Group 8

Priyashree dey
Bhavneet Singh
Mukesh Kumar
Partha Sreenivas
Jai Kiran Kumar

Decathlon
Contents
1.Introduction ........................................................................................................................ 1
1.1 Sports Goods................................................................................................................. 1
2.Macro Analysis .................................................................................................................... 2
2.1 Political ......................................................................................................................... 2
2.2 Economic ...................................................................................................................... 3
2.3 Social............................................................................................................................. 4
2.4 Technological ................................................................................................................ 5
2.5 Environmental .............................................................................................................. 6
2.6 Legal ............................................................................................................................. 7
3.Micro Analysis ..................................................................................................................... 8
3.1 Customer ...................................................................................................................... 8
3.1.1 Potential Market ..................................................................................................... 9
3.1.2 Available Market ..................................................................................................... 9
3.1.3 Target Market ......................................................................................................... 9
3.1.4 Penetrated Market.................................................................................................. 9
3.2 Competitor Analysis ...................................................................................................... 9
4.Conclusion ........................................................................................................................ 10
5.References ........................................................................................................................ 11
1.Introduction

Retailing of Sports Goods Market in India is growing due to the rise in per capita income,
changing lifestyle, and consumer preferences. India has been a manufacturing hub for
various sports products and brands sourcing which has tremendously increased.
The Indian sports goods retailing sector is becoming intensely competitive, as
more and more players are vying for the same set of customers and is witnessing a radical
transformation. The increase in the number of retailers across the country indicates that
sports industry will boom in a big way in the near future.
With increasing obesity levels in India.Sports and wellness which is considered a luxury is
more a way of life in the current scenario.

1.1 Sports Goods

Sports Goods are defined as tangible, physical products that offer benefits to consumers.
Conversely, services are intangible, non-physical products. Most sports products possess the
characteristics of both goods and services. Sports goods industry is comprised of all
establishments primarily engaged in retailing new sporting goods, health and fitness
e uip e t’s, apparels or hosiery, sports shoes various sports equipment and accessories
which are sold by sports good retailers and whole sellers. It is axiomatic that consumers
participate in the activities for which they buy various sports products

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2.Macro Analysis

2.1 Political

Laws, regulations and other government policies can have a number of positive or
negative effects on the retail industry. Government assistance, such as government-backed
loans and subsidies, can help fledgling retailers grow or allow an established company to
keep costs low for consumers. However, government policies can also hinder businesses by
imposing regulations that increase costs, such as requiring the development and integration
of new systems or procedures or establishing a minimum wage that small retailers may not
be able to afford.
The retail industry also relies heavily on government-supported road, rail and water

transport infrastructure to move goods and bring customers to retail locations

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 Year-on-year investment in sports

2.2 Economic

Retail sales are driven by the economic environment. A robust economy correlates to
an increase in consumers' disposable income, increasing sales and allowing retailers to sell
more valuable goods.

figPredicted GDP growth rate

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 According to OECD. Economic growth of around 7½% makes India the fastest-growing
G20 economy.

2.3 Social

Social media allows things to blow up or whittle away faster than ever.
Changes in social values and trends impact the sports goods retailers sell and how retailers
relate to consumers.
According to the survey conducted by Livemint(2016), There are more than 267
million households in the urban middleclass category. Each of this household contains
atleast one person between the age group of 6-60 years, with nearly 34% between the age
group of 15-34 age. Each user spends an average on INR 15000 yearly on sporting
equipment.
There is a drastic difference when one considers the demographic of people who are

interested in sports and who actually practice sports.

Sports not being the only focus, we also consider the gym equipment and people into gym.
Even though there is an increasing number of gyms and fitness centers. People initially
interested in getting into them seem high only 20% last 6 months, according to gympik.

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People consider jogging, walking, cycling or rather doing exercises at home. Hence there is
scope for the gym Equipment. Data with respect to people who follow Fitness channels
who view and subscribe seems to indicative/supportive of this notion.

2.4 Technological

Technological advancement has become increasing influence sports in general.

Customers moving into online market.
Use of technologies such as RFC,Online Payments,E-wallets.
Sport Technology Ex Dri-fit,Skins,Footwear technologies.

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2.5 Environmental

Environment is one of the critical factors which affect the make or break of retail market in
general. As more production will result in depletion of natural resources.
Government regulation on use of resources and natural elements for production. Coupled
with the case of Environmental pollution makes it all the more critical to consider the
environmental effect.

Different categorization of industries given above

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2.6 Legal

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3.Micro Analysis

3.1 Customer
As Reported Earlier in the social Analysis, a meager 1% of the 62% who are interested
in sport actually practice it.
The list below gives details about the most followed sports of India as of 2017.

Retailer should cater to the sports listed above for better sales and revenue.

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The other factors which Sport Retailer should be considering are

3.1.1 Potential Market

The potential market of Sports Goods in India is 62% population who are interested in
sports.

3.1.2 Available Market

The available market for sports goods in 267 million + household who are in the urban
middle class social status.

3.1.3 Target Market

The target market is the 34 % between the age group of 15-34.

3.1.4 Penetrated Market

1% of the population of India.

3.2 Competitor Analysis

Competitor analysis gives us an analysis of where the firm stands among the competitors
and strengths and weakness.
Adidas & Reebok-45% market share.
Nike & Puma-35%

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Remaining-20% is what is up for grabs with competitions from local players and lesser
known brands.

4.Conclusion
The potential for sports apparel and goods is huge in India.
Although the sports apparel/footwear floor is predominantly dominated by the big 4.
The gym and fitness is an area which Decathlon has an edge and also the different sports it
caters to as it provides all the sports listed in the most participated sports in India
Taking all these factors into consideration in term of monetary value where on an average
spend per person is INR 1500/year with a growth of .005% for 2018
The forecasted demand and revenue for 2018
Parameters Customer Revenue Decathlon Revenue
Potential Market 842,156,985 1269,551,654,887.5 <253,910,330,977.5
Available Market >267,000,000 >402,502,500,000 <80,500,500,000
Target Market 90,780,000 136,850,850,000 <27,370,170,000
Penetrated Market 1358137 2047392611.3925 <409,478,522.2785
Assumption: Avg used for calculations.

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5.References
Demographic data –
• www.livemint.com
• www.Populationpyramid.com
• www.Gympik.com
• www.smergers.com

• “po ts Retaili g i India: Opportunities, Constraints and the Way Forward

Reports-

• Ramneet Goswami, Divya “atija

By: Arpita Mukherjee, Tanu M Goyal,

• http://www.icrier.org
• The Busi ess of “po ts-KPMG ,
• Competition Mapping and Market Analysis for Sportswear
Financial Data-
Eco o ic Ti es ,
Wikipedia
www.businessoffashion.com

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