DEVELOPMENT ECONOMICS

Sports goods
OUTLINE
 Sports  Global soccer ball industry

 Type of sports  Major importers of sports goods

 Sports goods  Sialkot dry port exports table for 2010

 Sports industry in Pakistan  Sports industry and child labor

 Pakistan major exports  Sports industry and enviourment

 Sports goods export trend  Sports industry and electricity

 Football production in Pakistan  Conclusion

 Sports industry in Sialkot city

 Major exporters of sports goods in

Sialkot
SPORTS

 A sport is commonly defined as an organized, competitive, and skillful

physical activity requiring commitment and fair play. It is governed by a set
of rules or customs. In a sport the key factors are the physical capabilities
and skills of the competitor when determining the outcome (winning or
losing).

 The physical activity involves the movement of people, animals and/or a

variety of objects such as balls and machines
TYPE OF SPORTS

 Gymnastics
 Stacking
 Hockey
 Wall-and-ball
 Motorcycle racing
 Water sports
 Olympic Sports
 Ball Sports
 Polo
 Weightlifting

 Card Games
 Cricket

 Athletics (track and field)  Cycling

 Bat-and-ball  Fishing
 Bowling  Football
 Climbing
SPORTS GOODS
 Sports equipment is a general term for any object used for sport or exercise

 Sports goods include

 Balls

 Goals

 Flying Discs

 Sticks, Bats and Clubs

 Wickets and Bases

 Nets

 Rods and Tackle

 Protective Equipment

 Footwear
SPORT INDUSTRY IN PAKISTAN
 Pakistan is a giant exporter of sports goods".

 Most of the well-known sports companies like,

 Adidas
 Nike

get sports equipment prepared in Pakistan.

 In Pakistan, Sialkot is the sports industrial hub. About 99% of sports goods,
exported by Pakistan, are prepared in Sialkot

 Pakistan, once, was one of the biggest exporters of footballs. Even, Pakistan
supplied footballs for FIFA world cup as well.
PAKISTAN'S MAJOR EXPORTS (JUL-MAR)
[% SHARE}

2006-07 1996-97

61.5% 61.3%
Cotton
22.8% 15.6%
Others
1.6% 3.7%
Sports Goods
3.0% 6.1%
Synthetic Textiles
6.6% 5.6%
Rice
4.5% 7.7%
Leather
SPORTS GOODS
Value in ‘000’ US$
SPORTS GOODS
(JUL-MAR 03-04 TO JUL-MAR 06-07)

$240,000
$231,956
$229,225
$230,000

$220,000
$211,766
$210,000

$200,000 $193,901

$190,000

$180,000

$170,000
JULY-MAR 03-04 JULY-MAR 04-05 JULY-MAR 05-06 JULY-MAR 06-07

Value ('000')
 50

0
100
150
200
250
300
350
400
Jul-Jun 03-04

Sep-Aug 03-04

Nov-Oct 03-04

Jan-Dec 04
Sports Goods

Mar-Feb 04-05

May-Apr 04-05

Jul-Jun 04-05

Sep-Aug 04-05

Nov-Oct 04-05

Value "000" $
Jan-Dec 05

Mar-Feb 05-06

Line 2
May-Apr 05-06

July-June 05-06

Sep-Aug 05-06

Nov-Oct 05-06

Jan-Dec 06
MOVING ANNUAL CHART UP TO MARCH 07

Mar-Feb 06-07
PAKISTAN EXPORTS PRODUCTS

PAKISTAN’S EXPORTS
Products IT
OTHER
SURGICAL OTHERS OPPORTUNITI Engineering
2% 16% ES goods
7%
Fisheries
CARPETS
3% Fruit and Veg
SPORTS Marble and
3% Granite
LEATHER Gems and
7% Jewellery

Rice Textile Pharmaceuticals

5% 67%
Chemicals
Poultry
Services
8
MAJOR EXPORTS SHARE
MAJOR EXPORTS SHARE
FOOT BALL PRODUCTION IN PAKISTAN
1970/71 1980/81 1990/91 2000/01 2003/04

Footballs 1,4 5,2 19,7 40-43 33-35

produced, in
millions

Number of 1.500- 5.000- 21.000- 50.000- 41.000-

Football 2.000 7.000 25.000 54.000 44.000
stitchers
SPORTS INDUSTRY IN SIALKOT

 Sialkot, Pakistan's export capital represents an economy and a breed of

entrepreneurs quite different from that nurtured by the state apparatus over
the years. Though Sialkot's roads and other infrastructure are

 Primitive and choked, yet the culture of enterprise sported by this city and
its contribution to the national economy is unmatched by another city in the
country
SIALKOT EXPORTS

Sialkot exports (in Rs. millions)

years Sports goods Surgical goods Leather goods Total exports
1991-92 2,276 1826 1851 8695
1992-93 2475 2263 3920 10205
1993-94 4329 2382 4144 12837
1994-95 4718 2860 5769 16984
1995-96 5860 4196 7243 20428
1996-97 7261 4498 8745 24455
Source: Sialkot Dry Port Trust
SIALKOT EXPORTS

8000
7000
6000 year 1991-92
5000 year 1992-93
4000
year 1993-94
3000
year 1994-95
2000
1000 year 1995-96
0 year 1996-97
year 1991- year 1992- year 1993- year 1994- year 1995- year 1996-
92 93 94 95 96 97
SIALKOT AND SPORTS INDUSTRY
 1994 is remembered in Sialkot as the year the city was selected for supplying the
official ball to the Football World Cup in the United States. It culminated a year of
frenetic activity as Sialkot's

 Industry turned out over 20 million footballs to cater to the excitement created by the
publicity surrounding the event.

 Exports of footballs doubled from Rs. 1.6 billion in 1992-93 to Rs. 3.2
billion in 1993-94.
SIALKOT AND SPORTS INDUSTRY
 In addition to top brands such as Adidas and Puma, major sports clubs
around the world sourced footballs from Sialkot

 In 1998 Sialkot city again select for the supply of the footballs to the FIFA
world cup.

 On the eve of the FIFA Football World Cup 2006 to be held in Germany
from June 9, Sialkot has so far exported over 55.8 million footballs worth
more than Rs 8.5 billion.
SIALKOT AND SPORTS INDUSTRY
 According to business sources here, over 85 percent of the total production
of soccer balls in the world comes from Sialkot,

 while all international brands are sourcing their supply of footballs from
this export-oriented city and nucleus of cottage industry In the country

 Over 40 million balls worth US $ 210 million are produced annually by

some 60,000 highly skilled male and female workforce of Sialkot, a city
which enjoys a unique position in global trade with reference to sports
goods.
SIALKOT AND SPORTS INDUSTRY
o There are over 3,000 small and medium sized sports goods industrial units,
and some 50 well established industries functioning in and around Sialkot.

o The sports goods industry of Sialkot, producing quality goods mainly for
foreign markets, has over a century old history.
o

It is a labor-intensive industry providing direct and indirect job

opportunities to about 60,000 workers, while sub-contracting of work on
piece rate is a common practice, resulting in more jobs for people.
SIALKOT AND SPORTS INDUSTRY
 In 2002, sports goods export from Sialkot worth to Rs 11,039 million,
indicating a 16.91 percent increase in foreign exchange earnings as
compared to the previous year.
MAJOR SPORTS INDUSTRIES IN
SIALKOT
 Saga Sports Pvt. Limited  3DS TRADERS

 5-ONE SPORTS

 Best way Industries   4CS SPORTS

 Roomaif International  3K SPORT INDUSTRIES

   12X GARE SPORTS

  CA sports  2 GOOD SPORTS

 AIA International

 Ishaan sports
 Malik sports
GLOBAL SOCCER BALL INDUSTRY
 Total Global Trade – US$ 817m (2005)
 6 Brands Dominate (incl. Nike, Adidas, Asics, Mizuno, Mitre)
 Four major producers:
 China (US$ 273M), Pakistan (US$ 186M), Thailand (US$ 60M), India
(US$23M)
 Clustering extensive
 Pakistan – Sialkot cluster
 India – Jalandhar cluster
 China – Dongguan, Shenzhen, Nanjing cluster, Wuxi cluster

 Labour Standards Challenges

 Pakistan, India – Child Labour
 China – overtime, migrant labour, working conditions, TUs
THE CLUSTERS
Cluster Features Sialkot Jalandhar

Soccer Ball Producers 20 (Large) 10 (Medium)

50 (Medium) 140 (Small/Micro)
400 (Small/Micro)

Scale: Workers 30.000 Stitchers 12000 Stitchers 1000

2400 Subcontractors Subcontractors
25.000 Stitchers

Exports (2005) $185 m $22 m

Types of Hand Stitched Balls High Quality Premium Match Medium Quality
Low Quality
THE CLUSTERS

Cluster Features Sialkot Jalandhar

Key Buyers Mega Brands No Mega Brands

(Nike and Adidas) (Mitre/Pentland, Gilbert)

History of Joint Action Extensive Limited

COMPARATIVE WORKING CONDITIONS
I

Cluster Features Sialkot Jalandhar

No. of Stitchers 30,000 12,000

Average Daily/ Monthly US$ 2.66/79.80 US$ 1.84/55.20

Income
Working Hours Flexible Flexible

Compliance with No (Outsourcing to No (Outsourcing to

National Labour Avoid Regulation) Avoid Regulation)
Legislation
 COMPARATIVE WORKING CONDITIONS
II
Cluster Features Sialkot Jalandhar
Compliance with Core No No
Labour Standards (FOA, Collective (FOA, Collective
Bargaining, CL?) Bargaining, CL?)

Access to Work Factory-based: Male Home-based:

Dominated Greater Female
Home-based: Greater Participation
Female Participation

Particular Challenges Women’s Access Caste-Based

to Work Discrimination
EXPORTS TO MAJOR COUNTRIES
 Brazil
Description Rank as a Suppliers Share in total Share in total imports
Supplier
imports
Country 2002
2001

Inflatable 1. China 15.99 37.34*

Balls 2. Pakistan 45.44 35.36*
4. S.Korea - 5.66*
5. Taiwan 12.7 4.7*
6. India 1.73 3.46
7. Indonesia 8.75 3.35*
EXPORTS TO MAJOR COUNTRIES
Brazil

Description Rank as a Suppliers Share in total Share in total

Supplier
imports impors
Country
2001 2002

Balls , golf, 1. China 36.45 31.46

tennis & 2. Taiwan 9.7 19.99*
inflatable balls 3 Pakistan 9.94 15.84*
4. Spain 4.52 12.6*
5. U.S.A 22.01 10.02*
JAPAN
1. China 20.5%

2. United States 12%

3. Saudi Arabia 6.4%

4. UAE 5.5%

5. Pakistan 0.02%
JAPAN
Commodity 03-04 04-05 06-07 07-08 07-08
Description
Cotton yarn 68.27 68.89 70.87 60.745 68.82
& woven
fabrics
Leather and 15.73 15.41 17.92 16.491 25.88
leather
manufactures
Sport goods 6.26 5.54 7.943 8.057 17.81

Fish & Fish 14.45 8.51 10.5 10.272 9.95

product
Petroleum & 5.28 5.753 16.65 - -
oil US$ Million)
Source: WTO Trade data base, World Development Indicators, Federal Bureau of Statistics
LAOS

 Location: Southeastern Asia, northeast of Thailand, west of Vietnam

 Laos’ principal import sources 2007

Thailand 68.5%

China 9.3%

Vietnam 5.5%

Pakistan 0.03%
LAOS
Commodity 03-04 04-05 05-06 07-08
Description

Cotton yarn & 0.039 0.058 0.189 0.043

woven
fabrics
Sugar & sugar 0.032 0.021 0.106 0.027
confectioners

Sports goods 0.004 0.003 0.005 0.003

Source: WTO Trade data base, World Development Indicators, Federal Bureau of Statistics, Pakistan Revenue Automation Pvt. Ltd. (PRAL)
SIALKOT DRY PORT TRUST
 The Sialkot Dry Port Trust handled the Export and Import cargo in March,2010
as under

 EXPORT

 The Sialkot Dry Port Trust handled 2814 Consignments weighing 6267 Tons worth
4217 million in the

  Export sector. This cargo was transported from Dry Port to Lahore, Islamabad,
Karachi and Peshawar

  Airports, KPT & Port Qasim Sea Port.

 No.OF CONSIGNMENTS WEIGHT IN TONS VALUE IN MILLION RUPEES

D DESCRIPTION Mar,10 % Feb,10 Mar,09 Mar,10 % Feb,10 Mar,09 Mar,10 % Feb,10 Mar,09
SPORTS 73 2.6 74 67 96 1.5 110 91 69 1.6 79 53
SPORTS BALL 403 14.3 314 279 1018 16.2 779 649 619 14.7 462 399
GLOVES 133 4.7 122 138 558 8.9 495 591 253 6.0 221 270
LEATHER GOODS 744 26.4 684 798 1065 17.0 978 940 1312 31.1 1190 1231
SURGICAL 688 24.4 683 809 560 8.9 573 543 995 23.6 965 875
CATTON GOODS 79 2.8 88 103 123 2.0 192 165 93 2.2 150 101
NYLON GOODS 274 9.7 298 306 250 4.0 310 286 248 5.9 322 274
KNIVES 32 1.1 21 27 52 0.8 40 45 47 1.1 68 41
FURNATURE 8 0.3 6 5 41 0.7 21 11 8 0.2 5 7
RICE 1 0.0 2 1 5 0.1 35 24 1 0.0 4 1
MACHINERY 14 0.5 9 7 63 1.0 8 38 6 0.2 1 4
ELECTRIC APP 45 1.6 44 27 577 9.2 583 370 123 2.9 125 74
MARSHAL ARTS 96 3.4 85 107 292 4.7 202 347 153 3.6 139 138
CUTLERY GOODS 61 2.2 55 37 472 7.5 446 306 103 2.5 106 99
CERAMIC 9 0.3 16 9 57 0.9 100 104 21 0.5 34 31
FOOD STUFF 1 0.0 2 3 17 0.3 18 12 1 0.0 2 2
MUSICAL ITEMS 26 0.9 17 20 26 0.4 15 15 23 0.5 12 9
BADGES 4 0.1 3 0 0 0.0 0 0 1 0.0 2 0
MISCELLANEOUS 123 4.4 94 100 996 15.9 823 195 140 3.3 109 93
                         
Total 2814 100 2617 2843 6267 100 5728 4732 4217 100 3996 3702
CHILD LABOR IN THE SPORTING GOODS
INDUSTRY

 In Pakistan, 40.5% of the country's 145 million people are less than 14 years
old and well over 3 million of them are believed to be involved in child labor.

 Children are involved in various types of work including carpet weaving,

sporting goods production, street Vending, and domestic child labor.

 The existence of child labor in Pakistan's football Stitching industry received

international attention in the mid-90's when activist groups and the media
reported that there was extensive use of child labour in the sporting goods
Industry.
CHILD LABOR IN THE SPORTING GOODS
INDUSTRY

 Tehsil Deska (Sub-District of Sialkot)

 One 14 year-old boy, Nasser, was taken away from his Coca Cola ball when we
found him working in the house. There were also a number of other adults present
who had been stitching footballs since they were young children.

 Mohamed Imran Ijaz, who was working in a dark room of one of the houses in
Ikbal, is 22 years old and has been stitching for 10 years; Mohamed Sarvar is 26
years old and has been stitching for 14 years; and, Mohammed Zafar is 24 years old
and has been stitching for 15 years. On that day they were stitching no name
footballs which they claimed were provided by SAGA Sports
CHILD LABOR IN THE SPORTING
GOODS INDUSTRY
CHILD LABOR IN THE SPORTING
GOODS INDUSTRY
SPORTS INDUSTRY AND ENVIORMENT
 Manufacturers of sporting goods are becoming increasingly aware of the
imperative of Corporate social responsibility, including environmental
Sustainability. Initiatives to avoid manufacturing processes that are harmful
to the environment include material selection policies, research into
sustainable cotton,
 use of recycled rubber,
 eliminating PVC
 and controlling and monitoring restricted substances.
SPORTS INDUSTRY AND ENVIORMENT
 Adidas and Mizuno
 Adidas has made a commitment to environmental protection through the
International Standards Organization’s ISO 14001 rules. It has established
internal environmental policies and encourages contractors and suppliers to
establish environmental management systems
ELECTRICITY PROBLEM AND SPORT
INDUSTRY

 SIALKOT, August 30, 2009: A record 14 percent decline in exports of

sports goods from Sialkot has been observed due to the recent power
outages in export-oriented Sialkot city and the rising POL prices.

 Former Chairman Pakistan Sports Goods Manufacturers & Exporters

Association (PSGMEA) Arif Mehmood Sheikh disclosed this while talking
to the newsmen. He said that the sport goods (worth of Rs.1.72 billion)
were exported to the world from Sialkot-Pakistan during July 2009
including the soccer balls (worth US $ 10 million). He said that these
exports have shown decline to a great extant as compared to these exports
in 2008,
REGRESSION EQUATION

 E=5174.61+42.388a-587.66b+71.21z
 
 E=exports
 A=electricity consumption
 B=availability of leather
 Z=exchange rate in dollars
 C=constant
CONCLUSION

 Sialkot is the hub for the exports of sports good in the whole world but now
the overall production is very low as compared to the previous years.
 Exports of sports goods badly suffer from electricity shortage
 Child labor is another major factor which cause a fall in the production of
sports goods
 Government should make some policies to save the sports industry.
Electricity should be provided to the industries continuously during working
hours.
 Child labor should be banned
I APPRECIATE YOUR PATIENT
LISNING
Thank you
ANY QUESTION