Impressions - Sports Fan Retailer - December 2014 - 23

he licensed sports product
industry continues to evolve
with each passing year. Think
about it: It wasn't too long ago
that Starter was one of the hottest apparel brands in this business. Now, the
retail space is littered with a mix of wellestablished and neophyte brands equally
competing for consumer dollars.
Though change is inevitable in any business, the one constant with this industry is
the passion that fans have for their favorite
teams. Besides the wide variety of items
emblazoned with team names and logos,
one of the biggest changes in the licensed
sports product industry is the number of
entities, leagues, conferences, associations
and special events that have joined the fold.
This industry has continued to blossom, further gaining solid footing in
both the North American and global
consumer marketplaces. In the United
States and Canada, sports licensing was
a $13.44 billion business in 2013, which
was up 2.8%, from $13.07 billion, in 2012.
Globally, however, retail sales of licensed
sports-based merchandise amounted
to $18.76 billion, according to The Licensing Letter Sports Licensing Report
2014. Retail sales in the United States
and Canada together account for 71.6%
of worldwide sales, while Europe (16.9%)
and Asia (7.9%) comprise the rest of the
top three territories for licensed sports
merchandise sales (see Figure 1).
Retail Sales of Licensed Sports-Based
Merchandise Worldwide,
By Territory, 2013
Latin America 1.2%
Australia/
New Zealand
1.8%

Middle East/Africa
0.2% Other
0.3%

Asia
7.9%
Europe
16.9%
U.S. and Canada
71.6%

Figure 1
Source: The
Licensing Letter

SportsFan Retailer

RETAIL SALES: RIGHT NOW
Because of the wide variety of licensed
sports products that exists, manufacturers and retailers alike are not only in
competition with each other, but they
also are competing with what consumers
already have in their closets.
"Since a consumer can only wear one
hat, one shirt and one jacket at a time,
the industry is challenged to create new
product that the consumers find irresistible and feel as if they must have," says
VJ Mayor, senior director of communications and research, Sports & Fitness
Industry Association, Silver Spring, Md.
"Of course, the range of licensed products
is far more than the major professional
leagues and colleges. Products affiliated
with the Olympics, World Cup soccer,
Ryder Cup golf, U.S. Open tennis and
Rugby World Cup are big sellers, too,
with the buying public."
For the most part, the industry is filled
with optimism and activity at the cash
register and online. Sales of NCAAlicensed products, in particular, have
driven the momentum at retail.
"NCAA licensed sales trends have been
very positive so far this year and exceeding expectations," says Tyler Mosner, athletic and licensed apparel buyer at Pittsburgh-based Dick's Sporting Goods. "Our
customers want and are willing to pay the
premium for the brands like Nike and Under Armour. Performance sideline products are a staple to our assortment. Customers want to own and wear what they
see on the sidelines. The reality is that not
all customers can afford the higher-ticket, premium brands, so offering a highquality, value-priced brand is also critical to attract a broad base of customers."
While mass/discount retailers and
specialty stores account for the largest
shares of retail sales when it comes to
licensed sports merchandise (37% and
33%, respectively), major online retailers, like Fanatics, are seeing healthy sales
regardless of product category. In fact,
e-commerce accounts for 10% of licensed
sports product retail sales, according to
The Licensing Letter Sports Licensing Report 2014 (see Figure 2).

Retail Sales of Licensed Sports
Merchandise, By Distribution Channel,
US & Canada, 2013
Drug, Grocery, Value,
Convenience 3%
Institutional/
Venue 7%

Department
Stores 8%
E-Commerce
10%

Mail Order/
TV Shopping 1%
Other 1%

Mass/Discount
37%

Specialty Stores
33%
Figure 2
Source: The
Licensing Letter

"We're seeing increases this year across
all leagues and across all categories, in
particular for women's items," says Jack
Boyle, president of merchandising for Fanatics, Jacksonville, Fla., the largest online
retailer of officially licensed sports merchandise. "Other items that are starting
to spike are 'ugly' sweaters and iPhone 6
accessories."
Some retailers, like Georgia-based Tailgaters Alley, have experienced moderate
growth in sales of licensed sports product in recent years after the most recent
economic downturn. "We sell merchandise representing 21 colleges," says Chris
Wilkerson, co-owner of Tailgaters Alley,
which has locations in Cumming and
Snellville. "Sales for us were tough between 2008 and 2012. They are getting
better. They are not as good as they were
before the recession hit."
When assessing the state of the licensed
sports product business at retail, it's important to remember how certain factors
- like team success and participation -
have different effects on various markets.
For example, Wilkerson notes that the
nationwide frenzy that surrounds college
basketball has little effect on his business
unless one team is doing exceptionally
well. Rather, he says, the pigskin stimulates business in the fall.
At Scotty's Sports Shop, a Wellington, Fla.-based "mom-and-pop" sporting
goods store, the sales of officially licensed
December 2014 23

Impressions - Sports Fan Retailer - December 2014

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