exposure, branding possibilities, attractiveness, op portunities, threats, and other elements which could influence the future collaborations between the sporting goods industry, the federations and the IOC. © ICF - Balint Vekassy 2.International Federations In April and Mai we have visited several International Federations where we discussed our organization and our possible extension of our collaboration. With FIFA we already collaborate on a local and specific product manufacturer clearance system which will be extended to a more world-wide system. The aim is to secure that brands, using federation branded products (approval schemes or other), are using factories that respect the minimum ILO country standards for labor conditions (Child labor, working conditions, wages, pension plans, hygiene, etc.). ZHANG Juan Juan (CHN), Individual Archery Olympic Champion / © FITA - Dean Alerga During our WFSGI meeting, in Mai 2008, in Beijing we invited Mr. Gilbert Felli, Executive Director of the Olympic Games, to make a presentation about the Youth Olympic Games and the impact for our industry. This discussion continued in Lausanne in our CISO committee meeting with the IOC. We agreed to evaluate the situation for the sporting goods industry and to support the IOC where ever possible and useful with our inputs. We also pre-discussed with FIFA the WC2010 kit rules and regulations where we organized a meeting to discuss the comments and inputs from our industry on the proposal. It is a pleasure to work with FIFA and their professional team. 3.IOC Manufacturer Identification Guidelines project This project was launched after the experiences from the Athens and Torino Olympic Games. We noticed certain problems where we have take the initiative to evaluate the documents and to propose a better form. The aim is to have clear guidance which is adapted to the industry design and manufacturing possibilities. In the end we wish to be innovative, efficient and cost saving. Also the © Michael Flippo - Fotolia.com Our mid-term objectives will be to get the WFSGI back at the center of the IOC and IF’s radar screens and to identify joined interest to grow the sports and our mutual activities. We therefore plan in 2009 a closer collaboration with the International Federations and the IOC. Certainly the IOC part will be challenging because of the Manufacturer Identification Guidelines for Vancouver 2010 and the Youth Olympic Games 2010. Two major Olympic events in one year with also the FIFA World Cup 2010 is quite an interesting calendar for 2010 and which needs good preparations. Together with our brands we will do our outmost to create the best possible innovative products to support the athletes and the attractive competition, both in sponsoring and development. The quality and timing of the events will decide the future directions of the sporting goods industry and their participation. With the economic recession it will become more important to evaluate the brand performance against the investment. WFSGI Handbook 09 95 sPORTs sPOnsORsHIP REacHInG lIFEsTylE sEGMEnTs sPORTs sPOnsORsHIP REacHInG lIFEsTylE sEGMEnTs sPORTs sPOnsORsHIP ReaChING lIFeSTYle SeGMeNTS thomas Peichl, Manager Lifestyle Research, GfK Group sports sponsorship aimed at the target (group) The 2008 Olympic Games in China are being heralded in the press as the most successful games in Olympic history to date. Perfect orchestration by the Chinese organizers, superb performances and the human endeavor illustrated by the spectacular feats of sportsmen and women amazed and touched people all over the world, making this the ultimate sporting media event. Unforgettable personalities, including 8-gold medal winning swimming champion Michael Phelps from the USA, Chinese hurdler and superstar Liu Xiang, who ultimately had to pull out due to injury, and German weightlifter Matthias Steiner, who dedicated his victory to his late wife. Around 4.4 billion people watched the Olympic Games worldwide and according to Germannewssite,zeit-Online,anunbelievabletwothirdsoftheglobal population had tuned in to watch. While the Olympic Games in themselves have always attracted a great deal of interest, the reach of sports and sports sponsoring has also been extensive and the level of public involvement high. Yet here, too, irrespective of event and type of sport, there are differences in media perceptions between countries and spectators. The interesting question for advertising clients is ultimately: which countries are particularly promising for sports/sports sponsoring and where can we reach large numbers of spectators? Which events or types of sports reach which target groups and which types of sport are a good ‘fit’ with which brands? sport: a high-interest subject with regional variat ions in core focus Sport impacts on a huge number of people around the world, who participate in sports themselves or are interested in sports. Consequently, it is a very interesting topic for the population. The annual worldwide GfK Group study, “Roper Reports Worldwide 2007” [RRW], which surveys the attitudes and behavior of consumer target groups in 25 countries on five continents, shows that around a third of the global population do some kind of exercise or endurance sport at least once a week to keep fit. And 18% of respondents claimed to be very interested in doing sport. There is, however, a considerable level of variation between the countries under review. The countries to top the table are Germany and Australia with 28% and 23% respectively, whilst in Russia and China (before the Olympic Games), just 10% and 14% said they were interested in practicing an active sport. As far as sponsoring is concerned, however, it is not only the issue of the intensity with which sport is practiced, which is decisive. It is much more about an interest in sports and placing emphasis on sporting events. The Roper study shows that an average of 18% of the global population visit a sports event at least once a month, with Spain with 23%, followed by Australia and Brazil at the head of the league table. The general interest in sport is even higher. According to the percentage of people who participate in sports on a weekly basis (see above), a third of the population say they are very interested in watching sports. The front-runners are the UK, USA and Australia, with an agreement rate of around 40% each. A high interest in sports can be broken down to show very differing patterns between various countries with regard to active participation in sports versus the passive enjoyment of sports. Whilst in Australia, for example, an above average interest in participating in and watching sports can be documented, the UK records an average level of activity and high level of interest in watching and the USA documents a low level of participation coupled with a high passive interest in watching sports. Low active participation in sports and low interest in watching sports characterized the (urban) population of China, before the Olympics at least. sports (sponsoring) as a means for target group marketing arranged in a list of lifestyles, which shows the consumer-related values of the individual target groups. Despite nationally varying environments and commercial worlds, the chosen basic structures of values and consumer patterns have proved to be accurate worldwide. Differences between regions and countries can be perceived through regionally differing target group sizes. For example, the percentage of cosmopolitan people in Russia is 10%, in Japan, it is 15% and in Spain, the figure is as high as 16%. Beyond this, national particularities can be identified and analyzed using comprehensive databases. GfK Roper Consumer Styles provide a basis for national and international target group analysis and marketing planning, which can be traced back to target groups with internationally comparable patterns in value and preference, and comprehensive background information on targeting communications. Analysis of an interest in sports shows that considerable differences exist between lifestyle target groups and that target groups which can be reached via sports are easily distinguishable from those target groups where this is less the case. The Adventurers, for example, have a disproportionately high interest in practicing sports. At 35%, this lifestyle group’s level of sporting activity is almost twice as high as that of the general population. Other groups which are more active than average are the Rational-Realist and the Open-Minded lifestyle groups. The Settled target group is positioned far below the average, with just 7%, but with 10% and 12% respectively, the Organics and the Dreamers also exhibit low levels of sporting activity. Aside from regional differences, a particularly relevant issue in the domain of sports sponsoring which target groups can be reached via sponsoring. Data collected from the RRW study was analyzed further to investigate the target group effects or target group-specific potential of sports sponsoring. The basis for this were the GfK Roper Consumer Styles [GfK RCS], a worldwide validated target group typology produced by the GfK Group, built on consumer interests, activities and values and various social groups with diverse lifestyles, that is, people identifying with differing preferences in terms of consumption, hobbies, communication and media. The GfK RCS typology distinguishes between eight different lifestyles. These are 97 WFsGI HanDbOOk 09 sPORTs sPOnsORsHIP REacHInG lIFEsTylE sEGMEnTs There is a similarly wide spread in terms of sports spectators. Like in the practice of sport, the Adventurers (47%) and the RationalRealists (44%) displayed most interest in watching sports, whilst the Dreamers (18%) neither participated nor were keen on watching sport. Conversely, the Open-Minded group, which is above average when it comes to sporting activities, showed little interest in passive spectatorship. On the other hand, the Homebodies offer an above average opportunity for sports sponsoring, since this group, which has hardly any interest in participating in sport (12%), very much enjoys watching it (41%). By way of summary, the Adventurers and Rational-Realist target groups can be identified as groups where sports sponsoring can be most effective. Additional target groups which can be reached by sports and sports sponsoring are the Homebodies, the Demanding and the Settled, while it would be hard to reach the Dreamers, the Organics and the Open-Minded this way. However, the various lifestyles not only differ with regard to their interest in sport in general, but also in relation to their sporting preferences. Irrespective of country-specific interest in individual sports, certain types of sport are more or less suitable to reach particular lifestyle target groups with sports sponsorship. Using data on interest in individual types of sport in Germany by way of example, (source: Allensbacher Werbeträger Analysse 2007), quite specific interest profiles can be identified for the different lifestyles, and these correspond closely to the values and wishes of the particular lifestyles. The Adventurers, whose defining characteristic is the desire for adventure, excitement and standing out from the crowd, have an above average interest in team and extreme sports. For example, their interest in basketball is 2.6 times as high as the average for the population (index factor 2.6), while 3.2 times more Adventurers than average go snowboarding. The Homebodies, who long for social recognition and achievement, have an above average affinity with combat and motor sports (boxing: index factor 1.4; motor sport: index factor 1.4). The Organics, who are searching for sustainability and natural experiences, are particularly tuned into nature-oriented sports, such as sailing (index factor 1. 6), or riding (index factor 1.4). FIFa anD THE FIFa WORlD cuP™ “bRanD” The Open-minded, who are driven by values such as internationality, beauty, creativity and wellbeing, have an above average interest in sports like dancing (index factor 1.5) and ice skating (index factor 1.1). FIFa anD THE FIFa WORlD cuP™ “bRaNd” FiFa Public relations Sports and spots sponsoring offer excellent opportunities to reach a broad section of the population at an emotional level, and are also effective for regional and above all, target group oriented activities. To avoid any dissipation of the effort, in addition to homing in on the reach (total and regional), it is essential also to focus firmly on which target groups can be reached by which individual types of sport. The brand values involved must be reconciled with the values of the target group and the type of sport concerned, in order to generate well-targeted momentum which is not only quantitative, but also qualitative. In order to achieve this, ideally, the current target group positioning of the brand of the company concerned should be checked to ensure that communications can be accurately aimed at the strategic target groups. The FIFA World Cup™ has never been, and never will be, awarded to a nation to host for purely commercial reasons. Over the course of the last 80 years it has been awarded on the basis of how it can be a force for good in the host country in terms of social and cultural terms – making a lot of people’s live better both directly and indirectly. Various ‘systems’ have been used over the years, but the most important are the weights and balances caused by the diversity of bids and the desire of the FIFA Executive Committee who award the event to look for merit beyond the technical delivery of the event. The commercial programmes, including media, brand affiliate and merchandising partners, have to make do with the decision of the FIFA Executive Committee. But rather than seeing that the commercial agenda comes after the fact and therefore weakened, such is the power of the FIFA World Cup™ that it could be held anywhere in the world and it would mean the same to the billions of fans of the event. The traditionalists would always advocate the axis of talent between Europe on South America, but recent forays into North America, the Far East and in two years to the tip of the African continent are proving the point that the Committee are widening the game’s appeal using the event and that is proving a massive success. but is the FIFa World cup™ a brand and can it therefore be managed? There have been millions upon millions of words spoken and written about the FIFA World Cup over the last 80 years. Every aspect of it has been anticipated, discussed, reported, critiqued, gossiped, argued passionately and joked lightly about. Whether it was the welcome from the hosts, the quality of the games, the heroes and villains, the famous goals and results and the final ecstasy of the presentation of the Trophy to the winners, little has been left out down through history. Most is spoken between friends new and old whose ephemera is lost but there are plenty of text books that record every statistic for future generations to add to the thousands of column inches penned by professional journalists who capture the emotion of the event for posterity. In a way, defining the FIFA World Cup as a ‘brand’ in the classic definition of the word is belittling the series of events that has become the world’s largest sporting festival. The FIFa World cup™ has never been, and never will be, awarded to a nation to host for purely commercial reasons. It is a phenomena, a shared global experience, a summer (and sometimes a winter, as with the next event in South Africa) of escapism and a strong sense of the positive power of humanity. The world doesn’t stop turning during the event, but there is a collective consciousness towards the event that somehow makes life better for billions of people who can escape into the FIFA World Cup as the story of each finals unfolds. If a brand is in the minds of the consumer or fan, a summary of their emotional feelings towards the ‘product’ that differentiates and affects the buying decision accordingly – then the FIFA World Cup™ must be one of the world’s almost inspired brands. So much is anticipated from 64 games of 90 minutes each; so much excitement and positive emotion is felt and expressed towards something that happens only once every four years; and so much is forgiven for the event’s ‘imperfections’ – the games that don’t go as planned, great players who don’t deliver, huge teams slain by minnows as well as the occasional operational hic-cup including the Trophy being stolen, the lights in the stadium failing and so on, that the brand ‘aura’ seems to be a marketeer’s dream. Any yet... every four years, the brand evolves massively to meet the expectations of the new event – new host, new era, new levels of expectation. WFsGI HanDbOOk 09 99 FIFa anD THE FIFa WORlD cuP™ “bRanD” When the inaugural event was hosted by Uruguay in 1930, there was little need for the massive amount of commercially valuable graphic inventory produced for today’s events. A strongly patriotic poster was used to promote ticket sales and doubled up as an event emblem of sorts. Over the years, as the event grew in size, as it started to become a ‘series’ where the legacy of the last became the foundation for the next, the hosts developed branding which was more usable than the official art poster, firstly with an emblem and then, with the explosion of the memorabilia industry in the 1960’s, the first event Mascots. Every four years, the brand evolves massively to meet the expectations of the new event – new host, new era, new levels of expectation. FIFA’s name was not used in the branding prior to France’98. This was more out of modesty than any other reason, the feeling that the Host Country should receive all the credit for their endeavours. In 2002, FIFA worked closely with the two organisers from Korea and Japan to create harmony between all three ‘parties’ in the relationship which produced the new symbiotic branding concept whereby FIFA brought the international football credibility and the hosts added their special local flavour to the ‘brand’. In 2006, the German people thought that both FIFA and the organising committee lead by Franz Beckenbauer had totally lost the plot when the presented the ‘faces’ Emblem. When billions of people joined in the wonderful party in the summer of 2006, suddenly the bright colours and wild design made sense to everyone and the organisers were praised for their bravery and vision. The history and legacy of the FIFA World Cup is bound up in their most important perennial icon – the FIFA World Cup™ Trophy. Recently FIFA has invested heavily in ensuring that the Trophy is both seen as the highest prize in football, the game of everyone, but also treated as a super premium ‘brand’ asset to be fiercely protected from those who would wish to trash it commercially. Of the entire ‘brand inventory’, the Trophy is pretty much the only element that does not evolve or change with the advent of every new event. The FIFA World Cup changes continent and country every four years. Whilst wishing to ensure that the event is always consistently presented as the world’s best sporting finals, the celebration of the culture of the hosts and the opportunity for them to present their national message to the world is equally important. It would be a travesty for FIFA to subscribe to the brand ‘purists’ who see investment in the same marks over many years as the only way to build the brand positively in the minds of the consumers or fans. As previously stated, the FIFA World Cup™ and all its assets embrace change, accept the fallibility and humanistic highs and lows and would never want to be seen as a ‘perfect’ product that cannot join their own party for risk of their own reputation. For 2010, a full palate of brand ‘assets’ has already been assembled and launched, most recently with the unveiling of zakumi, the super-cool leopard mascot. The Emblem was extremely well received when it was launched on the penultimate day of the Germany 2006 event; the official Poster was unveiled last year. All commissioned and produced using the talent of South Africa coupled with FIFA’s experience in creating unique assets which are commercially valuable, legally protectable and are worthy additions to the 80 year old series of quadrennial events that are the FIFA World Cup™. It will all start again for 2014 FIFA World Cup Brazil™ in the near future, to ensure that the story of South Africa flows into the rebirth of the brand that will be the next event. FIFA plans to launch the 2014 emblem at the conclusion of 2010, then the poster, then the mascot and all the other assets that will be seen on millions of products and billions of TV screens. Some brands are happy to stand and be judged on their monolithic credentials. The products associated with the brand may fail but the brand reputation endures. The FIFA World Cup™ ‘brand’ is as organic as the event that it represents and will continue to be constantly evolving and changing to meet the future and the fans expectation of regeneration. Play unfair. Is it unfair to wear Skins™? You bet. Independent scientific research proves that Skins™ eliminates lactic acid and other wastes faster, allowing you to exercise at a higher rate for longer. That probably won’t make your competitors very happy. But we’re sure you’ll get over that. Blood lactate (mmol/L) In the early years of the World Cup (which would be evolved to the current FIFA World Cup over the last decade or so), little thought was put into the ‘brand’. The events could only be seen live or read about in the papers or as movie reels taking many days to journey across the world from the event. FIFA was well established and respected for its work in bringing the professional football game to the world stage and away from the problems of sham-amateurism of the event within the Olympic movement. With Skins™ long tights No Skins™ Anaerobic threshhold Power (watts) The physiological and performance effects of lower-body compression garments (Skins™). Dascombe B, Scanlan A, Osbourne M, Humphries B, Reaburn P (2006) This study showed practical improvements in the individuals’ anaerobic threshold and lactate clearance. On average, the endurance level is increased by 15 watts (5%) when wearing Skins™ long tights. skins.net The impact of the 2008 Olympic Games on aquatic specialist TYR Sport The impact of the 2008 Olympic Games on aquatic specialist TYR Sport Steve Furniss, Executive Director of TYR Sport, Inc., 1972 and 1976 Olympics in Swimming Beijing 2008 : Swimming and Technology on the Front Stage The Olympics represent a unique marketing and brand exposure proposition for a specialist company of our size. As an athletic company, no single event, other than the Olympics, can provide global exposure across all markets and distribution channels. As a former Olympian, I still believe strongly in the Olympic ideals as it allows us, as a company and people, to connect with an event that represents what sport, in the spirit of competition, can only uniquely achieve ; namely the gathering and exchange of people of different cultures, views and interests. We not only take pride in the achievements of our countrymen, but can appreciate the performances and human drama of so many great athletes. It is unique to the Olympic spirit and something TYR is proud to be associated with. Beijing 2008 represented an even greater marketing opportunity than in past Games given the tremendous Olympic investment made by China to showcase their country, culture, people, and position as a major economic and political power. This coupled with the fact that aquatic sports captivated the media’s attention and public eye with both exciting races as well as history making (Michael Phelps unprecedented eight gold medals), placed both our sport and company into the broader public consciousness. The impact of the 2008 Olympic Games on aquatic specialist TYR Sport played an integral part in athletic performance. In aquatic sports, the uniform and the technical equipment are the same, thus as brands we become inexorably connected to both the athlete and the athletic performance achieved. This unique relationship provides us exposure on an unprecedented level by reaching not only our direct aquatic community, but the broader general public as well. We leverage this exposure into greater awareness of our brand and the ability to tie into retail promotions and media exposure through our athletes before, during and after the Olympics. Due to the popularity of swimming during the Games and the many positive roles models we have in our sport, we expect to see greater than normal participant growth the year following as parents enroll their kids in swimming programs. Longer term we feel the exposure will assist us in our international growth due to the connections to and exposure from Beijing. TYR (pronounced tier) Named after the mythical Norse god of warriors and deity among all athletes, the TYR brand embodies the competitive spirit of sports and is a symbol of courage and victory. Founded in 1985, TYR has passionately dedicated itself to redefining the next generation of performance and recreational swimwear and accessories, while continuing to be the model of leading edge innovation and style. TYR swimwear and goggles swam an Antarctica mile TYR was the personal choice of swimwear and accessories for Lynne Cox, the «world’s most extraordinary distance swimmer,» and subsequently her proud product sponsor. Lynne has set unprecedented records for swimming such bodies of water as the English Channel, Cook Strait, Strait of Magellan, Bering Strait, Cape of Good Hope and becoming the first human to swim an Antarctic mile. In January of 2004, Lynne’s book Swimming to Antarctica was published by Knopf. 4-Time Olympic Gold Medalists Anastasia Davydova and Anastasia Ermakova 2-Time Olympic Medalist Amaury Leveaux. Features TYR Tracer Rise Full Body On a personal level, I have had the good fortune of attending several Olympics, but Beijing was different in that great facility architecture provided the setting for extraordinary human performances which we all could appreciate. Though we shared in the excitement of our athletes achieving medal performances, we also experienced the disappointment of those that did not realize their Olympic dreams. Though it has taken almost 4 years of preparation, we could not be more excited for London based on what we experienced and learned from Beijing. Citius, altius, fortius! Based in the United States, TYR distributes its products in over 50 countries world-wide. Our sponsorship of athletes and international federations in the Olympics reinforces our position as one of the leading technical aquatic brands. It provides invaluable exposure and brand awareness with our core participant markets in geographic regions where we are less well known and under distributed. As for media interest, we, as well as our competitors, were able to showcase new long body swimsuit technology which Made for swimmers, by swimmers Executive Vice President, Steve Furniss, competed in two Olympic Games (1972 Bronze Medalist, 1976), and was Captain of the 1976 U.S. Olympic Swim Team. Steve Furniss, and his brother Bruce (1976 Gold Medalist), participated in the 1996 and 2004 Olympic Torch Relay. 3-Time Olympic Medalist Matt Grevers. Features TYR Tracer Rise Full Body. 103 WFSGI Handbook 09 LI-NING’s innovative Olympic marketing LI-NING’s innovative Olympic marketing Advertising and money can not make up a brand alone, innovative idea and well-knitted strategy is more important. And communication in places attracting more eyeballs is far more effective than pure sponsorship. Frank Zhang, Vice-President Government & Public Affairs, Li-Ning LI-NING failed to be the official sponsor of Beijing Games in a bid where competition is as fierce as in the racing field before the opening of the Games. Facing the prevailing communications of other Olympic sponsors and LI-NING’s rivals, how shall LI-NING grip the opportunity of Olympic Games which is held in China for the first time? As there’s no straightforward means, maybe an innovative way is a solution. LI-NING eventually obtained very good performance through innovative marketing with just a small input. The national sports brand stepped on the global stage with the opening of the Games. “Eyeball” strategy : break through the Olympic barriers Just two days after failing in the bid, LI-NING entered into an agreement with CCTV-5 (a monopolized state-level sports channel), requiring that anchorpersons and reporters of all programs and sports events broadcasted by the channel must wear LI-NING garment. If only tuning in to the channel, LI-NING logo can easily be seen. At the eve of the Games, LI-NING logo disappeared in the studio of the channel according to the latest regulation of the Organizing Committee of the XXIX Olympiad, but the conspicuous “L” logo on the suit of reporters is still eye-catching. Precision sponsorship : optimal communication effect When other rivals focus their sponsorship on the Chinese sports teams, LI-NING selected to sponsor foreign sports teams. The Spain National Men’s Basketball Team, the Argentinean National Men’s Basketball Team, the US Table Tennis Team, the Spain Sports Delegation and the Swedish Sports Delegation all wore LI-NING-branded suit on Beijing Games. The Spain and Swedish Delegation took the 13th and 43rd position on the Medal Tally, while the Spain National Men’s Basketball Team, the Argentinean National Men’s Basketball Team and the US Table Tennis Team were three eye-catching teams with a big audience rating, which are evidences of Li-NING’s foresight. In the meanwhile, LI-NING focused the sponsoring fee on the China National Gymnastic LI-NING, Anything is Possible! Team, the China National Shooting Team, China National Table Tennis Team and the China National Diving Team. The four teams, which are crowned as “team of dream”, have awarded a total of 27 gold medals, more than half of the total of the Chinese Sports Delegation. Flame ignition : Anything is Possible The Opening Ceremony of Beijing Games fuels LI-NING’s Olympic marketing to the climax. Although the ignition of Olympic flame by Mr. Li Ning, the founder of LI-NING brand may not be regarded as an advertisement, the public remember LI-NING brand. In Olympic broadcasting, the words we heard the most in the comments of the events is “Anything is Possible” (LI-NING slogan). Such communications make LINING easily accepted by more consumers. Although there’s no detailed data, but what can be confirmed is that on the first stock trading day, LI-NING’s stock price is sure to rise significantly, LI-NING monopoly store will enjoy hot sale and Li Ning Company Limited will have an outstanding performance. The novel Olympic marketing strategy makes Li Ning Company Limited’s performance grows violently : the company gets a revenue increase of 60.3% to 3.06 billion yuan and a net profit rise of 68.3% to 333.7 million yuan with a 1.6% expense increase in advertisement. yOuTH OlyMPIc GaMEs aDD a nEW DIMEnsIOn TO THE OlyMPIc IDEal yOuTH OlyMPIc GaMEs aDD a nEW DIMEnsIOn TO THE OlyMPIc IDEal yOuTH OlyMPIc GaMEs add a NeW dIMeNSION TO The OlYMPIC Ideal Olympic Games will take place in 2012 in either Harbin (China), Innsbruck (Austria), Kuopio (Finland) or Lillehammer (Norway). The choice of venue will be made by the end of the year and announced in December by the IOC President. the international olympic committee (ioc) By creating the Youth Olympic Games on 5 July 2007, the IOC played its role as a catalyst for the sports movement. It showed that its commitment to the youth of today and tomorrow is about action, not just words, by offering them an event of their own in the spirit of the Olympic Games. The Youth Olympic Games (YOG) are a 12-day multi-sport, cultural and educational event, for young people and driven by young people. The YOG will add a new dimension to the Olympic ideal, complementing what is already being achieved through the Olympic Games and the numerous IOC projects to bring the Olympic values alive. The YOG will bring together talented athletes from around the world to participate in high-level competitions and lead them on their way to becoming true Olympians. This event will allow the Olympic Movement to extend its reach and stimulate worldwide sports activities. create a true community between young people around the world and the participants by learning and sharing experiences. A major role will thus be given to information and education linked to sensitive subjects like the dangers of doping in sport; violence in stadiums; the risks associated with extremes, whether a sedentary lifestyle or overtraining; the benefits of a balanced diet; and the advantages of striking a healthy balance between sport and other social and educational activities. © IOc - Hélène Tobler The role of IOC, IFs and NOCs will be the same as for the Olympic Games. The IOC runs the bid process and its members select the Host City. Once the Host City is elected, a similar tripartite Coordination Commission will guide the Youth Olympic Games Organising Committee (YOGOC) in its preparations and during the event. The IFs will be in charge of the technical aspects of their sport. They will also define the age categories and the qualification criteria. National Olympic Committees will select and manage the delegation of their territory for the YOG. The YOGOC of the Host City and local, regional and national public authorities will be in charge of the infrastructure and the smooth running of the Games. Guaranteeing the universality of the YOG, the IOC will make sure that approximately 3,500 athletes and 875 officials from all 205 National Olympic Committees are involved. In parallel, all NOCs will have representatives in the educational workshops and cultural programmes at the Games. The Youth Olympic Games must set an example in this regard. Alongside competition itself, the event can offer an excellent platform to © IOc - Hélène Tobler The YOG will be innovative Games made to measure for young People, with sports events carefully chosen to protect the health of the young athletes, but also Games made to inspire them with the incorporation of all the Olympic symbols (torch relay, anthem and flag). © IOc - Hélène Tobler Communication is key to the YOG and will be fully adapted to young people. Active and user-generated content based on the latest trends in new media, particularly electronic digital platforms, will guarantee that the YOG will spread - before, during and after the Games - far beyond the host country and the sports community. Tailor-made promotional campaigns will draw attention to the YOG in the months before the event. In Singapore, the young athletes will compete in all the Olympic sports that are on the programme of the London 2012 Olympic Games. However the disciplines will not be the same as at the Olympic Games, and will be limited to around 3,500 athletes. Some sports will innovate with formats that appeal particularly to the young. For example, basketball will be played three against three under a single basket, the so-called “33” format. The YOG are seeking to inspire young people around the world to take up sport. We all know that sport today plays an ever greater role in society. Never has it borne so many expectations as at the start of this new century. People expect sport to promote the integration of minorities; to reduce differences; to combat the rise of obesity; and to help conquer all forms of dependency. Singapore has already proved to be an efficient Games organiser. It is also presenting an attractive cultural and educational programme. The project foresees thematic festivals, an interactive website to build a YOG community and a school exchange programme. The YOG experience will enable the participants to learn, contribute, interact and celebrate, all under the umbrella of the Olympic values of excellence, friendship and respect. Special young ambassadors and young journalists will be in charge to promote the event and its ideals. The first Summer Youth Olympic Games will take place in Singapore in 2010. The first Winter Youth The age groups participating in a sport or discipline will vary between 14 and 18, as defined by the relevant International Federation (IF). As a principle, there will be one age group, e.g. 14/15, 15/16 or 17/18, participating in a sport or discipline. The rights of the 12 existing TOP sponsors will be protected for the YOG. The IOC will fund the production of daily TV highlights produced by Olympic Broadcast Services (OBS). The infrastructure and service level will have to fit the purpose of the Games, ensuring conditions adapted to young elite athletes. A look and feel similar to the Olympic Games with clean venues is required for the success of the event. The Olympic Movement is convinced that the Youth Olympic Games, together with other initiatives launched by the IOC to stimulate the youth of the world, will help to boost sports activities and have an important impact for the promotion of sport, also influencing the social and economic components attached to it. © IOc - Hélène Tobler 107 WFsGI HanDbOOk 09 Healthy Sport in a Healthy Society Healthy Sport in a Healthy Society Healthy Sport in a Healthy Society Sport and physical activity on the international agenda Sport is increasingly a tool for development on the international agenda. Building new bridges and partnerships in a world striving for more sport activity, physically fit and active people. Lars Wiskum, CEO, Sportventure, & Mogens Kirkeby, President, International Sport and Culture Association Sport is part of every man and woman’s heritage and its absence can never be compensated for. Pierre de Coubertin New opportunities for the sporting goods industry During the 80`s, 90`s and in to the new century the sporting goods industry has experienced tremendous growth. We have been through the running/jogging boom, the first fitness craze, a growing wintersport industry and the rise of the fan culture. This along with outdoor trends like fitness walking with poles, more people choosing active holidays, and the general campaigns for healthier lifestyles have lead to continuous record results for most sports companies. Great athletes have turned into superstars and product development and technical innovations have crossed new borders for the industry. Sports lifestyle segment has been growing and the wellness revolution is taking off as a new trend. We dress sporty and watch sport for entertainment. Nevertheless, we are today facing a worldwide epidemic obesity situation; due to lack of physical activity the World Health Organisation (WHO), the United Nations and the European Union urge the national governments and all other stakeholders to take action. Athletic achievements and competitions in sports can be local events outside your doorstep. Day to day fitness activities like running, riding bikes, fitness walking and exercising in outdoor equipment in parks have become more visible in many counties – especially in western European countries and USA. The obvious reason is that more people around the world start to realize that we get too little exercise through our daily routines. Physical inactivity (a lack of physical activity) is an independent risk factor for chronic diseases, and is estimated to cause 1.9 million deaths globally according to WHO. The Sporting Goods Industry and its stakeholders can be key partners in changing the culture of sport and physical activity and encouraging more people to move from inactivity to a physical active life. Timeline of some developments internationally • 1978 Unesco adopts the International Charter of Physical Education and Sport • 2001 UN Secretary-General Kofi Annan appoints Special Adviser on Sport for Development and Peace • 2003 First International Conference on Sport & Development, Magglingen • 2003 First conference on “International Expert Meeting on Development in and through Sport” • 2005 International Year of Sport and Physical Education • 2007 European Commission publishes a “White Paper on Sport” • 2008 IOC and UN agree on an expanded framework for action to use sport to reach goals of the UN (Sport & Development 2008) new games and exercise opportunities. Who would have imagined just ten years ago, that walking with poles, like in Nordic Walking, would be a new fitness trend for millions of people and the same time also be a basic for creating new outdoor activity opportunities, like nature fitness trails and outdoor exercise parks? And who could predict that a new outdoor exercise culture inspired from China, where many parks feature training devices, would arise from the growing concern in Europe and USA about rising obesity rates and inactivity levels? In a recent 2007 report about Sport and Physical Activity from the Danish Institute for Sports Studies trampoline jumping was named the fourth most popular sports activity in Denmark for kids and young people between ages 7 and 15, after football, swimming and gymnastics. Why? Because mini trampolines have mushroomed in private gardens around Denmark through the last five years. New sporting devices create new trends. The Sporting Goods industry is a highly visible industry worldwide. It is also one of the biggest industries although it is considered to be a fairly young industry. It is certainly a growing industry with increasing economic relevance and sport incorporates many industrial sectors and services. Sports brands are global and highly visible. They are excellent communicators. Physically active people are key customers to sports brands. © Rafael Marn The efforts, innovation and will of sports companies to cross borders and support the challenge of getting more people involved in sport and daily physical activity is clearly needed. Sport and physical activity is a global communicator. Globalisation is culturisation. The sporting goods industry can initiate and support initiatives locally and worldwide to build platforms for sport- and health organisations, NGO`s, communities and others for the purpose of inspiring more people to a healthy lifestyle and more sports activity. The Start-to-Run project initiated by a sporting goods retailer and Nike in 2005 and organised in Denmark by DGI, a national sports federation, is a good example of how a new way of organising and supporting a grassroot project can be successful. Within a five year period Nike and DGI expect to attract 80.000 new and first time runners and roll out a series of weekly training sessions and fitness runs in 100 cities in Denmark. Start-toRun concept is developing internationally. “We have experienced a true prosperity of new concepts and products which now have reached the middleclass mass-consumer. Weightlifting has developed from being an activity practiced by a minority of bodybuilders into being an easy accessible form of exercise at sport facilities and inside and outside the home. The affluent middleclass mass-consumers compose as a group of the population a crucial difference of, to what extent a sport activity can be regarded as popular, peculiar or natural. The garden trampoline is in relation to this an interesting phenomenon” Kasper Lund Kirkegaard, Analyst, Danish Institute for Sports Studies. Sport and physical activity – bridging the gap between knowledge and action Innovation as a key driver and motivator Through cooperation and development of new ideas, technologies and concepts the industry can create new business opportunities. The number of people employed in sports is expected to continue its growth. New initiatives and organisations will be aiming for more focus and networking within innovative, technology-based sport. Through the last twenty years the boundaries of the sports arena has been extended in a wider sense to cover also nature and urban areas. © Rafael Marn Can a ball or a javelin measure the distance when you are throwing it? Not yet – but it could create 109 WFSGI Handbook 09 Healthy Sport in a Healthy Society Healthy Sport in a Healthy Society Youth health and sport – a diverse approach is a must! Every year ISCA invites hundreds of young people from many different countries to various educational sessions. The young meet, exchange ideas and perspectives on sport across cultures and life conditions. These young people are “youth leaders” in sport and will be the future senior sport leaders and the meetings give us valuable impressions of what is important for young people. It answers questions about young people’s priorities and engagement, when it comes to sport and life perspectives in general. Very clear indications from these sessions the last years are that young people’s priorities go towards : • Participation - instead of being passive spectator • Diverse and personalised activities - instead of the traditional standardised disciplines • Relation between sport activity, culture and lifestyle - instead of an isolated sport focus. more active and healthier citizens. For most stakeholders this diverse approach means change of priorities. Doing the same, but in very different ways One of the strongest examples on this diverse, personal and cultural focus among young people is the fast developing activity “Parkour”. Parkour is the younger version of Olympic sport discipline, 3000 meter Steeplechase. The philosophy is the same: You move from A to B with some obstacles on our road. The 3000 meter Steeplechase follows very standardised rules and is performed at specific facility - the athletic stadium. Parkour is also about moving from A to B, but here you choose you own rules and facility – and the facility is often the city, using the city environment. The ideas are not that new. Originally Steeplechase was like Parkour. It was race between towns – from one church steeple to another - with all the natural obstacles along the road. However, the popularity of Parkour, the self production and the internal marketing of the activity are very precise indicators of the current trend and interest among young people. Recreational sport is about being a “Prosumer” © Saska Benedicic Tomat In other words, it means that the very competitive oriented sport disciplines are loosing attention, especially among young people. The vast majority of young people have a social, recreational and cultural attitude to their sport and are therefore not interested in following very precise rules and competitions regulation, as it is the case of many traditional sport disciplines. To reach young people in massive scale, a diverse approach from all stakeholders in the sport sector is a must. The challenge for the societies, the sport organisations and the industry is to stimulate – and of course benefit from - an increase in participations leading to In most occasions the personal sport activity is in the context of the idea of being a “Prosumer”. In this situation you are producing as well as consuming your “own” sport activity. This is the case for most grass-root sport activities. If you do not contribute – produce – there is no activity. On the other hand, you have as “prosumer”, a huge influence on the format and profile of the activity. Taking the example of the Steeplechase vs. Parkour, we can even add another important dimension – the marketing of the activity. You will find a few hundred thousands of Google hits on “3000 meter Steeplechase”, but millions when searching for the much younger “Parkour”. This added YouTube video clips of Parkour - some of them viewed by more than 10 million viewers. Knowing the profile of YouTube primary users, there is a good chance, that this is marketing directly from young people to young people – in other words the best way to inspire and motivate more young people. The future belongs to those who can describe it – and get involved In 2010 Singapore will host the 1st Summer Youth Olympic games, which will bring together 3.200 enthusiastic young athletes and 800 officials. The 1st Summer Youth Olympics will be a prestigious new event. June 2009 one hundred thousand participants are meeting in Frankfurt am Main for a five day sports and cultural week at the German International Gymnastic Festival. A month later 25,000 participants will gather at the Danish Sport for All festival in the city of Holbaek, Denmark. The two sports events, which are open to ordinary sports enthusiasts, will bring together around 125,000 participants – equivalent to the total number of participants at all the Olympic Games from 1896 to Beijing 2008. According to futurist Gitte Larsen co-operations will replace corporations in the future. Healthy sport for healthy societies is a theme with many stakeholders. And an excellent chance of creating win-win opportunities for all parties involved. People in every nation love sport. Its valuesfitness, fair play, teamwork, and the pursuit of excellence – are universal. At its best, it brings people together, no matter what their origin, background, religious belief or economic status. Kofi Annan, former UN Secretary-General. Reach out and be part of healthier societies More people will be looking for more sports products in a globalised world. User-driven innovation has challenged major global companies to reach out for their target consumers to uncover and understand new market needs. Actors in sport, academia, private sector, non-profit and non-governmental organisations, government agencies, international organisations, the media and the public are interested in the potential of sport as a tool for personal, community, national and international development. No need for analyzing consumer behaviour to understand the need for a strengthened effort to reach out and be a part of building healthier societies, based on physical activity and sports. Get involved. Be innovative and proactive. Mogens Kirkeby Msc. Sport Management and Political Science. President of the International Sport and Culture Association (ISCA). e-mail: [email protected] www.isca-web.org The International Sport and Culture Association is a non-governmental and not-for-profit international umbrella association of organisations working in the fields of Sport for All, Youth and Culture. ISCA supports development of Recreational Sport, Health Sport, and promotion of Sport for All. ISCA facilitates international Sport for All cooperation, organisational development and leadership traning. ISCA has members from more than 70 countries on five continent. Lars Wiskum is founder and CEO of SportVenture – a consultancy for the international sporting goods industry and for development projects within the fields of outdoor exercise culture. He has 25 years of experience from management, sales and marketing of international sports brands and served as board member and adviser for textile, fashion and sports companies. 111 WFSGI Handbook 09 Manufacturers Forum – Goals and Objectives Even the presidential nominees were scrutinised, so why not brands ? Manufacturers Forum Goals and Objectives P.C. Sondhi, Chairman of the Manufacturers Forum The Forum has been created this year and therefore, as we cannot produce an activity report already, we present you here the goals and objectives for 2009. A. PROPOSED FUTURE PROGRAMMES 1.We propose to have networking cocktails on the sidelines of the Messe Munchen Fair at winter ISPO where representatives of the brands & manufacturers of WFSGI can get to know each other. 2.We plan to have debates instead of committee meetings on such topics as a)Who has a tougher job, manufacturers or brands? b)Who tries to create more conditions and contracts in business? Is it the brands or is it the manufacturers? c)We plan to set up a blog on the WFSGI website in the ‘Members Only Area’ where members can share concerns & problems and also share ideas and solutions. For example, if one manufacturer has found a good quality control procedure to eliminate a particular safety concern e.g. a specific test and is willing to share it, then he could share it on this blog. Similarly if a manufacturer is having certain problems with CSR compliance, which another manufacturer can help with, then again this could be shared on the blog. B. PROPOSED FUTURE GOALS 1.To get all brands to have a uniform Code of Conduct so that if a manufacture is compliant for one brand then he is automatically compliant for all brands. 2.To persuade the brands to do intelligent and comprehensive monitoring rather than simply box ticking. In other words, CSR Managers should be able to use their discretion and not just ask for documents and policies where they are obviously not required. 3.Experience shows that CSR Managers in developing countries have enormous power, partly because of the vast span of operations of the brands. In other words, brands cannot personally monitor each and every factory in the world and they have to delegate powers to the local CSR Manager. However in many cases, there is no accountability of the CSR Managers with the result that the brands are not working with the factories but in many cases are working against them and in other cases, are actually losing good factories. Manufacturers are generally reluctant to say anything about CSR Managers because they are so scared of losing business. There has to be some accountability or independent checking of the work of these CSR Managers. 4.As mentioned above, our goal is that the brands should work with manufacturers & not against them. This involves a lot of sharing of objectives and planning for the future. Manufacturers must know what brands are going to expect from them next year and the year after so that they can plan and cost accordingly. It is seen that some brands simply issue instructions rather than entering into dialogue. We wish that the Manufacturers Forum will bring about dialogue rather than a one sided conversation. 5.Another goal of this Forum would be to persuade brands to at least once a year ensure that the buyer visits the factory alongwith the CSR Ma nager. It is only fair from a manufacturer’s point of view that they should visit together so that the buyer at least knows what is being asked of the Manufacturer by the CSR Manager. 6.Some of the manufacturers today are almost as big as some of the brands and some of them are emerging as brands in their own rights. However we are not perhaps getting a sense of equality. We need a polite and humane approach from the Brands and the Manufacturers Forum would strive for this. The days of “Sign this or else….” should now be long gone and instead we should be saying “How can we, together, achieve this goal”. C. HOPEFULLY NOT A STRAINED MARRIAGE ?! Manufacturers and Brands are almost like a married couple who certainly would have their disagreements and tensions from time to time but who both rely heavily on each other and definitely become stronger working together in harmony. Even the presidential nominees were scrutinised, so why not brands ? P.C. Sondhi, Chairman of the Manufacturers Forum and Managing Director, F.C. Sondhi and Co By the time this Handbook is written, the new President of the United States will have been declared and probably will be on the verge of being sworn in. However, to get to that situation, he has had to go through intense scrutiny of his days as a child, as a student, as a young man, as a parent and as a politician. Everyone now accepts this as a fact of life. important change in the whole setup and it is this change which has highlighted the importance of the manufacturers to the brands. If the manufacturers do not stand the intense scrutiny of the public, then it is not the manufacturer that gets a bad name, but it is the brand, and this is very cause of the genesis of the Manufacturers Forum. In the same way, our brands also come under intense scrutiny by the public. In the old days, a Nike or an adidas product was simply that, but today these brands are expected to act in a corporately responsible manner, not only with regard to the safety of the products produced and their impact on the environment, but also where and how they are produced. In other words people also want to know whether the factory in which these were produced was environmentally friendly and whether they look after their employees well and whether good “health and safety” practices are adopted in those factories. We cannot have a world where brands just sell with impunity, irrespective of how and who makes the product. “The good old days ?!” Well, no one wants to cast a judgment on whether they really were good old days or not, but perhaps a slower world was less demanding and less stressful. However, one notable feature of that world was that brands very often used to have their own factories to manufacture the products which they sold. In other words, there was an inextricable nexus between the brand and the manufacturer. Indeed they were one and the same. With the shifting of manufacture to offshore destinations, in the short run, many brands continued to own the factories. However, due to various reasons including cost, control and cultural and legal problems, brands started to buy from manufacturers rather than owning the factories themselves. It is this latter development which has caused a most Clapping with one hand In a similar way, manufacturers can manufacture, but they need someone to sell to. Obviously the brand is of prime importance to the manufacturer. It is quite clear then that we cannot have brands without manufacturers. Similarly we cannot have manufacturers without brands to sell to. This inter-dependence is key and out of this it is critical that we achieve a win-win situation. For example, if the manufacturer tries to dictate his terms and the brand is unable to sell, that would be a win-lose situation for the manufacturer – brand respectively. Conversely if the brand tries to impose numerous conditions on the manufacturer without understanding his concerns, this will be a win-lose situation for the brand − manufacturer respectively. What we all have to strive for is a win-win situation where both manufacturers and brands can derive the maximum benefit with the maximum peace of mind and at the same time strive towards a better world. Positive & negative synergy This inter-dependence is like any other unit, whether it is a family unit or a corporate unit where many people are working. Inter-dependence can be positive or negative. If people in a company are all vying with each other and tugging in opposite directions, then ultimately the overall success of the company will diminish. Similarly in our Manufacturers Forum we feel that the reason we need it is first of all because brands cannot do anything on their own today without the support of manufacturers, but at the same time we need a positive synergy so that we can move forward swiftly to satisfy the needs and requirements of the modern world and the modern consumer in particular. 113 WFSGI Handbook 09 A decade of achievements : “must do” to “right thing to do” A decade of achievements : “must do” to “right thing to do” A decade of achievements : “must do” to “right thing to do” Now the message will be conveyed through Lions also. “Smart thing to do”. External monitoring SGFI has conducted over 120000 visits/revisits in the last 10 years. 3300 stitching locations have been registered comprising of 15000 workers. Satish Wasan, Chairman of the SGFI (Sporting Goods Foundation of India) SGFI was started a decade back by volunteer members from the Indian Sports Goods Industry with an objective to address the child labour issue. Over the period of time with experience and learnings drawn because of close contact with the community, SGFI’s vision was broadened and we started looking at root causes like education, health, social security and women empowerment. The strategy followed was bottoms up approach which meant understanding what is required at the community level and then devising methodology, action plan and activities addressing the needs of the community. To take this agenda forward, support was extended by UNIDO-CDP in the form of capacity building, knowledge linkage, monitoring and evaluation. This is part of Jalandhar’s social responsibility which we define as SERB (Social and Environmental Responsibility of Business). Education While surveying each house as to why the children were stitching soccer balls, we came across one house where school bag was lying and the child was also at home. When asked, why has he not gone to school, his reply was, I did not do home work and if I don’t do home work, the teacher scolds me. Next house, we saw the same situation. The books were there but the child had gone out in the street to play. When contacted, this child also said the same i.e. did not do home work given by teacher because father is illiterate, mother is illiterate. Third house, Tuition center sight given to all 75). Besides this, free medical check ups are also done once every week at one of the 30 tuition centers run by SGFI. same situation, till we came across a young girl about twenty years old who looked educated, and asked her if it is possible for her to help children with their home work in the afternoons so that they go to school the next morning. She agreed saying yes I help my younger brother with his home work and he is quite regular to school. Then we went to a temple in the same locality and found out that community members came for prayers only in the morning hours or in the late evening hours and whole day the premises are not used anyway. We requested the priest and he agreed to let the children and the teacher sit in premises of the temple and do their home work etc. The tuition centre started working and these kids started going to schools not afraid of the teacher. Within next seven days, the temple priest of next locality comes to us and praises this way of encouraging kids to go to school. Another teacher was found, another tuition centre started functioning and today we have 30 such tuition centres and we have been able to show the way to school to as many as 1050 children. REACH (social responsibility movement initiated by wives of SGFI members) Tuition center Self help groups (SHG’s) – women empowerment SGFI works closely with 3000+ families covering about 15000 home based football stitchers. Most of these workers were trapped under the vicious circle of debt & high interest rates. They have no insurance or savings to cover themselves from unforeseen circumstances. SGFI has in the last 2 years created 47 SHG’s comprising of 20 families each thereby empowering 900 families covering about 4500 people. These SHG’s are run by women who are contributing equal amounts in a bank. The money so collected is being used for their insurance, micro finance needs & income generation schemes. SGFI plans to create further 20 SHG’s by the end of 2008 thereby covering 8500 + workers. Had these tuition centers not opened, the parents, having no patience and having no educational background themselves would have pushed their kids into child labour but NO; the tuition centers helped these kids to go to their respective schools instead of being pushed into child labour. SGFI has started skill mapping of these SHG to determine their other skills so that income generation schemes relating to their skills can be brought and they are encouraged to further educate their children and don’t feel the financial burden of their education. Under the NCLP (National Child Labour Project) of Govt. of India SGFI was managing four schools. Having seen our performance the Government of India has entrusted the management of four more schools to SGFI making a total of eight schools under our management. This is a big pat on our back. Healthy mind healthy body (health project) Having seen the working of Sports Goods Foundation of India, Lions Clubs International nominated the undersigned as District Chairperson of Child Labour in Lions District 321-D because we have moved from “MUST DO” to “RIGHT THING TO DO”. SGFI conducts 1 free medical camp every 2 months for its football stitchers & their families where free medical check ups are done and medicines are distributed. So far over 40 such medical camps have been conducted thereby benefitting over 10000 people. Medical camps conducted are for General, ENT, Dental, Orthopedic and Eye (last year in the eye surgery camp 75 cataract operations were performed and gift of SGFI has brought together wives of exporters who have volunteered for community welfare in Jalandhar. Under this project 8 schools are involved who collect clothes, books etc. 23 collection centers have been opened where such material is collected and distributed to the needy people. 160 distribution drives have been held in the past one year. CFC – common facility center SGFI has in the past 1 year started R&D projects to increase productivity of the industry namely as : 1. MACHINE STITCHED FOOTBALLS : 6 football stitching machines were procured and workers from SGFI member factories are being trained daily for stitching footballs on machines. Members have also started procuring machines and few of them have completed orders for machine stitched footballs. 2.TABLE SCREEN PRINTING : For faster and mass production of footballs SGFI is developing a table for screen printing of multiple football panels at a time. 3.MULTIPLE CUTTING DIE : To save time and increase production, a multiple cutting die is being developed to cut many panels in one stroke of the cutting machine. 4.ROLL LAMINATION MACHINE : A lamination machine is being developed to laminate and dry one full roll at a time. Medical camp 115 WFSGI Handbook 09 A decade of achievements : “must do” to “right thing to do” A step moving from home based “stitching units” to “stitching centers” A few SGFI members have established their own stitching centers outside of their factories. They have shifted their production from home based stitching units to their stitching centers. Other SGFI members are in the process of opening up collective stitching centers. IMAC – Socially responsible entrepreneurship IMAC – Socially responsible Members of the Sports Goods Foundation of India Dr. Nouman Idris Butt, Director, Capital Sports and representing SCCI (Sialkot Chamber of Commerce & Industry) Akay International. Anandco Sporting Corporation. Beat All Sports. Brightway Exports International Cosco (India) Ltd. F.C. Sondhi & Co (India) P. Ltd. Freewill Sports Pvt Ltd. Hans Raj Mahajan & Sons. International Legguard Works. Kamal Brothers K.N. Sports. Legend International Mayor & Co. Pioneer Sports Works P. Ltd Self help group entrepreneurship Premsons Plastics Pvt Ltd. R.K. Mahajan Exports Facilitating social responsibility initiatives Ranson Sports Industry. SGFI has started strengthening silent social responsibility of its members. Informal philanthropic activity is being streamlined in a formal way. SGFI has also organized a team of experienced professionals to help its members for setting up of a “trust” to conduct social work in a formal manner keeping in view the needs of the football stitching community. Sakay Traders Contact Us: Shant Sports. Mr. Satish Wasan Chairman Mr. Ravi Purewal Project Director 22 – A Tagore Nagar, Opposite Hotel Regent Park Jalandhar – Punjab – 144002 India Tel : +91-181-2203777 Mobile : +91-92160-20377 Email : [email protected] Website :www.sgfi.org Sports Syndicate. Sanspareils Greenland’s. Sharma Exports Soccer International. Sports Specialist. Savi International Universal Sports Industries. Wasan Exports. Wintex Exports. In the endeavours of addressing the child labour issues in the soccer ball industry in Sialkot, (Pakistan), the Sialkot Chamber of Commerce & Industry, in collaboration with other stakeholders, has been instrumental in establishing an organization called IMAC (Independent Monitoring Association for Child Labour). IMAC has proven to be a reliable successor of the ILO-IPEC’s work place monitoring programme which was set up in early 1998, as a part of ILO-IPEC’s Programme on the Elimination of Child Labour in the Soccer Ball Industry in Sialkot, Pakistan. Prior to the IMAC, the work place monitoring in the soccer ball industry was undertaken by the ILO-IPEC. In March 2003, ILO-IPEC decided to phase out of the programme and handed over its monitoring functions to IMAC. Since then, IMAC is carrying out the work place monitoring functions with the same fervor and zeal as it was done under the auspices of ILO. IMAC’s mandate is to provide work place monitoring services against child labour as well as the basic working conditions at work places. The manufacturers of hand stitched balls voluntarily join IMAC’s Child Labour Elimination Programme through the Sialkot Chamber of Commerce & Industry (SCCI). They pay the joining fee as well as the monitoring fee, on pro rata basis, to the SCCI. IMAC has signed a five years contract with SCCI wherein SCCI has committed to provide necessary funding to the IMAC. SCCI uses two sources to arrange the necessary funds for IMAC: 1) contribution of the participating manufacturers in shape of joining fees and pro-rata payments as per the number of balls produced every year, and 2) contribution from the TDAP agreed in the 36th meeting of the Board of Administrators of the Export Development Fund. Under this provision the TDAP had committed a fund of Rs: 30 million for a period of five years. Socially Responsible Entrepreneurship in Sialkot The child labour programme has helped the soccer ball industry, in particular, and the other in- dustries in general, to be more socially responsible. Although, even before the introduction of this programme, children were not the need of the industry. A manufacturer was paying the stitching wages on per ball basis without having any consideration as to who has stitched a ball. However, there was not much awareness about the menace of child labour among the stitching families and the sub-contractors. The programme has not only brought in the consciousness about the rights of children, but it has also enlightened the industrialists in Sialkot for better working conditions for their workers and in turn improving the quality of their products. This would definitely help the industry to face the future challenges of WTO. The corporate sector in Sialkot has taken the lead to solve their problems on self help basis that range from improving the communication and drainage infrastructure in the city to constructing their own airport, which is a unique example in whole of Asia. Monitoring Progress During Past Three Years Year 2006, was a Soccer World Cup year. During the World Cup Year, soccer ball stitching activities are quite intensified. Accordingly, IMAC also intensified its monitoring visits during 2006. Earlier, during 20002005, IMAC monitors had undertaken, on the average, 1193 monitoring visits per month. However, this figure was increased to 1,588 per month during 2006. This was done by increasing the working hours per week and also sometimes carrying out monitoring visits on weekends. IMAC also engaged two monitoring interns during 2006 that also helped to increase the number of monitoring visits. IMAC maintained their intensified monitoring visits during the following years. During the past three years, IMAC has carried out 61,351 monitoring visits to the average 2,611 stitching centers of about 93 soccer ball manufacturers. In this duration, 21 more soccer ball manufacturers voluntarily joined the Child Labour Elimination Programme. As such, each of the registered centre/ work place has been visited at least 23 times during this period which means IMAC maintained the lap time of 7 weeks. Working Conditions in the Stitching Centers Monitored by IMAC In addition to monitoring the work places for child labour, IMAC also looked at the conditions prevailed at the work places visited. During these visits the shortcomings identified were communicated to the respective manufacturers and were followed up for rectifications. All 117 WFSGI Handbook 09 IMAC – Socially responsible entrepreneurship the shortcomings identified by the IMAC monitors so far have been rectified by the respective manufacturers. Generally IMAC monitoring teams try to assess the physical conditions at the stitching centers such as sufficient sitting space for stitchers, light, sitting arrangements, ventilation/ air circulation, drinking water availability and toilets. However, while collecting the information cultural norms and social aspects are kept in view. Generally three categories are used for these assessment : 1 : Excellent/ More than sufficient 2 : Good/ sufficient; 3 : Poor/ insufficient/not available. The stitching centers are classified into two types i.e. Purposely Built Centers and others. The Purposely Built Centers are monitored for two additional conditions i.e. Fire Extinguisher and First Aid facilities. IMAC regularly updates its database and the respective monthly progress reports covering each and every aspect of its monitoring, and regularly publishes the results on its website for public viewing/ information. Criticism on IMAC IMAC came into existence and became operational in March 2003. It had taken over monitoring functions from ILO-IPEC. ILO-IPEC, being an international organization and a UN specialized body, has its own standing, credibility, culture and norms. IMAC was a new born organization. In order to reach the maturity and credibility level it was expected of, it required time and constant support from Management of IMAC As per its Memorandum & Articles of Association, IMAC is managed by a Board of Governors. The Board of Governors has representation of almost all the stakeholder i.e. Government, Workers, Employers & Business Community, international community, civil society organizations i.e. NGOs and academic institution. Out of the 14 members of the BOG, only 4 belong to the soccer ball industry. The Memorandum & Articles of Association of IMAC requires its BOG to meet at least once in 15 months. During the past three years, the BOG of IMAC held 5 meetings and dealt with the usual management as well as the policy issues. IMAC – Socially responsible entrepreneurship all the stakeholders, particularly the international organizations that had contributed in its establishment. Among these organizations, ILO-IPEC had not only the responsibility of supporting it but also of nurturing it as it played a unique catalytic role in its conception and realization. It was, apparently, the first experiment of ILO-IPEC to sustain the efforts put in over a period of five years to address the issue of child labour in the soccer ball industry in Sialkot. Therefore, it was not merely an action programme of IPEC, it was rather making of a new era to institutionalize and indigenize the achievements made through the unique partnership of business community, international organizations, NGOs and government functionaries. During its initial years, it sailed quite smoothly and developed an environment and culture that made it credible and it was seen as a trustworthy monitoring organization by the international community concerned about the issues of child labour and the working conditions of workers in the soccer ball industry. However, a significant event that took place in 2006-2007 questioned the credibility of IMAC. This was the decision of Nike to cease business with its prime supplier in Pakistan i.e. Saga Sports. It had great repercussions for the workers of Saga Sports as well as IMAC. Nike’s decision put a great pressure on IMAC’s efficacy and credibility. In this scenario, ILO offered to do an independent evaluation of IMAC. In February 2007, two international experts carried out an independent assessment of the working of IMAC. The Draft Report of the ILO Experts is placed at Annex-B. The two experts declared that IMAC’s Monitoring System was of very high standard. However, they made recommendations to broaden the scope of IMAC beyond soccer ball to other industries and also monitor for the social compliance along with the child labour issues. They also suggested for IMAC to be financially independent in order to enhance and ensure its credibility as a monitoring organization. For the purpose the international consultants recommended to establish an endowment fund for IMAC. The report of the ILO Independent Evaluation was presented in a multi stake holder conference jointly organized by ILO and the Government of Pakistan in Islamabad on 21-22 February 2007. The outcome of the confe- rence had been termed as “Sialkot Initiative”. ILO is coordinating activities with the related stake holders for translating various recommendations of the conference into action. IMAC’s Child Labour Elimination Programme is a voluntary programme and the soccer ball manufacturers join it at will on the basis of their needs and requirements. Therefore, if anything happens at the work places of manufacturers who are not part of the IMAC’s programme, IMAC can not help it. Moreover, IMAC is not a statutory body. Its role is only advisory and supportive. Since monitoring work places is an activity and not 24 hours surveillance, therefore, IMAC basically informs the respective manufacturers to rectify problems it finds out during its monitoring visits and recommends them to improve the working conditions at their work places. IMAC also follows up with the manufacturers about the implementation of its recommendations. Therefore, as far as the failures of IMAC were concerned, this was the only occasion when some corners cast their doubts about the credibility of IMAC. Otherwise IMAC enjoys the trust of its clients i.e. soccer ball manufacturers and the international stake holders. Successes of IMAC & its importance for the Export Industry of Sialkot Before the inception of IMAC, ILO-IPEC’s Child Labour Elimination Programme only concentrated on the issue of child labour. After taking over from ILO-IPEC, IMAC not only continued this programme with the same zeal and fervor, rather made it more authentic by adding the working conditions in its monitoring list. This gave a lot of assurance to the international buyers about the status of the working conditions in the soccer ball industry. This could be evident from the fact that, despite the big odds of price competition with China and the technological changes in the soccer ball production in terms of mechanization, Pakistan’s exports of soccer balls increased from 36 million balls in 1998 to around 100 million balls in 2006-2007. The success of IMAC could also be gauged from the fact that while evaluating the IMAC the two ILO experts, inter-alia, recommended to expand the mandate of IMAC to core labour standards and standards on Occupational Safety and Health. Importance of IMAC for Export Industry In the present day export business scenario, the importance of the CSR has become very critical. The consumer in the developed world has become so conscious about it that any hint of the violation of CSR or exploitation of workers can have serious consequences for producers/ suppliers. Therefore, the international buyers always look for such assurances before buying any product especially from developing countries. In this regard, a continued role of IMAC has become very important. FIFA does not issue licenses to soccer ball manufacturers in Pakistan unless they become members of IMAC. Similarly international buyers, most of the time, confirm the membership of a manufacturer with IMAC before making any deal. International media has also become very conscious of the presence and role of IMAC. A recent event that took place in Switzerland in April 2008 is a testimony to this fact. Bank Credit Suisse – the second largest bank of Switzerland, through a sourcing company in Switzerland, made a deal with a supplier in Sialkot for the supply of 200,000 balls. This supplier was not a member of IMAC. A Swiss TV investigated the matter and found out that since the respective supplier M/S Sunflex was not a member of IMAC, therefore, its production could not be ensured as child labour free. The further investigation of the Swiss TV which was done by their journalist in Sialkot confirmed their stance. As a result the Bank Credit Suisse had to donate one million Swiss Francs to UNICEF as a kind of compensation. FLO-CERT GmbH is an independent International Certification Company offering Fair-trade Certification services to clients in more than 70 countries. In Sialkot, Pakistan they have their certified producers of soccer balls. In order to ensure that their certified producers in Sialkot are socially benign, FLO-CERT relies on IMAC’s monitoring and for the purpose has signed a Cooperation Agreement with IMAC. All the above stated facts show that the importance of IMAC, especially for the soccer ball industry is increasing day by day. As such its continued operations in Sialkot have become a necessity in order to continue and promote the soccer ball exports from Pakistan. The programme has not only brought in the consciousness about the rights of children, but it has also enlightened the industrialists in Sialkot for better working conditions for their workers and in turn improving the quality of their products. 119 WFSGI Handbook 09 Why a Labour Contract Law In china? Why a Labour Contract Law In china? Chang Hee Lee, Senior Specialist on Industrial Relations and Social Dialogue ILO Beijing Office Introduction The Labour Contract Law (hereafter LCL) has come into effect since 1st January 2008. During the legislative process, the LCL created not only very heated debates among various stakeholders at home and abroad but also unusually high degree of public reaction. When the Chinese legislature, the National People’s Congress, invited public comments on the first draft LCL, it received more than 190,000 comments. Opponents of the LCL argued that the LCL would significantly increase labour costs and impose rigidity on businesses in China, harming competitiveness of Chinese industries. Proponents of the LCL argue that the LCL will offers better protection for workers’ legitimate rights and create a balance between workers and employers for stable labour relations at the workplace. Historical and Social Context Both sides of the debate would not disagree on the fact that the introduction of the LCL marks a major shift of social and labour policy orientation of the Chinese government in particular and society in general. Since the economic reform in late 1970s, China has achieved unprecedented economic success not only in terms of GDP growth but also in terms of pulling out hundreds millions of its population from poverty. However, the historic success of Chinese economic © Nerijus Dilba - Fotolia.com development did not come without prices. While rapid deterioration of the environment threatens sustainable development in China and elsewhere, rising inequality has threatened social stability. At the same time, there were widespread abuses of workers’ basic rights, arising from inadequate legal framework governing employment relations and its enforcement, and also unbalanced power relations between workers and employers. It is therefore not a surprise that the number of labour disputes has increased at annual rate of 25-45% for the last decade, two or three times higher than the impressive GDP growth in China. Rising inequality, widespread abuses of workers’ basic rights and exploding number of disputes were seen as a serious threat to social stability – if unchecked, it can even undermine social fabric necessary for sustained economic growth. In addition, there was growing call from international community for the rule of law in labour relations, which was emphasized by various corporate social responsibility (CSR) initiatives. This sets the social and economic context for the introduction of the LCL. What the LCL attempts to do Broadly speaking, the LCL aims to : 1. ensure all employees have labour contracts in accordance with legal requirement ; 2. increase costs of employers’ non-compliance with labour laws and regulations ; 3. create new balance between short-term flexibility and long-term stability/security of employment relations at the workplace, and ; 4. bring new balance between workers and employers by encouraging consultation between workers’ representatives and employer on issues of mutual concerns. Before the implementation of the LCL, it was not uncommon that employers often did not establish written labour contracts with employees. w w w. l a c o s t e . c o m Why a Labour Contract Law In china? Even when the contracts were signed, contents of labour contracts were not up to the statutory labour standards, exposing workers to all types of abuses by employers. The LCL makes the signing of formal labour contracts in full compliance with legal requirements mandatory. Failure of employers’ signing written labour contract in certain time limit will result in either financial sanction of payment of twice wages for the period of work performed without written contract if the contract was not signed one month after workers performed their work, Article 82 or having to give the employee concerned a non-fixed term contract if written contracts were not signed one year after the actual employment relationship was established (Article 14.3). As shown in the above case of penalty against non-singing of lawful labour contracts, the LCL intends to increase significantly the costs of employers’ non-compliance with labour laws and regulations. To take a few examples, various types of bondage labour (Article 84), failure of paying wages in timely manner (Article 85.1), failure of paying at least mandatory minimum wages (Article 85.2), failure to pay economic compensation for termination of labour contracts (Article 85), termination of labour contracts in violation of the LCL (Article 87), unlawful restriction of personal freedom to compel a worker to work (Article 88) entail various administrative and financial sanctions. Together with better enforcement of lawful labour contracts, higher costs of employers’ non-compliance with labour laws and regulation are likely to improve the rule of law governing employment relations in China. brought by the LCL attempt to create new balance between short-term flexibility and longterm stability/security of employment relations at the workplace. Finally, the LCL intends to promote and mandate consultation with workers’ representatives and trade unions at the workplace on the issues of mutual concern. Article 4 of the LCL states “when an enterprise formulates, revises or decides on rules and regulations or material matters that have a direct bearing on the immediate interests of its workers concerning remuneration, working hours, rest and vacations, occupational safety and health, insurance and welfare, employee training, disciplinary actions or work quota etc, it should discuss with the workers’ representative congress or workers’ congress”. There are other Articles obliging employers to have prior consultation with workers’ representatives or enterprise unions regarding mass redundancy (Article 41), unilateral termination of labour contracts (Article 43). Indeed, the Chapter 5 is entirely devoted to promotion of collective bargaining. The LCL marks a major shift of social and labour policy orientation of the Chinese government in particular and society in general. The LCL also intends to bring significant changes to norms governing various types of labour contracts. Under the LCL, employers should convert fixed-term contract into non-fixed (or open ended) contracts if either an employee has been working for a consecutive period of no less than 10 years or consecutive conclusion of two fixed term contracts, provided that the worker concerned wants to have a non-fixed term contract. It is a sharp departure from the previous legal norm which allowed employers to hire workers on one or two fixed-term contracts for virtually any duration. A consequence was unusually high incidence of fixed term contracts at the workplace in China. In turn, this has led to high turnover, lack of committed workforce and no incentive for training, potentially harming a long term productivity potential of industries in China. The changes © Goran Bogicevic - Fotolia.com w w w. l a c o s t e . c o m Why a Labour Contract Law In china? Federations Committee – Activity Report 2008 Implications of LCL for businesses As seen above, the LCL brings a wide range of changes to legal norms governing employment relations and collective industrial relations in China, which will have significant implications for businesses in managing human resources and labour-management relations in China. Some have expressed their concern that FDI will move to other countries with lower labour costs because the LCL will impose higher labour costs on enterprises. The LCL is likely to bring some modest increase of labour costs for law-abiding companies – for example, due to newly created obligation of economic compensation at the time of terminating labour contract – and indirectly – for example, likely costs associated with more careful recruitment process and obligation to convert fixed-term contract into non-fixed contract. It is likely that the more highly developed human resource management companies have, the lower costs associated with the LCL implementation would be. For non-complying employers, the LCL will bring steep cost increase. Beyond legislative dimension, we also need to look at rising labour costs and better legal framework from longer term changes in Chinese society. Since 2003, many industrial cities in China have begun to experience labour shortages, initially limited to skilled labour but recently affecting unskilled labour as well. The labour shortage is associated with two factors: changing supply-demand in China’s labour market due to the uninterrupted high economic growth for the last three decades, and; demographic changes due to the one child policy, which is predicted to make the size of the labour force in China to begin its decline after 2015. These changes are taking place in conjunction with overall policy shifts designed to upgrade China’s industry from low value added production to high added production and to balance economic efficiency with social justice. All the changes – labour laws, labour markets and government’s economic and social policy – imply that competitive edge of enterprises operating in China should be more than low labour cost advantages. If they want to remain competitive in China, enterprises need to enhance flexibility of work organizations by multi skilling workers, to improve productivity by creating environment for working smarter instead of just working harder, to nurture commitment of employees by innovative remuneration and career development schemes, and to build partnership with trade unions or workers’ representatives in managing changes at the workplace. © Kajzer - Fotolia.com It is important to note that new labour standards introduced by the LCL are by no means higher than neighboring developing countries, not to mention developed economies. Many of new provisions – for example, rules on converting fixed-term contract into non-fixed term contract – have been in place in many neighboring Asian countries including Viet Nam. In a sense, the implementation of the LCL signals that China is catching up with prevailing legal norms governing employment relations in developing and developed countries – nothing more, nothing less. The LCL represents significant improvement of labour legislation in China, though it may not be fully compatible with international labour standards governing labour relations. The LCL creates new rules of the game for enterprises operating in China regarding managing human resources. Evidence so far seems to indicate that the government authority is taking seriously full implementation of the LCL. And the implementation guideline of the LCL adopted in September 2008 will certainly help smooth enforcement of the LCL. Whether firms can maximize benefits from new legal framework will largely depend on whether they can successfully adjust and develop human resource management strategies and labour relations policies based upon fairness and partnership within the parameter of the new law. Federations Committee – Activity Report 2008 Tom Cove, Chairman of the Federations Committee 2008 marked the first year for the WFSGI Federations Committee, which was established by President John Larsen as a new initiative when he took office. The Committee’s initial focus is to help national and regional Federations serve as a conduit of information to their individual members. There are many significant programs, services and information sources generated by WFSGI activities available to individual federation member companies that are currently underutilized. 2008 brought many significant legislative and regulatory amendments to the sporting goods marketplace. In 2008, the Federations Committee identified the work of the CSR Committee as an area that could be highlighted. The Committee identified the need to create an information exchange protocol through which federations could share and promote best practices to their members. Specifically, the work of the CSR Committee on issues such as Restricted Substances Lists, energy efficiency, waste management and labor relations will be greatly enhanced if Federations can drive this information throughout their national industry groups. The Federations Committee is working with WFSGI staff to utilize the WFSGI website for such information exchange, and to publicize and promote the value of same throughout the global industry. The Federations Committee also worked with the International Trade Committee to create aware- ness for and participation in its work. 2008 brought many significant legislative and regulatory amendments to the sporting goods marketplace. Two areas of great significance are product standards and safety regulations, and international trade policy. In the first case, WFSGI has developed a databank of applicable product standards. Federations are providing information and documentation from their respective countries/regions to populate this databank. Additionally, Federations are working to provide legislative and regulatory language and analysis to WFSGI for the same purpose. In 2009, detailed presentations on the U.S. Consumer Product Safety Improvement Act (CPSIA) and the European REACH program will come on line and be made available to WFSGI members. The Federations Committee is further working with the International Trade Committee to conduct information seminars on critical issues. WFSGI will present at the 2009 ISPO workshops on CPSIA, REACH and possibly international trade policy, all supported by members of the Federations Committee. The Federations Committee also explored how research products produced or commissioned by national and regional federations can be appropriately shared within the WFSGI family. The Committee would like to create an equitable process to publicize and facilitate distribution of the many excellent sports participation and market research products developed at the national level. 125 WFSGI Handbook 09 The Sport of Politics The Sport of Politics SGMA, the business trade association of the sports products industry is dedicated to providing manufacturers, retailers and interested parties with actionable research in key sports products markets. Our knowledge-based consulting services help you strategically use data, information and research to manage your business. Leveraging Sporting Goods industry assets to promote a public policy agenda. Bill Sells, Vice President of Government Relations, SGMA - Sporting Goods Manufacturers Association SYNDICATED AND CUSTOM RESEARCH SGMA provides unique insights for your company by turning data into insightful custom studies, projects and presentations. • • • • • Hockey Trend Report • Consumer Panel Reports • Custom Consumer Research Specialty Running Store Audit Athletic Footwear Industry Shipments Report Team Dealer Trend Report Team Sports Industry Shipment Reports MARKET SEGMENT REPORTS SGMA market reports provide the most complete and concise view of critical market segments. • State of the Industry Report • Sports Participation In America • U.S. Trends in Team Sports • Tracking the Fitness Movement • Special Topic Reports • Industry Shipments by Category PARTICIPATION REPORTS These reports measure playing interest in more than 114 competitive sports, fitness activities, outdoor endeavors, and recreational pursuits. • Single Sport Participation Reports • Sports Participation In America • Topline of Sports Participation in America • Participation Studies by Major Sport Categories INDUSTRY REPORTS SGMA industry reports highlight the key trends in the industry, with statistical information on industry sales and outlooks for major product segments. • Industry Sales by Segment • ActiveWear and Team Color Cards • Canadian Market Reports by Trendex European Market Reports FINANCIAL REPORTS Discover the financial state of the domestic sporting goods industry based upon actual financial results of sporting goods companies. • Financial Performance of the Sporting Goods Industry SGMA, the first choice for sports and fitness research. For a consultation on our full range of services please contact: Gregg Hartley, SGMA Vice President at 561.427.0663, [email protected] Bill Lawliss, Director of Business Development at 802.372.9099, [email protected] View and Order publications online at www.SGMA.com or call VJ Mayor at 202.349.9421 SGMA serves its members in many ways and like all trade associations our goal is to benefit our member’s businesses. For years our three primary member benefits were the trade show, research and public policy. With the trade show environment changing, research and public policy are more critical to delivery of member value. SGMA research provides the U.S. industry with information on trends to help plan for the future. SGMA public policy generates demand for member products through promotion of physical activity and lowers members’ costs of getting products to the consumer by pursuing favorable trade policies. Delivering results $250 million in equipment purchases and more to come In 1999 SGMA sought funding for quality physical education in schools to help combat the disturbing increase in childhood obesity in the U.S. To get the attention of Congress, SGMA recruited three celebrities; two athletes and Miss America. While there were not immediate results that initial effort has blossomed, with over 100 athletes working with SGMA to deliver more than $500 million in funding for the Physical Education Program (PEP) since 2002. The money is split between training physical education teachers in innovative P.E. methods and purchasing fitness/ sports equipment. PEP has resulted in more than $250 million being pumped directly into the U.S. sporting goods and fitness equipment industries. Not to mention the residual effect of cultivating a new generation of physically active consumers. Over the past 10 years SGMA has worked to increase its visibility in Washington and enhance the industry’s image among U.S. decisionmakers. In the past year alone, SGMA brought in 18 athletes to meet with Congress on National Health-through-Fitness Day, lined-up former professional (American) football players to coach the Congressional Football Team, loaned equipment for Congressional Football, Baseball and Basketball games, co-hosted Congressional health and fitness events, provided celebrity-athletes as star witnesses for Congressional hearings on obesity and health and supplied athletes for press conferences on youth sports. SGMA has used the equity from its support of sports & fitness in Congress to lead the effort to provide consumers with a tax incentive to offset costs associated with physical activity. The Personal Health Investment Today Act (PHIT) would lower the cost of participation in sport and fitness activities by making them ‘tax free’. PHIT would cover everything from youth and adult league registration fees to health club and fitness center dues to sports equipment needed to participate on teams to fitness equipment purchased for the home. The manufacturer sells its product to the retailer at wholesale, the retailer sells the product to the consumer at full price and the consumer submits the receipt to get a discount of up to 45 percent of the product’s price. If passed PHIT could direct millions of dollars into the sporting goods and fitness industries. Broad Support for Physical Activity It is no secret that physical activity is a key component in the battle against heart disease, cancer, arthritis, diabetes and other chronic illnesses. Politicians engaged in resolving our health care issues are natural allies. However, there are numerous other supporters of physical activity. A review of the list of PEP and PHIT supporters reveals a large number of participants in Congressional sports events and members of the Congressional Fitness and Congressional Youth Sports Caucuses. Combined these physical activity advocates make up more than a third of Congress. By working with national political leaders and our partners in Washington, DC to raise awareness on the importance of physical activity to a healthy lifestyle, SGMA is positioned to promote policies that will lead to a more active America. Greater participation in sports and fitness will increase demand for SGMA member products. The impact of SGMA’s involvement in Congressional sports, hearings and events related to health is not limited to just physical activity policies; the Association relies on the good will we create to pursue other policy objectives including trade. 127 WFSGI Handbook 09 The Sport of Politics Reducing costs through trade policies SGMA has a broad and ambitious trade agenda, focused on reducing the cost of bringing sporting goods and fitness products to market. Our advocacy efforts on trade policy focus on lower duties/tariffs, reasonable regulation of trade and increased access to foreign markets. U.S. manufacturers as a whole share SGMA’s concerns on trade and SGMA often works within coalitions representing the larger group to more effectively achieve its trade policy objectives. However, there are also industry and product specific issues which require SGMA to work independently; it is in these instances that the association uses its reputation with policy makers to accomplish our trade goals. National / Regional Federations members of the WFSGI Maximizing resources through innovative approach SGMA does not play the money game in Washington. We do not make contributions to campaigns or parties and we do not host political fundraisers. SGMA does use the equity generated by bringing famous athletes to meet directly with politicians. We also want to encourage sports among our nation’s decision-makers and providing equipment to make sports a more enjoyable experience achieves this. Politicians are like most people; they enjoy sports. We recognize those in Congress who live active, healthy lifestyles and participate in sports and they recognize us for making active lives and sports more enjoyable. Politicians may be public figures but many are fans of sports, we are fortunate to represent a popular and greatly appreciated industry. The nature of our products give us a great advantage over other interests seeking to promote their agenda: We just have to use the resources that we often take for granted. SGMA is proud to play this role in Washington and throughout America. It is gratifying to know that our actions in support of sport and fitness help promote our physical activity and trade agenda. However, even without our public policy goals, SGMA would still be a huge advocate for physical activity because health is far too important to sit on the sideline! Bill Sells speaking to U.S. Congressman Jeff Flake in the dugout during the 2008 Congressional Baseball Game In 2006, SGMA sought relief from an outdated duty on certain inflatable balls. The import duty was designed to level the playing field between domestic and overseas production of these balls. With no domestic production, the duty was nothing more than an unnecessary tax on these products. SGMA worked with a few Congressional athletes personally familiar with these balls to help get the duty temporarily suspended. The effort was successful and the support of SGMA’s Congressional athletes didn’t hurt. Let’s be honest, Congress will not make decisions based on SGMA support for their athletic pursuits or because we brought a hometown athlete to their office to discuss physical activity. However, the relationship developed through these casual encounters and athlete visits on physical activity portray the organization in a very positive light. The favorable opinion of the industry allows SGMA to deliver its trade message to a more receptive audience. Over the past 10 years SGMA has worked to increase its visibility in Washington and enhance the industry’s image among U.S. decision-makers. National / Regional Federations members of the WFSGI One type of full membership of the WFSGI is National or regional organizations. It means organizations constituted and recognized as national or regional sporting goods governing bodies in any country throughout the world. AMERICA What is SGMA? The Sporting Goods Manufacturers Association is the premier trade association in the US for : • More than 700 sporting goods manufacturers, retailers and marketers in the sports products industry; • Representing over 3,000 business locations, plants and distribution centers; • Employing more than 375,000 people; and • Generating $70 billion in domestic revenue and $15 billion in international revenue, wholesale dollars. Our purpose is to support our member companies and promote a healthy environment for the sporting goods industry by providing access to insight, information, influence and industry connections. SGMA enhances industry vitality and fosters sports, fitness and active lifestyle participation. Members Current members of SGMA range from large, international companies such as Nike, adidas/Reebok, New Balance, Wilson Sporting Goods, and Mizuno to smaller companies that have a smaller distribution and are just focused on selling product in the U.S. For the most part, members of SGMA manufacture, market, and distribute products which fall under the category of sporting goods equipment, sports apparel, exercise/fitness machines, athletic footwear, and recreational transport. Officials & staff Executive Committee • Tom Cove (President and Chief Executive Officer) SGMA • Tom Rogge (President and CEO - Cramer Products Inc.) Chairman • Richard Kazmaier (President - SR Industries) Immediate Past Chairman • Steve Furniss (Executive Vice President - TYR Sport Inc.) Vice Chairman • Carl Ferraro (Industry Consultant) Secretary/Treasurer • Larry Franklin (CEO - Franklin Sports) Board of Directors • Jim Baugh • Richard Bourne • Dan Bower • Chris Considine • Jim Tompkins • Paul Ehrlich • Carol Hochman • Gregg Shearson • Mitchell Modell • Lindsay Stewart • George Napier • Kevin Plank • Robert Puccini • Robert Whip Founder / President - PE4life; Consultant President and COO - ASICS America Corporation President - Century Inc. President - Wilson Sporting Goods Company President and COO - New Balance Athletic Shoe Inc. Vice President / Business Affairs & General Counsel - adidas America President and CEO - Danskin Inc. President / CEO - Jarden Outdoor Solutions CEO - Modell’s Sporting Goods Special Advisor to the Chairman/CEO - Nike CEO and Chairman - Prince Sports Inc. CEO - Under Armour Performance Apparel President - Mizuno USA Inc. President - Horizon Fitness Staff • Tom Cove President/CEO • Gregg Hartley Vice President • Chris Strong Director of Business Development • Bill Sells Vice President of Government Relations • Chip Baldwin CFO • Mike May Director of Communications • Jan Ciambor Executive Assistant to the President • Lauren Wallace Director of Marketing • Vincent Mayor Membership Coordinator • Karen Youngblood Finance Manager • Jonathan Michaels Membership Assistant Aims & objectives The Sporting Goods Manufacturers Association, your #1 source for sport and fitness research and the owner of the Sports Research Partnership, is the global business trade association of manufacturers, retailers, and marketers in the sports products industry. SGMA leads the sports and fitness industries while enhancing industry vitality and fostering sports, fitness, and active lifestyle participation. More information about SGMA can be found at www.sgma.com. Events and Programs Organized by SGMA For decades, SGMA has been a trusted source for research and analysis on sports and fitness through its Sports Market Research Partnership. The organization is also a rich source of business information and a central hub for connections to buyers, markets, media and peer networks. As the voice for the industry in Washington, D.C., SGMA advocates for a healthy business climate and for public policy promoting active lifestyles. SGMA produces signature industry event is held each March – National Health through Fitness Day on Capitol Hill in Washington, D.C. More information about SGMA membership can be found at www.sgma.com. 129 WFSGI Handbook 09 National / Regional Federations members of the WFSGI Contact Details SGMA- Sporting Goods Manufacturers Association 1150 17th Street, NW Suite 850 Washington DC 20036 USA Phone : 202.775.1762 Fax : 202.296.7462 E-mail : [email protected] Website : www.sgma.com What is ABIAE? The Associação Brasileira de Industriais de Artigos de Esporte (ABIAE) is a national trade association for Brazilian. producers and distributors of Sporting Goods. ABIAE was founded in November 1977. The people who started the Association were also present at the foundation of the WFSGI in September 1978. Officials & staff • Raul S. Hacker President • Roberto Estefano Vice-President • Ms. Alice Frank Secretary Aims & Objectives Constantly in contact with the governmental sectors responsible for the study and implementation of reducing taxes. This is a very important step towards the effort and the aim of being able to be a important co-partner in the global endeavor to spread more widely the practice of sports. The sporting goods industry is very much involved in this effort and is working towards this goal. Contact Details A.B.I.A.E - Associacão Brasileira de Industriais de Artigos de Esporte Av. Pedroso de Morais, 1553 3° andar / CEP 05419-001 São Paulo Brazil Phone :+55 (11) 3811 49 00 Fax : +55 (11) 3811 49 42 E-mail : [email protected] ASIA What is SCCI? The Sialkot Chamber of Commerce and Industry is a trade body which was established and incorporated under Section 23 of the Companies National / Regional Federations members of the WFSGI Ordinance 1984 (LXXI OF 2007) in 1982. It is licensed Vide License No. 24, dated 15.07.1982 (New license No. 12, dated April 18, 2008) granted by the Ministry of Commerce, Government of Pakistan, under the Trade Organizations Ordinance 2007. Its jurisdiction spread over the entire area of District Sialkot. Late Mr. A.D. Bhutta was the founder President of this esteemed organization. It comprises of industrialists, importers and exporters belonging to the various fields. Members At the moment, the number of members of this Chamber are more than 7000. Most of them are connected with the manufacturing and export of Sports Goods, Surgical Instruments, Gloves, Textiles and Sports Wear, Leather Garments/Products, Hand Embroidered Badges, Musical instruments, Judo Karate Uniforms, Accessories, Knives & Cutlery etc. The industry-wise membership of the SCCI is as under : • World Federation of the Sporting Goods Industry • Federation of Pakistan Chambers of Commerce & Industry • To communicate with the Chambers of Commerce and Industry or public bodies within outside Pakistan and to concert and promote measures for the protection of trade, commerce and manufacturers and the labor engaged therein and to remove mutual hardship. • To establish a commercial and statistical Library. Contact Details Mr. Nawaz Ahmad Toor, Secretary General, SCCI - The Sialkot Chamber of Commerce & Industry P.O.Box: 1870, Shahrah-E-Aiwan-E-Sanat-O-Tijarat Road, Sialkot City. 51310 Pakistan Phone : +92 52 4261881-3 / +92 52 265895-97 Fax : +92-52-4268835 / +92-52-4267919 Email : [email protected] / [email protected] Website :www.scci.com.pk 50 Departmental committees on different subjects assist the President, SCCI in formulating proposals/suggestions for the betterment of the respective industries. Aims & objectives • To promote, aid develop, stimulate and protect the economic interest of Pakistan in general and of those engaged in industry, agriculture, commerce, trade, banking and insurance, in particular. • To consider all questions connected with trade, industries, agriculture, manufacture and commerce and to initiate and or support necessary action connected therewith. • To consider, support or oppose legislative or other government measures affecting the economic interest of businessmen and industrialists and also make representations to Government on grievances if any. • To adjust controversies between members of the Chamber. • To arbitrate in settlement of disputes arising out of commercial transactions between parties willing and agreeing to abide by the judgment and decision f the Chamber. Link Between the Industry and the Indian Government : SGEPC is the direct link between the industry and the Government whereby it provides feedback on industry’s requirements to the Indian Government and also informs Government directives to the industry. Export Statistics and Projections : SGEPC collects export data from its members, maintains a statistical record of exports of sports goods and toys and evaluates its performance on an annual basis. Contact Details • Dr. Khurram Anwar Khawaja President • Zia Ullah Mirza Senior Vice President • Fazal Jilani Vice President Members of Executive Committee 2007-2008 • Sh. Abdul Waheed Sandal • Muhammad Arshad Durrani • Nadeem Anwar • Ghulam Mustafa Ch. • Sheikh Asghar Hussain • Hassan A. Bhatti • Majid Raza Bhutta • Abid Mahmud Qureshi • Pervaiz Ahmad Khan • Amer Hameed • Muhammad Sarfraz Butt • Ghulam Murtaza • Naveed Zafar • Mian Muhammad Khalil • Faisal Rashid • Javed Iqbal Awan • Mir Farooq Meyer • Muhammad Ghafoor • Asim Shafique Sulehria Dissemination of Information : SGEPC provides important information to the members on market intelligence, standards & specifications, quality & design, and on any other issue which may directly or indirectly affect the industry. Export Awards : SGEPC recognizes the achievements of exporters and awards the top performers annually. Officials & staff An Executive Committee consisting of 22 members runs the affairs of the Chamber. The Executive Committee elects Pwresident, Senior Vice President and Vice President for a tenure of one year.The Executive Committee members are elected for a period of 3 years. Trade Promotion Activities : SGEPC organizes trade promotion activities like Indian participation in International Trade fairs, Visits of Business Delegations, Promotional campaigns in international markets etc. What is SGEPC? Sports Goods Export Promotion Council (SGEPC), an organization sponsored by the government of India, is working for the promotion of India’s exports of sports goods and toys. Founded in 1958, SGEPC, till the year 2003, was looking after promotion of only Indian sports goods. After 2003, toys have also been added by the Government of India in its ambit. SGEPC represents all the leading manufacturers and exporters of sports goods and toys in India. Organisation SGEPC is managed by a Committee of Administration (COA), which consists of elected representatives from the Indian industry and Government representatives. The COA is headed by the Chairman, the Vice-Chairman and the Regional Director. • A.G. Mukim Chairman • B.K.Kohli Vice Chairman • Raghunath Singh Rana Regional Director • Tarun Dewan Secretary Committee of Administration • K.C. Anand • Rajan Mayor • Anil K. Sharma • Vikas K. Gupta • A.N. Chadha • K R. Mahajan • Kulbhushan Kumar Gupta Aims & Objectives The one point objective of SGEPC is to promote exports of sports goods and toys from India. Activities SGEPC’s range of activities include both that spur the industry’s performance on one hand and those which helps to promote its presence internationally, on the other. An Apex Industry Forum : SGEPC is a common platform for companies from all over the country, with common interests, where they can meet to exchange views, decide on common strategies for promotion and also where from they can voice their concerns at both national and international levels. SGEPC Headquarters - Sports Goods Export Promotion Council The Sports Goods Export Promotion Council 1-E/6 Swami Ram Tirth Nagar, New Delhi – 110055 India Phone : +91 11 23525695 / +91 11 23516183 Fax : + 91 11 23632147 E-mail : [email protected] Website :www.sportsgoodsindia.org SGEPC Regional Office 201, Shakti Nagar, Jalandhar – 144001, Punjab India Phone : +91 181 2403734 What is KOSPA? Since approved and established in March 19, 1970, Korea Sporting Goods Industry Association, Centering on the manufactures of sports and game equipment, has tried to develop sports industry for 38 years. Currently, a total of 150 companies, as the number of association as of 2008 are actively involved. Officials & staff A total of employees (13 absentee executives and 4 full – time executives and employees) are operating various business of the association. • O Sung Kwon President Board of Directors • Bo Young Chang (Kae Sun Sports Co., Ltd) • Bong Yeol Kim (Kuk Je Leisure Ind.Co., Ltd) • Jung Hyun Cho (KIHO Products Co., Ltd) • Jin Ok Kim (Da Woo Leports Co., Ltd) • Jae Eul Kim (Dae Han Ultravision Co.,Ltd) • Chae Jun Park (Myung Sun Industry Co.,Ltd) • Dong Hwa Kim (Ora System Co.,Ltd) • Chang Ju Lee (Joong Ang Sports Co.) • Soon Ja Lee (Han Kook Sporting Goods Co.) • Kwang Sik Shin (Hyun Dai Sports Equipment Ind.Co.,Ltd) • Ki Dong Kwon (Korea Sporting Goods Industry Association) 131 WFSGI Handbook 09 naTIOnal / REGIOnal FEDERaTIOns MEMbERs OF THE WFsGI naTIOnal / REGIOnal FEDERaTIOns MEMbERs OF THE WFsGI aims & Objectives aims & Objectives • Ourassociation,withthebasicoperatinggoalsoftheassociationsuch as financially sound of the association, increasing cooperation between the members of the association, activating a guiding education, strengthening the services for the members and intensifying a supportive business for public purchase system, is promoting various business. • Protect for member’s rights and interests, make a suggestion to government for health development as well as communication article. • Standardizedimensionofmember’sproductandcooperatedinspection as well as test research. • Management technology about business for member as well as a guide for management of product quality, business about training for examination research. • Tojoineffortswiththoseofthedepartmentsconcernedfromhomeand abroad to promote a healthy development and growth of sporting goods industry in China. • To serve the interests of CSGF members as well as to strengthen communications and exchanges among. • Representing China sporting goods industry to set up ties and exchanges with international sporting goods organizations and companies while at the same time to help domestic brands to become internationalized. • Toprovidememberswithservicesoninformationonsportinggoodsindustry at home and abroad by issuing a magazine and newsletter monthly. contact Details KoSPA - Korea Sporting Goods Industry Association Yeouido- Dong 61-4 (Life Combi 505) Yeungdung po- Gu, Seoul KorEA Phone : +82 – 2 - 786-7761~3 Fax : +82- 2 – 786 – 7764 E-mail : [email protected] Website : www.kospia.or.kr What is csGF? Tradeshow organized by csGF China International Sporting Goods Show (China SportShow) first started in 1993 and developed into summer and winters shows in 2002. Figures for SportShow Summer 2008 :120,000 sq.m., about 1000 exhibitors Figures for SportShow Winter 2007 : 10,000 sq.m., about 120 exhibitors contact Details CSGF - China Sporting Goods Federation Tiyuguan Road 3, Chongwen District Beijing 100763 CHInA Contact: Laura Yong Director of International Exchanges Dept. Phone : +86-10-87183963 Fax : +86-10-67102689 E-mail : [email protected] / [email protected] Website : www.csgf.org.cn China Sporting Goods Federation (CSGF) was founded in October 1993. It is composed of various companies and enterprises engaged in research, manufacturing, marketing, and distribution of sporting goods. Up to the end of year 2007, it had got about 700 members. structure of csGF What is TsMa? Members The total number of TSMA members has grown to 353, representing nearly 50% of the annual turnover of the sporting goods industry in Taiwan. Officials & staff • WANG JUN • MA JILONG • LIU JUN President (2004 - ) Vice-President & Secretary General (2004 - ) Vice-President & WFSGI Board Member (2004 - ) Organization General Assembly — Board of Directors and Board of Supervisors — Chairman — 8 Divisions — 4 Committees (International Affairs, Trade Shows & International Trade Promotion, Intellectual Property, Overseas Investments) and Secretariat. aims & Objectives •Topromotedevelopmentandgrowthofthesportinggoodsindustryin Taiwan. •To coordinate with WFSGI for the ultimate goal to regulate supply and demand of the sporting goods for the world market. •To support and assist the government to forestall design piracy and trade mark counterfeiting in the sporting goods industry. •Toadviseonreductionofindustrialwasteanditsrecyclingandre-useto ensure environmental protection in Taiwan. •To act as arbitrator to disputes among TSMA members and associate members. •TodefendtheinterestsofTSMAmembersandagainstirrationalforeign requests and illegal patent violation and trade mark copying. •To promote export of sporting goods through trade fairs around the world. Tradeshows co-organized and cosponsored 2008 35th Taipei International Sporting Goods Show (TaiSPO 2008) : 300 exhibitors, 1582 booths, 14,057 visitors (http://www.taispo.com.tw/ chinese/overview/report2008.shtml) TaiSPO 2009 will be held from March 19 to 22 (Contact : [email protected]) contact Details taiwan Sporting Goods Manufacturers Association (TSMA), founded in 1972 in Taipei, is the largest official association for Taiwanese sporting goods industry in Taiwan. Its major tasks are to promote export of Taiwanmade sporting goods, to stage trade fairs in import countries, to achieve concerted actions for industrial developments, and to facilitate government policies for industrial environmental protection and prevention of design piracy and trademark counterfeiting. Since 1981, TSMA Yearbook has been annually published and recognized as the most authoritative source for the sporting goods manufacturers in Taiwan. It contains full information of the products of TSMA’s members. Officials & staff • PETEr Lo (Johnson Health Tech. Co., Ltd.) • IMI SU (Young Chief Industrial Co., Ltd.) • AnDY M.C. WU. (Tonic Fitness Technology Inc.) • H.T. CHEn (Jih Kao Enterprise Co., Ltd.) • GrACE Y. FAnG (Playmaker Co., Ltd.) • PAo-CHUAnG HUnG (HorngDahZippersCo.,Ltd.) • JACK CHEn (Sportsman Corp.) • Dr. GEorGE WooD (TBS Group Corp.) • ArTHUr LIn (Freesport Corp.) • JAnE WEn • JESSICA LIAnG AnD vIvIAn CHEn • MEI FEnG YAnG • YUEZHUANLI Chairman Honorary Chairman Secretary General Exhibition Division Accounting Division Design Division executive directors • CATHErInE WAnG (Yuan Chi overseas Ltd.) • BEnJAMIn LIU (Poyang International Co., Ltd.) TSMA - Taiwan Sporting Goods Manufacturers Association 8 F., No. 22, Teh-Hwei Street Taipei City 10461, TAIWAn Phone : (886-2) 2594-1864 Fax : (886-2) 2591-9396 Website : www.sports.org.tw; www.taiwansports.net E-mail : [email protected] Officials & staff The Board of Directors elects for 2 year term : one President, several VicePresidents and 38 to 43 directors, two auditors and one Director General. • FUMIYA TAMIAKI (MoLTEn) President vice-Presidents • MASATOMIZUNO(Mizuno) • YOSHIKAZUISHIMOTO(Descente) • MInorU YonEYAMA (Yonex) • TAKASHI HATAno (D&M) • KIYOMIWADA(Asics) • TAMENOBUYAMAMOTO(Yamamoto Kogaku) • KANEMITSUONO(national Hat) • ISAOKITAOKA(nittaku) • HIroTAKA MIYAJI Director General aims & Objectives To contribute to the promotion of sound development of the sporting goods industries and the national physical education in Japan by encouraging rationalization of production, trade as well as effective use of equipment and apparels for sport with constant efforts for improvement of the quality and safety standards of the products. activities • Researchsurveyofproduction,distribution,tradeandconsumptionof sporting goods. • Studyfortechnologicaldevelopmentandimprovementofproductionfor sporting goods. • Establishment and promotion of the size and standard of sporting goods. • Securingandregisteringlegalrightsfordesignsandutilitypatentsfor sporting goods. •Researchstudyforproductliability. •Planningandpromotionforthesafeandefficientuseofsportinggoods. •Makinganddistributionofresearchinformationofsportinggoods. •Other activities achieve the result to meet the objectives of the association. contact Details JASPo - Association of Japan Sporting Goods Industries 9TH Floor, Misaki Bldg., 28-9 3 Chome, Kanda Ogawa Machi Chiyoda Ku Tokyo 101-0052 JAPAn Phone : +81-3-3219 2041 Fax : +81-3-3219 2043 E-mail : [email protected] OCEANIA What is JasPO? Association of Japan Sporting Goods Industries. JASPO is the Japanese authoritative body for sports industry under the approval of Ministry of Economic, Trade, and Industry. It is a non-profit organization and does not pursue any objective of ecomomic character for its own gains. It provides the common platform for sports industry. Members What is asGa? JASPO members are classified under the two following categories : • RegularMember-SportingGoodsManufacturers • SupportingMember-Corporation/organizationrelatingtosportbusiness The Australian Sporting Goods Association is the peak industry body for the Australian sporting goods industry. ASGA’s primary focus is to foster the market growth of wholesale and retail sport and active lifestyle businesses. JASPO members total 120 companies including foreign brand companies representing the 90 % of total Japanese sporting goods turnover. ASGA provides market intelligence to its Members across a variety of categories including sporting footwear, apparel and equipment. 133 WFsGI HanDbOOk 09 National / Regional Federations members of the WFSGI In addition ASGA is an industry voice to government on specific issues impacting the health and growth of the overall industry. National / Regional Federations members of the WFSGI EUROPE Contact Details FESI - Federation of the European Sporting Goods Industry Rue Belliard 20 B-1200 Brussels Belgique Phone: + 32 2 762 86 48 Fax: + 32 2 771 87 46 E-mail: [email protected] Website:www.fesi-sport.org Members ASGA has three categories of Membership : • Premium Membership • Industry Membership • Non-Industry Membership All three categories of membership allow for subscription and access to the market intelligence surveys as well as the other great benefits of being associated with the Industry Association. Officials & staff • Ian Fullagar (Lander and Rogers Lawyers) Chairman • Sean Cary (ASGA) Executive Director • Nikki Wynd (ASGA) Office Administrator Wholesale Representative Directors • Ross Langdon (Amer Sports) • Guy Tuthill (T ‘n’ F Group) Retail Representative Directors • Mark Abeyaratne (Drummond Golf) • Chris Morgan (ARL – Sports Power) Aims & Objectives Vision To be regarded as the authoritative peak body representing a unified and influential sport and active lifestyle goods industry. Mission We are in the business to drive the performance and growth of the Australian sport and active lifestyle goods industry and its people. ASGA Core Values • United representing the collective interests of all stakeholders and Members • Influential providing a powerful and relevant industry voice • Responsive being proactive and ahead of the game • Honest integrity, transparency and openness • Informed continually seeking new and meaningful info and providing valuable insight to the industry Strategic Themes and Priorities 2008-2011 1.Lead Industry Growth Provide visible and informed leadership to strengthen the drivers of industry growth and performance 2.People Development Deliver professional development support and resources to attract and retain talented people in our industry 3.Market Insight Premier information source for the Australian sport and active lifestyle industry 4.Business Development Increase investment in the industry by substan tially growing our revenue. Contact Details ASGA - Australian Sporting Goods Association Inc. 767 Springvale Road Mulgrave Victoria 3170 Australia Phone: + 61 3 9263 5394 Fax: + 61 3 9263 5294 E-mail: [email protected] Website:www.asga.com.auw What is FESI? FESI Members The Federation of the European Sporting Goods Industry (FESI) is the Brussels based Association for European manufacturers and suppliers of sports and leisure goods. It represents a wide range of products, i.e. sports goods, sports apparatus, sports clothing, sports shoes, camping, garden furniture, and other sports and leisure equipment for all sports activities. FESI was founded in 1960 and is the member of the WFSGI representing Europe since many years. VSSÖ - Verband der Sportartikelerzeuger und Sportausrüster Österreichs Eschenbachgasse, 11 A-1010 Wien Austria Phone :+43 1 587 36 33-24 Fax : +43 1 587 01 92 Members Obmann des Bundesgremiums des Lederwaren, Spielwaren-und Sportartikelhandels Wiedner Hauptstrasse 63 A-1045 Wien Austria Phone : +43 5 90 900 3370 Fax : +43 90 900 13370 President: Mr. Walter Schwarzinger Responsible Person : Ernst Aichinger E-mail : [email protected] Website : www.vsso.at Today FESI counts on the membership of some 1800 sporting goods manufacturers mainly represented through its affiliation system : Regular members • National Sports Industry Federations (as presented hereafter) • Industry Suppliers : Acquablitz, Acushnet, Adidas, Asics, Atomic, Diadora, Fila, Lacoste, New Balance, Nike, Puma, Salomon • Associated Members: Blizzard, Champion, Elan, FEPI, Fischer, Head, K-Swiss, Lotto, Marker, Pentland, Rossignol, Siport, Tecnica, Timberland, Tyrolia, TMd, Umbro, Völkl In addition, FESI offers the Sustaining membership possibility to other bodies, companies and institutions, which organise and run sporting goods trade fairs : ISPO, APLF, KölnMesse Officials & staff Key Board Members • Horst Widmann • Giancarlo Zanatta • Claudine Reynes • Rory Macmillan • Frank Dassler • David Pomfret President (PUMA Vice-President) Vice-President ASSOSPORT Vice-President FIFAS Vice-President Nike Vice-President adidas Treasurer FSPA Permanent Staff • Alberto Bichi • Patrycja Polak • Jérôme Pero • Irina Mihalcut Secretary General FESI Issue Manager FESI Issue Manager Assistant to the Secretary General Aims & Objectives As mentioned in the bylaws, FESI is the representative European organization voicing the legitimate interests of its sporting goods industry members vis-à- vis the European institutions as well as other authorities and bodies. More specifically it has to : • Protect and promote the joint interests of its members relating to all basic matters of the European Market. • Represent its members vis-à-vis European authorities and institutions. • Create the conditions for supra-national cooperation of its members. One of the principle goals of FESI is to foster and preserve free trade between all European Member States and, of course, to facilitate trade world-wide. FESI represents a total amount of approximately 1800 companies with an annual turnover of about 45 billion Euro. BSI - Bundesverband der Deutschen Sportartikelindustrie Mullenweg 12 D-53604 Bad Honnef Germany Phone : +49-22/24 763 81 Fax : +49-22/24 759 40 Responsible person : Mr. Adalbert Von der Osten President : Désirée-Derin Holzapfel E-mail : [email protected] Website : www.bsi-ev.de ETENDYPO Syngrou 348 Kallithea, Athens, Greece Phone : Fax : President : +30 210 9464 400 +30 210 9464 300 Mr Michael Malamatinas ASSOSPORT Palazzo Giacomelli Piazza Garibaldi 13 I-31100 Treviso Italy Phone : Marisa +39 0422 41 00 87 Manuela +39 0422 41 91 67 Fax : +39 0422 579 535 Responsible Person : • Mrs. Manuela Viel e-mail : [email protected] • Mrs. Marisa Bosa e-mail : [email protected] President : Mr.Giancarlo Zanatta Mr. Luciano Andreatta / [email protected] Website : www.assosport.it AVOZ CR AVOZ/Prosport Praha Karla Mündla 636 CZ-252 30 Revnice Czech Republic Phone : +420-241/483 338 Fax : +420-241/481 339 Responsible Person : Mr. Jan Cermak E-mail : [email protected] Website : www.avoz.cz FGHS Vereniging van Fabrikanten en Groothandelaren in Sportbenodigheden Sports Business Centre Plesmanstraat, 1 NL-3833 LA Leusden The Netherlands Phone : +31-334/34 35 80 Fax : +31-334/34 35 83 Responsible Person :Mr. Dirk Vinken / e-mail: [email protected] President : Ms. Lizette Visscher Website : www.fghs.nl SPORTSBRANCHEN Sportbranchens Leverandorforening Damvejen, 22 Bendstrup DK-3400 Hillerd Denmark Phone : +45-48/28 58 10 Fax : +45-48/28 58 15 Responsible Person : Mr. Preben Boas E-mail: [email protected] Website : http://www.sportsbranchen.dk AFYDAD C. Viladomat 174 ES-08015 Barcelona Spain Phone : +34-93/416 94 89 Fax : +34-93/416 93 01 Responsible person : Ms. Cristina Guevara President : Mr. Marc Puig E-mail : [email protected] Website : www.afydad.com FIFAS - Fédération Française des Industries du Sport et des Loisirs 3, rue Jules-Guesde F-92300 Levallois FRANCE T : +33-1/4731 56 23 Fax : +33-1/47 31 56 32 Responsible Person : Mrs. Catherine Trachtenberg President : Mrs. Claudine Reynes e-mail : [email protected] Website : http://www.fifas.com SPORTFORUM Fleminggatan 14 Box 22307 S-10422 Stockholm Sweden Phone : +46-8-678 60 05 Fax: +46-8/679 96 65 Responsible Person : Mr. Klas Elm President : Mr. Christer Jansheden E-mail : [email protected] Website : www.frisab.com 135 WFSGI Handbook 09 National / Regional Federations members of the WFSGI FSPA - Federation of Sports and Play Associations Federation House National Agricultural Centre Stoneleigh Park UK-CV8 2RF Warwickshire United Kingdom Phone: +44-2476/41 49 99 ext 210 Fax: +44-2476/41 49 90 Responsible Person : • Mr. David Pomfret e-mail:[email protected] • Ms Jane Montgomery e-mail :[email protected] President : Mr. Mark Hammersley Website : www.sportsandplay.com The Board selects the President, Vice-presidents and the Secretary General of Association. Board of Directors • Vyacheslav Starshinov • Leonid Strakhov • Alexander Perlov • Andrei Maslak • Vladimir Bogdanov • Sergey Vorob’ev • Sergey Lepnukhov • irina Kadakova President Vice-president Vice-president Secretary General Member of the Board Member of the Board Member of the Board Member of the Board • Alexander Bereznikov Executive Director The RASIE Inspection Commission controls the financial and economic activity of the organization. The RASIE Inspection Commission members are elected for the term of 2 years by the General Assembly. Members of the Inspection Commission • Dmitry Ovsiannikov Chairman • Vadim Gavrilov Member (Information about 3d person I’ll add later, if it is possible) What is RASIE? Russian Association of Sports Industry Enterprises (RASIE) is a non-profit organization, which unites enterprises and companies, manufacturing and selling sporting goods in Russia, and suppliers of the industry. RASIE was founded at the beginning of 2004. At present, more than 60 sport industry companies are the members of RASIE. RASIE is a member of Russian Chamber of Commerce and Industry and a member of the World Federation of the Sporting Goods Industry, Federation of the European Sporting Goods Industry. Members AVM Ssport Asidas Al Sar Amer sports Australian Angel AST-Sport Baltic Bridge Bamard BASK City Sport – M Dinamo EFSI Elit International Eurofootball Factory of sports footwear (Klin) Fan sport Football industry Infosport International Sport Group Intersport John-rus Kait-sport Legal initiative XXI New balance Nike DIVS Proline Neva Engineering Sovetsky sport Sport collection Sport Communication Group Sport contact Sport hall Sport House Sport House International Sportmaster Sportsoorugeniya Sprandi Stayer Decathlon CSI Moscomsport Atemi Union sport Gaztehnika Bamard VMZ Yantar Vega group Milanj 2000 Utres group Red fox Ronin sport Madwave Vasil Mesuca Joerex Modus Vizavi Omega Stavelektrostroy Unitrade VISTI Officials & staff The members of the Board Directors as well as the Executive Director are elected for the term of 2 years by the General Assembly of RASIE members. Structure • Committee on production • Committee on trade and regional activities • Committee on industry informatization • Committee on construction and equipment of sports venues • Committee on foreign-economic activities • Committee on creation of technical regulations • Committee on interaction with state structures Aims & Objectives • Development of civilized sporting goods market in Russia. • Promotion of constructive dialogue between business and state. • Development and realization of measures for preventing counterfeit production, and protection of trademarks as well as industrial and intellectual property on the territory of Russia. • Emphasize on the social responsibility of business.• Creating an organization, which could present interests of sports companies in state bodies, public and business community in Russia and abroad. RASIE was founded on March 2004. From the date of its foundation, RASIE managed : • To organize and hold the 2nd, the 3rd, the 4th and the 5th National Forum «Sport Industry of Russia-2004», Forum «Sport Industry of Russia-2005», Forum «Sport Industry of Russia-2006», Forum «Sport Industry of Russia-2007». • To organize and hold regional conferences on sports subjects. • To work on creation of Technical Regulations in sports industry. • To lead activity on Russian custom rates decrease. • To provide active communications among sporting goods enterprises. Contact Details RASIE head office - Russian Association of Sports Industry Enterprises Build 1., 1st Volokolamsky proyezd, 10. Moscow, 123060 Russia Phone / Fax : + 495-981-53-48 E-mail : [email protected] Website : www.rapsi.ru