Industry trends

Supported by trends evident in today’s society, the sporting goods industry will continue to grow. The continuous development of new and better products will keep Amer Sports and its brands at the cutting edge of the sporting goods industry for years to come.

According to NPD Group global retail sales of sporting goods, including sports equipment, accessories, apparel, and footwear were EUR 219 billion in 2008. The sporting goods industry has been affected by the challenging general economic conditions and general uncertainty in consumer demand. However, there are a number of underlying trends in the sporting goods industry which support Amer Sports’ strategy.

Demographic trends

In developed markets, average life expectancy has increased. With a good standard of living, people in developed markets are more likely to stay active longer and invest in high-quality sporting goods. The opportunities in emerging markets are based on their large and growing populations whose average disposable incomes and standards of living are expected to increase.

Health and fitness trend

There is currently a trend emphasizing balance between work and life, and healthier lifestyles. This provides Amer Sports with opportunities to develop products that make accessing healthier lifestyles easier and more enjoyable for consumers.

Technological advances and innovation

The ability to create new product technology and other performance improving features is a key driver of success in the sporting goods market. Given that participation rates in many sports are fairly stable, new innovative products are key to motivating consumers to replace their old products with new ones.

Outdoor-inspired trend

The popularity of outdoor activities will continue to grow in the future. Outdoor activities are often family experiences that are enjoyed by participants of all ages irrespective of gender. The outdoor-inspired trend is also a reflection of the broader environmental trend where people want to experience nature while they exercise.

Consolidation

Despite the industry consolidation that has taken place in recent years, the sporting goods market remains fragmented. The industry will continue to consolidate as smaller industry participants seek access to major retail channels and improved economies of scale in manufacturing and distribution in order to succeed. As a result of the consolidation trend, Amer Sports expects that competition in a number of product categories will increase in the short and medium-term as smaller participants consolidate into larger companies with greater financial resources.

Retailer and supplier relationships

There is an increasing trend amongst major retailers seeking to decrease their number of suppliers and benefit from reliable supply and customer service from their key suppliers. These retailers have also grown more demanding in terms of timely delivery of goods, customer service, inventory control, joint-promotional activities and in-store merchandising, such as product displays.