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Training for the Olympics – Americans Prefer Sports Kit to Treadmills

Training for the Olympics – Americans Prefer Sports Kit to Treadmills

  • By Christopher Rogers
  • · June 29, 2016
  • Olympics may drive higher sports equipment imports, though state of economy vital
  • Cycle imports not yet picking up like they did before London 2012
  • Outdoor sports equipment imports growing quicker than treadmills and ellipticals

 

With a few weeks to go before the Rio Olympics many sports-related product buyers and suppliers will have completed, or are finalizing, their inventory build.

So, do the Olympics result in increased trade in sports equipment?

Cycle Industry Slow to Get Started

So far 2016 does not look like it will be as significant for the bike industry as the 2012 London Olympics proved to be. Bike imports and sales are (excuse the pun) cyclical. They have been through several phases in the past 6 years.

Panjiva data for U.S. imports and Chinese exports shows annual peaks in the spring ahead of summer purchases. There was a pickup in sales ahead of the London 2012 Olympics, with an associated lull in 2013. However, the economy is more important – Dorel Industries noted that the pickup in 2010 was driven by post-recession consumer spending.

20160624 Olympics Bike Macro

So what of the 2016 cycling season? Import shipments in May were 5.6% higher than a year earlier, based on Panjiva data, representing the best May since at least 2007. May is typically the peak import month so may be a guide to improvements to come. Yet, the imports of the larger bike importers, including Pacific Cycles (Schwinn, Mongoose) and Kent International have been slowing or stagnant in the past 12 months. It is worth noting that Kent International opened a U.S. factory in 2014.

20160624 Olympics Bike Corporates

If people aren’t buying bikes yet, are they buying fitness equipment?

Sports Equipment Preferred to Exercise Machines

U.S. sports and exercise equipment imports have steadily increased over the past five years. Following the restart of consumer spending during 2010 after the recession, the 2012 London Olympics provided a boost to imports, according to Panjiva data. Chinese export data to all countries tells a similar story. That said, a solid, positive response to the Olympics is needed to ensure continued expansion. The trailing 12 month U.S. import growth was 5.6% as of April, but there have been two consecutive down months at the peak time of year.

20160624 Olympics Equipment Macro

Purchases of exercise equipment tend to reach an annual peak in February and March, Panjiva data shows, meeting demand for pre-vacation exercise and summer outdoor sports. Over the past year buyers appear to prefer equipment for sports to exercise machines.

This is shown in data for Wilson Sporting Goods (owned by Finland-based Amer Sports), which increased imports by 48.6% over the 12 months to May. This compares to a 8.4% fall for NordicTrack and Weider maker Icon Health & Fitness. Retailers though are struggling and really need a strong response to the Olympics.

20160624 Olympics Equipment Corporates

 

So, Americans have yet to be inspired by the Olympics, but will they be? Panjiva subscribers can keep up-to-date with this data as the Olympics approaches, and will be able to take a deeper dive into the products, companies and trends in the sports and fitness industries.

 

This post was first published in the Panjiva Daily, which features global trade news and data-driven insights and is free for all Panjiva subscribers. To find out more email sales@panjiva.com.

  • Written by Christopher Rogers
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