As JD Sports prepares to launch 169 products into Australia, Euromonitor International senior analyst Bettina Kurnik gives her take on the move.
The Australian sportswear market is ready for a new entrant, and local consumers will certainly welcome more intensified competition within the category.
However it remains to be seen that JD Sports will offer enough in terms of range differentiation to compete with the long-term market leader, Rebel Sport.
It depends largely on the brands on offer, as loyalty to local brands is strong in Australia.
This is particularly apparent within athleisure, and Australia is generally considered a frontrunner in the development of the category.
Brands such as Lorna Jane, 2XU and The Upside position themselves as active lifestyle brands, rather than just activewear companies, and have seen a successful uptake as a result.
JD Sports Fashion Plc held a 19% value share of the sports goods stores market in the United Kingdom in 2016, second-placed behind Sports Direct International Plc at 27%.
Sports-inspired apparel represents almost 40% of the market for sportswear in Australia, and the category is experiencing the strongest growth over the past five years, at an average annual rate of 5%.
With competition within sportswear coming from discount department stores, apparel specialist retailers and online, there is a major market opportunity for sports goods stores that combine both apparel and equipment in Australia.
Particularly those with a strong private label offering.
However, it’s not a given, particularly if the company’s primary markets are international and it doesn’t specifically cater its range for an Australian audience in terms of seasonality and sporting preferences.”