The online sporting and physical recreation goods sales industry has benefited from the changing landscape of retail shopping.
Online shopping has become entrenched in the mainstream psyche of consumers across the country.
According to IbisWorld industry analyst, Naren Sivasailam, this has primarily been driven by the rapid growth in internet and broadband penetration, combined with an acceptance of e-commerce as a safe and viable alternative to traditional bricks-and-mortar retailing.
The industry has benefitted from increased awareness of the link between obesity and lack of physical activity, which has made sports participation and exercise a priority for households and government alike.
Changing demographics and increased leisure time availability have also boded well for sales of camping and outdoor equipment.
In the five years leading up to 2012-13, industry revenue is estimated to increase by an annualised 10 per cent to total $765 million.
This includes a forecast 9.3 per cent growth in revenue over 2012-13.
The future prospects of the industry are expected to remain bright, as online shopping becomes commonplace across the country.
The intended completion of the National Broadband Network will see more regional areas connect to the internet at faster and more secure speeds than ever before, thereby increasing the industry’s potential consumer base substantially.
“The growth of online retailing onto smartphones and tablets will further provide opportunities for operators to enhance their products and services and reach a wider, technologically savvy audience,” says Sivasailam.
The ageing of the Australian population will also bode well for the industry; increasing average leisure time and computer literacy will see older Australians shopping online more safely and comfortably than before.
While consumer spending and confidence has been falling over the past two years, this trend should reverse as global economic conditions stabilise and unemployment fears are alleviated.
This will further bode well for industry players as demand for big-ticket items such as premium exercise, sporting and camping equipment is also expected to bounce back.
In the five years leading up to 2017-18, industry revenue is forecast to increase. The online sporting and physical recreation goods sales industry is characterised by a moderate level of market share concentration.
There is only one major player in the industry: Super Retail Group. This group has high market share due to its presence in nearly all areas of the industry despite its large range of products.
Super Retail Group owns Australia’s largest sporting goods retailer, Rebel Sport, as well as Ray’s Outdoors, BCF, Amart Allsports and Goldcross Cycles.
Ray’s Outdoors is one of the largest providers of camping equipment, while BCF is one of Australia’s largest boating and fishing stores.
For more information, visit IBISWorld’s Online Sporting and Physical Recreation Goods Sales report in Australia industry page.
