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SFW Report: Opportunities in Sports,
Fitness and Wellness (SFW) in India
28th February, 2018
Table of Contents
Page
S. No Content
No.
1. Executive summary 3
2. SFW market definition and inclusions 4
3. SFW historical growth and future growth projections 5
3. SFW growth drivers 6
4. SFW trends in 2017 7
5. PE investments in SFW 8
6. SFW market size across categories 9,10
7. SFW market size across different levels of GDP per capita in other countries 11
9. Key imperatives 12
10. Sources of input 13
11. Glossary 14
12. About 15-18

©Praxis Global Alliance | 2

Executive summary
• Theme of Sports, Fitness and Wellness is emerging with a large multi-$B opportunity in India (large market with robust growth drivers)
o Sized at ~USD 35B in 2016 and expected to grow @~17% CAGR to reach USD 90B by 2022
o Robust Demand growth drivers: affluence, sedentary lifestyle, increasing awareness about health and fitness, backed by
o Supply drivers: Development in sports infrastructure, more trainers, greater advertising spend backing sporting events
o Trend evident as new sports leagues are emerging, more corporates/residential complexes are creating facilities, new health focused TV
channels are seeing viewership growth and the mass consumer is diversifying beyond just cricket

• Across the consumer spectrum, the time to ride the SFW wave is now
o From the SFW trend seen in other countries, SFW market growth kicks in at USD 4K GDP per capita levels and starts to taper at USD
30-35K GDP per capita levels
o India, currently at a GDP per capita of ~USD 1.7K has massive growth headroom

• Opportunity is being created not just in SFW but more importantly, in the peripheral products/services like gear, apparel, food items
and several other brand extensions (>2.5 times the opportunity than Sports itself)
o Several brands have extended their brands and offerings to SFW and will create bigger plays (e.g. Harley gears > Harley bikes)
o Healthy food variants of several brands is already >25% of the staple flagship variants

• SFW is attracting investment not only from VC/PE but several profitable verticals like apparel, personal care and consumer services
are pumping in money to ride this growth wave
o Consumer services businesses (yoga, gym, spas and salons, ayurvedic centers, etc)
o Consumer products (yoga mats, organic foods, sports merchandise, etc)
o Specialized high-performance apparel and personal care goods (functional food, sweat-resistant apparel, marathon shoes, etc)
o Infrastructure (training academies, amateur sports facilities, coaching in schools, etc)

• Large brands and retail footprint already being created (e.g. Decathlon crossed Rs 1,000cr in sales). Realizing full potential from the
opportunity will entail diligent micro-segmentation, brand repositioning and technology led product/service innovation

Note: All data and references from this report should be attributed to ‘Praxis Global Alliance – SFW report 2018’ © Praxis Global Alliance | 3
Market definition: Sports and Wellness are complementary to each other with
Fitness traversing across
Wellness Sports

Spas Fitness Regimes Leagues/Recreational

and
Marathons
Services

salons Diet Yoga, swimming

clinics Kabaddi
Skin Gym
clinics
Football
Weight
Restaura loss Fitness dance types like Camping, trekking
nts clinics Zumba Pool

Health Apparel
Supple and
foods and Equipment
ments footwear
beverages and
merchandise
Products

Bags and
Organic Nutritio luggage
personal us and
care Diet
Anti bacterial
foods
Building paint technology Events Matches
material
Easy clean tiles
Infrastru

Activity/
cture

Clubs learning
centers

Source: PGA Labs research, Praxis analysis © Praxis Global Alliance | 4

SFW market is currently sized at ~USD 35B (2016); expected to grow at a CAGR of
~17% to reach ~USD 90B in 2022

15-16%
SFW market size split by categories (USD B) 90 Functional beverages
12-15%
0.8
20-25%
Sports equipment
1.1
2.5 20%
6 Beauty treatments
25-30%
8.0
Fortified/functional packaged food
20-25%
9
Sports (gate revenues, media rights,
9 20-25%
sponsorships, merchandising)
35 10 Herbal / Ayurvedic / Organic personal
18-20%
care products
0.34
30 0.56 0.43 Beauty centres
2 Adjoining 19 15%
2
3 opportunities are
3 Dietary supplements
3.2 >2.5x of Sports &
30 8 Sports infra itself
24 Sportswear
12%
12
Sports infrastructure
2015 2016 2017 2022(P)
Note: Sportswear includes non-activewear used for sports and unorganized segment

Source: World Food India, 2017, ASSOCHAM India, Euromonitor International as derived from newspaper articles, Praxis estimates, Praxis analysis © Praxis Global Alliance | 5
The SFW industry is driven by increasing affluence, sedentary lifestyle, increasing
awareness about fitness and development in sports infrastructure
Sedentary lifestyle
Increasing awareness about Development in sports
Growing affluence leading to increasing
health and fitness infrastructure
incidence of diseases

Household segmentation based • Diseases like Obesity, • Support from entertainment • Inflow of sponsorships
on annual HHI (M) Diabetes Type II, High blood industry, media and and funds from the
pressure, etc are rampant government has led to government have
305 due to sedentary lifestyles propagation of the theme catalysed development
267 16 Elite of sports
7 (>$30,800) % obese population % of Indian Millennials
33 Ministry of Youth
209 17 aged 15 years and Affairs and
Affluent over (India) 60%
3 40 61 Sports annual
7 ($15,400- budget,
17 30,800) 5% 45%
INR Cr
Aspirers 219
89 121 ($7,700- 2.10 6
140 % 21%
15,400) 193
Next Billion 8
($2,300 -
93 82 7,700)
55 2012 2015 Think Disapprove Disapprove 2017-18 2018-19
Strugglers leading a smoking drinking
(<$2,300) healthy life
2005 2016 2025E is a priority
Demand factors Supply factor
Note: 1 USD = INR 65, Millennials refer to the generation born between 1980 and 2000

Source: OECD Health Statistics, 2017 and 2014, BCG report, Goldman Sachs report, Praxis analysis © Praxis Global Alliance | 6
SFW as a trend is showing up daily in the consumers’ lives
Kids specific leagues and sporting Increasing inter and intra corporate
Emergence of new sports and leagues
facilities sports events

Increasing number of marathons and Sports icons beyond cricket attracting Health and wellness specific TV
other outdoor activities large number of followers channels and magazines

Running events in India (#)

1074

57%
700

385
270
176

2013 2014 2015 2016 2017

Source: IndiaRunning.com race calendars, Secondary research, Praxis analysis © Praxis Global Alliance | 7
As a result, SFW space has seen recent acceleration in investor interest
Health and wellness Fitness and sports

$4.5M $1.2M $53.9M $1M $38.9M $0.2M

Health tech company that Health platform providing Online platform selling
helps cure lifestyle Online counseling coaching, engagement Sports marketing, sports and celebrity Online fantasy sports
diseases and delivery consulting merchandise platform

$4.5M
$400K Platform that enables
several services verticals
Mobile app providing
Health and weight loss like digital payment,
coach mobile app
wellness, fitness, sensor
based gaming, etc
$2.4M $1.5M $12M $0.2M
workout videos for Sports and fitness centre
discovery and booking Sports management Publishes news article on
exercises without
platform service provider sports and tracks scores
equipments

$1.2M $3M $2M $0.5M $1M $0.2M

Largest content platform Provides access to E-commerce store for
An online counselling and
for mothers’ health and workout across 1000+ On demand sports video
sports accessories and Private label retailer of
emotional wellness
wellness in India Gyms and Fitness Studios live streaming platform equipment sports gear
platform
for a fee

Source: Secondary research, Praxis analysis © Praxis Global Alliance | 8

SFW, as a theme, is creating monetary opportunities across many categories
especially in Apparel, Personal care and Food Praxis Consumer Market map™

Indian consumer market Total market size of segments in the consumer market (USD B, 2017) Consumer spending in non-food
USD B (2017) ~ USD 620B
~1,020 OOH Media, 0.5%
~240 ~280 ~100
Luggage, 1% Auto parts, 0.4% Toys and games, 0.3% Animation and
100% gaming, 1%
Media and entertainment, 4% Furniture and fixtures, 10% Fitness services,
1%
90% Home and personal care, 7% Classifieds/brok
erage services,
Jewellery and precious stones, 13% TV, DTH, 9% 2%
Beauty services,
80% 3%
Travel and Tourism, 19%
Courier, express
Non- and parcel, 4%
70% Repair and
food, Durables, 22% maintenance, 21%
620
60%
Apparel and footwear, 28% High
demand from
50% SFW

Building material, 25%

40%

Restaurants and Low/some

30% dining, 59%
demand
Foo from SFW
20% Education, 40%
d,
400 Automotive, 31%
10%
Limited
demand
0% impact from
Expenses Capital purchases Services SFW

Source: Praxis Consumer Market Growth Database, Praxis analysis © Praxis Global Alliance | 9
SFW share in key consumer spend buckets is growing rapidly, plus new SFW
categories have emerged

Share of SFW within ‘organized’ key consumer categories (2016, USD B)

98

67

86
Sports, fitness and wellness

59

18
13
3
15 7.4 2 1.1 0.7
12 8 3 5.6 3 2 1.1 0.6
Education Apparel and Home and Food and non- Beauty services Sports Fitness services Toys and games
footwear personal care alc beverages

Note: Sports includes gate revenues, media rights, sponsorships and merchandising

Source: World Food India, 2017, ASSOCHAM India report, ET Bureau, Euromonitor International as derived from newspaper articles, Praxis analysis © Praxis Global Alliance | 10
India is approaching the SFW market growth inflection point that will not taper off
for a long time (typically growth tapers off at USD 30-35k GDP per capita levels)

Sportswear market size per capita for Functional food market size per capita
countries across GDP per capita for countries across GDP per capita
Sportswear market size per capita (USD)

Functional food market size per capita (USD)

Canada
(2017) (2004) UK (2004)
45 43
Germany Steep growth
UK 140.0
South Korea 134.3 prospect
128.0
Steep growth France
107.1
prospect
Japan
Italy 103.8
110.0 China (2012)
Vietnam 18
Curve dips in (2013)
ageing 17
economies only
Brazil
33.0

India
7.7 China
20.3 India (2016)
2
0 10,000 20,000 30,000 40,000 50,000 0 10,000 20,000 30,000 40,000 50,000
GDP per capita (USD) GDP per capita (USD)

Source: Euromonitor International as derived from International Food and Agribusiness Management Review and Qz.com article, MARDI, Praxis analysis © Praxis Global Alliance | 11

Key imperatives
For Investors (PE/ VC/ Family funds of related enterprises)
• How can VC/PE investors ‘spot the winners’ to the
attractive SFW trend?
• Based on the consumer journey, what whitespaces exist
in the consumer need (food/ apparel/ facility/ trainer/
other) that can be monetized?
• What are the expected adoption curves by sport
category? What are the related business incubation
opportunities?
• How can your current Consumer portfolio companies
extend their brand and products into SFW?
• How does Digital impact the Go-to-market on value chain,
product discovery and product delivery (including
conceptualization)? What additional capital needs does it
create for the business?
Contact us on contact@praxisga.com
to schedule a tailored discussion
For Consumer product and services companies
• How can one capture a larger share of wallet within the
existing customer/consumer base?
• How should one think of value chain as an asset and
not an impediment for market expansion?
• How can brands adopt ‘Unified Commerce’ to integrate
into Consumers’ lives more tightly? How can higher RoI
be realized from deeper customer engagement/ brand
development and increased digital marketing?
• How can a brand map customer needs and convert into
product - Agility with Relevance? How can it create a
targeted-yet-universal appeal (a la Nike)?
• What should be the operational optimization focus for
these retail efforts (operations and cusp with omni-
channel and tech enabled value chain)?
© Praxis Global Alliance | 12
Sources of input considered

1. Secondary Sources we used to study popular perspectives

• Press review: The Economic times, Financial Times, Business line, Financial Express, Mint
• IBEF
• World Food India, 2017
• ASSOCHAM India Report
• Euromonitor International as derived from different articles
• Tech-Sci research report
• Market Access Secretariat Global Analysis Report
• International Food and Agribusiness Management Review
• MARDI
• Statista
• KMPG: The Business of Sports
• PWC: Imperatives of growth, the wellness industry
• Nielsen derived from Economic Times Article
• Journal of Food Engineering

2. Praxis Consumer Market Model (proprietary)

3. Market visits and industry conversations (retailers, manufacturers)

©Praxis Global Alliance | 13

Glossary of terms
Term Description

SFW Sports, Fitness and Wellness

Functional Functional foods are foods that provide health benefits beyond basic nutrition due to certain
foods and physiologically active components
beverages

PE Private Equity; General term used for PE and Venture Capital (VC) investments

CAGR Compounded Annual Growth Rate

FY Indian Financial Year starting April 1st of one year and ending on 31st March of the next year

Cr Crore = 10 million

INR Indian Rupees

Note: 1 USD is assumed as INR 65 in all calculations

© Praxis Global Alliance | 14

About the authors
Nidhi Agarwal Madhur Singhal
Leader – Digital brands, Agile Consumer Ops Leader – Consumer and Digital
(Praxis Global Alliance)
Managing Director (Praxis Global Alliance)
EIR – YourNest Venture Fund, Founder –
Ex-Partner at Bain & Co, BCG
KAARYAH.com, Ex-Bain & Co, Honeywell, Airtel,
KPMG
• Deep experience with growth strategy, Go-to-
market and overall Digital/Analytics
• Pioneered tech enabled online brand building and
implementation
brand led value chain innovation
• >14+ years of experience in creating value for
• ~20 years experience in Strategy, tech-enabled
financial investors and family-run businesses
products and digitally integrated brand development
MBA (IIM Ahmedabad, Schulich School), B.Tech.
Chartered Accountant, MBA (Kellogg School); India’s
(IIT Delhi)
Top 30 Businesswomen 2016 by Business World,
CNBC Young Turk 2015

Praxis Global Alliance is a global business analytics, research and advisory firm. We believe that clients should get a very high ROI on research and advisory
spends. We do this by combining domain experts, technology and ‘lean cost’ delivery approaches.

Our Consumer practice covers the full basket (goods and services) of the consumer to bring most meaningful and current insights to our work with Financial
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©Praxis Global Alliance | 15

About Praxis Global Alliance™
Praxis Global Alliance is a global business analytics, research and
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technology and ‘lean cost’ delivery approaches.

Our expertise:
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Contact us
We will be happy to share perspectives Build together.
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Madhur Singhal Nidhi Agarwal Aryaman Tandon
Leader – Consumer and Digital, Mumbai Leader – Digital brands, New Delhi Leader – Digital and Analytics, New Delhi

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