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Industry Background- Section 1
The industry dates back to the 19th century, when people started participating in various physical activities for competition and sports. The rise in popularity has led to the production of products using natural fibers. In the 1940s, the advent of synthetic materials made products lighter, more functional, and more durable. In the 80s and 90s, there were a lot of marketing efforts by brands in the sportswear industry, and one of the main strategies used was endorsing famous athletes.
The sportswear industry is one of the largest in the world. In 2022, it was estimated that the industry was approximately $182.01 million in terms of market size; by 2023, it is estimated that the market size will be $305.67 million (Yahoo Finance, 2023). The industry caters to customers’ needs, including fashion-curious individuals, athletes, and fitness enthusiasts. There are several key players in the sportswear industry. Over the recent past, there has been a shift in the industry whereby electronic sensors are being incorporated into sportswear products, and the main aim is to enhance consumers’ overall experience.
Using sensors improves sports and fitness activities since data and information are captured in real-time. Adidas uses its products’ Boost cushioning and Primeknit uppers technology to enhance its customer experience. Some key players who pose a competitive threat to Adidas include Puma, Under Armour, Umbro, Nike, and Reebok. There, brands compete competitively through forming strategic partners, innovation, and brand marketing.
The sportswear industry is subject to various trends and challenges, affecting consumer preferences and market dynamics. Political factors affect the industry, one of them being trade policies. The industry is dependent on international trade. Changes in trade policies will affect the availability and cost of raw materials, affecting the supply chain. Economic factors affect the industry, and one of the factors is consumer spending. The higher the disposable income, the more products will be purchased. Social culture is a factor that will dictate consumer preferences. Changes in fashion trends and growth in health and fitness have positively affected the industry. Agile strategies are necessary to address changes in market conditions.
Revenue
Source: https://www.statista.com/statistics/269599/net-sales-of-adidas-and-puma-worldwide/#:~:text=Thestatisticshowstheglobal,22.5billioneurosinrevenue.
References
Yahoo Finance. (2023). The sportswear market is expected to reach $305.67 billion by 2030, according to a 195-page report. https://finance.yahoo.com/news/sportswear-market-expected-reach-305-114200052.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAI6Jir_buBiB3u8bXzUqCWKdGwzq3KdXVYGwIwKX3E3SosXa3L0jPtEGQwUEGzUzX5Tu6g2z5p1umvwQJJIpyfHNFdMpoFpzau7KOjeZs4fa16jv7_eojDAAV8f7dBc-jbp68YUb_5EcnWXxQf7zLkQ27esmiKOXM_VPz9zyXbtI
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