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Attractiveness Index: Explanation ............................................................................................. 7 Industry Growth/performance ....................................................................................................... 8 Chart 6 Chart 7 Chart 8 Chart 9 Chart 10 Chart 11 Chart 12 Chart 13 Chart 14 Chart 15 Chart 16 Chart 17 Chart 18 Chart 19 Chart 20 Chart 21 Chart 22 Chart 23 Chart 24 Chart 25 Chart 26 Chart 27 Chart 28 Chart 29 Chart 30 Chart 31 Key Industry Indicators 2004-2010 ............................................................... 8 Key Industry Indicators Annual Growth 2005-2010 ...................................... 9 Turnover of Local Producers and Nominal GDP 1997-2016 ........................ 9 Total Market Dynamics and the Role of Local Producers........................... 10 Imports and Exports 2004-2010 ................................................................. 10 Import vs Export Growth ............................................................................. 11 Turnover of Local Producers by Sector 2004-2010 .................................... 11 Industry Sectors Growth Indices 1997-2016.............................................. 12 Number of Local Producers by Size of Enterprises 2004-2010 .................. 13 Local Producers Turnover by Size of Enterprises 2004-2010 ................... 14 Buyers Expenditure on Sports Goods Industry 2004-2010........................ 15 Annual Growth of Buyers Expenditure 2004-2010 .................................... 16 Buyers Share of Sports Goods Market 2004-2010 .................................... 16 Buyers' Investment in Sports Goods Industry 2004-2010 .......................... 17 Bargaining Power: Buyers 2010 ................................................................. 18 Buyers: Households & GDP 1997-2016 ..................................................... 19 Buyers: Education & GDP 1997-2016 ........................................................ 19 Buyers: Education Spending on Sports Goods .......................................... 20 Buyers: Agriculture & GDP 1997-2016 ....................................................... 20 Buyers: Agriculture Spending on Sports Goods ......................................... 21 Main Industry Costs and Suppliers 2004-2010 ........................................... 21 Annual Growth of Main Industry Costs and Suppliers 2005-2010 .............. 22 Spending on Suppliers as Share of Total Industrys Costs 2004-2010....... 22 Bargaining Power: Suppliers 2010 ............................................................. 23 Suppliers: Plastics Products & GDP 1997-2016 ......................................... 24 Suppliers: Plastics Products Cost and Price Dynamics .............................. 24
Buyers ........................................................................................................................................ 15
Suppliers .................................................................................................................................... 21
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Suppliers: Corrugated Paper, Paperboard and Containers & GDP 1997-2016 .................................................................................................. 25 Suppliers: Corrugated Paper, Paperboard and Containers Cost and Price Dynamics .......................................................................................... 25 Suppliers: Basic Precious and Non-ferrous Metals & GDP 1997-2016 ...... 26 Suppliers: Basic Precious and Non-ferrous Metals Cost and Price Dynamics ................................................................................................... 26 Supply Structure ( million, year 2010) ...................................................... 27 Bargaining Power of Buyers and Suppliers ................................................ 28
Bargaining Power: Explanation ............................................................................................... 29 Future Outlook............................................................................................................................ 30 Chart 38 Forecasts 2011-2016 ................................................................................. 30
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Euromonitor International
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increasing industry profitability, with the profit margin as share of turnover EBIDA increasing from 13 to 22% over the 2000-2009 period. It is projected that the sports goods industry will decline by a further 1-2% in 2010, due to falling purchasing power of British consumers who are likely to reduce spending on nonessential items such as sport goods during the economic slowdown. However, the industry should exhibit the first signs of recovery in 2011-2012, as demand from households is expected to increase due to the upcoming summer Olympic Games, which will be held in London in 2012. Increasing import penetration and global giants entering markets for niche sports equipment are very real threats, which will further dampen growth of the local industry. Chart 1 Hierarchical Position of Sports Goods Industry
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DEFINITIONS
Category: D - Manufacturing Division: 36 - Furniture & manufacturing n.e.c. Group: 369 - Manufacturing n.e.c. Class: 3693 - Sports goods This class includes:
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Ski equipment and roller skates: cross-country skis snow skis ski-bindings, ski brakes and ski poles ice skates (including skating boots with skates attached) roller skates (including skating boots with skates attached) parts and accessories of ice skates and roller skates Water-sport equipment: water-skis, surfboards, sailboards and other water-sport equipment Athletics equipment: gymnasium, fitness centre or athletics articles and equipment Other sports equipment: leather sports gloves, mittens and mitts golf clubs and other golf equipment (including golf balls) articles and equipment for table tennis (including bats, balls and nets) lawn tennis rackets badminton, squash and similar rackets (including short-tennis rackets) balls other articles and equipment for sport and open-air games Fishing equipment: fishing rods, hooks and reels line fishing tackle, fish landing nets, butterfly and similar nets Exclusions: boat sails; sports clothing; saddlery and harness; sports footwear; weapons and ammunition; sports vehicles other than toboggans and the like; boats; billiard tables and bowling equipment; whips and riding crops.
ATTRACTIVENESS INDEX
Chart 2 Attractiveness Index of Sports Goods Industry Among Other United Kingdom Industries in the Category
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Attractiveness Index of Sports Goods Industry Among Other United Kingdom Industries in the Category
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Chart 4
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Chart 5
Attractiveness Index of Sports Goods Industry Among All United Kingdom Industries
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categories, which exhibit lower volatility and are less sensitive to economic downturn. The average ratio of private final consumption expenditures to business purchases of the product is used to evaluate the sensitivity of the specific production category. The durability of industrys production: an additional measure of industrys sensitivity to economic downturn. The durability of the good is determined by the period length of its service / usability; for durable or semi durable goods the service period can be extended (contrary to non-durable goods) and thus the demand for durable or semi-durable goods would fluctuate more and react pro-cyclically in the light of economic changes. Industrys resistance to changes in countrys GDP: it is measured as the elasticity coefficient; how sensitively the industry reacts to changes in countrys GDP. Industrys dependency on other industries (forward linkage): the variable, measured as the horizontal sum of all coefficients of Leontiefs matrix inverse. It measures the cumulative output decrease in the sector, if the final demand for the production of all sectors were to decrease by one unit. In the phase of economic downturn, it is a measure representing the power of other industries to affect the industry of interest. Industrys ability to affect other industries in the economy (backward linkage): measured as the vertical sum of the coefficients of Leontiefs matrix inverse. It shows how much influence the industry has on other industries and how strong these links are. It measures the extent to which a unit change in the demand for the product of the sector causes production increases in all the sectors of the economy. Every industry that affects other industries strongly could be called the cornerstone of the economy and thus having more influence on the overall economic situation than the other industries. Being one of the key industries in the economy gives it additional strength and resistance to economic shocks. Each measure of industrys performance is compared across all industries in the country and is then attributed to a corresponding percentile judged on its performance (scale from 1 to 100). The better the value of criteria is the higher percentile the industry reaches. The percentiles are then weighted by their relative importance and the final score is calculated as the weighted average.
INDUSTRY GROWTH/PERFORMANCE
Chart 6 Key Industry Indicators 2004-2010
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Source: Note:
Euromonitor International PPI (Producer Price Index) is a measure of the average change in selling prices over time received by domestic producers of goods and services.
Chart 7
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Euromonitor International EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is a measure of a company's earnings that ignores the interest expense, profit taxes, depreciation and amortization.
Chart 8
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Euromonitor International Shaded areas mark historic slowdown years and current economic downturn.
Chart 9
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Euromonitor International Imports CIF (Costs, Insurance and Freight) is imports value with freight, insurance and other costs incurred during transportation of goods from the port of origin. Exports FOB (Free on Board) is exports value including freight cost up to the port of origin but excluding all other costs.
Chart 11
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INDUSTRY SECTORS
Chart 12 Turnover of Local Producers by Sector 2004-2010
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Chart 13
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COMPETITIVE ENVIRONMENT
Chart 14 Number of Local Producers by Size of Enterprises 2004-2010
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Chart 15
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BUYERS
Chart 16 Buyers Expenditure on Sports Goods Industry 2004-2010
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Source: Note:
Euromonitor International Other sources of revenue include: remaining buyers expenditure on industrys products/services, and changes in buyers inventories. Here Investment refers to gross fixed capital formation, excluding change in stock.
Chart 17
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Chart 18
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Chart 19
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Chart 20
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Euromonitor International The bargaining power table enables the consideration of all main bargaining power evaluation factors, supplementary to those shown in the bargaining power chart below. By looking at all major factors affecting the industrys relationship with buying industries, the table helps to determine the industrys ability to bargain with and pressure its major buyers.
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Buyers share in industrys market: expressed as a percentage share of total market size, this reveals which are the most important buyers for the industry under review. The share is proportional to the potential bargaining power that the buyers might have. Industrys share in buyers costs: expressed as a percentage share of total intermediate buyers costs, this shows how important the industry under review is to each buyer, relative to their other suppliers. The higher the share, the stronger potential bargaining power the industry under review might have against its buyers. Number of potential buyers: the figure reveals how many companies the industry under review could be potentially selling to. The number of potential buyers is proportional to the bargaining power of the industry under review. Level of concentration: expressed as the percentage of total industry output produced by large companies, this figure shows the degree of concentration of the buyers market. The higher the figure, the more production is created by large companies, meaning that the industry has a lower ability to switch and find new buyers. Import penetration: expressed as a percentage of imported products in the buyers market, this shows how the buying industry is pressured by imported goods. The higher the percentage, the smaller the market share that local buyers account for, thus giving them lower bargaining power. Chart 21 Buyers: Households & GDP 1997-2016
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Euromonitor International
Chart 22
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Chart 23
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Chart 24
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Chart 25
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SUPPLIERS
Chart 26 Main Industry Costs and Suppliers 2004-2010
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Chart 27
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Chart 28
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Source: Note:
Euromonitor International Intra-industry trade (the industry itself is among its major suppliers) refers to the exchange of products within the same industry definition range. The industry classification can include a wide variety of supply chain components from raw materials to finished or semi-finished goods. Consequently, it is not uncommon that one part of a product is produced by one company and then sold to another enterprise in the same industry to be included in the production of a final product. This trade enables the industry players to specialise in a limited range of production and reap the advantage of increasing returns.
Chart 29
Source: Note:
Euromonitor International The bargaining power table enables the consideration of all main bargaining power evaluation factors, supplementary to those shown in the bargaining power chart below. By looking at all major factors affecting the industrys relationship with supplying industries, this table helps to determine the industrys ability to bargain and pressure its major suppliers.
Spending on suppliers: expressed as a percentage share of the industrys intermediate costs, this reveals which are the most important suppliers for the industry under review. The higher the share, the stronger the potential bargaining power that suppliers have. Industrys share in suppliers market: expressed as a percentage of suppliers total market size, this shows how important the industry under review is to each supplier. The higher the share, the stronger the potential bargaining power that the industry under review might have with its suppliers.
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Number of potential suppliers: this figure reveals how many companies the industry under review could be potentially dealing with, for a specific input. The higher the number of suppliers per company of the industry under review, the higher the bargaining power of the industry under review. Level of concentration: expressed as a percentage of total industry output produced by large companies, this figure shows how concentrated local suppliers are. The higher the figure, the more production is created by large companies. Consequently, the higher the figure, the lower is the industrys ability to switch and find new suppliers. Import penetration: expressed as a percentage of imported products in suppliers market, this shows how the supplying industry is dependent on imported goods. A higher percentage implies a lower bargaining power for local suppliers. Chart 30 Suppliers: Plastics Products & GDP 1997-2016
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Chart 31
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Chart 32
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Chart 33
Suppliers: Corrugated Paper, Paperboard and Containers Cost and Price Dynamics
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Chart 34
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Chart 35
Suppliers: Basic Precious and Non-ferrous Metals Cost and Price Dynamics
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Chart 36
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BARGAINING POWER
Chart 37 Bargaining Power of Buyers and Suppliers
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Buyers Shows how the revenue received from each of the top three buyers is important to the market of the industry under review. Expressed as a percentage of the industrys market size; The higher the percentage, the larger the market share of the buyer, thus possibly giving it higher bargaining power with regards to the industry under review. Suppliers Shows how the expenditure on each of the three suppliers is important to the intermediate costs of the industry under review. Expressed as a percentage of total intermediate costs; The higher the percentage, the larger the share of costs related to the supplier, thus indicating a potentially higher bargaining power against the industry under review. Pressure towards buyers and suppliers (represented on vertical axis) Buyers Shows how important the industry under review is to each of the top three buyers costs. Expressed as a percentage of buyers total intermediate costs; A higher percentage indicates higher possible bargaining power for the industry under review towards its buyers. Suppliers Shows how important the industry under review is to each of the top three suppliers. Expressed as a percentage of total suppliers market; A higher percentage indicates higher potential bargaining power for the industry under review towards its suppliers.
FUTURE OUTLOOK
Chart 38 Forecasts 2011-2016
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Euromonitor International
Euromonitor International