A report by Key Note suggests the Olympics will have a far-reaching effect on sportswear sales.
By Laura Turner
11 July 2012
According to a recent report by market intelligence provider Key Note, the London 2012 Olympic Games are set to boost the sales of sportswear for the next 12 months.
CWB takes a look at the report’s key findings.
A recent report from market intelligence provider Key Note has revealed that the sportswear market is expected to see a leap in sales over the next 12 months as a result of this summer’s London Olympics.
Taking place in the UK between July 27 and September 9, 2012, the event will consist of 26 sports broken down into 39 disciplines. Overall, it is expected to attract over five million tourists to the UK and is estimated to help the sportswear industry grow by 3.8 per cent in 2012.
This is a welcome increase considering the impact of the recession on consumer industries such as the sportswear market, with consumers cutting spend on activities, resulting in less need for the appropriate sportswear.
Increased participation in sports activities obviously has a direct effect on the sportswear market in terms of sales. However, the report points out another positive side-effect of the Games, especially revalent to schools and children, is getting people more active and helping combat the UK’s worrying obesity statistics.
Figures from the government’s National Child Measurement Programme (NCMP) for England 2010/11 school year, speak for themselves, with over one fifth of children in Reception class (age four to five) being either overweight or obese.
By Year Six, (age 10 to 11), this figure has increased to one-in-three.
And the UK’s obesity forecasts don’t look much brighter, with statistics from the government publication, Tackling Obesity: Future Choices, anticipating 25 per cent of boys and girls under the age of 20 will be obese by 2050 if nothing is done to change the unhealthy habits of the UK population.
While there are government initiatives that have been established to attempt lowering the UK’s obesity rates, it is estimated that, in 2012, additional schemes will be rolled out – most notably among youngsters, who are believed to be most at risk – to help improve the nation’s health. In terms of the effect on sportswear, more incentives to get fit mean more in the way of sportswear sales.
It is also worth noting that Key Note identifies one of the preliminary strengths of the sportswear market to be the fact that sports remain compulsory for children in education in the UK; in terms of sales, this means a captured market, for which wearing suitable sportswear clothing and footwear is necessary.
In summary, the overall outlook is positive for the sportswear sector. Key Note estimates that, in 2011, the total sportswear market reached a value of £4.71bn, with sales of clothing accounting for the majority of the market at 71.3 per cent.
Furthermore, between 2012 and 2016, the value of the UK sportswear market is forecast to increase by 9.2 per cent, with sales reaching £5.34bn. Year-on-year increases will be evident, with initial growth of 3.8 per cent in 2012, largely boosted by the forthcoming Olympic and Paralympic Games.
Sports clothing will continue to be the largest contributor to the total market, which will result in sales reaching £3.83bn by 2016 and account for 71.8 per cent of the total sportswear market in 2016.
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