Sporting Goods in Australia: An Industry Snapshot

Sporting Goods in Australia:
An Industry Snapshot
March 2012
ASGA Industry Research.
A snapshot of the sporting goods industry in Australia.
ASGA | Industry Snapshot Research
2
Foreword!
The Australian Sporting Goods industry currently faces a complex but exciting set of operating
conditions: a tentatively improving global economy, a historically high dollar, rapid changes in
consumers’ online and offline buying habits and evidence of evolving attitudes and preferences
towards sporting apparel and footwear.
These factors represent strategic challenges but also powerful opportunities for the industry. To
assist members in making the very best decisions, ASGA partnered with Empirica Research to
create this industry report. The chief goal: To create an actionable roadmap for navigating the
current economic/industry conditions and for remaining ahead of the curve in addressing shifts in
the Australian consumer’s needs and preferences.
We invite you to explore the report and hope the findings help to inform your decision making in
the year ahead.
David Neal, Ph.D
Anna Coster, M.A.
Cassie Govan, Ph.D
Empirica Research
empiricaresearch.com.au
3
Brad Kitschke
Executive Director
Australian Sporting Goods Association
asga.com.au
Sources of data and structure of the report!
The research for this report was conducted between January and March 2012, using two complementary
research methods.
The first was “primary research,” which included the analysis of data from two surveys: The quarterly
ASGA industry member survey and a survey of Australian consumer behaviour and attitudes in the
sporting goods space (survey conducted by Empirica Research, February-March 2012).
We also conducted “secondary research,” which involved a comprehensive literature review of existing
government (e.g., ABS) data, recent industry reports, and academic publications.
1. Primary research...
•  ASGA industry member survey (quarterly)
•  ASGA consumer survey of 1000 Australians, conducted by Empirica
Research (Feb-Mar 2012)
2. Secondary research (i.e., literature review)...
•  ABS and other Government Data
•  Other industry reports
•  Academic literature
4
Sources of data and structure of the report
These primary and secondary methods were used to generate data on four key content areas, shown in
the figure below. These content areas make up the four main sections of the report.
5
1. Macro economic
data
• Secondary: Government data and
industry reports
2. Industry sales data
• Primary: ASGA member survey
• Secondary: Government data
3. Consumer
attitudes and buying
behavior
• Primary: ASGA/Empirica consumer
survey
• Secondary research: Industry reports
4. Trends in sports
and exercise
participation
• Primary: ASGA/Empirica consumer
survey
• Secondary research
Report contents!
Section
Subsection
Macroeconomic conditions
Executive summary
8
Global GDP Forecasts
9
Australian dollar
10
Consumer sentiment
11
Business sentiment
12
Labour market
13
Industry metrics
14
ABS data: Sporting equipment
15
Retail sales data
17
Wholesale data
18
Footwear drill down
19
Compression drill down
20
Gold drill down
21
Consumer attitudes and buying behaviour
25
Main exercise segments and brand metrics
27
Purchase destinations and motivations
31
From the track to the streets
43
Consumers and counterfeit sporting goods
49
Trends in Australian sports participation
Trends in sport and exercise
Concluding remarks
About Empirica Research
6
Page
7
55
56
60
62
Macroeconomic conditions
!
An overview of key macroeconomic factors impacting the sporting goods industry.
ASGA | Industry Snapshot Research
7
Macroeconomic conditions
Executive summary
•  Most domestic and global indicators point to a continued, albeit tentative, global recovery
marked by growth rates slightly below historical trend lines.
•  Consensus estimates for the AUD suggest it will to continue trade at or above parity with the
USD through 2012.
•  Consumer sentiment in Australia, although having made up ground in recent months, sits
close to its historical average of 100.
•  Similarly, business sentiment sits close to its historical average. This applies to measures of
(a) business confidence, (b) business conditions, and (c) capacity utilisation.
•  Labor market conditions remain “steady,” but Westpac predicts unemployment will rise to
5.75% from current levels (5.2%) over the next 3-6 months.
•  Employment in retail trade declined by 20,000 in 2011.
•  Predicted growth in the Australian retail sector through 2015 ranges from 4.5% p.a. (Morgan
Stanley) to 3.0% (National Retail Association).
8
Macroeconomic conditions
Global conditions
Consensus forecasts from the IMF, Westpac and NAB point to a tentative recovery in global economic
conditions. The latest GDP forecasts through 2013 for Australia and other key economies are presented
below.
Real GDP %
ann
United States
2007
2008
2009
2010
2011e
2012f
2013f
1.9
-0.3
-3.5
3.0
1.7
1.7
2.1
China
Japan
India
Other East
Asia
Europe
Australia
New Zealand
14.2
2.1
10.0
6.1
9.6
-1.7
6.2
3.2
9.2
-5.7
6.8
0.4
10.3
4.7
10.1
7.7
9.3
-0.8
7.0
4.3
7.8
1.6
6.0
1.9
8.7
2.0
8.1
4.8
2.8
4.7
2.8
0.3
2.5
-0.1
-4.2
1.4
-2.0
1.8
2.6
1.6
1.5
2.0
1.6
-1.0
3.0
2.8
0.3
3.5
3.8
World
5.4
2.8
-0.7
5.1
3.9
2.8
4.0
Source: International Monetary Fund and Westpac Economics
9
Macroeconomic conditions
The Australian dollar!
As global growth conditions have improved, the Australian dollar has risen sharply. The
figures below show the AUD’s performance against the Yen, USD, Euro and New Zealand
dollar.
The latest forecasts from Westpac Economics as at February 2012 are that “the Australian
dollar and commodity prices are set to fall through to the third quarter of 2012 prior to a
‘recovery’ in the second half.” Their specific 2012 predictions for the AUD are:
Mid 2012 AUD
forecast
• = parity with the USD
End of 2012 AUD
forecast
• = 1.06 (USD)
Source: Westpac Economics
10
Macroeconomic conditions
Australian consumer sentiment!
Consumer sentiment in Australia currently rests very close to its long term average level of
100.
Note:
Australian Consumer SentimentAverage since 1980 = 100
Source: Melbourne Institute and Westpac Economics
Click here for the latest consumer sentiment data.
11
Macroeconomic conditions
Australian business sentiment
•  Business conditions measure: Survey
data integrating 3 key variables:
profitability, employment and trading
conditions. Zero point represents
average since 1989.
•  Business confidence measure:
“Excluding normal seasonal changes,
how do you expect the business
conditions facing your industry in the
next month to change?” Zero point
represents average since 1989.
•  Capacity utilisation measure: 100
percent Utilisation represents
“maximum desirable level of output
given existing capital equipment”.
Source: The NAB Business Survey
12
Macroeconomic conditions
Employment
• 
• 
• 
As of the February 2012 jobs report, unemployment sat at 5.2%. Factoring in lower
participation rates and lower population growth, this figure implies that there has been
no job growth in Australia since the beginning of 2011.
As a percentage of total employment, the retail and wholesale trade industry remains
close to its average for the last 5 years, accounting for 14.5% of all employment (see
lower left panel).
However, retail trade lost almost 20,000 jobs in 2011, second only to Agriculture/
forestry/fishing and manufacturing (see lower right panel).
Share of total employment by industry
Sources: ABS, NAB and Westpac Economics
13
Employment growth in 2011 by industry
000’s of jobs gained/
lost
State of the Industry.
!
An overview of the Sporting Goods and Apparel industry.
ASGA | Industry Snapshot Research
14
ABS data on the Australian sporting goods market
ABS data allow modelling of the sports equipment market, but not apparel and footwear!
•  Australian government data (e.g., retail and wholesale trade statistics) typically provide limited
insight for the sporting goods industry. This is because the ABS generally does not break out
sporting apparel/footwear from other apparel and footwear categories. However, the Australian
Household Expenditure Survey, conducted every 5 years, provides detailed statistics on sporting
equipment purchases made by Australian households.
•  The figure below shows $ spent each year by the average Australian household across sporting
equipment categories for the two most recent periods available (2003/2004 and 2009/2010).
•  Across this period, the annual value of the equipment increased by 15%. However, we note that CPI
increased by 19% over this period, indicating an overall decline in the market. This decline may partly
reflect temporary effects of the GFC on discretionary spending.
2003/2004
896 M. p.a.
2009/2010
1.032B p.a. (! 15%)
(note: CPI rose 19%
over this period)
15
Sporting goods industry sales data
The ASGA Industry Member Survey
Highly detailed sales data are available in reports based on ASGA’s quarterly industry member survey.
Members provide detailed information on units and total sales revenues for specific categories of
sports apparel, footwear, and equipment and accessories.
Market analyses based on these data are available to ASGA members on a subscription basis. For more
information about the available data sets, please click here or visit:
http://www.asga.com.au/sample-market-intelligence-surveys
In this section, we provide a top line analysis of key trends from these reports.
Specifically, we present:
1. 
2. 
3. 
4. 
5. 
16
Quarterly retail sales data: Footwear and apparel
Quarterly wholesale data by unit type
Footwear drill down
Compression drill down
Golf drill down
ASGA quarterly retail sales trends:
Source: ASGA/10 Thousand Feet
17
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Footwear Sales
Apparel Sales
Total Sales
2 per. Mov. Avg. (Total Sales)
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Footwear and apparel
ASGA quarterly wholesale trends:
Cut
by unit type and
$ sold/units
sold
Sporting
goods
industry
sales data
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,#$&&!-!./0!
,+$#*!-!./0!
Lifestyle Fashion Non Licensed Branded Licensed Accessories
Note: Data from July 2011
reported quarterly; data
prior to July 2011
reported half-yearly
Source: ASGA/10
THOUSAND FEET
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Source: ASGA/10
THOUSAND FEET
!#
Lifestyle Fashion Core apparel includes: Track suits, separate pants, jackets, T-Shirts, singlets/tanks, sweat tops and shorts. Non-licensed
brand core apparel includes: Track suits, separate pants, jackets, T-Shirts, singlets/tanks, sweat tops and shorts. Licensed Core apparel
includes: AFL - jumpers & guernseys, NRL - jumpers & guernseys, ARU - jumpers & guernseys, Soccer, NBA and Cricket Australia
Accessories Core apparel includes: Bags, caps and socks
18
ASGA quarterly footwear drill down:
Sales cut by footwear category
Highlighted Footwear Findings (ASGA/ 10 Thousand Feet)
•  After decreasing for 3 consecutive quarters (-6% in Jul – Sep 2011 compared to Apr – Jun 201, -7% in Apr – Jun 2011
compared to Jan - Mar 2011, -3% Jan – Mar 2011 compared to Oct – Dec 2010), footwear sales went up 20% in Oct – Dec
2011 compared to Jul – Sep 2011.
•  Average selling price was higher in Oct – Dec 2011 than one year before ($49.05 in Oct – Dec 2011 compared to $47.04 in
Oct – Dec 2010).
70.0 $ MIL
60.0 $ MIL
FY 2010/11 Q3 Jan - Mar
FY 2010/11 Q4 Apr - Jun
FY 2011/12 Q1 Jul - Sep
FY 2011/12 Q2 Oct - Dec
50.0 $ MIL
40.0 $ MIL
30.0 $ MIL
20.0 $ MIL
10.0 $ MIL
0
Cross
Basketb
Running
Training
all
FY 2010/11 Q3 Jan - Mar
Football
Football
Court - Court - Screw
Indoor Outdoor Moulde
in Sole
d Sole
$13,453, $49,062, $2,228,8 $53,256
Turf
Shoes
Netball
$1,230,1 $20,886, $278,371 $787,601 $3,372,8
Track
and
Field
Cleated
Ath/
Leisure
$5,577
$22,714, $2,614,8 $649,068 $134,070 $490,927
Walking Outdoor
Sandals
FY 2010/11 Q4 Apr - Jun $15,250, $58,551, $2,201,4 $39,341 $664,165 $2,323,0 $54,478 $191,518 $704,012 $12,692 $25,828, $2,299,4 $519,762 $507,639 $258,728
19
FY 2011/12 Q1 Jul - Sep
$12,411,
FY 2011/12 Q2 Oct - Dec
$13,431, $59,104,
$45,681, $2,557,0 $87,320 $1,461,4 $4,009,4 $20,725 $557,239 $864,441 $62,877 $27,158,
$3,163,1
$79,252 $1,739,8 $12,332,
$59,128 $259,747 $1,639,8
$7,106
$1,711,1
$3,042,8 $994,199 $2,043,2
$26,721, $1,708,0 $1,377,5 $266,792 $1,034,9
ASGA quarterly compression wear drill down
Cut by gender and adult/child
557.66K
1.02 $ MIL
Note: Data from July 2011
reported quarterly; data
prior to July 2011
reported half-yearly
634.38K
716.59K
250.76K
Children ($)
673.76K
945.80K
159.34K
621.40K
Women ($)
747.01K
500.0K
1.07 $ MIL
860.93K
1.0 $ MIL
202.36K
1.50 $ MIL
2.41 $ MIL
2.0 $ MIL
382.81K
Men ($)
2.50 $ MIL
737.93K
$ sold
3.0 $ MIL
Source: ASGA/10
THOUSAND FEET
120
0
Note: Jul-Sep 2011 and Oct - Dec 2011 figures in the report are raw data
provided by members and do not include uplift.
20
Source: ASGA/10
THOUSAND FEET
64
0
27
35
12.84K
59
27
13
25
38
24.24K
50
28
20
34
40
10.93K
60
24
80
0
100
108
$ units
Thousands
0
ASGA annual golf drill down (figure 1 of 3)
Cut by product category
Highlighted Golf Findings (ASGA/ 10 Thousand Feet)
•  In 2011 golf apparel sales increased 5% compared to 2010. Non-licensed branded products increased (+8.8%) while
accessories dropped (-9.8%).
•  In 2011 shoes kept decreasing (-4% compared to 2010) after an -11% drop in 2010 compared to 2009. This 2011 drop was
driven by a decrease in sales of shoes costing $90 or more (-39% compared to 2010) while shoes under $90 sales went
up 16% compared to 2010.
•  Graphite Individual golf clubs remain relatively stable compared to 2010, while Steel golf clubs sales are behind in 2011
compared to 2010 (-2%).
•  Golf bags dropped 11% in 2011 compared to 2010 while gloves went down 9% compared to 2010.
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Source: ASGA/10
THOUSAND FEET
ASGA annual golf drill down (figure 2 of 3)
Cut by product category
Highlighted Findings (ASGA/ 10 Thousand Feet)
•  Golf bags dropped 11% in 2011 compared to 2010 while gloves went down 9% compared to 2010.
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22
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THOUSAND FEET
ASGA annual golf drill down (figure 3 of 3)
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23
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Consumer attitudes and behavior in the
!
sporting goods and attire space
ASGA | Industry Snapshot Research
24
The ASGA Sporting Goods Consumer Survey
Overview of the survey
The ASGA Consumer survey was designed and conducted by Empirica Research in February and March
2012. The study was a nationally representative survey of 1000 Australians, oversampling people who
exercise or play sport once or more often each week. Thus, the survey findings closely map onto the
“average Australian sporting goods consumer.”
The survey was designed to address the following core content areas:
1.  Core exercise segments: Australians’ main forms of exercise cut by age and gender; brand awareness,
ownership, and loyalty metrics.
2.  What, where and why are people buying? Major purchase destinations and motivations.
3.  How are Australians attitudes towards sportswear evolving?
4.  Counterfeit sporting goods in Australia: Will Australians buy in?
25
The ASGA Sporting Goods Consumer Survey
Sample and Methodology
• 
• 
• 
26
The sample was nationally representative across gender and state/territory. Exercisers were
oversampled (90% of the sample exercised once per week or more).
The survey was conducted in February and March 2012.
The total sample size was 1000.
GENDER
%
STATE
%
Male
50
NSW
33
Female
50
VIC
26
QLD
20
AGE
%
WA
8
18-24
23
ACT
1
TAS
2
25-34
22
NT
1
35-44
21
SA
8
45-54
18
55 or older
17
Part 1: The lay of the land
! “main form of exercise” and core metrics of
Segmentation analysis of Australians’
brand awareness, ownership and loyalty.
ASGA | Industry Snapshot Research
27
Segmentation analysis: Australians’ main form of exercise
Top 10 forms of exercise cut by gender and age
What is your main form of exercise?
18-24 Years
28
25-34 Years
35-44Years
Segmentation analysis: Australians’ main form of exercise
Top 10 forms of exercise cut by gender and age
What is your main form of exercise?
45-54 Years
29
55+ Years
Brand awareness, ownership and loyalty metrics
Which brands have you heard of?
2XU
2XU
Adidas
Asics
Black Diamond
Bonds
Brook
BSc
Everlast
Fila
Icebreaker
Katmandu
KSwiss
Lonsdale
Lorna Jane
Lululemon
Merrell
Mountain Designs
Mountain HardWear
New Balance
Nike
North Face
Outdoor Performance
Patagonia
Performax
Puma
Reebok
Running Bare
Russell Athletic
Saucony
Skins
Snow Gum
Speedo
Supre
Target
Under Armour
Vibram
Asics
Black Diamond
Bonds
Brooks
Everlast
Fila
Icebreaker
Katmandu
KSwiss
Lonsdale
Lorna Jane
Lululemon
Merrell
Mountain Designs
New Balance
Nike
North Face
Outdoor Performance
Performax
Puma
Reebok
Running Bare
Russell Athletic
Saucony
Skins
Snow Gum
Speedo
Supre
Target
Under Armour
Vibram
25.00%
50.00%
75.00%
100.00%
Which brand is your favourite?
2XU
Adidas
Asics
Black Diamond
Bonds
Brooks
Everlast
Fila
Icebreaker
Katmandu
Lonsdale
Lorna Jane
Lululemon
Merrell
Mountain Designs
New Balance
Nike
North Face
Patagonia
Performax
Puma
Reebok
Russell Athletic
Saucony
Skins
Speedo
Supre
Target
Under Armour
Other
Adidas
0%
30
Which brands do you currently own?
0%
25.00%
50.00%
75.00%
100.00%
0%
25.00%
50.00%
75.00%
100.00%
Part 2: Where, what, and why people are
buying?
!
Market share analysis for consumers’ most recent sporting goods purchase;
preferred buying destinations across sporting goods/apparel product categories;
key drivers/motives for buying at each destination
ASGA | Industry Snapshot Research
31
Purchase destinations
% of consumers buying at each destination and top 5 market share for each destination
Where did you purchase your most recent clothing item to wear during sports or exercise?
Bricks and
mortar:
Online
7.6%
92.4%
32
Speciality sports
store:
General clothing
store:
48.3%
44.1%
Destination
Market
Share
Rebel Sport
36%
Amart
Allsports
19%
Athletes
Foot
5%
Lorna Jane
4%
Sports Co
3%
Destination
Online, but not
sure where
based:
OS site:
Australian site:
3.9%
3.3%
0.4%
Market
Share
KMART
29%
Target
27%
BigW
15%
Myers
4%
Cotton On
Body
2%
Destination
oo.com.au
Market
Share
10%
Destination
Market
Share
ebay.com
26%
Amart AllSports
5%
wiggle.com
16%
Catch of the Day
5%
Nike
16%
Rebel
5%
Paul’s
5%
Purchase destinations
% of consumers buying at each destination cut by age group
Where did you purchase your most recent clothing item to wear during sports or exercise?
Key finding
•  Online buying rates for sports clothing are highest in middle-aged consumers (around 10% among
35-55 years olds), and are lower in younger and older consumers.
33
Purchase destinations
% of consumers buying at each destination and top 5 market share for each destination
Where did you purchase your most recent pair of sneakers?
Bricks and
mortar:
Online
11.5%
88.4%
Speciality sports
store:
General dept.
store:
61.3%
27.1%
Destination
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Market
Share
Destination
Australian site:
OS site:
3.6%
6.8%
Online, but not
sure where
based:
1.1%
Market
Share
Destination
Market
Share
Destination
Market
Share
Rebel Sports
Amart
Allsports
29%
k mart
19%
Ebay
11%
wiggle.co.uk
17%
13%
BigW
13%
New balance
11%
Amazon.com
11%
Athlete’s foot
12%
Target
8%
ozsales.com.au
11%
Ebay
11%
Footlocker
6%
Haris Scarfe
7%
Rivers
11%
niketown
11%
Nike
4%
Myers
6%
Eastbay
8%
pay for less
6%
Purchase destinations
% of consumers buying at each destination cut by age group
Where did you purchase your most recent pair of sneakers?
Key finding
•  Online buying rates for sneakers/runners are significantly higher in younger consumers, having
reached 15% among 18-24 year olds (vs. 6% in 55+ consumers)
35
Drill down into online purchasing:
Sporting goods compared to other retail categories
How does Australians’ online purchasing of sporting goods compare to their online purchasing in other
retail categories?
The figure below integrates the Empirica/ASGA survey findings with online purchase rates found in other
retail categories. The estimates for these additional retail categories come from research conducted by
Citibank (2010) and Morgan Stanley (2011).
Sources: Empirica Research, Morgan Stanley, Citibank, National Retail Association
36
Drill down into online purchasing:
Sporting goods and the Low Value Threshold
Is the “low value threshold” on imports driving Australians to buy sporting goods from
overseas websites?
• 
Our survey estimates of Australians’ rates of overseas online purchasing of sporting
goods (3.3% for apparel; 6.8% for footwear) are in line with estimates generated by
analysing air cargo consignments in the “low value” category (LVCs).
•  (LVCs are foreign goods imported in consignments that are valued at $1000 AUD
or less and hence avoid GST, customs duties, and other associated fees.)
• 
According to the Centre for International Economics (CIE, 2011), 7% of air cargo
consignments destined for individual Australian homes are in the “sporting goods”
category.
• 
We note that an additional 41% of consignments to individuals are in the “textile and
fashion” category. A proportion of this category presumably includes sporting apparel
items.
• 
Thus, the actual percentage of overseas online purchases in sporting goods/apparel
likely exceeds 7%, and perhaps by a significant margin.
• 
Ernst and Young estimate that the low value threshold will cost up to 33,400 retail jobs
in Australia through 2015 and will result in forgone GDP of between 3.9b and 6.5b.
Sources: CIE (2011) and Ernst and Young (2012)
37
Consumer motives/drivers for buying at each destination
Respondents described where they would buy a variety of sports apparel and footwear items. They then
described why they would buy at their chosen destination. We coded these motives to identify the top
drivers for buying each product type at each destination. These data are presented below…
Top motivations for buying sneakers at each destination…
38
Consumer motives/drivers for buying at each destination
Top motivations for buying compression wear at each destination
39
Consumer motives/drivers for buying at each destination
Top motivations for buying shorts at each destination
40
Consumer motives/drivers for buying at each destination
Top motivations for buying tops at each destination
41
Consumer motives/drivers for buying at each destination
Top motivations for buying tennis rackets at each destination
42
Part 3: From the track to the streets
!
The shift towards “sportswear as streetwear
” – where and for whom is sportswear
acceptable outside the exercise context?
ASGA | Industry Snapshot Research
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Sports attire outside the exercise context
Consumers are becoming more relaxed about “where and when” they wear sports attire in
non-exercise related settings/activities. This attitudinal shift represents a major opportunity
to expand the category. To provide hard metrics on this shift, we measured whether
consumers think it’s “OK” versus “not OK” to wear a range of different sports outfits in a
range of different settings, from doing housework to having coffee with friends.
Key finding
•  Compression wear is not accepted outside an exercise context.
44
Sports attire outside the exercise context
Key finding
•  Sports shorts and tops readily accepted by consumers outside the exercise context, especially in
the home setting.
45
Sports attire outside the exercise context
Key finding
•  Tracksuit readily accepted by female consumers outside the exercise context; acceptance more
mixed among male consumers.
46
Sports attire outside the exercise context
Note: The yoga outfit question was only asked of female respondents
Key finding
•  Yoga outfit readily accepted as housewear by female consumers, but not readily accepted as
streetwear.
47
Sports attire outside the exercise context
Gender and age matter!
•  The figures below represent averages across all of the non exercise related settings (i.e.,
walking the dog, coffee with friends, housework etc). Thus, a higher score means it’s
more acceptable to wear each outfit when doing non exercise related activities.
•  The figures show that age and gender interact.
•  As men get older, they see sports attire as more permissible in non-exercise settings.
•  As women get older, their attitudes remain relatively stable for most categories, but grow
less permissive for yoga outfits. (Note: this pattern does not apply to compression wear)
48
Part 3: Counterfeit sporting goods: Will
Australian consumers
buy in?
!
Consumer perceptions of counterfeit availability; willingness to buy counterfeit;
cues that signal counterfeit to consumers; attitudes towards greater government
intervention.
ASGA | Industry Snapshot Research
49
Counterfeit sportswear
Perceptions of counterfeit availability in Australia
Australian consumers are generally aware that counterfeit sporting goods are available
here. We asked them how likely it is that counterfeit sporting goods are sold at each of the
destinations shown in the figure below…
Key findings:
•  Consumers accurately perceive
the presence of counterfeit
sporting goods at Australian
street markets.
•  Consumers may underestimate
the presence of counterfeit at
generic online retailers and
generic sports stores.
•  Consumers may overestimate
the presence of counterfeit at
major retailers (e.g., Rebel) both bricks and mortar and
online.
•  Despite awareness of
counterfeit’s presence,
consumers underestimate their
personal exposure to it. (See low
likelihood ratings for “the places
I shop”).
50
Counterfeit sportswear
Willingness to buy counterfeit
Respondents were presented with an image of an
Asics gel runner and were asked to imagine they
found a counterfeit version that they felt was about
the same quality as the real product.
We then asked them what discount from the RRP of
$180 they would need to buy the counterfeit version.
Respondents could also tick “I wouldn’t buy the
counterfeit at any price”
Key findings:
•  Overall, only 24% of consumers indicate they
would not be willing to buy the counterfeit Asics
under any level of discount.
•  Willingness to buy counterfeit is highest in young
consumers (under 24 years), where less than 15%
wouldn’t buy the counterfeit under any level of
discount.
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Counterfeit sportswear in Australia
Counterfeit cues – bricks and mortar setting
When buying sporting goods/apparel in a store, what are the main cues that signal the
product might be counterfeit?
(Note: word size indicated frequency of mention by consumers)
52
Counterfeit sportswear in Australia
Counterfeit cues – online
When buying sporting goods/apparel online, what are the main cues that signal the product
might be counterfeit?
(Note: word size indicated frequency of mention by consumers)
53
Counterfeit sportswear in Australia
Counterfeit – general attitudes and policy support
Key findings:
•  Consumers view small Australian retailers and
major brands as the major victims of
counterfeit sporting goods (see Figure top
left)
•  On average, consumers support stronger
Government action on preventing counterfeit
from entering the country, although not by
large margins (see Figure bottom left).
•  A majority support lowering import tariffs,
although the strength of this support is
modest (see Figure bottom left).
54
Trends in sports participation
!
Participation rates in organised and non-organised sport and exercise
ASGA | Industry Snapshot Research
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Trends in Australian Exercise and Sports Participation
ABS Time Use Studies reveal declining minutes per day spent on sports/exercise!
Activity
1997
2006
Males
Females
Males
Females
Sport and outdoor activity
(mins/day)
33
20
25
17
Total free time (mins/day)
328
304
308
284
Top forms of exercise and % participation in pop. over 15 years
!"#$%&'()*!+(!,"$-(./0(1&%$&.2"/'()(3-.232%.4("5&$56&7("8()#3-$.46.(9:;<<=((
56
Australian participation rates in sport and exercise
Percentage and raw numbers of participants: Organised and nonorganised sports/exercise.
!"#$%&'()*!+(!,"$-(./0(1&%$&.2"/'()(3-.232%.4("5&$56&7("8()#3-$.46.(:;<<((
57
Organised sports and physical activity
Trends over time…
• 
• 
• 
Over the past decade, the percentage of the
population participating in organised sport
has declined from 27% in 2001 to 26% in
2010.
Total Australian
population aged
15 years and over:
17.34 M (100%)
Due to population growth however, the raw
number of participants in organised sport
has increased slightly.
Involved in
organised sport or
physical activity:
Males’ participation in playing roles has
dropped 3% points in the last decade, to
24%, but has remained stable in females
(20%).
4.52M (26%)
12.82M (74%)
Involved in a
playing role:
Involved in a nonplaying role:
3.82 M (22%)
1.56M (9%)
Involved in a
playing role only:
2.95 M (17%)
Involved in both a
playing and nonplaying role:
!"#$%&'()*!+(>/5"45&?&/-(6/(@$A./63&0(!,"$-(./0(BCD36%.4()%256-D(
58
Not involved in
organised sport or
physical activity:
.87M (5%)
Involved in nonplaying role only:
.69M (4%)
Organised sports and physical activity
Quick Facts: The 4.52 million Australians and organised sport are!
•  More likely to be involved if they were born in Australia (30% involved) than born in
another English speaking country (25%) or a non-English speaking country (11%).
•  More likely to be involved if they’re male (29%) than female (24%)
•  Less likely to be involved if they live in a capital city (25%) than outside one (28%)
•  More likely to be involved if they’re employed (30%) than unemployed (26%)
•  9% receive some type of payment for their involvement
•  Among those in playing roles, 49% are involved for 3-9 hours per week
•  Among those in non-playing roles, 41% have completed a course or qualification relevant
to their role and 60% are involved with school or junior sports
59
Concluding remarks!
ASGA | Industry Snapshot Research
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Concluding remarks
ASGA and Empirica Research hope the findings presented here will assist readers in navigating the
Australian sporting goods market in the year ahead.
We invite you to make contact to access additional resources.
For information regarding ASGA’s proprietary market intelligence surveys, or for inquiries about ASGA
membership, please contact::
The Australian Sporting Goods Association
Brad Kitschke - Executive Director
767 Springvale Rd
Mulgrave, VIC
3170
asga.com.au
For questions regarding the consumer survey presented in this report, or for other research-related
questions, please contact:
Empirica Research
Dr. David Neal – Founding Partner
[email protected]
214 Kerr Street
Fitzroy, VIC
3065
empiricaresearch.com.au
61
!
ABOUT EMPIRICA RESEARCH
62
About Empirica Research
Empirica injects academic, evidence-based research into commercial projects.
Empirica Research, based in Melbourne and Miami, is a full service consumer and social research firm. We have
diverse range of clients across Australia and the US. We offer tailored research solutions, innovative techniques, and
our unique “Think Tank” of leading marketing professors from around the world.
We maintain strong ties to the academic world, publish in academic journals, and our Founding Directors have PhDs.
Our work is diverse, but our philosophy across these projects is the same: inject academic, evidence-based research
into commercial projects while keeping a clear focus on real-world, actionable insights.
Cassie Govan, Ph.D.
Founding Partner
David Neal, Ph.D.
Founding Partner
empiricaresearch.com.au
63
Anna Coster, M.A.
Director of Consumer Research
Our clients include…
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Our work has been featured in…
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Thank you.
!
ASGA | Industry Snapshot Research
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