2020 TSMA

32 2020 Taiwan Sporting Goods Manufacturers Association State of the American Industry It was an interesting year in 2018, inciting both uncertainty and optimism. Many manufacturers faced the constant threat of new tariffs and were forced to re-navigate manufacturing practices. Regardless, the sporting goods industry experienced a growth of 2.3 percent. However, contrary to most years, the industry did not outperform the Real GDP, which increased 2.9 percent. Historically, the sports and fitness industry outpaces the Real GDP – when the economy is doing well, people are more likely to spend on luxury items, such as gym memberships and sporting equipment. Since the industry did not follow the success of the GDP, this is a concern we are monitoring closely. Overall, we regard this outcome as modest growth and hope for more in 2019. The industry was led by several big, global brands who have been responsible for driving a majority of the growth. On the other hand, many niche brands have recently emerged, and have been able to latch on to the market through strong consumer connections. These brands tend to follow a similar, simple pattern: Good story, sharp look, integrated technology and a way to connect with the consumer on a deeper level. While the disruption in retail is not over, retailers have been forced to adapt to an omnichannel strategy to capture today’s consumer. This requires retailers to operate digital commerce platforms, deliver product quickly, allow for alternative purchasing options, and essentially, meet the consumer wherever they are, whether that be in store, online or both. Generally, as retail consolidation happens, the equipment business, including fitness equipment, is less fortunate than footwear and apparel. To combat this challenge, equip- Tom Cove President & CEO, SFIA & Vice-President Americas, WFSGI & Member of the Executive Board, WFSGI