Industry Overview
The sports goods industry in India is largely concentrated in the cottage and small scale sectors. This has been an impediment to growth of the industry, mainly because of lack of necessary infrastructure, technology, marketing strategies and continual upgradation. Investments in the sector have also, quite obviously, been on the downslide. While the Indian sports goods industry has grown significantly over the years, a shift in manufacturing trends, away from traditional products to more value-added products would help the domestic industry sustain global challenges. Technology, coupled with suitable government initiatives, leading to cost-effective production techniques, would be the prerequisites for this highly evolving industry.
Market Characteristics
Consumer choice is perceived as the main driver of demand for sports goods. However, this has been the Indian domestic market’s biggest letdown. Lack of sports culture at various levels is also an impediment to development of the industry. The majority of demand for sports goods in India is by educational institutions and government departments like the police or railways. Low per capita income and concentration of the population in rural areas are some of the main factors for a slow take-off in demand for sports products.
Although the domestic scenario is yet to show significant improvement, exports of sports goods from the country has grown over the last few years. While inflatable balls occupy a major chunk of exports, cricket bats, hockey sticks and related protective gear follow in that order. The estimated domestic market for sports products is Rs. 17,050 lakhs.