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                >>  PRODUCTS                                        PRODUCT AND SERVICE SEGMENTATION 2019

                     SEGMENTATION                                                     8.2

               ATHLETIC APPARELS                                        10.8%        Other
                                                                    Athletic footwear
               In 2019, athletic apparel is anticipated to generate 19.5% of industry            43.2%
               revenue. This product segment includes sweatshirts, pants, shorts,   18.3%         Sporting
                                                                    Firearms and
               and T-shirts that are made specifi cally for men, women, and children   hunting equipment  equipments
               for various sports, such as tennis, basketball, running, and golf.
               Fans of professional or collegiate sports can also purchase apparel   19.5%
               in their favorite team’s colors. Some retailers have agreements   Athletic apparel  Total $52.0bn
               with sports organizations, such as the NFL or NBA, to sell licensed
               team merchandise. Over the past fi ve years, the increase in sports participation by females prompted growth for this product segment.
               Additionally, pop culture trends have prompted growth for this product segment as athleisure or active wear for day-to-day use has become
               a staple of everyday fashion. More and more people are wearing athletic clothing to not only workout but also wear around the house,
               running errands or as a part of an everyday outfi t.


               ATHLETIC FOOTWEAR
               Athletic footwear is expected to make up 10.8% of revenue in 2019. Over the past fi ve years, this product segment has held steady as a
               portion of overall revenue. This product segment includes men’s, women’s and children’s footwear as well as specifi ed footwear for diff erent
               sports or activities, such as tennis or hiking. Over the past fi ve years, the popularity of running shoes that imitate being barefoot, such as
               Vibram’s FiveFingers running shoe, though their popularity has regressed throughout the period. In addition to changes in the technology
               of the running shoe, general fi tness sneakers have also demanded the latest performance technology. Over the past fi ve years, many brands
               have taken advantage of the CrossFit and HITT style workout surge by creating specifi c sneakers for those types of athletes.


               BACKPACKS
               Industry operators produce backpacks used for carrying small items to and from various locations. Many consumers use backpacks to carry
               books for school or on short-distance trips. Over the fi ve years to 2019, backpacks have increasingly been marketed with the ability to be
               customized, even enabling users to pick and choose certain designs to be placed on the pack. Additionally, players are off ering pockets and
               sleeves for products that are popular with young consumers, including Apple iPhones and iPods as well as laptop computers.




               >> MARKET SIZE

               According to IBISWorld over the fi ve years to 2024, an increase in the sports participation rate is expected to spur demand for the
               Sports apparel and accessories industry. The sports participation rate is anticipated to grow an annualized 1.4% over the fi ve years to
               2024, causing more individuals to require athletic apparel, equipment, and footwear for their sporting activities. Furthermore, rising
               consumer spending and per capita disposable income, coupled with more health-conscious individuals, will likely stimulate industry
               revenue growth, as more consumers require sporting goods for their health and fi tness regimens. Industry revenue is forecast to grow at
               an annualized rate of 1.1% to $54. 9 billion over the fi ve years to 2024. Moreover, profi t is expected to remain fairly steady as a portion of
               revenue over the next fi ve years.











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