Sports Industry
Sports Industry
Sports Industry
on
SPORTS INDUSTRY
Synopsis submitted in partial fulfillment of requirements for
Bachelors of Business Administration
Logistics and supply chain management
Mentors Name-
SAP ID-500035773
Enrolment Number:R380214033
+
DECLARATION
I declare that the work embodied in this dissertation, entitled EFFECT OF SUPPLY
INTEGRATION AT E- COMMERCE , is the outcome of my own work conducted
under the supervision of Prof. Sujith P. Surendran, at College of Legal Studies, University
of Petroleum and Energy Studies, Dehradun.
I declare that the dissertation comprises only of my original work and due
acknowledgement has been made in the text to all other material used.
Date
ACKNOWLEDGEMENT
The research has been collected largely from secondary sources of information and the
method that has been adopted is doctrinal in nature for the collection of information such
as international treaties, websites, books, commentaries, journals and articles etc.
I would like to thank my mentor Prof. Sujith P. Surendran for his guidance and support
and would even like to thank my friends for their suggestions.
PREFACE
India is the oldest in Punjab situated at a distance of about 84 kms
southeast of Amritsar on the G.T. road going at Calcutta. India is Indias
foremost producer of sports goods. India is the sports of India as it has not
only finest sport industry but also a large number of sportsmen. Infact 12 of
Indias greatest hockey players have come from a single village, Sansarpur,
In India . India has a very alive atmosphere, something that is typical to the
whole of Punjab.
India ranks second in India in the rate of urbanization and has the highest
density of population at 598 persons per square km, as per the 1991 cencus.
The reason far this is growing industrialisation. Industrial Production of
sports goods began on a small scale during the late forties. Over the years,
the sports goods industry has grown at an impressive are and of late Indian
sports goods are also exported to different countries.
Rough estimate suggest that today India has more than 100 major industries
and about and abut 20,000 small scale industries with a most conservative
estimate of an annual turnover of approximately Rs 450 crores. The India
Sports goods industry manufactures 318 items. The India Sports Industry is
highly labour intensive industry and provide employment to the weaker
sections of society.
.
Table of Contents
Incorporated in 1925, Hans Raj Mahajan & Sons, is one of Indias Premier
Sporting Companies. Company has secured a prominent position as a
reputed manufacturer and exporter of sporting goods, accessories, bags and
promotional products.
The experience of more than seventy five years has taught the significance
of providing value for money. The main emphasis of company is always be
on customer satisfaction. The sporting goods of company confirm to the
highest international standards.
The products in which the company deals are Cricket Balls, Clothing,
protective equipment & accessories, Football, Soccer ball, Aussie ball,
Fustal Sala ball, Netball, Basketball, Volleyball, Handball, American
Football, Rugby Ball, Promotional Balls, Hockey Sticks, Hockey Balls,
Boxing Gloves, Boxing Guards et
UNIVERSAL SPORTS INDUSTRIES
Throughout these years with our genuine concern for quality and prompt
delivery the Company have been able to develop markets for our products
throughout the world and have been able to increase its exports. The
company has won various Export Excellent Awards from State and National
Governments. The Company at present is 'successfully exporting to
Australia, New Zealand, U.S.A., U.K., Italy, Germany and Canada. The
company has achieved annual Export turnover of Rs. 55 million during the
last Financial year and the Target for the current financial year is Rs. 80
million. The company anticipates achieving its target by exploring new
European and American markets.
F.C. SONDHI, INDIA
In the year 194.4, Mr. F.C.Sondhi, a great philanthropist and self made
Business-man, started a company in England by the name F.C. SONDHI &
COMPANY LIMITED. At that time it was dealing only in Toys.
In 1950, Mr. Sondhi journeyed to India and set up a branch of his company
in India to export Hockey sticks, Cricket balls, Footballs etc. The company
continued to export goods to F.C. Sondhi & Company Limited in England
up to the year 1967 and to other Sports Goods Importers in England.
In 1967, FCS started the manufacture of cricket batting gloves and cricket
legguards for one of the famous English companies. Today, the FCS family
consists of over 300 loyal and dedicated staff and workers. The total area of
land is 20 acres and provides ample room for expansion in years to come.
FCS is basically an Export Company with over 98% of its production being
exported every year. The Annual Export is presently growing at the rate of
approximately 33% per annum in quantity terms.
The major markets to which FCS is exporting are the United Kingdom,
Australia, New Zealand and West Indies. However, FCS is exporting
Hockey sticks and equipment particularly, to many other countries and
concentration on those markets is on the increase.
The company deals in Hockey Sticks, Cricket Bats, Cricket Balls, Footballs,
Cricket Legguards, Cricket Gloves & Specialists Gloves.
India Sports Goods Industry
Supplier to the World
Strategies:-
After 1947 till early 1960s, Indian company paid attention to International
Trade of they could pick up some extra sales through export. This was
though enough , but the home market was considered much safer. Today the
situation was much safer. Today the situation is much different. The home
market is no longer rich in opportunities for Indian Business man. Various
foreign firms are aggressively entering in the other countries with their
products and these firms have also entered Indian market offering high
quality products. Export markets have become much attractive in view of
de-valuation announced by the Indian governments on 4th July 1991. The
fact is that India has been loosing its overall position in International Trade.
It is running large trade deficient. Every country in the world is trying to get
its business internationalized or at least to start with exports. Many countries
subsidized their companies by granting preferential land and energy cost and
the even supply out right cash so that they can charge lower price than their
competitors. Export marketing is of great importance to Indian business. It is
the duty of exporters to support the economic development of our company.
One should try to sell the portion of their products abroad. The potential
exporters must learn how to make start and how to make export customers.
He must also understand the terms used in the international trade.
Deciding on the Export Marketing Mix
Finally, the exports must determine how it is going to serve the international
market i.e. what methods or systems should be used to get needed into the
hands of consumer in the foreign countries. The basic marketing export
marketing mix decision will include planning & strategy, channel of
distributions & price. Competitors that operate in one or more foreign
markets must decide how much to adopt their marketing mix to local
competition. At one extreme are compares that use standardized marketing
mix worldwide. Standardization of the partys advertising distribution
channels and other elements of the marketing mix promises the lowest cost.
No major changes have been introduced. At the other extreme is the idea of
customer marketing mix where producer adjusts the marketing mix elements
to each target market and more cost but hoping for larger market and return .
For the purpose of analysis of data, the information has been collected from
the primary as well as secondary basis. In the primary sources a
questionnaire has been used coupled with the personal interview of the
exporters and the secondary sources of data has been collected by the way
of the information from various reports and journals.
Statement 3:- Find various categories of sports goods that are being
exported & also their direction.
The 3rd question is what are the various items that are being exported from
India. From all the information and the data collected it is clear that one
exporter of the sports goods is not exporting one category of sports goods.
Table No.1
Table Showing categories of sports goods to be exported:-
Categories %age
Wood based 29.10
Leather based 26.80
Metal based 09.00
Rubber based 03.80
Plastic based 00.70
Fiber based 03.80
Textile based 04.50
From the given chart it is clear that what are the various sports goods which
are being exported by these exporters of the sports goods industry of India.
One exporter indulge in more than one product. For example One exporter is
exporting wooden based products like cricket bats, hockey sticks or table
tennis , Bat sets and the same exporter exports leather based products like
boxing gloves, leather balls, leather footballs etc and also the same exporter
exports rubber based items like all types of inflatable balls. So from
information collected we come to know that out of 100% of the exporters,
there are 29% of the exporters who exports wooden based products. These
wooden based products include cricket bats, hockey sticks, table tennis balls,
caram boards etc.
S.No. Modes %
1. Direct Export 38
2. 0
Contract Manufacturing
3. Licencing 0
4. Foreign Manufacturing 0
5. Piggy Back 0
6. Selling to Visiting Agent 12
7. Joint Ventures 0
8. Selling through export house 16
9. Selling through trading company 34
40 %
35
30
25
20
15
10
5
0
Piggy Back
through
Direct Export
Visiting Agent
through export
Manufacturing
Licencing
Joint Ventures
Manufacturing
Letting
Selling to
Contract
Foreign
Selling
1 2 3 4 5 6 7 8 9
Interpretation:-
As far as the modes of entry of the exporters to the foreign market. There are
many ways through which an exporter can enter to the foreign market like
direct exports, foreign manufacturing, contract manufacturing, licensing,
Peggy back, selling to visiting agent, Joint Ventures, Letting through export
house, letting through trading company etc. entering into the foreign market
is one of the completed lash which requires a lot of finance we well as
complex documentation procedure. For the study of export market of sports
goods, the exporter mainly followed three ways to enter into the foreign
market. Here are direct export through export house & through trading
companies. Here are few exporters who followed the mode of letting to
visiting agent.
From the data collected through the survey of the market there are
38% of export who entered the foreign market through direct export only.
Few follow other means of export also to sell it in the foreign market etc
through export house as well as through trading company, selling through
visiting agents. There are 34.6% of the exports entered onto the foreign
market by selling to the visiting agents. The above information showed that
exporters who sell through direct export, they followed the other means of
export also, not a singled way of exporting because the that various
countries have different types of rules and regulations, different export-
import policies. So the exporter have to follow the norms of the country to
whom they are exporting. That is why the exporter follow different modes of
exporting goods to different countries.
Statement 5:- To know what are promotional strategies followed by
exporters.
52%
Promoting the products
Not promoting the products 48%
Graph No.3
Promoting the
products
Not promoting
the products
Interpretation:-
The major marketing strategy which is the important part of any kind of
business is promoting of the products. Promotion is the major and most
important part of marketing strategies because it makes the product aware in
the market by means of advertising, sales promotion, personal selling etc. In
case of international trade, promotion mix is very much differentiated from
what we use in local or domestic market, because in the International trade
products is to be promoted in the international market and the market of one
country is very much different from other countries Because of cultural
differentiation demographic structure, income pattern etc.
The data collected of exporters of sports goods industry of India: The export
houses are small & financially weak. so they are unable to promote their
products in the foreign market because of the reasons that promoting of the
products Internationally requires a large amount of financial resources. The
other reasons is that the exporters do not export the sports goods on the
brand name of their own. They sell their products on the buyers brand name
& specifications. Advertising through internet is the latest concept in the
promotion of the products world wide. There are few exporters who have
their own websites.
Graph No.4
40
34.2
35 32.4
30 26.2
25
20
15
10 7.2
5
0 0 0
0
Competitive
Perceived
Marginal
Mark-up
Return
Target
Pricing
Goeng
Policy
Pricing
Value
Pricing
Value
Pricing
1 2 3 4 5 6 7
Interpretation:-
Next strategy is pricing that what kind of pricing policy is followed by the
exporter. The pricing policy internationally followed includes competition
pricing, perceived value pricing, mark-up pricing, going rate pricing, target
pricing and others. The pricing based on the deals , orders & agreements
made between exporter & buyer is the major form of pricing policy
followed by exporters. It is the competition prevailing in the pricing policy,
where the product sold internationally, the exporter have to fix up price
based on the size of order, quality of the product & agreement between
exporter and importer.
Buy
Graph No.5
S.No. Modes %
1. Foreign retailers 52.40
2. 46.40
Tracking
3. Foreign Distributors 1.20
4. Users 0.00
5. Others 0.00
Graph No.6
Foreign
retailers
1.20 Tracking
46.4 Foreign
Dis tributo
52.4rs
Users
Others
Interpretation:-
Foreign dealers
Trading Company
Foreign distribution
End Users
Export Agent
Export Management Company
Buying Agencies
Export Broker
Trading Company
Most of the exporters of sports goods industry followed both direct as well
as indirect channel. In the direct channels 98% of the exporters also followed
indirect channel of distribution.
Procuring Raw
Material 0
Unfavourable
Govt. Policies
Distribution 3.6
Problem
Competition to 18.8
Foreign High 23.9
Quality Products
Others
Interpretation:-
Problems faced by the exporters:- The next part of the data analysis &
interpretation of the study in its major problem faced by the exporters of the
sports goods. So as per as the problem of the exporters of the sports goods.
They face many problems like financial constraints , infrastructural
development, quality, , raw material etc, but the major problem faced by the
exporters are:-
a) Procurement of raw material.
b) Documentation problem.
c) Unfavorable Govt Policies.
d) Distribution problem.
e) Competition to high quality foreign products.
These problems are mainly faced by the exporters of the sports goods. All
the exporters of the sports goods industry are independent. The exporter of
the wooden based items faced the big problem in procuring crane wood.
Because they buy the wod from the State of Jammu & Kashmir & from
Himachal Pradesh. Both states have their limit of selling wood to the other
states so its not easy for the manufactures & exporters of sports goods to
procure the raw wood from these states.
For the leather goods exporters again there is problem of procuring
the new leather. They purchase most of the leather from the Uttar Pradesh &
there are mainly the problem of transportation, documentation, corruption
etc. also the quality of leather is the main contribution while purchasing the
raw material. Out of the total respondent there are 28.8% of the exporters
agree that they face problems in procuring raw material.
Same is the case with other types of raw material by the exporters.
They face problems in procurement of the other raw materials also. The
second problem is the documentation problem which is a big problem. Every
exporter have their professional expertise who are efficient in handling the
documentation procedure of the exporters. They know the overall
documentation procedure of exporting sports goods. So maximum of the
exporters do not face much problems in export documentation. The
percentage of the exporters who face documentation problem is 3.6% only.
The documentation problem mainly arises to the countries like France, Italy,
Germany, Spain etc as the different languages used in these countries.
The next problem is the unfavorable Govt. policies. Most of the
exporters are not satisfied with Govt. policies towards the export industry of
its sports goods of India. Like the sports industry is not subsidized by the
Govt. nor Govt is providing any kind of tax rebate. The policy of the Govt.
not much favourable to these exporters of the sports goods. Thus the overall
23.9% of the exporters are dissatisfied with Govt. Policies towards sports
industry. Thereafter the major problem of exporters is the distribution of the
products in the foreign market which is faced by the exporters of the sports
goods industry. This problem arise due to various reasons, First is financial
constraints. Because the exporters do not have high financial resources with
them to establish their own distribution network in the foreign market.
Secondly is the lack of knowledge of the foreign market, of this reason the
exporters unable to set-up their own business in the foreign market. There
are 35.2% of the exporters who face the problems of distribution of the
products in the foreign market. There are many other reasons also regarding
the problems of distribution of the sports goods.
The last problem faced by the exporters is the High Competition with
the high quality sports goods of the other countries like Indian exporters
faced extent competition with Chinese goods. The Chinese products is of
very high quality and labour in china is also very cheap which leads to low
cost of production that ultimately lead to low price of products in the
international market. As a result Indian exporters find themselves hard to
stand in front of them.
Statement 9: Know the threats and opportunities for exporters of sports
goods industry.
The next part of the study is related with threats & opportunities procedures
to the sports goods industry. The major threat for sports industry is the
competition that the exporters facing with high quality sports by the other
countries the is India hers opened for other foreign manufacturers and
its exporters. Not only reserve the foreign market but also sell their in Indian
market. The major threat to Indian Industry is from Chinese products.
The opportunity available for the Indian exporters is that new doors are
opened for the Indian to enter new market of the world. Now, Indians
exporters can easily enter into foreign market because of WTO Agreement
between various countries.
Here comes the role of Govt. in boosting the export industry of India. The
Govt. providing much help to exporters but until there are some of the
contributions which is made by the Govt. to boost the export of sports goods
from India to other countries. Govt. is providing duty draw back to the
exporters and also Govt. of India & Ministry of Commerce has established
sports goods export promotion council of India. Its sole purpose to increase
the export of sports goods from India.
CONCLUSION
SUGGESTIONS
Recommendations:
In the study of project export marketing strategies followed by the sports goods
industry , there are many start comings which prevail in sports goods industry for
which following are the suggestions given :
1. Govt. role in exporting sports goods is satisfactory. So gout should need to help
more to exporters by providing financial help to them in form of credit or in
form of subsidies.
2. Exporters faced a lot of problems in procuring row materials from other states
like procuring wood from other states. Therefore, state Govt. should make
policies that reduces the problem in procuring raw material for manufacturer of
sports goods.
3. Indian sports goods are facing competition with high quality sports goods
by the foreign manufacturer . So , Indian sports goods manufacturer
should give more emphasis to manufacture high quality products. So that
they can complete in the International market.
O E OE (O E )2 (O E )2/E O-E-0.5 (O E (O E
0 . 5)2 0 . 5)2 / E
9 12.09 -3.09 9.55 0.79
6 9.3 -3.3 10.89 1.77
8 4.34 3.66 13.39 3.09
0 2.17 -2.17 4.71 -2.67 7.13 3.29
8 3.1 4.9 24.01 7.75
10 10.9 -0.92 0.85 0.07
10 8.4 1.6 2.56 0.3
6 3.92 2.08 4.33 1.1
0 1.96 -1.96 3.84 -2.46 6.05 3.09
2 2.8 -0.8 0.64 -1.3 1.69 0.6
12 8.19 3.81 14.52 1.77
2 6.3 -4.3 18.49 -4.8 23.04 3.65
0 2.94 -2.94 8.64 -3.44 11.83 4.02
7 1.47 5.53 30.58 20.8
0 2-1 -2.1 4.41 -2.6 6.76 3.22
6 6.63 -0.63 0.39 0.06
11 5.1 5.9 34.81 6.83
0 2.38 -2.38 5.66 -2.88 8.29 3.48
0 1.19 -1.19 1.42 -1.69 2.86 2.4
0 1.7 -1.7 2.89 -2.2 4.84 2.85
2 1.17 0.83 0.69 0.33 0.11 0.09
1 0.9 0.1 0.01 -0.44 0.16 0.18
0 0.42 -0.42 0.18 -0.92 0.85 2.02
0 0.21 -0.21 0.04 -0.71 0.5 2.38
0 0.3 -0.3 0.09 -0.8 0.64 2.13
Total 43.73 33.4
= 43 . 73 + 33 . 4 = 77 . 13
Table value at 5% level is less than above calculated Chi Square Value . This
proves that there exists a significant relationship between two elements.
Null hypothesis hence rejected.
Questionnaire
1). Type of Export House (Please tick)
a) Export Trading House ____
b) Independent Manufacturer ____
2.) What are the various categories of sports goods that you are exporting.
Q3. What are the major countries to whom you are exporting the sports
goods? Please mention.
a) d)
b) e)
c) f)
Q4. What are the different modes of entry you follow to enter the foreign
market?
a) Direct exporting ( )
b) Licensing ( )
c) Letting through export house ( )
d) Letting through trading Company ( )
e) Contract Manufacturing ( )
f) Setting through Visiting agents ( )
h) Through interact like ( )
Yes ( ) No ( )
Q6. Is yes, then, what are the various promotional tools that you are
Following?
a) Competitive pricing ( )
b) Growing rate policy ( )
c) Mark Pricing ( )
d) Perceived value pricing ( )
e) Target return policy ( )
f) Others ( )
Q8. What are the different channels of distribution that you are
following:-
Direct Indirect
Foreign Retailer ( ) Export Agent ( )
Trading Company ( ) Export Mgt. & Co. ( )
Foreign Distribution ( ) Buying Agent ( )
Others ( ) Export broker ( )
Others ( )
Q9. What are the major problems faced by you in exporting sports goods?
Q10. What are the various threats and opportunities prevailing in the sports
goods industry?
________________________________________________________
Q11. How Govt. help to boost the export of sports goods from India?
________________________________________________________
________________________________________________________
________________________________________________________
Foreign Trade Policy 2004-2009
Highlights of the Annual Supplement
Export Promotion Capital Goods Scheme
1. To promote capa expansion and quality up gradation in the SSI sector,
import of capital goods at 5% Customs duty shall now be allowed subject
to the fulfillment of an export obligation equivalent to 6 times the duty
save on capital goods imported under the EPCG Scheme over a period of
8 years. (At present the export obligation under the EPCG Scheme is 8
times the duty saved and reducing the export obligation for small
manufacturing units to 6 times shall provide an impetus to industries to
modernize their plant and machinery which will enhance our overall
export competitiveness in the medium term)
2. With a view to accelerate exports under the Scheme and to incentivise
fast track companies, firms making 75% or more of the exports under the
EPCG Scheme (including average level of exports) in half or less than
half the original export obligation period , shall be freed from the balance
export obligation.
3. The present requirement of submitting an Installation Certificate for
machinery imported under EPCG Scheme will now not be required for
units which are not registered with Central Excise. In lieu of a Central
Excise Certificate, a Chartered Engineer Certificate will now suffice.
Firms importing spares under EPCG shall also be required to submit a
chartered Engineer certificate only instead of a certificate from Central
Excise authorities.
4. The facility of clubbing of EPCG licenses has been further liberalized
and restrictive conditions relating to same licensing year and same
products / services have been deleted. Henceforth, all EPCG licenses
issued under the same Customs Notification can be clubbed. This will
considerable reduce paperwork both for the exporter and the licensing
authorities and lead to easier monitoring.
5. Reducing congestion at the Major ports. The facility for export obligation
discharge in rupee payment under the EPCG scheme has been extended
to the minor ports, ICDs and CFS also.
1. The scope of Advance Licence for Annual requirement has been extended
to all categories of exporters having past export performance. Earlier, the
option was limited to Status Holders only. The earlier limit of obtaining
advance Licence for Annual requirement has also been enhanced to 300%
of FOB/FOR value of exports made in the pervious year from 200% .
2. Transfer on Duty Free material imported or procured under Advance
Licence from one unit of the company to another unit of the same
company to be allowed with prior intimation to the jurisdictional central
excise authority. Earlier prior permission of the jurisdictional central
excise authority was required .
Company Brand
1. Stag International, Meerut STAG
2. Bhalla Interantional ,Meerut VINEX
3. Ekay (India) Rubber Co. Pvt. Ltd., Delhi ENKAY
BIBLOGRAPHY