Market for Sports Equipment
With the mega events coming to the country, there is an encouragement not only in the sports practice, but also in the sports market in Brazil. In this article we will present you figures and aspects of this market.
Stimulated by the mega sports events that Brazil will host in the next four years – the Soccer World Cup, in 2014, and the Olympic Games, in 2016 –, the market for sports goods and equipment has been increasing in the last few years.
The market in Brazil
The World Cup and the Olympic Games are, alone, major opportunities for sportive brands to sell billions in clothes, sneakers, official team shirts and other products. Having both events in one place with a space of two years between them increases even more the sales potential.
Brazil is in the top 10 list of countries that consume sports goods, being equivalent to the performances of Italy and South Korea. The Brazilian market of clothes, footwear and equipment moves over USD 10 billion per year, what represents a 3% share of the worldwide market of USD 315 billion.
The expectation is that until the events happen, this market will grow even more, for both national and international companies. According to the American consultancy NPD, the forecast is that Brazilian market increases from 5 to 10% per year until 2014, reaching the mark of USD 14 billion by the year of the World Cup.
Also, according to Nike's director Mário Andrada, the company's revenue increases at least 30% in year of World Cup, mostly because of the sales of official national teams shirts. Nike is the official sponsor of Brazil's National Soccer Team.
Popular consumption
Even though famous athletes bring fame to the big companies, their profit comes from the so-called 'products of sportive style', which are the ones that are adapted to consumers. These consumers aren't just people who exercise, but also people that have athletes as their inspiration for lifestyle.
Half of the total income of manufacturers in Brazil is represented by sportive footwear for the population, that daily wears the items. According to a research made by Ibope, almost 30 million Brazilians from ages of 16 to 64 buy at least one pair of sneakers every year, and 22% of them purchase four or more pairs per year.
The increase of the consumers' incomes is a main responsible for these numbers. In 2005, the group Cambuci, owner of the brand Penalty, created the brand Stadium, which sells football boots at BRL 49,00 for the classes D and E. The result couldn't be different than it is: Stadium's sales increase approximately 50% per year.
Online sales
A part of the sports market is made via internet. Sometimes, online stores offer lower prices of the same sports goods in comparison to the physical stores. Considering this aspect plus the agility and facility of the service, the online stores have been gaining ground in Brazil.
A strong reason to invest in this sector is its costs. It's not necessary to pay some bills like water, light or rent, things that would be charged if there was a physical store. But even though there are many online stores for others sectors, in the sports market it is still a minor responsible for sales, with few websites specialised in the area.
Most items sold
With the increase of the interest in MMA (Mixed Martial Arts) and the fact that there are a lot of Brazilian MMA fighters, especially in UFC (Ultimate Fighting Championship), the sales of wrestling products increased in both on-line and physical stores. After them, there are gym clothes and equipments.