SPORTS GOODS

INDUSTRY OF
PAKISTAN
PRESENTED BY
MEHREEN KADIR
AISHA ISHTIAQ

1
SPORTS GOODS INDUSTRY OF
PAKISTAN

2
SPORTS GOODS INDUSTRY

OVERVIEW
 At the time of independence, this industry was
in an infant stage with a nominal export of Rs.0.82
million. The Government took immediate steps to
develop this industry by providing loans and
subsidies to the manufacturers and arrangements

were made to market the manufactured goods.

Since then, the industry has flourished locally and
enjoys good reputation in the international markets as
well.

 Pakistan produces a wide range of sports goods,

accessories, games and athletic equipments. This
industry is one of the major foreign exchange earners
for Pakistan government
3
SPORTS GOODS INDUSTRY OF
PAKISTAN
 The Sports Goods Industry contributes 5.33% to
the total
exports of Pakistan, and its contribution to the
GDP is
1.31%. There has been an improvement in the
management techniques as well as manpower
skills
have also improved over a period of time, due to
the
collaboration of international brand names like;

 Adidas
 Nike
 Reebok

4
SPORTS GOODS INDUSTRY OF
PAKISTAN
.
Number of total exporting units in Sialkot:

There are 3000units.

This figure included all manufacturing & exporting units
such as sports goods units, sports garments, general
wear garments, sports protective items, sports
accessories, gloves, leather goods and garments,
surgical instruments etc. Practically everything which
was being produced in Sialkot, was being exported.  

5
Share in national exports 

2000 – 01 3.15%   
2001 – 02 3.44%   

Exports of sports goods:

2000 – 01 Rs.   16,461 Millions  

  2001 – 02 Rs.   17,405 Millions   

6
Total members of PSGMEA:       

There are 400 members of PSGMEA. 

Only the small units working in the Sialk77ot needed the
services of Pakistan Sports Goods Manufacturing & Exporting
Association. All the big units did not need the membership and
support of the PSGMEA.  

Small & medium productive sports units:

 
This figure also do not include sports garments units. These
1200 SMEs are really the back bone of the sports industry.  

Average percent-age increase in sports goods exports per

year  is 7.45 % 7
SPORTS GOODS INDUSTRY OF
PAKISTAN
PRODUCTION OF SPORTS
INDUSTRY
 A major portion of the total production comes
from cottage and small scale manufacturing
units.

 The important items being produced are

tennis racquets, hockey sticks, hockey balls,
polo sticks, cricket bats and balls, footballs,
Soccer ball, Volleyball, Handball, Beach ball,
and numerous goods used in both in-doors as
well as out-door games. Gymnastics/athletic
items etc

8
Some Famous Sports Goods
Companies And Their Products
 CA SPORTS
 Famous for its cricket bats in the whole world
 Alberta Sports Pvt Ltd
 Alberta Sports (Pvt) Ltd.is the firm with FIFA Approved
Category Balls.  
 Ali Trading Co., Pvt. Ltd 
 Footballs Soccer, Handballs, Hockey Equipment And
Accessories, Boxing Equipment And Accessories, Sporting
Goods & Equipment.
 Assac Industries 
 , Volleyball, Weight Lifting, Sporting Goods &
Equipment.  

9
Some Famous Sports Goods
Companies And Their Products
 Awan Sports
 Ice Skating, Tennis Balls, Tennis Rackets, Volleyball, Sporting
Goods & Equipment
 Chenab Sports Pvt. Ltd.
 Hockey Equipment And Accessories, Cricket Equipment And
Accessories, Martial Sports And Karate Suits, Kick Boxing Accessories
And Clothing, Boxing Equipment And Accessories, Sporting Goods &
Equipment 
 Eureka Industries  
 Soccer Balls, Volley Balls, Promotional Balls & Gift Items,
Outdoor & Sporting Items
 Halifax
 Woodwind Instruments, Music Products, Equipment & Services 
 Kapur Pvt. Limited
 Sports Goods, Sports Toys, Soccer Balls, Volley Balls,etc

10
Some Famous Sports Goods
Companies And Their Products
 Khawaja Mir
Volleyball, Weight Lifting, Sporting Goods &
Equipment

 Kicker Sports 
Footballs, Volley Balls, Indoor & Outdoor Balls,
Promotional & Advertisement Balls, Track Suit etc

 Nizam Sons Pvt

Active wear Gloves, Bags & Luggage, Baseball
Accessories, Boxing, Cycle wear, , Cycling
Accessories, Exercise Equipment, Fitness Apparel,
Fitness Gloves, Football, Football Accessories etc

11
THE EXPORTS
 Sports industry is lucky enough, to have brilliant record
of quality products of international standards as well as
excellent performance of continuous expanding export-
base for Pakistan
 Approximately 240 sports items are manufactured and
exported from Sialkot to about 130 countries of the
world and the total value of sports goods at international
level is about US$25 billion

 IN 2002 sports goods from Sialkot worth to Rs11039

indicating 16.91% increase in foreign exchange as
compare to last year

12
Major Importers
 The major importers are;
 Indonesia,
 Hong Kong,
 Thailand,
 Korea,
 Vietnam,
 USA,
 Europe,
 UAE

13
Porter Diamond Model Analysis Of Sports Industry

OVERVIEW:

 Porter is a famous Harvard business professor. He

conducted a comprehensive study of 10 nations to learn
what leads to success. Porter believes standard classical
theories on comparative are inadequate or even wrong.

 According to porter a nation attains a competitive

advantage if the firms are competitive. Firms become
competitive through innovation .Innovation can include
technical improvements to the product or to the
production processes. The four determinants of Porter’s
diamond model are;

14
Porter Diamond Model Analysis Of Sports
Industry
 1. FACTOR CONDITION:
 Refers to the inputs used as factor of production such as
labor, land, natural resources and the infrastructure.
 2. DEMAND CONDITION:
 Refers to the sophisticated customers in the home
market.
 3. RELATED AND SUPPORTING INDUSTRIES:
 Refers to the suppliers and related industries
 4. FIRM STRATEGY, STRUCTURE, AND RIVALRY:
 Refers to the conditions for the organization of the
companies and the nature of domestic rivalry.

15
 Porter Diamond Model Analysis Of Sports
Industry
 FACTORS CONDITION:

 Raw Materials:

 The raw materials required for the production of sports

goods, are leather, wood, glue, nylon guts, rubber and
chemicals, cotton and synthetic material.
 While the new materials like PVC and PU sheets are
imported. 

 The industry annually utilizes materials worth Rs.8 billion,

including imported raw material.

16
FACTOR CONDITION
 Labor:
 The Pakistan sports goods industry is a highly labor
intensive industry. The total number of persons working
in the entire sports goods industry is about 300,000. The
skilled and unskilled labor ratio is 70:30
 Geographic concentration:
 Sialkot is the center for the production of sports goods.
Major industries units are located here.
 Capital:
 Since it is a cottage industry investment is made on a
small scale. The capital output ratio is 1: 0.75

17
FACTOR CONDITION
 Technology:
 Pakistan needs to adopt new technologies in order to
compete with other countries Presently the technology
statistics are:
 Low technology 84%
 Medium technology 16%
 High technology -

18
FACTOR CONDITION
 Tariff Structure:
 Raw material imported for manufacturing of exportable
sports products are exempted from custom duties and
other taxes

 Infrastructure:
 Inadequate infrastructure has remained a very
troublesome issue for this industry. Transport lags, with
high costs becomes a major issue when competing with
international competitors

19
DEMAND CONDITIONS
DEMAND PATTERNS
 Most of industry’s consumers of sports goods are
between 15 and 35 years of age. Older consumers tend
to purchase local brands, younger ones are highly
devoted to name brand recognition and trend following.
 ITEMS PURCHASED
 Cricket Bats, Hockey sticks, Basketball shoes and
clothing, in-line skating apparel, American sports teams’
baseball style hats, sports sandals, and sport t-shirts are
the most popular items with the younger consumers.
Older consumers prefer jogging shoes and golf apparel.
20
DEMAND CONDITIONS
 Consumers:
 The purchases are not in large volumes. Furthermore,
the industry sets and creates the fads and determines
what is "hot". Buyer countries include;
         Indonesia
         Hong Kong
         Thailand
         Korea
         Vietnam
         USA
         European countries

21
DEMAND CONDITIONS
SUBSTITUTES:

 The threat of substitute products is basically

low.

 The industry is upgrading the products frequently

to cope with fashion. There are not too many
close substitute products .

22
RELATED AND SUPPORTING
INDUSTRIES
 SUPPLIERS:
 Since there are few companies so the bargaining power of
suppliers is medium to high. The product is unique, and the
switching costs are high.
 Presently, Pakistan is competing with India, Japan, Taiwan and
South Korea in international market. Since the entry of Japan,
Taiwan and Korea, the industry is tilting towards mechanization
and the use of modern equipment,
 SUPPORTING INDUSTRIES INCLUDE:
 Plastic Industry
 Leather Industry
 Paint Industry
 Textile Industry
 Rubber Industry

23
RELATED AND SUPPORTING
INDUSTRIES
 DIVERSIFICATION OF SPORTS GOODS:
 The following new sports items can be manufactured
through the existing sports manufacturing facilities at
Sialkot:
 Cycle Sports Products industries involve
composite material units, Shoe Factories, Engineering,
Clothing and Rubber units   .    Swimming Sports product
industries involves plastic, rubber and clothing units.
        Water Sports Industries involves rubber, clothing
and shoes units.
       Snow Sports Industries involves composite
material, clothing and Shoes Industries.

24
Snow Sports Industries involves composite
material, clothing and Shoes Industries.

Golf Sport Products Industries involves leather,

shoes, engineering and rubber industries.

Tennis, Badminton, Squash involve composite

material, shoes, clothing, plastic and rubber
industries.
industries

Baseball Sports involves, metal, rubber, leather,

clothing and shoe industries.
25
STRUCTURE OF INDUSTRY AND
COMPETITOR’S ANALYSIS

 Foreign companies are becoming more reluctant to do

business with Pakistani manufacturers, because of the
negative effects on production schedules related to political
and social unrest

 The industry is tilting towards use of mechanization and use

of modern equipment, which has resulted in tougher
competition for manufacturers and exporters of sports goods
of Sialkot that it continues to compete in the global market
without a fully mechanized industry, relying mostly on old and
traditional production techniques.

 Local production is not at a good pace, so as a proportion of

the total sports apparel industry, local production plays an
increasingly minor role.

26
STRUCTURE OF INDUSTRY AND
COMPETITOR’S ANALYSIS

 THE PROCESS THORUGH WHICH SPORTS GOODS

PASS

 INPUT:
First stage is input so the basic raw materials
required for the production of sports goods, are leather,
wood, glue, nylon guts, rubber and chemicals, cotton
and synthetic mat. . As the sports goods are
manufactured mainly in Sialkot so the raw materials like
wood is obtained from the nearby artificial jungle known
as Changa Manga situated near Sialkot. Inputs like
leather are taken from the industries situated in Sialkot,
Gujranwala

27
STRUCTURE OF INDUSTRY AND
COMPETITOR’S ANALYSIS

 PROCESSING:
Second step is processing which includes weaving,
stitching, crafting, cutting, polishing, knitting with the use of
manual work and machine work.

 OUTPUT
Finally comes the output which includes Cricket Bats,
Hockey Sticks, Base Ball Bats, Wickets, Cricket Ball, Hockey
Ball, Foot Ball, Sports Gloves, Boxing Gloves, Tennis Ball, ,
Volley Ball, Indoor Ball, Track Suits etc.

28
STRUCTURE OF INDUSTRY AND
COMPETITOR’S ANALYSIS

 COMPETITIVE ANALYSIS
 Lower priced local or no-name brands have not
increased market share. Sources predict the retail segment
of the market may soon see consolidation.
 foreign companies are becoming more reluctant to do
business with Pakistani manufacturers, because of the
negative effects on production schedules related to political
and social unrest. The stability of the macro-environment in
the U.S., therefore, provides an attractive alternative for
Pakistani importers and retailers
.
 Local production is not at a good pace, thus as a proportion
of the total sports apparel industry, local production plays a
increasingly minor role.
 There is perfect competition & therefore the market share
exists more or less equally with the major companies.

29
SWOT ANALYSIS

 A SWOT analysis is a tool used in management and strategy

formulation. It can help to identify the Strengths, Weaknesses,
opportunities and Threats of a company.

 Strengths and Weaknesses are INTERNAL FACTORS that create

value or destroy value. They can include assets, skills and
resources that a company has at its disposal, compared to its
competitors. They can be measured using internal assessments or
external benchmarking.

 Opportunities and Threats are EXTERNAL FACTORS that a

company can not control. But they emerge from either the
competitive dynamics of industry or from demographic, economic,
political, social, legal, technical or cultural factors.

30
STRENGTHS
 This sector of the Industry enjoys status of praise worthy
back bone of the economy.

 Pakistan is the most dominant brand in the football industry.

Pakistan hold first position when it comes to the supply of
soccer balls while it enjoys second position in the supply of
sports gloves.

 This industry is one of the major foreign earners for Pakistan.

 The basic raw material required for the production of Sports

goods like leather and wood are available in abundance in
Pakistan.

31
STRENGTHS
 Pakistan has a unique competitive edge in the global
market because of its sports goods

 The monetary and other incentives are provided by the

government
 This sector was declared as one of the seven-priority
sector which focuses its strength
 Pakistan is competing with India, Japan, Taiwan and
South Korea in international markets.
 Media is a vital source of increasing sports goods
demand .According to a news item published in a leading
English daily, nearly 70% of TV viewers in urban
Pakistan takes an interest in watching sports on TV

32
WEAKNESSES
 WEAKNESSES
 Inadequate infrastructure has remained a very big
problem

 The entire industry is more or less concentrated in a

specific geographic area

 The industry in not expanding and many people

remained unemployed.
Soccer ball industry of Sialkot was alleged some time
back by foreign print and electronic media to involve
child labour in the stitching of balls
33
 WEAKNESSES
 Delay in the cargo-based airport at Sialkot and need for
up gradation of road links.

 No sufficient foreign investment

 Non-existence of Plastic & Rubber Technological Center

at Sialkot.

 There is a certain dearth of professionals in the field of

sports marketing in our country in general and in hockey
in particular.

34
WEAKNESSES
.
 . Promotion strategy was being neglected as more than
80% of the companies were neither having separate
advertising departments nor any contacts with any
advertising agency. Only few companies had the web
site.

 . The industry waits helplessly for the foreign export

orders. This practice discourages them to adopt
aggressive marketing approach.

35
OPPORTUNITIES

 Punjab Small Industries Corporation (PSIC) has

prepared a multi-dimensional plan for setting up
“Product Development Centre (PDC) for sports
industry in Sialkot costing 80 million.

 The proposed Product Development Centre (PDC)

would lead the industry by acting as a vital
knowledge centre catering to a wide spectrum of
needs ranging material selection to final product
setting. PDC consists of dies and molds workshop,
proto development shop, testing laboratory and
training development. The PDC will be manned by
highly skilled human resource which would be
providing training, technical advice, common
services, testing, entrepreneurship service.
36
OPPORTUNITIES
 Market diversification and expansion into international
markets in search for new potential customers. Market
leadership with effective research and development
strategies.

 The strategy development is being finalized the detailed

discussions with the local industry, trade associations and
chamber of commerce and industry.

 The SMEDA has also pinpointed the some hurdles that have
stalled successful entry of local entrepreneurs in Sports
industry due to lack of knowledge about new materials and
process, high capital cost in setting up units, lack of skilled
labor, poor knowledge in production of dies and molds and
absence of testing facilities.
37
THREATS

 The sports goods industry of Sialkot is facing a big test

to successfully encounter the challenge posed by
introduction mechanized ball called “Roterio Ball” which
has already been played in European Championship
2004. The sport industry needs financial and technical
support from the government to effectively face this
ominous challenge.

 Markets aren’t reliable, as one would hope them to be.

Clients and choices are often changing hands, making
the sustenance of this industry quite unpredictable and
volatile.

38
THREATS

 High tariffs and other non-tariff regulations may be

imposed on foreign manufactured goods

 Manufacturing and labor costs will increase in South

East Asia, and Reebok will confront higher costs of
goods sold accounts, which will directly impact on the net
income.

 International competitors are trying their best to beat

this industry by hook and crook. If international
competitors in future are successful to manage to control
the majority of existing distribution channels of sports
industry of Pakistan, will face a big problem

39
RECOMMENDATIONS

 The industry should devote more resources to the

promotion of their products and to establish its own
distributions channels

 It is the need of the hour that the “Private and Public”

sectors should join hands so that sports industry can
adopt certain standards like quality parameters etc
There are some areas like technical training, forceful
marketing techniques in which government can play an
instrumental role for the uplift of the sports goods sector.

40
RECOMMENDATIONS

 The industry needs to get rid of the problem of child

labor, which is causing it many problems including
problems of export because foreign countries have now
refused to buy goods, which involve using child labor.

 With the coming of the WTO, the sports goods industry

needs to quickly improve quality and production level, as
countries are no more going to be bound to buy
Pakistani products.

41
RECOMMENDATIONS

 Separate “Research and

Development” and
“Advertising” departments
should be made.

 The industry should

emphasis on hiring the
skilled labors and
professionals. For this
purpose training institutes
must be developed for
workers and workshops
should be conducted.
42