Company LOGO Market Analysis A 2 Business Studies

Aims and Objectives Aim: • Understand how to analyse market data. Objectives: • Explain market trends. • Analyse market conditions. • Evaluate reasons for market structures changing.

Market Analysis of Sportswear Market - NIKE MARKET GROWTH • What new product developments have there been in the sports clothing or footwear markets over the past 5 years? • Growth in R&D and new product developments over the past few years spurred market growth. • Such developments have included, the Reebok Easy. Tone Trainers, which competitors have imitated with different versions. • Growth in sports underwear, with developments such as Nike Pro.

Market Analysis of Nike Distribution • Distribution – where products are sold. • Where does NIKE distribute its’ products? • Nike products sold in own brand shops, such as Nike Town and outlets. • Also stocked in sports retailers such as Sports Direct. • Positive? • Negative?

Market Analysis • Task: Analyse each of the following pieces of information with regard to the sportswear market and NIKE.

Market Analysis of Sportswear Market • Nike is the most dominant firm. Mizuno 7% Other 7% • Reebok and Adidas a close second. Nike 24% Asics 8% • Nike revenue £ 11. 8 bn (2009) • Adidas/Reebok revenue $6. 5 bn (2009) Puma 9% Reebok/Adidas 23% Umbro 10% Fila 12% • Nike generates 53% of revenue internationally and 34% in the US.

Market Analysis of Nike Competition Revenue 2005 -2009 25 20 Nike 15 $bn Adidas/ Reebok 10 5 0 2005 2006 2007 2008 2009

Market Analysis of Nike Competition Revenue $bn 5 4. 5 Revnue $bn 4 Fila 3. 5 3 Umbro 2. 5 Puma 2 1. 5 1 0. 5 0 2005 2006 2007 2008 2009

Luxury Fashion Market Analysis • Look at the following pieces of Market Analysis information, and draw points and conclusions from what is occurring in the market. Provide reasons for any trends you notice. E. g. Why has market share fallen for a firm who has opened more outlets between 20002010.

Market Share 2000 Burberry 14% Other 37% Gucci Group 26% Aquascutum Marc Jacobs 3% 2% Louis Vutton 18%

Market Share 2010 31% Other 6% Marc Jacobs 7% Aquascutum 18% Burberry 21% Gucci Group 17% Louis Vuitton

Sales Revenue Sales (£bn) High End Fashion Market 20052009 7 6 5 4 Sales (£bn) 3 2 1 0 2005 2006 2007 2008 2009

Distribution Figures Firm No. of UK Outlets 2000 Firm No. of UK outlets 2010 Burberry 4 Burberry 16 Gucci Group 9 Gucci Group 20 Louis Vuitton 5 Louis Vuitton 7 Aquascutum 11 Aquascutum 22 Marc Jacobs 3 Marc Jacobs 9

Plenary • Group Feedback • Market Analysis • Luxury Fashion Markets