That's a 4.2 percent increase over 2010's wholesale sales of $74.2 billion, the association said in its "State of the Industry Report" for 2012.
After downward trends in 2008 and 2009, last years results showed the industry is "on the comeback trail," association spokesman Mike May said.
Last year marked the first time since 2007 that the industry's wholesale sales reached $77 billion.
The wholesale uptick showed that, at the retail level, consumers were willing to make more purchases that they may have put off for a year or two, May said.
Also, as the nation as a whole continues to struggle with a sluggish economy, the increased spending may have reflected the essential importance of sport.
"A lot of people work out on a regular basis," May said. "And they realize if they don't have their health, they have nothing. They don't want to cut back on their health. In times of stress it's a great way to deal with stress."
From the SGMS news release about last year's results:
The 'hot' categories in the industry which drove this growth were branded activewear (up 9.6%), golf clubs (up 8.9%), running footwear (up 7.6%), elliptical machines (up 7.1%), outdoor/adventure footwear (up 6.1%), classics/originals footwear (up 5.6%), and performance apparel – tops (up 5.4%).
One of the leading industry business topics is mass customization where manufacturers are producing customized, quick-turnaround gear for the consumer. And, there are two types of mass customization: for performance (fitness) and for style (personalization).
Consumer Spending Trends
In this report, SGMA surveyed 13 categories of consumer spending. Of those 13 categories, six of them revealed higher consumer spending in 2011 than in 2010. The top two categories that exhibited the highest percentage of 'more consumer spending' were Lessons, Instructions, & Camps and Team Sports at School. Of those consumers who spent money on the former, nearly 25% of those consumers said they spent more in 2011 than in 2010. As for the latter, just more than 22% of those consumers said they spent more in 2011 than in 2010. The category which had the least amount of change, where consumers kept their spending steady, was Tennis Membership Fees, where 71% of those who spent money on tennis memberships in 2010 actually spent the same amount of money in 2011.
"It's not surprising that team sports had a big jump in spending because it means that parents are making the athletic needs of their children a high priority," said SGMA President Tom Cove. "Team sports are the heart and soul of athletic competition in the U.S."
It's worth noting that in seven of the 13 categories, more than 20% of the consumers from those various categories expect to spend more this year than in 2011.
"The growth and/or emergence of sports such as gymnastics, rugby, lacrosse, and field hockey are helping to fuel this spending," noted Cove.
Sports & Fitness Participation
The state of fitness and activity in the U.S. is an ever-changing situation. The good news is that 217 million Americans are considered 'active,' yet more than 68 million Americans are totally 'inactive' – for any number of reasons such as age, illness, little interest, lack of access to facilities, or minimal ability. Listed below are some of the other noteworthy facts and figures on sports participation in the U.S.
Group Fitness. Yoga, boot-camp style training, and class-based fitness classes are the main growth categories in the fitness industry.
Amazing But True. In 2011, 18-24 year-olds were more inactive than 25-34 year-olds and 35-44 year-olds.
Best in the West. Utah and Idaho are the two states with the highest rates of physical activity per capita.
Older and More Active. 'Baby Boomers' (those born between 1945 and 1964) are more interested in fitness activities and outdoor sports than Generation X (those born between 1965 and 1979).
Voters Are Active. Those who are physically active are more likely to vote in the Presidential elections this coming November than those who are not physically active.
E-Commerce Continues To Expand
According to WebScore Analytics, e-commerce sales in the U.S. for all industries in 2011 reached $185 billion, which was a 14% increase over sales in 2010. E-commerce sales are expected to reach $270 billion by 2015. In the U.S. sporting goods industry, e-commerce sales in 2011 were $2.1 billion and they are expected to reach $4.9 billion by 2015.
As a percentage of overall sporting goods industry sales in the U.S., e-commerce sales continue to play a bigger role. The percentages have continued to increase every year since 2006 – rising from 3.6% in 2006 to 6.2% in 2011.
"The increasing availability of mobile and tablet-type devices makes e-commerce purchases more possible and accessible," commented Cove.
Of the 91 industry leaders surveyed by SGMA, nearly 60% of the companies represented in the survey said they sell directly to the consumer. And, of those companies that do not sell direct to consumers, nearly 70% of them plan to start selling directly to consumers this year.
'Short Takes' & 'Snapshots'
The future of the entire sports, fitness, and recreation industry in the U.S. is filled with optimism based on the input from industry leaders:
- 84% of those surveyed by SGMA (manufacturers and retailers) are expecting domestic sales to increase in 2012 vs. 2011.
- 61% of those surveyed by SGMA (manufacturers and retailers) are expecting international sales to increase in 2012 vs. 2011.
- 40% of the manufacturers surveyed indicate they will need 'more manufacturing capacity' this year.
- 16% of the manufacturers surveyed said they planned to manufacture more products in the U.S. this year and 18% stated they planned to manufacture more products overseas.
Sports/Fitness Industry's Biggest Concerns
The five leading business concerns for the sporting goods and fitness industry in the U.S. are (1) increasing market share, (2) material cost/availability, (3) slower consumer spending, (4) product sourcing, and (5) lack of consumer confidence.
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