Impressions - Sports Fan Retailer - December 2014 - 26

money exchanging hands on game day
doesn't always signal a cash cow, but value
still can be realized.
"We do well with our on-campus
game-day sales at Georgia Tech, but
we do pay IMG for access to the space,"
Wilkerson says. "But after you count
the extra time and energy it takes to
set up and tear down the retail displays
outside the stadium, and the wear and

tear on our bodies, we look at the sales
experience as advertising."
E-COMMERCE GROWTH
Though bricks-and-mortar outlets still
rule the figurative kingdom, the role of
e-commerce in the national economy
continues to grow as tablets and mobile devices give shoppers more access
to products.

Pacesetter Sports, in Terre Haute, Ind., is equidistant from three Major League
Baseball cities - St. Louis, Chicago and Cincinnati - and also is very close to
the Indianapolis professional sports market.
But there's one big issue impacting the store's decision to stock pro merchandise, especially jerseys, which is the No. 1-selling category of licensed
sports merchandise, according to The Licensing Letter Sports Licensing Report 2014.
"In pro sports today, we're one contract or one trade away from that jersey
losing its value," says Pacesetter's Brent Compton. "With Indiana State, you
don't worry about a player being traded. The relationship we have with Indiana
State University outweighs any [relationship with an] athlete."
Tailgaters Alley's Chris Wilkerson says he sells some Atlanta Falcons merchandise, but after a bad win-loss record in 2013 and a rough start to the 2014
season, he is slashing prices on the team merchandise in order to make more
wall space for collegiate product.
Such illustrates the quandary in offering collegiate vs. professional sports
merchandise. According to The Licensing Letter, the collegiate market generated
$3.43 billion in retail sales of licensed merchandise in 2013. That represented a
1.8% increase from 2012. Moreover, 65% of the product sales included apparel
and 35% was non-apparel goods.
Retail Sales of Collegiate Licensed Merchandise (U.S. and Canada, 2010-2013)

2013
2012
2011
2010
Source: The Licensing Letter

26 December 2014

$3.43 billion
$3.37 billion
$3.32 billion
$3.16 billion

"The biggest trend we're seeing in the
industry is the huge shift to mobile [technology and devices]," Fanatics' Boyle
says. "Sports are all about passion and
immediacy, so creating an incredible
mobile commerce experience was crucial. We no longer think about desktop
vs. mobile. We think about personalization and a responsive design that looks
good on any screen. Mobile is now more
than half of our traffic, going even higher
around big events such as the Super Bowl
and March Madness."
Dick's Sporting Goods' Mosner says
retail websites must mirror in-store assortments and brands.
"Offering a more locally relevant apparel [selection] to the customer is becoming increasingly more important,"
he adds. "Being able to speak specifically
to the avid fan using phrases or imagery
that speaks to a specific school or pro
team is critical today."
Eric Reinsfelder, senior director of Jarden Sports Licensing, St. Louis, says the
company is ramping up its direct-toconsumer business, which is key when
considering the increasing amount of
displaced fans around the country.
"The significance of the instant
availability and accessibility of product through websites was never more
apparent than soon after the final out of
this year's World Series," he says. "Within
minutes of San Francisco's Pablo Sandoval catching the final out of the game, Fox
Sports was promoting the availability of
World Series championship merchandise
through MLB.com."
"Money is being left on the table if
retailers don't engage in e-commerce,"
Godek says. "A commercial website for
a retailer is a necessity. It's no longer a
service to customers. It's a necessary tool
to do business."
Mike May is a Wellington, Fla.-based
freelance sports writer, veteran high school
soccer official and high school basketball
coach, and experienced sporting goods
industry publicist. For more information
or to comment on this article, email Mike
at mmaymarketing@gmail.com.
SportsFan Retailer

Impressions - Sports Fan Retailer - December 2014

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