--By Ural Singh Mishra
With an increasingly health conscious population many major brands, known for their innovative sportswear ideas have begun to grace the Nepali market. Key international players such as Adidas, Nike, Puma and Reebok have opened up shop in Nepal, and with people becoming increasingly brand conscious, there is no doubt that the importance of the ability to provide quality products will be ever increasing. In Nepal, adventure sports are a colossal pull factor for tourists, so there are many companies which specialize in adventure sports, namely Sherpa Adventure Gear and Everest Hardware. Quality of sports clothing cannot be understated, poorly manufactured clothing can lead to a series of health problems, from cramps and strains, to skin irritation and allergies.
As of late, sportswear has been gaining prominence outside the world of sports, you can see the occasional person wearing a football jersey or IPL cricket shirt, and it is now evident that sportswear has made a gradual transition from sport to fashion, you can see all sorts of people wearing sports clothing daily, whether it be at work or at home. “People have become brand conscious in Nepal. As the brand gives something new and relevant to the present situation people become more interested and begin to take an interest in that brand. It gives a boost to the consumer and satisfies the person and encourages the activity he is in” says Delip KC, the managing director of Nike in Nepal. In 2012, the global sportswear industry generated over USD 244 billion and it is expected that USD55 billion is to be added to this number by 2017. And this is no exception in Nepal, most international sports brands boast annual growth to be at least 5%, and Nike had their market share increase to 40%, making it the largest sportswear brand in Nepal.
With more focus being given to sports and recreation in our society, emphasis has been shifted to physical fitness, as the most popular sport in Nepal, football products generate the most attention when it comes to sportswear, closely followed by running, tennis and cricket. With major sporting events such as the FIFA World Cup Attsh, a clothing chain based in Kathmandu Valley which sells official replicas of football shirts claim that their revenues increase by as much as 50%. However, it isn’t all fun and games when it comes to running a sports store in Nepal, a poorly performing economy, fluctuating markets and political instability have all hindered production and supply for various goods in the country, and especially in Kathmandu Valley.
Another problem that many manufacturers are facing is that today’s youth have taken more of an interest in watching sports rather than taking an active role in the sports themselves. Many companies have come up with discount schemes or “buy two get one free” promotions, however the problem has only been alleviated slightly. A lack of decent sports grounds and air pollution are among the reasons as to why today’s youth haven’t been participating in sports activities as much as they would have in the past. Despite the obstacles faced by sportswear companies in Nepal Delip KC, manager of Reebok in Nepal optimistically stated that “I am very positive of the sportswear industry development as more and more people from all works of life are working towards a healthy and fit lifestyle”.
Despite the many hurdles that sports companies face in Nepal, business has been increasing for almost all companies, now due to a new sense of brand loyalty and consciousness. “Before, I used to buy all sorts of products, just because they were cheap, but now I only go for products which guarantee durability, comfort and most importantly, style” said one eager girl inside the Adidas store in Jawalakhel. With increasingly aggressive marketing techniques it is highly unlikely that the business of major market holders in Nepal is to slow down, that being said, Nepali sportswear firms should also step up in their efforts to gain prominence, nationally as well as internationally.
Consumers can feel one of two ways when it comes to branding, they either care or they don’t. Usually a greater majority of people are brand conscious and have certain needs when it comes to selecting a sports brand. Many people are influenced by the brands that their favourite athlete or sports team use. Others pick the brands they use according to what their friends and family use. And ultimately it is those, and a few smaller factors that dictate the “rules” which govern how we spend our money on different brands.
Did you know?
- Most sportswear companies do a lot of their advertising through endorsing well known athletes and sports teams and sometimes sponsor entire tournaments.
- The founders of Adidas and Puma were two German Brothers who had a falling out.
- A company called Blue Ribbon Sports was founded 1964 and renamed in 1978 after the Greek Goddess of victory, Nike.
- Adidas also bought out Reebok in 2005 to close the gap on sportswear leader Nike.
- Sherpa Adventure Gear has done a lot in the sector of social service with up to $.50 from every product sold going to a special fund for underprivileged Sherpa children.
- Puma quickly gained massive profits after Olympic champion Usain Bolt endorsed the company, showing advertising through athletes is an effective marketing tool.
