Sports sector

An Expert's View about Sports Goods in Mexico

Posted on: 31 Dec 2011

Consumer spending in apparel and sports activities in Mexico is a US$4.18 billion market that employs more than 200,000 people.

Sports sector in Mexico Consumer spending in apparel and sports activities in Mexico is a US$4.18 billion market that employs more than 200,000 people and has grown annually on average 3.5% from 2003 to 2010. This sector accounts for 0.9% of the total retail value of the country and distinguishes itself by a strong sporting apparel segment, that is worth more than $350 million USD and whose 3.21% annual growth is stronger than any other in Latin America. Market overview Major sports in Mexico, based on participation of the population, are football, basketball, volleyball, tennis and martial arts; but motor sports, snooker, and golf are also played. Mexico represents the largest market in Latin America and one of the five best performing markets in the world for the NBA, reported Luis Morales, director of the NBA in Mexico. Professional football in Mexico is a US$350 million industry in terms of federation and team revenues, $US165 million earnings from television and commercial rights. This thriving business is in the top ten richest football federations of the world. In the case of infrastructure there are opportunities for investment, since of the 60 stadiums for professional football, only 8 hold more than 40,000 people, and those 8 are more than 40 years old. This requires a tangible need for infrastructure improvement, highlighted by Mexican plans to hold international sports events in the near future. Besides sporting apparel and football, the strongest market segments are golf, racquet sports and exercise equipment. The golf/tennis market grows annually on average 7% and is limited mainly to the affluent, but it offers interesting niche markets for high-end foreign-made equipment. The popularity of both sports is driven partly by extensive television coverage. The popularity and status of tennis has created spin-off demands for racquetball and squash. They not only cost less, but are played indoors, away from air pollution. 95% of the equipment of these sports is imported according to national data, with a consumer on average spending more than US$500 on specialized equipment, while in general the imports of sports and recreational products are worth US$170 million. The market for exercise equipment is more broadly based. Private gymnasiums, which traditionally focused on weight lifting for men, are now broadening their coverage to aerobic fitness for young professionals and their families. While another niche area of high revenue is off-road motorsports, concentrated in the desert areas of the Baja California peninsula. This sport is of high value because participants will spend at least $7,000 USD in order to modify their VW or Baja Bugs for use in off road terrain. Currently there is a big demand for parts and services as most parts have to be imported as they can be hard to get in Mexico. Key opportunities Improvements in the sector are based on supply of equipment and recreational products, and infrastructure: • There are around 220 golf courses and it is expected that at least 10 more will be built during 2011. 60% of them are part of real estate developments and 40% of them are part of tourist developments according to the FMG (Mexican Golf Federation). • Football stadium infrastructure. • Sporting apparel is the largest market segment of sports in Mexico and represents various opportunities for british companies. • High end foreign made equipment for golf, tennis and racquetball. • Off road motorsport is significant to Mexico, participants will spend at least $7,000 USD in order to modify their VW or Baja Bugs for use in off road terrain. Currently there is a big demend for parts and services as most parts have to be imported as they can be hard to get in Mexico. • For equipment, the sectors with the biggest growth would be: multifunction equipment, digital cameras, handhelds, and telecomm equipment (voice and data). Latest export opportunities in Leisure & Tourism Latest export opportunities -Mexico Getting into the market We encourage British companies to approach well in advance the local authorities that are in charge of projects, since very frequently the time between the launch of a tender and the required proposal submission date is extremely short. In addition, if you are already in contact with the local authorities you may be able to gain an insight as to what they are looking for before the tender is advertised. It is important to build relationships in the market, so that key local players and decision makers will be aware of your expertise and keep you in mind when forming bidding consortia. In many instances, UK companies choose to partner with local counterparts, benefiting from their business know-how. More about doing business inMexico Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. Luis Calette Trade & Investment Officer British Trade Office Blvd. Sanchez Taboada 10488-923 Zona Rio C.P.22010 Tijuana, Baja California Mexico T. +52 (664) 615 8046 Email: tijuana@ukconsulate.org Ana Gallardo Trade & Investment Research Officer British Trade Office Blvd. Sanchez Taboada 10488-923 Zona Rio C.P.22010 Tijuana, Baja California Mexico T. +52 (664) 615 8046 Email: agallardo@ukconsulate.org Contact your local international trade team Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. ExpoGolf 2011 June 10-12 http://www.expogolf2011.com/ Latest events Mexico Latest events –Leisure & Tourism Useful links More about OMIS and other UKTI services for exporters
Posted: 31 December 2011

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