Changes in the Athletics Industry - Term Paper Example

Athletics Industry Analysis Technological Changes in the Athletics Industry In the recent past there have been several technological changes that have affected the athletics industry as well as the sports industry a parallel industry. With the need to meet the customer needs and ensure their satisfaction, there has necessitated tremendous innovations in the industry. Some of the attributes include: sweat absorbent, to ensure that one is comfortable enough in the duration of their game or sports activity. Flexibility of the product, this allows the player to make easy and fluid movements during their games. Finally, customers look for fashionable products so that they can look stylish even when they are in their field of play (Lululemon Athletica, 2015). When it comes to customer needs and wants, it is worth noting that the world sports apparel is expected to exceed $ 12 billion by 2015; this is according to the (BMI Research, 2015). The demand for the apparel sportswear is the protective package it comes with. Consumers of the product have the need to feel comfortable while in the attire. The flexibility of product must also be convenient enough to ensure that they perform to their best. Other needs include; the need to preserve energy, to increase the blood flow during the action as well as muscle recovery and protection from body injury. The customers also have the want to look and feel fashionable while playing their apparel (NPD Group, 2015). The introduction of high-tech fabrics is one of the major technological changes in the industry. Introduction of high-tech fabrics have had significant influences on the industry in terms of increased investments in research and development as well as manufacturing costs. This is because the new developments require special techniques and special materials for production (Companies and Markets, 2014). The major players in this industry include Lululemon, Adidas, Reebok, Puma, and Under Armour. The players are forced to re-invent their production systems in terms of the kind of materials they use to manufacture sports products and technology that they employ in their production processes. In addition, long-term investment plans such as collaboration with major global distributors of sporting apparel in order to remain competitive in the industry. The players are only able to achieve this by moving in tandem with the growth in technology and providing the required apparel to the consumers (Global Industrial Analysis 2015). Some of these technological changes are briefly discussed below Silverescent Essentially, Lululemon Athletica embraces technology in a number of ways, particularly in how it handles sales and marketing of its sports apparel. Customers can view and shop online for all sporting products that they wish to buy. The website contains all sorts of sporting apparel that users can sort according to price range, gender, category, color, and activity. The company does not only engage technology in the production of such products, but it also uses contemporary marketing and sales strategies. The use of cotton and linen is meant to contain body odor (Lululemon Athletica, 2015). Energy related fabric development Industry players must ensure the comfort of the consumer in order to remain in the market. They have therefore moved to bring into the market new fabrics in the sports industry that help in blood flow circulation and muscle recovery in order to enhance the athlete’s energy and wellness. This technology involves the technical engineering of mineral based Celliant to harness and recycle the natural energy emanated by the human body and the result being in terms of health and performance improvement of the athlete as well as improve their over-all wellbeing (Discovery.com, 2012). Wearable Device Technology Sports clothing technology has undergone three major innovations. But perhaps the biggest contention comes when choosing function for fashion or embracing both. Wearable device technology is one of the improvements in the sports apparel industry and it includes all the equipment such as pedometers or watches that can function as accessories to sportswear. Such devices can track the workout regimes of their users and perhaps provide more suitable workout formulas. They can be worn on any part of the body depending on their functionality. The devices are an important component of sportswear since they enhance the workout experience of athletes who use them. Since such devices are trendy, one will find sport enthusiast and athletes wearing them both during and after workouts. The wearable device technology involves more fashion sense than it does to functionality (Lauer, 2014). Smart Clothing According to Lauer (2014), smart clothing involves injecting equal fashion sense to sport apparels as it does to the functionality. Smart clothing involves sports clothing that monitor the bodily functions of athletes when the athlete performs workouts. They monitor such aspects as heart rate, temperature, posture, and respiratory activities in order to give a recommendation that will optimize the workout of every athlete according to their specifications. The introduction of smart clothing in 2012 was perhaps one of the biggest inventions in the sports apparel industry since most of the clothing focused on fashion or functionality but could not balance the two. Major Customers in the Industry Due to the tremendous changes in the industry, each individual company has to apply an identical marketing plan that will retain is customers and also attract new ones. The companies sell their products to a variety of customers all over the world. Major customers in the industry include individual persons how visit the shops and buy directly from the stores, sports clubs around the world (NPD Group, 2015). Other major customers in the industry include the various individual athletes such as track runners, cyclists and other engaging in various sports across the world. For example Lululemon has its regular customers being the yoga men and women. It is therefore clear that the industry has a large customer base for the technologically enhanced apparel (Discovery.com, 2012). Buyer Power The sport apparel industry is a high-level industry in the sense that the internal and external environments of major players are highly active. In essence, the buyers industry is more concentrated than the industry it purchases from because customers are the core of such functionality and function of sports apparel. In addition, buyers do not purchase such products in large volumes unless the products are purchased by sporting clubs. However, the cumulative volume of such products purchased by buyers represents a considerable volume of the revenue collected by the sellers of sports apparels. Since sport clothes are numerous and the companies selling various brands are multiple, the buyers have the bargaining power, especially because of substitute products available in the market. in this regard, some firms, such as Lululemon Athletica, form special relationships with loyal buyers whereby buyer can order large or small quantities of products from the website and pay for the sports clothes upon delivery. The price elasticity of buyer’s product is low since a change in price will not affect buyers shopping behavior considerably (BMI Research, 2015). Products Attributes Important to Customers The customers in the sports apparel industry look for various product attributes when they are making purchases and it is important for players in the industry to ensure that their products offer these attributes to the customers. Customer appeal and satisfaction is one of the primary factors of consideration although sportiness of such attires also come into play (Companies and Markets, 2014). Market Segment The sports apparel industry is largely segmented although there are few large players in the industry such as Nike, Puma, Adidas, Under Amor and Lululemon. The smaller firms are largely fragmented across the industry and this has resulted in increased competition in the industry. The market is also segmented on the basis of particular sports with most large players in the industry focusing on specific sports in order to increase their market presence. This segmentation has helped in promoting some brands since some of them are identified with particular sports and therefore become popular with the fans of that particular sport (Companies and Markets, 2014). Changing Demographics, Social and Cultural trends affecting the Industry There are various trends that have been changing in the society which has resulted in the need for changes in the industry. Some of the trends include the increasing view of sports apparel as fashion clothing and the increasing need for people to purchase these items for leisure. For example, most people embrace and buy basketball attire I order to look sporty. Such sports brands as Adidas, Nike, and Fubu have become commonplace even with people who are not actively engaged in any sporting activity. Individuals are increased their viewing sports activities as leisure activities and therefore most of them are buying sports apparel in order to look fashionable when they engage in sports activities. This has therefore increased the demand for sports products and therefore companies in this industry need to direct some marketing efforts into this segment of new customers. In essence, the contemporary market segment of sports apparel mainly focus on sports enthusiast than sportspersons (NPD Group, 2015). References BMI Research. (2015). Global Industrial Analysis. Retrieved from http://www.bmiresearch.com/ppc/google/industry?gclid=Cj0KEQjw0fOoBRDn88Pol8bqhN0BEiQARGVJKi61rU8PohgDO5TarN-lmM9im-NEJSSz2Vc9BMMfr4IaAqLb8P8HAQ Companies and Markets. (2014). Increasing consumer interest in sports apparel as ‘everyday’ clothing sees Nike retain global industry lead. Retrieved from http://www.companiesandmarkets.com/News/Textiles-and-Clothing/Increasing-consumer-interest-in-sports-apparel-as-everyday-clothing-sees-Nike-retain-global-industry-lead/NI9601 Discovery.com. (2012). 10 Techs Transforming Sports. Retrieved from http://news.discovery.com/tech/gear-and-gadgets/ten-techs-transforming-sports.htm Lauer, C. (2014). Three Innovations in Sports Clothing Technology: Fashion vs. Function. Retrieved from http://proplayerinsiders.com/nfl-player-team-news-features/three-innovations-sports-clothing-technology-fashion-vs-function/ Lululemon Athletica. (2015). Fabrics and technologies. Retrieved from http://info.lululemon.com/education/fabricsandtechnologies NPD Group. (2015). Fashion Market Research & Business Solutions. Retrieved from https://www.npd.com/wps/portal/npd/us/industry-expertise/fashion/ Read More