The sportswear market - Italy

1.2 Global Market Analysis

The global sportswear market was valued at USD ***.** billion in ****, and it is expected to reach an amount of USD ***.** billion in ****, growing at a CAGR of **.*%. The graph below shows the increasing trend that the global market for sportswear is forecasted to witness during the period from **** to ****. 

Sportswear Market - Global Size World, ****-****, in Billion USD. Source: ****

The global market for sportswear can be segmented according to different parameters. First and foremost, dealing with the different sorts of products included in such a market, it is possible to identify the following categories:

Tops and T-shirts; Pants and Tights; Surf and Swimmers; Sweaters and Hoodies.

The table below shows the percentage that each of the categories abovementioned represents in the total size of the market. 

Sportswear Market - Segmentation by Product World, ****, in %. Source: ****

In particular, the graph above shows that the global market for sportswear is not equally segmented into the different categories of products supplied. Indeed, apart from pants and t-shirts which cover almost the same proportion of the market size, swimmers and hoodies categories represent a smaller part of the global market under analysis. Furthermore, another sort of segmentation which can be performed on the market ...

1.3 The Italian Market

The Italian market for sportswear was valued at **.* million Euros in ****. The graph below shows the incredible upsurging trend witnessed by the market: in the period from **** to ****, the production value of the Italian sportswear market increased by almost ***%.

Sportswear Market - Production Value Italy, ****-****, in Million Euro. Source: ****

Thereafter, retail sales of sportswear fell by **% in ****, mainly because of the explosion of the pandemic. Indeed, Italian consumers prioritized essential products and were more cautious when purchasing apparel and footwear because of the high uncertainty due to the pandemic. However, sportswear proved to be a category relatively resilient within the fashion industry, experiencing a smaller decline in retail sales than the overall performance of the industry. The resilience of sportswear despite adverse market conditions in **** is tied to Italians' increased interest in wellness and fitness during isolation.

Furthermore, retail sales are expected to grow at a CAGR of *% in Italy over the next * years, and although sportswear will experience a recovery in retail sales in ****, it is estimated that growth rates will slow down and sales retail will not return to **** levels until ****. E-commerce has been the channel most used by consumers to shop in the sportswear segment, and the ...

1.4 Import and Export Analysis

In order to analyse the volumes of importation and exportation for the market under analysis, it is necessary to refer to HS Code **** - Track Suits, Swimwear, and Other Garments. The graph below shows a comparison between importation and exportations, as well as the trend experienced by the coverage rate, calculated as the ratio of exports divided by imports.

Sportswear Market - Import and Export Analysis Italy, ****-****, in Million Euros. UNComtrade

In particular, during the entire period under consideration (***), the value of exportations from Italy to other countries has been almost three times that of importations of goods in the country. The coverage rate has remained pretty constant during the period - around ***% - but then it decreases in **** when, due to Covid-**, relationships and trades with other countries became more difficult, and Italy had to face some barriers to export its good. Moreover, due to restrictions, lots of corporations in the sector remained closed for several weeks, therefore decreasing the quantity of goods produced and ready to be shipped to other countries. However, given the general primacy of exportations over importations, it can be concluded that the Italian market for sportswear presents a surplus in the trade balance.

Now, ...

1.5 Covid-19 Impact

The effects of Covid-** on the sportswear market in Italy played an impact even on the most important players of the sector. Due to the first lockdown, the estimated year-end losses of Italian sports industry companies (***). Naturally, companies working in the sector made large investments to find a solution to the situation going on and, the vast majority of them, welcomed the new trends in the behaviour of Italian people to adapt the supply of their products. In fact, as explained in the previous paragraph, with restrictions going on and forced to self-isolation, Italian people matured a real passion for home physical activities, showing great interest towards online coaching activities and similar services. Therefore, the entities operating in the sportswear sector decided to adapt their supply of products to these new trends, introducing digital platforms through which products could be sold to customers. According to a survey conducted by Il Sole ** Ore, of the sample analyzed, **% of the companies operating in the sector faced a path of digital transformation in ****, and another **% had planned to do so. In **% of cases, the investment was estimated between * and *% of each company's turnover, mainly involving online distribution channels, e-commerce and digital marketing, and also ...

2.1 Demand Overview

Considering the demand of sportswear in Italy, it is worth analysing the quantity of goods produced and sold in the country. The following graph shows the trend that such a demand has witnessed in the last * years.

Sportswear Market - Production Value Italy, ****-****, in Million Units. Source: ****

From the graph above, it can be seen that the units of goods produced and sold in the Italian market for sportswear have been fluctuating during the period from **** to ****. However, such a trend is totally correlated with those of the total number of legal entities and employees recorder in the sector, which are going to be analyzed in section *.* - Structure and Dynamics of the Market. In particular, these variables have experienced a slow decrease in their values until ****, when they reached their lowest values, to recover right after in ****, witnessing a proper expansion of the market under analysis.

On the other hand, the graph below analyses the proportion that the main categories of sportswear represent of the total number of goods produced. It can be seen that tracksuits for men hold the primacy, representing almost **% of the entire quantity of goods produced. On the contrary, skiing suits represents the least important ...

2.2 Demand Drivers

Dealing with the demand drivers related to the sportswear market, it is of first importance to consider how many people do sports in their free time. According to a research paper released by Istat in ****, there are an estimated ** million people aged three and older who play one or more sports, either continuously (***). Among men, **.*% play sports continuously and **.*% do it occasionally. For women, the percentages are lower: **.*% and *.*% respectively. However, as it can be seen in the table below, the practice of sports is highest among **-** year olds and tends to decrease with age.

The table above shows the percentage of people belonging to any of the age categories considered playing at least one sport, either continuously or occasionally. In order to have a clearer understanding about the key figures for this analysis, the graph below shows, for each of those age categories, the percentage of people (***) playing sports occasionally or continuously. 

People Playing Sports Italy, ****, in %. Source: ****

At this point, it is possible to infer a relevant predominance of young people playing sports continuously, compared to those older. However, the graph allows also to see that, for any categories of age, the percentage of people playing sports in ...

2.3 New Trends in Demand

Consumers are the main driver of business growth and the demand for sustainable and ethically manufactured products is growing among the younger generations.

Regarding Generation Z and Millennials - to say, people born from ****s to **** - **% of them are sensitive to sustainable issues, including packaging, environmental issues and sustainable lifestyles. In ****, **% of consumers chose sustainable products, up **% in ****. Moreover, **% of those generations selected respectful brands, compared to **% in ****, and **% avoided using plastic whenever possible, with **% of them buying items with less packaging and **% of them buying from brands that promote sustainable practices. Also, in ****, only *% of young customers claimed not to be interested in sustainability (***), and **% of them considered the environmental and social efforts of retailers. Eventually, **% picked products with a traceable and transparent origin, and **% of consumers selected clothing and footwear made from non-animal materials.

Despite the explosion of the pandemic, the relevance of sustainability for younger generations continued to increase. Therefore, considering all the figures introduced above, it can be inferred that the new trends in the demand for sportswear are mainly associated to the use of sustainable products, especially with regard to packaging, as well as to the capacity of the brands to manifest their commitment towards ...

3.1 Structure and Dynamics of the Market

In order to understand the structure as well as the most relevant dynamics of the Italian sportswear market, it is necessary to rely on the data related to ATECO **.**.* - Manufacture of Sportswear. In particular, analyzing the trend in the number of entities specialized in the sector operating in the Italian market, the graph below shows a slow decline in the total number of entities from **** to ****, when it reached its lowest value (***). Later, in ****, the graph below shows a recovery of the sector, with the number of entities going back to pre-**** values and also becoming much higher, reaching a value of **** entities in the country. The average growth rate associated with the number of entities available in the Italian market has been estimated at *.**% during the period from **** to ****. 

Sportswear Market - Number of Entities Italy, ****-****, in Units. Source: ****

Likewise, from the following graph, it can be inferred that a similar trend to the one presented in the total number of entities operating in the country has been also recorder by the total number of employees offering their service to the market.

Therefore, after an inflection in the total number experienced in ****, when the number of employees in ...

3.2 Value Chain

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The value chain reported above shows how the distribution of sportswear products in the Italian market. In particular, it allows identifying the importance of e-commerce and online channels, which were mainly developed at the explosion of the pandemic - as explained in section *.*.

3.3 Main Players

The following graph shows the proportion of the market owned by each of the main companies operating in the Italian sector of sportswear according to their market share.

Sportswear Market - Main Players Italy, ****, in %. Source: ****

From the pie chart above, we can see how the most important brands in the sector represent together more than **% of the entire industry. In particular, among them, Nike and Adidas cover the most relevant role, owning a market share of, respectively, **.*% and *.*%.

4.1 Typology of the Offer

Dealing with the Italian sportswear market, it is possible to list the following categories of products that are supplied within it:

Pants; Tracksuits; Jackets; T-shirts; Fleece Lining; Sweatshirt; Windbreaks and Softshells; Coats; Raincoats; Polo shirts; Shirts; Vests; Jerseys.

4.2 Pricing

In order to assess the consumer price index for the sportswear market, it is necessary to consider the broader category associated with ECOICOP **** - Garments, which also encompasses all the products traded in the market of our interest. The graph below shows the evolution in the trend of the consumer price index registered in the last five years.

Sportswear Market - Consumer Price Index Italy, ****-****, in Base **** = *** Source: ****

From the figures analysed, it can be estimated that the growth rate of the consumer price index over the *-year period under observation amounts to *.*%. Eventually, the table below shows, for any of the products listed in the previous section, an average price available in the market.

Category Price Range in Euros Pants **.** Jackets **.** T-shirts **.** Fleece Lining *.** Windbreaks and Softshells *.** Coats **.** Raincoats **.** Polo shirts **.** Shirts **.** Vests **.** [***]

4.3 New Trends in the Offer

According to a research paper released by PWC, as tools like digital sizing, consumer collaboration platforms and augmented reality are introduced and begin to converge, companies and brands should:

Offer a unique and distinct experience to those who are less digitally inclined; Forge new strategic partnerships across the industry; Formulate a strategy to address the opportunities and challenges that will arise due to the growing incidence of online shopping, as well as reviewing product ranges and offerings, supply chains and the role of the physical store; Invest in advanced network technologies to enable more sophisticated segmentation of customers; Integrate digital content, increasing the commercial impact of digital assets; Review the role of the physical store: security and convenience are key aspects of the shopping experience (***); Establish greater transparency in supply chains; Find new supply chain partners that adapt to changing consumer demands of consumers; Re-training staff so that they can better understand the customer journey end-to-end and provide consistent, brand-aligned service; More volatile buying habits: pay greater attention to quality and review the range and pricing of products; Develop sustainable products and services to build customer loyalty.

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5.1 Regulatory Framework

Dealing with sportswear and the regulation applicable to the subject, it is necessary to introduce and understand the law regulating the labelling process for textile products. The labelling and presentation of textile products is regulated by EU Regulation no. ****/****. In particular, the term "textile products" refers to all products which, in their raw, semi-finished, finished, or made-up state, are composed only of textile fibres, whatever the mixing or joining process used, and are assimilated to textile products and subject to the previous regulations concerning them:

Products containing at least **% by weight of textile fibres; Fabrics, in which the textile components are at least **% by weight, used for covering furniture, umbrellas and parasols and, under the same conditions, the textile components of multi-layer floor coverings, mattresses and camping goods, as well as insulating linings for footwear and gloves; Textile products incorporated in other products of which they form an integral part, provided their composition is specified.

The regulation does not apply to textile products:

Intended for export to third countries; Introduced in transit, under costumer control, in Member States; Imported from third countries to be subject to inward processing traffic; Given for processing, without being the object or transfer for consideration, to ...

6.1 Segmentation

• Nike
• Adidas
• Under Armour
• Decathlon Groupe
• Reebok
• Lacoste Groupe
• Arena
• Asics
• Basicnet Group Kappa
• Champion
• Diadora
• Fila
• Palm Angels (New Guards Group)